PSNL

Tempus AI, Inc. TEM used its second quarter of 2026 earnings call to frame growth around oncology testing, data demand and reimbursement-driven pricing while outlining a measured approach to molecular residual disease. TEM’s second-quarter 2026 revenues of $382.49 million topped the Zacks Consensus Estimate of $380.95 million. The non-GAAP loss of 4 cents per share was narrower than the Zacks Consensus Estimate loss of 13 cents. Tempus AI, Inc. price-consensus-eps-surprise-chart | Tempus AI, Inc. Quote CEO Eric Lefkofsky and CFO James Rogers focused on visibility, FDA-linked pricing gains and cash generation. TEM raised 2026 revenue guidance to $1.595 billion-$1.605 billion, representing about 25% growth, while maintaining adjusted EBITDA guidance at roughly $65 million. The forecast excludes the Personalis transaction. TEM’s second-quarter Diagnostics revenues increased 20% to $289.3 million, while Data and Applications revenues climbed 28% to $93.2 million. Lefkofsky cited accelerating comprehensive genomic profiling and data demand. Oncology volume grew 31% year over year, while hereditary revenues increased 5% against what he described as a strong comparison period. The CEO said FDA approval for tumor-only xT CDx should lift average selling prices by an estimated $200, translating to about $85 million of annual revenue uplift beginning in 2027. Lefkofsky said approval of the liquid biopsy test xF — expected in the latter half of 2027 — could add another $550 million of ASP uplift. He anticipates about $400 million of combined xT CDx and xF revenue uplift in 2028. A BTIG analyst asked about xF pricing. CFO James Rogers said TEM is assuming a $7,500 ADLT price, while CEO Eric Lefkofsky linked the higher expectation to pricing for comparable liquid biopsy products. Data Licensing and Modeling revenues grew 36% year over year, and TEM signed roughly $200 million of new Data and Applications licenses. The company delivered the first version of its oncology foundation model to AstraZeneca. Lefkofsky said the model met AstraZeneca's acceptance criteria on response prediction tasks, including blinded clinical-trial data. He said it can now serve as a foundation for broader research and development work. A Mizuho analyst asked about AstraZeneca beyond 2026. The CEO said projects already extend into 2027 and expects the company to remain a large client, with a similar amount of data and revenue next year. MRD volume reached about 9,000 tests in the second quarter, up 38% from roughly 6,500 in the first quarter, although only about 10% of TEM's sales force sells the Personalis test. A Morgan Stanley analyst asked about reimbursement economics. CFO James Rogers said additional covered indications should lift ASPs over time, while broader commercial access can expand volume. CEO Eric Lefkofsky said TEM plans to accelerate selling once ASPs approach breakeven rather than maximize volume while margins are negative. He also said the company intends to use debt for a large portion of the Personalis consideration to limit dilution. TEM completed a $460 million offering of 0.0% convertible senior notes due 2032 and used proceeds to repay an Ares Capital loan. Lefkofsky said the refinancing should save more than $30 million in annual interest expense. Adjusted EBITDA was $8 million, improving $13.6 million year over year, while operating cash use improved to negative $7.5 million. Cash, cash equivalents and marketable securities ended June at $820.7 million. TEM's growing gross profit base gives it room to redirect variable spending toward commercial investment while maintaining progress toward positive EBITDA and free cash flow. CEO Eric Lefkofsky emphasized sustaining oncology and data growth, converting regulatory approvals into better pricing, broadening MRD as reimbursement supports the economics and continuing profitability improvement. CFO James Rogers added specificity around the $7,500 xF pricing assumption and the path to better Personalis ASPs. Key operating milestones center on pricing implementation, xF approval, data-contract execution and MRD reimbursement. TEM currently carries a Zacks Rank #3 (Hold). Under the Zacks Style Scores framework, a #3-ranked stock can be held, but stronger A or B scores are preferable when evaluating value, growth or momentum characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. TEM has an F grade for Value Score, Growth Score, Momentum Score and VGM Score, the weakest grade in the Style Score hierarchy. The Zacks Rank can change as earnings estimates are revised after the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tempus AI, Inc. (TEM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Clinical test volume surged 199% year-over-year and 33% sequentially to 10,384 tests in Q2Clinical revenue grew 442% to $2.6 million and overall revenue grew 30% year over year to $22.4 millionSecured Medicare coverage for NeXT Personal® for IO monitoring and Neoadjuvant Breast Cancer monitoring to expand Medicare coverage to four indications FREMONT, Calif., August 04, 2026--(BUSINESS WIRE)--Personalis, Inc. (Nasdaq: PSNL), a leader in advanced genomics for precision oncology, today reported financial and operational results for the second quarter ended June 30, 2026, and highlighted recent business accomplishments. Second Quarter and Recent Strategic and Operational Highlights Secured Medicare Coverage for IO Monitoring: Received Medicare coverage approval for NeXT Personal for immunotherapy monitoring for patients with late-stage solid tumors. Secured Medicare Coverage for Neoadjuvant Therapy Monitoring for Breast Cancer: Received Medicare coverage approval for NeXT Personal for monitoring treatment