Fulgent Genetics (FLGT) AI Stock Analysis

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Fulgent Genetics

(NASDAQ:FLGT)

Rating:63Neutral

Price Target:

$23.00

▲(4.78% Upside)

Fulgent Genetics' overall stock score is driven by strong technical indicators and positive earnings call highlights, such as revenue growth and product expansion. However, financial performance challenges, particularly in profitability and cash flow, and a negative valuation score due to losses, weigh down the overall score.

Fulgent Genetics (FLGT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$672.79M

Dividend YieldN/A

Average Volume (3M)304.17K

Price to Earnings (P/E)―

Beta (1Y)0.61

Revenue Growth4.31%

EPS Growth69.57%

CountryUS

Employees1,313

SectorHealthcare

Sector Strength51

IndustryMedical - Diagnostics & Research

Share Statistics

EPS (TTM)0.07

Shares Outstanding30,609,043

10 Day Avg. Volume223,451

30 Day Avg. Volume304,167

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.47

Enterprise Value/Revenue1.05

Enterprise Value/Gross Profit2.61

Enterprise Value/Ebitda-7.25

Forecast

1Y Price Target

$24.75

Price Target Upside12.76% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering4

Fulgent Genetics Business Overview & Revenue Model

Company DescriptionFulgent Genetics (FLGT) is a leading genomic testing company that specializes in providing comprehensive genetic testing services. The company operates primarily in the healthcare sector, focusing on advanced molecular diagnostics, including genetic testing for various conditions such as inherited diseases, infectious diseases, and oncology. Fulgent offers a wide range of services, including next-generation sequencing (NGS) and custom testing solutions, catering to both healthcare providers and patients, with a mission to improve patient outcomes through precision medicine.

How the Company Makes MoneyFulgent Genetics generates revenue primarily through its genetic testing services. The company's revenue model is based on the fees charged for its diagnostic tests, which include both routine and custom genomic tests. Key revenue streams include individual tests for hereditary cancer, infectious diseases, and other genetic conditions, as well as partnerships with healthcare institutions and laboratories that utilize Fulgent's testing capabilities. Additionally, Fulgent has established collaborations with pharmaceutical companies and research institutions, which contribute to its earnings by providing specialized testing services and insights for clinical trials and drug development. The company's ability to innovate and adapt its testing offerings to meet the evolving needs of the healthcare market also plays a significant role in sustaining its revenue growth.

Fulgent Genetics Earnings Call Summary

Earnings Call Date:Aug 01, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 05, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong revenue growth and product expansions, including a significant increase in core revenue and successful market expansions. However, increased operating expenses and sustained losses, alongside anticipated seasonal slowdowns, present challenges. Overall, the positive aspects slightly outweigh the negatives.

Q2-2025 Updates

Positive Updates

Strong Revenue Growth

Core revenue reached $81.7 million, representing a 16% year-over-year increase and an 11% sequential increase. Precision Diagnostics was up 7%, Biopharma Services surged by 54%, and Anatomic Pathology increased by 11%.

Product and Market Expansion

Launched a new whole genome sequencing service with enhanced features. Received CE Mark for Fulgent exome and Fulgent Pipeline Manager, expanding availability in Europe. Executed over 20 new managed care agreements, adding 35 million new covered lives.

Improved Financial Outlook

Increased annual revenue guidance for 2025 from $310 million to $320 million, representing a 14% year-over-year growth.

Therapeutic Development Progress

FID-007 progressing through Phase II clinical trial with 32 patients enrolled. FID-022 Phase I trial underway, with promising potential for treating various cancers.

Negative Updates

Operating Expenses and Losses

Non-GAAP operating expenses increased to $43.9 million, and GAAP loss was $19 million due to a $9.9 million impairment charge. Adjusted EBITDA loss was approximately $3 million.

Non-GAAP Operating Margin

Non-GAAP operating margin remained negative at minus 9.4%, despite improvements.

Anatomic Pathology Seasonality

Anticipated seasonality in Anatomic Pathology could lead to reduced revenues in the latter half of the year, especially in dermatological procedures.

Company Guidance

During the Fulgent Genetics Q2 2025 Conference Call, the company provided updated guidance and insights into its financial performance and strategic initiatives. The company reported $81.8 million in total revenue for Q2 2025, with core revenue (excluding COVID-19 testing) at $81.7 million, reflecting a 16% year-over-year increase. Gross margin on a non-GAAP basis was 44.2%, while GAAP gross margin was 42.1%. Operating expenses on a non-GAAP basis were $43.9 million, with GAAP operating expenses at $54.1 million. A GAAP loss of $19 million was recorded, impacted by a $9.9 million non-cash impairment charge. The company raised its full-year revenue guidance for 2025 to $320 million, representing a 14% year-over-year growth. Non-GAAP EPS guidance improved from a loss of $0.65 to $0.35 per share. The company also highlighted the progress in its therapeutic pipeline, with FID-007 in Phase II trials, expected to cost $30 million, and FID-022 entering Phase I trials, expected to cost $8 million. The company emphasized its strong cash position, ending the quarter with $777.5 million in cash and marketable securities.

