Core Insights - Precipio, Inc. has significantly improved its balance sheet by repaying a $1.1 million advance from Change Healthcare and exercising all financial warrants, resulting in a debt-free status aside from a minor loan of approximately $80,000 [1][3][2] Financial Improvements - The company repaid a $1.1 million advance from Change Healthcare, which was initially provided to cover collections shortfalls due to a cybersecurity incident in 2024 [1] - Precipio maintains a small loan with the Connecticut Department of Economic and Community Development, with a principal amount of approximately $80,000, amortized at $3,000 per month and a 3.25% interest rate, to be fully paid by May 2028 [2] - All financial warrants issued during a 2023 financing have been exercised, with no further financial warrants outstanding [3] Operational Focus - The company emphasizes its commitment to profitable operations and a clean balance sheet, which reduces financial risk for shareholders [4] - Management is focused on executing its business strategy to grow the business, increase profit margins, and create sustained shareholder value [4] Company Overview - Precipio is a healthcare biotechnology company specializing in cancer diagnostics, aiming to address cancer misdiagnoses through innovative diagnostic products and services [5] - The company's products and services are designed to deliver higher accuracy and improved laboratory workflow, ultimately enhancing patient outcomes and reducing healthcare expenses [5]

Core Insights - The Zacks Equity Research team has highlighted several stocks, including AbbVie Inc., The Coca-Cola Co., Chevron Corp., ImmuCell Corp., and Precipio, Inc., in their Analyst Blog [1][2]. AbbVie Inc. (ABBV) - AbbVie has outperformed the Zacks Large Cap Pharmaceuticals industry over the past year, with a share price increase of +31.6% compared to the industry’s +19.5% [4]. - The company has successfully managed the loss of exclusivity for Humira by launching new immunology drugs, Skyrizi and Rinvoq, which are performing well and expected to support revenue growth [4][5]. - AbbVie is returning to robust revenue growth in 2025, following the U.S. Humira loss of exclusivity, and has been actively acquiring companies to enhance its early-stage pipeline [5]. The Coca-Cola Co. (KO) - Coca-Cola's shares have outperformed the Zacks Beverages - Soft Drinks industry over the past year, with a gain of +14.5% compared to +10.5% for the industry [6]. - The company's performance is attributed to solid organic revenue growth, effective pricing strategies, and gains in global market share within the non-alcoholic ready-to-drink category [6][7]. - Ongoing innovation and digital transformation efforts are enhancing Coca-Cola's competitive edge, although the company faces challenges such as soft volumes in key regions and currency headwinds [7][8]. Chevron Corp. (CVX) - Chevron's shares have increased by +9.5% over the past year, while the Zacks Oil and Gas - Integrated - International industry has gained +16% [9]. - The acquisition of Hess has significantly improved Chevron's growth outlook by adding high-quality assets in regions like Guyana and the Gulf of Mexico [9]. - The Permian Basin remains a key asset for Chevron, driving consistent growth, although challenges such as lower crude realizations and regulatory issues in California temper optimism [10]. ImmuCell Corp. (ICCC) - ImmuCell has outperformed the Zacks Medical - Products industry with a share price increase of +26.3% compared to +1% for the industry [11]. - The company’s First Defense franchise leads the market in calf scours prevention, with Tri-Shield accounting for 70% of volume and a 48% market share [11][12]. - ImmuCell has resolved operational bottlenecks, restoring capacity to $30 million in annual sales, with TTM revenues of $27.8 million, reflecting a 16% year-over-year increase [12][13]. Precipio, Inc. (PRPO) - Precipio's shares have surged by +361.2% over the past year, significantly outperforming the Zacks Medical Info Systems industry, which saw a decline of -1.3% [14]. - The company is moving towards self-funded growth, driven by its Pathology Services division, which is experiencing steady organic growth and rising margins [14][15]. - Precipio has improved profitability and cash flow, although it faces risks related to liquidity and regulatory uncertainties [15][16].

