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Precipio Inc (PRPO)
NASDAQ:PRPO
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Precipio (PRPO) AI Stock Analysis

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PRPO

Precipio

(NASDAQ:PRPO)

Rating:60Neutral
Price Target:
$15.00
▼(-1.70% Downside)
Precipio's overall score is driven by strong earnings call insights and positive technical indicators. However, financial performance and valuation concerns, including ongoing losses and negative cash flow, weigh down the score. Recent corporate advancements provide a positive outlook, but profitability improvements are crucial for a higher score.

Precipio (PRPO) vs. SPDR S&P 500 ETF (SPY)

Precipio Business Overview & Revenue Model

Company DescriptionPrecipio, Inc., a healthcare solutions company, provides diagnostic products, reagents, and services in the United States. It provides diagnostic blood cancer testing services. The company offers IV-Cell, a proprietary cell culture media that enables simultaneous culturing of four hematopoietic cell lineages; HemeScreen, a suite of robust genetic diagnostic panels; ICE-COLD PCR, a proprietary and patented specimen technology that increases the sensitivity of molecular based tests; and COVID-19 antibody tests. It sells ICE-COLD-PCR technology kits to bio-pharma customers. Precipio, Inc. has collaborations with academic institutions specializing in cancer research, diagnostics, and treatment. The company is based in New Haven, Connecticut.
How the Company Makes MoneyPrecipio generates revenue through multiple streams, including the provision of its molecular diagnostic testing services, which are billed to healthcare providers and patients. The company also earns income from its proprietary technology platform, which offers software solutions for data analysis and reporting in oncology. Key revenue streams include sales from diagnostic tests, licensing agreements for its technology, and partnerships with healthcare institutions that utilize its services. Additionally, collaborations with pharmaceutical companies for clinical trial support and companion diagnostics further contribute to its earnings, enhancing the company's financial stability.

Precipio Earnings Call Summary

Earnings Call Date:Aug 13, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 24, 2025
Earnings Call Sentiment Positive
The earnings call for Precipio shows strong financial and operational improvements, particularly in revenue growth and gross margin enhancement. While there were minor setbacks, such as a slight decline in product gross margin and operational challenges faced by the Products division, the company has demonstrated resilience and strategic foresight to overcome these issues. The overall sentiment is positive, with significant progress towards breakeven and strategic initiatives in place to support continued growth.
Q2-2025 Updates
Positive Updates
Strong Revenue Growth in Pathology Services
The Pathology Services division is growing at an annualized growth rate of about 70%, contributing positively to overall company performance.
Products Division Recovery
Products revenue grew by 23% from the previous quarter, representing an almost 100% annualized growth rate, indicating recovery from last year's temporary decline.
Gross Margin Improvement
Overall company gross margins improved from 39% to 43%, showing positive financial progress.
New Customer Pipeline
A strong pipeline of new customers is in various onboarding stages, expected to contribute to continued growth in Q3.
Record Revenue in July
In July, Pathology Services achieved a new record, exceeding $2 million in revenue in a single month.
Strategic Investment in Laboratory Expansion
Investments were made in expanding laboratory space and acquiring key equipment, with only a modest impact on near-term trajectory towards breakeven.
Distributor Pipeline Growth
An increase in the pipeline generated by distributors marks progress in scaling up the business.
Warrant Conversion Structure to Minimize Dilution
The company structured a warrant conversion to minimize dilution and manage capital structure responsibly.
Negative Updates
Slight Decline in Product Gross Margin
There was a slight decline in product gross margin this quarter, although it is expected to reverse next quarter.
Operational Challenges in Products Division
The Products division faced revenue fluctuation due to customer operational challenges, impacting growth visibility.
Company Guidance
During the Precipio Q2 2025 Shareholder Update Conference Call, CEO Ilan Danieli highlighted strong performance metrics, including a 70% annualized growth rate in the Pathology Services division and a 23% quarter-over-quarter revenue increase in the Products division, almost doubling on an annualized basis. Gross margins improved from 39% to 43%, despite a temporary decline in product gross margin. Danieli emphasized a robust pipeline for Q3 with new customers in onboarding stages, contributing to continued growth. The company reached a new record in July, exceeding $2 million in monthly Pathology Services revenue. Strategic investments were made in lab space and equipment, with management confident of reaching breakeven in 2025 without additional capital. The call also detailed a warrant conversion strategy to minimize dilution and highlighted increased interest from investors, contributing to a significant stock price increase.

