Company Overview - Personalis (PSNL) shares increased by 14.2% to $7.51 in the last trading session, with a notable trading volume, and have gained 34.6% over the past four weeks, indicating positive investor sentiment towards the company's revenue growth from pharma tests and services [1][2] Financial Performance - The upcoming quarterly report for Personalis is expected to show a loss of $0.25 per share, reflecting a year-over-year decline of 4.2%, with revenues projected at $20.2 million, down 10.5% from the same quarter last year [2] - The consensus EPS estimate for Personalis has remained unchanged over the last 30 days, suggesting that stock price movements may not sustain without trends in earnings estimate revisions [3] Industry Context - Personalis operates within the Zacks Medical - Generic Drugs industry, which includes Taysha Gene Therapies, Inc. (TSHA), whose stock rose by 3.9% to $2.43 but has seen a decline of 15.8% over the past month [4] - Taysha Gene Therapies' consensus EPS estimate has increased by 12% over the past month to -$0.07, representing a year-over-year change of 22.2% [5]

Company Overview - Personalis (PSNL) shares increased by 7.3% to close at $6.45, with a notable trading volume compared to typical sessions, and a total gain of 21.4% over the past four weeks [1] - The positive investor sentiment is linked to the anticipated growth in revenues from Personalis' pharmaceutical tests and services, indicating a rising adoption of its technology [1] Financial Performance - Personalis is expected to report a quarterly loss of $0.25 per share, reflecting a year-over-year decline of 4.2%, with revenues projected at $20.2 million, down 10.5% from the same quarter last year [2] - The consensus EPS estimate for Personalis has been revised 2% higher in the last 30 days, suggesting a potential for price appreciation [3] Industry Context - Personalis operates within the Zacks Medical - Generic Drugs industry, where Doctor Reddy's (RDY) closed 0.5% lower at $15.72, with a 9.4% return over the past month [4] - Doctor Reddy's EPS estimate for the upcoming report remains unchanged at $0.19, representing a 5% decline compared to the previous year, and it also holds a Zacks Rank of 3 (Hold) [5]

Company Performance - Personalis reported a quarterly loss of $0.18 per share, better than the Zacks Consensus Estimate of a loss of $0.23, and an improvement from a loss of $0.26 per share a year ago, representing an earnings surprise of 21.74% [1] - The company posted revenues of $20.61 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 18.20%, compared to year-ago revenues of $19.53 million [2] - Over the last four quarters, Personalis has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Outlook - Personalis shares have declined approximately 26.3% since the beginning of the year, contrasting with the S&P 500's decline of 3.9% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.24 on revenues of $17.49 million, and for the current fiscal year, it is -$0.94 on revenues of $83.99 million [7] Industry Context - The Medical - Generic Drugs industry, to which Personalis belongs, is currently ranked in the top 17% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the industry outlook can significantly impact stock performance [5][8]

Financial Data and Key Metrics Changes - Company achieved revenues of over $20,600,000 in Q1 2025, representing a 6% increase compared to $19,500,000 in the same period last year [24][9] - Biopharma revenue grew to $13,600,000, a 39% increase from $9,800,000 in Q1 2024 [24][20] - Gross margin improved to 35% from 28.1% year-over-year, primarily due to a favorable customer mix [25][26] - Net loss for Q1 2025 was $15,800,000 compared to $13,000,000 in the prior year [27] Business Line Data and Key Metrics Changes - Clinical diagnostic business had its highest quarterly revenue to date, contributing to overall revenue growth [9] - Molecular tests delivered increased by 52% to 2,184 tests compared to 1,441 in Q4 2024 [10] - The company is tracking to achieve 30% to 40% quarter-over-quarter growth in molecular results [9] Market Data and Key Metrics Changes - The MRD testing market is expected to mature into a $20,000,000,000 market, with Personalis positioned for success [7] - Approximately 40% of MRD positive results are in the ultra-sensitive range, which is a key differentiator [11] Company Strategy and Development Direction - The company is focused on a "win in MRD" strategy, emphasizing customer care and robust experience [12] - Plans to