Core Viewpoint - Precipio, Inc. (PRPO) has demonstrated significant financial improvement in Q3 2025, with strong revenue growth and operational momentum, leading to a notable increase in stock performance compared to the broader market [1][2]. Financial Performance - Revenue for Q3 2025 increased by 29.9% year over year to $6.8 million from $5.2 million, and sequentially rose by 19.7% from $5.7 million in Q2 2025 [2]. - Adjusted EBITDA improved to $0.5 million from $0.1 million a year ago and from a loss of $0.1 million in the prior quarter [2][4]. - Gross margin increased to 44% from 43% in Q2 2025, while GAAP net loss narrowed to $0.1 million from $0.6 million in Q3 2024 [2]. Segment Performance - The Pathology Services division saw a 20% sequential revenue increase to $6 million, driven by new customer additions [3]. - The Products division experienced a 16% sequential revenue growth to $0.7 million, supported by increased orders from existing clients [3]. Operational Metrics - EBITDA reached $0.3 million in Q3 2025, compared to a loss of $0.3 million in the same quarter last year [4]. - Operating cash flow generated was $285,000, a significant improvement from a cash burn of $148,000 in Q2 2025 [4]. Margin Dynamics - Pathology Services gross margin improved from 43% to 46% quarter over quarter, while the Products division margin fell from 44% to 30% due to strategic investments [5][11]. - Management expects that revenue scaling will offset temporary margin pressures from these investments [5]. Management Insights - Management characterized the quarter as a turning point, emphasizing a shift from survival to strategic expansion, with a focus on operational discipline and sustained revenue gains [6]. - The company aims to operate without dependence on external capital, allowing for reinvestment in growth initiatives [6]. Future Outlook - Management outlined four priorities for the remainder of 2025 and into 2026: sustaining double-digit growth, further margin expansion, reinvestment of internally generated cash, and broader investor outreach [12]. - PRPO expects overall company gross margins to exceed 50% by mid-2026 as revenue scales against a largely fixed-cost structure [12]. Other Developments - The company expanded its laboratory space during Q3 2025, incurring an additional $120,000 in annual rent, aimed at increasing operational efficiency [14].

Core Viewpoint - The conference call is focused on providing a shareholder update for Precipio's third quarter of 2025, highlighting forward-looking statements about the company's business performance and expectations [1][3]. Group 1: Forward-Looking Statements - The statements made during the call include forward-looking statements that are based on current expectations, forecasts, and assumptions, which are subject to significant risks and uncertainties [1]. - Forward-looking statements may include terms such as may, will, should, could, expect, intend, plan, anticipate, believe, estimate, predict, potential, forecast, and continue [1]. Group 2: Risks and Uncertainties - Actual results may differ materially from those set forth in forward-looking statements due to various risks and uncertainties [2]. - The company references its annual report on Form 10-K for the year ended December 31, 2024, which details risk factors that could impact results [2].

Precipio (NasdaqCM:PRPO) Q3 2025 Earnings Call November 17, 2025 05:00 PM ET Company ParticipantsIlan Danieli - CEOOperatorWelcome to the Precipio III Quarter 2025 Shareholder Update Conference call. All participants will be in listen-only mode. If you need assistance, please signal a conference specialist by pressing the star key followed by zero. Please note that the conference is being recorded. Statements made during this call contain forward-looking statements about our business. You should not place u ...

Precipio (NasdaqCM:PRPO) Q3 2025 Earnings Call November 17, 2025 05:00 PM ET Company ParticipantsIlan Danieli - CEOOperatorWelcome to the Precipio third quarter 2025 shareholder update conference call. All participants will be in listen-only mode. If you need assistance, please signal a conference specialist by pressing the star key followed by zero. Please note that the conference is being recorded. Statements made during this call contain forward-looking statements about our business. You should not place ...

