Personalis, Inc. Q2 FY2025 earnings call

• Accelerating clinical adoption: NeXT Personal test volume grew 59% sequentially in Q2, with nearly 3,500 clinical results, and the base of ordering physicians expanded to over 600. Partnership with Tempus expanded to include colorectal cancer.
• Reimbursement progress: Submitted IO monitoring dossier for Medicare coverage, targeting coverage for at least 2 cancer indications by end of 2025.
• Biopharma partnership: Commercial partnership with Tempus is gaining momentum, with NeXT Personal commercialized across 4 major indications, and biopharma revenue from NeXT Personal on track for 300%-400% year-over-year growth.

Total company revenue for the second quarter was $17.2 million. Biopharma revenue was $11.1 million, a 16% decrease compared to the prior year's $13.2 million, primarily due to project delays. Clinical revenue was $0.5 million, a significant increase from the prior year's $0.1 million. Biopharma revenue contributed a larger portion, while clinical revenue, though smaller, showed growth momentum.

• Revised full-year revenue guidance to $70 million to $80 million, down from prior range. Q3 2025 revenue expected to be $12 million to $14 million.
• Gross margin expected to be 22%-24% for full year 2025.
• Cash usage for 2025 expected to be approximately $75 million, an increase from 2024 due to investments in clinical test volumes and evidence building.

• Industry-wide headwinds in biopharma R&D spending, including project delays and tariff uncertainty impacting customer translational research projects.
• Delays in Medicare reimbursement coverage could affect revenue and cash flow projections.

Q: Dan Brennan from TD Cowen asked about clinical revenue guidance and Q3/Q4 assumptions.

A: Aaron Tachibana explained the guide was tightened to $3 million to $6 million for clinical revenue, modeling reimbursement timing. Chris Hall added confidence in achieving 2 cancer type reimbursements by end of year.

Q: Vivian from BTIG asked about biopharma revenue pushout and Moderna deal.

A: Chris Hall stated biopharma revenue pushouts due to translational research slowdown, but MRD product growth remains strong with 300%-400% growth expected.

Q: Edmund from Morgan Stanley asked about biopharma policy impact and competitive landscape.

A: Aaron Tachibana mentioned biopharma project delays, but MRD funnel continues to grow. Chris Hall discussed NeXT Personal differentiation and balancing investments with margins.

Q: Rich Chen from Guggenheim asked about ASCO conversations.

A: Rich Chen discussed ASCO data reinforcing neoadjuvant breast cancer findings and plans to expand reimbursement submissions.

Q: RK from H.C. Wainwright asked about pharma business performance and reimbursement logistics.

A: Chris Hall explained pharma business slowness due to translational research delays, and Aaron Tachibana discussed mechanics of recognizing revenue post favorable Medicare coverage