Personalis (PSNL) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $17.2M, down 24% year-over-year, mainly due to declines from Natera and pharma services, partially offset by growth in population sequencing and clinical diagnostics.

• Clinical test volumes surged 59% sequentially to 3,478, with strong physician adoption and expansion of the Tempus partnership to four major cancer indications, including colorectal cancer.

• Net loss for Q2 2025 was $20.1M, compared to $12.8M in Q2 2024, with operating expenses rising to $26.6M.

• Presented pivotal clinical data at ASCO 2025, demonstrating NeXT Personal's predictive power and early cancer detection capabilities.

• Full-year revenue guidance was revised to $70M–$80M due to biopharma project timing variability and sector headwinds.

Financial highlights

• Q2 2025 revenue: $17.2M (down 24% year-over-year); H1 2025 revenue: $37.8M (down 10%).

• Biopharma/pharma tests and services revenue was $11.0M–$11.1M, down 16% year-over-year, mainly due to fewer clinical trial samples from Moderna.

• Population sequencing revenue rose 158% to $3.3M, driven by increased VA MVP sample processing.

• Gross margin was 27.6%, down from 35.6% last year, impacted by unreimbursed clinical test costs and lower fixed overhead absorption.

• Cash and short-term investments stood at $173.2M as of June 30, 2025, with $13.2M used in Q2 operations and capex.

Outlook and guidance

• Q3 2025 revenue expected at $12M–$14M; full-year 2025 revenue now guided to $70M–$80M, down from $80M–$90M.

• Gross margin for 2025 expected at 22%–24%, lower than 2024 due to investment in clinical test volume ahead of reimbursement.

• Net loss for 2025 projected at ~$85M, with cash usage of ~$75M, up from $47M in 2024.

• Clinical revenue guidance narrowed to $3M–$6M, assuming Medicare reimbursement for two indications in Q3/Q4.

• Capital expenditures projected to increase to $7M in 2025 and $13–14M annually in 2026–2027 to expand NeXT Personal Dx capacity.