Latest news with #Precipio
Yahoo
08-07-2025
- Business
- Yahoo
Arena Group Holdings vs. Precipio: 2 New Top 100 Stocks to Buy. Precipio's the Buy.
There were 10 new additions to Barchart's Top 100 Stocks to Buy on Monday. Of the 10, Arena Group Holdings (AREN) and Precipio (PRPO) stand out among the bunch of high-flying stocks. Arena Group entered the list in the 89th position, while Precipio jumped into the fray in the 31st spot. This Analyst Just Raised His Broadcom Stock Price Target by 70%. Should You Buy AVGO Now? Why Alibaba Stock Looks Like a Screaming Buy After Falling 27% From Its 2025 Highs 2 ETFs Offering Juicy Dividend Yields of 20% or Higher Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. The former owns media brands such as TheStreet, Men's Journal, Athlon Sports, and several others. It also helps other media brands grow their businesses by utilizing its digital media platform. The latter's information platform helps physicians better diagnose what's wrong with their patients, thereby reducing misdiagnoses. Both are on Barchart's top 100 stocks to buy list because of their momentum over the past year. While both utilize information and content to generate revenues, Precipio is the wiser long-term buy. Here's why I feel this way. Anyone who works in the publishing industry knows that it is undergoing a lengthy transformation, one that has seen print-based media companies disappear by the thousands over the past decade as digital media has gained control. Arena Group was formerly known as TheMaven until it rebranded in September 2021. 'The Arena Group saw an opportunity to sharpen its focus around building high-performing flagship brands that could cross-pollinate value for publishers within each vertical's ecosystem. The results have been strong over the last year,' stated its Sept. 20, 2021, press release. 'Digital revenue has grown approximately 91% year over year in Q2. Recurring subscriptions across all of The Arena Group's properties now account for 55% of overall revenue.' That all sounds very promising. Where is it today? In mid-May, the company reported its third consecutive profitable quarter, generating $4 million in net income. That was up from a net loss of $103 million in Q1 2024. Most of the loss was due to the discontinuation of its Sports Illustrated media business in March 2024, which it had launched in 2019 under a licensing agreement with Authentic Brands. In 2023, the SI business would have accounted for 41% of Arena Group's revenue and 33% of its losses. In 2024, the discontinued unit would have accounted for 15% of its revenue and 92% of its losses. By Q1 2025, the discontinued operations had largely been eliminated from the income statement, resulting in a profit of $23,000. However, the discontinued unit's current liabilities related to subscriptions and the damages sought by Authentic Brands in court added up to $96 million, or 39% of its total liabilities. Thankfully for shareholders, the company announced a settlement with Authentic Brands on April 29. Although the financial terms were not released, the agreement resulted in the removal of $94 million in accrued liabilities from its balance sheet. Not surprisingly, its shares are up 65% since the announcement. I don't usually opt for tiny micro-cap stocks over small caps. However, Precipio fits the bill because it operates in an industry that isn't shrinking, unlike the media industry. Precipio was founded in 2011 to create innovative technologies to reduce the misdiagnosis of cancer. It has since moved into other areas of healthcare. The company went public in June 2017 by acquiring Transgenomic Inc., an Omaha-based diagnostic company, through a reverse merger. As part of the merger, Transgenomic shareholders received 160.6 million shares of New Precipio, giving them a 48% stake in the merged entity, with Precipio shareholders owning a 52% majority. At the time of the merger, Transgenomic traded over-the-counter after being delisted from Nasdaq in February 2017. Since then, it's been locked in a battle to maintain its listing. It undertook a 1-for-20 reverse split on Sept. 21, 2023, to remain in compliance with Nasdaq listing requirements. Its stock is up 200% in the 21 months since. Why do I like it? Let me be clear: Precipio is only for aggressive investors used to volatility and risk. I'm not here to suggest it is the perfect stock to own for the next decade. Stocks jumping 69 spots in the top 100 stocks to buy are often fueled by speculation alone. Fundamentals be damned. In the trailing 12 months ended March 31, it had $20.0 million in revenue and a $3.0 million operating loss, the second-lowest operating loss in the past decade on 12 times the revenue. '[W]e anticipate continued revenue growth and a return to positive operating cash flow by Q2 or Q3. We believe 2025 will be a transformative year in which scalable growth translates into improved results and long-term shareholder value,' stated CEO Ilan Danieli in its Q1 2025 press release. There is no question the future success of Precipio depends on the growth of its net service revenue. In Q1 2025, it was $4.3 million, 51% higher than the same quarter a year earlier and 87% of overall revenue. Its first-quarter service revenues in the past decade. While significant risk remains, the potential reward is also high. I don't know; maybe it's because I've been writing for so long, but I'm skeptical of Arena Group's ability to generate a consistent profit over the long haul. The media business is not easy. Its job isn't made any easier by the fact that it has $110 million in debt at interest rates ranging from 10.1% to 14.2%. In 2024, it paid out nearly $15 million in interest, pushing it from an operating profit to a pre-tax loss. While it can continue cutting expenses to produce a more flattering income statement--its Q1 2025 operating expenses were half what they were in 2024--it's going to take a lot more than that to eliminate its $475 million accumulated deficit. I don't see that happening in my lifetime. As for Precipio, we're talking about a different kettle of fish. If I hadn't told you the name of the company and what business it was in, and showed you its financials, you wouldn't take long to make up your mind that it's a loser. Perfectly understandable. However, I can see why speculative investors are jumping in, generating share volume of over 100,000 in the past three days combined, which is well above its 12,834 30-day average. If Medicaid and Medicare don't mess things up, its third-party-payer growth in the first quarter was 36% higher than a year ago, accounting for 55% of its overall service revenue. Where it gets interesting is in the products side of its business, which accounted for just 13% of Q1 2025 revenue. The company expects growth on the product side in the second quarter and beyond. With a gross margin of 51%, 900 basis points higher than its pathology services business, it won't take much revenue growth to get to an annual operating profit. I wouldn't make this investment in a tax-advantaged account where you lose the ability to write off capital losses against capital gains. However, if it's money you can afford to lose, Precipio may be close to a tipping point and worth a small bet. On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
02-04-2025
- Business
- Yahoo
Precipio Inc (PRPO) Q4 2024 Earnings Call Highlights: Break-Even Achieved and Strategic Growth ...