deepen clinical evidence and achieve reimbursement for three indications: breast cancer, lung cancer, and immunotherapy monitoring [12][13] - The company aims to expand its tumor profiling product portfolio to capture additional business from biopharma [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving reimbursement for at least two indications in 2025 [13] - The company is optimistic about the potential of its colorectal cancer data to drive future revenue [18] - Management highlighted the importance of maintaining a balance between growth and cost management in the absence of reimbursement [42] Other Important Information - Cash and cash equivalents at the end of Q1 2025 were $185,700,000, providing a comfortable runway for growth objectives [9] - The company raised approximately $17,800,000 through common stock sales during the quarter [28] Q&A Session Summary Question: Will the company steer its commercial organization towards breast cancer patients if reimbursement comes through this year? - Management confirmed that efforts are already focused on breast cancer, lung cancer, and immunotherapy monitoring, with plans to accelerate once reimbursement is clear [32][33] Question: What is the retention rate of doctors ordering tests? - Management reported high retention rates, with several hundred physicians now ordering tests, a mix of new and recurring orders [35][36] Question: How does the company view the growth in marketing efforts pre- and post-reimbursement? - Management indicated that they are currently metering growth but could accelerate efforts significantly once reimbursement is achieved [40][41] Question: Can the company provide an update on the Victory study data? - Management expressed satisfaction with the interim results, noting high sensitivity in detecting recurrences in colorectal cancer patients [54][55] Question: What is the commercialization strategy following the MolDXPress filing? - Management reiterated confidence in tracking ahead of schedule for reimbursement approvals and highlighted the potential for catch-up revenue once positive decisions are made [74][75]

Financial Data and Key Metrics Changes - Company achieved revenues of over $20,600,000 in Q1 2025, representing a 6% increase compared to $19,500,000 in the same period last year [24] - Biopharma revenue grew to $13,600,000, a 39% increase from $9,800,000 in Q1 2024 [24][21] - Gross margin improved to 35% from 28.1% year-over-year, primarily due to a favorable customer mix [26] - Net loss for Q1 was $15,800,000 compared to $13,000,000 in the prior year [28] Business Line Data and Key Metrics Changes - Clinical diagnostic business had its highest quarterly revenue to date, contributing to overall revenue growth [8] - Molecular tests delivered increased by 52% to 2,184 tests compared to 1,441 in Q4 2024 [10] - The company expects 30% to 40% quarter-over-quarter growth in molecular results for 2025 [9] Market Data and Key Metrics Changes - The MRD testing market is projected to mature into a $20,000,000,000 market, with Personalis positioned for success [6] - Approximately 40% of MRD positive results are in the ultra-sensitive range, which is a key differentiator [11] Company Strategy and Development Direction - The company is focused on a "win in MRD" strategy, emphasizing customer care and robust experience [12] - Plans to deepen clinical evidence and achieve reimbursement for three indications: breast cancer, lung cancer, and immunotherapy monitoring [12] - The company is targeting to achieve reimbursement for at least two indications in 2025 [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue guidance of $80,000,000 to $90,000,000 for 2025, despite potential reimbursement timing variability [30] - The company is optimistic about the impact of its ultra-sensitive MRD tests on patient management and outcomes [22] Other Important Information - Cash and cash equivalents at the end of the quarter were $185,700,000, providing a comfortable runway for growth objectives [8] - The company raised approximately $17,800,000 through common stock sales during the quarter [29] Q&A Session Summary Question: Will the company steer its commercial organization towards breast cancer patients if reimbursement comes through this year? - Management confirmed that efforts are already focused on breast cancer, lung cancer, and immunotherapy monitoring, with plans to accelerate once reimbursement is clear [33][34] Question: What is the retention rate of doctors ordering tests? - Management reported high