Precipio reported total revenue of $6.8 million for the third quarter of 2025, a 30% year‑over‑year increase and a 20% quarter‑over‑quarter rise from $5.7 million in Q2 2025. Pathology Services revenue climbed to $6.0 million, up 20% from $4.8 million in the same period, while the Products division generated $0.72 million, up 16% from $0.62 million. Adjusted EBITDA turned positive for the first time in the company’s history, and operating cash flow was healthy, reinforcing management’s confidence that the company can reach breakeven in 2025 without additional capital raises.
The Pathology Services division drove the majority of the revenue growth and margin expansion. Gross margin in the segment rose from 43% to 46% as case volumes increased from 3,099 to 3,692, demonstrating efficient scale and pricing power. The division remains the company’s primary cash generator and self‑financed R&D engine, providing the financial foundation for future product development.
In contrast, the Products division’s gross margin contracted from 44% to 30% as the company invested heavily in new panels and applications. These “prepare for growth” expenses, including research, manufacturing capacity, and marketing, are a deliberate short‑term trade‑off aimed at capturing higher‑margin recurring revenue from the HemeScreen panels. Despite the margin squeeze, revenue growth in the Products division signals increasing demand and a path toward a more profitable product mix.
Management disclosed a substantial doubt about the company’s ability to continue as a going concern over the next twelve months. The positive cash flow and adjusted EBITDA are encouraging, but the risk factor underscores the need for continued operational discipline and the timely repayment of the Change Healthcare loan, which is expected to be completed by year‑end.
No consensus analyst estimates were available for the quarter, but management reiterated its guidance that the company will achieve breakeven in 2025 and remain debt‑free. The company’s focus on scaling Pathology Services and expanding the Products portfolio reflects a long‑term growth strategy that balances short‑term margin compression with future profitability.
CEO Ilan Danieli highlighted the quarter as a “proud moment” for the company, noting that the combination of revenue growth, operational efficiencies, and financial discipline has produced positive EBITDA and cash generation. He added that the remaining repayment of the Change Healthcare loan will be completed by the end of the year, positioning the company for a cash‑flow‑positive future.
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