bioAffinity 2025 Q1 Earnings Misses Targets as Net Income Widens 35.6%

bioAffinity Technologies, Inc. (Nasdaq: BIAF; BIAFW), a biotechnology company focused on noninvasive diagnostic tests, reported its fiscal 2025 Q1 earnings on May 15th, 2025. The company missed revenue expectations with a decrease in total revenue from $2.41 million in 2024 Q1 to $1.85 million in 2025 Q1, a 23% decline. Despite strategic actions to streamline operations, bioAffinity reported a widened net loss of $2.66 million in 2025 Q1 compared to $1.96 million in the previous year. The company maintains its guidance, expecting targeted strategic actions to reduce annual costs by approximately $3.8 million, enabling growth in CyPath® Lung sales.

Revenue

In the first quarter of 2025, bioAffinity Technologies reported total revenue of $1.85 million, marking a 23% decline from the previous year. Patient service fees contributed significantly with $1.57 million, while histology service fees added $263,754. Medical director fees accounted for $16,588, and other revenues totaled $2,873. This comprehensive revenue breakdown reflects the company's reliance on key segments despite overall revenue contraction.

Earnings/Net Income

bioAffinity saw a 20% improvement in EPS, narrowing losses to $0.16 per share from $0.20 per share in 2024 Q1. However, net loss widened to $2.66 million, a 35.6% increase, indicating ongoing financial challenges despite improved EPS.

Price Action

The stock price of bioAffinity Technologies experienced significant volatility following the earnings report, dropping 14.33% during the latest trading day. Over the week, the stock edged up by 2.03% but has seen a sharp decline of 58.88% month-to-date, reflecting investor concerns over the company's financial health and performance outlook.

Post Earnings Price Action Review

Following the earnings report, bioAffinity Technologies showed promising potential with its strategy of buying BIAF when revenue beats and holding for 30 days, driven by substantial growth in CyPath® Lung sales. The company's revenue grew by 276% year-over-year in the first quarter of 2025, demonstrating strong market demand for CyPath® Lung, a test known for its sensitivity and accuracy in lung cancer detection. Recent improvements increased processing efficiency and reduced costs, enhancing the test's performance. Strategic actions are in place to reduce annual costs by approximately $3.8 million while focusing on high-margin diagnostics, potentially improving profitability. Additionally, international patent acceptance from the Australian Patent Office strengthens global commercialization potential. The company also initiated a securities offering to raise $3.25 million to address liquidity challenges and fund growth initiatives. Despite positive signals for future prospects, investors should remain aware of financial risks inherent in the biotechnology sector.

CEO Commentary

“We began 2025 with strong momentum, delivering 276% year-over-year growth in CyPath® Lung sales and expanding our commercial footprint across the U.S.,” said Maria Zannes, President and Chief Executive Officer of bioAffinity Technologies. She highlighted that the first-quarter results reflect growing demand for their noninvasive lung cancer diagnostic and the successful execution of their strategy focused on high-value services and operational efficiency. Zannes noted decisive actions taken to streamline operations, which are translating into margin improvements and enhanced resource allocation. She expressed optimism about the clinical and economic validation supporting growth and emphasized their commitment to expanding access to CyPath® Lung.

Guidance

The company anticipates that targeted strategic actions will reduce annual costs by approximately $3.8 million, enabling accelerated commercial growth of CyPath® Lung. Improvements in processing are expected to increase data acquisition throughput by 50% and reduce unit costs by more than 25%. Zannes emphasized their focus on advancing new diagnostics for diseases like COPD and asthma, indicating an ongoing commitment to enhancing patient outcomes and delivering value to shareholders.

Additional News

In recent weeks, bioAffinity Technologies completed a $3.25 million best efforts offering of securities, which included shares and warrants. WallachBeth Capital acted as the sole placement agent for this offering. This capital raise was crucial for extending the company's operational runway, although it came with significant dilution implications for existing shareholders. Additionally, bioAffinity Technologies appointed J. Michael Edwards as Chief Financial Officer, bringing expertise in overseeing the company's financial and strategic direction. Furthermore, bioAffinity Technologies submitted a protocol for a pivotal clinical trial to the Sterling Institutional Review Board, marking a critical step in advancing its diagnostic pipeline. These developments underscore bioAffinity's strategic efforts to bolster its financial position and expand its diagnostic capabilities.