Personalis, Inc.

What they do

Personalis develops, markets and sells advanced cancer genomic testing services used by physicians to detect residual or recurrent cancer, monitor response to therapy and inform therapy selection. It also runs sequencing for pharmaceutical companies in translational research and clinical trials, supplies whole exome sequencing to diagnostic companies, and provides whole genome sequencing under contract with the U.S. Department of Veterans Affairs Million Veteran Program. Its facility can sequence and analyze over 350 trillion bases of DNA per week, and it has sequenced approximately 605,000 human samples, of which about 237,000 were whole human genomes.

Revenue drivers

• Pharma testing services and other customers — Testing for oncology-focused pharma clinical trials and drug development, including genomic testing for ModernaTX personalized cancer therapy trials; this was the largest bucket at $16.8 million in Q2 2026, up 51% year over year.
• Clinical (NeXT Personal) testing — Clinical test revenue was $2.6 million in Q2 2026 versus $0.5 million a year earlier, a 442% increase, on 10,384 clinical tests, driven by Medicare coverage for lung cancer and IO monitoring.
• Population sequencing (VA MVP) — Whole genome sequencing under contract with the U.S. Department of Veterans Affairs Million Veteran Program; $3.0 million in Q2 2026, down 9% from $3.3 million a year earlier.
• Enterprise sales (Natera project) — A historically lumpy revenue line that fell to $5.9 million in 2025 from $25.4 million in 2024 due to the winding down of the Natera project; this decline was the main reason total 2025 revenue fell 18% to $69.6 million.

Recent performance

Second quarter 2026 revenue was $22.4 million, up 30% from $17.2 million in Q2 2025, with clinical test volume up 199% year over year and 33% sequentially to 10,384 tests. Clinical revenue rose 442% to $2.6 million and revenue from pharma testing and all other customers rose 51% to $16.8 million, while population sequencing fell 9% to $3.0 million. The company ended the quarter with approximately $212.7 million in cash, cash equivalents and short-term investments. For full-year 2025, revenue was $69.6 million, down 18% from $84.6 million, and net loss was $81.3 million, the same as 2024.

Strategy

Management describes a 'Win-in-MRD' strategy to establish NeXT Personal as the standard for detecting cancer recurrence early, focused on three indications: breast cancer, lung cancer and immunotherapy monitoring. The company is pursuing Medicare and payor reimbursement for new indications and building clinical evidence with academic collaborators including Cancer Research UK, University College London and the Francis Crick Institute (TRACERx), Institut Curie and Dana-Farber. It relies on Tempus to market NeXT Personal Dx to physicians and to sell NeXT Personal into Tempus' pharma and biotech customers under a collaboration extended through November 25, 2029. On July 20, 2026, Personalis entered an Agreement and Plan of Merger with Tempus, under which it would become a wholly owned Tempus subsidiary.

Risks

• Persistent losses and accumulated deficit — Personalis had net losses of $81.3 million in each of 2025 and 2024 and an accumulated deficit of $631.3 million as of December 31, 2025, and has never generated sufficient revenue to reach profitability.
• Customer concentration and lumpy enterprise revenue — The 2025 revenue decline was primarily due to lower Enterprise sales, mainly Natera, falling to $5.9 million from $25.4 million, showing how one project's wind-down can move total revenue.
• Reimbursement and payor coverage dependence — Clinical revenue growth depends on Medicare and other payor coverage decisions, such as the breast, NSCLC, IO-monitoring and neoadjuvant breast approvals cited as catalysts.
• Reliance on the Tempus collaboration and pending merger — Tempus markets NeXT Personal Dx and sells NeXT Personal to pharma customers through November 25, 2029, and the announced merger with Tempus introduces completion and integration uncertainty.

Outlook

Personalis has stopped providing financial guidance and will no longer hold quarterly earnings conference calls because of the July 20, 2026 merger agreement with Tempus AI. Management said it remains on track to achieve more than a 500% increase in clinical revenue over last year and expects to keep expanding its evidence base for reimbursement in new indications. It also cited the scale and resources of combining with Tempus as a means to accelerate innovation for patients, clinicians and biopharma partners.