0001193125-26-211896
SEC filingRevenue declined 25% to $15.5M driven by lower pharma and enterprise sales, partially offset by 365% clinical growth from new Medicare coverage.
In the first quarter of 2026, Personalis reported total revenue of $15.5 million, a 25% decrease from $20.6 million in the same period last year. The decline was driven by lower revenue from pharma testing services (-21%, to $10.7M) due to reduced clinical trial samples from Moderna and pricing, enterprise sales (-84%, to $0.4M) as the Natera project wound down, and population sequencing (-41%, to $2.5M) from planned lower VA MVP volumes. Partially offsetting these decreases was a 365% surge in clinical diagnostic revenue to $1.4 million, fueled by Medicare reimbursement coverage for NeXT Personal Dx in breast cancer (November 2025) and lung cancer (February 2026).
Cost of revenue increased 13% to $15.2 million, resulting in a gross loss of approximately $0.3 million (negative margin) compared to a gross profit of $7.2 million in the prior year. The gross margin deterioration reflects higher clinical diagnostic test costs as the company invests in market share ahead of full reimbursement. Operating expenses rose sharply: R&D increased 15% to $14.5 million on higher headcount and IT costs, while SG&A jumped 46% to $17.9 million, primarily due to a $2.4 million increase in Tempus sales and marketing expenses and higher personnel costs. Consequently, operating loss widened to $32.2 million from $17.7 million, and net loss grew to $30.0 million ($0.29 per share) from $15.8 million ($0.18 per share).
Pharma testing services remain the largest segment but declined 21% due to lower Moderna activity and pricing pressure. Enterprise sales effectively ended with Natera, falling 84% and expected to be negligible going forward. Population sequencing revenue dropped 41% as the company deliberately modulated VA MVP sample processing. In contrast, clinical diagnostic revenue soared 365% as the newly covered NeXT Personal Dx test gained traction; this segment is poised to become a key growth driver as Medicare coverage expands. Other revenue grew from a very small base.
The shift in revenue mix toward clinical diagnostics (from 1.5% to 9.2% of total) is strategically important but currently weighs on gross margins due to test costs exceeding reimbursement rates. Management expects this to improve as volumes scale and additional payor coverage is secured.
Management provided capital expenditure guidance of $8-$10 million for 2026 and $10-$12 million annually for 2027 and 2028 to support NeXT Personal Dx capacity expansion. The company believes existing cash and short-term investments of $233.2 million are sufficient to fund operations for at least the next 12 months. Key priorities include growing clinical test volumes under new Medicare coverage, pursuing further reimbursement for additional indications, and scaling the Tempus partnership. The winding down of Natera and variable pharma revenue introduce near-term revenue uncertainty, but the clinical diagnostic pivot offers a clearer path to growth and eventual margin improvement.
As of March 31, 2026, Personalis held $73.6M in cash and cash equivalents and $159.6M in short-term investments, totaling $233.2M in highly liquid assets (down from $239.9M at December 31, 2025). Total assets were $325.4M. Total stockholders’ equity was $254.8M. The company had $0.9M in total debt outstanding (current portion of loans), down from $2.1M at year-end. Inventory stood at $6.9M, and accounts receivable net was $13.0M.
Total undiscounted operating lease commitments were $60.6M as of March 31, 2026. The largest lease is for the Fremont, CA headquarters/lab facility (13.5-year term, expiring March 2036). Of the total, $12.6M is due within one year, $15.9M in years 1-3, and $31.9M beyond three years. No other material purchase commitments or supply agreements were disclosed. Contract liabilities (deferred revenue) totaled $4.2M, primarily related to amounts collected in advance of services.
No share repurchases or dividends were reported. The company issued and sold 2.1M shares under its ATM facility for net proceeds of $21.0M in Q1 2026. Capital expenditures were $3.2M (20.7% of revenue), primarily for lab equipment and leasehold improvements. Debt repayments totaled $1.3M, including $1.2M for a software license loan and $0.1M for finance leases. The company’s financing activities provided $17.8M net.
Personalis operates as a single reportable segment: advanced cancer genomic testing services. Revenue is disaggregated by customer type: pharma testing services $10.7M (down 21% YoY), enterprise sales $0.4M (down 84%), population sequencing $2.5M (down 41%), clinical diagnostic $1.4M (up 365%), and other $0.4M. Geographically, 94% of revenue came from the United States and 6% from other regions. The CODM (CEO) reviews consolidated operating results and this disaggregated revenue information to allocate resources.
Net loss increased from $15.8M to $30.0M, yet operating cash flow used only $22.5M (vs $18.0M), indicating some non-cash benefits. Key adjustments: stock-based compensation ($2.6M), depreciation/amortization ($2.4M), and a $3.2M decrease in accounts receivable. However, inventory and other deferred costs rose $0.8M, and accounts payable fell $0.8M. Working capital swung negatively overall. Capex of $3.2M modestly increased. Investing activities consumed $46.0M, mainly from net purchases of debt securities ($43.0M after maturities). Financing provided $17.8M from ATM sales and equity plan issuances, partly offset by loan repayments and a finance lease buyout. No dividends or share repurchases. The company remains cash-flow negative, funding operations and investments through equity and securities sales.