Interpace Biosciences, Inc. (OTCQX: IDXG) reported a return to profitability for the second quarter ended June 30, 2026, delivering income from continuing operations of $0.3 million compared to a loss of $0.5 million in the prior-year quarter. The Parsippany-based molecular diagnostics company generated total revenue of $9.1 million, with thyroid-specific revenue growing 9% year-over-year on a pro forma basis that excludes its discontinued PancraGEN pancreatic testing business. This performance underscores the operational leverage achieved since transitioning to a thyroid-only model in May 2025.

The financial results reflect significant margin expansion, with gross profit percentage rising to 62% from 54% on a pro forma basis. Adjusted EBITDA reached $0.7 million, representing an 8% margin, up from $0.2 million or 3% in the prior-year quarter. The reported income included approximately $0.2 million of non-recurring professional fees related to strategic initiatives. Operating income stood at $0.3 million, contrasting sharply with an operating loss of $0.6 million in the comparable pro forma period of 2025.

Operational Highlights

Volume and efficiency metrics improved across key operational indicators during the quarter. Thyroid test volume increased 6% year-over-year, while average revenue per test grew by 3%. The company also reported a 17% improvement in turnaround time and a 5% increase in the number of accounts. Days sales outstanding (DSO) improved by 3%, indicating stronger cash collection dynamics. These gains were supported by the deployment of laboratory automation into production during the second quarter, allowing the company to scale operating leverage without increasing headcount.

Strategic Developments

Interpace announced the appointment of a Chief Scientific Officer effective September 8, 2026, to lead scientific strategy and assay development. The company is also advancing its pancreatic cancer program, which utilizes its existing next-generation sequencing and microRNA technology platforms. Analytical validation for this new panel is underway, with clinical validation studies planned across 2026 and 2027. Management noted that this program is not expected to contribute revenue in 2026.

What the Numbers Show

The divergence between reported revenue and pro forma thyroid revenue highlights the structural shift in Interpace’s business model. While reported revenue decreased slightly by 1% to $9.1 million from $9.2 million in Q2 2025, the underlying thyroid business grew robustly. The expansion in gross margin from 54% to 62% on a pro forma basis demonstrates that the cost structure associated with the discontinued PancraGEN business was significantly heavier than the current thyroid-only operations. This suggests that future profitability will be increasingly driven by volume growth in the core thyroid franchise rather than broad revenue aggregation.

Year-to-Date Performance

For the six months ended June 30, 2026, revenue totaled $18.2 million, a 12% increase from the $16.3 million reported in the prior-year period on a pro forma basis. Gross profit percentage for the half-year was 64%, up from 57% previously. Income from continuing operations for the six-month period was $1.1 million, compared to a loss of $0.2 million in the prior year. Cash collections for Q2 2026 were $8.8 million, while trailing twelve-month thyroid revenue reached $36.1 million, an 11% increase over the comparable prior period.