Fulgent Genetics, Inc. Segments Disclosure
Note 7. Reportable Segment and Geographic Information
The Company has two distinct reportable segments. The laboratory services operating segment offers technical laboratory and testing services and professional interpretation of laboratory results by licensed physicians who specialize in pathology and oncology. The therapeutic development operating segment is a pharmaceutical research and development entity.
The Company’s , or CODM. The CODM oversees the Company’s operations and evaluates financial data for its two operating segments separately to make resource allocation decisions. The financial information regularly provided to the CODM includes various performance metrics by reporting segment, such as gross profit, operating income or loss, income or loss before income taxes, net income or loss from consolidated operations, and net income or loss attributable to Fulgent, all presented in accordance with U.S. GAAP. Although multiple financial metrics are provided, the CODM primarily relies on adjusted (non-GAAP) operating income or loss to evaluate segment performance and allocate resources. These adjusted metrics exclude the impact of equity-based compensation expenses, goodwill impairment losses, amortization of intangible assets, acquisition-related costs, and certain professional liability expenses, if applicable as determined by management. The balance sheet is presented on a consolidated basis, as the CODM does not use asset or liability information, including fixed assets, to assess segment performance. As a result, segment asset and liability details are not disclosed.
The newly acquired entity, ANP, is considered part of the therapeutic development segment as this acquisition was strategically undertaken to gain full control over the patents and technologies utilized in the development of product candidates within the therapeutic development segment. Consequently, ANP’s operations are integrated into the therapeutic development segment, with shared resources and collaborative efforts, and the CODM evaluates ANP’s operations as part of the therapeutic development segment’s consolidated financial information. Therefore, ANP’s financial results are grouped within the therapeutic development segment’s reporting. ANP generates revenue from technologies licensed to pharmaceutical and biotech companies, as well as contract research organizations, or CROs.
There is no inter-segment allocation of interest expense and income taxes. There is no inter-segment revenue and operating income or loss. The Company did not allocate income tax by segment. Information regarding the Company’s operations and assets for its reporting segments as well as geographic information are as follows, all dollars are in thousands:
|
Laboratory Services |
|
|
Therapeutic Development |
|
|
Total |
|
|||
Fiscal year ended December 31, 2025 |
|
|
|
|
|
|
|
|
|||
Revenue |
$ |
322,224 |
|
|
$ |
447 |
|
|
$ |
322,671 |
|
Less: |
|
|
|
|
|
|
|
|
|||
Adjusted cost of revenue |
|
184,964 |
|
|
|
5 |
|
|
|
184,969 |
|
Adjusted research and development |
|
21,637 |
|
|
|
19,037 |
|
|
|
40,674 |
|
Adjusted selling and marketing |
|
40,350 |
|
|
|
5 |
|
|
|
40,355 |
|
Adjusted general and administrative |
|
82,485 |
|
|
|
1,247 |
|
|
|
83,732 |
|
Total adjusted operating loss |
$ |
(7,212 |
) |
|
$ |
(19,847 |
) |
|
$ |
(27,059 |
) |
|
Laboratory Services |
|
|
Therapeutic Development |
|
|
Total |
|
|||
Fiscal year ended December 31, 2024 |
|
|
|
|
|
|
|
|
|||
Revenue |
$ |
283,470 |
|
|
$ |
— |
|
|
$ |
283,470 |
|
Less: |
|
|
|
|
|
|
|
|
|||
Adjusted cost of revenue |
|
168,456 |
|
|
|
— |
|
|
|
168,456 |
|
Adjusted research and development |
|
18,213 |
|
|
|
15,632 |
|
|
|
33,845 |
|
Adjusted selling and marketing |
|
32,339 |
|
|
|
— |
|
|
|
32,339 |
|
Adjusted general and administrative |
|
69,374 |
|
|
|
928 |
|
|
|
70,302 |
|
Total adjusted operating loss |
$ |
(4,912 |
) |
|
$ |
(16,560 |
) |
|
$ |
(21,472 |
) |
|
Laboratory Services |
|
|
Therapeutic Development |
|
|
Total |
|
|||
Fiscal year ended December 31, 2023 |
|
|
|
|
|
|
|
|
|||
Revenue |
$ |
289,213 |
|
|
$ |
— |
|
|
$ |
289,213 |
|
Less: |
|
|
|
|
|
|
|
|
|||
Adjusted cost of revenue |
|
175,008 |
|
|
|
— |
|
|
|
175,008 |
|
Adjusted research and development |
|
19,577 |
|
|
|
6,990 |
|
|
|
26,567 |
|
Adjusted selling and marketing |
|
36,503 |
|
|
|
— |
|
|
|
36,503 |
|
Adjusted general and administrative |
|
74,982 |
|
|
|
681 |
|