Financial Data and Key Metrics Changes - For Q3 2025, the company achieved a positive adjusted EBITDA of nearly $500,000 and generated over $250,000 in cash from operations, marking a significant financial milestone [3][15] - Revenue for Q3 reached $6.8 million, representing a 30% increase year-over-year and a 20% increase quarter-over-quarter [6] - Adjusted EBITDA improved to $469,000 compared to $100,000 a year ago and a loss of $78,000 in Q2 2025, indicating a swing of over $500,000 in just one quarter [15] - Cash generated from operations was $285,000, a positive cash swing of $433,000 compared to a cash burn of $148,000 in the previous quarter [15] Business Line Data and Key Metrics Changes - The Pathology Services Division reported revenue growth from $5 million in Q2 to $6 million in Q3, a 20% increase, driven by new customer acquisitions [7] - The Products Division experienced a 16% quarter-over-quarter growth, increasing from approximately $620,000 in Q2 to $720,000 in Q3, primarily due to increased utilization from existing customers and new product introductions [9][10] - Gross margins improved from 43% to 44% overall, with the Pathology Services Division increasing margins from 43% to 46% [10][15] Market Data and Key Metrics Changes - The company has seen a tripling of its share price since the beginning of 2023, reflecting market confidence in its financial performance and growth strategy [5] - The company is experiencing a strong sales funnel with several new customers in trial phases, indicating a robust market demand for its services [7] Company Strategy and Development Direction - The company is transitioning from a defensive to an offensive strategy, focusing on reinvesting cash generated from operations to accelerate growth [3][5] - Future priorities include driving double-digit growth in both divisions, expanding margins, and reinvesting cash into growth initiatives [17] - The company aims to achieve a gross margin exceeding 50% by mid-2026 as both divisions scale up [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's self-sustaining business model, stating that it will no longer depend on outside capital for operations [16] - The company anticipates that increased market capitalization will present new strategic opportunities for growth and partnerships [16] - Management emphasized the importance of their mission, linking financial success to improved patient care outcomes [17] Other Important Information - The company is nearing the completion of its full repayment of Change Healthcare, which will free up cash generated from operations starting in Q1 2026 [16] - The company has made strategic investments in lab space and technical support to enhance operational efficiency and customer onboarding [11][14] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.

Over $450,000 Adjusted EBITDA and $275,000 positive operating cash flow for the quarterNEW HAVEN, Conn., Nov. 14, 2025 (GLOBE NEWSWIRE) -- Specialty cancer diagnostics company Precipio, Inc. (NASDAQ: PRPO), filed its 10-Q report today. The following are the highlights of the Company’s financial performance and outlook for the remainder of 2025. Q3-2025 Financial Results: Revenues. Q3-2025 revenues reached $6.8M, a 30% increase YoY from $5.2M in Q3-2024, and a QoQ increase of 20% from $5.7M in Q2-2025. Patho ...

Financial Performance - Net sales for the three months ended September 30, 2025, were approximately $6.8 million, an increase of $1.5 million or 30% compared to the same period in 2024[149] - Net sales for the nine months ended September 30, 2025, were approximately $17.4 million, an increase of $4.3 million or 33% compared to the same period in 2024[154] - Gross profit for the three months ended September 30, 2025, was approximately $3.0 million, an increase of $0.7 million or 41% compared to the prior year period[151] - Gross profit for the nine months ended September 30, 2025, was approximately $7.6 million, representing a 73% increase from $4.9 million in 2024, with a gross margin of 44% compared to 38% in 2024[156] Revenue Sources - Patient diagnostic service revenue increased by $1.5 million due to a 19% increase in cases processed, totaling 4,258 cases in Q3 2025 compared to 3,584 cases in Q3 2024[149] - Patient diagnostic service revenue increased by $4.2 million, driven by a 25% increase in processed cases, totaling 10,971 cases in 2025 compared to 8,745 cases in 2024[154] Operating Expenses - Operating expenses increased by $0.2 million for the three months ended September 30, 2025, primarily due to increased personnel costs and recruiting expenses[152] - Operating expenses increased by $0.5 million for the nine months ended September 30, 2025, with general and administrative expenses rising by $0.3 million primarily due to personnel costs[157][158] Loss and Deficit - The company incurred an operating loss of $1.7 million for the nine months ended September 30, 2025, with an accumulated deficit of $103.3 million[146] Other Income and Funding - The company recorded approximately $0.9 million of other income due to non-recurring items, including a $0.8 million Employee Retention Credit refund[145] - The company received approximately $1.1 million from Change Healthcare through a Temporary Funding Assistance Program following a cybersecurity breach[139] - The company recorded net other income of $0.9 million for the nine months ended September 30, 2025, compared to a net other expense of $45,000 in 2024[159] Cash Flow and Working Capital - Working capital improved to $1.2 million as of September 30, 2025, an increase of $2.0 million from a negative working capital of $820,000 at the end of 2024[160] - Cash flows provided by operating activities were $0.3 million for the nine months ended September 30, 2025, compared to cash used in operating activities of $0.1 million in 2024[161] - Cash flows used in investing activities were approximately $0.3 million for the nine months ended September 30, 2025, resulting from purchases of property and equipment[162] - Cash flows provided by financing activities totaled $0.8 million for the nine months ended September 30, 2025, including $1.3 million from the exercise of warrants[163] Commitments and Assessments - The company has 31,944 outstanding warrants as of September 30, 2025, with proceeds of approximately $1.3 million received from the exercise of 100,000 warrants during the three months ended September 30, 2025[147] - The company is assessing the impact of the One Big Beautiful Bill Act of 2025 on its business and financial statements[148] - The company had off-balance sheet purchase commitments of approximately $1.9 million as of September 30, 2025, primarily for laboratory reagents[167]

