Precipio Reports 27% Revenue Growth in Q2 2025, Achieves Net Income Improvement

Precipio, Inc. reported a significant increase in financial performance for the second quarter of 2025, with net sales reaching approximately $5.7 million, a 27% increase from $4.4 million in the same period of 2024. The growth was primarily driven by a 31% rise in service revenue, which amounted to $5 million, up from $3.9 million year-over-year. The company processed 3,692 cases during the quarter, a 19% increase compared to 3,099 cases in the prior year. Despite the revenue growth, Precipio recorded a net income of $74,000, a notable improvement from a net loss of $1.2 million in the second quarter of 2024.

For the first half of 2025, Precipio's net sales totaled $10.6 million, reflecting a 34% increase from $7.9 million in the same period of 2024. Service revenue for the six months ended June 30, 2025, was $9.3 million, up 41% from $6.6 million in the previous year. The increase in revenue was attributed to a higher volume of processed cases, which rose to 6,713 from 5,161, representing a 30% increase. The company's gross profit also improved significantly, reaching $4.6 million for the first half of 2025, compared to $2.6 million in the same period of 2024, resulting in a gross margin of 43%.

Operationally, Precipio has made strides in its organizational structure and product offerings. The company continues to focus on its mission to enhance cancer diagnostics, leveraging its CLIA-certified laboratories in New Haven, Connecticut, and Omaha, Nebraska. The company has also engaged in strategic partnerships with major healthcare distributors, including ThermoFisher and McKesson, to expand its market reach. As of June 30, 2025, Precipio's total assets increased to $18.8 million from $17 million at the end of 2024, while total liabilities rose to $6.5 million from $4.9 million.

The company has also taken steps to address its financial challenges, including a working capital deficit of $300,000 as of June 30, 2025, an improvement from a deficit of $820,000 at the end of 2024. Precipio has entered into a sales agreement with A.G.P./Alliance Global Partners to raise up to $5.8 million through the sale of common stock, which is intended to support its operational needs and growth initiatives. However, the company has expressed substantial doubt about its ability to continue as a going concern over the next twelve months, contingent on achieving its business plan and securing additional financing.

Looking ahead, Precipio aims to capitalize on its recent operational improvements and revenue growth to enhance its market position in the cancer diagnostics sector. The company is actively pursuing additional revenue streams and evaluating the impact of recent legislative changes, such as the One Big Beautiful Bill Act, on its business operations. As it navigates these challenges, Precipio remains focused on its goal of reducing cancer misdiagnoses through innovative diagnostic solutions.