Personalis(US:PSNL)2025-11-04 21:13Financial Performance - Total revenue for Q3 2025 was $14.5 million, a decrease of $11.2 million or 44% compared to Q3 2024, primarily due to a decline in revenue from Natera and population sequencing[133] - Total revenue for the three months ended September 30, 2025, was $14,495,000, a decrease of 44% compared to $25,709,000 in the same period of 2024[148] - Revenue from pharma tests and services decreased by 16% to $13,137,000 in Q3 2025, primarily due to a reduction in clinical trial samples processed for Moderna[150] - Enterprise sales revenue fell by 88% to $650,000 in Q3 2025, attributed to a decrease in samples processed for Natera[151] - Clinical diagnostic revenue increased by 42% to $384,000 in Q3 2025, driven by higher volumes of NeXT Dx tests and reimbursements[154] - The net loss for Q3 2025 was $21.7 million, compared to a net loss of $39.1 million in Q3 2024[145] - Total costs and expenses for the three months ended September 30, 2025, were $37,786,000, a decrease of 6% from $40,091,000 in Q3 2024[155] Operational Highlights - The company delivered 4,388 clinical tests in Q3 2025, representing a 26% sequential increase and a 364% year-over-year growth, driven by the adoption of the NeXT Personal platform[134] - Approximately 552,000 human samples have been sequenced to date, including about 206,000 whole human genomes[132] - The company has submitted a third dossier for Medicare coverage for lung cancer, with three pending indications[134] - The company has expanded its collaboration with Tempus to market NeXT Personal Dx for colorectal cancer, extending the agreement through November 2029[135] Expenses and Liabilities - Research and development expenses for Q3 2025 were $12.2 million, compared to $11.7 million in Q3 2024, indicating a focus on growth in clinical diagnostic offerings[139] - Selling, general and administrative expenses increased to $13.0 million in Q3 2025 from $11.4 million in Q3 2024, reflecting the company's investment in growth[141] - Total liabilities increased to $71.4 million as of September 30, 2025, compared to $67.3 million at the end of 2024[147] Cash and Investments - The company has a cash and cash equivalents balance of $150.5 million as of September 30, 2025, down from $185.0 million at the end of 2024[147] - Cash and cash equivalents as of September 30, 2025, were $150,515,000, down from $185,009,000 at the end of 2024[168] - Net cash used in operating activities increased by 41% to $52,700,000 in the nine months ended September 30, 2025, compared to $37,354,000 in the same period of 2024[172] - The company anticipates that current cash and cash equivalents, along with cash from operations, will be sufficient to fund near-term capital and operating needs for at least the next 12 months[169] - As of September 30, 2025, the company has cash and cash equivalents totaling $150.5 million to fund material cash requirements[175] Future Projections - The company expects variable costs of revenue to increase in 2025 to support planned clinical test volume increases ahead of Medicare reimbursement[176] - Operating expenditures are anticipated to rise slightly above 2024 levels, primarily driven by employee compensation and research and development[177] - Capital expenditures are projected to be approximately $7.0 million in 2025, with expectations of $13.0 million to $14.0 million in 2026 and 2027[178] Accounting Policies - Critical accounting policies include revenue recognition, leases, and common stock warrants, which have the greatest potential impact on financial statements[182] - There have been no material changes to critical accounting policies compared to the previous fiscal year[183]