response to neoadjuvant therapy (NAT) in patients diagnosed with Stage II-III Triple-Negative Breast Cancer (TNBC) or HER2-positive (HER2+) breast cancer. Presented Compelling Colorectal Cancer Recurrence Detection: The prospective VICTORI study led by the University of British Columbia showed NeXT Personal detected 100% of all patient relapses, including all distant metastases in historically difficult-to-detect regions like the lung. Notably, just four weeks after surgery, NeXT Personal detected over 80% of patients who later relapsed, providing clinicians with an early signal of cancer to inform treatment pathways. Highlighted Importance of Sub-10 ppm Sensitivity in Lung Cancer: Approximately 21% of pre-operative adenocarcinoma and 18% of post-operative landmark detections in the TRACERx study were below 10 ppm—thresholds frequently missed by less sensitive assays. Patients detected in this range experienced a three-fold increased risk of recurrence compared to patients with undetectable ctDNA, potentially enabling much earlier clinical intervention. Second Quarter 2026 Financial Results Compared with Second Quarter 2025 Quarterly Revenue: Total revenue of $22.4 million compared with $17.2 million, a 30% increase, primarily driven by higher pharma testing services and growth in clinical tests as a result of recent expanded Medicare reimbursement coverages. Clinical Revenue: Clinical test revenue of $2.6 million compared with $0.5 million, a 442% increase resulting from a full quarter of covered lung cancer testing revenue and also, the expansion of Medicare coverage for IO therapy monitoring received in the second quarter; delivered 10,384 clinical tests compared with 3,478, representing a 199% increase. Core Revenue Streams: Revenue from pharma testing services and all other customers totaled $16.8 million compared with $11.1 million, a 51% increase. Revenue from population sequencing (the VA MVP) totaled $3.0 million compared with $3.3 million, a 9% decrease. Strong Cash Position: Ended the quarter with approximately $212.7 million in cash, cash equivalents, and short-term investments. CEO Commentary "We delivered another exceptional quarter of growth, highlighted by a 199% year-over-year and 33% sequential increase in clinical volume, with more than 1,400 physicians ordering NeXT Personal," said Chris Hall, Chief Executive Officer of Personalis. "Our second quarter accomplishments further demonstrate that execution of our 'Win-in-MRD' strategy to establish NeXT Personal as the new standard for detecting cancer recurrence early has been effective. Looking into the second half of the year, we remain excited about the scale, complementary capabilities and resources that combining with Tempus gives us to accelerate innovation and deliver even greater value to patients, clinicians and biopharma partners and we expect to continue building our body of evidence to support reimbursement expansion into new indications, as well as continue to grow adoption of Next Personal by the clinical community. We remain firmly on-track to achieve more than a 500% increase in our clinical revenue over last year." Full Year 2026 Outlook As a result of the announcement on July 20, 2026 that Personalis and Tempus AI, Inc. have entered into an Agreement and Plan of Merger, Personalis will no longer provide financial guidance or conduct a quarterly earnings conference call. About Personalis, Inc. At Personalis, we are transforming the active management of cancer through breakthrough personalized testing. We aim to drive a new paradigm for cancer management, guiding care throughout the patient journey. Our highly sensitive assays combine tumor-and-normal profiling with proprietary algorithms to deliver advanced insights even as cancer evolves over time. Our products are designed to detect minimal residual disease (MRD) and recurrence at the earliest timepoints, enable the selection of targeted therapies based on ultra-comprehensive genomic profiling, and enhance biomarker strategy for drug development. Personalis is based in Fremont, California. To learn more, visit www.personalis.com and connect with us on LinkedIn and X (Twitter). Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and can generally be identified by terms such as "anticipate," "estimate," "expect," "if," "may," "future," "will" or similar expressions. These statements include statements relating to: Personalis’ continued growth of adoption of Next Personal by the clinical community, Personalis’ expected more than 500% increase in its clinical revenue over last year, the clinical relevance of the NeXT Personal test and the potential impact or expected benefits of the Personalis’ published data and presentations, and statements regarding the proposed transaction between Personalis and Tempus AI, Inc. (Tempus) and the benefits of such transaction. Such forward-looking statements involve known and unknown risks and uncertainties and other factors that may cause actual results to differ materially from any anticipated results or expectations expressed or implied by such statements, including the risks, uncertainties and other factors that relate to the pending acquisition by Tempus, including the occurrence of any event, change or other circumstances that could give rise to the termination of the agreement and plan of merger (the Agreement), the possibility that Personalis shareholders may not adopt the Agreement, the risk that Personalis or Tempus may be unable to obtain governmental and regulatory approvals and clearances required for the proposed transaction, or required governmental and regulatory approvals and clearances may delay the transaction or result in the imposition of conditions