Precipio, Inc. Reports Positive Adjusted EBITDA and Cash Flow for Q4 2024

Precipio, Inc. reports positive Adjusted EBITDA and cash flow for Q4-2024, highlighting improved financial stability and growth potential.

Quiver AI Summary

Precipio, Inc., a specialty cancer diagnostics company, announced significant financial achievements for the fourth quarter of 2024, including a positive Adjusted EBITDA of $0.4 million and an increase of $0.3 million in cash flow. These results indicate the company's capacity for financial independence as it generates cash from its pathology services, supporting ongoing research and development alongside investments in its product offerings. CEO Ilan Danieli highlighted the importance of these results for establishing a growth-focused strategy free from reliance on external capital. However, management cautioned that financial performance may vary in upcoming quarters due to factors like reduced revenue from insurance deductibles. Overall, the company is optimistic about maintaining momentum and achieving future profitability.

Potential Positives

• Precipio achieved positive Adjusted EBITDA of $0.4 million for Q4 2024, marking a significant financial milestone for the company.
• The company reported an increase of $0.3 million in cash during Q4 2024, demonstrating improved cash flow from operations.
• Management emphasizes that the company is now financially independent, reducing reliance on outside capital and allowing for focus on growth and value creation.
• The press release indicates a commitment to reporting Adjusted EBITDA in future quarters, providing investors with a useful perspective on the company's financial health.

Potential Negatives

• Negative net income of $(0.3) million indicates the company is still operating at a loss, despite positive Adjusted EBITDA and increased cash flow.
• Management acknowledges that future financial performance may fluctuate negatively, suggesting instability in expected growth.
• Cash flow improvement partially attributed to stock-based compensation, raising concerns about dependency on non-operating income sources.

FAQ

What financial achievements did Precipio announce for Q4-2024?

Precipio reported positive Adjusted EBITDA of $0.4M and a $0.3M increase in cash flow for Q4-2024.

How does Precipio define Adjusted EBITDA?

Adjusted EBITDA is defined as EBITDA less non-cash stock-based compensation and other significant non-operating expenses.

What does Precipio focus on in its business model?

Precipio specializes in cancer diagnostics, aiming to reduce misdiagnoses through innovative diagnostic products and services.

How does management view future financial performance?

Management anticipates fluctuations in financial performance but believes the company is on track for profitability.

Where can I find more information about Precipio?

Additional information is available on Precipio's website at https://www.precipiodx.com/ and on their social media platforms.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$PRPO Insider Trading Activity

$PRPO insiders have traded $PRPO stock on the open market 3 times in the past 6 months. Of those trades, 1 have been purchases and 2 have been sales.

Here’s a breakdown of recent trading of $PRPO stock by insiders over the last 6 months:

• RICHARD A SANDBERG has made 1 purchase buying 15,000 shares for an estimated $87,000 and 2 sales selling 14,000 shares for an estimated $86,958.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$PRPO Hedge Fund Activity

We have seen 2 institutional investors add shares of $PRPO stock to their portfolio, and 7 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• KENNEDY CAPITAL MANAGEMENT LLC removed 41,894 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $280,689
• SUSQUEHANNA INTERNATIONAL GROUP, LLP removed 13,208 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $88,493
• RENAISSANCE TECHNOLOGIES LLC added 10,100 shares (+inf%) to their portfolio in Q4 2024, for an estimated $55,951
• UBS GROUP AG added 1,400 shares (+inf%) to their portfolio in Q4 2024, for an estimated $7,755
• WELLS FARGO & COMPANY/MN removed 500 shares (-90.9%) from their portfolio in Q4 2024, for an estimated $2,769
• CITIGROUP INC removed 470 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $2,603
• TOWER RESEARCH CAPITAL LLC (TRC) removed 220 shares (-36.0%) from their portfolio in Q4 2024, for an estimated $1,218

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

NEW HAVEN, Conn., Feb. 25, 2025 (GLOBE NEWSWIRE) -- Specialty cancer diagnostics company


Precipio, Inc.