Core Insights - Precipio, Inc. is set to present findings from a joint study with Memorial Sloan Kettering Cancer Center, highlighting the positive impacts of its BCR::ABL1 assay on patient care [1][2] Group 1: Study Findings - The comprehensive study involved 895 patient samples and demonstrated superior performance of the BCR::ABL1 assay, showing concordance with two other leading platforms [2] - The study indicates clear, positive impacts on patient care and significant improvements in laboratory workflows [2] Group 2: Company Overview - Precipio 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 and improved laboratory workflow, ultimately leading to better patient outcomes and reduced healthcare expenses [3]

Core Viewpoint - Precipio, Inc. reported a limited unauthorized access incident to a specific data folder within its secure cloud environment, which did not affect its operations, diagnostics, or customer services [1][5]. Incident Details - The unauthorized access was confined to a file storage server and did not impact patient care or the company's financials [1][5]. - An external cybersecurity law firm and forensic specialists were engaged to assist in the investigation and ensure system security [2]. - The investigation revealed that the unauthorized party accessed historical files containing operational procedures, temperature logs, and vendor invoices, which posed no risk to the company [3]. Security Measures - The company took immediate action to secure its environment, including resetting passwords company-wide and enhancing monitoring [2][4]. - Current assessments suggest that the incident was limited in scope, and systems remain stable [4]. Financial Implications - Precipio maintains a comprehensive cybersecurity insurance policy, which is expected to cover costs related to the investigation and response efforts [5]. - The company does not anticipate any material impact on its operations, customers, patient care, or shareholders as a result of this incident [5]. Company Overview - Precipio is a healthcare biotechnology company focused on cancer diagnostics, aiming to reduce cancer misdiagnoses through innovative diagnostic products and services [6]. - The company develops technologies to improve diagnostic outcomes and commercializes these as proprietary products for the global laboratory community [6].

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].

Financial Data and Key Metrics Changes - The company achieved a positive adjusted EBITDA of nearly $500,000 for the first time in its history, marking a significant milestone [3] - Cash generated from operations was over $250,000, indicating a positive cash flow transformation [3] - Q3 revenue reached $6.8 million, a 30% increase year-over-year and a 20% increase quarter-over-quarter [7] - Adjusted EBITDA improved to $469,000 compared to $100,000 a year ago and a loss of $78,000 in the previous quarter [17] - Cash from operations swung positively to $285,000 from a cash burn of $148,000 in the previous quarter, representing a $433,000 improvement [17] Business Line Data and Key Metrics Changes - The Pathology Services Division generated $6 million in Q3, a 20% increase from $5 million in Q2, driven by new customer acquisitions [8] - Gross margin for the Pathology Services Division improved from 43% to 46% due to efficient operations [17] - The Products Division saw a 16% quarter-over-quarter growth, increasing from approximately $620,000 in Q2 to $720,000 in Q3 [10] - Overall gross margins improved slightly from 43% to 44%, with expectations for continued upward trends as both divisions grow [11] 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 [5] - The company is positioned to leverage its distributor network for scalable growth, indicating a shift in market strategy [11] Company Strategy and Development Direction - The company is transitioning from a defensive to an offensive strategy, focusing on reinvesting cash generated into growth initiatives [3][5] - Future priorities include driving double-digit growth in both divisions, expanding margins, and increasing liquidity and share price appreciation [19] - The company aims to achieve gross margins exceeding 50% by mid-2026 as both divisions build revenues on existing infrastructure [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's self-sustaining business model, indicating no need for outside capital to cover operational costs [18] - The company is optimistic about continued growth and market opportunities as it enhances its operational and financial success [19] - Management highlighted the importance of their mission in improving patient care, emphasizing that growth translates into better treatment outcomes [19] 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 [18] - The company has made strategic investments in lab space and technical support to enhance operational efficiency and customer onboarding [12][15] Q&A Session Summary - No specific questions or answers were provided in the content, indicating that the conference call concluded without a Q&A segment [21]

