Paragon Advanced Labs (PALS) Q2 2026 earnings summary

Executive summary

• Revenue rose 85% sequentially to $4.1M in Q2 2026, over five times Q2 2025 levels.

• Gross profit margin turned positive at 10.3% as laboratory utilization and sample volumes increased.

• Operational leverage improved, with significant available capacity for further growth.

• Recent commercial wins and facility expansions are expected to sustain momentum into H2 2026.

Financial highlights

• Q2 2026 revenue: $4.09M (Q1 2026: $2.21M; Q2 2025: $0.79M).

• Gross profit: $0.42M in Q2 2026 vs. gross loss of $0.22M in Q1 2026.

• Gross margin: 10.3% in Q2 2026, up from -9.8% in Q1 2026 and -74.3% in Q2 2025.

• Six-month revenue to June 30, 2026: $6.3M, up 142% year-over-year.

• Six-month gross profit: $0.2M vs. gross loss of $0.1M in prior year.

Outlook and guidance

• Management expects continued revenue growth and gross profitability as commercial momentum persists.

• Sample preparation and freight costs expected to moderate as internal capacity expands.

• Sparks, Nevada lab expansion and Thunder Bay facility ramp-up to drive further capacity and growth.