that could cause the parties to abandon the transaction, the risk that the parties may not be able to satisfy the conditions to the proposed transaction in a timely manner or at all, risks related to disruption of management time from ongoing business operations due to the proposed transaction, the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of Personalis’ common stock or Tempus’ common stock, the risk of any litigation relating to the proposed transaction, and the risk that the proposed transaction and its announcement could have an adverse effect on the ability of Personalis and/or Tempus to retain and hire key personnel; the timing and pace of new orders from customers, including from ModernaTX, Inc., Merck Sharp & Dohme LLC and other biopharma customers, and the VA MVP; the success of Personalis’ and Tempus’ respective sales and marketing efforts; the timing of tissue, blood, and other specimen sample receipts from customers, which can materially impact revenue quarter-over-quarter and year-over-year; Personalis’ ability to demonstrate attributes, advantages or clinical validity of the NeXT platform, including the NeXT Personal MRD assay remaining unique in its ability to detect traces of cancer in the ultrasensitive range; future clinical data differing from the clinical data previously presented or expected results; the rate of adoption and use of the NeXT platform, including maintaining the accelerated adoption rates experienced in 2025 and in the first half of 2026; Personalis’ ability to obtain Medicare coverage and reimbursement in additional indications and the timing thereof; the impact of competition and macroeconomic factors on Personalis’ business; the partnering and/or collaboration arrangements that Personalis has entered into or may enter into in the future may not be successful, or may terminate, which could adversely impact Personalis’ business or affect its ability to develop and commercialize its services and products; having a limited number of suppliers; customer concentration; and Personalis may opportunistically raise additional capital through equity offerings, debt financings, collaborations, or licensing arrangements. These and other potential risks and uncertainties that could cause actual results to differ materially from the results predicted in these forward-looking statements are described under the captions "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in Personalis’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, filed with the Securities and Exchange Commission (SEC) on May 7, 2026 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, to be filed with the SEC on August 4, 2026. All information provided in this release is as of the date of this press release, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. Personalis undertakes no duty to update this information unless required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804107691/en/ Contacts Investor Relations:Caroline [email protected] 646-277-1279 Media:[email protected]

Interested in Tempus AI, Inc.? Here are five stocks we like better. Tempus AI reported strong second-quarter results, with revenue up 22% year over year to $382.5 million and adjusted EBITDA improving to $8 million. Diagnostics grew 20%, while Data and Apps increased 28%, prompting the company to raise its 2026 revenue outlook to approximately $1.6 billion. Growth was led by accelerating comprehensive genomic profiling volumes and expanding data and AI partnerships, including multiyear agreements with BioNTech and AstraZeneca. The company also launched its GenomeNext rare-disease offering, while its AstraZeneca foundation model met performance criteria in clinical-trial testing. New products and acquisitions could drive future revenue: FDA approval of tumor-only xT CDx may support an estimated $85 million in annualized revenue beginning in 2027, while xF liquid-biopsy approval and the Personalis acquisition are expected to expand Tempus’ presence in the MRD market. Management projects about $400 million of combined revenue uplift from xT CDx and xF approvals in 2028. MarketBeat Week in Review – 02/23 - 02/27 Tempus AI (NASDAQ:TEM) reported second-quarter revenue growth of 22% and raised its full-year outlook, citing accelerating oncology testing volumes, expanding demand for its data and artificial intelligence offerings, and expected reimbursement benefits from newly approved diagnostic products. Revenue for the quarter ended June 30 totaled $382.5 million. Diagnostics revenue rose 20% year over year to $289.3 million, while Data and Apps revenue increased 28% to $93.2 million. The company reported GAAP net income of $5.6 million and adjusted EBITDA of $8 million, representing a $13.6 million year-over-year improvement. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now After a Near 50% Drop, Tempus AI Could Be Ripe for a Rebound Founder and CEO Eric Lefkofsky called the period “an exceptional quarter,” noting that June produced some of the company’s strongest growth across its portfolio to date. Tempus said slower growth in hereditary cancer testing was offset by faster growth in comprehensive genomic profiling, or CGP. Hereditary revenue increased 5% to $107.4 million, which Lefkofsky said was affected by comparisons with an unusually strong second quarter of 2025. → Microsoft Just Flipped the AI Spending Narrative Overnight Tempus AI Sold Off After a Beat—But the Rebound Case Is Building The company said core testing volume growth accelerated to 31% during the quarter. Chief Financial Officer Jim Rogers said the algorithm attachment rate for solid-tumor tests rose to 45%, compared with 40% cited in the first quarter. While many of