0001193125-26-076615
SEC filingRevenue decreased 18% to $69.6M in 2025 due to the winding down of the Natera project, partially offset by population sequencing growth.
Personalis, Inc. develops, markets, and sells advanced cancer genomic testing services. The company's testing services are used by physicians for minimal residual disease detection, therapy monitoring, and therapy selection, and by pharmaceutical companies for translational research and clinical trials. Personalis also provides whole exome and whole genome sequencing services for diagnostic companies and population sequencing initiatives. The company operates a single laboratory in Fremont, California, which is CLIA-certified and CAP-accredited.
Personalis manages its business as one operating segment: providing advanced cancer genomic testing services for precision oncology applications, personalized testing services, and other tests. The company's chief operating decision maker is the CEO, who reviews consolidated operating results to allocate resources and assess performance. No separate segment financial information is disclosed.
Personalis offers several testing services:
Personalis sells through a small direct sales force organized by geography. In November 2023, it entered a co-commercialization agreement with Tempus for NeXT Personal Dx in the clinical diagnostics market, later expanded to include biopharma customers and colorectal cancer. For the year ended December 31, 2025, revenue geographic mix was: United States 90%, Europe (including U.K.) 9%, and rest of world 1%. Key customers include Moderna (22% of revenue), VA MVP (17%), and Natera (8%). The top five customers accounted for 62% of revenue in 2025.
Personalis faces competition from commercial and academic organizations. Named competitors include Adela, Caris Life Sciences, DELFI Diagnostics, Exact Sciences (to be acquired by Abbott), Foresight (acquired by Natera), Foundation Medicine, GRAIL, Guardant Health, Haystack (acquired by Quest), LabCorp, MedGenome, Myriad Genetics, Natera, NeoGenomics, Predicine, SAGA Diagnostics, and Veracyte. Additionally, Illumina and Thermo Fisher offer sequencing platforms and clinical oncology kits. Personalis believes it competes favorably due to its differentiated technology, including ultrasensitive MRD detection, comprehensive data, high-quality results, and exceptional service.
Personalis's strategic priorities include: focusing on three key indications (breast cancer, lung cancer, and immunotherapy monitoring) where early recurrence detection is difficult; expanding into additional indications like colorectal cancer and cervical; building clinical evidence through collaborations with leading institutions such as Cancer Research UK, Dana-Farber, and MD Anderson; obtaining Medicare reimbursement (received for breast cancer in November 2025 and NSCLC in February 2026); and leveraging partnerships with Tempus and pharmaceutical companies to drive adoption.
As of January 31, 2026, Personalis had 260 employees, 259 of whom were full-time. The breakdown: 91 in research and development, 73 in laboratory operations, 52 in commercial operations, and 43 in general and administrative functions. 257 employees were located in the United States and 2 in Europe. Over 40% hold a Ph.D. or advanced science/medical degree. None are unionized, and employee relations are considered good.
For FY2025, Personalis reported total revenue of $69.6 million, an 18% decline from $84.6 million in FY2024. The drop was primarily driven by a 77% plunge in Enterprise sales to $5.9 million (from $25.4 million), reflecting the winding down of the Natera project after minimum volume commitments expired in Q2 2025. This was partially offset by a 58% increase in Population sequencing revenue (to $11.8 million) from the VA MVP contract, and a 166% surge in Clinical diagnostic revenue (to $2.0 million) on higher test volumes and newly secured Medicare coverage.
Despite lower revenue, net loss remained virtually flat at $81.3 million, as cost of revenue fell only 7% (to $53.9 million) and SG&A rose 16% (to $53.6 million) to support commercial expansion. Gross margin contracted sharply to 22.6% from 31.7% in the prior year, as higher-margin Enterprise revenue was replaced by lower-margin Population sequencing and Clinical diagnostic tests sold at a loss while seeking reimbursement. Operating margin deteriorated to -126.4% from -80.7%, reflecting negative operating leverage. EPS improved to ($0.91) from ($1.37) due to a higher share count (89.2 million vs. 59.3 million weighted-average shares).
Pharma testing services (70% of total revenue) fell 4% to $48.7 million, mainly due to lower sample volumes from Moderna after the conclusion of its Phase 3 melanoma trial enrollment. Management expects continued variability tied to pharmaceutical customer enrollment schedules.
Enterprise sales (8% of revenue) saw the steepest decline, dropping from $25.4 million to $5.9 million. The company now has no material commercial relationship with Natera and does not anticipate future revenue from this source.
Population sequencing (17% of revenue) grew to $11.8 million, driven by higher sample throughput under the VA MVP contract. The company received a $13.5 million task order in August 2025, expected to be fulfilled in the first three quarters of 2026.
Clinical diagnostic (3% of revenue) posted the strongest relative growth, reaching $2.0 million, supported by Medicare coverage determinations for NeXT Dx (Jan 2024) and NeXT Personal Dx for breast cancer (Nov 2025, effective Oct 2025). Test volume soared ~400% to 16,233 tests. A February 2026 Medicare coverage for NSCLC (effective Jan 2026) is expected to further accelerate clinical revenue.
Other revenue ($1.3 million) increased due to patent royalty payments.
Management’s outlook focuses on scaling the clinical diagnostic business following key Medicare coverage wins for breast and lung cancer MRD surveillance. The company ended 2025 with $240 million in cash, providing at least 12 months of runway. Capital expenditures are expected to rise to $8-10 million in 2026 (from ~$3.1 million in 2025) to expand NeXT Personal Dx capacity, with further increases to $10-12 million annually in 2027-2028. The Tempus partnership was expanded in July 2025 to include colorectal cancer marketing rights through November 2029, extending the commercial reach. Management anticipates higher SG&A and R&D spending to support clinical market share gains, while long-term gross margins are expected to improve as revenue scales and reimbursement rates are established.
