Precipio (PRPO) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Tue, June 2, 2026 astatine 11:54 AM CDT 22 min read

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DATE

Thursday, April 2, 2026, astatine 5 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Ilan Danieli

• Operator

Full Conference Call Transcript

Ilan Danieli: Good afternoon, everyone, and convey you for joining america contiguous for Precipio's Q1 2026 Shareholder Update Call. On today's call, we'll locomotion done our fiscal results, supply an update connected our operations and commercialized progress. And past for the archetypal clip and pursuing requests from respective of our shareholders, we're going to unfastened it up for a unrecorded Q&A from the audience. At the extremity of my remarks, the relation is going to instrumentality implicit and supply instructions for those who privation to inquire a question. Before reviewing the quarterly financials for Q1, I'd similar to instrumentality a infinitesimal to measurement backmost and sermon wherever we judge the institution is successful the execution of its strategy.

Our ngo astatine Precipio is centered astir advancing crab diagnostics and delivering faster, much accessible and much actionable investigating solutions to laboratories and clinicians. What makes our exemplary unsocial is that we're not lone processing products successful isolation. By operating our ain objective laboratory, we place real-world diagnostic challenges firsthand, validate solutions rapidly successful a objective environment. And past erstwhile our products person demonstrated their clinical, operational and fiscal value, we commercialize them to the broader market. Over the past respective quarters, we've continued to fortify some sides of that model. Our pathology concern continues to supply a unchangeable and increasing operational instauration portion generating currency travel to the company.

And our products concern and expanding commercialized infrastructure are positioning the institution for scalable, semipermanent growth, borderline summation and currency generation. Before we get to the numbers, I'd similar to instrumentality a infinitesimal to sermon a taxable that respective radical person raised, and that is the variability and predictability of the company's revenues. Let's interruption it down by division, starting with pathology services. Generally speaking, the pathology services concern is comparatively predictable. Once we triumph a customer, they usually person a accordant fig of patients coming in. There's a comparatively accordant percent of the patients that volition necessitate immoderate benignant of biopsy, which is sent to our lab. Testing modalities are beauteous standard.

We power costs highly well, truthful determination isn't overmuch variance there. The aforesaid goes for gross build, reimbursement and currency collected each rather predictable. There are 2 elements that are extracurricular of our power and tin origin fluctuations successful the part performance. The archetypal is lawsuit transition. For example, a doc whitethorn discontinue oregon the signifier whitethorn get acquired by a ample infirmary web that internalizes testing. In those situations, the patient's illustration travel from that lawsuit volition stop. The 2nd element, which we experienced this 4th is simply a alteration to reimbursement. Each year, usually successful January, CMS comes retired with its caller interest schedule. As a authorities organization, there's nary negotiations.