Fulgent reiterates 2026 revenue guidance after Q1 revenue beat, EPS miss

 

Fulgent reiterates 2026 revenue guidance after Q1 revenue beat, EPS miss, repurchases 10% of shares, expects delayed $106M federal income tax refund, bolstering liquidity

• Q1 2026 revenue $71.1M, down 3.2% YoY, hurt by largest customer insourcing but above estimates.
• Non-GAAP EPS -$0.36 in Q1 2026 declined 1000% YoY and missed earnings estimates.
• Q1 non-GAAP gross margin was 32.3%, pressured by lower testing volumes and a claims processing backlog.
• Management reiterated 2026 revenue guidance of $350M and a 39% non-GAAP gross margin outlook.
• Company guides full-year 2026 non-GAAP loss of approximately $46M, or $(1.59) per share, cut solely from share-count reduction.
• Acquisition of Bako and StrataDx adds $53M of expected 2026 revenue and helps diversify customer concentration risk.
• Q2–Q4 2026 revenue projected above $90M per quarter, with margins improving as the claims backlog clears.
• Company repurchased 3.1M shares year-to-date, disclosing $40.1M of stock buybacks in an SEC filing today.
• On Q1 2026 earnings call, management expects delayed $106 million federal income tax refund to bolster its liquidity profile.
• Despite significant repurchases signaling confidence, management expects year-end 2026 cash about $636M and currently holds $605M.
• Therapeutics pipeline progressing: FID-007 completed Phase II, has ASCO oral presentation, with Phase III targeted to start in 2027.
• Main risks include integrating acquisitions, offsetting largest-customer decline, and sustaining high R&D spending levels.
• Main concern remains near-term revenue and margin headwinds from customer insourcing while non-GAAP losses stay sizable.
• Overall a mixed quarter, with largest-customer volume decline offset partly by acquisitions and therapeutics pipeline progress.

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