Precipio Inc (PRPO)
NASDAQ:PRPO
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Precipio
(NASDAQ:PRPO)
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Rating:56Neutral
Price Target:
$26.00
▲(12.60% Upside)
Action:Reiterated
Date:05/19/26
The score is anchored by improving financial fundamentals (positive operating/free cash flow, revenue growth, and manageable leverage) but is held back by weak technicals (trading below key moving averages with negative MACD) and limited valuation support due to negative earnings. Earnings-call guidance is constructive on pipeline and scalability, yet near-term headwinds (CMS cut, margin compression, and variable go-live timing) temper the outlook.
Positive Factors
Sustained top-line growth
Consistent >30% YoY revenue growth demonstrates durable demand for Precipio’s specialty diagnostic services and expanding clinical adoption. For a lab services model, sustained volume growth drives recurring billed activity, supports pricing negotiations with payors, and underpins long-term scalability as pipelines convert to revenue.
Negative Factors
Incomplete profitability
Despite improving margins and positive cash flow, the company still posts a small net loss. Persistent negative net income constrains retained-capital accumulation and makes the firm more sensitive to reimbursement shocks or execution delays, limiting long-term strategic flexibility until profits are consistently positive.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained top-line growth
Consistent >30% YoY revenue growth demonstrates durable demand for Precipio’s specialty diagnostic services and expanding clinical adoption. For a lab services model, sustained volume growth drives recurring billed activity, supports pricing negotiations with payors, and underpins long-term scalability as pipelines convert to revenue.
Read all positive factors
Precipio (PRPO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.72M
Dividend YieldN/A
Average Volume (3M)19.92K
Price to Earnings (P/E)―
Beta (1Y)0.63
Revenue Growth28.97%
EPS Growth75.43%
CountryUS
Employees54
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-0.48
Shares Outstanding1,787,372
10 Day Avg. Volume16,445
30 Day Avg. Volume19,918
Financial Highlights & Ratios
PEG Ratio1.10
Price to Book (P/B)2.53
Price to Sales (P/S)1.53
P/FCF Ratio102.74
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue1.63
Enterprise Value/Gross Profit3.77
Enterprise Value/Ebitda45.66
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)27.4
Revenue Forecast (FY)$80.26M
Precipio Business Overview & Revenue Model
Company Description
Precipio, 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 enab...
How the Company Makes Money
Precipio makes money primarily by performing and billing for diagnostic laboratory tests delivered through its clinical lab operations. Revenue is generated when clinicians order the company’s tests for patients; Precipio then processes specimens ...
Precipio Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call presented a mix of strong underlying trends and short-term headwinds. Positives include >30% YoY revenue growth, a growing pathology business, a $10M annualized commercial pipeline and positive operating cash flow. Near-term negatives included an 8% CMS reimbursement cut causing a ~$0.5M write-down, a QoQ gross margin decline (47% to 40%), and an adjusted EBITDA decline to -$200k driven by timing and investment-related factors. Management framed most negatives as one-time or investment-driven and emphasized scalability, available lab capacity, and commercial momentum, with expectations for margin recovery as product revenue scales.Positive Updates
Commercial Team and Pipeline Build
New commercial team established relationships with ~20 distributor reps, identified 10 new qualified customer opportunities, added approximately $3 million of annualized revenue potential in Q1; combined pipeline now ~ $10 million of annualized revenue potential.
Negative Updates
CMS Reimbursement Reduction and Revenue Write-Down
The 2026 CMS fee schedule included an 8% reduction on a frequently used flow cytometry test, leading to an approximate $0.5 million revenue write-down this quarter and an associated gross profit impact (management cited ~ $125,000 related gross profit effect).
Read all updates
Q1-2026 Updates
Positive
Negative
Commercial Team and Pipeline Build
New commercial team established relationships with ~20 distributor reps, identified 10 new qualified customer opportunities, added approximately $3 million of annualized revenue potential in Q1; combined pipeline now ~ $10 million of annualized revenue potential.