Fulgent Genetics Financial Statement Overview

Summary

Fulgent Genetics is facing financial challenges with declining profitability and cash flow issues, despite a strong balance sheet with low leverage. The company needs to address operational inefficiencies and improve revenue generation to stabilize its financial performance.

Income Statement

Neutral

Fulgent Genetics has faced declining revenues and profitability in recent years. The TTM data indicates a negative EBIT and net profit margin, reflecting operational challenges. Despite a slight revenue growth in the TTM period compared to 2024, the company struggles to maintain profitability with gross and net profit margins significantly reduced from previous years.

Balance Sheet

Positive

The company maintains a strong equity position with a high equity ratio and low leverage, as indicated by a minimal debt-to-equity ratio. However, the return on equity has turned negative in recent periods, highlighting profitability issues. The overall financial stability remains robust due to substantial stockholders' equity and low debt.

Cash Flow

Neutral

The cash flow statement shows a deterioration in free cash flow and operating cash flow in the TTM period, resulting in negative free cash flow growth. Operating cash flow to net income ratio is unfavorable due to negative net income. The company needs to improve cash flow generation to support operations and potential growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	303.22M	283.47M	289.21M	618.97M	992.58M	421.71M
Gross Profit	121.40M	107.22M	104.46M	366.90M	777.05M	331.90M
EBITDA	-43.78M	-48.99M	-46.55M	221.59M	686.96M	293.12M
Net Income	-51.02M	-42.71M	-167.82M	143.40M	507.36M	214.31M
Balance Sheet
Total Assets	1.20B	1.22B	1.24B	1.39B	1.28B	700.46M
Cash, Cash Equivalents and Short-Term Investments	292.93M	258.11M	424.15M	852.88M	935.55M	431.87M
Total Debt	7.39M	9.23M	15.25M	20.64M	21.28M	15.85M
Total Liabilities	88.20M	90.81M	102.04M	116.18M	112.84M	131.07M
Stockholders Equity	1.12B	1.13B	1.14B	1.27B	1.17B	569.39M
Cash Flow
Free Cash Flow	-59.95M	-19.25M	4.80M	234.75M	514.73M	104.12M
Operating Cash Flow	-25.09M	21.06M	27.00M	253.52M	538.58M	140.63M
Investing Cash Flow	62.66M	-58.35M	38.90M	-261.31M	-546.55M	-326.44M
Financing Cash Flow	-14.70M	-4.85M	-47.78M	-77.14M	85.39M	261.25M

Fulgent Genetics Technical Analysis

Technical Analysis Sentiment

Positive

Last Price21.95

Price Trends

50DMA

20.00

Positive

100DMA

19.93

Positive

200DMA

18.77

Positive

Market Momentum

MACD

0.61

Positive

RSI

62.67

Neutral

STOCH

54.97

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLGT, the sentiment is Positive. The current price of 21.95 is above the 20-day moving average (MA) of 21.57, above the 50-day MA of 20.00, and above the 200-day MA of 18.77, indicating a bullish trend. The MACD of 0.61 indicates Positive momentum. The RSI at 62.67 is Neutral, neither overbought nor oversold. The STOCH value of 54.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLGT.

Fulgent Genetics Risk Analysis

Fulgent Genetics disclosed 80 risk factors in its most recent earnings report. Fulgent Genetics reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Fulgent Genetics Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLGT	63 Neutral	$672.79M	―	-4.54%	―	4.31%	69.57%
CSTL	59 Neutral	$669.80M	30.59	-2.15%	―	20.40%	-165.41%
GRAL	59 Neutral	$1.21B	―	-17.68%	―	22.37%	86.08%
MYGN	52 Neutral	$631.77M	―	-70.03%	―	3.83%	-137.31%
PSNL	52 Neutral	$451.37M	―	-60.26%	―	0.36%	22.13%
Sector *	51 Neutral	$7.92B	-0.43	-41.67%	2.21%	22.29%	-1.85%
LAB	48 Neutral	$492.77M	―	-22.40%	―	13.17%	64.50%

* Healthcare Sector Average

Performance Comparison

FLGT

Fulgent Genetics

21.95

0.54

2.52%

LAB

Standard BioTools

1.30

-0.64

-32.99%

MYGN

Myriad Genetics

6.61

-20.36

-75.49%

PSNL

Personalis

5.24

-0.13

-2.42%

CSTL

Castle Biosciences

23.56

-5.76

-19.65%

GRAL

GRAIL Inc

36.91

24.22

190.86%

Fulgent Genetics Corporate Events

Business Operations and StrategyFinancial Disclosures

Fulgent Genetics Reports Q2 2025 Financial Results

Neutral

Aug 1, 2025

On August 1, 2025, Fulgent Genetics announced its financial results for the second quarter of 2025, reporting a 16% year-over-year growth in core revenue to $81.7 million. Despite a GAAP loss of $19.0 million, the company raised its full-year core revenue guidance to $320 million, reflecting strong momentum and strategic progress in its laboratory services and therapeutic development businesses.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025