Bionano Genomics ((BNGO)) has held its Q2 earnings call. Read on for the main highlights of the call.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The recent earnings call for Bionano Genomics painted a picture of cautious optimism. While the company celebrated strong growth in flowcell sales and improved gross margins, it also faced challenges such as a decline in total revenue and a net decrease in the installed base of systems. Despite these hurdles, strategic advancements in software and consumables growth, along with new CPT codes, provide a hopeful outlook for future reimbursement opportunities.
Increase in Flowcell Sales
Flowcell sales saw a remarkable 17% increase year-over-year, signaling robust demand and utilization among routine-use customers. This growth highlights the company’s successful efforts in expanding its market reach and strengthening customer engagement.
Improved Gross Margin
Bionano Genomics reported a significant improvement in its non-GAAP gross margin, which rose to 52% from 35% a year ago. This increase reflects the company’s effective measures in reducing manufacturing costs and enhancing cost efficiencies.
Reduction in Operating Expenses
The company achieved a notable reduction in non-GAAP operating expenses, which fell by 53% year-over-year from $18.8 million to $8.8 million. This decrease underscores Bionano’s commitment to cost efficiency and operational optimization.
Strong Software and Consumables Growth
Revenue from consumables and software grew by 16% year-over-year in Q2 2025 and 8% for the first half of 2025. This growth indicates increased utilization and customer retention, reinforcing the company’s strategic focus on these segments.
New CPT Code for Optical Genome Mapping
The establishment of a second Category I CPT code by the American Medical Association for optical genome mapping (OGM) in evaluating constitutional genetic disorders is a significant milestone. This development could facilitate future reimbursement and broaden the adoption of OGM technology.
Decline in Total Revenue
Total revenue for Q2 2025 was $6.7 million, marking a 13% decrease year-over-year, primarily due to the discontinuation of certain clinical services. This decline poses a challenge, but the company is adjusting its strategies to mitigate the impact.
Net Decrease in Installed Base
The installed base of optical genome mapping systems experienced a net decrease, with 7 new installations and 8 systems being returned. This slight decline reflects the need for ongoing efforts to expand the installed base and enhance system retention.
Limited VIA Software Adoption
Currently, VIA software is installed in only about one-third of OGM systems, indicating a significant opportunity for increased adoption and utilization. This presents a potential growth area for the company to explore further.
Forward-Looking Guidance
Bionano Genomics reiterated its full-year revenue guidance of $26 million to $30 million and increased its 2025 OGM installation expectations to a range of 20 to 25 new systems. The company is focusing on driving utilization among routine users, with consumables and software revenue rising to 73% of the total product mix in Q2 2025. These forward-looking statements reflect the company’s strategic priorities and growth ambitions.
In conclusion, Bionano Genomics’ earnings call conveyed a cautiously optimistic sentiment, with strong growth in specific areas counterbalanced by challenges in revenue and system installations. The company’s strategic initiatives in software and consumables, coupled with new CPT codes, position it well for future growth and reimbursement opportunities.