Precipio Financial Statement Overview

Summary
Precipio is showing revenue growth and improved cost management, yet faces profitability challenges with negative margins. The balance sheet is stable with strong equity and low debt levels, providing a solid foundation for future growth. Cash flow improvements are promising, but the company needs to achieve profitability to enhance financial health further.
Income Statement
70
Positive
Precipio has shown a consistent growth in revenue, with a notable increase of 21.2% in the TTM (Trailing-Twelve-Months) compared to the previous year. However, the company is still operating at a loss with a negative net profit margin of -16.0% in the TTM. The gross profit margin improved to 43.8% in the TTM, indicating better cost management. The EBIT and EBITDA margins are negative, reflecting operational inefficiencies.
Balance Sheet
65
Positive
The company's balance sheet reflects a stable equity base with an equity ratio of 65.8% in the TTM, signaling financial stability. The debt-to-equity ratio is low at 0.18, indicating limited financial leverage. However, return on equity remains negative due to ongoing losses, which is a concern for profitability.
Cash Flow
60
Neutral
Precipio's cash flow shows improvement with positive operating cash flow in the TTM, representing a significant recovery. Free cash flow also turned positive, indicating better cash management. However, both operating cash flow to net income and free cash flow to net income ratios are not optimal due to negative net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue19.36M15.96M15.20M9.41M8.85M6.09M
Gross Profit8.48M7.56M6.02M2.51M2.39M1.15M
EBITDA-1.88M-2.70M-4.32M-10.65M-7.05M-8.77M
Net Income-3.10M-4.29M-5.85M-12.20M-8.55M-12.23M
Balance Sheet
Total Assets17.79M17.00M18.10M21.50M30.44M20.71M
Cash, Cash Equivalents and Short-Term Investments1.02M1.39M1.50M3.44M11.67M2.66M
Total Debt2.23M1.25M1.12M1.39M1.43M1.49M
Total Liabilities6.09M4.90M3.67M5.14M5.83M6.55M
Stockholders Equity11.70M12.09M14.43M16.30M24.56M14.13M
Cash Flow
Free Cash Flow701.00K216.00K-3.69M-8.00M-7.26M-7.58M
Operating Cash Flow1.06M439.00K-3.56M-7.72M-6.58M-7.43M
Investing Cash Flow-361.00K-223.00K-126.00K-277.00K-682.00K-96.00K
Financing Cash Flow-460.00K-329.00K1.74M-225.00K16.27M9.34M

Precipio Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.26
Price Trends
50DMA
13.73
Positive
100DMA
10.79
Positive
200DMA
8.63
Positive
Market Momentum
MACD
0.24
Positive
RSI
63.94
Neutral
STOCH
40.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRPO, the sentiment is Positive. The current price of 15.26 is above the 20-day moving average (MA) of 14.40, above the 50-day MA of 13.73, and above the 200-day MA of 8.63, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 63.94 is Neutral, neither overbought nor oversold. The STOCH value of 40.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRPO.

Precipio Risk Analysis

Precipio disclosed 62 risk factors in its most recent earnings report. Precipio reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Precipio Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$23.34M-14.76%27.05%55.03%
51
Neutral
$7.83B-0.18-40.10%2.29%21.46%-2.03%
48
Neutral
$26.54M77.20%-4.02%-6.31%
47
Neutral
$18.68M-118.26%-25.02%85.08%
47
Neutral
$7.18M-1802.45%4.99%22.58%
46
Neutral
$13.14M-186.64%-1.90%87.72%
45
Neutral
$25.14M-55.06%41.79%18.44%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PRPO
Precipio
15.26
8.79
135.86%
TRIB
Trinity Biotech
1.48
-0.51
-25.63%
DRIO
DarioHealth
0.48
-0.33
-40.74%
BNGO
BioNano Genomics
3.90
-25.09
-86.55%
INBS
Intelligent Bio Solutions
1.59
0.22
16.06%
BIAF
bioAffinity Technologies, Inc.
0.25
-1.30
-83.87%

Precipio Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Precipio Unveils Advancements in AML Diagnostic Technology
Positive
Aug 18, 2025

On August 18, 2025, Precipio Inc released an updated investor presentation, highlighting its advancements in diagnostic technology, particularly for Acute Myeloid Leukemia (AML). The company’s rapid AML test significantly reduces diagnosis time, offering immediate treatment options and improving patient outcomes. Precipio’s innovative product development platform and profitable clinical lab business support its R&D efforts, addressing industry challenges such as diagnostic errors and delays, and enabling cost-effective solutions with high gross margins.

Shareholder MeetingsBusiness Operations and Strategy
Precipio Announces Q2-2025 Shareholder Update Call
Neutral
Jul 31, 2025

On July 31, 2025, Precipio, Inc. announced it will host a Q2-2025 Shareholder Update Call on August 14, 2025, at 5:00 PM ET. The call will provide updates on the company’s core businesses, reflecting its commitment to transparency and stakeholder engagement.

Executive/Board ChangesShareholder Meetings
Precipio Holds Annual Stockholders Meeting, Approves Proposals
Neutral
Jun 17, 2025

On June 17, 2025, Precipio, Inc. held its Annual Meeting of stockholders, where two key proposals were voted on and approved. The stockholders elected Ilan Danieli and David S. Cohen as Class I directors for terms expiring in 2028 and ratified the appointment of CBIZ CPAs, P.C. as the independent registered public accounting firm for the year ending December 31, 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025