|
|
75,663 |
|
Total adjusted operating loss |
$ |
(16,857 |
) |
|
$ |
(7,671 |
) |
|
$ |
(24,528 |
) |
|
Year Ended December 31, |
|
|||||||||
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Reconciliation of “adjusted operating loss” to “loss before income taxes” |
|
|
|
|
|
|
|
|
|||
Adjusted operating loss |
$ |
(27,059 |
) |
|
$ |
(21,472 |
) |
|
$ |
(24,528 |
) |
Less (add): |
|
|
|
|
|
|
|
|
|||
Equity-based compensation |
|
39,582 |
|
|
|
44,481 |
|
|
|
42,922 |
|
Professional liability expense |
|
14,500 |
|
|
|
— |
|
|
|
— |
|
Acquisition-related costs |
|
1,924 |
|
|
|
— |
|
|
|
— |
|
Amortization of intangible assets |
|
8,031 |
|
|
|
7,965 |
|
|
|
7,845 |
|
Goodwill impairment loss |
|
— |
|
|
|
— |
|
|
|
120,234 |
|
Interest income |
|
(30,919 |
) |
|
|
(31,304 |
) |
|
|
(21,612 |
) |
Interest expense |
|
75 |
|
|
|
(170 |
) |
|
|
488 |
|
Impairment loss |
|
9,926 |
|
|
|
10,073 |
|
|
|
— |
|
Other income, net |
|
(153 |
) |
|
|
(561 |
) |
|
|
(320 |
) |
Total loss before income taxes |
$ |
(70,025 |
) |
|
$ |
(51,956 |
) |
|
$ |
(174,085 |
) |
Significant items by segment excluded from the adjusted operating loss:
|
Year Ended December 31, |
|
|||||||||
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Equity-based compensation |
|
|
|
|
|
|
|
|
|||
Laboratory services |
$ |
31,567 |
|
|
$ |
36,951 |
|
|
$ |
35,649 |
|
Therapeutic development |
|
8,015 |
|
|
|
7,530 |
|
|
|
7,273 |
|
Total |
$ |
39,582 |
|
|
$ |
44,481 |
|
|
$ |
42,922 |
|
Revenue by segment:
|
Year Ended December 31, |
|
|||||||||
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Revenue |
|
|
|
|
|
|
|
|
|||
Laboratory services: |
|
|
|
|
|
|
|
|
|||
Precision diagnostics(1) |
$ |
190,472 |
|
|
$ |
167,745 |
|
|
$ |
131,990 |
|
Anatomic pathology |
|
106,442 |
|
|
|
97,080 |
|
|
|
104,655 |
|
BioPharma services |
|
25,310 |
|
|
|
16,338 |
|
|
|
25,416 |
|
COVID-19 |
|
— |
|
|
|
2,307 |
|
|
|
27,152 |
|
Total laboratory services |
|
322,224 |
|
|
|
283,470 |
|
|
|
289,213 |
|
Therapeutic development: |
|
|
|
|
|
|
|
|
|||
BioPharma services |
|
447 |
|
|
|
— |
|
|
|
— |
|
Total therapeutic development |
|
447 |
|
|
|
— |
|
|
|
— |
|
Total |
$ |
322,671 |
|
|
$ |
283,470 |
|
|
$ |
289,213 |
|
(1) Beginning in 2025, COVID-19 revenue is grouped with precision diagnostics, which was insignificant in 2025.
Depreciation and amortization by segment:
|
Year Ended December 31, |
|
|||||||||
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|||
Laboratory services |
$ |
23,552 |
|
|
$ |
24,240 |
|
|
$ |
25,453 |
|
Therapeutic development |
|
571 |
|
|
|
688 |
|
|
|
690 |
|
Total |
$ |
24,123 |
|
|
$ |
24,928 |
|
|
$ |
26,143 |
|
Interest income and expense by segment:
|
Year Ended December 31, |
|
|||||||||
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Interest income and expense |
|
|
|
|
|
|
|
|
|||
Laboratory services |
|
|
|
|
|
|
|
|
|||
Interest income |
$ |
30,919 |
|
|
$ |
31,304 |
|
|
$ |
21,612 |
|
Interest expense |
|
(75 |
) |
|
|
170 |
|
|
|
(488 |
) |
Therapeutic development |
|
|
|
|
|
|
|
|
|||
Interest income |
|
— |
|
|
|
— |
|
|
|
— |
|
Interest expense |
|
— |
|
|
|
— |
|
|
|
— |
|
Total |
$ |
30,844 |
|
|
$ |
31,474 |
|
|
$ |
21,124 |
|
Total assets by segment:
|
December 31, 2025 |
|
|
December 31, 2024 |
|
||
Assets |
|
|
|
|
|
||
Laboratory services |
$ |
1,096,379 |
|
|
$ |
1,131,117 |
|
Therapeutic development |
|
117,146 |
|
|
|
88,847 |
|
Total |
$ |
1,213,525 |
|
|
$ |
1,219,964 |
|
Geographic distribution of revenue:
|
Year Ended December 31, |
|
|||||||||
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Revenue |
|
|
|
|
|
|
|
|
|||
United States |
$ |
296,552 |
|
|
$ |
259,132 |
|
|
$ |
268,977 |
|
Foreign |
|
|
|
|
|
|
|
|
|||
China |
|
12,906 |
|
|
|
12,638 |
|
|
|
11,446 |
|
Other countries |
|
13,213 |
|
|
|
11,700 |
|
|
|
8,790 |
|
Total foreign |
|
26,119 |
|
|
|
24,338 |
|
|
|
20,236 |
|
Total |
$ |
322,671 |
|
|
$ |
283,470 |
|
|
$ |
289,213 |
|
Geographic distribution of property, plant and equipment, net:
|
December 31, 2025 |
|
|
December 31, 2024 |
|
||
Fixed assets |
|
|
|
|
|
||
United States |
$ |
106,250 |
|
|
$ |
98,992 |
|
Foreign |
|
|
|
|
|
||
China |
|
4,692 |
|
|
|
4,616 |
|
Other countries |
|
1,607 |
|
|
|
1,941 |
|
Total foreign |
|
6,299 |
|
|
|
6,557 |
|
Total |
$ |
112,549 |
|
|
$ |
105,549 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 8, 2021 | |
| 2019 | Mar 13, 2020 | |
| 2017 | Mar 20, 2018 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.