Genetic Analysis AS (“Genetic Analysis” or the “Company”) published on May 28th the Company’s Q1-report for 2026.
The following are some key points that we have chosen to highlight in connection with the report:
- Strong sales growth of 60% driven by reagent kit sales
- Improved European momentum complementing continued US growth
- First commercial order from China partner
- Gross margin continues to be affected by US import duties
- High product development pace expected to support further growth
Sales Growth of 60.2%, Driven by Continued Strong Reagent Kit Sales
The sales revenue amounted to NOK 3.8m (2.4) in Q1-26, corresponding to a growth of 60.2%, where sales were negatively affected by a weaker USD/NOK, meaning underlying volume growth was even stronger. The growth was primarily driven by reagent kit sales, which grew 68.3% to NOK 3.5m (2.1), reflecting strong development of the Company’s core business of recurring reagent kit sales with high gross margin. Service revenues were stable at NOK 0.3m. With USD/NOK remaining weak so far in Q2-26, currency headwinds are expected to continue affecting reported revenues going forward.
Part of the strong growth is assumed to be attributable to the GA-map® MHI GutHealth test, which was not commercially available during Q1-25, providing an incremental sales contribution in the current quarter. The strong growth confirms the relevance of Genetic Analysis’ standardized GA-map® platform, validating the Company’s positioning as the rapidly growing microbiome market shifts towards a more diagnostic approach, where Genetic Analysis is well positioned as a first mover within microbiome diagnostics.
Improved Momentum in Europe Complementing Continued US Growth
Genetic Analysis delivered strong growth during Q1-26 in both Europe and the US, but it is worth highlighting that European sales nearly doubled, increasing 99% to NOK 1.7m (0.9), while US sales grew 38% to NOK 2.1m (1.5), where the latter was negatively affected by a weaker USD/NOK. While quarterly fluctuations are to be expected and the comparison quarter was weak, the improved momentum in Europe is viewed positively by Analyst Group as a potential growth driver going forward, complementing the US, which remains the Company’s largest market. Analyst Group views the European performance as an early sign that the underlying market drivers, including FDA approvals of microbiome-based therapeutics, IVDR-driven demand for standardised and CE-IVD-validated solutions, and a broader shift towards a more diagnostic approach in the microbiome market, are starting to translate into reported sales numbers.
First Commercial Order from China Marks Strategic Milestone
After the end of the quarter, Genetic Analysis secured its first commercial order from the Chinese partner Thalys Medical Technology Group. The order relates to the GA-map® Consumer Health test for China, a microbiome test customized for the Chinese D2C market, launched in April 2025. While the order volume is moderate and the commercial ramp-up has taken longer than initially anticipated, Analyst Group views the first commercial order positively as it marks an important strategic milestone in establishing GA-map® on the Chinese market, which constitutes a significant long-term growth opportunity given the size of the Chinese microbiome diagnostics market.
Continued High Pace of Product Development
Genetic Analysis has maintained a high pace of product development and product launches over the past year. The GA-map® MHI GutHealth test, co-developed with Ferring Pharmaceuticals, was launched as a Research Use Only (RUO) product during H2-25 and provides clinically actionable insights into antibiotic-induced microbiome imbalances, initially targeting recurrent Clostridioides difficile infection (rCDI) patients. In March 2026, Genetic Analysis launched the GA-map® Dysbiosis Test AInsight, an AI-assisted interpretation platform expected to support broader clinical adoption of the GA-map® Dysbiosis Test. Additionally, the GA-map® IBD Precision Dx test, addressing a clear unmet clinical need in inflammatory bowel disease (IBD), is currently in the validation phase, with the RuO product planned for launch during 2026. Together with the Company’s core product, the GA-map® Dysbiosis Test, the expanding product portfolio is expected to be a key growth driver going forward, supporting increasing adoption across key markets in Europe, the US, and China, and is expected to drive accelerating recurring revenues from reagent kit sales through partner laboratories.
