Precipio Achieves Key Q4-2024 Financial Goals: Positive Adjusted EBITDA and Positive Cash Flow (unaudited)
Precipio (NASDAQ: PRPO) has achieved two significant financial milestones in Q4-2024, demonstrating progress toward financial independence. The company reported positive Adjusted EBITDA of $0.4M and a cash flow increase of $0.3M (unaudited).
Of the cash flow improvement, $75,000 came from directors' fees paid in stock, with the remainder from operations. The company's pathology service division is now generating sufficient positive cash flow to fund ongoing R&D and investment in the high-value product business.
Management acknowledges potential quarterly fluctuations between positive and negative performance, particularly noting Q1 challenges due to insurance deductible renewals. However, with current cash reserves and growth pipeline, the company believes it's positioned to achieve sustained profitability.
Precipio (NASDAQ: PRPO) ha raggiunto due importanti traguardi finanziari nel quarto trimestre del 2024, dimostrando progressi verso l'indipendenza finanziaria. L'azienda ha riportato un EBITDA rettificato positivo di 0,4 milioni di dollari e un aumento del flusso di cassa di 0,3 milioni di dollari (non verificato).
Del miglioramento del flusso di cassa, 75.000 dollari provengono da compensi per i direttori pagati in azioni, mentre il resto deriva dalle operazioni. La divisione servizi di patologia dell'azienda sta ora generando un flusso di cassa positivo sufficiente a finanziare la ricerca e sviluppo continua e gli investimenti nel settore dei prodotti ad alto valore.
La direzione riconosce potenziali fluttuazioni trimestrali tra performance positiva e negativa, notando in particolare le sfide del primo trimestre dovute al rinnovo delle franchigie assicurative. Tuttavia, con le attuali riserve di cassa e il pipeline di crescita, l'azienda crede di essere posizionata per raggiungere una redditività sostenuta.
Precipio (NASDAQ: PRPO) ha logrado dos hitos financieros significativos en el cuarto trimestre de 2024, demostrando avances hacia la independencia financiera. La empresa reportó un EBITDA ajustado positivo de 0,4 millones de dólares y un aumento del flujo de caja de 0,3 millones de dólares (no auditado).
Del aumento del flujo de caja, 75,000 dólares provienen de honorarios de directores pagados en acciones, mientras que el resto proviene de las operaciones. La división de servicios de patología de la empresa ahora está generando un flujo de caja positivo suficiente para financiar la investigación y desarrollo en curso y la inversión en el negocio de productos de alto valor.
La dirección reconoce posibles fluctuaciones trimestrales entre el rendimiento positivo y negativo, señalando en particular los desafíos del primer trimestre debido a la renovación de deducibles de seguros. Sin embargo, con las reservas de efectivo actuales y la cartera de crecimiento, la empresa cree que está posicionada para lograr una rentabilidad sostenida.
프레시피오 (NASDAQ: PRPO)는 2024년 4분기 두 가지 중요한 재무 이정표를 달성하며 재정적 독립을 향한 진전을 보여주었습니다. 회사는 40만 달러의 긍정적인 조정 EBITDA와 30만 달러의 현금 흐름 증가를 보고했습니다 (감사되지 않음).
현금 흐름 개선 중 75,000달러는 주식으로 지급된 이사 수수료에서 발생했으며, 나머지는 운영에서 발생했습니다. 회사의 병리 서비스 부서는 현재 지속적인 연구 개발 및 고부가가치 제품 사업에 대한 투자를 지원할 수 있는 충분한 긍정적인 현금 흐름을 생성하고 있습니다.
경영진은 긍정적인 성과와 부정적인 성과 간의 분기별 변동 가능성을 인정하며, 특히 보험 공제 갱신으로 인한 1분기 도전 과제를 언급했습니다. 그러나 현재의 현금 보유와 성장 파이프라인을 감안할 때, 회사는 지속 가능한 수익성을 달성할 수 있는 위치에 있다고 믿고 있습니다.
Precipio (NASDAQ: PRPO) a atteint deux jalons financiers importants au quatrième trimestre 2024, montrant des progrès vers l'indépendance financière. L'entreprise a rapporté un EBITDA ajusté positif de 0,4 million de dollars et une augmentation du flux de trésorerie de 0,3 million de dollars (non vérifié).
De l'amélioration du flux de trésorerie, 75 000 dollars proviennent des frais des directeurs payés en actions, le reste provenant des opérations. La division des services de pathologie de l'entreprise génère désormais un flux de trésorerie positif suffisant pour financer la recherche et le développement en cours ainsi que les investissements dans l'activité des produits à forte valeur.
