Precipio, Inc. (PRPO): Business Model Canvas [Dec-2025 Updated]

You're looking for a clear, no-fluff breakdown of Precipio, Inc.'s business model as they push past breakeven in late 2025-a critical pivot point for any diagnostics company. Honestly, seeing the Q3 2025 numbers, you notice the dual engine: Pathology Services delivered $6.0M in sales, driving a positive operating cash flow of $285K, which is helping fund the R&D and growth investments in their proprietary Products division, even though that division only added $0.72M in revenue. To truly gauge their path to sustained profitability, you need to see exactly how their key partnerships, like those with Memorial Sloan Kettering, support the value proposition of their high-sensitivity ICE COLD-PCR tech against the backdrop of their current $61K operating loss. Dive into the full Canvas below to map out the structure behind this near-breakeven moment.

Precipio, Inc. (PRPO) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Precipio, Inc. relies on to get its diagnostic products and services to market, which is crucial given their Q3-2025 revenue hit $6.8M.

Joint clinical studies with major institutions like Memorial Sloan Kettering

A key partnership validation point comes from the work with Memorial Sloan Kettering. Precipio, Inc. presented findings from a joint study evaluating its BCR::ABL1 assay at the American Society of Hematology (ASH) meeting in December 2025. This collaboration is vital for clinical proof points.

Here are the specifics on that key study:

• Study evaluating Precipio's BCR::ABL1 assay involved 895 patient samples.
• The data demonstrated superior performance of the assay compared to two other leading platforms.
• The study showed clear, positive impacts on patient care and substantial improvements in laboratory workflows.

This clinical validation supports the overall business, which achieved a positive operating cash flow of $285K in Q3-2025.

Distribution agreements for HemeScreen and ICE COLD-PCR products

Securing distribution channels is how Precipio, Inc. scales its proprietary products. While the focus is on the latest numbers, the foundation of international reach includes past agreements that set the stage for 2025 performance.

For example, an agreement was signed in January 2024 with a Japanese distributor for IV-Cell and HemeScreen products, which involved a multiple year commitment. The acceptance by a premier lab in Japan, which preceded the agreement, involved extensive testing showing superior performance of the IV-Cell cytogenetics media.

You'll want to track the revenue contribution from these channels against the company's overall Q3-2025 net sales of $6,767K.

Honestly, the lack of specific 2025 distribution agreement updates is something to watch, especially as the company posted an Adjusted EBITDA of $469K in Q3-2025.

Collaborations with bio-pharma companies for biomarker testing services

Precipio, Inc.'s business model includes developing and commercializing technologies that serve the global laboratory community, which often involves collaboration with larger entities for testing services. However, specific, publicly reported financial figures or the exact number of active biomarker testing service collaborations with bio-pharma companies for the 2025 fiscal year were not detailed in the latest filings reviewed.

The company's overall financial health, with cash on hand at $2,305K at the end of Q3 2025, suggests ongoing operational activity that likely includes these service-based revenue streams.

Relationships with CLIA/COLA for laboratory developed test (LDT) compliance

For any company operating clinical laboratory tests, compliance with Clinical Laboratory Improvement Amendments (CLIA) and related bodies like COLA is non-negotiable for LDTs. In 2025, the regulatory environment tightened significantly, which directly impacts the operational viability of these partnerships and services.

Key regulatory shifts impacting labs in 2025 include:

• CMS transitioning to electronic-only communications for all CLIA-related notices, with full enforcement by March 1, 2026.
• Stricter standards for proficiency testing, including the addition of some newly regulated analytes.
• Increased focus on cybersecurity, traceability, and data interoperability in LIS (Laboratory Information Systems) configurations.

While specific Precipio, Inc. audit success rates or CLIA/COLA partnership metrics aren't public, the company's Q3-2025 results showed a net loss of only $79K, an improvement from $626K a year ago, suggesting effective management of operational overhead, which includes compliance costs.

Finance: draft 13-week cash view by Friday.

