OraSure Expects Revenue of $30 Million to $32 Million, Pushes Cash Break-Even to Second Half of 2027
Key Facts
OraSure Technologies expects fourth-quarter 2026 revenue of $30 million to $32 million, equivalent to year-over-year growth of about 12% to 20%, management said on the third-quarter earnings call. On the same call, the company moved its target for operating cash flow break-even to the second half of 2027, from a previous plan to reach it as the coming year began. The new guidance puts revenue growth at the forefront of the company’s path to operating cash break-even. Management said the timing and mix of growth opportunities had changed. The target concerns cash flow from operations and does not mean the company expects to reach operating profitability by that date.
The fourth-quarter forecast followed revenue of $30.9 million in the third quarter, up 14% year over year and about 1% from the second quarter. But growth was slower over the first nine months: consolidated revenue rose just 1% to $89.5 million, from $88.3 million in the same period of 2025. The company expects full-year 2026 revenue of $119.5 million to $121.5 million, representing annual growth of 3.8% to 5.6%. Management ties the path to break-even to continued revenue growth, along with manufacturing efficiency and expense control. The company said it would provide more detail on its 2027 outlook on the fourth-quarter earnings call.
Gross margin under generally accepted accounting principles improved to 45.2% in the third quarter, compared with 43.5% in the year-earlier period. Management attributed the improvement to operational efficiency and better cost absorption, while geographic distribution mix limited the gains. Chief Executive Officer Carrie Eglinton Manner said the company had "meaningfully expanded gross margins and benefited from operational efficiency initiatives that lowered the cost base." She added that the company would continue investing to drive revenue growth, improve its operating model and advance toward profitability. The margin improvement comes alongside a later cash break-even target than previously planned.
Revenue from diagnostic products was $16.8 million in the third quarter, up 16% year over year, with higher international HIV test revenue, improved HCV test performance, growth in Sickle Scan and sample management solutions. For the first nine months, diagnostic growth was associated with higher international HIV revenue, local sourcing efforts in Africa and stable markets there, while a decline in international HCV revenue weighed on growth. Revenue from sample management solutions rose 21% to $12.5 million, driven by growth among commercial customers and the timing of some orders. The company also said its OraQuick Ebola 2.0 test and Colli-Pee Dx urine collection kit recorded initial orders after their commercial launches in the third quarter. These products offer additional opportunities within the growth mix whose timing management is revising.
The original plan included an expected significant contribution from the CT/NG self-collection molecular test for chlamydia and gonorrhea. Management said: "Our original plan included a significant contribution from the CT/NG self-collection molecular test." After withdrawing the regulatory submission for the test, the company said it had identified other opportunities, including potential demand for rapid Ebola tests. The change reflects a shift in the timing and mix of the growth opportunities underpinning the cash break-even outlook. The company needs to convert those opportunities into revenue while continuing its operational efficiency efforts and reducing its cost base.
OraSure ended the third quarter on September 30, 2026, with $148.2 million in cash and cash equivalents and no debt. Operating cash flow, meanwhile, was negative $10.9 million during the quarter, putting operating cash use alongside available liquidity in assessing the company’s path to break-even. Results showed margin improvement and third-quarter revenue growth, but revenue for the first nine months rose just 1%. OSUR shares closed at $3.53 on November 9, 2026. The information provided did not give a later share price after the outlook announcement.