Precipio (NASDAQ:PRPO) reported quarterly revenue above $7 million for the first time in its history, alongside a return to positive adjusted EBITDA and positive operating cash flow, according to CEO Ilan Danieli during the company’s shareholder update call.
Danieli said the company generated approximately $700,000 in operating cash flow during the quarter and ended the period with more than $3 million in cash, an increase of roughly $500,000 from the prior quarter. He emphasized that the cash growth was generated through operations rather than a capital raise.
Revenue Growth Led by Products Business
Total revenue exceeded $7 million, compared with approximately $6.7 million in the first quarter. Danieli said revenue was approximately 22% higher than the $5.7 million reported in the comparable prior-year quarter.
The company’s pathology business produced about $6.1 million in revenue, up modestly from $6 million in the previous quarter. Meanwhile, product revenue rose to approximately $900,000 from roughly $660,000 in the first quarter, representing growth of about 35% sequentially.
Danieli said the product-revenue result exceeded the company’s prior quarterly record of approximately $750,000, set in the fourth quarter of the prior year, by about 21%.
The CEO noted that a shipment from a larger customer that had been expected late in the first quarter was moved into early April. He characterized that change as a timing issue rather than a loss of business or a change in customer demand.
Commercial Pipeline and Distributor Expansion
Precipio said its commercial team added approximately 10 new distributor representatives during the quarter, expanding its reach into additional territories and potential accounts. The company also identified more than 25 new qualified customers and had more than 30 customer meetings either scheduled or completed during the period.
Danieli said the company works with Thermo Fisher Scientific, McKesson, Medline and Cardinal Health, partnerships he said collectively cover the diagnostic market. However, he noted that each distributor operates differently, requiring the company’s commercial team to develop individual approaches for each relationship.
Precipio expects commercial opportunities in its pipeline to increasingly convert into active accounts and revenue during the second half of the year, Danieli said.
The company also discussed its Rapid AML Panel, which is designed to provide information related to acute myeloid leukemia in one day. Danieli said molecular laboratory results in the broader market are delivered on average in 10 to 14 days, while treatment decisions for AML can be highly time-sensitive.
He said Precipio’s laboratory operations allow the company to identify diagnostic challenges, develop products internally, validate them in clinical use and then commercialize those products to outside laboratories.
Profitability and Cash Generation
Adjusted EBITDA was approximately $400,000, compared with negative $200,000 in the first quarter. Danieli attributed the roughly $600,000 sequential improvement primarily to an approximately $300,000 increase in revenue and an approximately $200,000 reduction in stock-based compensation expense.
He said the results demonstrated the operating leverage available from the company’s existing laboratory, product and commercial infrastructure as revenue grows.
“As we grow revenue on that platform, we expect more of the incremental revenue to make its way through down to the P&L,” Danieli said.
Precipio’s cash balance of approximately $3 million compared with about $1.1 million at the end of the comparable quarter a year earlier, according to Danieli.
Second-Half Priorities
Looking ahead, Danieli said investors should watch for continued overall revenue growth, further expansion in product revenue, conversion of commercial-pipeline opportunities, and the translation of higher revenue into adjusted EBITDA and operating cash flow.
The company also plans to pursue marketing collaborations and clinical-study initiatives related to its products. Danieli said Precipio previously lacked the resources to support such efforts but now expects to share more information on those initiatives in the future.
In response to an analyst question about unusually high trading volume in the company’s shares, Danieli said Precipio had limited visibility into the activity. He cited increased investor-relations efforts, including participation in the Planet MicroCap Conference, and said algorithmic trading may also have contributed.
About Precipio (NASDAQ:PRPO)
Precipio, Inc is a clinical-stage diagnostics and medical technology company focused on advancing the detection and management of hematologic diseases. The firm develops precision diagnostic solutions that integrate digital morphology, immunophenotyping, and molecular testing to improve the diagnosis of leukemia and related blood disorders. Precipio’s approach is designed to enhance the accuracy and speed of laboratory workflows, helping physicians tailor treatment strategies more effectively.
The company’s core offerings include an automated digital imaging and analysis platform that captures and classifies blood and bone marrow cell images at high throughput.