La direction reconnaît les fluctuations potentielles trimestrielles entre performances positives et négatives, notant en particulier les défis du premier trimestre dus au renouvellement des franchises d'assurance. Cependant, avec les réserves de liquidités actuelles et le pipeline de croissance, l'entreprise estime être bien positionnée pour atteindre une rentabilité durable.
Precipio (NASDAQ: PRPO) hat im vierten Quartal 2024 zwei bedeutende finanzielle Meilensteine erreicht und Fortschritte in Richtung finanzieller Unabhängigkeit gezeigt. Das Unternehmen berichtete von einem positiven bereinigten EBITDA von 0,4 Millionen Dollar und einem Cashflow-Anstieg von 0,3 Millionen Dollar (nicht geprüft).
Von der Verbesserung des Cashflows stammen 75.000 Dollar aus von Aktien bezahlten Direktorengehältern, der Rest kommt aus dem operativen Geschäft. Die Pathologiedienstleistungsabteilung des Unternehmens generiert nun einen ausreichenden positiven Cashflow, um die laufende Forschung und Entwicklung sowie Investitionen in das Geschäft mit hochwertigen Produkten zu finanzieren.
Das Management erkennt mögliche vierteljährliche Schwankungen zwischen positiver und negativer Leistung an, insbesondere die Herausforderungen im ersten Quartal aufgrund von Erneuerungen der Versicherungskosten. Mit den aktuellen Barreserven und der Wachstums-Pipeline glaubt das Unternehmen jedoch, dass es gut positioniert ist, um eine nachhaltige Rentabilität zu erreichen.
- Achieved positive Adjusted EBITDA of $0.4M in Q4-2024
- Generated positive cash flow of $0.3M in Q4-2024
- Pathology division now self-sustaining and funding R&D
- No longer dependent on external capital
- Expected revenue fluctuations in Q1 2025 due to insurance deductibles
- Future quarters may fluctuate between positive and negative performance
Insights
Precipio's announcement of achieving positive Adjusted EBITDA ($0.4M) and positive cash flow ($0.3M) in Q4-2024 represents a potential financial inflection point for this small-cap cancer diagnostics company. While modest in absolute terms, these metrics are significant relative to Precipio's $13.9M market capitalization and signal a fundamental shift in the company's financial trajectory.
The achievement of positive cash flow is particularly noteworthy for a specialty diagnostics company that has likely experienced extended periods of cash burn during its development phase. Of the $0.3M cash improvement, only $75,000 came from directors' fees paid in stock, meaning the majority ($225,000) derived from actual operational performance. This demonstrates that Precipio's core pathology services division is now generating sufficient revenue to not only sustain itself but also fund R&D initiatives and growth investments in its product business.
However, investors should approach this announcement with measured optimism. Several factors warrant careful consideration:
- The results are explicitly labeled as unaudited, meaning they haven't undergone rigorous third-party verification
- Management transparently acknowledges expected cyclical weakness in Q1 due to insurance deductible resets affecting pathology revenues
- The company has introduced Adjusted EBITDA as a new reporting metric, which excludes non-cash expenses but may paint a more favorable picture than GAAP metrics
The cancer diagnostics market Precipio operates in continues to grow substantially due to increasing cancer prevalence and demand for early, accurate detection. Precipio's dual-pronged strategy - operating a pathology services division while developing proprietary diagnostic technologies - creates potential for both recurring revenue and high-margin product sales.
What makes this announcement particularly meaningful is the strategic flexibility it provides management. Companies achieving financial independence can shift focus from survival to strategic growth initiatives. CEO Ilan Danieli specifically highlighted this transition, noting they can now make decisions based on "growth and value creation without the constraints imposed by cash conservation concerns."
For investors, the critical question is sustainability. While one positive quarter doesn't establish a trend, it demonstrates proof of concept for Precipio's business model. If the company can weather the acknowledged Q1 cyclicality and return to positive cash flow in subsequent quarters, we could see a fundamental revaluation of this microcap diagnostics player as it transitions from speculative investment to sustainable business.
Both metrics demonstrate the ability to achieve financial independence
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:
- Positive Adjusted EBITDA – Precipio reports (unaudited) Adjusted 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. - 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:
| ($ in millions, unaudited) | Q4-2024 | ||
| Net income/(loss) (GAAP) | |||
| Adjustments to net income/(loss): | |||
| Interest expense, net | |||
| Income taxes | |||
| Depreciation | |||
| Amortization of intangibles | $0.2 | ||
| EBITDA (non-GAAP) | |||
| Further Adjustments to EBITDA | |||
| Stock-based compensation expense | |||
| Other significant (income) expenses | $0 | ||
| Adjusted EBITDA (non-GAAP) | |||
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.
FAQ
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