those algorithms are not yet reimbursed, Rogers said they provide physicians with insights beyond standard test results and support diagnostic-volume growth. Tempus also launched GenomeNext, its whole-genome offering for rare disease. Lefkofsky said initial demand exceeded the company’s first-month expectations, although he characterized the early volume as small and said Tempus has only one month of data following the launch. The company expects hereditary testing growth to reach the mid-teens by year-end. → Carrier Earnings Could Send the Stock to a New All-Time High During the quarter, Tempus received FDA approval for tumor-only xT CDx. According to management, the approval allows the company to move its entire solid-tumor DNA portfolio to unified Advanced Diagnostic Laboratory Test, or ADLT, pricing. Lefkofsky said the company expects the approval to result in an estimated $200 increase in average selling price, representing roughly $85 million in annualized revenue beginning in 2027. Tempus also has its xF liquid-biopsy test before the FDA. Management said it expects a potential approval and commercial launch in the latter half of 2027. The company now estimates that xF could provide an additional $550 increase in average selling price under ADLT pricing, using an assumed $7,500 ADLT price. Lefkofsky said the company’s pricing expectations changed as comparable liquid-biopsy products established higher ADLT pricing. Combined, Tempus expects the xT CDx and xF approvals to provide about $400 million of revenue uplift in 2028. Tempus’ Insights data licensing and modeling business grew 36% in the quarter. The company reported about $200 million in total bookings, supported by a multiyear data licensing and modeling agreement with BioNTech as well as agreements with Daiichi Sankyo, LevelSet Bio and Incyte Pharmaceuticals. The company also delivered the first version of its foundation model to AstraZeneca. Lefkofsky said AstraZeneca accepted the model after it met specified criteria in predicting patient responses across public and blinded clinical trials. The model was evaluated against more narrowly tailored models developed by both companies, he said. Management said its current AstraZeneca agreement has several years remaining and that AstraZeneca has committed projects extending into 2027. Lefkofsky said the pharmaceutical company is expected to remain a significant client next year. Tempus said customers are increasingly seeking to use Lens, its platform for accessing data, provisioning graphics processing units and building models. Lefkofsky said those capabilities are intended to increase customer retention, though he does not expect them to change the company’s revenue-recognition model. Tempus has shifted its data business in recent years toward multiyear licenses, rather than immediate revenue recognition from individual data-file sales. On July 20, Tempus announced an agreement to acquire Personalis. Management described minimal residual disease, or MRD, testing as a more than $20 billion market and one of the fastest-growing areas in oncology diagnostics. Tempus said Personalis’ NeXT MRD test volume increased from about 6,500 tests in the first quarter to roughly 9,000 in the second quarter, a 38% sequential increase. About 10% of Tempus’ sales force currently sells the test, reflecting reimbursed indications currently available. Rogers said Personalis has secured coverage in several indications and has additional indications in development, which could improve average selling prices over time. Lefkofsky said the company plans to expand MRD sales efforts more substantially when reimbursement economics approach break-even or better, rather than aggressively increasing test volume while margins remain negative. The acquisition is structured as an all-stock transaction, though Tempus can elect to pay cash for up to 50% of the consideration. Lefkofsky said the company is working to establish a debt facility and intends, depending on its stock price, to fund a substantial portion of the purchase with debt to limit shareholder dilution. Tempus raised its 2026 revenue guidance to between $1.595 billion and $1.605 billion, representing approximately 25% growth. It expects adjusted EBITDA of about $65 million for the year, an improvement of roughly $72 million from 2025. The company ended the quarter with $820.7 million in cash equivalents and marketable securities, up from $643.8 million in the prior quarter. Cash used in operating activities improved to $7.5 million during the quarter. Tempus also completed a $460 million offering of 0% convertible senior notes due in 2032. Proceeds were used in part to repay a loan from Ares Capital. Lefkofsky said the refinancing is expected to reduce annual interest expense by more than $30 million and enable the company to achieve positive free cash flow by the end of 2026. Tempus is a technology-driven healthcare company that applies artificial intelligence and machine learning to clinical and molecular data in order to advance precision medicine. Its primary focus lies in oncology, where the company offers comprehensive genomic profiling, digital pathology services and data-driven insights to inform personalized cancer care. By integrating DNA and RNA sequencing with structured clinical information, Tempus enables clinicians and researchers to identify targeted treatment options for patients based on the genetic characteristics of their tumors. The company's core offering centers on a scalable, cloud-based analytics platform that aggregates vast amounts of molecular and clinical data. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Tempus AI Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Interested in Personalis, Inc.? Here are five stocks we like better. Personalis posted Q1 2026 revenue of $15.5 million and said it is intentionally shifting toward higher-growth clinical MRD and biopharma MRD testing, while reducing reliance on lower-margin legacy revenue. The company reaffirmed full-year revenue guidance of $78 million to $80 million. Clinical test volume surged to more than 7,800 tests in the quarter, up 26% sequentially and 258% year over year, with over 1,000 physicians ordering the test. Management said retention among oncologists using NeXT Personal remains above 98% and that the rollout is being supported through its partnership with Tempus. Margins were heavily pressured by unreimbursed testing, with gross margin falling to 1.8% from 35% a year earlier, but management called the compression temporary. Personalis ended the quarter with $233.2 million in cash, no meaningful debt, and said reimbursement coverage and additional clinical evidence remain key growth drivers. Biotech Stock Soars 60% in 2024: Cathie Wood’s Bold Investment Personalis (NASDAQ:PSNL) reported first-quarter 2026 revenue of $15.5 million as management said the company is prioritizing growth in its clinical minimal residual disease, or MRD, testing business and biopharma MRD programs over lower-margin legacy enterprise revenue. Chief Executive Officer Chris Hall said the company delivered more than 7,800 clinical tests in the quarter, up 26% sequentially from the fourth quarter and 258% year over year. He said the company remains focused on scaling NeXT Personal, its tumor-informed blood test for detecting and monitoring cancer recurrence. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% “Since we launched NeXT Personal, we haven't just validated our Win in MRD strategy, we have disrupted the market,” Hall said. “Last year in 2025, we established the power of our platform, and this year in 2026, we are scaling it.” Hall said Personalis continues to expect 43,000 to 45,000 clinical tests in 2026. The company also reaffirmed full-year revenue guidance of $78 million to $80 million, including strategic revenue of $30 million to $32 million. → Light Speed Returns: Corning Cashes In on NVIDIA Growth Hall said more than 1,000 physicians ordered Personalis tests during the first quarter. He also said the company has seen retention of more than 98% “over the past several quarters” among oncologists who have integrated NeXT Personal into routine workflows. In response to an analyst question, Hall said the 1,000-physician figure referred to ordering physicians in the quarter, not a cumulative total. He said most physicians ordering the test have some experience with MRD testing, though Personalis is also targeting physicians who are newer to the category. → Years in the Making, AMD’s Upside Movement Has Just Begun “We’re seeing the market just continue to grow,” Hall said, citing interest in blood tests that monitor cancer progression and recurrence. He said the company believes its ultra-sensitive approach gives physicians and patients more confidence in negative results. Personalis is commercializing NeXT Personal in partnership with Tempus. Hall said the company is working with Tempus in a coordinated way rather than competing in the field. Aaron Tachibana, the company’s chief financial and chief operating officer, said Tempus accounted for a little more than 80% of volume in the quarter, while Personalis’ internal commercial team was “flattish” sequentially. Tachibana said total revenue declined 25% from the year-earlier period, but characterized the decrease as part of an intentional transition from lower-margin legacy enterprise revenue to higher-growth clinical and biopharma MRD revenue. He also said revenue from Moderna decreased as expected following the conclusion of enrollment in a large Phase III trial last year. Personalis expects a baseline of $2 million to $3 million per quarter from Moderna for the rest of 2026. Biopharma testing services revenue was $11.2 million in the first quarter, down from $13.6 million a year earlier. Tachibana said the decline was entirely due to the expected decrease in Moderna revenue. Clinical revenue was $1.4 million, compared with $0.3 million in the prior-year quarter. Tachibana said revenue is now being generated from Medicare reimbursement coverage for breast and lung cancer surveillance, with breast cancer covered in November 2025 and lung cancer in February 2026. Personalis reported $3.1 million of biopharma MRD revenue in the first quarter. Management said it still expects full-year biopharma MRD revenue of $20 million to $21 million, with most of that revenue expected in the second half of the year as larger projects ramp. Gross margin was 1.8% in the first quarter, compared with 35% in the prior-year period. Tachibana said the margin compression was “both intentional and temporary,” driven by the growth of NeXT Personal testing ahead of reimbursed revenue. He said unreimbursed test costs diluted margins by more than 2,000 basis points in the quarter. Operating expenses rose to $32.4 million from $24.9 million a year earlier, as the company invested in commercial resources, reimbursement-supporting studies and technology development. Research and development expense was $14.5 million, while selling, general and administrative expense was $17.9 million. Net loss widened to $30 million from $15.8 million in the prior-year quarter. The company ended the quarter with $233.2 million in cash and short-term investments and no debt other than small equipment loans. Tachibana said cash usage was approximately $28 million in the quarter, including about $5 million of incentive compensation that