Fulgent Reports Fourth Quarter and Full Year 2024 Financial Results

About this update from Fulgent Genetics, Inc.

Full Year Total Revenue of $283.5 million Full Year Core Revenue grows 7% year-over-year to $281.2 million Ended 2024 with $828.6 million of cash, cash equivalents, restricted cash, and investments in marketable securities, representing cash per share of $26.87 EL MONTE, Calif. --(BUSINESS WIRE)-- Fulgent Genetics, Inc. (NASDAQ: FLGT) (“Fulgent,” or the “Company”), a technology-based company with a well-established laboratory services business and a therapeutic development business, today announced financial results for its fourth quarter and full year ended December 31, 2024 . Fourth Quarter 2024 Results: Total Revenue of $76.2 million Core Revenue1 grew 14% year-over-year to $76.0 million GAAP loss of $5.9 million , or ( $0.19 ) per share Non-GAAP income of $1.2 million , or $0.04 per share Adjusted EBITDA income of $0.8 million Cash from operations $25.0 million Full Year 2024 Results: Total Revenue of $283.5 million Core Revenue1 grew 7% year-over-year to $281.2 million GAAP loss of $42.7 million , or ( $1.41 ) per share Non-GAAP income of $15.0 million , or $0.49 per share Adjusted EBITDA loss of $2.8 million Cash from operations $21.1 million Cash, cash equivalents, restricted cash, and investments in marketable securities of $828.6 million Note: 1) Core Revenue is revenue calculated in accordance with GAAP minus revenue from COVID-19 testing products and services including COVID-19 NGS testing revenue, each as calculated in accordance with GAAP. Non-GAAP income (loss), non-GAAP income (loss) per share, adjusted EBITDA income (loss), non-GAAP gross profit and margin, and non-GAAP operating income (loss) and margin, are described below under “Note Regarding Non-GAAP Financial Measures” and are reconciled to the most directly comparable GAAP financial measure, GAAP income (loss), GAAP gross profit and margin, and GAAP operating income (loss) and margin, in the accompanying tables. Ming Hsieh , Chairperson of the Board of Directors and Chief Executive Officer, said, “I am pleased with the progress of our business in 2024. Laboratory Services exhibited strong growth for the year. In Therapeutics Development , we now have a clinical pipeline, with FID-007 continuing to progress in a Phase 2 trial and FID-022 cleared by the U.S. FDA to begin a Phase 1 trial.” Paul Kim , Chief Financial Officer, said, “We are pleased with our financial performance in 2024 and believe we have entered 2025 in a position of strength, with projected growth in our laboratory services business and a strong balance sheet to execute our objectives.” Outlook : For the full year 2025, Fulgent expects: Core Revenue of approximately $310 million GAAP loss of approximately ( $1.95 ) per share Non-GAAP loss of approximately ( $0.65 ) per share Cash, cash equivalents, and investments in marketable securities of approximately $780 million as of December 31, 2025 * *Cash expenditures may be higher or lower than currently estimated due to a variety of factors and circumstances, including as a result of the Company’s ongoing stock repurchase program or other expenditures outside the ordinary course of business, which could include M&A. Conference Call Information Fulgent will host a conference call for the investment community today at 8:30 AM ET ( 5:30 AM PT ) to discuss its fourth quarter and full year 2024 results. The call may be accessed through a live audio webcast in the Investor Relations section of the Company’s website, http://ir.fulgentgenetics.com . An audio replay will be available at the same location. Note Regarding Non-GAAP Financial Measures Certain information set forth in this press release and/or to be discussed on the Company’s earnings call, including non-GAAP income (loss), non-GAAP income (loss) per share, adjusted EBITDA income (loss), non-GAAP gross profit and margin, and non-GAAP operating income (loss) and margin, are non-GAAP financial measures. Fulgent believes this information is useful to investors because it provides a basis for measuring the performance of the Company’s business, excluding certain income or expense items that management believes are not directly attributable to the Company’s operating results. Fulgent defines non-GAAP income (loss) as net income (loss) calculated in accordance with accounting principles generally accepted in the United States of America , or