Precipio Q2FY26 Results: Revenue up 22% YoY to $7 million, turns profitable
- Precipio posted record Q2 2026 revenue exceeding $7 million, up 22% YoY
- Adjusted EBITDA turned positive at approx $400,000, up from -$200,000 in Q1
- Product revenue surged 35% QoQ to approx $900,000, beating prior record
- Operating cash flow reached approx $700,000; total cash rose to >$3 million
- Company added 10 distributor reps and identified 25+ new qualified customers
*this image is generated using AI for illustrative purposes only.
Precipio Inc. (NASDAQ: PRPO) reported record second-quarter 2026 revenues exceeding $7 million, marking a 22% year-over-year increase. The diagnostics company returned to positive adjusted EBITDA of approximately $400,000, signaling improved operational leverage.
The results reflect a significant shift in the company’s financial trajectory. After reporting negative adjusted EBITDA of approximately $200,000 in Q1, Precipio swung to profitability as revenue grew and stock-based compensation expenses decreased by approximately $200,000. The company also generated approximately $700,000 in operating cash flow during the quarter.
What the Numbers Show
Product revenue emerged as the primary growth engine, rising 35% quarter-over-quarter to approximately $900,000. This figure represents a 21% increase over the previous quarterly record of approximately $750,000 set in Q4 of the prior year. In contrast, the pathology division saw modest sequential growth, with revenue increasing from approximately $6 million in Q1 to approximately $6.1 million in Q2. The divergence highlights the company’s strategic pivot toward scaling its product business while using the pathology lab primarily for clinical validation and recurring cash flow generation.
| Metric | Q2 2026 | Q1 2026 | Change |
|---|---|---|---|
| Total Revenue | >$7 million | ~$6.7 million | +~5% (QoQ) |
| Product Revenue | ~$900,000 | ~$660,000 | +35% (QoQ) |
| Pathology Revenue | ~$6.1 million | ~$6 million | +~1.7% (QoQ) |
| Adj. EBITDA | ~$400,000 | ~-$200,000 | Turned Positive |
| Operating Cash Flow | ~$700,000 | N/A | N/A |
Commercial Expansion and Cash Position
Precipio ended the quarter with more than $3 million in cash, an increase of approximately half a million dollars from the prior quarter. CEO Ilan Danieli emphasized that this improvement was achieved organically without raising external capital. For context, the cash balance at the end of Q2 last year was approximately $1.1 million.
The company expanded its commercial reach by adding approximately 10 new distributor representatives. It has identified over 25 new qualified customers and held more than 30 meetings with potential clients during the quarter. Danieli noted that the focus for the second half of 2026 is converting these pipeline opportunities into active accounts.
Strategic Flywheel Model
Management reiterated its "flywheel" strategy, where the internal pathology laboratory identifies diagnostic problems, develops solutions like RapidAML for acute myeloid leukemia, and validates them clinically before commercializing them to other labs. This model allows Precipio to scale revenue through product sales without building additional physical laboratories for every new geography.
Looking ahead, the company expects continued revenue growth, further expansion of product revenue, and increased translation of top-line growth into adjusted EBITDA and cash generation.
What specific regulatory or reimbursement hurdles could impact the conversion rate of the 25+ qualified customers identified in Q2?
How sustainable is the current reduction in stock-based compensation, and will it recur in future quarters to support EBITDA margins?
Given the modest growth in pathology revenue, what is the timeline for the lab to transition fully from a cash-flow generator to a pure R&D validation engine?
17
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