retention rates, with several hundred physicians ordering tests, a mix of new and recurring orders [36] Question: How does the company view the growth in marketing efforts pre- and post-reimbursement? - Management indicated that they are currently metering growth but can accelerate efforts significantly once reimbursement is achieved [40][41] Question: Can the company provide insights on the demographics of patients in the Victory study? - Management noted that the study included a cross-section of colorectal cancer patients across all stages, with high sensitivity in detecting recurrences [55] Question: What is the company's confidence level regarding reimbursement approval timelines? - Management expressed confidence in the process, stating that they have not seen any impact from changes in Washington on their timelines [92]

PART I — FINANCIAL INFORMATION [Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Personalis, Inc. for the three months ended March 31, 2025, covering balance sheets, operations, and cash flows [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets slightly increased to **$273,308 thousand**, with total liabilities decreasing and stockholders' equity rising Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $71,001 | $91,415 | | Short-term investments | $114,687 | $93,594 | | Total current assets | $206,422 | $203,015 | | Total assets | $273,308 | $270,268 | | **Liabilities & Stockholders' Equity** | | | | Total current liabilities | $29,892 | $31,126 | | Total liabilities | $65,963 | $67,311 | | Total stockholders' equity | $207,345 | $202,957 | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2025, revenue increased 6% to **$20,605 thousand**, with net loss widening to **$15,750 thousand** due to a prior-year non-cash gain Q1 2025 vs Q1 2024 Statement of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $20,605 | $19,525 | | Cost of revenue | $13,398 | $14,032 | | Loss from operations | $(17,696) | $(18,880) | | Other income (expense), net | $(46) | $4,569 | | Net loss | $(15,750) | $(12,968) | | Net loss per share | $(0.18) | $(0.26) | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash used in operating activities improved to **$17,961 thousand**, with financing activities providing **$20,087 thousand** Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(17,961) | $(20,413) | | Net cash (used in) provided by investing activities | $(22,542) | $6,301 | | Net cash provided by financing activities | $20,087 | $1,129 | | Net change in cash, cash equivalents and restricted cash | $(20,414) | $(13,003) | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue disaggregation, and balance sheet components, highlighting significant customer concentration - The company operates as one reportable segment, providing advanced cancer genomic tests and services, and expects to continue incurring losses[47](index=47&type=chunk)[48](index=48&type=chunk) Customer Concentration (Q1 2025) | Customer | Revenue % | Accounts Receivable % | | :--- | :--- | :--- | | Moderna, Inc. | 27% | 14% | | VA MVP | 20% | 11% | | Natera, Inc. | 12% | * | | Pfizer Inc. | * | 26% | | AstraZeneca UK Limited | * | 18% | *Less than 10% Revenue by Customer Type (in thousands) | Customer Type | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Pharma tests and services | $13,594 | $9,812 | | Enterprise sales | $2,465 | $7,972 | | Population sequencing | $4,213 | $1,500 | | Clinical diagnostic | $308 | $195 | | Other | $25 | $46 | | **Total revenue** | **$20,605** | **$19,525** | - In Q1 2025, the company sold **3,064,152 shares** under its At-the-Market (ATM) facility, receiving **$17,800 thousand** in net proceeds[56](index=56&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial performance, highlighting a 6% revenue increase driven by Pharma tests and Population sequencing, and details liquidity [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Total revenue for Q1 2025 increased 6% to **$20,605 thousand**, driven by Pharma tests and Population sequencing, partially offset by decreased Enterprise sales Revenue Change by Customer Type (Q1 2025 vs Q1 2024, in thousands) | Customer Type | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Pharma tests and services | $13,594 | $9,812 | $3,782 | 39% | | Enterprise sales | $2,465 | $7,972 | $(5,507) | (69%) | | Population sequencing | $4,213 | $1,500 | $2,713 | 181% | | Clinical diagnostic | $308 | $195 | $113 | 58% | | **Total revenue** | **$20,605** | **$19,525** | **$1,080** | **6%** | - The company expects total