will not repeat during the rest of the year. Hall said Personalis submitted a neoadjuvant breast cancer coverage request during the quarter, and that both the neoadjuvant breast cancer submission and a pan-cancer immunotherapy monitoring submission are under review. He said timing remains subject to MolDX review. The company highlighted data presented at the AACR conference, including NEOPRISM-CRC colorectal cancer data that Hall said showed a 100% negative predictive value for disease relapse following surgery in a group of patients. He also cited real-world NeXT Personal testing of 10,000 patients, which found that 40% of positive detections occurred in the “ultrasensitive range” below 100 parts per million across 14 cancer types and stages. Hall also discussed the DARWIN 2 study, saying collaborators found NeXT Personal was a predictor of long-term immunotherapy success in lung cancer patients, with patients who cleared DNA early during treatment five times more likely to remain progression-free at three years. Looking ahead to ASCO, Rich Chen, president and chief medical officer, said Personalis expects to present more colorectal cancer data and data in two additional cancer types. Chen said there is increasing recognition in the oncology community that ultra-sensitivity in MRD testing is “not just a nice to have, but a must-have.” Personalis reaffirmed its 2026 guidance. The company expects: Total revenue of $78 million to $80 million. Clinical revenue of $10 million to $11 million from covered breast and lung cancer surveillance tests. Revenue from pharma tests, services and other customers of $55 million to $56 million. Biopharma MRD revenue of $20 million to $21 million. Population sequencing plus enterprise customer revenue of approximately $13 million. Gross margin of 15% to 20%, with the first two quarters expected to be the lowest points of the year. Net loss of approximately $105 million and cash usage of approximately $100 million. Tachibana said the company’s guidance only assumes paid tests from reimbursement coverage decisions already received. He said potential upside could come from faster coverage expansion, accelerated payer adoption, additional clinical test volume growth and stronger biopharma MRD demand. Personalis, Inc (NASDAQ: PSNL) is a clinical‐stage genomics company that develops and markets advanced next‐generation sequencing (NGS) services and assays designed to accelerate precision medicine. The Company's core offering is the ImmunoID NeXT™ Platform, which combines comprehensive tumor profiling—including whole exome, transcriptome, and T‐cell receptor sequencing—with proprietary bioinformatics to identify biomarkers and guide immuno‐oncology research. Personalis serves biopharmaceutical companies, academic institutions, and clinical research organizations seeking in‐depth insights into cancer, autoimmune diseases and other complex conditions. In addition to its flagship ImmunoID NeXT™ Platform, Personalis offers a suite of customizable sequencing assays for biomarker discovery, clinical trial support and companion diagnostic development. The article "Personalis Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Clinical test volume surged 258% year-over-year and 26% sequentially to 7,815 tests in Q1 Medicare coverage secured for lung cancer surveillance, providing a clear path to monetize rapidly growing clinical test volumes FREMONT, Calif., May 07, 2026--(BUSINESS WIRE)--Personalis, Inc. (Nasdaq: PSNL), a leader in advanced genomics for precision oncology, today reported financial and operational results for the first quarter ended March 31, 2026, highlighted recent business accomplishments, and reaffirmed financial guidance for the full year 2026. First Quarter and Recent Strategic and Operational Highlights Secured Milestone Medicare Coverage for Lung Cancer: Received Medicare coverage approval in the first quarter for the surveillance of cancer recurrence in lung cancer patients for Stage I to III non-small cell lung cancer (NSCLC). This marks the Company's second major coverage decision in six months, alongside breast cancer. Announced Early Access Launch of Real-Time Variant Tracker™: Launched a pioneering new feature for NeXT Personal® that empowers clinicians to longitudinally track resistance and therapeutically targetable mutations during routine disease monitoring, and potentially optimize treatment. Published Neoadjuvant Treatment Monitoring Results in Breast Cancer: Featured data in the Journal of Clinical Oncology from the PREDICT-DNA prospective study for Triple-Negative (TNBC) and HER2+ breast cancer patients that showed NeXT Personal can outperform current standard approaches for predicting patient outcomes following neoadjuvant therapy (NAT). Presented Compelling Data at the American Association for Cancer Research (AACR) Annual Meeting: Colorectal Cancer (CRC) Podium Presentation: Highlighted the ultrasensitive ctDNA detection by NeXT Personal for predicting and tracking response to neoadjuvant immunotherapy in CRC patients, demonstrating a remarkable 100% negative predictive value and 100% specificity for disease relapse following surgery. Lung Cancer Poster Presentation: Demonstrated that ultrasensitive ctDNA monitoring with NeXT Personal successfully predicts the early response of immunotherapy in recurrent metastatic NSCLC patients. First Quarter 2026 Financial Results Compared with First Quarter 2025 Quarterly Revenue: $15.5 million compared with $20.6 million; reflecting the planned decline in non-core revenue as the company focuses on growing revenue from its strategic MRD offering. Clinical Revenue: Clinical test revenue of $1.4 million, compared with $0.3 million; delivered 