Company Overview - Precipio, Inc. is a healthcare biotechnology company focused on cancer diagnostics, aiming to address cancer misdiagnoses through innovative diagnostic products and services [3] - The company's mission includes delivering higher accuracy, improving laboratory workflow, and enhancing patient outcomes, which ultimately reduces healthcare expenses [3] Upcoming Corporate Update - Precipio will host its Q3-2025 corporate update call on November 17, 2025, at 5:00 PM ET, providing updates on its current core businesses [1] - Interested listeners can submit questions in advance via email, and a replay of the call will be available approximately 24 hours after the event [2] Communication Channels - Precipio encourages stakeholders to visit its website and follow its social media channels for updates, disclosures, and other material information [4]

Core Viewpoint - Precipio, Inc. has terminated its At-The-Market (ATM) instrument with Alliance Global Partners, indicating a shift towards more responsible capital management and a stronger financial position [1][2]. Company Overview - Precipio is a healthcare biotechnology company focused on cancer diagnostics, aiming to address cancer misdiagnoses through innovative diagnostic products and services that enhance accuracy and improve patient outcomes [3]. Financial Position - The company has eliminated negative cash flow from operations and increased its cash balance, leading to the decision to terminate the ATM instrument as it no longer needs this tool for capital raises [2].

Financial Data and Key Metrics Changes - Q2 2025 marked a strong quarter with continued revenue growth, improved margins, and progress towards breakeven, with overall company gross margins improving from 39% to 43% [4][5] - Pathology services business is growing at an annualized growth rate of about 70%, while products revenue grew by 23% from the previous quarter, representing almost a 100% annualized growth rate [4][6] Business Line Data and Key Metrics Changes - The pathology services division continues to deliver consistent revenues, with a record of exceeding $2,000,000 in revenue in a single month in July [7][9] - The products division faced operational challenges in the past year but is now seeing revenue growth as issues are resolved and new customers are onboarded [10][11] Market Data and Key Metrics Changes - A strong pipeline of new customers is expected to contribute to continued growth in Q3, with efforts to scale market penetration through distributors [5][14] Company Strategy and Development Direction - The company is focused on strengthening its revenue base and mitigating future disruptions through strategic investments and customer support initiatives [5][12] - A commitment to customer service continuity has led to the implementation of a backup testing program for customers, ensuring uninterrupted patient testing [12][13] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the strength of the business and believes it is well-positioned to reach breakeven without additional capital, targeting this milestone in 2025 [6][21] - The company has begun to engage with investors and tell its story, which has contributed to increased interest and demand for its shares [22][23] Other Important Information - The company structured a recent warrant exercise to balance capital inflow with dilution control, minimizing the impact on share price [20] - The stock price has tripled in the last quarter due to solid revenue growth, improved margins, and increased investor interest [21][22] Q&A Session Summary Question: What drove the stock price increase in the last quarter? - The increase is attributed to company performance, with three consecutive quarters of solid revenue growth and reduced cash needs, making the company attractive relative to its valuation [21] - The company began to engage with investors and share its story, transitioning from being relatively unknown to gaining more attention in the market [22][23]