Personalis' Q2 2025 Earnings Call: Dissecting Contradictions in Revenue Projections and Reimbursement Strategies

Reimbursement timeline and impact on revenue, pharma test and services revenue outlook, Tempus partnership and sales strategy, biopharma revenue and customer deals, and reimbursement timeline and strategy are the key contradictions discussed in Personalis's latest 2025Q2 earnings call.



Clinical Adoption and Growth:
- Personalis' NeXT Personal test volume grew by 59% sequentially in Q2 2025, reaching over 600 ordering physicians.
- The expansion in clinical adoption is driven by the test's ultrasensitivity in detecting minimal residual disease (MRD) and its ability to monitor therapy and predict patient outcomes.

Revenue and Biopharma Project Delays:
- The company reported $17.2 million in revenue for Q2 2025, reflecting a 24% decrease year-over-year.
- Revenue declines were primarily due to project delays and reduced spending from biopharma customers, particularly Moderna, amid political changes and industry uncertainties.

Investment in Clinical Tests and Sales Force:
- Personalis plans to add 12 to 15 new field professionals to its sales force by year-end and continue investing in clinical test volumes before reimbursement.
- These investments are aimed at driving NeXT Personal revenue growth and capturing market opportunities post-reimbursement.

Medicare Reimbursement Strategy:
- The company is targeting Medicare coverage for at least 2 indications by the end of 2025, with significant efforts focused on breast cancer, lung cancer, and immunotherapy monitoring.
- Achieving Medicare reimbursement is expected to be a pivotal inflection point, unlocking substantial revenue streams.