Personalis (PSNL) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $20.6 million, up 6% year-over-year, with over 2,184 molecular tests delivered and strong growth in MRD testing and pharma services, offset by a decline in Natera enterprise sales.

• Biopharma revenue rose 39% year-over-year to $13.6 million, driven by NeXT Personal and ImmunoID NeXT platforms and increased clinical trial samples from Moderna.

• Cash and cash equivalents at quarter-end totaled $185.7 million, supporting growth objectives and ongoing investments.

• Clinical diagnostic business achieved its highest quarterly revenue, with molecular test usage up 52% sequentially and 650% year-over-year.

• Published pivotal studies and submitted for Medicare reimbursement in breast cancer, with additional submissions planned for lung cancer and IO therapy monitoring.

Financial highlights

• Total Q1 2025 revenue was $20.6 million, up from $19.5 million year-over-year; biopharma revenue up 39% to $13.6 million.

• Gross margin improved to 35% from 28.1% year-over-year, primarily due to favorable customer mix; excluding unreimbursed clinical test costs, gross margin would have been 43%.

• Operating expenses were $24.9 million, up slightly from $24.4 million year-over-year, mainly due to higher selling expenses.

• Net loss was $15.8 million (EPS: -$0.18), compared to $13 million prior year (EPS: -$0.26); prior year included a $4.6 million non-cash gain.

• Raised $17.8 million through at-the-market equity offering; cash usage for the quarter was $20.5 million.

Outlook and guidance

• Reiterated 2025 revenue guidance of $80 million-$90 million, with pharma and other customer revenue $62 million-$64 million.

• Q2 2025 revenue expected in the range of $19.5 million-$20.5 million.

• Gross margin guidance for 2025 is 22%-24%, lower than 2024 due to investments ahead of reimbursement.

• Net loss for 2025 projected at ~$83 million, with cash usage of approximately $75 million, reflecting investments in clinical test volume and commercial capabilities.

• Current cash and investments expected to fund operations for at least the next 12 months.