(NASDAQ: PRPO)


, announces that it has achieved two important financial goals in the last quarter of 2024:

1. 
   Positive Adjusted EBITDA – Precipio reports (unaudited)
   
   A
   
   
   djusted EBITDA of $0.4
   
   
   M
   
   for Q4-2024. Adjusted EBITDA is a non-GAAP metric that comprises EBITDA, less non-cash stock-based compensation expense and other significant or non-operating (income) or expenses. Please see a detailed explanation at the bottom of this press release.
   
   
   
   
   


2. 
   Positive Cash flow. Precipio reports an (unaudited)
   
   increase of $0.3M
   
   in cash during Q4-2024. Of this improvement, $75,000 was due to directors’ fees paid in stock; the balance is cash flow from operations.
   
   
   

The combination of these two factors demonstrates the Company’s ability to achieve and sustain financial independence by generating enough positive cash flow from its pathology service division to fund ongoing R&D as well as continued, consistent investment in growing the high value product business. Management notes that the financial performance in future quarters may fluctuate from positive to negative due to various factors. One such occurrence may occur in Q1 when pathology business revenues and cash receipts are typically reduced by renewed insurance deductibles. Prior years’ experience indicates operating results will not be affected by these factors nearly as much in Q2.

However, with the Company’s current cash reserves and growth pipeline, management believes it is on track to turn the corner and become a profitable company.

“Ending 2024 with these financial results is an important step for our company. While we may still face the ups and downs as we grow the business, it is evident that our company can translate business growth into positive financial outcomes, and build the value its shareholders deserve to have,” said Ilan Danieli, CEO. “Managing a company that no longer relies on outside capital infusions for its survival enables us to make decisions based on growth and value creation without the constraints imposed by cash conservation concerns. We can focus on building capabilities and channeling them towards developing our products and growing the business. We are on track to have an exciting year for our company.”

EBITDA and Adjusted EBITDA Reconciliation and Explanation

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a non-GAAP financial measure that is widely used to evaluate operational performance and pre-tax profitability. Management believes Adjusted EBITDA provides investors with a useful perspective on the company’s financial health, particularly where non-cash amortization has an important impact on profitability.

Adjusted EBITDA as we define it will also exclude the non-cash costs of employee stock options and unusual, one-time costs. This is the first time we are reporting Adjusted EBITDA and we intend to continue reporting it in future quarters.

Below is a reconciliation of Net Income, EBITDA and Adjusted EBITDA for the fourth quarter of 2024:

About Precipio

Precipio is a healthcare biotechnology company focused on cancer diagnostics. Our mission is to address the pervasive problem of cancer misdiagnoses by developing solutions in the form of diagnostic products and services. Our products and services deliver higher accuracy, improved laboratory workflow, and ultimately better patient outcomes, which reduce healthcare expenses. Precipio develops innovative technologies in our laboratory where we design, test, validate, and use these products clinically, improving diagnostic outcomes. Precipio then commercializes these technologies as proprietary products that serve the global laboratory community and further scales Precipio’s reach to eradicate misdiagnosis.

Availability of Other Information About Precipio

For more information, please visit the Precipio website at


https://www.precipiodx.com/


or follow Precipio on X (formerly Twitter) (


@PrecipioDx


) and


LinkedIn


(Precipio) and on


Facebook


. Investors and others should note that we communicate with our investors and the public using our company website (

https://www.precipiodx.com

), including, but not limited to, company disclosures, investor presentations and FAQs, Securities and Exchange Commission filings, press releases, public conference call transcripts and webcast transcripts, as well as on X and LinkedIn. The information that we post on our website or on X or LinkedIn could be deemed to be material information. As a result, we encourage investors, the media and others interested to review the information that we post there on a regular basis. The contents of our website or social media shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding the targets set herein and related timing. Except for historical information, statements about future volumes, sales, growth, costs, cost savings, margins, earnings, earnings per share, diluted earnings per share, cash flows, adjusted EBITDA, plans, objectives, expectations, growth or profitability and our potential to reach financial independence are forward-looking statements based on management’s estimates, beliefs, assumptions and projections. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic and financial performance, are intended to identify such forward-looking statements. These forward-looking statements are only predictions based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and our other reports filed with the U.S. Securities and Exchange Commission. Any such forward-looking statements represent management’s estimates as of the date of this press release only. While we may elect to update such forward-looking statements at some point in the future, except as required by law, we disclaim any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.