Skip to content
    BLLN
    Earnings call· Mar 2026(Q1 FY26)

    BillionToOne Q1 FY26 earnings call BLLN

    May 6, 2026 Source

    Executive summary

    BillionToOne Q1 FY26 — Strong Growth, Expanded Margins, and New Product Launch

    BillionToOne delivered a strong first quarter, marked by significant revenue growth and expanded profitability, driven by product innovation and commercial execution. The company launched Unity Confirm, a novel noninvasive fetal cell-based confirmation assay, further differentiating its prenatal offerings. Management raised full-year revenue guidance, primarily reflecting Q1 strength and anticipated ASP benefits from new payer contracts, while maintaining a focus on profitability and cash flow generation.

    Highlights

    5
    • Total revenue grew 84% year-over-year to $108.4 million.

    • Gross margin expanded to 73% in Q1, a 9 percentage point increase year-over-year.

    • Achieved 16% GAAP operating margin and 24% adjusted EBITDA margin.

    • Cash position increased to $537.5 million at quarter-end.

    • Launched Unity Confirm, a category-redefining noninvasive fetal cell-based confirmation assay.

    Concerns

    3
    • Oncology ASPs stepped down sequentially, potentially due to true-ups rolling off.

    • Oncology business, while growing rapidly, currently has lower margins due to lower volume scale and lack of Medicare coverage for Response.

    • Timing for Unity Confirm clinical trial readout is long, potentially 1 to 3 years, due to decreasing invasive testing.

    Guidance & targets

    3
    CategoryTargetConfidence
    Full-year 2026 Total Revenue
    $450 million to $465 million
    high materiality
    High
    Full-year 2026 Gross Margin
    above 70%
    medium materiality
    Medium
    Full-year 2026 Profitability
    approaching current levels
    medium materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Prenatal
    Driven by strong volume growth, commercial execution, and additional traction from fetal antigen test products launched in February. Underscores Unity's differentiation and durability of prenatal growth.
    Volume growth: approximately 10% quarter-over-quarter
    $97.7 million72%
    Oncology
    Ramp driven by increasing adoption of Northstar Select and Northstar Response, recent launches of PGx and CH, and strong execution of oncology commercial team. Substantial opportunity ahead with sales team expansion, clinical evidence, and pursuit of Medicare coverage for Northstar Response.
    Volume growth: approximately 25% quarter-over-quarterNorthstar Select orders opting into CH: 60%
    $10.7 millionalmost 400%

    Operational metrics

    23
    Total Test Volume
    188,00044% year-over-year growth
    Q1 FY26

    Delivered approximately 188,000 tests in Q1.

    Total Revenue
    $108.4 million84% year-over-year growth
    Q1 FY26

    Total revenue in the first quarter of 2026 was $108.4 million compared to $59.0 million in the first quarter of 2025.

    Annualized Revenue Run Rate
    $434 million
    Q1 FY26

    Leading to $434 million of annualized revenue run rate.

    Average Selling Price per Test
    $57128% year-over-year increase
    Q1 FY26

    Overall ASP increasing to $571 per test, a 28% year-over-year increase and a $10 per test sequential increase.

    COGS per Test
    $153down 5% sequentially
    Q1 FY26

    Our overall COGS per test was $153 in the first quarter, down 5% sequentially and only 1% higher year-over-year.

    Gross Profit
    $79.1 million
    Q1 FY26

    Gross profit in the first quarter of 2026 was $79.1 million compared to $38.0 million in the first quarter of 2025.

    Gross Margin
    73%9 percentage point year-over-year increase
    Q1 FY26

    Gross margins were 73% in Q1, representing a 9 percentage point year-over-year increase from 64% in the first quarter of 2025 and a 2 percentage point sequential increase from 71% in Q4 2025.

    Total Operating Expenses
    $61.2 millionincrease of 52%
    Q1 FY26

    Total operating expenses were $61.2 million in the first quarter of 2026 compared to $40.3 million in the comparable prior year quarter.

