Precipio, Inc. Q4 FY2025 earnings call

· 2025 was a year of financial and strategic inflection, achieving transition to a self-sustaining business with positive cash flow, continued revenue growth, improved gross margin, exercise of all remaining financial warrants, and completion of repayment of Change Healthcare loan. · Pathology Services division continues to grow organically without significant additional capital expenditures or lab staffing increases, and provides a strategic advantage for Products division. · Products division faced customer operational fluctuations and a limited commercial team, but implemented business continuity measures and hired a stronger commercial team. · 2025 included operational and commercial achievements like expansion of HemeScreen and Bloodhound molecular platform, joint academic study, AMP conference poster, improved customer onboarding, expanded manufacturing capacity, and strengthened financial position. · Began more interaction with public markets in 2025, having over 50 unique interactions with investors, etc.

For fiscal year 2025, Precipio delivered $24 million in revenue, a 30% increase year-over-year. Pathology Services division is the operational and financial backbone, with strong organic growth driven by new customers and increased testing volume from existing customers. Products division revenues didn't grow as expected due to customer operational fluctuations and a limited commercial team. Overall gross margin improved from 41% in 2024 to 45% in 2025, primarily from higher case volumes in Pathology Services and operational efficiency. Products division margins were temporarily impacted by strategic investments, but Q4 saw a leap to 90% gross margin due to manufacturing circumstances.

· Focus in 2026 is on growing the products business with new dedicated product sales team and process improvements, accelerating adoption of HemeScreen and Bloodhound products, converting lab pipeline to active revenue-generating customers, and expanding institutions using the platform. · Expect continued growth in pathology service side, with cash reinvested into products business growth. · Plan to launch a service combining rapid molecular testing for AML testing to differentiate platform and expand services and products opportunity. · Expect revenue mix to move from 90-10 towards pathology services and products being more balanced over 3-5 years.