Key Highlights

  • Net sales rose 8% to USD 7.3 million in the third quarter of 2026 from USD 6.8 million, with patient diagnostic services at USD 6.3 million and product Revenue at USD 1.0 million.
  • The net loss was USD 8,000 in the quarter, essentially breakeven at USD 0.00 per share, compared with a loss of USD 79,000, or USD 0.05 per share, a year earlier.
  • Gross Margin improved to 46% from 44%, with Gross Profit of USD 3.4 million, and cases processed increased 8% to 4,582 from 4,258.
  • Management targets an annualized revenue run rate above USD 40 million by the end of 2027, against roughly USD 4 million now in products and about USD 6.3 million per quarter in pathology.

Near-Breakeven Quarter Built on Case Volume and Product Sales

Precipio (NASDAQ:PRPO), a diagnostics company that runs a hematopathology laboratory and sells products made for it, filed its Quarterly Report on November 10, 2026 and held its call on November 11, 2026. Net sales were USD 7.3 million, up from USD 6.8 million, and cost of sales rose by only USD 0.2 million, lifting gross profit to USD 3.4 million. Service revenue grew 5% to USD 6.3 million and product revenue grew 40% to USD 1.0 million, passing USD 1 million in a quarter for the first time. The company processed 4,582 cases, though a different mix of case types lowered the average price per case. Operating expenses rose by USD 0.3 million, mostly general and administrative costs.

Nine-Month Loss Widens Even as Cash Generation Continues

The quarter's small loss hides a weaker nine-month picture. For the nine months, net sales were USD 21.1 million, up USD 3.7 million, but the net loss grew to USD 1.7 million, or USD 0.93 per share, from USD 0.9 million, or USD 0.57. The filing states an operating loss of USD 2.0 million for the period, and the prior-year figure benefited from larger employee retention Credit income. Even so, Operating Cash Flow was positive at USD 1.3 million. On the call, management said adjusted EBITDA, a non-GAAP measure, was about USD 400,000 in the quarter, and that quarter-end cash was above USD 3.5 million, compared with about USD 2.3 million a year earlier.

USD 40 Million Run Rate Goal and the Going-Concern Language

Management set targets for the first time: a products run rate above USD 10 million by the end of 2027, compared with about USD 4 million annualized now, and a pathology run rate near USD 30 million. It stressed these are exit-rate goals, not a forecast for 2027 revenue. The plan relies on distributors and a larger commercial team, which will use incoming cash flow. The filing's Liquidity note, however, says the company has an accumulated Deficit of USD 104.5 million and Working Capital of USD 3.1 million, and that continuing as a Going Concern depends on achieving its plan and raising financing if needed. A lower average price per case, from case mix, is one pressure on service revenue.

Where Things Stand

The goal is ambitious, and the evidence so far is mixed. Precipio (NASDAQ:PRPO) nearly broke even in the quarter, with a loss of just USD 8,000, but the nine-month loss widened to USD 1.7 million. Pathology would need to grow from about USD 6.3 million a quarter toward USD 30 million annualized, and products from about USD 1.0 million toward USD 10 million annualized. Next markers are further product revenue gains, hiring in the commercial team, and cash against the going-concern language.