Bionano Genomics (BNGO -0.93%), a provider of genome mapping tools and software, released its financial results for Q2 2025 on August 14, 2025. GAAP revenue was $6.73 million, slightly ahead of analyst expectations of $6.56 million (GAAP). While this revenue figure marked a 13% decline from the same quarter last year (GAAP), gross margin (GAAP) improved significantly to 52%. Operating expenses (GAAP) were sharply lower year over year in Q2 2025, contributing to a narrower net loss. Overall, the period highlighted continued progress in cost control, stronger recurring revenue from consumables and software, and evidence that a shift in commercial strategy is starting to pay off, even as total revenue moderated.
Understanding Bionano Genomics' Business and Key Focus Areas
Bionano Genomics is a life sciences company that specializes in optical genome mapping (OGM) technology, which is designed to identify large-scale structural variations in DNA that are difficult to detect with conventional gene sequencing. Its core systems, such as Saphyr and Stratys, help researchers and clinicians analyze genetic disorders, blood cancers, and rare diseases by providing a clearer and more comprehensive view of the genome.
The company’s business has increasingly centered on driving adoption among high-volume, routine users by integrating powerful software tools like VIA and Solve, alongside OGM instruments and consumables. Key factors for growth are expanding the recurring consumables and software revenue streams, supporting clinical research with robust publications, and securing progress toward regulatory reimbursement for its technology.
Second Quarter Highlights and Key Developments
The quarter saw GAAP revenue of $6.73 million, a 13% year-over-year decrease (GAAP), primarily due to a shift away from less predictable clinical services and lower instrument placements. Management noted that consumables and software revenues, which form the bulk of recurring sales, rose 16% year-over-year. Adjusted revenue for recurring categories—excluding one-time and discontinued items—grew 11% compared to Q2 2024, indicating strength among regular users despite headline declines.
Gross margin (non-GAAP) improved substantially, reaching 52% in Q2 2025, up from 35% in Q2 2024. GAAP and non-GAAP gross margin were both 52% in Q2 2025, reflecting a sales mix increasingly weighted toward higher-margin consumables and software, as well as internal cost reductions. Operating expenses on a non-GAAP basis fell to $8.83 million, a drop of 53% in Q2 2025. The reduction was primarily achieved through lower research and development and selling, general, and administrative expenses, indicating the effectiveness of cost-cutting measures undertaken in recent quarters, as reflected by a 66% year-over-year decrease in GAAP operating expense in Q1 2025.
Bionano’s OGM technology continued to see solid adoption among its core user base. Flowcell (consumable) sales climbed 17% in Q2 2025, with 7,233 units sold compared to 6,165 in Q2 2024. The installed system base rose to 378, a 4.1% increase from the prior year, reflecting stable demand within key customer segments. The company also continued to emphasize its platform-agnostic VIA software, which is engineered to simplify the analysis of OGM, microarray, and next-generation sequencing data, further driving throughput among high-usage accounts.
Regulatory momentum continued as the American Medical Association established a second Category I Current Procedural Terminology (CPT) code for OGM in genome-wide cytogenomic analysis. This is a significant precursor for gaining insurance reimbursement in clinical applications. The period also saw record academic engagement, with 119 peer-reviewed publications and strong representation at major genomic conferences, signaling ongoing validation and momentum in research markets.
Management Outlook and Areas to Watch
Leadership reaffirmed its full-year 2025 revenue guideline at $26.0 million to $30.0 million, with Q3 2025 revenue expected in the $6.7 million to $7.2 million range, a sign of stability in recurring revenue streams. The installed base targets for OGM systems were increased to 20–25 for full year 2025, up from prior guidance, reflecting management’s view of a steady ramp in demand from core users. Gross margins are forecast to remain in the low-to-mid-50% range for the coming quarters, while the cash runway is projected to extend into Q1 2026, assuming ongoing expense controls and stable market conditions.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
