Personalis 2025 Q1 Earnings Narrowed Losses, Net Income Drops 21.5%

Personalis Inc. (PSNL) reported a fiscal Q1 2025 loss of $0.18 per share, beating the Zacks Consensus Estimate loss of $0.23 per share. Revenue reached $20.61 million, surpassing expectations. Personalis maintained its full-year revenue guidance of $80 million to $90 million. The company anticipates Q2 revenue between $19.5 million and $20.5 million, with a net loss forecast of approximately $83 million for the year.

Revenue

Personalis experienced a 5.5% increase in total revenue for Q1 2025, reaching $20.61 million, compared to $19.52 million in Q1 2024. This growth was driven by a substantial $13.59 million from pharma tests and services, followed by $4.21 million from population sequencing. Enterprise sales added $2.46 million, while clinical diagnostics contributed $308,000, and other revenues totaled $25,000.

Earnings/Net Income

Personalis narrowed its losses per share to $0.18 in Q1 2025, reflecting a 30.8% improvement from the $0.26 loss per share in Q1 2024. However, the net loss widened to $15.75 million in Q1 2025, marking a 21.5% increase from the previous year's $12.97 million loss. Despite improved EPS, net losses remain a challenge.

Price Action

The stock price of Personalis dropped 6.32% during the latest trading day, while it increased by 5.26% during the last trading week and surged 21.21% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Personalis shares after a revenue drop quarter-over-quarter and holding for 30 days has shown a loss of 13.77% over the past five years. This strategy has not been profitable for the company, indicating a need for reconsideration or adjustment. The detailed backtest results highlight the importance of evaluating investment strategies critically. Investors should consider broader market conditions and company-specific developments before making decisions. Continuous losses suggest the company faces ongoing financial challenges, despite some positive growth metrics. Investors must remain vigilant and adapt strategies to changing market dynamics to mitigate potential losses.

CEO Commentary

Christopher Hall, CEO and President, expressed pride in Personalis's strong first quarter, highlighting revenues over $20 million and over 2,000 molecular tests delivered. He emphasized the company's focus on expanding clinical usage and achieving reimbursement for key indications, noting that the MRD market is expected to mature into a $20 billion market. Hall conveyed an optimistic outlook, underscoring the company's commitment to improving outcomes for cancer patients.

Guidance

For 2025, Personalis reiterates revenue guidance of $80 million to $90 million, expecting 30% to 40% quarter-over-quarter growth in molecular results and reimbursement for at least two indications. The second quarter revenue is projected between $19.5 million and $20.5 million, with biopharma revenue ranging from $62 million to $64 million for the year. Gross margin guidance is set at 22% to 24%, with a net loss anticipated around $83 million and cash usage forecasted at approximately $75 million for the year.

Additional News

Recently, Personalis announced its participation in the 24th Annual Needham Virtual Healthcare Conference, showcasing its advancements in genomics and precision oncology. The company also highlighted compelling performance from its NeXT Personal assay for detecting colorectal cancer relapses ahead of imaging in the VICTORI Cancer Study. Furthermore, Personalis has published groundbreaking study results in the Annals of Oncology, demonstrating the NeXT Personal's ultra-sensitive capabilities in detecting breast cancer recurrence far ahead of standard imaging. These developments underscore Personalis's focus on driving innovation in cancer detection and treatment through strategic collaborations and research initiatives.