7,815 clinical tests compared with 2,184, representing a 258% increase. Core Revenue Streams: Pharma testing services and all other customers contributed $11.2 million. Revenue from enterprise sales (Natera) and population sequencing (the VA MVP) totaled approximately $2.9 million. Strong Cash Position: Ended the quarter with approximately $233.2 million in cash, cash equivalents, and short-term investments. This includes approximately $21.0 million in net proceeds from the Company’s At-The-Market (ATM) sales program, executed at a weighted-average price of $10.00 per share. CEO Commentary "Our accomplishments in the first quarter demonstrated that our 'Win-in-MRD' strategy is working to establish NeXT Personal as the new standard for how cancer is detected and monitored," said Chris Hall, Chief Executive Officer of Personalis. "Delivering 26% sequential and 258% year-over-year clinical volume growth—especially during what is traditionally the industry's toughest seasonal quarter reflects the strong market demand for our ultrasensitive NeXT Personal test. With new Medicare coverage for lung cancer joining our existing breast cancer win, Personalis now has a reimbursement success in two of the largest oncology indications. We are transforming our ultrasensitive MRD technology from a clinical leader into a potential commercial powerhouse and we remain firmly on track to grow our clinical revenue five-fold this year." Full Year 2026 Outlook Personalis reaffirmed the following guidance for the full year of 2026: Total company revenue in the range of $78.0 to $80.0 million. Clinical test volume scaling rapidly to a range of 43,000 to 45,000 tests, reflecting 171% growth year-over-year at the midpoint. Clinical revenue of $10.0 to $11.0 million, representing roughly a five-fold growth year-over-year, driven by Medicare reimbursement from breast and lung cancer surveillance. Revenue from pharma testing services and all other customers in the range of $55.0 to $56.0 million. Revenue from population sequencing and enterprise sales of approximately $13.0 million. Gross margin in the range of 15% to 20%, reflecting the strategic decision to accelerate clinical volume adoption ahead of full reimbursement coverage to establish market share. Net loss of approximately $105.0 million. Cash usage of approximately $100.0 million, driven by commercial investments to support projected clinical test volume growth and expansion. About Personalis, Inc. At Personalis, we are transforming the active management of cancer through breakthrough personalized testing. We aim to drive a new paradigm for cancer management, guiding care throughout the patient journey. Our highly sensitive assays combine tumor-and-normal profiling with proprietary algorithms to deliver advanced insights even as cancer evolves over time. Our products are designed to detect minimal residual disease (MRD) and recurrence at the earliest timepoints, enable the selection of targeted therapies based on ultra-comprehensive genomic profiling, and enhance biomarker strategy for drug development. Personalis is based in Fremont, California. To learn more, visit www.personalis.com and connect with us on LinkedIn and X (Twitter). Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and can generally be identified by terms such as "anticipate," "estimate," "expect," "if," "may," "future," "will" or similar expressions. These statements include statements relating to: Personalis’ full year 2026 guidance for revenue, gross margin, net loss, and cash usage, the sufficiency of Personalis’ capital to support commercial scale and execution, the expected five-fold growth in clinical revenue in 2026 and Personalis’ commercial investments supporting projected clinical test volume growth and expansion, the potential for new features of the NeXT Personal test to optimize treatment, the clinical relevance of the NeXT Personal test and the potential impact or expected benefits of the Personalis’ published data and presentations. Such forward-looking statements involve known and unknown risks and uncertainties and other factors that may cause actual results to differ materially from any anticipated results or expectations expressed or implied by such statements, including the risks, uncertainties and other factors that relate to the timing and pace of new orders from customers, including from ModernaTX, Inc., Merck Sharp & Dohme LLC and other biopharma customers, and the VA MVP; the success of Personalis’ and Tempus AI, Inc.’s respective sales and marketing efforts; the timing of tissue, blood, and other specimen sample receipts from customers, which can materially impact revenue quarter-over-quarter and year-over-year; Personalis’ ability to demonstrate attributes, advantages or clinical validity of the NeXT platform, including the NeXT Personal MRD assay remaining unique in its ability to detect traces of cancer in the ultrasensitive range; future clinical data differing from the clinical data previously presented or expected results; the rate of adoption and use of the NeXT platform, including maintaining the accelerated adoption rates experienced in 2025 and in the first quarter of 2026; Personalis’ ability to obtain Medicare coverage and reimbursement in additional indications and the timing thereof; the impact of competition and macroeconomic factors on Personalis’ business; the partnering and/or collaboration arrangements that Personalis has entered into or may enter into in the future may not be successful, or may terminate, which could adversely impact Personalis’ business or affect its ability to develop and commercialize its services and products; having a limited number of suppliers; customer concentration; and