Precipio, Inc. reported its financial results for the first quarter of 2026, revealing a net sales figure of approximately $6.7 million, a 36% increase from $4.9 million in the same period of 2025. The growth was primarily driven by a 63% increase in the number of cases processed, totaling 4,912 compared to 3,021 in the prior year. However, the average price per case decreased due to a shift in product mix, which partially offset the revenue gains. The company recorded a net loss of $1.4 million for the quarter, compared to a loss of $884,000 in the first quarter of 2025, resulting in a basic and diluted loss per share of $0.81, up from $0.59.
In terms of operational metrics, Precipio's cost of sales rose to $3.99 million, up from $2.79 million year-over-year, reflecting increased expenses related to reagents, personnel, and pathologist interpretation costs due to the higher volume of cases processed. Gross profit for the quarter was approximately $2.73 million, yielding a gross margin of 41%, down from 43% in the previous year. The decline in gross margin was attributed to the lower average price per case, which impacted overall profitability.
The company also reported an increase in operating expenses, which rose to $4.15 million from $2.99 million in the prior year. This increase was driven by higher personnel costs, consulting fees, and stock-based compensation, which accounted for a significant portion of the rise. Despite the increase in expenses, Precipio's cash flow from operating activities showed a positive shift, with $64,000 generated in the first quarter of 2026 compared to a cash outflow of $44,000 in the same period of 2025.
Precipio's balance sheet as of March 31, 2026, showed total assets of $20.8 million, a decrease from $21.3 million at the end of 2025. Current liabilities increased slightly to $3.81 million, resulting in working capital of $2.12 million. The company continues to face challenges, including an accumulated deficit of $104.2 million, raising concerns about its ability to continue as a going concern. Management indicated that future operations depend on generating additional revenue and potentially raising further financing to meet obligations.
Looking ahead, Precipio remains focused on enhancing its diagnostic services and product development capabilities. The company operates clinical laboratories in New Haven, Connecticut, and Omaha, Nebraska, which support its dual business model of providing diagnostic services while developing proprietary diagnostic products. The management's outlook emphasizes the need for strategic execution to navigate market conditions and achieve financial stability, particularly in light of ongoing geopolitical uncertainties and macroeconomic factors.
About Precipio, Inc.
Precipio, Inc. is a healthcare biotechnology company specializing in cancer diagnostics. It develops and commercializes proprietary technologies and products, such as genetic panels and cell culture media, to improve diagnostic accuracy and reduce misdiagnoses in blood-related cancers. Operating CLIA-certified labs, it serves the U.S. oncology market with innovative, cost-effective solutions aimed at enhancing patient outcomes and laboratory efficiency.
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