GAAP, plus amortization of intangible assets, plus goodwill impairment loss, plus equity-based compensation expenses, plus impairment of available-for-sale debt securities, plus or minus the non-GAAP tax effect, and plus or minus other charges or gains, as identified, that management believes are not representative of the Company’s operations. The non-GAAP tax effect was calculated by excluding from the GAAP provision the impact of the amortization of intangible assets, goodwill impairment loss, equity-based compensation expenses, and impairment of available-for-sale debt securities. Fulgent defines adjusted EBITDA income (loss) as GAAP income (loss) plus or minus interest (expense) income, plus or minus provisions (benefits) for income taxes, plus goodwill impairment loss, plus equity-based compensation expenses, plus depreciation and amortization, plus impairment of available-for-sale debt securities, and plus or minus other charges or gains, as identified, that management believes are not representative of the Company’s operations. Fulgent defines non-GAAP gross profit as gross profit calculated in accordance with GAAP plus equity-based compensation included in cost of revenue as shown in the table below. Fulgent defines non-GAAP gross margin by taking non-GAAP gross profit and dividing it by GAAP revenue. Fulgent defines non-GAAP operating profit (loss) by taking GAAP operating profit (loss) and adding goodwill impairment loss, equity-based compensation, and amortization of intangible assets. Non-GAAP operating margin is calculated by taking non-GAAP operating profit (loss) and dividing by GAAP revenue. Fulgent may continue to incur expenses similar to the items added to or subtracted from GAAP income (loss) to calculate non-GAAP income (loss) and adjusted EBITDA income (loss); accordingly, the exclusion of these items in the presentation of these non-GAAP financial measures should not be construed as an implication that these items are unusual, infrequent or non-recurring. Management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measure of net income (loss), gross profit and margin, and operating income (loss) and margin, in evaluating the Company’s operating performance. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in conformity with GAAP, and non-GAAP financial measures as reported by Fulgent may not be comparable to similarly titled metrics reported by other companies. About Fulgent Fulgent is a technology-based company with a well-established laboratory services business and a therapeutic development business. Fulgent’s laboratory services business includes technical laboratory and testing services and professional interpretation of laboratory results by licensed physicians. Fulgent’s therapeutic development business is focused on developing drug candidates for treating a broad range of cancers using a novel nanoencapsulation and targeted therapy platform designed to improve the therapeutic window and pharmacokinetic profile of new and existing cancer drugs. The Company aims to transform from a diagnostic business into a fully integrated precision medicine company. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements in this press release include statements about, among other things: future performance; guidance, including guidance regarding expected quarterly and annual financial results, core revenues, GAAP loss, non-GAAP loss, and cash, cash equivalents and investments in marketable securities; evaluations and judgments regarding the stability of certain revenue sources, the Company’s cash position and sufficiency of its resources, momentum, trajectory, vision, future opportunities and future growth of the Company’s testing and laboratory services, technologies and expansion; the Company’s research and development efforts, including any implications that the results of earlier clinical trials will be representative or consistent with later clinical trials, the expected timing of enrollment and regulatory filings for these trials and the availability of data or results of these trials, including any implication that interim or preliminary data will be representative of final data; the Company’s identification and evaluation of opportunities and its ability to capitalize on opportunities, capture market share, or expand its presence in certain markets; and the Company’s ability to continue to grow its business. Forward-looking statements are statements other