Fulgent Genetics (FLGT) Q3 2026 Earnings Report

The call was broadly positive, with management highlighting revenue growth, sequential improvements in collections, gross margins, operating expenses, losses, cash forecasts, AI adoption, and clinical pipeline progress. The main challenges were the 18% year-over-year decline in Precision Diagnostics revenue, the continued negative effects and unfinished work related to the billing transition, and ongoing operating losses and negative full-year operating margins.

Management reaffirmed full year revenue guidance of $330 million to $340 million for 2020, representing year over year growth of 2.3% to 5.4%, including Precision Diagnostics revenues of approximately $161 million to $165 million, anatomic pathology approximately $146 million to $150 million and biopharma services approximately $23 million to $25 million. Full year non GAAP gross margins are expected to be in the mid-30 percent range, non GAAP operating margins in the low negative 20s range, and therapeutic development investment approximately $21 million in 2026. Full year 2026 non GAAP loss is expected to be $1.65 to $1.75 per share versus prior guidance of a loss of $2.22 to $2.35 per share, assuming no further repurchases after the 4.1 million shares repurchased year to date. Assuming capital purchases of $13 million, therapeutic development investment of $21 million, and excluding any future stock repurchases or other expenditures outside the ordinary course which could include additional M&A, ending cash is anticipated to be approximately $630 million versus a prior forecast of $610 million.