revenue from Natera in 2025 to be lower than in 2024 and does not expect a long-term commercial relationship beyond 2025[145](index=145&type=chunk) - The increase in Selling, general and administrative expenses was driven by an **$800 thousand** increase in marketing and personnel costs related to the NeXT Personal Dx launch[152](index=152&type=chunk)[153](index=153&type=chunk) - Other income in Q1 2024 included a **$4,800 thousand** non-cash gain from Tempus Warrants, contributing to the higher net loss in Q1 2025[156](index=156&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, Personalis had **$185,700 thousand** in cash and investments, deemed sufficient for the next 12 months, with **$17,800 thousand** raised from ATM facility - The company anticipates that current cash, cash equivalents, and short-term investments are sufficient to fund operations for at least the next **12 months**[158](index=158&type=chunk) - Cash used in operating activities decreased to **$18,000 thousand** in Q1 2025 from **$20,400 thousand** in Q1 2024, due to higher gross margin and reduced working capital needs[161](index=161&type=chunk) - Cash provided by financing activities increased significantly to **$20,100 thousand** in Q1 2025, primarily due to **$16,300 thousand** higher net proceeds from ATM stock sales[163](index=163&type=chunk) - Capital expenditures are expected to be approximately **$8,000 thousand** in 2025 to expand NeXT Personal Dx capacity[167](index=167&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is not required to provide this information as it qualifies as a "smaller reporting company" - As a "smaller reporting company," Personalis is not required to provide the information requested under this item[174](index=174&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal controls - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective[175](index=175&type=chunk) - No changes were identified in the company's internal control over financial reporting that materially affected or are reasonably likely to materially affect controls[176](index=176&type=chunk) PART II — OTHER INFORMATION [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company states that it is subject to various claims in the ordinary course of business but is not currently involved in any material legal proceedings - As of March 31, 2025, the Company was not involved in any material legal proceedings[116](index=116&type=chunk)[179](index=179&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) This section details significant risks, including a history of losses, customer concentration, intense competition, potential FDA regulatory actions, cybersecurity threats, and intellectual property litigation [Operational, Strategic and Business Risks](index=38&type=section&id=Operational%2C%20Strategic%20and%20Business%20Risks) The company faces significant operational and strategic risks, including a history of losses, substantial customer concentration, and reliance on a single facility and sole supplier - The company has a history of net losses, with a net loss of **$16,000 thousand** for Q1 2025 and an accumulated deficit of **$566,000 thousand** as of March 31, 2025[181](index=181&type=chunk) - The company has substantial customer concentration, with Natera accounting for **30%** of revenue and Moderna for **28%** in FY2024[191](index=191&type=chunk) - The company does not expect a long-term commercial relationship with Natera beyond 2025, as Natera plans to bring sequencing services in-house[193](index=193&type=chunk) - The company relies on a sole supplier, Illumina, for its sequencers and reagents, where supply disruption could significantly impact operations[208](index=208&type=chunk) [Regulatory, Legal and Cybersecurity Risks](index=61&type=section&id=Regulatory%2C%20Legal%20and%20Cybersecurity%20Risks) The company faces significant regulatory risks from potential FDA enforcement on LDTs, compliance with complex healthcare laws, cybersecurity threats, and evolving data privacy regulations - The company's LDTs are subject to FDA enforcement discretion, and a change in stance could lead to substantial costs and delays for premarket approval[249](index=249&type=chunk)[253](index=253&type=chunk) - The company's operations are subject to complex laws like the Anti-Kickback Statute, Stark Law, and HIPAA, with violations carrying significant penalties[301](index=301&type=chunk) - The company faces significant cybersecurity risks, including ransomware and supply-chain attacks, potentially compromising