Launch of GA-map® Dysbiosis Test AInsight
During Q1-26, Genetic Analysis launched GA-map® Dysbiosis Test AInsight, an AI-assisted interpretation platform designed to translate microbiome analysis results into structured and clinically relevant insights. The platform utilizes an AI language model restricted exclusively to Genetic Analysis’ curated Bacteria Compendium, supporting automated generation of structured interpretation reports and enabling scalable report generation for laboratory workflows. Analyst Group views the launch positively, as the platform is expected to address one of the key practical barriers to broader clinical adoption of the GA-map® Dysbiosis Test, namely the complexity of interpreting microbiome results in routine healthcare settings, where the test serves as Genetic Analysis’ flagship product and primary revenue driver. Analyst Group has previously emphasized that a market shift toward routine diagnostic use of microbiome testing is expected to be gradual, as adoption requires time and the interpretation of complex microbial profiles has presented a practical challenge for healthcare professionals unfamiliar with microbiome data.
By contextualizing deviations in bacterial abundance using curated scientific evidence and automating report generation, the platform is expected to lower the threshold for clinical implementation of the GA-map® Dysbiosis Test, strengthening the commercial proposition for new laboratories to adopt the GA-map® platform and, in turn, driving recurring demand for high-margin reagent kits. While AInsight is not expected to have a material near-term financial impact, the launch is assessed as a strategic enabler over the medium to long term.
Gross Margin Affected by Import Tariffs
The gross margin during Q1-26 amounted to 73.2% (83.6%), which was negatively affected by US import duties and a weaker USD. COGS in Q1-26 included customs duties of NOK 0.3m, with no corresponding charge in Q1-25. As long as the current tariff situation and geographical sales mix persist, Analyst Group expects these duties to continue exerting pressure on the Company’s margins, reducing profitability by approximately 15 percentage points on US sales and around 10 percentage points overall.
Continued Cost Discipline, with Stronger Profitability Expected in Seasonally Stronger Quarters
Operating expenses in Q1-26 amounted to NOK 7.8m (8.1), corresponding to a decrease of 3.6%, reflecting continued cost discipline and capitalisation of late-stage development costs related to AInsight and IBD Precision Dx, partly offset by higher other expenses. Employee benefits expenses decreased 13.1% to NOK 4.1m (4.7). The EBITDA-result amounted to NOK -3.2m (-3.1), broadly in line with last year despite strong revenue growth and lower operating costs, mainly due to the lower gross margin from tariffs and currency effects, as well as lower other income of NOK 0.5m (1.6) driven by reduced R&D grants. Analyst Group expects improved profitability going forward, as Q1 is a seasonally weaker quarter, why stronger profitability is expected in seasonally stronger quarters with higher sales volumes, as well as on a full-year basis.
Stable Financial Position
The cash balance amounted to NOK 20.0m at the end of Q1-26, compared to NOK 24.0m at the end of Q4-25. Cash flow from operations in Q1-26 amounted to NOK -5.0m, compared to NOK -1.6m in Q1-25, where the difference mainly is explained by changes in working capital, which had a positive impact of NOK 1.6m in Q1-25 compared to a negative impact of NOK 1.6m in Q1-26, while underlying EBITDA was broadly unchanged. Combined with continued cost control, sales ramp-up, and expectations of improving profitability, Analyst Group views the financial position as stable.
In summary, Genetic Analysis delivered a strong Q1-26 with sales growth of 60% driven by continued momentum in high-margin recurring reagent kit sales. The quarter was further characterised by improved European traction and continued US expansion, supporting the view that Genetic Analysis is well positioned as the rapidly growing microbiome market shifts towards a more diagnostic approach. Combined with the first commercial order from China, marking an important strategic milestone, and a high pace of product development including the recent AInsight launch and the upcoming IBD Precision Dx, the Company has expanded its product portfolio meaningfully over the past year, supporting accelerated growth going forward. Profitability is expected to improve in line with continued sales growth, even though gross margin headwinds from tariffs and currency are expected to persist in the short term.
We will return with an updated equity research report of Genetic Analysis.
