Precipio (PRPO) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $6.71 million, stable sequentially and up 36% year-over-year, driven by pathology growth and impacted by delayed product shipments and shipment timing.

• Pathology services saw a 63% increase in cases processed year-over-year, supporting revenue growth.

• Commercial expansion and pipeline development added $3 million in annualized pipeline, with total pipeline now at $10 million.

• The business model integrates clinical lab services and proprietary product development for scalable growth and operational efficiency.

• Operates a single segment with two complementary divisions: pathology services and diagnostic products.

Financial highlights

• Net sales for Q1 2026 were $6.71 million, up from $4.93 million in Q1 2025, with pathology revenue at $6.05 million and product revenue at $0.66 million, the latter impacted by shipment delays.

• Gross margin declined to 40–41% from 47% in Q4 2025, mainly due to CMS reimbursement changes and shipment timing.

• Adjusted EBITDA was negative $200,000 to $(0.16) million, down from positive $960,000 in Q4 2025, reflecting non-recurring items and increased hiring costs.

• Net loss (GAAP) was $(1.4) million in Q1 2026, compared to $(0.9) million in Q1 2025.

• Cash flow from operations remained positive at $60,000, with total cash burn at $40,000–$47,000.

Outlook and guidance

• Management expects commercial pipeline expansion and increased revenue conversion in the second half of 2026 as delayed product shipments are recognized.

• Margins anticipated to improve as commercial investments yield results and production scales.

• Substantial doubt remains about the ability to continue as a going concern without additional revenue growth or financing.

• Future performance depends on executing the business plan, generating revenue, and securing financing.

• Operational performance expected to strengthen through 2026, despite potential quarterly fluctuations.