Precipio, Inc. (PRPO) - Canvas Business Model: Key Activities

You're looking at the core engine room of Precipio, Inc. (PRPO) as of late 2025. The key activities here are all about scaling up the two divisions-Pathology Services and Products-while managing the transition to profitability, which management signaled was on track by year-end 2025.

Operating the Pathology Services Division for consistent cash flow

This division is the current cash workhorse. The activity here is running high-quality lab services to generate predictable revenue and, critically, positive cash flow. You saw this activity pay off significantly in the third quarter.

The revenue growth from this activity is strong, driven by increased case volume and a better mix of tests run. Management noted that laboratory operations were well below capacity, meaning this growth contributes directly to margin expansion without needing major capital injections.

Here's the quick math on the Q3-2025 performance for this key activity:

What this estimate hides is the operational leverage; the team handled the increased volume while maintaining the same Cost of Goods Sold (COGS) and without significant fixed cost increases, which is defintely the goal of consistent operational activity.

Research and development (R&D) for new diagnostic assays and products

Precipio, Inc. is actively engaged in developing its next-generation offerings. The R&D activity is framed as a self-financed operation, meaning it's intended to be supported by the existing business momentum rather than requiring separate, large capital raises.

This activity directly feeds the Products division pipeline. Key outputs from this ongoing R&D effort include:

• Launching new diagnostic panels.
• Developing products that leverage the Pathology Services division's existing infrastructure.

Onboarding and training large new customers for the Products division

This activity focuses on integrating new labs onto the HemeScreen platform. The process is noted as lengthy, but the conversion rate once the sales team engages is described as very high, suggesting the training and value proposition are strong.

Recent customer acquisition activity includes:

• In Q2-2025, the return of two customers to full operational volume.
• In Q2-2025, the onboarding of one new customer.
• In Q1-2025, the onboarding of one new customer and the launch of two new panels.

The Q3-2025 Product Division revenue of $0.72M was supplemented by existing customers ordering new panels and applications, showing successful post-onboarding expansion.

Maintaining regulatory compliance for diagnostic products and services

This is a non-negotiable activity for any diagnostics company. Success here unlocks revenue streams that were previously inaccessible.

A major milestone achieved in Q1-2025 supporting this activity was receiving MolDx approval for NGS testing, which specifically enables Medicare billing for patients.

Direct sales and marketing of proprietary diagnostic panels (HemeScreen)

This involves the direct effort to move HemeScreen from the pipeline into revenue-generating customer sites. While specific late-2025 sales figures for HemeScreen aren't explicitly broken out from the total Product Division revenue, the division's performance reflects this activity's success.

The Product Division saw its revenue climb to $0.72M in Q3-2025, a 16% increase from $0.62M in Q2-2025. Still, the gross margin for this division compressed to 30% in Q3-2025, down from 44% in Q2-2025, which management attributed to past strategic investments in capacity and equipment.

Finance: draft 13-week cash view by Friday.

Precipio, Inc. (PRPO) - Canvas Business Model: Key Resources

You're looking at the core assets Precipio, Inc. (PRPO) relies on to execute its diagnostic strategy. These aren't just ideas; they are tangible technologies and the financial cushion to keep them running. It's about what they own and what they have in the bank to fund the next phase of growth.

The foundation rests heavily on their proprietary science. For instance, the ICE COLD-PCR (ICP) technology, licensed exclusively from Harvard's Dana-Farber Institute, is a major asset. This technology offers at least a 500-fold improvement in sensitivity compared to standard sequencing methods. That level of enrichment allows for mutation detection as low as 0.1% on plasma (blood) samples, which is key for liquid biopsy applications. To be fair, the cost advantage is also significant; ICP reagents are typically priced at about 50% of competing technologies.

Beyond ICP, the IV-Cell technology represents another key resource, specifically as a multi-cell lineage culturing media designed to simplify workflow and maintain clinical accuracy. These technologies are supported by the company's operational footprint, which includes a CLIA-certified, high-complexity clinical laboratory infrastructure capable of delivering superior hematopathology diagnostic services.

