Precipio Stock Gains Post Q2 Earnings, Revenue Momentum Strong

Shares of Precipio, Inc. PRPO have gained 26.8% since the company reported its earnings for the quarter ended June 30, 2026. This compares to the S&P 500 Index’s 2% loss over the same time frame. Over the past month, the stock gained 25.3% compared with the S&P 500’s 1.7% gain.

Precipio’s Earnings Snapshot

Precipio reported second-quarter 2026 net sales of $7 million, up 24.7% from $5.7 million a year earlier. The company swung to a net loss of $219,000, or 12 cents per share, from net income of $74,000, or 5 cents per share, in the prior-year quarter.

Service revenues, net of the allowance for credit losses, increased 21.6% to $6.1 million from $5 million, aided by higher diagnostic case volumes. Product revenues jumped 45.2% to $906,000 from $624,000.

Precipio operates as a single reporting segment encompassing its pathology services and product divisions.

PRPO’s Other Key Business Metrics

Gross profit increased 29.1% year over year to $3.1 million from $2.4 million, while gross margin expanded to 45% from 43%. The improvement reflected higher case volumes and revenues. Precipio processed 4,652 diagnostic cases during the quarter, up 26% from 3,692 cases in the year-ago period.

Cost of sales increased 20.5%, reflecting higher reagent, operating-supply, personnel and pathologist interpretation costs associated with the greater case volume.

Adjusted EBITDA was $0.4 million against an adjusted EBITDA loss of $0.1 million a year earlier. On a sequential basis, adjusted EBITDA improved from a loss of $0.2 million in the first quarter.

Cash generation also improved. Management said PRPO generated $0.7 million of operating cash flow during the quarter, while cash increased to $3.1 million. The cash balance compared with roughly $1.1 million at the end of the second quarter of 2025.

Precipio’s Management Commentary

CEO Ilan Danieli characterized the quarter as validation of Precipio’s operating model, pointing to record quarterly revenue, positive adjusted EBITDA and internally generated cash. Management emphasized that the increase in cash was achieved without raising capital.

The product business was a particular focus. Product revenues of $0.9 million were 21% above the company’s previous quarterly record of $750,000 set in the fourth quarter of 2025.

During second-quarter 2026, the commercial team added about 10 distributor representatives, identified more than 25 new qualified customers and had more than 30 meetings either scheduled or completed with those prospects.

Factors Influencing PRPO’s Results

Higher diagnostic activity was a key revenue driver, with the 26% increase in cases supporting growth in service revenues. At the same time, higher volumes increased costs for reagents, operating supplies, personnel and pathologist interpretation, pushing total cost of sales higher.

Operating expenses increased 14.8% year over year. General and administrative expenses rose $0.1 million, mainly on higher legal and professional fees, while sales and marketing expenses increased $0.1 million because of personnel costs associated with new product-division sales hires. Stock-based compensation increased $0.3 million. Other income totaled $380,000 (including $389,000 of Employee Retention Credit income), down from total other income of $898,000 a year earlier.

Precipio’s Outlook

Management did not provide specific revenue or earnings targets for the second half of 2026 but expects continued revenue and product revenue growth. PRPO plans to expand its customer base and commercial reach and expects more opportunities in its product pipeline to convert into active accounts and revenue.

Management also intends to focus on operating leverage, with revenue growth translating into adjusted EBITDA and ultimately cash generation.

PRPO’s Other Developments

In May 2026, Precipio entered into a five-year loan agreement to finance laboratory equipment. The $300,000 loan is secured by the equipment and carries monthly interest at 8.9%.

PRPO did not disclose any acquisitions, divestitures or significant business restructuring during the quarter.

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