Fulgent Genetics (NASDAQ:FLGT) Announces Quarterly Earnings Results

Key Points

• Fulgent Genetics missed quarterly expectations: The company reported adjusted EPS of negative $0.58 versus the negative $0.46 consensus, while revenue of $85.4 million fell short of the $94.0 million estimate. Revenue-cycle issues, including delayed billing and lower collection rates, pressured margins.
• Full-year guidance was reduced: Fulgent now expects 2026 revenue of $330 million–$340 million and non-GAAP EPS of negative $2.22 to negative $2.35, reflecting continued operating losses and declines from its largest customer.
• Acquisitions and the therapeutic pipeline provide potential offsets: Bako Diagnostics and StrataDx contributed $16.9 million in second-quarter revenue, while management cited progress for FID-007 and FID-022, including plans to begin a Phase III trial for FID-007 in the first half of 2027.

Fulgent Genetics (NASDAQ:FLGT - Get Free Report) announced its quarterly earnings data on Thursday. The company reported ($0.58) EPS for the quarter, missing the consensus estimate of ($0.46) by ($0.12), FiscalAI reports. Fulgent Genetics had a negative net margin of 23.04% and a negative return on equity of 3.24%. The business had revenue of $85.39 million during the quarter, compared to the consensus estimate of $94.00 million. Fulgent Genetics updated its FY 2026 guidance to -2.350--2.220 EPS.

Here are the key takeaways from Fulgent Genetics' conference call:

• Revenue-cycle management issues pressured results: Q2 revenue was $85.4 million, but delayed billing and lower collection rates reduced recognized revenue and pushed GAAP gross margin to 30.1%.
• Full-year guidance was reduced. Fulgent now expects 2026 revenue of $330 million–$340 million, versus prior guidance of $350 million, with non-GAAP EPS projected at a loss of $2.22–$2.35 and operating margin in the negative mid-20% range.
• The Bako Diagnostics and StrataDx acquisitions contributed $16.9 million in Q2 revenue and are expected to contribute approximately $53 million in the second half of 2026; management also cited successful integration and a significantly expanded anatomic pathology sales force.
• Revenue from Fulgent’s largest customer declined $4.6 million sequentially as the customer brings testing in-house, and management expects further declines in the second half, although it expects acquisition revenue to partially or fully offset the loss.
• Fulgent reported progress in its therapeutic pipeline, including encouraging Phase II FID-007 data, an FDA end-of-Phase-II meeting planned for later this summer, and a target to begin a Phase III registration trial in the first half of 2027; FID-022 also advanced through Phase I dose escalation.

Fulgent Genetics Price Performance

NASDAQ FLGT traded up $0.57 during midday trading on Thursday, hitting $20.21. 259,193 shares of the company traded hands, compared to its average volume of 221,130. The company has a market cap of $573.96 million, a PE ratio of -8.46 and a beta of 0.89. The company's 50-day simple moving average is $19.32 and its 200-day simple moving average is $19.27. Fulgent Genetics has a 52 week low of $13.46 and a 52 week high of $31.04.

Insider Buying and Selling at Fulgent Genetics

In related news, COO Jian Xie sold 2,146 shares of the firm's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $17.89, for a total transaction of $38,391.94. Following the sale, the chief operating officer owned 367,605 shares of the company's stock, valued at $6,576,453.45. This trade represents a 0.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Hanlin Gao sold 1,688 shares of Fulgent Genetics stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $17.89, for a total value of $30,198.32. Following the completion of the transaction, the insider owned 990,374 shares in the company, valued at $17,717,790.86. This trade represents a 0.17% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 5,980 shares of company stock valued at $106,360. Corporate insiders own 36.18% of the company's stock.

Institutional Trading of Fulgent Genetics

A number of institutional investors have recently modified their holdings of FLGT. RTW Investments LP acquired a new position in shares of Fulgent Genetics during the fourth quarter worth $18,521,000. JPMorgan Chase & Co. boosted its position in shares of Fulgent Genetics by 767.0% in the 3rd quarter. JPMorgan Chase & Co. now owns 299,014 shares of the company's stock worth $6,758,000 after purchasing an additional 264,524 shares in the last quarter. Goldman Sachs Group Inc. grew its stake in Fulgent Genetics by 89.4% during the 4th quarter. Goldman Sachs Group Inc. now owns 348,533 shares of the company's stock worth $9,156,000 after buying an additional 164,535 shares during the last quarter. Wells Fargo & Company MN grew its stake in Fulgent Genetics by 261.1% during the 4th quarter. Wells Fargo & Company MN now owns 120,781 shares of the company's stock worth $3,173,000 after buying an additional 87,329 shares during the last quarter. Finally, Renaissance Technologies LLC acquired a new position in Fulgent Genetics during the 4th quarter valued at about $2,177,000. 48.06% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

FLGT has been the topic of a number of research analyst reports. Wall Street Zen upgraded shares of Fulgent Genetics from a "strong sell" rating to a "sell" rating in a research note on Saturday, May 30th. Weiss Ratings reissued a "sell (e+)" rating on shares of Fulgent Genetics in a research report on Monday, July 6th. Finally, Piper Sandler restated a "neutral" rating and set a $15.00 price target (down from $30.00) on shares of Fulgent Genetics in a research note on Tuesday, May 5th. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $27.00.

About Fulgent Genetics

Fulgent Genetics, Inc NASDAQ: FLGT is a California-based company specializing in high-complexity genetic testing and diagnostic services. Operating from its headquarters in Temple City, Fulgent leverages next-generation sequencing (NGS) technologies and advanced bioinformatics to deliver a broad range of clinical and research assays. The company's infrastructure includes CAP- and CLIA-certified laboratories, enabling it to process large volumes of samples with rapid turnaround times.

Fulgent's product portfolio encompasses hereditary cancer panels, rare disease and neuromuscular disorder testing, pharmacogenomic screenings, non-invasive prenatal tests, and infectious disease assays including COVID-19 diagnostics.

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