Interpace Biosciences Reports 22% Revenue Decline in Q1 2026

Interpace Biosciences, Inc. reported a decline in financial performance for the first quarter of 2026, with net revenue decreasing by 22% to $9.0 million compared to $11.5 million in the same period of 2025. This drop in revenue was primarily attributed to the loss of reimbursement for the PancraGEN® test, which ceased acceptance of specimens after May 2, 2025. The company's gross profit also fell to approximately $5.9 million, resulting in a gross profit margin of 65%, slightly up from 64% in the previous year. Operating income from continuing operations was reported at $1.1 million, down from $1.8 million in the prior year, while net income decreased to $721,000 from $1.6 million.

In terms of operational metrics, Interpace's cost of revenue decreased to $3.1 million from $4.1 million, reflecting the discontinuation of the PancraGEN® test. The company managed to reduce its sales and marketing expenses to $2.2 million from $2.8 million, which was a direct result of downsizing its salesforce due to the loss of reimbursement. General and administrative expenses remained relatively stable at approximately $2.5 million, but as a percentage of revenue, these costs increased to 27% from 22% in the previous year, indicating a tighter margin environment.

Strategically, Interpace has shifted its focus towards its molecular diagnostic tests for thyroid cancer, specifically ThyGeNEXT® and ThyraMIR®v2, in light of the challenges faced with the PancraGEN® test. The company also underwent a significant equity restructuring, converting all shares of Series C Preferred Stock into common stock, which resulted in approximately 23.3 million new shares being issued. This conversion increased the total number of common shares outstanding to 27.7 million as of March 31, 2026.

As of the end of the first quarter, Interpace reported total current assets of $10.0 million and current liabilities of $4.0 million, resulting in a current ratio of 2.5. The company had cash and cash equivalents of $2.6 million, which increased to approximately $2.9 million by May 1, 2026. Interpace continues to explore various strategic alternatives for funding, including potential equity and debt financing, to enhance liquidity and support its operational needs. The company aims to achieve an uplisting of its common stock to Nasdaq, although it acknowledges the challenges posed by its previous delisting in February 2021.

Looking ahead, Interpace anticipates that its current cash reserves and projected cash receipts will be sufficient to meet its operational needs over the next twelve months. However, the company remains cautious about the impact of market conditions and regulatory changes on its business, particularly regarding reimbursement policies for its diagnostic tests. The management's focus will be on improving margins, optimizing costs, and enhancing revenue generation from its remaining product lines.