Bionano Genomics, Inc. Q2 FY2025 earnings call

Strategic Shift

• Since September 2024, shifted focus to routine OGM and VIA users, emphasizing digital pathology in cytogenetics and molecular pathology.

Q2 2025 Results

• Total revenue $6.7M, flowcells up 17%, non-GAAP gross margin 52%, non-GAAP operating expenses down 53%, net installed systems decrease by 1 to 378.

Key Milestones

• Released VIA 7.2, Solve 3.8.3, and updates to Stratys Compute; over 10,000 clinical research genomes published; AMA established second Category I CPT code for OGM in constitutional genetic disorders.

Total revenue for the second quarter was $6.7 million, a 13% decrease from Q2 2024 (excluding $700,000 from discontinued services, the decrease was 5%). Flowcell sales in Q2 2025 were 7,233, a 17% increase Y/Y. Non-GAAP gross margin was 52% in Q2 2025, significantly higher than 35% Y/Y. Non-GAAP operating expenses were $8.8 million in Q2 2025, a 53% reduction from Q2 2024. Installed 7 new optical genome mapping systems, returned 8, resulting in a net decrease of 1 to 378 installed systems (4% increase Y/Y). Consumables and software revenue increased to 73% of total product mix in Q2 2025 from 55% Y/Y, and 77% in the first half of 2025 from 57% Y/Y.

• Reiterated full-year revenue guidance of $26 million to $30 million.
• Expected Q3 revenues to be in the range of $6.7 million to $7.2 million.
• Raised new OGM installations in 2025 to 20 to 25 from the prior range of 15 to 20.

• Potential for systems returned by non-routine users, particularly those with research-oriented applications.
• Uncertainty regarding CPT code pricing for constitutional genetic disorders and its impact on reimbursement.
• Equity capital market constraints affecting potential strategic partnerships or acquisitions.

Q: How universal is the use of VIA software among OGM users?

A: VIA is installed in less than 1/3 of OGM systems overall, but adoption is higher among routine users; there's opportunity to expand utilization.

Q: Are you putting effort towards marketing VIA in non-OGM users?

A: Yes, VIA is used in non-OGM applications, and these customers can expand to become OGM users.

Q: What role does AI play in the VIA software?

A: AI accelerates variant analysis by leveraging databases and publications to improve results.

Q: What's the attrition rate among new systems placed?

A: Close to 0 for routine-use customers, though some systems have been returned.

Q: How do the AMA CPT codes differ and affect reimbursement?

A: Two codes for hematologic malignancies and constitutional genetic disorders; potential pricing differences, with draft pricing expected in September.

Q: How are you thinking about strategics or partnerships?

A: Bionano is on strategics' radar, with ongoing discussions; committed to digital pathology transformation strategy.