0001628280-26-032116
SEC filingRevenue declined sharply year-over-year, reflecting strategic contraction in lower-margin service lines; however, gross margin remained robust and operating losses narrowed, underscoring disciplined cost management amid ongoing investment in core tools offerings.
Revenue for Q1 FY2026 was $19.5M, down 59.7% from $48.3M in Q1 FY2025. This decline was primarily attributable to the termination of the BiomEdit contract in the first quarter of 2025 and a reduction in the scope of services provided to a large enterprise customer in the agriculture industry. The company charges service fees for Autonomous Lab services using a usage-based model analogous to cloud computing providers or CROs — a structure that supports recurring, scalable revenue once adoption matures.
Gross profit totaled $16.4M, down 54.9% year-over-year, yet gross margin remained elevated at 84.1%. This resilience reflects the high-margin nature of Autonomous Lab service fees and a deliberate reduction in direct equipment expenses incurred for lab automation solutions customers. Cost of other revenue — which includes Datapoints and lab automation solutions — is structured around these tools offerings and benefits from operational efficiencies as scale increases.
Net income improved 9.2% year-over-year to -$82.6M, and diluted EPS improved 17.3% to -$1.39. These improvements align with the narrowing of operating losses and reflect the company’s ongoing efforts to align expense structure with current revenue levels while preserving strategic investment capacity.