BNGO

• Strategic Framework Update

  • Starting in September 2024, management shifted focus from aggressive installed base expansion to driving profitable growth from existing routine users, with selective new customer acquisition prioritizing high-volume prospects.
  • Four core strategic pillars: support and sustain existing installed base, increase utilization via menu expansion and software adoption, build reimbursement and guideline support for OGM, and improve profitability through cost reduction and higher volumes.

• Leadership and Operational Updates

  • Dr. Alex Hastie, original OGM technology architect, returned as Chief Scientific Officer, underscoring the company's commitment to scientific leadership.
  • The search for a permanent CEO is ongoing, with Interim Chairman and CEO Al Luterer remaining in place during the process.
  • 397 OGM systems were installed worldwide as of Q2 2026, up 5% year-over-year, with flow cell utilization growing much faster than installed base, matching the company's strategic focus.
  • Positive market feedback on software/compute upgrades, which allow customers to double weekly cancer sample throughput without hardware changes; VIA software adoption is growing among non-OGM NGS and long read sequencing labs, creating a new entry point for broader BioNano adoption.
  • The ionic nucleic acid purification platform, on track for OGM interface launch in Q4 2026, is expected to drive incremental consumables revenue and support higher-margin recurring revenue.

• Reimbursement and Clinical Evidence Progress

  • Two new Category 1 CPT codes for OGM (in hematologic malignancies and constitutional genetic disorders) that launched in early 2026 have established critical reimbursement infrastructure that is now driving real clinical adoption and consumables growth.
  • The clinical evidence base for OGM expanded significantly in Q2: a major T-ALL study found OGM detected 97.8% of genomic abnormalities (vs 55% for conventional karyotyping) and added clinically relevant information in 70% of cases; 13 new studies expanded OGM's evidence base into reproductive and prenatal health; OGM-related studies at ESHG 2026 increased 67% year-over-year, spanning 17 countries.

• Financial Milestones

  • Gross margin reached 53% in Q2 2026, the highest quarterly level in company history, up from 20% in 2023.
  • Adjusted operating expenses were $8.7 million in Q2 2026, flat year-over-year.
  • All outstanding senior secured convertible debt was fully retired in Q2 2026, simplifying the company's balance sheet.

• Full year 2026 revenue guidance was revised to $31 million to $33 million, with the lower end of the range raised from prior guidance; this represents 9% to 16% year-over-year growth over 2025.
• Q3 2026 revenue guidance was initiated at $8.2 million to $8.6 million, representing 11% to 16% year-over-year growth over Q3 2025.
• Management expects adjusted EBITDA breakeven to be achieved over time as revenue scales and the business mix shifts to higher-margin consumables and software.

Total Q2 2026 revenue was $8.2 million, an increase of 21% year-over-year. 1. Consumables: Q2 2026 revenue was $4.3 million, up 30% year-over-year, contributing 52.4% of total revenue. 9,219 flow cells were sold, a 27% year-over-year increase; flow cell sales to existing customers grew 24% year-over-year after excluding units tied to new system sales. 2. Software: Q2 2026 revenue was $1.4 million, down 16% year-over-year, contributing 17.1% of total revenue. 3. Other (instruments and services): Q2 2026 revenue was $2.5 million, up 38% year-over-year, contributing 30.5% of total revenue. International revenue represented a majority of total revenue for the quarter, driven by broadening clinical adoption at leading European institutions.

• Flow cell manufacturing capacity is currently constrained, and demand continues to outstrip supply, resulting in a backlog that limits near-term revenue upside.
• The company's cash runway is only projected to extend into at least the first quarter of 2027, creating near-term financing uncertainty.
• Reimbursement progress for constitutional genetic disorders has not advanced to match the level achieved for hematologic malignancies, limiting adoption in that segment.
• Large pending orders near the end of Q3 2026 carry closure risk, leading to conservative near-term guidance.

Q: Why did management only raise the lower bound of 2026 full-year revenue guidance, not the upper bound? / A: The cap on the upper bound remains in place due to ongoing manufacturing constraints that have created a backlog of unmet demand. Management does not want to raise the top-end guidance until it confirms manufacturing capacity can catch up to existing demand, with backlog expected to improve by the end of Q4 2026.

Q: Is the conservative sequential Q3 guidance, which is roughly flat with Q2 2026, due to seasonality or manufacturing constraints? / A: The conservative guidance stems from uncertainty around several large orders scheduled near the end of Q3. Management chose to take a conservative approach and did not count these orders in Q3 guidance due to risk they will close in Q4 instead.

Q: Is Q2 2026 growth mostly from increased utilization at existing clients or new client acquisition? Will this trend continue? / A: Management confirmed the vast majority of Q2 2026 growth comes from higher utilization at existing clinical customers, and expects this same dynamic to drive growth in coming quarters as unmet demand is fulfilled.

Q: Why has flow cell unit growth outpaced consumables revenue growth sequentially between Q1 and Q2 2026? / A: The mismatch is due to the company's reagent rental model, where a portion of revenue from flow cells sold under rental agreements is deferred and amortized over the life of the lease, rather than recognized all at once in the quarter of sale.