Personalis Q2 Revenue Jumps 30% on Clinical Test Surge, but Losses Widen Ahead of Tempus Merger
PSNL has more than doubled off its 52-week low of $3.84.
Summary
Personalis Q2 revenue rose 30% to $22.4M on clinical test growth, but net loss widened to $31.7M. Cash fell to $212.7M. The pending Tempus acquisition dominates the outlook.
Key Events · Earnings and Guidance · PSNL
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Revenue Up 30%, Clinical Tests Surge
Q2 revenue hit $22.4M, up from $17.2M a year ago. Clinical diagnostic revenue soared 442% to $2.5M, driven by new Medicare coverage for breast, lung, and immunotherapy monitoring. Pharma testing services rose 52% to $16.8M, largely from Merck.
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Losses Widen on Spending Surge
Net loss grew to $31.7M from $20.1M in Q2 2025. SG&A jumped 55% to $22.0M, including $3.8M in Tempus sales fees and $1.3M in merger costs. R&D rose 32% to $16.3M. Six-month loss reached $61.7M.
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Cash Burn Accelerates, ATM Frozen
Cash and investments fell to $212.7M from $239.9M at year-end 2025. The $150M ATM facility has $145.4M remaining but cannot be used while the Tempus merger is pending. Management says current cash is sufficient for at least 12 months.
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Merck Concentration Deepens
Merck accounted for 37% of Q2 revenue, up from 11% a year ago, and 49% of accounts receivable. The top three customers (Merck, VA MVP, Moderna) made up 62% of revenue.
Analysis · PSNL · Industrial Applications And Services
Personalis delivered a mixed quarter. Revenue grew 30% to $22.4 million, powered by a 442% surge in clinical diagnostic revenue after securing multiple Medicare coverage wins. However, the bottom line deteriorated sharply — net loss widened to $31.7 million from $20.1 million a year ago, driven by a 55% jump in SG&A (including $3.8 million in Tempus-related sales fees and $1.3 million in merger costs) and a 32% rise in R&D. Cash and investments fell to $212.7 million from $239.9 million at year-end, though management says it's enough for at least 12 months. The pending $1.5 billion acquisition by Tempus, announced July 20, overshadows everything: the ATM facility is frozen, and the company is burning cash while navigating merger restrictions. Merck now accounts for 37% of revenue, up from 11% a year ago, deepening customer concentration risk. The clinical diagnostic ramp is real, but the standalone path is narrowing — this quarter underscores why the board took the buyout.
At the time of this filing, PSNL was trading at $13.29 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $1.4B. The 52-week trading range was $3.84 to $16.39. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.