Full Press Release Details
its Q1-2025 Financial Results
Conference call to follow tomorrow, May 15 at 5
14th, 2025) - Specialty cancer diagnostics company Precipio, Inc. (NASDAQ:
PRPO), filed its 10-Q report today. The following are the highlights of the Company's
financial performance and outlook for 2025.
"We remain confident
in the Company's trajectory, supported by strong year-over-year revenue growth, improved gross margins, disciplined cost control
and increasing operational efficiency", said Ilan Danieli, Precipio's CEO. "With our expectation of momentum building
in our Product business pipeline, as well as the expanded reimbursement opportunities in Pathology Services, we anticipate continued revenue
growth and a return to positive operating cash flow by Q2 or Q3. We believe 2025 will be a transformative year in which scalable growth
translates into improved results and long-term shareholder value."
in Q2 we have already received approximately $400,000 in non-recurring income from a refundable employee retention credit that was part
of the Coronavirus Aid, Relief and Economic Security Act (CARES Act), which the U.S. Congress enacted in March of 2020.
In Q1-2025 the Company
successfully onboarded one new customer and launched two new panels, and is anticipating increased orders in Q2 and going forward. Additionally,
two existing customers began their validations for four new panels collectively. Customer meetings generated by our distributors are trending
upwards as well, a positive indication that the work developing these sales channels is beginning to bear fruit.
Additionally, the recent
reversal of the FDA ruling regarding Laboratory Developed Tests (LDTs) removes a barrier that concerned certain laboratories, causing
them to pause their engagement with the Company until the courts resolved this matter.
In Q1-2025, Pathology
Services division revenues grew 54% YoY, and test volume increased by 46% YoY from Q1-2024. Additionally, 11 ordering physicians began
using our Pathology Services for the first time. Precipio also received MolDx approval for NGS testing, enabling Medicare billing for
patients - a milestone that we anticipate will positively impact future revenue from Medicare populations.
Company management expects
that Pathology Services division's gross margins will stabilize at the mid-40%, and that Product division's gross margins
will continue to grow as increased revenue in 2025 drives greater production efficiencies. We expect that the Company's combined
margins will continue to climb during 2025 as the revenue mix includes more product sales.
Operating expenses as
a percent of net revenue have dropped from 87% to 61% YoY. This decrease is mostly due to the Company's ability to maintain operating
expenses flat at approximately $3M per quarter while increasing revenues 43% YoY.
While our financial outlook
is based on the best available information and management's current expectations, it is inherently subject to a variety of risks,
assumptions, and uncertainties that may cause actual outcomes to differ materially. Investors are encouraged to review the Forward-Looking
Statements section below for a detailed understanding of these factors.
EBITDA Reconciliation and Explanation
EBITDA (Earnings Before
Interest, Taxes, Depreciation, and Amortization) is a non-GAAP financial measure that is widely used to evaluate operational performance
and pre-tax profitability. Management believes Adjusted EBITDA provides investors with a useful perspective on the company's financial
health, particularly where non-cash amortization has an important impact on profitability.
Adjusted EBITDA as we
define it will also exclude the non-cash costs of employee stock options and unusual, one-time costs.
The table is a reconciliation
of Net Income, EBITDA and Adjusted EBITDA for the first quarter of 2025 and 2024:
The full unaudited condensed consolidated financial statements, including the balance sheet and statement of cash flows as of and for
the three months ended March 31, 2025 and 2024, are included in the Company's Quarterly Report on Form 10-Q filed with the Securities
and Exchange Commission on May 14, 2025, which is available on the SEC's website at www.sec.gov and on the Company's investor
Shareholder Conference
At 5 pm ET on May 15,
2025, the Company will host its quarterly shareholder call where management will provide more details as to the Company's quarterly
performance and outlook going forward. Please join us by dialing in at 844-695-5519 (international callers dial 1-412-902-6760). Callers
may also pre-register using this link.
is a healthcare biotechnology company focused on cancer diagnostics. Our mission is to address the pervasive problem of cancer misdiagnoses
by developing solutions in the form of diagnostic products and services. Our products and services deliver higher accuracy, improved laboratory
workflow, and ultimately better patient outcomes, which reduce healthcare expenses. Precipio develops innovative technologies in our laboratory
where we design, test, validate, and use these products clinically, improving diagnostic outcomes. Precipio then commercializes these
technologies as proprietary products that serve the global laboratory community and further scales Precipio's reach to eradicate
Availability of Other Information About Precipio
For more information, please visit the Precipio
website at https://www.precipiodx.com/ or follow Precipio on X (formerly Twitter) (@PrecipioDx)
and LinkedIn (Precipio) and on Facebook. Investors and
others should note that we communicate with our investors and the public using our company website (https://www.precipiodx.com),
including, but not limited to, company disclosures, investor presentations and FAQs, Securities and Exchange Commission filings, press
releases, public conference call transcripts and webcast transcripts, as well as on X and LinkedIn. The information that we post on our
website or on X or LinkedIn could be deemed to be material information. As a result, we encourage investors, the media and others interested
to review the information that we post there on a regular basis. The contents of our website or social media shall not be deemed incorporated
by reference in any filing under the Securities Act of 1933, as amended.
Forward-Looking Statements
This press release contains "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered
forward-looking statements, including, without limitation, statements regarding the targets set herein and related timing. Except for
historical information, statements about future volumes, sales, growth, costs, cost savings, margins, earnings, earnings per share, diluted
earnings per share, cash flows, adjusted EBITDA, plans, objectives, expectations, growth or profitability and our potential to reach financial
independence are forward-looking statements based on management's estimates, beliefs, assumptions and projections. Words such as
"could," "may," "expects," "anticipates," "will," "targets," "goals,"
"projects," "intends," "plans," "believes," "seeks," "estimates,"
"predicts," and variations on such words, and similar expressions that reflect our current views with respect to future events
and operational, economic and financial performance, are intended to identify such forward-looking statements. These forward-looking statements
are only predictions based on management's current expectations. These statements are neither promises nor guarantees, but involve
known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be
materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including,
but not limited to, the important factors discussed under the caption "Risk Factors" in our Annual Report on Form 10-K for
the fiscal year ended December 31, 2024, and our other reports filed with the U.S. Securities and Exchange Commission. Any such forward-looking
statements represent management's estimates as of the date of this press release only. While we may elect to update such forward-looking
statements at some point in the future, except as required by law, we disclaim any obligation to do so, even if subsequent events cause
our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to
the date of this press release.