NEW YORK – 23andMe reported after market close on Tuesday a year-over-year revenue gain of approximately 35 percent for the company's third quarter of fiscal 2025 driven by a 2023 deal with GSK.
The consumer genomics firm also noted in a statement that it faces liquidity concerns as its cash reserves decline, and it is attempting to raise additional cash.
or the three months ended Dec. 31, 2024, the Sunnyvale, California-based company reported approximately $60.3 million in total revenues compared to nearly $44.8 million for the same quarter in FY 2024. 23andMe noted in a statement that it recognized $19.3 million in nonrecurring research services revenue during the quarter pursuant to its alliance with GSK, which "represents substantially all remaining revenue associated" with that deal.
Consumer services revenue fell approximately 8 percent from approximately $42.9 million in Q3 2024 to $39.6 million in Q3 2025. 23andMe said that this was driven by falling PGS kit sales, lower average selling prices, and a $1.5 million decrease in telehealth revenue, which were partially offset by growth in PGS membership services revenue amounting to $4.6 million.
23andMe's Q3 net loss was $45.5 million, or $1.73 per share, compared to approximately $278 million, or $11.56 per share, in Q3 last year. The company noted that these amounts had been adjusted to reflect the reverse stock split that became effective Oct. 16, 2024, in the midst of a protracted fight between CEO Anne Wojcicki and the board over taking the company private. That dispute saw the firm's independent board of directors resign en masse in September.
23andMe's R&D spending fell roughly 15 percent to $20.2 million from $23.9 million year over year, while its SG&A expenses dipped almost 38 percent to approximately $37.3 million from nearly $58.7 million in the same quarter last year.
The company attributed part of the drop in SG&A expenses to a 40 percent workforce reduction implemented in November and to the discontinuation of its therapeutics program. 23andMe also incurred approximately $10.6 million in costs related to restructuring compared to $217,000 of such charges in Q3 2024.
23andMe ended the quarter with approximately $81 million in cash, cash equivalents, and restricted cash.
In a statement, the company noted that although it currently carries no debt on its balance sheet, it will need to raise additional liquidity to fund its operations and financial commitments. Furthermore, the firm is working to implement cost-cutting measures, including additional reductions in operating expenses and negotiating terminations of long-term real estate leases. The company also said it is working to reach a settlement covering all US customers affected by last year's data breach as well as to resolve non-US litigation and ongoing governmental investigations related to the breach.
In a separate statement also released after market close, 23andMe announced that the special committee of the board of directors is exploring strategic options including a possible sale of the company, business combination, sale of all or part of the company's assets, licensing of assets, restructuring, or other strategic action.