v3.26.3
Discontinued Operations (Tables)
 9 Months Ended
Sep. 30, 2026
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Disposal Groups Discontinued Operations

The results of operations of the Disposed Entities are reported as discontinued operations for all periods presented. The following tables summarize the financial results of the discontinued operations:

 

 

 

 

Three Months Ended
 September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenue(1)

 

$

—

 

 

$

26,693

 

 

$

37,172

 

 

$

67,466

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

—

 

 

 

14,352

 

 

 

4,504

 

 

 

37,784

 

Selling, general and administrative expenses

 

 

—

 

 

 

8,474

 

 

 

6,055

 

 

 

25,573

 

Research and development

 

 

—

 

 

 

4,849

 

 

 

2,881

 

 

 

16,587

 

Transaction expenses

 

 

—

 

 

 

2,203

 

 

 

15,237

 

 

 

12,710

 

Total operating costs and expenses

 

 

—

 

 

 

29,878

 

 

 

28,677

 

 

 

92,654

 

Operating income (loss)

 

 

—

 

 

 

(3,185

)

 

 

8,495

 

 

 

(25,188

)

Other income, net

 

 

—

 

 

 

181

 

 

 

131

 

 

 

3,578

 

Gain on sale of business

 

 

29,989

 

 

 

—

 

 

 

202,278

 

 

 

—

 

Indemnification-related loss(2)

 

 

—

 

 

 

—

 

 

 

(4,212

)

 

 

—

 

Income (loss) from discontinued operations before income taxes

 

 

29,989

 

 

 

(3,004

)

 

 

206,692

 

 

 

(21,610

)

Income tax benefit (expense)

 

 

(1,529

)

 

 

1

 

 

 

(41,771

)

 

 

158

 

Income (loss) from discontinued operations, net of tax

 

$

28,460

 

 

$

(3,003

)

 

$

164,921

 

 

$

(21,452

)

 

(1)
During the nine months ended September 30, 2026, the Company recognized revenue of $29.8 million related to the transaction price under the Collaboration Agreement with Illumina, which primarily reflects the release of the deferred revenue balance previously established under the Collaboration Agreement upon the sale of the SomaScan Business. The Company has classified the $29.8 million within discontinued operations consistent with the treatment of all SomaScan Business-related activities. Out of the $29.8 million recognized, $0.6 million reflects Illumina’s exercise of its material right to be provided with SOMAmer reagents for commercialization of the co-branded kits.
(2)
In connection with the sale of SomaLogic to Illumina, the Company agreed to indemnify Illumina for certain litigation matters. The Company recorded a liability of $3.3 million as of the closing date, which remained unchanged as of March 31, 2026. During the three months ended June 30, 2026, the Company recorded an additional charge of $4.2 million related to the litigation matters, which were settled in July 2026. The Company paid $7.5 million in July 2026 in full settlement of these matters, and no indemnification liability remained as of September 30, 2026.

 

Details of non-cash operating expenses and capital expenditures of the discontinued operations are as follows:

 

 

 

Nine Months Ended September 30,

 

 

 

2026

 

 

2025

 

Depreciation and amortization

 

$

—

 

 

$

2,280

 

Amortization of acquired intangible assets

 

 

—

 

 

 

1,715

 

Capital expenditures

 

 

—

 

 

 

2,421

 

Stock-based compensation expense

 

 

3,823

 

 

 

2,913

 

Non-cash lease expense

 

 

124

 

 

 

1,004