Read all positive updates
Company Guidance
Management guided that they expect continued commercial-pipeline expansion and increased conversion into revenue in the second half of 2026, with margins improving as recent commercial investments and scaled production drive revenue growth; key metrics cited include Q1 total revenue of $6.71M (flat Q/Q, +30% YoY), pathology revenue of about $6.0M (up from $5.9M, +36% YoY vs $4.4M), product revenue of $660K (down $80K from $740K), a current commercial pipeline of roughly $10M annualized (including $3M added in Q1 from ~20 new distributor reps and 10 new qualified opportunities), adjusted EBITDA of -$200K (vs +$960K in Q4), company gross margin of 40% (vs 47% in Q4), total cash flow of -$40K with cash flow from operations +$60K, a lab run-rate today of ~$24M annualized with capacity to $45–50M before significant CapEx, and specific near-term headwinds noted (an ~8% CMS cut driving a ~$0.5M revenue write‑down and ~ $125K gross profit impact, $250K in Q1 commercial hires, a $280K product gross‑profit timing impact, and a one‑time $360K Q4 accounting benefit); they reiterated that timing of customer go‑lives — not pipeline size — is the primary X‑factor for near‑term revenue.Precipio Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
66
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.09M | 24.05M | 15.96M | 15.20M | 9.41M | 8.85M |
| Gross Profit | 11.29M | 10.71M | 7.56M | 6.02M | 2.51M | 2.39M |
| EBITDA | 933.00K | 1.46M | -2.70M | -6.31M | -10.65M | -7.05M |
| Net Income | -922.00K | -363.00K | -4.29M | -5.85M | -12.20M | -8.55M |
Balance Sheet | ||||||
| Total Assets | 20.80M | 21.32M | 17.00M | 18.10M | 21.50M | 30.44M |
| Cash, Cash Equivalents and Short-Term Investments | 2.60M | 6.04M | 1.39M | 1.50M | 3.44M | 11.67M |
| Total Debt | 3.49M | 3.65M | 1.25M | 1.12M | 1.39M | 1.43M |
| Total Liabilities | 6.64M | 6.76M | 4.90M | 3.67M | 5.14M | 5.83M |
| Stockholders Equity | 14.17M | 14.56M | 12.09M | 14.43M | 16.30M | 24.56M |
Cash Flow | ||||||
| Free Cash Flow | 555.00K | 359.00K | 216.00K | -3.69M | -8.00M | -7.26M |
| Operating Cash Flow | 793.00K | 685.00K | 439.00K | -3.56M | -7.72M | -6.58M |
| Investing Cash Flow | -238.00K | -326.00K | -223.00K | -126.00K | -277.00K | -682.00K |
| Financing Cash Flow | 1.03M | 903.00K | -329.00K | 1.74M | -225.00K | 16.27M |
Precipio Technical Analysis
Negative
23.09
Price Trends
27.36
Negative
25.94
Negative
23.05
Negative
Market Momentum
-1.45
Positive
32.11
Neutral
6.78
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRPO, the sentiment is Negative. The current price of 23.09 is below the 20-day moving average (MA) of 26.96, below the 50-day MA of 27.36, and above the 200-day MA of 23.05, indicating a bearish trend. The MACD of -1.45 indicates Positive momentum. The RSI at 32.11 is Neutral, neither overbought nor oversold. The STOCH value of 6.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
56 Neutral | $41.72M | -44.09 | -6.73% | ― | 28.97% | 75.43% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $54.99M | 6.13 | 93.18% | ― | -24.41% | 40.02% | |
49 Neutral | $14.34M | -0.21 | -71.38% | ― | 0.96% | 91.13% | |
45 Neutral | $6.03M | -0.35 | -174.16% | ― | 33.26% | 49.65% | |
44 Neutral | $7.48M | -0.47 | -245.18% | ― | -35.75% | 47.29% | |
40 Underperform | $13.61M | -0.35 | 80.66% | ― | -28.57% | 28.35% |
* Healthcare Sector Average
PRPO
Precipio
22.80
13.36
141.53%
TRIB
Trinity Biotech
0.70
0.06
9.35%
DRIO
DarioHealth
7.75
-6.55
-45.80%
BNGO
BioNano Genomics
1.24
-2.43
-66.21%
INBS
Intelligent Bio Solutions
2.57
-11.53
-81.77%
BIAF
bioAffinity Technologies, Inc.
1.67
-6.73
-80.12%
Precipio Corporate Events
Business Operations and StrategyFinancial Disclosures
Precipio Announces Q1 2026 Shareholder Update Call
Positive
May 6, 2026
On May 6, 2026, New Haven-based specialty cancer diagnostics firm Precipio Inc. announced plans to host its Q1 2026 shareholder update call on May 18, 2026, at 5:00 p.m. ET, covering performance across its core businesses. The company will, for th...
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.