Precipio(US:PRPO)2025-11-17 23:00Financial 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.