The human capital is specialized, focusing on harnessing expertise to eradicate misdiagnosis. This includes a specialized team of pathologists and molecular scientists driving the development and execution of their proprietary assays.

Operational stability, as of late 2025, is directly supported by the balance sheet. As of the end of Q3 2025, Precipio, Inc. reported a Cash balance of $2.31M. This cash position is critical, especially following the termination of their At-The-Market (ATM) program, signaling a shift toward self-sustainability. Here's the quick math on recent performance that underpins that cash position:

Finally, the company's legal protection over its innovations is a core resource. This includes Intellectual property protecting HemeScreen and other assays. Precipio, Inc. filed a patent for its proprietary HemeScreen panel, which evaluates four key genes for mutations in Myelodysplastic Syndrome (MDS) and Myeloproliferative Disorders (MPD). When the patent was filed, the estimated US market potential for HemeScreen alone was approximately $100M per year. The company also develops molecular kits for other blood cancers like MPN, CML, CLL, AML, and MDS.

You should check the latest 10-Q filing to see if the going-concern status disclosure has been updated following the positive Q3 results, so Finance: draft 13-week cash view by Friday.

Precipio, Inc. (PRPO) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers choose Precipio, Inc. (PRPO) over the established players in the cancer diagnostics space. It boils down to speed, precision, and cost efficiency, which is showing up in their financials as they hit major milestones in 2025.

Higher accuracy in cancer diagnostics compared to traditional methods.

The value here is rooted in the technology that enhances detection limits. For instance, the proprietary ICE COLD-PCR (ICP) technology delivers a 100-500 fold increase in mutation detection sensitivity compared to standard methodologies you might see elsewhere. This ultra-high sensitivity allows for a Limit of Detection (LOD) as low as 0.1% on plasma (blood) samples. This capability was demonstrated when the Department of Defense hospital found that Precipio's ICP BRAF exon 15 enrichment assay identified V600E mutations that the competing Droplet Digital PCR (ddPCR) platform did not detect. This level of precision directly addresses the problem of misdiagnosis that the company aims to eradicate.

Improved laboratory workflow and reduced healthcare expenses for customers.

The workflow improvements translate directly into financial benefits for labs. Consider the HemeScreen assay, which tests for mutations in the CALR, JAK2, JAK2 exon 12, and MPL genes. The current cost of test reagents for the four genes tested separately in a CLIA laboratory is approximately $300, reimbursed at around $600. By contrast, performing the HemeScreen assay costs around $100-less than 33% of the combined cost. This represents a cost saving of approximately $200 per sample. For the US clinical testing sector, this technology offers the potential for as much as $30 million in annual cost savings. Furthermore, since 80% of initial gene test results are typically negative, HemeScreen delivers a positive/negative answer within hours, versus the industry average turnaround time of 7 to 10 days for separate testing, drastically improving lab throughput.

HemeScreen: Robust, cost-effective genetic diagnostic panels for blood cancer.

HemeScreen is designed to capture a focused, underserved segment of the market. Precipio estimates the annual United States market opportunity for this specific area of testing to be approximately $100 million. The economic value proposition is clear: a test that costs around $100 to run versus $300 in reagents for the older method. The speed is also a key factor; negative results are reported within approximately 4-6 hours, enabling a same-day total turnaround time for the majority of cases. This efficiency supports the overall company growth, as Product Division revenues increased 16% quarter-over-quarter from $0.62 million in Q2-2025 to $0.72 million in Q3-2025.

Pathology Services: Superior quality and customer-centric service versus mega-labs.

