NEW HAVEN, Conn., Nov. 14, 2025 (GLOBE NEWSWIRE) -- Specialty cancer diagnostics company Precipio, Inc. (NASDAQ:PRPO), filed its 10-Q report today. The following are the highlights of the Company's financial performance and outlook for the remainder of 2025.

Q3-2025 Financial Results:

Revenues. Q3-2025 revenues reached $6.8M, a 30% increase YoY from $5.2M in Q3-2024, and a QoQ increase of 20% from $5.7M in Q2-2025. Pathology Services Division's services revenue increased 20% from the prior quarter; revenues from Product Division customers increased 16% from the prior quarter.
Adjusted EBITDA. Q3-2025 Adjusted EBITDA of $469K was up $369K YoY and up more than $500K from Q2-2025, swinging from negative to positive Adjusted EBITDA.
Cash flow. Cash generated by operations (before Change Healthcare transactions which are included in operations) changed from a cash burn of ($148K) in Q2-2025, to $285K of cash generated in Q3-2025, a $433K swing in cash generated quarter-over-quarter.

"This is a proud moment for our Company. The combination of repeated quarter-over-quarter revenue growth, alongside operational efficiencies and financial discipline, have helped us achieve both meaningful positive EBITDA and a business that generates cash", said Ilan Danieli, Precipio's CEO. "Quarters like this create all kinds of growth opportunities for our Company, ones that management intends to seize."

Pathology Services Division Summary:

Pathology Services Division revenue increased by approximately $1.0M, or 20% from $5.0M in Q2-2025 to $6.0M in Q3-2025. This growth was largely due to initiating service at several accounts in our growing prospective customer pipeline. Furthermore, our pipeline for further customer additions remains strong, with several prospects in various trial phases of our services.

We are confident that our superior quality and customer-centric level of service, compared to some of the mega-labs in the industry, will be a key factor in growing this business. On the cost side, our team was able to handle the increased volume while maintaining the same COGS, and without any significant fixed cost increase, supporting a continuous margin increase.

Products Division Summary:

Product Division revenues increased 16% quarter-over-quarter from $0.62M in Q2-2025 to $0.72M in Q3-2025. The majority of revenue increases stemmed from existing customers ordering more current panels and was supplemented by their orders for new panels and new applications in their lab.

The process of acquiring customers through our distributors has been a lengthy process with multiple steps. Over the past quarter we have seen increased activity resulting in engagement with new prospects and meetings that have laid the groundwork for several additional new customers (both Company and distributor initiated) to go live in the next two quarters.

Gross margins, operating expenses:

Pathology Services Division gross margins have increased quarter-over-quarter from 43% to 46%. Our past investments in building capacity to handle increased volume have enabled us to grow revenues and margins simultaneously.

Product's Division gross margins were 30% in Q3-2025, down from 44% in the previous quarter Q2-2025. This decline of 14% is driven by the "prepare for growth" investments, similar to those we made in the Pathology Division as discussed above. Such changes are the principal cause of the short-term impact to margin, and not any adverse changes in our unit revenue or cost.

Overall, the Company's gross margin increased from 43% last quarter to 44% in Q3-2025. We anticipate continued gross margin increase towards the 50% mark, as the pathology business continues to exploit its economies of scale, and the products division builds more revenue that can be leveraged to higher margins.

EBITDA and Adjusted EBITDA Reconciliation and Explanation

Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a non-GAAP financial measure that is widely used to evaluate operational performance. Management believes Adjusted EBITDA provides investors with a useful perspective on the company's ongoing financial health by eliminating (a) unusual non-operating income and expense and (b) non-cash charges for employee stock option costs and amortization of intangible assets.

Below is a reconciliation of Net Income, EBITDA, and Adjusted EBITDA for the third quarter of 2025 and 2024:

($ in millions, Unaudited)	Q3-2025		Q3-2024
Net income/(loss) (GAAP)	$	(0.1)	$	(0.6)
Adjustments to net income/(loss):
Interest expense, net	$	0	$	0
Income taxes	$	0	$	0
Depreciation	$	0.1	$	0.1
Amortization of intangibles	$	0.3	$	0.2
EBITDA (non-GAAP)	$	0.3	$	(0.3)
Further Adjustments to EBITDA:
Stock-based compensation expense	$	0.2	$	0.4
Other non-operating (income) expenses, net	$	0	$	0
Adjusted EBITDA (non-GAAP)	$	0.5	$	0.1

Note: The full unaudited condensed consolidated financial statements, including the balance sheet and statement of cash flows as of and for the three and nine months ended September 30, 2025 and 2024, are included in the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission, which is available on the SEC's website at www.sec.gov and on the Company's investor relations website.

Shareholder Conference Call:

On November 17, 2025, at 5:00 pm ET, the Company will host its quarterly shareholder call, where management will provide more details as to the Company's quarterly performance and outlook going forward. Please join us by dialing in at 800.717.1738.

About Precipio

Precipio is a healthcare biotechnology company focused on cancer diagnostics. Our mission is to address the pervasive problem of cancer misdiagnoses by developing solutions in the form of diagnostic products and services. Our products and services deliver higher accuracy, improved laboratory workflow, and ultimately better patient outcomes, which reduce healthcare expenses. Precipio develops innovative technologies in our laboratory where we design, test, validate, and use these products clinically, improving diagnostic outcomes. Precipio then commercializes these technologies as proprietary products that serve the global laboratory community and further scales Precipio's reach to eradicate misdiagnosis.

Availability of Other Information About Precipio

For more information, please visit the Precipio website at https://www.precipiodx.com/ or follow Precipio on X (formerly Twitter) (@PrecipioDx) and LinkedIn (Precipio) and on Facebook. Investors and others should note that we communicate with our investors and the public using our company website (https://www.precipiodx.com), including, but not limited to, company disclosures, investor presentations and FAQs, Securities and Exchange Commission filings, press releases, public conference call transcripts and webcast transcripts, as well as on X and LinkedIn. The information that we post on our website or on X or LinkedIn could be deemed to be material information. As a result, we encourage investors, the media and others interested to review the information that we post there on a regular basis. The contents of our website or social media shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding the targets set herein and related timing. Except for historical information, statements about future volumes, sales, growth, costs, cost savings, margins, earnings, earnings per share, diluted earnings per share, cash flows, adjusted EBITDA, plans, objectives, expectations, growth or profitability and our potential to reach financial independence are forward-looking statements based on management's estimates, beliefs, assumptions and projections. Words such as "could," "may," "expects," "anticipates," "will," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," "predicts," and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic and financial performance, are intended to identify such forward-looking statements. These forward-looking statements are only predictions based on management's current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the important factors discussed under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and our other reports filed with the U.S. Securities and Exchange Commission. Any such forward-looking statements represent management's estimates as of the date of this press release only. While we may elect to update such forward-looking statements at some point in the future, except as required by law, we disclaim any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Inquiries:

investors@precipiodx.com

+1-203-787-7888 Ext. 523