Bionano Genomics, Inc. (BNGO)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 revenue was $6.457M, down 26% YoY but ahead of prior guidance ($6.2–$6.3M) and above S&P Global consensus ($6.25M); GAAP and non-GAAP gross margin improved to 46% from 32–34% a year ago .
• EPS beat Street: actual diluted EPS of -$1.15 vs S&P Global consensus of -$3.02, reflecting sharply lower OpEx and gross margin expansion; net loss reduced to -$3.10M from -$20.13M in Q4 2024 and -$31.42M in Q1 2024 *.
• Management lowered FY 2025 revenue outlook to $26–$30M (from $29–$32M) and guided Q2 revenue to $6.3–$6.8M, citing global trade/tariff uncertainty slowing certain deals; reiterated 15–20 system installs and cash runway into Q1 2026 .
• Strategic focus on “routine users” continues: 82% of Q1 flowcells sold to routine sites; flowcells sold to existing customer cohort up 1% YoY after removing new customers; installed base reached 379 (+9% YoY) .
• Near-term stock catalysts: reimbursement tailwind (Category I CPT code), margin stability in mid-40% range, and high-profile publications (MD Anderson, International Consortium) validating OGM’s clinical utility in heme malignancies .

What Went Well and What Went Wrong

What Went Well

• Gross margin improved materially to 46% (GAAP and non-GAAP), driven by cost reductions, supplier input cost improvements, and yields; management expects mid-40s to be stable near term (“we’ll probably hang out in this general vicinity”) .
• Cost discipline: GAAP OpEx fell 66% YoY to $11.4M; non-GAAP OpEx fell 65% YoY to $8.5M, supporting a significantly narrower net loss and extended cash runway into Q1 2026 .
• Strategic validation via publications: MD Anderson’s largest OGM heme study showed Tier 1 variants missed by standard tests in 15% and additional Tier 1–3 variants missed in 58% of cases; International Consortium issued recommendations to integrate OGM in standard-of-care workflows .

Selected quotes:

• “We’ll probably hang out in this general vicinity [of mid-40s gross margin] for the remainder of the year… we believe what we’re seeing now is stable.”
• “We believe our cash runway extends into the first quarter of 2026.”
• “International Consortium… published the first recommendations for integration of OGM into the standard of care in hematologic malignancies.”

What Went Wrong

• Top-line pressure: Q1 revenue down 26% YoY, reflecting discontinuation of clinical services and lower instrument sales ($0.7M in Q1 2025 vs $1.6M in Q1 2024) .
• Flowcells sold declined 15% YoY to 6,994, though routine cohort held flat-to-up on an adjusted basis; consumables momentum is reliant on “routine user” expansion and menu adoption .
• FY guide lowered ($26–$30M vs prior $29–$32M) due to global trade/tariff uncertainty slowing certain international deals; adds risk to near-term growth trajectory despite margin progress .

Financial Results

Note: EPS marked with an asterisk indicates values retrieved from S&P Global.

Segment breakdown (Q1 2025):

KPIs:

Comparison vs S&P Global consensus (Q1 2025):

Note: Values marked with an asterisk retrieved from S&P Global.

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• Strategic focus: “This strategy has 4 pillars… support and sustain the installed base of routine OGM and VIA users… build support needed for OGM reimbursement… improved profitability and scalability with lower costs, higher volumes and improvements in gross profit.”
• Margin outlook: “We’ll probably hang out in this general vicinity [mid-40% GM] for the remainder of the year… we believe what we’re seeing now is stable.”
• Routine users: “Flowcells sold to this existing customer group increased… by 1%… these routine users are purchasing about 80%–more than 80% of the total number of flowcells” .
• Tariffs/macro: “We added some conservatism into our full year guide to account for [import tariffs]… some deals slow down” .
• Cash runway: “We believe our cash runway extends into the first quarter of 2026.” .

Q&A Highlights

• Reimbursement tailwind: Category I CPT code for OGM in heme malignancies reduces adoption barriers; management expects it to support utilization .
• Placements/attrition: Target ~5 installs/quarter; some attrition at non-routine labs as focus shifts away from basic research; no meaningful impact expected on consumables .
• VIA-led utilization: Emphasis on VIA AI automation, menu expansion (e.g., AML, multiple myeloma), and workflow proficiency to increase capacity and sample throughput .
• Macro/tariff exposure: Input cost exposure limited near term given inventory; primary impact is customers’ import tariffs causing timing delays .
• Margin cadence: Gross margin mid-40s viewed as sustainable near term, with longer-term upside as cost structure further evolves .

Estimates Context

• Q1 2025: Revenue beat Street ($6.457M actual vs $6.250M consensus); EPS beat (actual diluted EPS -$1.15 vs -$3.02 consensus). Operating leverage from lower OpEx and higher gross margin likely drove the EPS outperformance *.
• Forward implications: FY revenue guidance lowered to $26–$30M may prompt modest top-line estimate cuts; however, mid-40% gross margin stability and OpEx discipline could support upward revisions to EPS and cash burn forecasts .
  Note: Values marked with an asterisk retrieved from S&P Global.

Key Takeaways for Investors

• Near-term setup: Revenue and EPS both beat consensus, but FY guide lower on macro/tariffs; expect mixed revisions (EPS up, revenue down modestly) and focus on Q2 delivery ($6.3–$6.8M) .
• Margin durability: Gross margin at 46% appears sustainable near term; additional COGS/overhead initiatives and VIA-driven utilization offer medium-term upside .
• Strategy execution: Concentration on routine users (82% of flowcells) stabilizes consumables base; menu expansion and VIA adoption are key levers to grow per-site throughput .
• Reimbursement catalyst: Category I CPT code for heme OGM should lower adoption friction and support consumables growth in U.S. academic/clinical research settings .
• Capital discipline: Cash runway into Q1 2026 supported by cost actions and financing; placements controlled (~5/quarter) to prioritize profitable utilization .
• Publications as validation: High-profile studies (MD Anderson; International Consortium) strengthen the clinical narrative—an important driver for labs to onboard and expand OGM .
• Watch items: Global trade/tariffs timing risk, execution on Q2 guide, VIA adoption pacing, and continued margin progress will drive stock narrative in the coming quarter .

Additional Primary Source References (Q1 2025 Press Releases in the Quarter)

• Reverse stock split effective Jan 24, 2025, regaining Nasdaq compliance by Feb 10, 2025 .
• Registered direct offering gross proceeds ~$10M closed Jan 6, 2025 .
• Case studies/publications expanding OGM applications: PGT-SR use (live birth outcome), neural tube defects cohort analysis, and AML chromoanagenesis detection .