Precipio Announces its Q1-2025 Financial Results

Core Insights - Precipio, Inc. reported strong financial performance in Q1-2025, with a 43% year-over-year revenue increase, reaching $4.9 million [9][10] - The company anticipates continued revenue growth and a return to positive operating cash flow by Q2 or Q3 of 2025, driven by momentum in its Product business and expanded reimbursement opportunities in Pathology Services [2][8] Financial Performance - Q1-2025 revenues increased by 43% year-over-year, but decreased by 9.5% from Q4-2024 due to seasonal factors and onboarding delays [9] - Adjusted EBITDA improved significantly to ($ 108K) from ( $1,409K) year-over-year, marking a 92% improvement [9] - Cash used in operations decreased to ($ 44K) in Q1-2025 from ( $667K) in Q1-2024, an improvement of 93% [9] Product Division Highlights - The Products Division onboarded one new customer and launched two new panels in Q1-2025, with expectations for increased orders in Q2 [5] - Gross margins for the Products Division increased from 37% to 51% year-over-year [10] Pathology Services Division Highlights - Pathology Services revenues grew 54% year-over-year, with test volume increasing by 46% [7] - The division received MolDx approval for NGS testing, allowing Medicare billing, which is expected to positively impact future revenues [7] Operational Efficiency - Operating expenses as a percentage of net revenue decreased from 87% to 61% year-over-year, with management maintaining flat operating expenses at approximately$ 3 million per quarter [9] - Overall gross margins improved from 27% to 43% year-over-year, with expectations for continued growth as the revenue mix shifts towards more product sales [10]