Genetic Analysis, a key player in the field of microbiome diagnostics, has reported its financial results for the third quarter of 2025. Despite the seasonal slowdown typically seen during the summer, the company achieved a modest increase in sales revenue, reaching NOK 2.1 million, a 2.9% rise compared to the same period last year. This growth is even more significant when considering constant currency, reflecting a 6.1% increase.

CEO Ronny Hermansen emphasized the company's ongoing commitment to its long-term growth strategy, highlighting significant strides in both commercial and development activities. A notable achievement this quarter was the completion of the development phase for the new IBD Dx marker project, which is now progressing into the validation phase. This development underlines Genetic Analysis' dedication to innovation and expanding its diagnostic capabilities.

However, the quarter was not without challenges. The introduction of new US import duties impacted the gross margin, reducing it from 76% in Q3 2024 to 64% this quarter. Adjustments for these duties would have maintained the margin at a robust 75%. Despite these hurdles, the company's equity ratio improved to 67%, up from 56% last year, showcasing financial resilience.

Strategic partnerships continue to be a cornerstone of Genetic Analysis' growth. The collaboration with Pangea Laboratory LLC in the US has been pivotal, with the successful launch of the GA-map® MHI GutHealth test as a Research Use Only (RUO) test. This initiative, developed alongside Ferring Pharmaceuticals, targets patients with recurrent Clostridioides difficile infection (rCDI) and is set to enhance the company's footprint in the US market.

Looking ahead, Genetic Analysis appears well-positioned to capitalize on its strategic initiatives and partnerships. The global launch of the GA-map® MHI GutHealth reagent kit for Luminex xMAP® users further strengthens its product portfolio, offering advanced tools for microbiome testing.

Given the company's strategic progress and resilience in navigating market challenges, the recommendation for investors is to hold their positions. The long-term growth potential remains promising, supported by ongoing innovation and market expansion efforts.