The Pathology Services division is showing strong operational leverage. Revenue for this division hit $6.0 million in Q3-2025, marking a 20% increase from $5.0 million in Q2-2025. This growth, driven by new customer acquisition and increased volume from existing ones, has directly improved margins. Gross margins for Pathology Services increased year-over-year from 37% to 43% by Q2-2025, and the company anticipates continued margin increase as the business exploits economies of scale. The overall company gross margin climbed from 39% YoY in Q2-2025 to 44% in Q3-2025, showing that this service quality is contributing to financial health. The company is confident this superior quality will be a key factor in growing this business against the mega-labs.

ICE COLD-PCR: Enhanced sensitivity for mutation detection in oncology.

The technology offers a significant competitive edge in liquid biopsy analysis. The ICP technology is priced at a fraction of the cost of competing assays, often costing only 50% of what competing technologies like ddPCR cost, while achieving the same or better sensitivity (LOD of 0.1%). This cost-effectiveness makes comprehensive genomic analyses using a blood sample economically viable for repeat testing. Furthermore, the recent MolDx approval for NGS testing is expected to generate approximately $250,000 in 100% margin revenue per quarter, or $1 million annually, by enabling Medicare billing for tests the company was already performing.

The overall financial results for Q3-2025 reflect this value delivery, with revenues reaching $6.8 million (a 30% increase YoY) and the company achieving a positive Adjusted EBITDA of $469K, swinging from a negative position in Q2-2025. Finance: draft Q4 2025 cash flow projection by next Tuesday.

Precipio, Inc. (PRPO) - Canvas Business Model: Customer Relationships

You're looking at how Precipio, Inc. (PRPO) manages its interactions with customers, which is critical given the specialized nature of cancer diagnostics. The relationship strategy clearly splits between the high-volume Pathology Services and the product-focused business.

Dedicated sales and support for large, key product customers during onboarding

Onboarding for the Products Division requires focused attention, evidenced by the mention of 'temporary delays in customer onboarding and operational ramp-up on the products side' during the first quarter of 2025. The relationship strength is shown when major accounts return to full capacity; for example, the Products Division revenue growth in Q2 2025 was driven by the 'return of two major customers to full operational capacity.'

The Product Division's customer base activity in the first three quarters of 2025 is summarized below:

High-touch, customer-centric service model for Pathology Services clients

The Pathology Services division relies on a service model that drives consistent volume and margin expansion. This suggests a high-touch approach is embedded in their service delivery to maintain quality and drive utilization.

• Pathology Services revenue grew 54% year-over-year in Q1 2025.
• Test volume in Pathology Services increased by 46% year-over-year in Q1 2025.
• Pathology Services revenue reached $5.0M in Q2 2025, a 17% quarter-over-quarter increase.
• Pathology Services revenue reached $6.0M in Q3 2025, a 20% quarter-over-quarter increase.
• Pathology Services gross margin improved from 37% (Q2 2024 YoY comparison) to 43% in Q2 2025.
• Pathology Services gross margin rose to 46% in Q3 2025.
• 11 ordering physicians began using the service for the first time in Q1 2025.

Stable, long-term relationships due to product integration into lab workflows

The consistent sequential growth in the Pathology Services revenue stream points toward deep integration into the ordering physicians' and labs' established workflows. This recurring business is the foundation of stability.

Here's the quick math on the recurring service revenue growth:

If onboarding takes 14+ days, churn risk rises, but the consistent QoQ growth suggests the integration is generally successful for the majority of clients.

Direct engagement with investors via quarterly update calls and conferences

Precipio, Inc. maintains direct engagement with its investor base through scheduled quarterly calls, which is a standard practice for transparent communication.

• Q1 2025 Shareholder Update Call was held on May 15, 2025.
• Q2 2025 Shareholder Update Call was held on August 14, 2025.
• Q3 2025 Shareholder Update Call was held on November 17, 2025.

Investor activity in Q1 2025 showed some institutional movement: 4 institutional investors added shares, while 4 decreased their positions in that quarter.

Finance: draft 13-week cash view by Friday.

