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Bionano Genomics, Inc. (BNGO)·Q3 2025 Earnings Summary
Executive Summary
- Q3 2025 revenue was $7.367M, up 21% year over year, and above both prior quarter guidance ($6.7–$7.2M) and Wall Street consensus ($6.906M*) . EPS was -$1.59 versus consensus of -$2.08*, a beat driven by higher utilization and disciplined OpEx .
- Gross margin stabilized at 46% GAAP and non-GAAP, a material improvement versus the prior year’s (139)% GAAP and 26% non-GAAP, aided by cost reductions and manufacturing efficiencies .
- Operational KPIs strengthened: record 8,390 flowcells sold (+7% YoY) and installed base reached 384 systems (+4% YoY), with consumables and software mix at 72% in Q3 (strategy pivot toward routine users) .
- Guidance: full-year 2025 revenue reiterated at $26–$30M; Q4 2025 revenue guided to $7.5–$7.9M; new OGM installations now expected to surpass 25 (raised from 20–25) . Management noted cash runway extended into Q3 2026 following a $10M September offering .
Consensus values marked with *; Values retrieved from S&P Global.
What Went Well and What Went Wrong
What Went Well
- Record consumables throughput: “We sold an all-time record 8,390 flow cells in the third quarter of 2025,” reflecting increased routine user utilization (+7% YoY) .
- Margin expansion and cost control: non-GAAP gross margin reached 46% vs 26% last year; non-GAAP OpEx fell 40% YoY to $9.7M, signaling improved profitability profile .
- Strategic validation: “Focusing on these routine users is restoring growth in our core business,” with consumables + software sales up 15% YoY and mix at 72% of product revenue, underscoring a sustainable revenue base .
What Went Wrong
- Persistent losses and financing needs: net loss of -$8.503M and disclosure of going concern and financing risks in forward-looking statements highlight ongoing capital dependence .
- Instrument revenue remains modest: instrument revenue of $1.6M (vs $1.4M LY) as the company shifts away from aggressively expanding the installed base, limiting near-term top-line leverage from placements .
- International ramp is early-stage: only one system installed in Japan; management expects time to build local data and adoption in constitutional disorders and hematologic malignancies .
Financial Results
Core P&L and Margins
EPS vs Estimates
Consensus values marked with *; Values retrieved from S&P Global.
Revenue vs Estimates
Consensus values marked with *; Values retrieved from S&P Global.
Segment / Revenue Mix
KPIs
Guidance Changes
Earnings Call Themes & Trends
Management Commentary
- “We believe our performance in the third quarter and year to date validates that focusing on these routine users is restoring growth in our core business.”
- “Total revenue for the third quarter of 2025 was $7.4 million… We sold an all-time record 8,390 flow cells.”
- “Non-GAAP gross margin for the third quarter of 2025 was 46%… Non-GAAP operating expense was $9.7 million.”
- “CMS posted the preliminary payment determination… crosswalk to a previously established OGM code priced at $1,263.53… higher than microarray codes.”
- “We are reiterating our full year 2025 revenue guidance of $26–30 million. We expect the fourth quarter of 2025 revenues to be in the range of $7.5–$7.9 million.”
Q&A Highlights
- Utilization ceiling: average routine users run ~4 samples/week; high-end ~40; management’s target is “low 20s” per week across routine users (material driver for consumables/software growth) .
- Japan market: one installed system at a service provider; interest shifting from non-human to clinical indications; adoption expected to take time with local data generation; potential acceleration via pharma cell and gene therapy work .
- OpEx outlook: management intends to keep OpEx “as flat as we possibly can,” investing only where justified .
Estimates Context
- Q3 2025 revenue beat consensus by
$0.46M (+6.7%): Actual $7.367M vs consensus $6.906M* . - Q3 2025 EPS beat by ~$0.48: Actual -$1.59 vs consensus -$2.08* .
- With revenue and EPS beats, and Q4 revenue guide above Q3, estimates for consumables/software growth and gross margin trajectory may drift higher given utilization trends and supportive reimbursement pricing signals .
Consensus values marked with *; Values retrieved from S&P Global.
Key Takeaways for Investors
- The pivot to routine users is working: record flowcell volumes and stronger consumables/software mix underpin improving gross margins and more predictable revenue streams .
- Reimbursement tailwinds: CMS’s preliminary pricing ($1,263.53) for the constitutional OGM CPT code (and the hematologic malignancy code) should catalyze lab adoption and menu expansion over 2026+ .
- Near-term catalysts: Q4 revenue guidance ($7.5–$7.9M) implies sequential growth; watch for full commercial release of VIA/Solve upgrades to drive throughput and interpretation speed, potentially lifting utilization .
- Risk monitor: continued net losses and going concern language necessitate close tracking of capital plans and cash burn; September raise extended runway into Q3 2026 but financing dependence persists .
- International expansion is a slow build: Japan’s early stage adoption suggests a measured global ramp; pharma interest could accelerate certain use cases .
- Stock narrative: beats vs consensus and guidance, margin stabilization, and reimbursement progress are positive; however, investors must balance these against capital needs and execution on software commercialization and routine user utilization targets .