Bionano Genomics, Inc. Q1 FY2026 earnings call

Leadership Transition

• Interim CEO (and existing Chairman) Al Luterer stepped into the role following the departure of former CEO Eric, who will remain in an advisory capacity to support a seamless transition
• The board will conduct a search for a permanent long-term CEO, with the core strategic goal of transitioning BioNano from an R&D-focused company to a commercially focused organization driving broad product adoption
• The interim CEO's top near-term priority is maintaining business continuity with no disruption for customers and shareholders

Core Strategic Framework

BioNano has focused its strategy since September 2024 on profitable growth with existing routine users, paired with selective new customer acquisition, built on four pillars:

1. Support existing installed base of OGM and VIA software users: Flow cell production constraints that entered Q1 2026 have eased, with further production improvements expected for the remainder of 2026
2. Increase OGM utilization by routine users: Recent software and compute upgrades allow customers to double weekly cancer sample throughput without hardware changes; VIA software is the gold standard for CNV analysis on microarrays, with growing adoption among non-OGM NGS and long-read sequencing labs, creating an entry point for broader BioNano adoption; development of the ionic system for high-purity scaled DNA/RNA extraction for OGM and NGS workflows continues
3. Build reimbursement and guideline adoption infrastructure: Two new Category 1 CPT codes for OGM took effect in Q1 2026: the existing code for OGM in hematologic malignancies received a 47% payment increase to $1,853.22, and a new code for constitutional genetic disorders set at $1,263.53 covers OGM's primary application areas, reduces adoption barriers, and improves reimbursement economics for clinical labs. Publication momentum continued in Q1: 28 rare disease OGM publications (up 56% YoY), with 1,991 published genomes (up 158% YoY) from global institutions. Key landmark publications and events include a large Johns Hopkins/MD Anderson multiple myeloma study that found OGM outperforms traditional methods and recommends workflow updates including OGM; a study validating OGM as a quality control tool for gene editing therapy development; 12 presented studies at ACMG 2026 (double 2025's count); and the 2026 BioNano Symposium with 1,250 registrants from 73 countries, highlighting that OGM is moving from early adoption to large-scale use
4. Improve profitability and scalability: Adjusted gross margin increased from 20% in 2023 to 49% in Q1 2026, driven by operational efficiencies and a shift to higher-margin recurring revenue. Disciplined cost reduction of operating expenses remains an ongoing priority. As revenue scales, the company expects to progress toward cash flow breakeven

Balance Sheet Updates

• The company ended Q1 2026 with $24.7 million in cash, cash equivalents, and available-for-sale securities, giving a cash runway extending into 2027
• The company expects to fully retire all outstanding senior secured convertible debt in May 2026, simplifying its balance sheet

Total company revenue for Q1 2026 was $6.7 million, an increase of 4% year-over-year. There are three product segments: 1. Consumables: Revenue was $3.9 million, up 20% year-over-year, representing 58.2% of total Q1 2026 revenue. Flow cell unit sales hit a Q1 record of 8,178 units, up 17% year-over-year, with flow cell sales to existing customers up 21% year-over-year after adjusting for new system bundled sales. 2. Software: Revenue was $1.2 million, down 40% year-over-year, representing 17.9% of total Q1 2026 revenue. The year-over-year decline is due to a large one-time software sale in the prior year quarter that covers customer needs through 2026. 3. Other: Revenue was $1.6 million, up 36% year-over-year, representing 23.9% of total Q1 2026 revenue. Overall, the business mix is shifting to a higher proportion of recurring revenue, which improves business predictability.

• Total full year 2026 revenue guidance is reaffirmed at $30 million to $33 million, representing 5% to 16% year-over-year growth over 2025
• Q2 2026 revenue guidance is initiated at $7.5 million to $7.8 million, representing 12% to 16% year-over-year growth over Q2 2025
• Q1 2026 revenue came in at the high end of the previously guided range of $6.5 million to $6.7 million
• Management expects revenue growth to accelerate quarter-over-quarter throughout 2026
• Management does not provide guidance for achievement of cash flow breakeven by the end of 2027, but is taking steps to reduce cash burn as much as possible by Q4 2027

• Forward-looking statements are inherently uncertain, and actual results may differ materially from projections due to unidentified and identified risk factors disclosed in SEC filings and the Q1 2026 earnings press release
• The company entered Q1 2026 with flow cell production supply constraints, which have only recently begun to ease
• Cash runway extends into 2027, but the company has not committed to achieving cash flow breakeven by that point, indicating ongoing cash burn risk
• The company is in a leadership transition period, creating near-term uncertainty while a permanent CEO is recruited

Q: Does management expect BioNano to reach operating cash flow breakeven by the end of 2026 or in 2027? / A: Mark Adamchak confirmed the company does not expect to hit cash flow breakeven by the end of 2026. The team is working to reduce cash burn as much as possible by Q4 2027, but does not provide formal guidance confirming the milestone will be achieved by that date. This exchange clarifies the timeline for profitability expectations.

Q: What key catalysts can drive top-line growth, better gross margins, and further operating expense reduction in 2026 and 2027? / A: Al Luterer highlighted the new and updated CPT reimbursement codes from Q1 2026 as the first major catalyst, which is already driving stronger demand from the existing installed base. The upcoming full retirement of outstanding convertible debt is the second major catalyst, improving the company's balance sheet and operational independence. Additional high-impact publications that build on the landmark multiple myeloma study are expected later this year, which will further drive adoption. Luterer also noted a key strategic transition: users, not just BioNano executives, are now leading adoption and standard-setting for OGM, which signals a mature market shift.