Earnings call transcript: Precipio shares rise on q3 2026 growth outlook

Precipio Diagnostics reported solid Q3 2026 earnings, with revenue growing to $7.2 million, a 2.9% increase from $7.0 million in Q2 2026. This revenue uptick was driven by both Pathology Services and the Products Division. For the first time, product sales surpassed $1 million, accounting for 12.5% of total sales. The pathology services arm generated about $6.3 million, or 87.5% of the overall revenue.

Managed an adjusted EBITDA of approximately $400,000 and generated about $600,000 in operating cash flow. The company's cash reserves rose above $3.5 million at quarter-end, up from $2.2 million a year earlier. Management unveiled ambitious 2027 growth targets, aiming for annualized product revenue of more than $10 million and pathology services revenue of over $30 million.

This announcement prompted a 6.53% rise in stock price during regular trading and an additional 5.71% increase in after-hours trading. Investors responded positively to the company's formal financial targets and its claim of self-funding expansion. Precipio has maintained its cash flow positivity, a milestone achieved in 2025 after years of dilutive financing.

The company remains cash flow positive, positioning itself for accelerated growth as it shifts focus from stability to expansion.