sensitive data and leading to litigation[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) - The company is subject to evolving U.S. and foreign data privacy laws (e.g., CCPA, GDPR), imposing strict obligations and risks of substantial fines[288](index=288&type=chunk)[289](index=289&type=chunk)[291](index=291&type=chunk) [Intellectual Property Risks](index=86&type=section&id=Intellectual%20Property%20Risks) The company's success depends on avoiding third-party patent infringement and protecting its own IP, facing risks of costly litigation and challenges in patent enforcement - The company faces a high risk of litigation for intellectual property infringement, which could be costly and prevent the sale of its tests[323](index=323&type=chunk)[325](index=325&type=chunk) - Recent legal proceedings include two of the company's patents being challenged and invalidated during inter partes reviews by Foresight Diagnostics[344](index=344&type=chunk)[345](index=345&type=chunk) - The company's ability to obtain and enforce patents is uncertain due to evolving case law regarding the patentability of diagnostic methods[333](index=333&type=chunk) - The company relies on trade secrets and confidentiality agreements, but these may not provide adequate protection, risking competitive harm[348](index=348&type=chunk) [Financial and Market Risks](index=100&type=section&id=Financial%20and%20Market%20Risks) The company faces financial and market risks, including the potential need for additional capital, stock price volatility, concentrated ownership, and potential stock dilution - The company may need to raise additional capital, which could be impacted by worsening global economic conditions and market volatility[364](index=364&type=chunk)[366](index=366&type=chunk) - The market price of the company's common stock is volatile, influenced by operating results, competition, and major customer announcements[367](index=367&type=chunk)[368](index=368&type=chunk) - Insiders and holders of over **5%** of common stock may exercise significant control, potentially influencing corporate matters and stock price[379](index=379&type=chunk) - The company's ability to use its net operating loss carryforwards of approximately **$324,100 thousand** (federal) and **$302,500 thousand** (state) may be limited by ownership changes[386](index=386&type=chunk) [Other Information](index=114&type=section&id=Item%205.%20Other%20Information) This section discloses that an officer of the company adopted a written trading plan under Rule 10b5-1 during the last fiscal quarter - Stephen Moore, SVP and Chief Legal Officer, adopted a Rule 10b5-1 trading plan on March 24, 2025, to sell up to **285,366 shares** of common stock[409](index=409&type=chunk) [Exhibits](index=115&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including certifications by the Principal Executive Officer and Principal Financial Officer, and the Inline XBRL documents - The exhibits include the CEO and CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906, and Inline XBRL data for financial statements[413](index=413&type=chunk)

[Personalis Q1 2025 Earnings Release](index=1&type=section&id=Personalis%20Q1%202025%20Earnings%20Release) [Financial & Business Highlights](index=1&type=section&id=Recent%20Business%20Highlights) Personalis reported a strong start to 2025, with total revenue increasing 6% year-over-year to $20.6 million, driven by a 39% growth in pharma tests and services - The company's "Win-in-MRD" strategy is showing positive results, with significant growth in testing volume and key data submissions for Medicare coverage[3](index=3&type=chunk) Clinical Test Volume Growth (Sequential) | Metric | Q1 2025 | Q4 2024 | Change | | :--- | :--- | :--- | :--- | | Total Molecular Tests Delivered | 2,184 | 1,441 | +52% | - Presented compelling clinical data for NeXT Personal in colorectal cancer (CRC) at AACR, showing **100% detection of eventual recurrence prior to imaging**[4](index=4&type=chunk) - Advanced its commercialization efforts by publishing a pivotal breast cancer study and submitting a dossier to Medicare for reimbursement[4](index=4&type=chunk) [Detailed Financial Results (Q1 2025 vs Q1 2024)](index=1&type=section&id=First%20Quarter%202025%20Financial%20Results%20Compared%20with%202024) For Q1 2025, total revenue grew 6% to $20.6 million, primarily fueled by a 39% increase in pharma tests and services, which reached $13.6 million Q1 2025 Key Financial Metrics vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $20.6M | $19.5M | +6% | | Gross Margin | 35.0% | 28.1% | +6.9 p.p. | | Net Loss | $15.8M | $13.0M | +21.5% | | Net Loss Per Share | ($0.18) | ($0.26) | N/A | Q1 2025 Revenue Breakdown vs. Q1 2024 | Revenue Segment | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Pharma tests and services | $13.6M | $9.8M | +39% | | Population sequencing & enterprise | $6.7M | $9.5M | -29% | - The company ended the quarter with **$185.7 million in cash, cash equivalents, and short-term investments**; cash usage from operations and capital additions was **$20.5 million**[6](index=6&type=chunk) - Raised **$17.8 million in net proceeds** during the quarter through its At-The-Market (ATM) program[6](index=6&type=chunk) [Financial Outlook (Q2 & Full Year 2025)](index=2&type=section&id=Second%20Quarter%20and%20Full%20Year%202025%20Outlook) Personalis provided guidance for Q2 2025, expecting total revenue between $19.5 million and $20.5 million, and updated its full-year outlook to reflect improved profitability Q2 2025 Financial Guidance | Metric | Guidance Range | | :--- | :--- | | Total Company Revenue | $19.5M - $20.5M | | Revenue from Pharma & Other | $13.0M - $14.0M | | Revenue from Pop Sequencing & Enterprise | ~$6.5M | Full Year 2025 Financial Guidance (Updated) | Metric | Guidance Range | Prior Guidance | | :--- | :--- | :--- | | Total Company Revenue | $80M - $90M | No Change | | Gross Margin | 22% - 24% | 21% - 23% | | Net Loss | ~$83M | ~$85M | | Cash Usage | ~$75M | $75M - $80M | [Financial Statements](index=4&type=section&id=Financial%20Statements) This section presents the company's consolidated financial statements, including statements of operations, supplemental revenue information, and balance sheets [Consolidated Statements of Operations](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20(Unaudited)) For the three months ended March 31, 2025, Personalis recorded revenues of $20.6 million and a net loss of $15.8 million, with a slight improvement in loss from operations Consolidated Statements of Operations (Unaudited, In thousands) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2025** | **2024** | | **Revenue** | **$ 20,605** | **$ 19,525** | | Cost of revenue | 13,398 | 14,032 | | Research and development | 12,640 | 12,771 | | Selling, general and administrative | 12,263 | 11,602 | | **Total costs and expenses** | **38,301** | **38,405** | | **Loss from operations** | **(17,696)** | **(18,880)** | | Interest income | 2,027 | 1,359 | | Other income (expense), net | (46) | 4,569 | | **Net loss** | **$ (15,750)** | **$ (12,968)** | [Supplemental Revenue Information](index=5&type=section&id=SUPPLEMENTAL%20REVENUE%20INFORMATION%20(Unaudited)) Revenue from pharma tests and services was the primary growth driver, increasing 39% to $13.6 million, while enterprise sales significantly decreased Supplemental Revenue Information (Unaudited, In thousands) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2025** | **2024** | | Pharma tests and services | $ 13,594 | $ 9,812 | | Enterprise sales | 2,465 | 7,972 | | Population sequencing | 4,213 | 1,500 | | Clinical diagnostic | 308 | 195 | | Other | 25 | 46 | | **Total revenue** | **$ 20,605** | **$ 19,525** | [Consolidated Balance Sheets](index=6&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS%20(Unaudited)) As of March 31, 2025, Personalis maintained strong liquidity with $185.7 million in cash and investments, and total assets of $273.3 million Consolidated Balance Sheet Highlights (Unaudited, In thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $ 71,001 | $ 91,415 | | Short-term investments | 114,687 | 93,594 | | **Total current assets** | **206,422** | **203,015** | | **Total assets** | **$ 273,308** | **$ 270,268** | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | 29,892 | 31,126 | | **Total liabilities** | **65,963** | **67,311** | | **Total stockholders' equity** | **207,345** | **202,957** | | **Total liabilities and stockholders' equity** | **$ 273,308** | **$ 270,268** |