As of December 31, 2025, Personalis held $124.2 million in cash and cash equivalents and $115.7 million in short-term investments (primarily U.S. government securities, commercial paper, and agency bonds), for a total liquidity of $239.9 million. Total assets were $334.2 million, up from $270.3 million a year earlier, driven largely by equity issuances. Total debt was minimal at $2.1 million (equipment and software loans), with $1.2 million classified as current. Shareholders' equity stood at $261.2 million, compared to $203.0 million at year-end 2024. Inventory and other deferred costs were $6.1 million, essentially flat year-over-year.
The company's primary contractual commitments are operating leases, with total future minimum lease payments of $62.4 million as of December 31, 2025. These include the Fremont, California headquarters/lab lease (expiring March 2036) and a Menlo Park lease (expiring November 2027). Annual lease payments are $7.2 million in 2026, $7.2 million in 2027, $5.2 million in 2028, and $5.4 million in 2029, with $31.9 million due in 2031 and thereafter. The weighted-average remaining lease term is 9.4 years, and the weighted-average discount rate is 10.6%. Additionally, the company has a finance lease for lab equipment with total liabilities of $3.2 million, of which $2.6 million is current. No other material purchase commitments (e.g., supply agreements, capacity reservations) were disclosed.
Personalis did not repurchase any shares or pay dividends during the periods presented. The company's capital allocation focused on investing in growth: capital expenditures were $4.5 million in 2025 (down from $1.6 million in 2024), primarily for laboratory and computer equipment. Debt activity was modest: the company issued $2.6 million in new equipment/software loans (net of imputed discount) and repaid $2.0 million, resulting in a net debt increase of $0.3 million. The company raised $126.8 million net from at-the-market equity offerings during 2025, which was the primary source of cash for operations and investment.
The company operates as a single reportable segment: advanced cancer genomic testing services. The CODM (CEO) reviews consolidated financials. Revenue is disaggregated by customer type: pharma testing services ($48.7M, 70% of total), population sequencing ($11.8M, 17%), enterprise sales ($5.9M, 8%), clinical diagnostic ($2.0M, 3%), and other ($1.3M, 2%). Geographically, 90% of revenue came from the United States and 10% from other regions. The company's largest customers by revenue were Moderna (22%) and VA MVP (17%).
Personalis faces acute revenue concentration risk. Moderna (22% of 2025 revenue) and the VA MVP (17%) are the two largest customers, and the top five customers account for 62% of total revenue. The loss of the Natera relationship—revenue dropping from 30% in 2024 to 8% in 2025—demonstrates the fragility of customer dependencies. The VA MVP contract value has declined sharply from $30.9M in 2020 to $13.5M in 2025, and future renewals are subject to federal budget cuts and shifting priorities. The company has a history of losses ($81.3M net loss in both 2025 and 2024) and an accumulated deficit of $631.3M, with no near-term path to profitability.
New disclosures on tariffs and trade policy are a material addition. The company relies on Illumina as sole supplier for sequencers and reagents, and many components are sourced internationally. Tariffs cannot be passed through to customers due to fixed reimbursement contracts, squeezing margins. The single laboratory facility in Fremont, California, is vulnerable to natural disasters and operational disruptions (e.g., electrical bus duct failure in 2023).
The December 2025 email account compromise, with potential PHI exposure, is a new material risk. The company has notified regulators and affected patients, but remediation costs and reputational harm are ongoing. Broader data privacy compliance burdens under HIPAA, CCPA, GDPR, and emerging state laws (e.g., Washington My Health My Data Act) add operational complexity and liability exposure.
FDA enforcement discretion for LDTs remains a multi-year risk; if revoked, tests would require premarket clearance or approval, causing delays and costs. Competitors with greater resources (Exact Sciences/Abbott, Natera, Guardant, GRAIL) could undercut pricing or develop superior technologies. Reimbursement progress for NeXT Personal Dx (Medicare coverage for breast and lung cancer) is a positive but limited to specific indications, and other payor coverage is uncertain.
Partner-centric strategy with Tempus, Myriad, Moderna, and Merck introduces collaboration risks, including potential termination or development of competing tests. The company must continuously innovate to keep pace with rapid advances in cancer diagnostics and personalized therapies. Failure to scale infrastructure or accurately forecast demand could impair service quality and customer relationships.
For the fiscal year ended December 31, 2025, Personalis, Inc. reported a net loss of $81.3 million, while cash used in operating activities was $66.4 million. The positive variance between net loss and operating cash flow is primarily due to non-cash charges such as stock-based compensation ($27.8 million) and depreciation/amortization ($8.0 million), partially offset by a net working capital outflow of $14.5 million (driven by increases in accounts receivable and inventory).
Capital expenditures (capex) were $4.5 million, representing a modest 6.8% of operating cash outflow, indicating low capital intensity. Free cash flow (operating cash flow minus capex) was negative $70.9 million, reflecting the company's ongoing investment in growth and operations.
Financing activities provided $103.5 million, primarily from proceeds of common stock sales under the Merck Investment Agreement, which funded the cash burn and increased the cash balance. No share repurchases or dividends were paid.
Anomalies: The significant working capital swing (especially accounts receivable increasing by $8.1 million and accounts payable by $6.6 million) reflects timing of collections and payments. The company also had a $1.5 million decrease in contract liabilities, which reduced operating cash flow.