BIAF Stock Dips After Q3 Earnings Reflect Lower Sales and Wider Loss

Core Viewpoint - bioAffinity Technologies, Inc. (BIAF) has experienced a significant decline in stock value following its third-quarter 2025 results, with shares dropping 21.8% since the earnings release, compared to a 2.2% loss in the S&P 500 Index during the same period [1] Financial Performance - In Q3 2025, bioAffinity reported total revenues of $1.4 million, a decrease of 38.5% from $2.4 million in the same quarter last year, due to a strategic exit from unprofitable pathology services and a focus on CyPath Lung commercialization [2] - CyPath Lung testing revenue increased by 122% year-over-year, driven by higher case volumes and increased physician adoption, particularly within Veterans Administration (VA) medical centers [2] - Operating expenses fell by 13.5% to $3.7 million from $4.3 million, primarily due to lower laboratory-related costs, but the net loss widened to $5.1 million from $2 million a year ago, largely due to non-cash expenses related to warrant revaluations [3] - Loss per share slightly narrowed to $4.74 from $4.84 [3] Operational Metrics - Direct costs decreased by 34.6% year-over-year to $0.9 million from $1.4 million, reflecting efficiency initiatives [4] - Selling, general, and administrative expenses decreased by 6.6%, while depreciation and amortization expenses dropped by 25.1% [4] - Research and development (R&D) spending rose by 20.4%, and clinical development costs increased by 52.9% due to expanded preclinical and clinical work [4] Growth and Adoption - Test volumes for CyPath Lung increased by 97% in the first nine months of 2025 compared to the prior year, with a record quarterly sales level in Q3 2025, climbing 92% from the previous quarter [5] - Management emphasized the importance of marketing initiatives targeting the VA health system, which have shown positive traction [7] Balance Sheet and Cash Position - Cash and equivalents improved significantly to $7.7 million from $1.1 million at year-end 2024, supported by $10.4 million in gross proceeds from equity transactions during the quarter [6] Strategic Focus and Future Plans - Management outlined strategic objectives for 2025, including expanding the sales team, engaging with major VA medical centers, and increasing marketing efforts [11] - The company is advancing companion diagnostic candidates for asthma and chronic obstructive pulmonary disease (COPD), targeting an estimated $26 billion global market [12] Governance and Intellectual Property - bioAffinity strengthened its governance with new board appointments and regained full Nasdaq Capital Market compliance [13] - The company added another U.S. patent protecting its proprietary algorithm used in CyPath Lung, marking its second consecutive quarter of patent portfolio expansion [13]