Quanterix appoints KPMG as new auditor; EY reports material weaknesses

Published 14/05/2025, 22:04
Quanterix appoints KPMG as new auditor; EY reports material weaknesses

Quanterix Corporation (NASDAQ:QTRX), a $167 million market cap company specializing in laboratory analytical instruments, has announced a change in its independent accounting firm, as disclosed in a recent SEC filing. According to InvestingPro data, the company generated revenues of $136 million in the last twelve months, though it currently faces profitability challenges with negative EBITDA of $54 million. On May 9, 2025, the Audit Committee of Quanterix’s Board of Directors approved the dismissal of Ernst & Young LLP (EY) following the completion of the company’s quarterly report for Q1 2025. The decision came after a competitive request for proposal process involving several firms, including EY.

The reports from EY for the fiscal years ending December 31, 2024, and 2023 did not contain any adverse opinions or disclaimers. However, EY’s reports on the company’s internal control over financial reporting for those years expressed adverse opinions due to material weaknesses. This comes as InvestingPro analysis shows the company is quickly burning through cash, though it maintains a strong current ratio of 8.29, indicating sufficient liquid assets to meet short-term obligations. These weaknesses were related to inventory valuation, property and equipment accounting, and the capitalization of labor and overhead costs, which led to a restatement of financial statements for certain periods.

Quanterix disclosed that the identified material weaknesses had not been fully remediated by the end of 2024, with an additional weakness in the accounting for Accelerator Laboratory revenue emerging. Despite these issues, there were no disagreements between the company and EY on accounting principles, practices, or auditing scope that would have required EY to reference such matters in their reports.

On the same day as EY’s dismissal, Quanterix appointed KPMG LLP as its new independent registered public accounting firm for the fiscal year ending December 31, 2025. Prior to this appointment, Quanterix had not consulted with KPMG on any accounting or auditing matters that would require disclosure.

The filing included a letter from EY to the SEC, dated May 14, 2025, as Exhibit 16.1, which is expected to state whether EY agrees with the company’s account of the events. The information is based on a press release statement and aims to provide a transparent account of the changes in Quanterix’s financial reporting and auditing processes. While the stock trades near its 52-week low, InvestingPro analysis suggests the company is currently undervalued, with 12 additional ProTips available to subscribers, including detailed insights into the company’s financial health and growth prospects. Get access to the comprehensive Pro Research Report for deeper analysis of QTRX’s financial position and future outlook.

In other recent news, Quanterix Corporation reported its Q1 2025 financial results, revealing a revenue of $30.3 million, which marked a 5% year-over-year decline and fell short of expectations. The company also reported an earnings per share (EPS) of -$0.53, missing the forecasted -$0.43. Amid these financial challenges, Quanterix has revised its full-year 2025 revenue guidance to a range of $120-130 million and remains focused on achieving positive cash flow by 2026. Additionally, Quanterix announced an amendment to its pending merger with Akoya Biosciences, reducing the equity value of the transaction by 67% to $66 million. The merger is anticipated to contribute significantly to Quanterix’s top line and gross profit. Analysts from Canaccord Genuity have taken note of the company’s strategic initiatives, including the expansion of its assay portfolio and the upcoming launch of the Simoa One platform. Quanterix also highlighted its efforts to address challenges in the academic and pharma sectors, which could impact future revenue growth.

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