Bionano Genomics (NASDAQ: BNGO) shares surged 12.24% in after-hours trading following the release of its third-quarter 2025 financial results, which exceeded analyst expectations and provided an optimistic outlook for the remainder of the year.

The genome analysis company reported Q3 revenue of $7.4 million, representing a 21% increase from $6.1 million in the same period last year and beating the analyst consensus estimate of $6.871 million. Bionano's gross margin significantly improved to 46%, compared to a negative 139% in Q3 2024. The company also demonstrated strong cost management, reducing operating expenses by 66% to $11.9 million.

Erik Holmlin, CEO of Bionano, attributed the strong performance to increased utilization among routine users and expanding adoption in key markets, including Japan. The company's focus on driving consumables and software utilization appears to be paying off, with these revenues increasing by 15% year-over-year. Additionally, Bionano installed 7 new Optical Genome Mapping (OGM) systems during the quarter, bringing its total installed base to 384.

Looking ahead, Bionano provided an upbeat outlook for the fourth quarter and full year 2025. The company expects Q4 2025 revenue to be in the range of $7.5 million to $7.9 million and reiterated its full-year 2025 revenue guidance of $26.0 to $30.0 million. Notably, Bionano now anticipates surpassing 25 new OGM system installations for the full year 2025, exceeding its previous expectations of 20 to 25 installations.

The positive financial results and optimistic future outlook appear to have resonated well with investors, driving the significant after-hours stock price increase. As Bionano continues to focus on its strategic shift towards consumables and software utilization, the company seems poised for potential growth in the genomic analysis market.