Release Date: March 31, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Precipio Inc (NASDAQ:PRPO) achieved its goal of reaching break-even by the end of 2024, with positive adjusted EBITDA and positive cash flow. The company reported a revenue growth of nearly 26% in Q4 2024 compared to the previous year, and a full-year growth of close to 22%. The pathology division exceeded its break-even point for the second consecutive quarter, contributing positively to the company's cash flow. Precipio Inc (NASDAQ:PRPO) is focusing on enhancing its distribution strategy, which is expected to accelerate growth through partnerships. The return of Steve Miller as Chief Commercial Officer is anticipated to drive growth in the product division, leveraging his extensive experience in the diagnostic field. The product division's Q4 revenues remained flat compared to Q3, indicating challenges in converting customer onboarding into revenue. Regulatory changes have caused delays in revenue realization, as new requirements necessitate modifications to products and processes. Equipment and lab process challenges have led to delays in customer onboarding, impacting revenue timelines. Personnel challenges, such as staff turnover in customer labs, have resulted in significant revenue gaps. The company acknowledges the need to better adapt to challenges and increase its customer base to achieve stable growth and provide reliable financial guidance. Warning! GuruFocus has detected 2 Warning Signs with PRPO. Q: Can you provide an update on Precipio's financial performance and goals for 2024? A: Elon Danielli, CEO, reported that Precipio achieved its goal of reaching break-even by the end of 2024, with positive adjusted EBITDA and cash flow in Q4. The company is on track to become profitable, with current cash reserves and a growth pipeline supporting this trajectory. Q: How did the pathology division perform in 2024, and what are the targets for 2025? A: The pathology division exceeded its break-even point for the second consecutive quarter, with revenues surpassing $1.3 million per month. The target for 2025 is to grow this division organically to reach a $25 million run rate by year-end, contributing positively to cash flow and supporting future product development. Q: What challenges has the product division faced, and how is Precipio addressing them? A: The product division faced regulatory, equipment, and personnel challenges, causing delays in revenue generation. Precipio is addressing these by anticipating regulatory changes, improving customer onboarding processes, and enhancing lab workflows to ensure consistent revenue streams. Q: What strategic changes are being implemented to enhance growth in the product division? A: Steve Miller, former Chief Commercial Officer, is rejoining Precipio to accelerate growth in the product division. The company is focusing on direct sales and enhancing collaboration with distribution partners to scale up growth. Two large institutional customers will be onboarded in the coming quarter, expected to boost revenue. Q: What are Precipio's plans for enhancing visibility in the financial markets in 2025? A: Precipio plans to enhance market visibility by participating in industry and investor conferences, increasing analyst coverage, and implementing targeted investor engagement initiatives. The company aims to provide management guidance on key financial metrics as it achieves revenue stability and customer base growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
29-03-2025
- Business
- Yahoo
Precipio Full Year 2024 Earnings: US$2.93 loss per share (vs US$4.51 loss in FY 2023)
Revenue: US$18.5m (up 22% from FY 2023). Net loss: US$4.29m (loss narrowed by 27% from FY 2023). US$2.93 loss per share (improved from US$4.51 loss in FY 2023). The end of cancer? These 15 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. All figures shown in the chart above are for the trailing 12 month (TTM) period Precipio shares are down 7.5% from a week ago. What about risks? Every company has them, and we've spotted 2 warning signs for Precipio (of which 1 is significant!) you should know about. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
28-02-2025
- Business
- Yahoo
Precipio achieves positive adjusted EBITDA, cash flow in Q4
Precipio (PRPO), has achieved two financial goals in the last quarter of 2024: Positive Adjusted EBITDA – Precipio reports Adjusted EBITDA of $0.4M 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 or expenses. Positive Cash flow. Precipio reports an 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 company said, '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.' See what stocks are receiving Strong Buy ratings from top-rated analysts. Filter, analyze, and streamline your search for investment opportunities with TipRanks' Stock Screener. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on PRPO: Precipio Adopts Performance-Based Stock Options for 2025
