Precipio (PRPO) Q2 2025 earnings summary

Executive summary

• Q2 2025 net sales increased 27% year-over-year to $5.7 million, with both Pathology Services and Products Divisions contributing to growth and improved gross margins.

• Gross margin improved to 43% for the quarter, up from 39% in the prior year, reflecting economies of scale and better case mix.

• Net income for Q2 2025 was $74,000–$0.1 million, compared to a net loss of $1.2 million in Q2 2024, aided by non-recurring credits.

• Strategic investments in lab and facility expansion, as well as equipment, modestly impacted near-term break-even trajectory but support future growth.

• Management expects to complete repayment of the Change Healthcare loan by year-end and anticipates ending 2025 cash flow positive and debt-free.

Financial highlights

• Q2 2025 net sales: $5.7 million (up $1.2 million year-over-year); six months: $10.6 million (up $2.7 million year-over-year).

• Gross margin improved from 39% to 43% year-over-year.

• Adjusted EBITDA improved to ($78K) from ($609K) year-over-year, an 87% improvement.

• Cash at June 30, 2025: $1.1 million; net cash provided by operating activities for six months: $0.3 million.

• Cash used by operations decreased 71% year-over-year to $148K in Q2 2025.

Outlook and guidance

• Management expects to end 2025 cash flow positive and debt-free, with no substantial capital expenditures or significant staff additions anticipated.

• Q3 is expected to show continued growth, supported by a strong pipeline of new customers in onboarding stages.

• Gross margins are projected to level off at around 50% by 2026 as scale efficiencies increase.

• Substantial doubt remains about the ability to continue as a going concern over the next twelve months without additional revenue generation or financing.

• The company is assessing the impact of the newly enacted One Big Beautiful Bill Act (OBBBA) on its business and tax position.