The Hanover Insurance Group (THG) is expected to register an improvement in its top and bottom lines when it reports first-quarter 2025 results on April 30, after the closing bell.The Zacks Consensus Estimate for THG’s first-quarter revenues is pegged at $1.7 billion, indicating a 6.5% increase from the year-ago reported figure. The consensus estimate for the bottom line is pegged at $3.58 per share. The estimate suggests a year-over-year increase of 144.4%. The Zacks Consensus Estimate for THG’s first-quar ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $16.8 million, a 15% decrease from $19.7 million in Q4 2023, primarily due to lower volume from Natera and the VA MVP program [38][39] - Full year 2024 revenue was $84.6 million, representing a 15% increase compared to $73.5 million in 2023, driven by a 60% year-over-year growth in biopharma revenue [13][43] - Gross margin for Q4 2024 was 27.1%, up from 26.5% in Q4 2023, while full year gross margin improved to 31.7% from 24.8% in 2023 [40][44] - Net loss for Q4 2024 was $16.4 million, reduced from $26.6 million in Q4 2023, and the full year net loss was $81.3 million compared to $108.3 million in 2023 [42][47] Business Line Data and Key Metrics Changes - Biopharma revenue increased by 60% year-over-year, significantly contributing to overall revenue growth, particularly from Moderna's Phase 3 melanoma trial [13][43] - The company delivered 1,441 molecular tests in Q4 2024, a 52% increase from 945 tests in Q3 2024, indicating strong demand for the NeXT Personal test [21] Market Data and Key Metrics Changes - The MRD testing market is projected to mature into a $20 billion market, with Personalis positioned for success through its ultra-sensitive MRD test, NeXT Personal [8] - The company expects to achieve Medicare reimbursement for at least two indications in 2025, focusing on breast cancer, lung cancer, and immunotherapy monitoring [24][25] Company Strategy and Development Direction - The company has laid out a multiyear strategy focused on winning in the MRD testing market, with plans to ramp up clinical volume and achieve reimbursement [19][35] - A long-term extension of the agreement with Moderna is expected to be a key driver of revenue growth over the next decade [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, anticipating continued test volume growth of 30% to 40% each quarter until reimbursement is achieved [22][35] - The company aims to deepen clinical evidence and achieve reimbursement for its tests, with a robust pipeline of over 20 studies in progress [26][30] Other Important Information - The company raised approximately $115 million in 2024 through strategic investments, enhancing its liquidity position with $185 million in cash at year-end [18][48] - Operating expenses for the full year 2024 were reduced to $95.1 million from $128.1 million in 2023, primarily due to headcount reductions [45] Q&A Session Summary Question: Should we read into the guidance that there are continuing Natera revenues? - The guidance includes revenue from both Natera and other enterprise customers, with the VA contract contributing approximately $7.5 million to $8 million [54] Question: What is the number of customers using the NeXT Dx test and the reorder rate? - Approximately 300 doctors used the test last quarter, with a high retention rate in the high 90s [56][58] Question: How should we think about the phasing of the top line for 2025? - Revenue is expected to be split approximately half in the first half and half in the second half of 2025, with biopharma revenue skewed towards the second half [63] Question: What is the expected impact on gross margins due to unreimbursed tests? - The gross margin guidance for 2025 is 21% to 23%, with significant headwinds expected from unreimbursed test costs [66] Question: Will the company look to the capital markets this year? - The company has sufficient capital to reach cash flow break-even and will evaluate the need for additional capital based on business developments [83]

Company Performance - Personalis reported a quarterly loss of $0.23 per share, better than the Zacks Consensus Estimate of a loss of $0.25, and an improvement from a loss of $0.46 per share a year ago, representing an earnings surprise of 8% [1] - The company posted revenues of $16.8 million for the quarter ended December 2024, slightly surpassing the Zacks Consensus Estimate by 0.06%, but down from $19.68 million in the same quarter last year [2] - Over the last four quarters, Personalis has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Outlook - Personalis shares have declined approximately 22.5% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.26 on revenues of $15.22 million, and for the current fiscal year, it is -$0.99 on revenues of $85.13 million [7] - The estimate revisions trend for Personalis is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Medical - Generic Drugs industry, to which Personalis belongs, is currently ranked in the bottom 22% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Personalis's stock performance [5]