than historical facts and relate to future events or circumstances or the Company’s future performance, and they are based on management’s current assumptions, expectations, and beliefs concerning future developments and their potential effect on the Company’s business. These forward-looking statements are subject to a number of risks and uncertainties, which may cause the forward-looking events and circumstances described in this press release to not occur, and actual results to differ materially and adversely from those described in or implied by the forward-looking statements. These risks and uncertainties include, among others: the market potential for, and the rate and degree of market adoption of, the Company’s tests; its ability to maintain turnaround times and otherwise keep pace with rapidly changing technology; the Company’s ability to maintain the low internal costs of its business model; the Company’s ability to maintain an acceptable margin; risks related to volatility in the Company’s results, which can fluctuate significantly from period to period; risks associated with the composition of the Company’s customer base, which can fluctuate from period to period and can be comprised of a small number of customers that account for a significant portion of the Company’s revenue; the Company’s level of success in obtaining coverage and adequate reimbursement and collectability levels from third-party payors for its tests and testing services; the Company’s level of success in establishing and obtaining the intended benefits from partnerships, strategic investments, joint ventures, acquisitions, or other relationships; the success of the Company’s development efforts, including the Company’s ability to progress its candidates through clinical trials on the timelines expected; the Company’s compliance with the various evolving and complex laws and regulations applicable to its business and its industry; and the Company’s ability to protect its proprietary technology and intellectual property. As a result of these risks and uncertainties, forward-looking statements should not be relied on or viewed as predictions of future events. The forward-looking statements made in this press release speak only as of the date of this press release, and the Company assumes no obligation to update publicly any such forward-looking statements to reflect actual results or to changes in expectations, except as otherwise required by law. The Company’s reports filed with the U.S. Securities and Exchange Commission , or the SEC , including its annual report on Form 10-K for the fiscal year ended December 31, 2023 , filed with the SEC on February 28, 2024 , and the other reports it files from time to time, including subsequently filed annual, quarterly and current reports, are made available on the Company’s website upon their filing with the SEC . These reports contain more information about the Company, its business and the risks affecting its business, as well as its results of operations for the periods covered by the financial results included in this press release. FULGENT GENETICS, INC. Condensed Consolidated Balance Sheet Data December 31, 2024 and December 31, 2023 (in thousands) December 31, 2024 December 31, 2023 ASSETS: Cash and cash equivalents $ 55,144 $ 97,473 Investments in marketable securities 773,313 750,252 Accounts receivable, net 69,021 51,132 Property, plant, and equipment, net 105,549 83,464 Other assets 216,937 253,007 Total assets $ 1,219,964 $ 1,235,328 LIABILITIES & EQUITY: Accounts payable, accrued liabilities and other liabilities $ 90,805 $ 102,042 Total stockholders’ equity 1,129,159 1,133,286 Total liabilities & equity $ 1,219,964 $ 1,235,328 FULGENT GENETICS, INC. Condensed Consolidated Statement of Operations Data Three and Twelve Months Ended December 31, 2024 and 2023 (in thousands, except per share data) (unaudited) Three Months Ended December 31 , Year Ended December 31 , 2024 2023 2024 2023 Revenue $ 76,214 $ 70,505 $ 283,470 $ 289,213 Cost of revenue (1) 44,365 45,276 176,255 184,757 Gross profit 31,849 25,229 107,215 104,456 Operating expenses: Research and development (1) 12,113 11,952 48,816 41,440 Selling and marketing (1) 9,538 10,500 36,246 41,467 General and administrative (1) 24,341 31,706 88,106 88,999 Amortization of intangible assets 1,992 1,958 7,965 7,845 Goodwill impairment loss — 120,234 — 120,234 Total operating expenses 47,984 176,350 181,133 