Bionano Genomics, Inc. Q4 FY2025 earnings call

In September 2024, started a strategic shift focusing on profitable growth from high volume users and selective customer acquisition with four strategic pillars. Supported and sustained installed base of routine OGM and VIA software users. Increased utilization of optical genome mapping by routine users. Built support for optical genome mapping reimbursement and inclusion into medical society guidelines. Improved profitability and scalability through lower costs, higher volumes, etc. 2025 saw significant progress in integrating VIA into customer workflows, upgrading software and compute platforms. OGM publications surged in 2025, reimbursement improved with new CPT codes established. Hosted BioNano Symposium 2026 with over 1,250 registrants from 73 countries, showcasing growth opportunities for OGM.

Fourth quarter 2025 revenue was $8 million, down 3% from $8.2 million in Q4 2024 but at the high end of the preannounced range. Full year 2025 revenue was $28.5 million, down 7% from $30.8 million in 2024. After adjusting for $1.7 million in discontinued clinical services in 2024, core revenue was down 2%. Sold 30,171 flow cells in 2025, down just 0.4% year over year. Fourth quarter non-GAAP gross margin was 43%, up from 42% a year ago. Full year non-GAAP gross margin was 47%, up from 35% in 2024, an improvement of 1,200 basis points. Fourth quarter 2025 non-GAAP operating expense was $9.7 million, down 9% year over year. Full year non-GAAP operating expense was $36.6 million, down 47% from $68.9 million in 2024. Installed 9 OGM systems in Q4 and 32 for full year 2025, exceeding original guidance.

Initiated 2026 revenue guidance of $30 to $33 million, representing 5 to 16 percent growth over 2025. First quarter 2026 revenue guidance is $6.5 to $6.7 million, representing flat to 3 percent growth over 2025. Expect revenues to grow throughout the year consistent with business seasonality.

Certain statements are forward-looking and actual results may differ due to several factors and risks, some identified in press release and SEC filings, but specific risks not detailed in depth in the transcript.

Q: Could you give any color on what your expectations regarding how many new OGM systems could be installed during 2026?

A: Think that we have expectations which are comparable to what we shipped last year. We're not really providing any guidance on the number because we significantly actually overperformed guidance last year. And so we want to just stay flexible about the new systems that are being installed. But it's reasonable that we would have a comparable year this year to what we did last year.

Q: The reported number of nanochannels array flow cells sold in 2025 is slightly below the number in 2024 while using storage. 32 new OGM systems and brought back 16 during the year. So how should we look at the nano, I mean, how should we expect the number of nanochannel energy flow cells to be sold this year? Do you expect that to be relatively flat as well?

A: I would say that, you know, when you look at the revenue growth that we're forecasting, that revenue growth is going to be driven by new systems, of course, and consumables at existing customers. And so I think I would expect the consumables volume range to likely track with the revenue growth, which is a wide range. But that's our expectation. And we were flat year over year on total consumables volume. When we look at what routine users did, we do see that routine users grew 2025 over 2024. And keep in mind that we were constrained with supply at the end of the year, it's nothing that's particularly concerning. It's a supply constraint that will, I think, work its way out over the course of the next couple of quarters. But if we weren't up against that supply constraint, we would have had additional units growth.

Q: The guidance for 2026, you provided $30 to $33 million, which translates to approximately 5% to 16% top-line growth. Do you need to – I mean, how many nano-channel or new LGM systems you need to sell to achieve that level of growth? Is that – Is there any catalyst that you expect to occur in 2026 in order to achieve that level of top line growth?

A: I think that so, you know, again, we're not going to, you know, put a number out there of systems. And I think, you know, really the reason is that we want to keep the focus on the productivity of the routine users. And, you know, we'll be updating on some of the dynamics of that group over the year, right? So if you look at total number of customers at the end of the year, 321, total systems installed, 387, 32 systems shipped in the year. It's really about these 130 or so routine use customers, 60 of which have validated an OGM protocol and roughly 55 are intending to do that at some point in the future. So how can we take that 55 and, you know, convert them over to the validated group? And then how can we expand revenues amongst the validated group? But, you know, that's where we expect the growth to come from. And, you know, as long as we kind of repeat on a year-over-year basis some of the same dynamics, we'll hit these numbers. From a catalyst perspective, a big catalyst is the increase in the price determination for the uh hematologic malignancy cpt code eight one one nine five forty seven percent increase you know twelve hundred dollars to you know eighteen hundred dollars you know that that is a big driver so that becomes a became effective january 1st 2026 and so you know we we we have seen the positive effects just of the originally priced code, and we expect this higher price to even accelerate adoption and utilization more. That's a major catalyst.