Genetic Analysis AS (“Genetic Analysis” or the “Company”) published on February 27th the Company’s Q4-report for 2025.
The following are some key points that we have chosen to highlight in connection with the report:
- Strong sales momentum in constant currencies – record quarter in terms of revenue
- Reagent kit sales continue to grow strongly
- New product launches expected to accelerate growth going forward
- Gross margin affected by import duties in the U.S.
- Strong cost control and financial position
Sales Growth of 2.9%, in Constant Currency sales Revenue Increased by 9.8%
The sales revenue amounted to NOK 6.4m (6.2), corresponding to a growth of 2.9%, the sales were negatively affected by currency effects due to a weaker USD/NOK, in constant currency sales revenue increased by 9.8%. The quarter marked a record quarter in terms of revenue, driven by continued growth of GA-map® reagent kit sales, but fell slightly short of our estimate of NOK 7.2m.
Product sales, which refer to reagent kit sales, amounted to NOK 5m (4.4), corresponding to a growth of 13% or 20% in constant currency, reflecting strong development for the Company’s core business – recurring reagent kit sales with high gross margin. Service sales decreased by 17% during the quarter, amounting to NOK 1.4m (1.7m), which hampered total sales growth.
Genetic Analysis has a strong long-term sales trend for GA-map® reagent kit sales, which has grown from NOK 2.9m in 2020 to NOK 14.1m in 2025, corresponding to a CAGR of 37%. This is assumed to be attributable to the Company continuing to install the platform at a growing number of laboratories, hence generating growing demand for reagent kits to perform tests. We expect continued growth for reagent kit sales going forward, as the market is expected to shift towards a more diagnostic approach on the rapidly growing human microbiome market, where Genetic Analysis is a market leader, in combination with new product launches.
During H2-25, Genetic Analysis launched the GA-map® MHI GutHealth Reagent kit as a Research Use Only (RUO), which is now available for Luminex xMAP® users globally. The test, which is a collaboration with Ferring Pharmaceuticals, combines Genetic Analysis’ GA-map® platform with Ferring’s Microbiome Health Index (MHI) biomarker. Initially, the test will be used for recurrent Clostridioides difficile infection (rCDI) patients to assess microbiome imbalances and monitor treatment effects during microbiome restoration.
The MHI GutHealth test has contributed to the sales growth during the fourth quarter, following the launch in Q3-25. Hence, the test is generating revenues and can, in practice, support clinical decision-making alongside treatment, which is expected to drive sales. Given the significant cost of the associated therapy, Ferring’s Rebyota drug, the first fecal microbiota product approved by the FDA, there is a clear incentive for clinicians to use the test to optimize treatment. While a significant financial impact is not anticipated in the short-term, as test sales are expected to scale gradually, we see substantial long-term potential in the recently launched test.
Another potential growth driver is expected to be the Company’s ongoing IBD Precision Dx project, expected to be launched during H1-26. GA-map® IBD Dx, a new innovative biomarker for Inflammatory Bowel Disease (IBD), is a microbiome-based diagnostic tool to predict disease progression and treatment response in IBD, enabling earlier and more personalized treatment. Like other areas in which Genetic Analysis is involved, the current diagnostic instruments within the IBD field are considered insufficient, leaving a gap in the market for the Company to fill. GA-map® IBD Precision Dx will add a new product to the portfolio, thereby contributing to growth of recurring and high-margin reagent kit sales, which is expected to drive growth and margin expansion for Genetic Analysis.
Gross Margin Affected by Import Tariffs
The gross margin during the quarter amounted to 68.4% (83.1%), which was affected by import tariffs in the U.S. and currency effects, adjusted for these effects, the gross margin would have been 79%. Sales to the U.S. constituted for 68% of Genetic Analysis total sales in Q4-25 and 69% for the full year. As long as the current tariff situation and geographical sales mix persists, we expect these duties to continue exerting pressure on the Company’s margins, reducing profitability by approximately 15 percentage points on U.S. sales and around 10 percentage points overall.
Lean and Efficient Organization Positioned for Scalable Growth
The operating expenses amounted to NOK 6.4m (5.9), corresponding to an increase of 10%, which was higher than our estimate of NOK 5.2m. The increase as well as the deviation to our estimate was attributable to higher employee benefit expenses, amounting to NOK 5.0m (4.5). This is expected to be attributable to ongoing IBD Precision Dx project as well as increased commercial activities in the U.S.
The EBITDA result amounted to NOK -1.6m (0.5), which fell short of our estimate of NOK 0.8, due to the slightly lower sales and higher costs. Nevertheless, Genetic Analysis has operated with impressive cost control during 2025, decreasing the cost base 15% for the full year, resulting in a smaller, optimized organization. We reiterate our view that through estimated growing sales of reagent kits and new product launches, a high gross margin and strong cost control, Genetic Analysis is expected to be able to strengthen profitability, even though results likely will fluctuate between quarters.
Below is a summary of our estimates for the fourth quarter in comparison to the Q4 results.
Margins are adjusted for other income.
Stable Financial Position
The cash balance amounted to NOK 24.0m at the end of 2025, compared to NOK 17.7m at the end of Q3-25. The cash position was positively affected by changes in working capital during Q4-25, mainly due to customers’ prepayment of NOK 8.7m during the quarter, something that we expect will be reversed in the upcoming quarter. Nevertheless, with the current cash position and expectations of continued strong cost control and sales ramp-up, with increased profitability as a result, we view the financial position as strong.
In conclusion, Genetic Analysis delivered a record quarter in Q4-25 with sales growth of approx. 3% and approx. 10% in constant currency, driven primarily by continued strong growth in high-margin, recurring GA-map® reagent kit sales, which increased 13% or 20% in constant currency. Gross margin continues to be pressured by U.S. import tariffs and currency effects, though underlying profitability remains strong. Combined with a leaner cost base and a solid cash position of NOK 24m, the Company is well positioned to scale as microbiome diagnostics gain further traction. Newly launched products, including the MHI GutHealth test, have started contributing to revenues, while the upcoming IBD Precision Dx launch in H1-26 represents an additional growth driver.
We will return with an updated equity research report of Genetic Analysis.
