Precipio, Inc.

What they do

Precipio operates two complementary divisions under a single operating segment. The pathology services division provides specialized cancer diagnostic testing, primarily for hematologic cancers, operating two full-service laboratories. The products division develops and commercializes proprietary diagnostic assays and kits for use by other clinical laboratories, leveraging the clinical lab as an integrated R&D platform.

Revenue drivers

• Pathology services — Generates recurring revenue from specialized diagnostic testing (molecular diagnostics, cytogenetics) for physicians, hospitals, and laboratories; primarily focused on hematologic cancers. This is the larger revenue contributor.
• Products division — Commercializes proprietary diagnostic assays and kits to other clinical laboratories; offers scalability but adoption depends on regulatory, reimbursement, and market factors; smaller revenue contribution.

Recent performance

Revenue grew 30% year-over-year to $24.0M in 2025 (from $18.5M in 2024), with Q4-2025 revenue of $6.7M, up 23% YoY. The company reported positive adjusted EBITDA of $0.95M in Q4-2025 and $1.23M for full-year 2025, versus $0.40M and ($1.5M) in the prior-year periods. Operating cash flow was $688K for 2025, up from $439K in 2024. Net loss narrowed to $363K in 2025 from $4.3M in 2024. Quarterly revenue has been stable at $6.9-7.0M in the last four reported quarters through June 2026.

Strategy

Management's strategy is to integrate diagnostic services with product development, using the lab as a self-funded R&D unit to develop, validate, and refine products at incremental cost. The company aims to expand its products division to reach a broader market through laboratory partners and commercial channels. Achieving positive EBITDA and operating cash flow is intended to allow investment in longer-term growth projects rather than focusing on short-term cash burn. Management also emphasizes building a sustainable business model that supports ongoing innovation.

Risks

• Going concern and capital needs — The company has identified substantial doubt about its ability to continue as a going concern and may depend on access to additional capital to expand.
• Revenue and credit concentration — The company is subject to concentrations of revenue risk and credit risk in accounts receivable, which could be impacted by payer mix or collection issues.
• Market acceptance and competition — Commercial success of diagnostic products and services depends on adoption by physicians and labs, and the company faces competition from new entrants and existing players.
• Regulatory and reimbursement changes — Changes in government and third-party payer regulations or reimbursement policies, including Medicare and Medicaid, could adversely affect revenue.

Outlook

Management expects to continue generating positive EBITDA and operating cash flow, enabling investment in growth projects with a longer-term perspective. The company plans to provide more detail on 2026 prospects in a shareholder call following the 10-K filing. Revenue growth is expected to come from both pathology services and the products division, though product adoption is subject to regulatory and market factors.