Precipio, Inc. Q2 2026 Earnings: Revenue Beats $7.02 Million Record

Quick Verdict

Precipio reported a Q2 2026 GAAP loss of $0.12 per share on record net sales of $7.02 million, up 24.2% year over year. Revenue exceeded the reported $1.68 million consensus figure, while EPS beat the cited $-\mathrm{\$}2.00$−$2.00 consensus. PRPO closed at $23.50 on August 14, before subsequently trading near $23.90.

About Precipio, Inc.

Precipio, Inc. (NASDAQ: PRPO) is a specialty cancer-diagnostics and healthcare biotechnology company headquartered at 4 Science Park, New Haven, Connecticut. The company operates through two complementary revenue-generating activities: pathology services, which provide specialized diagnostic testing—particularly for hematologic cancers—and proprietary diagnostic product development and commercialization for clinical laboratories. Its CLIA laboratory network in New Haven and Omaha supports both clinical testing and the real-world validation of diagnostic products.

Precipio’s operating model seeks to combine laboratory-service revenue with product development, allowing its clinical operations to serve as a lower-cost source of diagnostic data, workflow validation, and R&D support. The company had approximately 1.79 million common shares outstanding as of August 10, 2026. At a reported subsequent share price of $23.90, this implies an approximate equity market capitalization of $42 million. PRPO did not report a dividend yield, and its P/E ratio is not meaningful because it recorded a quarterly net loss.

Top Financial Highlights

1. Net sales reached a quarterly record of $7.021 million, compared with $5.654 million in Q2 2025, an increase of 24.6%.
2. Reported revenue before the allowance adjustment was $7.021 million, including $6.115 million in service revenue and $0.906 million in product revenue.
3. Pathology/service revenue rose 22.2% year over year, from $5.005 million to $6.115 million.
4. Product revenue increased 45.2% year over year, from $0.624 million to $0.906 million.
5. Product revenue was also up from $0.66 million in Q1 2026, according to the company’s earnings release.
6. Gross profit increased to $3.136 million from $2.429 million in the prior-year quarter.
7. Gross margin expanded to 44.7%, versus 43.0% in Q2 2025.
8. GAAP net loss was $0.219 million, compared with net income of $0.074 million a year earlier.
9. Basic and diluted EPS was −$0.12−$0.12, compared with $0.05 in Q2 2025.
10. Operating loss improved to $0.599 million, compared with $0.824 million in Q2 2025, despite operating expenses rising to $3.735 million.
11. Adjusted EBITDA was positive at $0.4 million, versus −$0.2million−$0.2million in Q1 2026 and −$0.1million−$0.1million in Q2 2025. This non-GAAP improvement reflected higher revenue and lower stock-based compensation versus the immediately preceding quarter.
12. Cash flow from operations was $0.7 million in Q2, although the company’s formal six-month cash-flow statement reported $0.724 million for the first half. The company said the quarterly cash-flow result benefited from operating momentum, while the 10-Q notes that cash generation over the last 18 months was materially aided by non-recurring Employee Retention Credit receipts.
13. Quarter-end cash was $3.075 million, up from $1.130 million at June 30, 2025 and $2.651 million at year-end 2025.
14. Working capital was approximately $2.8 million at June 30, 2026, based on current assets of $6.537 million and current liabilities of $3.701 million.
15. Diagnostic cases processed reached 4,652, up 26% from 3,692 in Q2 2025.
16. Management did not provide quantified Q3 2026 or full-year 2026 revenue, EPS, or EBITDA guidance. Its outlook called for continued second-half revenue growth, greater product-revenue conversion, and improved operating leverage.

EBITDA and Adjusted EBITDA Reconciliation and Explanation

(Source: finanzwire.com)

• The image presents a reconciliation from GAAP net income/loss to EBITDA and Adjusted EBITDA for Q2 2026 compared with Q2 2025, with figures reported in USD millions.
• Profitability improved on an adjusted basis despite weaker GAAP earnings. The company reported a GAAP net loss of $0.2 million in Q2 2026, compared with net income of $0.1 million in Q2 2025. Reported EBITDA declined to approximately $0.0 million from $0.4 million.
• However, after further adjustments, Adjusted EBITDA improved to $0.4 million in Q2 2026, compared with an Adjusted EBITDA loss of $0.1 million in Q2 2025. The improvement was primarily influenced by higher stock-based compensation of $0.8 million, versus $0.4 million a year earlier, along with the treatment of other significant income and expenses.
• Overall, the table indicates that while GAAP profitability softened, the company’s adjusted operating performance showed a year-over-year improvement.

Beat or Miss?

What Leadership Is Saying

“As anticipated, Q2 operating performance reflects a healthy recovery and continued momentum across the business, with customer growth generating quarterly revenue surpassing $7M for the first time in Company history.” — Ilan Danieli, CEO of Precipio.

“We’ve achieved this level of cash without a financing event, demonstrating the strength of our operations. We’re encouraged by the progress we’ve made and believe we are well positioned to continue building on this momentum.” — Ilan Danieli, CEO of Precipio.

Precipio’s earnings release and its reported call materials did not contain a separately attributed CFO quote. The company’s available commentary was delivered by CEO Ilan Danieli, so assigning a financial statement to a CFO would be unsupported by the source material.

Historical Performance

Precipio delivered strong top-line expansion, driven especially by higher product revenue, and generated margin expansion. However, GAAP earnings turned negative compared with the prior-year quarter because Q2 2025 included $0.789 million of Employee Retention Credit income plus a $0.143 million gain on settlement of a liability, compared with a smaller $0.389 million credit in Q2 2026.

Competitor Comparison

A direct, like-for-like Q2 2026 competitor comparison is not available in Precipio’s press release or 10-Q. More importantly, Precipio’s business combines pathology services with proprietary diagnostic products, which makes direct financial comparability with pure-play diagnostics, pathology labs, or molecular-testing companies potentially misleading.

For competitive benchmarking, the most useful operational indicators are likely Precipio’s 45% gross margin, 45% growth in product revenue, and 26% growth in diagnostic case volume, rather than raw revenue scale alone.

How the Market Reacted?

The earnings release itself did not report an immediate stock-price move, so a definitive after-hours reaction cannot be attributed to the company’s announcement. PRPO closed at $23.50 on August 14, 2026, up 1.25% for the day, according to the cited market data, and subsequent source data showed shares at $23.90, up 1.70%.

The report’s underlying signal was mixed but cautiously constructive: record revenue, positive adjusted EBITDA, higher cash, and strong product growth support a positive operating narrative. Conversely, the 10-Q retained explicit substantial doubt about Precipio’s ability to continue as a going concern over the next 12 months, citing historical losses, a $104.5 million accumulated deficit, and the need to execute its business plan, grow revenue, and potentially secure financing.