0001818331-25-000108
SEC filingRevenue surged 46% YoY driven by 69% exome/genome revenue growth from 28% volume increase and margin expansion.
For the three months ended June 30, 2025, total revenue increased 46% to $102.7 million from $70.5 million in the prior year period. Diagnostic test revenue rose 44% to $99.8 million, driven by a 69% increase in whole exome and genome sequencing revenues, which benefited from a 28% rise in test volumes. Gross profit improved 65% to $70.9 million, with gross margin expanding to 69.0% from 60.9%, reflecting favorable test mix shift toward higher-margin exome/genome tests, improved average reimbursement rates, and continued cost per test leverage. Research and development expenses increased 38% to $15.1 million, primarily due to higher compensation costs and inclusion of Fabric Genomics. Selling and marketing expenses grew 17% to $19.4 million, supporting commercial expansion. General and administrative expenses increased 5% to $27.4 million, partially offset by a one-time $8.4 million sales-and-use tax refund. Operating income swung to $9.0 million from a loss of $10.6 million. Non-operating income of $1.6 million (vs. a loss of $18.8 million) included gains from warrant fair value changes, compared to prior year legal reserves and non-cash charges. Net income was $10.8 million versus a net loss of $29.2 million.
The MD&A highlights two revenue streams: diagnostic test revenue and other revenue. Diagnostic test revenue is the primary driver, representing 97% of total revenue in the current quarter. Within diagnostics, exome and genome tests are the growth engine, with volumes increasing 28% and contributing 69% of revenue growth. Other revenue more than doubled to $2.9 million, boosted by the Fabric Genomics acquisition and expansion of biopharma data programs. The company emphasizes test mix shift toward whole exome and genome tests as a key margin driver, with cost per test declining.
Management expects continued investment in commercial team, product development, and platform innovation, which will increase absolute operating expenses but decrease as a percentage of revenue over the long term. The company sees opportunities to expand coverage and reimbursement, lower costs through automation, and grow adoption among existing and new customers. No specific quantitative guidance is provided. Management believes existing cash and marketable securities of $134.6 million are sufficient for at least twelve months.