    R&D Expense
    $14.7 million
    Q1 FY26

    R&D expense was $14.7 million in the first quarter of 2026 compared to $10.4 million in the comparable prior year quarter.

    SG&A Expense
    $46.6 million
    Q1 FY26

    SG&A expense was $46.6 million in the first quarter of 2026 compared to $29.9 million in the comparable prior year quarter.

    GAAP Operating Margin
    16%meaningful step-up from 11% (Q4 FY25)
    Q1 FY26

    Our Q1 operating profit margin was 16%, representing a meaningful step-up from the 11% operating margin we delivered in the fourth quarter of 2025.

    Adjusted EBITDA Margin
    24%
    Q1 FY26

    Adjusted EBITDA in the quarter represented a 24% margin.

    Operating Income
    $17.8 million
    Q1 FY26

    Operating income was $17.8 million in the first quarter of 2026 compared to an operating loss of $2.3 million in the first quarter of 2025.

    Net Income Available to Common Shareholders
    $18.0 million
    Q1 FY26

    Net income available to common shareholders was $18.0 million... compared to a net loss of $4.0 million for the same period of 2025.

    Diluted EPS
    $0.34
    Q1 FY26

    $0.34 per diluted share in the first quarter of 2026 compared to... $0.39 per diluted share for the same period of 2025.

    Cash and Equivalents Balance
    $537.5 million
    Q1 FY26

    Increasing our cash position to $537.5 million at the end of the quarter.

    True-up Revenue
    $9.2 millioncompared to $8.4 million (Q4 FY25) and $2.9 million (Q1 FY25)
    Q1 FY26

    True-up revenue was $9.2 million in the first quarter of 2026 compared to $8.4 million in the fourth quarter of 2025 and $2.9 million in the first quarter of 2025.

    Total Revenue Growth excluding True-up Revenue
    77%compared to the same period last year
    Q1 FY26

    Excluding true-up revenue, total revenue growth in Q1 was 77% compared to the same period last year.

    Contracted Lives
    300 million
    Q1 FY26

    Bringing our total contracted lives to 300 million in the United States, representing more than 90% of patients.

    Northstar Select Opt-in to CH
    60%
    Q1 FY26

    Approximately 60% of Northstar Select orders now opt in to CH.

    Oncology Response to Select Ratio
    2:1similar
    Q1 FY26

    The blended average is staying at 2 Response to 1 Select test.

    US Births
    3.6 million
    Annual

    Starting with, I think, 3.6 million births in the U.S. roughly.

    Unity Confirm Eligible Patients
    0.5%-1%
    Annual

    This is only going to be about 0.5% of the patients, maybe up to 1% of the patients who would test positive on a cell-free DNA test and be eligible for this.

    Industry KPIs

    2
    MetricValueDetails
    Membership covered lives by line300 millionlives
    Adjusted EPS EBITDA leverage guidance24%%

    Product announcements

    1
    ProductTypeDetails
    Unity Confirmlaunch

    Deals & partnerships

    2
    AnthemIn-network agreement for services.

    BillionToOne is now in network with Anthem, one of the largest health insurers in the United States. This brings total contracted lives to approximately 300 million in the U.S.

    UnitedHealthcareIn-network agreement for services.

    Following the in-network agreement announced last quarter with UnitedHealthcare, effective April 1.

    Risks & headwinds

    3
    Oncology MarginsShort term

    Oncology currently has lower margins due to lower volume scale and prior to Medicare coverage of Response.

    Mitigation: Expect to maintain strong overall gross margins above 70%; long-term expectation for both product lines to be easily above 75% as they mature and Medicare coverage for Response is secured.

    Unity Confirm Clinical Trial Duration1 to 3 years

    Can easily take anywhere between 1 to 3 years.

    Mitigation: The company is enrolling patients in what it believes is the largest prospective circulating fetal cell-based study ever conducted.

    AR IncreaseQ1 FY26, expected to come down by end of Q2 or Q3.