Precipio, Inc. (PRPO) - Canvas Business Model: Channels

You're looking at how Precipio, Inc. gets its diagnostic products and services into the hands of oncologists and labs as of late 2025. The channels are clearly split between their service offering and their product sales, with the service side being the overwhelming revenue driver.

Direct sales force for Pathology Services and Products division. The direct sales efforts are clearly tied to the Pathology Services Division, which brought in $6.0 million in revenue for the third quarter of 2025, representing a 20% increase quarter-over-quarter (QoQ). The Product Division, which also relies on sales engagement, had sales of $0.72 million in Q3 2025. The company noted that growth in Pathology Services was achieved through the efforts of their existing sales team.

Clinical laboratory network for diagnostic service delivery. The core of the service channel is Precipio, Inc.'s own established laboratory infrastructure. The company operates Clinical Laboratory Improvement Amendments (CLIA) laboratories in both New Haven, Connecticut, and Omaha, Nebraska, to deliver essential blood cancer diagnostics nationwide. The test volume for the Pathology Services division grew by 46% year-over-year (YoY) in Q1 2025. Furthermore, 11 ordering physicians began using the Pathology Services for the first time in Q1 2025.

The revenue contribution across the two main divisions for Q3 2025 shows the channel weighting:

Distributor network for product sales to international or smaller labs. The Product Division sales are explicitly driven by progress with the distributor network. Management stated in the Q3 2025 earnings call that the business model with their distributors is 'starting to work'. This channel contributed $0.72 million in Q3 2025 revenue. The Product Division gross margin was reported at 30% in Q3 2025, down from 44% in Q2 2025.

Scientific presentations (e.g., ASH meeting) for technology validation. External validation through scientific forums is a key channel for building credibility and driving future adoption. Precipio, Inc. announced plans to showcase its BCR::ABL1 panel at the 2025 American Society of Hematology (ASH) Meeting. This is part of their strategy to commercialize technologies developed in their laboratory.

Online presence and SEC filings for investor communication. Investor relations and transparency are maintained through required public disclosures. The company filed its 10-Q report for Q3 2025 on November 14, 2025. The stock ticker is PRPO, and as of November 11, 2025, the stock price was $20.19, with a market capitalization of $32.7 million.

Other channel-related operational facts include:

• The company is focused on eradicating misdiagnosis by delivering quality diagnostic information to physicians and patients worldwide.
• The Product Division offers HemeScreen and IV-Cell technologies to the oncology diagnostic laboratory market.
• The company aims for total company gross margin to exceed the 50% mark by mid-2026.

Finance: draft 13-week cash view by Friday.

Precipio, Inc. (PRPO) - Canvas Business Model: Customer Segments

You're looking at the key groups Precipio, Inc. (PRPO) serves as of late 2025, based on the latest reported operational data. We see clear revenue streams tied to different customer types, especially following the strong Q3-2025 performance.

Clinical laboratories and hospital systems adopting proprietary assays.

This segment drives both the Product Division sales and a significant portion of the Pathology Services revenue. The adoption of proprietary technology is evidenced by clinical validation efforts.

• BCR::ABL1 assay evaluated across 895 patient samples in a joint study presented at the 2025 ASH meeting.
• Product Division revenue grew sequentially by 16% in Q3-2025, reaching $0.7 million.
• Product Division gross margin stood at 30% in Q3-2025.

Bio-pharma companies requiring biomarker testing and clinical project services.

This group contributes to the Product Division through specific project work, though it appears less dominant than the core lab services.

• Q1-2025 included a special project fee of $145,000 from a pharmaceutical company.

Referring physicians and clinics utilizing the Pathology Services Division.

This is the largest revenue contributor, showing strong growth and margin expansion due to increased case volumes and a favorable mix of tests.

The division's growth in Q3-2025 was supported by initiating services at several new accounts from a growing prospective customer pipeline.

Research institutions and academic medical centers for technology adoption.

Engagement with leading academic centers validates the technology for broader market acceptance, often preceding wider adoption by clinical labs.

