Interpace Diagnostics Group, Inc.(IDXG) - 2025 Q2 - Quarterly Results

Interpace Biosciences Q2 2025 Financial and Business Results Business & Financial Highlights The company is transitioning to a thyroid testing focus, with Q2 2025 revenue impacted by PancraGEN wind-down, but showing strong July 2025 growth - The company is transitioning to a business focused solely on Thyroid testing following the loss of reimbursement for its PancraGEN test[2][3] - The reported loss includes $1.2 million in one-time charges associated with the wind-down of the PancraGEN business[2][5] - The core Thyroid testing business demonstrated significant year-over-year growth in Q2, with double-digit increases in both volume and revenue[3][4] - Positive momentum continued into Q3, with preliminary revenue for July 2025 reaching $3.3 million, a 54% increase compared to July 2024[2] Second Quarter 2025 Financial Performance Q2 2025 net revenue decreased to $9.2 million, resulting in an operating loss, primarily due to PancraGEN reimbursement loss, despite strong Thyroid segment growth Q2 2025 vs. Q2 2024 Financial Comparison | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $9.2 million | $12.0 million | -23% | | Thyroid Revenue | $8.7 million | Not specified | +25% | | Thyroid Test Volume | Record levels | Not specified | +16% | | Gross Profit % | 57% | 65% | -8 p.p. | | Operating (Loss) Income | ($0.5 million) | $2.6 million | - | | Loss from Continuing Ops | ($0.5 million) | $2.5 million (Income) | - | | Adjusted EBITDA | $0.4 million | $2.8 million | -85.7% | | Cash Collections | $10.8 million | $11.0 million | -1.8% | - Excluding the one-time impact from the PancraGEN reimbursement loss, the Gross Profit percentage would have been 65%, consistent with the prior year quarter[5] Financial Statements The consolidated financial statements show a Q2 2025 net loss, reduced assets and liabilities, and positive operating cash flow offset by financing activities Condensed Consolidated Statements of Operations Interpace reported a Q2 2025 net loss of $640,000, a reversal from prior year income, driven by revenue decline and increased operating expenses Statement of Operations Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue, net | $9,232 | $12,042 | $20,747 | $22,219 | | Gross Profit | $5,276 | $7,806 | $12,646 | $14,117 | | Operating (loss) income | $(468) | $2,632 | $1,362 | $3,746 | | (Loss) income from continuing operations | $(533) | $2,511 | $1,221 | $3,323 | | Net (loss) income | $(640) | $2,437 | $1,007 | $3,145 | Selected Balance Sheet Data As of June 30, 2025, cash and cash equivalents decreased to $502 thousand, with total assets and liabilities also reduced, while the stockholders' deficit improved Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $502 | $1,461 | | Total current assets | $9,504 | $11,773 | | Total assets | $12,335 | $14,792 | | Total current liabilities | $7,149 | $10,615 | | Total liabilities | $13,548 | $17,009 | | Total stockholders' deficit | $(1,213) | $(2,217) | Selected Cash Flow Data For the six months ended June 30, 2025, net cash provided by operating activities was $1,755 thousand, offset by financing activities, resulting in a net decrease in cash Cash Flow Highlights for Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,755 | $1,346 | | Net cash used in investing activities | $(201) | $(225) | | Net cash used in financing activities | $(2,513) | $(2,600) | | Change in cash and cash equivalents | $(959) | $(1,479) | Non-GAAP Financial Measures Adjusted EBITDA, a non-GAAP measure, significantly decreased to $365 thousand in Q2 2025, reflecting adjustments for severance and asset impairment related to the PancraGEN wind-down - Adjusted EBITDA is used by management to measure the cash flow of the ongoing business, defined as income/loss from continuing operations adjusted for specific non-cash and non-recurring items[21] Reconciliation of Adjusted EBITDA (in thousands) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | (Loss) income from continuing operations (GAAP) | $(533) | $2,511 | $1,221 | $3,323 | | Severance & related expense | $524 | $ - | $692 | $ - | | Asset impairment - lab supplies | $198 | $ - | $198 | $ - | | Adjusted EBITDA (Non-GAAP) | $365 | $2,752 | $2,472 | $3,997 | Company Overview Interpace Biosciences specializes in personalized medicine, offering molecular diagnostic tests and pathology services for cancer risk assessment, including commercialized tests for thyroid and lung cancer - Interpace offers specialized services in personalized medicine, focusing on diagnosis and prognostic planning for cancer[6] - The company has three commercialized molecular tests: ThyGeNEXT, ThyraMIRv2 (for thyroid cancer), and RespriDX (for lung cancer)[7] Forward-Looking Statements This section contains forward-looking statements subject to risks and uncertainties, including the company's history of losses, financing needs, and dependence on clinical service reimbursements - The press release contains forward-looking statements regarding future financial and operating performance, which are subject to significant risks and uncertainties[9] - Key risks include the company's history of operating losses, ability to finance its business, dependence on clinical service reimbursements, and the impact of the PancraGEN product reimbursement loss[9]