Precipio Reports 44% Revenue Growth to $4.9 Million in Q1 2025

Precipio, Inc. reported its financial results for the first quarter of 2025, revealing a net sales figure of approximately $4.9 million, a 44% increase from $3.4 million in the same period of 2024. The growth was primarily driven by a 54% rise in service revenue, which reached $4.3 million, attributed to an increase in the number of cases processed—3,021 in Q1 2025 compared to 2,062 in Q1 2024. Despite this revenue growth, the company recorded a net loss of $884,000, an improvement from a loss of $2.1 million in the prior year, indicating a narrowing of losses as operational efficiencies began to take effect.

The company's gross profit for the quarter was approximately $2.1 million, resulting in a gross margin of 43%, up from 27% in the previous year. This improvement in gross margin was facilitated by economies of scale achieved through increased case volume, which allowed Precipio to leverage fixed costs more effectively. Operating expenses remained stable at $3.0 million, with slight fluctuations in various cost categories, including a modest increase in stock-based compensation.

In terms of operational metrics, Precipio's customer engagement appears to be on an upward trajectory, with a significant increase in the number of cases processed. The company continues to focus on enhancing its diagnostic capabilities, which are supported by its Clinical Laboratory Improvement Amendments (CLIA) certified laboratories in New Haven, Connecticut, and Omaha, Nebraska. These facilities not only facilitate product development but also generate revenue through diagnostic services, thereby reducing overall development costs and timelines.

Precipio's balance sheet as of March 31, 2025, showed total assets of $17.8 million, a slight increase from $17.0 million at the end of 2024. However, the company reported a working capital deficit of $1.1 million, raising concerns about its liquidity. The accumulated deficit stood at $103.3 million, reflecting ongoing challenges in achieving profitability. To address its financial needs, Precipio has entered into a sales agreement allowing it to raise up to $5.8 million through the sale of common stock, although there remains substantial doubt about its ability to continue as a going concern without additional financing.

Looking ahead, Precipio aims to capitalize on its recent operational improvements and increased case volume to drive further revenue growth. The company is also actively pursuing additional financing options to bolster its liquidity and support ongoing operations. However, management has cautioned that achieving its business plan will be critical to overcoming its current financial challenges and ensuring long-term viability.