Fulgent Genetics Reports 15% Revenue Growth in Q2 2025, Operating Loss Increases

Fulgent Genetics, Inc. reported a notable increase in financial performance for the second quarter of 2025, with revenues reaching $81.8 million, a 15% rise from $71.0 million in the same period of 2024. For the first half of 2025, total revenue was $155.3 million, also reflecting a 15% increase compared to $135.5 million in the prior year. The growth was primarily driven by increases in precision diagnostics, anatomic pathology, and BioPharma services, which collectively offset a decline in COVID-19 testing revenue. Gross profit for the second quarter was $34.4 million, up 30% year-over-year, while gross margins improved from 37% to 42%.

Despite the revenue growth, Fulgent reported an operating loss of $19.7 million for the second quarter, slightly higher than the $18.9 million loss in the same quarter of 2024. The increase in operating expenses, which rose 19% to $54.1 million, was attributed to higher costs in research and development, selling and marketing, and general and administrative expenses. The company’s net loss attributable to Fulgent was $19.0 million, compared to $8.7 million in the previous year, reflecting a significant increase in losses driven by the impairment of an investment totaling $9.9 million.

Operationally, Fulgent's customer base remains concentrated, with one customer accounting for 22% of total revenue in the second quarter. The company is actively working to diversify its customer base to mitigate revenue concentration risks. Additionally, Fulgent's cash and cash equivalents increased to $87.9 million as of June 30, 2025, up from $55.1 million at the end of 2024, bolstered by cash provided from investing activities, particularly from the maturities of marketable securities.

In a strategic move, Fulgent completed the acquisition of ANP Technologies, Inc. in July 2025, which is expected to enhance its therapeutic development capabilities. This acquisition aligns with Fulgent's goal of transitioning from a genomic diagnostics company to a fully integrated precision medicine firm. The company continues to invest in its laboratory services and therapeutic development segments, with plans to expand its offerings and improve operational efficiencies.

Looking ahead, Fulgent anticipates continued revenue growth driven by its core laboratory services, although it expects to incur higher operating expenses as it progresses with clinical trials for its therapeutic candidates. The company remains focused on optimizing its cost structure and expanding its market presence, while also navigating the complexities of billing and reimbursement in the healthcare sector.