299,985 Operating loss (16,135 ) (151,121 ) (73,918 ) (195,529 ) Interest income 8,123 5,810 31,304 21,612 Interest expense (40 ) 137 170 (488 ) Impairment of available-for-sale debt securities — — (10,073 ) — Other income (expense), net 7 (22 ) 561 320 Total other income, net 8,090 5,925 21,962 21,444 Loss before income taxes (8,045 ) (145,196 ) (51,956 ) (174,085 ) (Benefit from) provision for income taxes (1,855 ) (10,862 ) (8,136 ) 1,154 Net loss from consolidated operations (6,190 ) (134,334 ) (43,820 ) (175,239 ) Net loss attributable to noncontrolling interests 302 6,185 1,112 7,414 Net loss attributable to Fulgent $ (5,888 ) $ (128,149 ) $ (42,708 ) $ (167,825 ) Net loss per common share attributable to Fulgent: Basic $ (0.19 ) $ (4.30 ) $ (1.41 ) $ (5.63 ) Diluted $ (0.19 ) $ (4.30 ) $ (1.41 ) $ (5.63 ) Weighted-average common shares: Basic 30,652 29,771 30,235 29,784 Diluted 30,652 29,771 30,235 29,784 (1) Equity-based compensation expense was allocated as follows: Cost of revenue $ 1,851 $ 2,375 $ 7,799 $ 9,749 Research and development 3,408 3,973 14,971 14,873 Selling and marketing 924 1,320 3,907 4,964 General and administrative 4,225 3,764 17,804 13,336 Total equity-based compensation expense $ 10,408 $ 11,432 $ 44,481 $ 42,922 FULGENT GENETICS, INC. Non-GAAP Income (Loss) Reconciliation Three and Twelve Months Ended December 31, 2024 and 2023 (in thousands, except per share data) Three Months Ended December 31 , Year Ended December 31 , 2024 2023 2024 2023 Net loss attributable to Fulgent $ (5,888 ) $ (128,149 ) $ (42,708 ) $ (167,825 ) Amortization of intangible assets 1,992 1,958 7,965 7,845 Goodwill impairment loss — 120,234 — 120,234 Equity-based compensation expense 10,408 11,432 44,481 42,922 Impairment of available-for-sale debt securities — — 10,073 — Non-GAAP tax effect (1) (5,349 ) 2,794 (4,780 ) (15,473 ) Non-GAAP income (loss) attributable to Fulgent $ 1,163 $ 8,269 $ 15,031 $ (12,297 ) Net loss per common share attributable to Fulgent: Basic $ (0.19 ) $ (4.30 ) $ (1.41 ) $ (5.63 ) Diluted $ (0.19 ) $ (4.30 ) $ (1.41 ) $ (5.63 ) Non-GAAP income (loss) per common share attributable to Fulgent: Basic $ 0.04 $ 0.28 $ 0.50 $ (0.41 ) Diluted $ 0.04 $ 0.28 $ 0.49 $ (0.41 ) Weighted average common shares: Basic 30,652 29,771 30,235 29,784 Diluted 31,184 29,771 30,530 29,784 (1) Tax rates as follows: During the three and twelve months ended December 31, 2024 and 2023, the Company calculated an income tax provision on a non-GAAP basis. FULGENT GENETICS, INC. Non-GAAP Adjusted EBITDA Reconciliation Three and Twelve Months Ended December 31, 2024 and 2023 (in thousands) Three Months Ended December 31 , Year Ended December 31 , 2024 2023 2024 2023 Net loss attributable to Fulgent $ (5,888 ) $ (128,149 ) $ (42,708 ) $ (167,825 ) Interest income, net (8,083 ) (5,947 ) (31,474 ) (21,124 ) (Benefit from) provision for income taxes (1,855 ) (10,862 ) (8,136 ) 1,154 Goodwill impairment loss — 120,234 — 120,234 Equity-based compensation expense 10,408 11,432 44,481 42,922 Depreciation and amortization 6,192 6,533 24,928 26,143 Impairment of available-for-sale debt securities — — 10,073 — Adjusted EBITDA $ 774 $ (6,759 ) $ (2,836 ) $ 1,504 FULGENT GENETICS, INC. Non-GAAP Operating Margin Three and Twelve Months Ended December 31, 2024 and 2023 (in thousands, except percentages) Three Months Ended December 31 , Year Ended December 31 , 2024 2023 2024 2023 Revenue $ 76,214 $ 70,505 $ 283,470 $ 289,213 Cost of revenue 44,365 45,276 176,255 184,757 Gross profit 31,849 25,229 107,215 104,456 Gross margin 41.8 % 35.8 % 37.8 % 36.1 % Equity-based compensation included in cost of revenue 1,851 2,375 7,799 9,749 Non-GAAP gross profit 33,700 27,604 115,014 114,205 Non-GAAP gross margin 44.2 % 39.2 % 40.6 % 39.5 % Operating expenses 47,984 176,350 181,133 299,985 Equity-based compensation included in operating expenses 8,557 9,057 36,682 33,173 Amortization of intangible assets 1,992 1,958 7,965 7,845 Goodwill impairment loss — 120,234 — 120,234 Non-GAAP operating expenses 37,435 45,101 136,486 138,733 Non-GAAP operating loss $ (3,735 ) $ (17,497 ) $ (21,472 ) $ (24,528 ) Non-GAAP operating margin -4.9 % -24.8 % -7.6 % -8.5 % View source version on businesswire.com : https://www.businesswire.com/news/home/20250227819957/en/ Investor Relations Contact: The Blueshirt Group Melanie Solomon , [email protected] Source: Fulgent Genetics, Inc.

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