Precipio Reports 24% Revenue Growth in Q2 2026, Despite Net Loss

Precipio, Inc. reported its financial results for the second quarter of 2026, revealing a net sales increase of 24% to approximately $7.0 million, compared to $5.7 million in the same period last year. The growth was driven by a 22% rise in service revenue, which reached $6.1 million, attributed to a higher volume of processed cases, totaling 4,652, up from 3,692 in the prior year. Product revenue also saw a significant increase, rising to $906,000 from $624,000, marking a 45% growth. Despite these gains, the company recorded a net loss of $219,000 for the quarter, a decline from a net income of $74,000 in Q2 2025.

For the first half of 2026, Precipio's net sales totaled $13.7 million, a 30% increase from $10.6 million in the same period of 2025. Service revenue rose by 31% to $12.2 million, while product revenue increased by 22% to $1.6 million. The company reported an operating loss of $2.0 million for the six months ended June 30, 2026, compared to a loss of $810,000 in the prior year. The increase in operating expenses, which rose to $7.9 million from $6.3 million, was primarily due to higher personnel costs and stock-based compensation.

Operationally, Precipio's customer base expanded, with a notable increase in case volume contributing to revenue growth. The company processed 9,564 cases in the first half of 2026, a 42% increase from 6,713 cases in the same period last year. The gross profit margin remained stable at 43% for both the first half of 2026 and 2025, reflecting effective cost management despite rising operational costs. The company’s total assets slightly increased to $21.3 million as of June 30, 2026, compared to $21.3 million at the end of 2025.

In terms of strategic developments, Precipio continues to focus on enhancing its diagnostic capabilities through its integrated operating structure, which combines clinical laboratory services with proprietary product development. The company operates CLIA-certified laboratories in New Haven, Connecticut, and Omaha, Nebraska, which support its research and development efforts. However, the company faces challenges, including an accumulated deficit of $104.5 million and ongoing concerns about its ability to continue as a going concern over the next twelve months without additional financing or revenue generation.

Looking ahead, Precipio aims to leverage its operational structure to drive further growth in diagnostic services and product offerings. The company is actively pursuing additional revenue streams and evaluating its business plan to mitigate potential disruptions from macroeconomic factors. Despite the positive trajectory in sales and case volume, management acknowledges the need for careful navigation of market conditions and the importance of securing additional financing to support ongoing operations and growth initiatives.