Fulgent Genetics — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue for the quarter ended September 30, 2026, was $90.4 million, representing approximately 8% year-over-year growth compared to $84.1 million in the prior year period.
• GAAP gross profit was $31.9 million (35.3% margin), while Non-GAAP gross profit was $32.8 million (36.3% margin).
• GAAP net loss was $13.2 million, or $(0.48) per share; Non-GAAP net loss was $2.4 million, or $(0.09) per share.
• Adjusted EBITDA loss was $7.5 million.
• The company ended the quarter with $652.4 million in cash, cash equivalents, restricted cash, and investments in marketable securities.
• For the nine months ended September 30, 2026, revenue was $246.9 million compared to $239.3 million in the prior year period.
• GAAP net loss for the nine months was $67.5 million, or $(2.34) per share; Non-GAAP net loss was $29.6 million, or $(1.02) per share.

Guidance and Future Outlook:

• Maintains full-year 2026 revenue guidance of $330.0 million to $340.0 million.
• Improves outlook for full-year 2026 Non-GAAP loss to approximately $46.0 million to $50.0 million (previously implied to be higher).
• Updated full-year 2026 Non-GAAP loss per share guidance to approximately $1.65 to $1.75, reflecting a reduction of 4.1 million shares used for the stock repurchase program year-to-date.
• Updated full-year 2026 cash guidance to approximately $630.0 million, which includes $64.1 million of cash used for the stock repurchase program year-to-date.
• Cash guidance assumptions include $13 million in capital purchases, $21 million in spend on the therapeutic development business, and no further near-term repurchases under the stock repurchase program.

Business Segments and Product Lines:

• The therapeutics pipeline shows momentum with candidates FID-007 and FID-022 utilizing the company's nano-drug delivery platform.
• The laboratory services business is integrating AI into workflows, resulting in increased utilization and reliability.
• The company plans to expand its AI portfolio to drive further improvements in efficiency and quality.
• The company operates two primary segments: a well-established laboratory services business and a therapeutic development business focused on cancer treatments using nanoencapsulation and targeted therapy.

Market and Competitive Landscape:

• No specific market share data, competitor names, or detailed market trend analysis was provided in the press release.

Risks and Challenges:

• The company previously faced billing system issues, which management states have been addressed, leading to improved collection rates.
• Risks include potential delays or changes to trial design for FID-007 Phase 3 trials due to FDA feedback.
• Risks exist regarding the successful development, validation, and deployment of AI applications in clinical use.
• The company faces risks related to reimbursement levels, claims processing delays, and the composition of its customer base.

Management Commentary and Tone:

• Ming Hsieh, Chairman and CEO, expressed encouragement regarding the momentum in the therapeutics pipeline and the integration of AI in laboratory services.
• Paul Kim, CFO, stated the company is pleased with third-quarter results driven by improved collection rates and remains confident in the outlook for the remainder of the year following progress on billing system issues.

Other Key Points:

• The company utilized $64.1 million for stock repurchases year-to-date as of September 30, 2026.
• The stock repurchase program involves a reduction of 4.1 million shares year-to-date.
• Future repurchases will depend on market price, economic conditions, and board discretion.
• The company acquired Bako and StrataDx, with acquisition-related costs of $2.6 million and severance of $0.6 million incurred in the first nine months of 2026.
• A conference call was scheduled for November 5, 2026, at 4:30 PM ET to discuss results.