• Precipio, Inc. (PRPO) presented data from a joint study with Memorial Sloan Kettering at the 2025 ASH meeting.

Overall, Precipio, Inc. (PRPO) reported total revenues of $6.8 million in Q3-2025, a 30% year-over-year increase.

Precipio, Inc. (PRPO) - Canvas Business Model: Cost Structure

You're looking at the cost side of Precipio, Inc. (PRPO) as of late 2025, specifically focusing on the third quarter results which give us a clear snapshot of their spending priorities.

Cost of Goods Sold (COGS) for the Pathology Services division shows operational leverage. Despite revenue increasing 20% quarter-over-quarter to $6.0 million in Q3-2025, the team managed to maintain stable COGS relative to volume growth, leading to a gross margin of 46% for that segment. This stability in COGS while scaling volume is key to margin expansion there.

The Products division presents a different cost picture, directly tied to future scaling. Gross margins here were 30% in Q3-2025, a notable drop from 44% in Q2-2025. This compression is explicitly tied to 'prepare for growth' investments, which included expanding lab space and hiring a technical specialist, as management noted. Product Division revenues were $0.72 million in the quarter.

Here's how the cost components break down based on Q3-2025 segment performance:

The overall operating performance reflects these investments. While Adjusted EBITDA was positive at $469K for Q3-2025, the GAAP net loss narrowed significantly to $0.1 million for the same period. The difference between positive Adjusted EBITDA and the GAAP net loss highlights non-cash items and operating expenses not fully captured by the EBITDA metric.

You'll see the impact of operating expenses in the bottom line, even with strong gross margin performance overall (Total Company gross margin was 44%). The structure of costs outside of COGS-which would include Sales, General, and Administrative (SG&A) and Research & Development (R&D)-drives the final operating result. While specific SG&A and R&D dollar amounts aren't itemized here, the resulting GAAP net loss of $0.1 million shows the current expense load relative to revenue.

Key cost drivers and financial outcomes for Q3-2025 include:

• Pathology Services COGS remained stable despite 20% sequential volume growth.
• Products Division margin fell to 30% due to strategic 'prepare for growth' spending.
• Total Q3-2025 revenue was $6.8 million.
• Adjusted EBITDA reached $469K.
• GAAP net loss for the quarter was $0.1 million.

Finance: draft 13-week cash view by Friday.

Precipio, Inc. (PRPO) - Canvas Business Model: Revenue Streams

You're looking at how Precipio, Inc. (PRPO) actually brings in the money, which is key for valuation. Honestly, the revenue streams are split between core lab services and product sales, plus some project work.

The Pathology Services segment is clearly the main driver right now. That part of the business hit $6.0M in revenue for the third quarter of 2025. That's a solid base to build on, showing their testing services are resonating with the market.

The Product Division contributes through sales of their key offerings: HemeScreen, IV-Cell, and ICP. For Q3-2025, this division brought in $0.72M. It's important to track this segment's growth as it represents scalable product revenue, a different profile than service revenue. Defintely keep an eye on that ratio.

Also feeding the top line are fees generated from clinical project services and biomarker testing that Precipio, Inc. (PRPO) performs specifically for bio-pharma clients. While we don't have a standalone Q3 number for this specific stream here, it supports the overall service revenue base.

When you put it all together for the quarter ending in Q3 2025, the total net sales reached $6.8 million. That top line performance translated into positive profitability metrics, which is what investors really want to see.

Here's a quick look at how the Q3 2025 financial performance stacked up:

The revenue generation can be broken down into these distinct categories:

• Pathology Services testing revenue
• Product sales from HemeScreen, IV-Cell, and ICP
• Fees from bio-pharma clinical projects

The fact that Precipio, Inc. (PRPO) achieved a positive Adjusted EBITDA of $469K along with positive operating cash flow of $285K in Q3 2025 shows that the revenue streams are not just growing, but they are profitable and generating cash internally. That's the real story here.

Finance: draft 13-week cash view by Friday.