Financial Data and Key Metrics Changes - The company achieved a positive adjusted EBITDA of nearly $500,000 for the first time in its history, marking a significant financial milestone [3] - Cash generated from operations was over $250,000, indicating a shift towards financial independence [3] - Q3 revenue reached $6.8 million, a 30% increase year-over-year and a 20% increase quarter-over-quarter [7] - Adjusted EBITDA improved to $469,000 compared to $100,000 a year ago and a loss of $78,000 in the previous quarter [17] - Cash from operations showed a positive swing of $433,000, moving from a cash burn of $148,000 in Q2 to a cash generation of $285,000 in Q3 [17] Business Line Data and Key Metrics Changes - The Pathology Services Division generated $6 million in Q3, a 20% increase from $5 million in Q2, driven by new customer acquisitions [8] - Gross margin for the Pathology Services Division improved from 43% to 46% due to efficient operations [17] - The Products Division saw a 16% quarter-over-quarter growth, increasing from approximately $620,000 in Q2 to $720,000 in Q3 [10] - Overall gross margins improved slightly from 43% to 44%, with expectations for continued upward trends as both divisions grow [11] Market Data and Key Metrics Changes - The company’s share price has tripled since the beginning of 2025, reflecting market confidence in its financial performance [5] - The company is experiencing a strong sales funnel with several new customers in trial phases, indicating potential for future growth [8] Company Strategy and Development Direction - The company is transitioning from a defensive to an offensive strategy, focusing on reinvesting cash generated into growth initiatives [3][5] - Plans include driving double-digit growth in both divisions, expanding margins, and increasing liquidity and share price appreciation [19] - The company aims to leverage its financial independence to explore strategic partnerships and innovative products [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s ability to grow organically without reliance on outside capital, marking a significant operational threshold [18] - The focus is on maintaining a culture of accountability, collaboration, and customer empathy to support sustained growth [9] - Future priorities include continued growth, margin expansion, and strategic reinvestment to enhance market position [19] 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 [18] - The company has made strategic investments in lab space and technical support to enhance operational efficiency and customer onboarding [12][15] Q&A Session Summary - No specific questions or answers were provided in the content, indicating that the conference call concluded without a Q&A segment [21]

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.

Financial Performance - Precipio, Inc. reported Q3-2025 revenues of $6.8 million, representing a 30% year-over-year increase from $5.2 million in Q3-2024 and a 20% quarter-over-quarter increase from $5.7 million in Q2-2025 [10] - Adjusted EBITDA for Q3-2025 was $469,000, up $369,000 year-over-year and over $500,000 from Q2-2025, marking a significant turnaround from negative to positive [10] - Operating cash flow improved from a cash burn of $148,000 in Q2-2025 to a positive cash flow of $285,000 in Q3-2025, indicating a $433,000 swing quarter-over-quarter [10] Pathology Services Division - Revenue in the Pathology Services Division increased by approximately $1.0 million, or 20%, from $5.0 million in Q2-2025 to $6.0 million in Q3-2025, driven by new service initiations [3][10] - Gross margins for the Pathology Services Division improved from 43% to 46% quarter-over-quarter, supported by past investments in capacity [7] Products Division - The Products Division saw a revenue increase of 16% quarter-over-quarter, rising from $620,000 in Q2-2025 to $720,000 in Q3-2025, primarily due to existing customers ordering more products [5][10] - Gross margins for the Products Division decreased from 44% in Q2-2025 to 30% in Q3-2025, attributed to investments made to prepare for growth [8] Future Outlook - The company anticipates continued gross margin increases towards the 50% mark as the Pathology business leverages economies of scale and the Products Division builds more revenue [9] - Management expressed confidence in seizing growth opportunities created by the recent financial performance and operational efficiencies [3]