    About half of the increase in our AR this quarter.

    Mitigation: Driven by new contracts entered in Q1, for which reimbursement will be received in several months. Expected to normalize.

    What to watch in Q2 FY26

    5

    Full-year 2026 Total Revenue Guidance

    Next quarter
    Current$450 million to $465 million
    TargetReaffirmed or revised range

    Why it matters

    Revenue guidance is a primary indicator of company performance and market traction.

    We are raising our 2026 total revenue outlook to a range of $450 million to $465 million, representing growth of 48% to 52% compared to full year 2025.

    Q&A highlights

    5

    Is the revenue guidance raise primarily due to volume or ASPs, and what is the expected volume cadence for the rest of the year?

    The guidance increase is primarily driven by an ASP lift from new payer contracts and the strong Q1 performance, not a significant increase in volume expectations beyond Q1. Q4 is typically slower due to seasonality, while Q2 and Q3 are expected to see sequential growth.

    But in terms of the guidance increase, that came from the strength we had in Q1, just factoring that into the guidance as well as an ASP lift we expect to see from several additional payer contracts we entered into since the start of 2026. So not really assuming any increase in volume compared to our prior expectations other than the good results we saw in Q1, but primarily driven by a lift in ASPs and again, strong performance in Q1.

    asked by Daniel Arias · answered by Ross Taylor

    2 min read5 chapters

    Detailed Narrative

    01

    Unity Confirm Launch and Strategic Impact

    BillionToOne launched Unity Confirm, the first noninvasive fetal cell-based confirmation assay for high-risk NIPTs, at the ACOG Annual Meeting on May 1, 2026. This product captures and sequences intact circulating fetal cells from maternal blood, providing 100% fetal fraction, and aims to address the clinical gap for patients unwilling or unable to undergo invasive diagnostic testing. Initial results show 100% concordance with invasive diagnostics, and a large prospective study is enrolling patients. The company expects minimal direct revenue from Unity Confirm, but anticipates it will significantly differentiate its Unity Aneuploidy offering, as it is only accessible if Unity Aneuploidy is used as a frontline screen, driving increased volume for the core product.

    02

    Payer Contract Expansion and ASP Growth

    The company significantly strengthened its market access by becoming in-network with Anthem, bringing total contracted lives to approximately 300 million in the U.S., representing over 90% of patients. This follows a similar agreement with UnitedHealthcare, effective April 1, 2026. These in-network contracts are expected to remove friction for physicians and patients, increase access, and lead to higher, more predictable average selling prices (ASPs) over time, contributing to the raised full-year revenue guidance.

    03

    Oncology Business Growth and Future Outlook

    Oncology revenue grew nearly 5x year-over-year to $10.7 million in Q1, driven by adoption of Northstar Select and Response, and recent launches of PGx and CH. Approximately 60% of Northstar Select orders now opt-in to CH. The company continues to see substantial opportunity in oncology, planning to expand its sales team, build clinical evidence, and pursue Medicare coverage for Northstar Response, which is expected to significantly increase its ASP and contribute to overall margin expansion once secured.

    04

    Operational Efficiency and Profitability Achievements

    BillionToOne achieved GAAP profitability and positive cash flow with less than 10% of the accumulated deficit of public competitors, demonstrating strong fiscal discipline and efficient operations. The company delivered a 16% GAAP operating margin and 24% adjusted EBITDA margin in Q1, while continuing to invest meaningfully in its sales force, new product launches, and clinical evidence generation. This combination of rapid growth and profitability highlights the uniqueness of its technology and operational discipline.

    05

    Tumor-Naive MRD Test Development

    The company is developing a tumor-naive MRD test, which is on track for launch by the end of 2026. Management believes this approach will be more easily adopted by community oncologists, who care for the majority of oncology patients in the U.S., expanding MRD usage beyond academic centers and colorectal cancer. The test will be launched with supporting data, likely through a manuscript, rather than at a specific conference.

    AI-generated summary of the company’s earnings call. Not investment advice.