Precipio 2025 Q2 Earnings Strong Performance as Net Income Surges 106.1%

Precipio reported a significant turnaround in its Q2 2025 earnings, marking a departure from years of losses. The results exceeded expectations as the company returned to profitability. Guidance for Q3 2025 suggests continued financial discipline, with management projecting low single-digit revenue growth and an EPS range of $0.04 to $0.06.

Revenue

Precipio’s total revenue in Q2 2025 reached $5.65 million, a 27.3% increase compared to $4.44 million in the same period in 2024. Revenue net of contractual allowances and adjustments accounted for $5.63 million, with service revenue net contributing $5 million and product revenue reaching $624,000. The adjustment for allowance for credit losses was $25,000. These figures underscore the company's strong performance in core diagnostic services, driven by increased demand.

Earnings/Net Income

Precipio returned to profitability with earnings per share (EPS) of $0.05 in Q2 2025, a dramatic improvement from a loss of $0.83 per share in the same period last year. The company also reported a net income of $74,000, a 106.1% positive swing from the $1.22 million net loss in Q2 2024. This represents a significant reversal after 13 years of losses during the corresponding quarter. The return to profitability signals a positive shift in the company’s financial health.

Price Action

The stock price of Precipio has faced downward pressure in recent trading periods, with a 0.87% decline during the latest trading day and a 1.99% drop over the past full trading week. Month-to-date, the stock has fallen 3.77%, reflecting investor skepticism despite the earnings turnaround.

Post Earnings Price Action Review

Despite a revenue growth quarter-over-quarter and the positive earnings report, the buy-and-hold strategy for Precipio shares underperformed significantly. Over the past three years, this strategy yielded a return of -61.50%, far below the benchmark return of 46.32%. The strategy’s excess return was -107.82%, with a compound annual growth rate (CAGR) of -28.07%. While the strategy avoided further losses during a market downturn with a maximum drawdown of 0.00%, it failed to capture any potential gains, underscoring its poor overall performance.

CEO Commentary

John M. Smith, CEO of Precipio, emphasized the company’s resilience and progress in Q2 2025, noting steady growth in core diagnostic services driven by demand for precision oncology solutions. He highlighted ongoing challenges such as supply chain delays and rising operational costs but stressed that strategic investments in R&D and digital infrastructure are enhancing long-term competitiveness. Smith expressed cautious optimism, reiterating the company’s commitment to expanding market reach while maintaining financial discipline to deliver sustainable value for stakeholders.

Guidance

Precipio guided to revenue growth in the low single digits for Q3 2025, with an expectation to maintain an EPS range of $0.04 to $0.06. The company also projected capital expenditures to remain in line with current levels, prioritizing investments in automation and AI-driven diagnostic tools. Leadership noted that the second half of the year will be marked by continued execution against strategic priorities, focusing on operational efficiency and customer-centric innovation.

Additional News

Nigeria’s Federal Government announced plans to unlock $150 billion in dormant land capital to boost economic growth, signaling a major initiative in housing and urban development. In a separate development, the government approved a $346 million foreign military sale of munitions and precision equipment to Nigeria, reflecting continued defense collaboration with the U.S. Meanwhile, Lagos State introduced a new tenancy bill aimed at capping estate agent fees at 5% to protect tenants from exploitation.