Sera Prognostics 2025 Q1 Earnings Narrowed EPS Loss Despite Increased Net Income Loss

Sera Prognostics (SERA) reported its fiscal 2025 Q1 earnings on May 07th, 2025. Sera Prognostics' performance showed improvement in its EPS, narrowing losses to $0.20 per share from $0.25 per share in the previous year, exceeding expectations. Despite the widened net loss, the company remains optimistic about its strategic initiatives aimed at driving adoption of its PreTRM® Test. Guidance was in-line with expectations, as the company continues to push for Medicaid market expansion and anticipates impactful adoption rates in the coming periods.

Revenue

The total revenue of Sera Prognostics increased by 0.0% to $38,000 in 2025 Q1, up from $0 in 2024 Q1.

Earnings/Net Income

Sera Prognostics narrowed losses to $0.20 per share in 2025 Q1 from a loss of $0.25 per share in 2024 Q1 (20.0% improvement). Meanwhile, the company's net loss widened to $-8.19 million in 2025 Q1, representing a 1.1% increase from the $-8.10 million loss recorded in 2024 Q1. The company has sustained losses for 6 years over the corresponding fiscal quarter, highlighting ongoing financial headwinds. Despite the narrowed EPS loss, financial challenges persist.

Price Action

The stock price of Sera Prognostics has dropped 4.38% during the latest trading day, has plummeted 18.37% during the most recent full trading week, and has plummeted 24.76% month-to-date.

Post Earnings Price Action Review

The strategy of buying Sera Prognostics (SERA) shares after revenue equal q/q and holding for 30 days has resulted in significant losses over the past 5 years. The total return was -74.68%, with a sharp decline of -70.52% this year alone. This performance clearly indicates that this investment strategy has not been profitable for SERA stockholders. Investors are urged to reconsider their approach, as the current trajectory suggests that holding onto SERA shares with this particular strategy is unlikely to yield favorable results. The persistent negative returns call for a strategic reassessment to find more viable investment paths moving forward.

CEO Commentary

Sera Prognostics' President and CEO, Zhenya Lindgardt, emphasized the company's strategic focus on leveraging the successful PRIME study results to enhance engagement with payors and plan administrators, particularly in regions significantly affected by premature births. He highlighted ongoing discussions with Medicaid plans across three states to implement pilot programs for the PreTRM® Test, aiming to demonstrate its potential for healthcare cost savings and improved patient outcomes. Lindgardt expressed optimism about the company's future, indicating that while progress may take time, they expect positive adoption trends for the PreTRM Test driven by these efforts.

Guidance

Sera Prognostics anticipates a strong presence at the upcoming ACOG 2025 Annual Clinical & Scientific Meeting, where they aim to foster interest in ongoing evidence generation for the PreTRM Test. The company is actively pursuing opportunities within the Medicaid market, which constitutes approximately half of their market potential for the PreTRM Test. They expect that as engagement with key plan providers evolves, there will be a significant impact on adoption rates, reinforcing their strategic growth initiatives in the coming periods.

Additional News

Sera Prognostics announced significant changes to its Board of Directors, with Jeff Elliott joining the board on March 20, 2025. Elliott brings extensive experience in corporate strategy and commercializing molecular diagnostics, previously serving as CFO and COO at Exact Sciences. The company also announced that Ryan Trimble will retire and step down as director on June 30, 2025, after 14 years of service, and Marcus Wilson will not seek re-election at the 2025 Annual Meeting of Stockholders. These departures are part of the board's ongoing efforts to refresh its composition and expertise. Additionally, Sera Prognostics announced a $50 million public offering in February 2025 to expand its commercial infrastructure in the United States and fund studies for PreTRM test adoption.