Precipio (PRPO) Q3 2025 earnings summary

Executive summary

• Achieved first-ever positive adjusted EBITDA of $469,000 and generated $285,000 in operating cash flow in Q3 2025, marking a strategic shift from break-even focus to growth reinvestment.

• Q3 2025 revenue reached $6.8 million, up 30% year-over-year and 20% quarter-over-quarter, with double-digit growth in both Pathology Services and Products Divisions.

• Focused on cancer diagnostics, leveraging proprietary technology and CLIA labs in Connecticut and Nebraska to develop and commercialize diagnostic products and services.

• Addressed operational disruptions from a Change Healthcare cyberattack and received Employee Retention Credit, both impacting non-recurring income.

• Share price has tripled since early 2025, reflecting market confidence in operational and financial progress.

Financial highlights

• Q3 2025 revenue was $6.8M, up 30% year-over-year and 20% quarter-over-quarter; nine-month net sales were $17.4M, up 33%.

• Gross profit for Q3 2025 was $3.0M (44% margin); Pathology Services margin rose to 46%, while Products Division margin declined to 30% due to growth investments.

• Net loss for Q3 2025 was $0.08M; nine-month net loss was $0.9M, a significant improvement from $3.9M loss in 2024.

• Adjusted EBITDA was $469,000 in Q3 2025, up from $100,000 a year ago and a loss of $78,000 in Q2 2025.

• Operating cash flow was $285,000 in Q3 2025, reversing a $148,000 burn in Q2.

Outlook and guidance

• Priorities include sustaining double-digit growth, expanding margins, reinvesting cash into growth initiatives, and increasing share price liquidity through investor engagement.

• Expectation to exceed 50% gross margin by mid-2026 as both divisions scale on existing infrastructure.

• Full repayment of Change Healthcare obligation by Q1 2026 will further boost operational cash retention.

• Substantial doubt remains about the ability to continue as a going concern over the next 12 months without additional revenue growth or financing.

• Assessing the impact of the One Big Beautiful Bill Act of 2025 on tax and regulatory environment.