Personalis may opportunistically raise additional capital through equity offerings, debt financings, collaborations, or licensing arrangements. These and other potential risks and uncertainties that could cause actual results to differ materially from the results predicted in these forward-looking statements are described under the captions "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in Personalis’ Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (SEC) on February 26, 2026 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, to be filed with the SEC on May 7, 2026. All information provided in this release is as of the date of this press release, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. Personalis undertakes no duty to update this information unless required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260507436129/en/ Contacts Investor Relations: Caroline Corner [email protected] 646-277-1279 Media: [email protected]

Image source: The Motley Fool. Thursday, May 7, 2026 at 5 p.m. ET Chief Executive Officer — Christopher M. Hall Chief Financial and Chief Operating Officer — Aaron L. Tachibana President and Chief Medical Officer — Richard Chen Chair of the Board — Caroline V. Corner Caroline V. Corner: Thank you, operator. Welcome to Personalis, Inc.'s first quarter 2026 earnings call. Joining today's call are Christopher M. Hall, Chief Executive Officer; Aaron L. Tachibana, Chief Financial and Chief Operating Officer; and Richard Chen, President and Chief Medical Officer. All statements made on this call that do not relate to matters of historical fact should be considered forward-looking statements within the meaning of U.S. securities laws, including any statements regarding trends and expectations for our financial performance this year and longer term, cash runway and liquidity position, revenue expectations and timing, size and booking of orders, products, services, technology, expansion of clinical volume, reimbursement goals, the outcome and timing of reimbursement decisions, expectations for our existing and future collaboration activities, cost expectations, market size and our market opportunity, and business outlook. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our current expectations. We encourage you to review our recent filings, including the risk factors described in our most recent filings. Personalis, Inc. undertakes no obligation to update these statements, except as required by applicable law. Our press release with our first quarter 2026 results is available on our website, wwwpersonnel.com, under the investors section and includes additional details about our financial results. Our website also has our latest SEC filings, which we encourage you to review. A recording of today's call will be available on our website by 5:00 PM Pacific Time today. With that, I would like to turn the call over to Chris. Christopher M. Hall: Good afternoon, everyone. Thank you for joining us. I am incredibly proud of what our team has accomplished in this first quarter, and more importantly, I am energized by where we are going. Since we launched NeXT Personal, we have not just validated our win-in-MRD strategy; we have disrupted the market. Last year in 2025, we established the power of our platform, and this year in 2026, we are scaling it. We are squarely focused on driving volume in this large and rapidly expanding market. Physicians trust NeXT Personal, our clinical test volumes are accelerating, and the broader medical community is validating our roadmap. For those of you new to our story, Personalis, Inc. is changing how cancer recurrence is detected and monitored. We operate at the absolute leading edge of sensitivity for tracking cancer in the blood. Our test requires just a simple blood draw to detect a single fragment of tumor DNA in a background of a million. Let me be clear: this level of ultrasensitivity is no longer just a technical leap forward; it is a clinical necessity. This precision allows oncologists to detect recurrence months and years ahead of standard imaging. It also provides unprecedented confidence when delivering a negative result. The clinical market for tracking cancer in the blood, or MRD, is advancing toward a $20+ billion opportunity, and Personalis, Inc. is armed with the right technology to win. Beyond the clinic, we are the engine powering the next generation of precision oncology. Biopharma companies rely on our platforms to analyze tumors, identify novel biomarkers, and de-risk their clinical trials. Now turning to our Q1 results, we are executing aggressively. In the first quarter, we delivered more than 7,800 clinical tests. This represents a 26% sequential growth over the fourth quarter, and a 258% year-over-year increase. We are thrilled with this momentum, especially considering that the first quarter is typically the industry's most challenging due to standard seasonality. First-quarter revenue of $15.5 million reflects our planned transition toward high-value, high-margin testing. In this quarter, total strategic revenue, which is revenue derived from the clinical testing and biopharma MRD adoption, reached $4.5 million. We remain on track to achieve our full-year guidance of $78 million to $80 million, with strategic revenue expected to more than double year over year to a range of $30 million to $32 million. Now let us dig deeper into the three pillars of our win-in-MRD strategy that are fueling this growth. The first pillar is clinical adoption. Our commercial engine reached a new high watermark this quarter. We have now surpassed 1,000 ordering physicians in the quarter, and we are seeing incredible retention of over 98% over the past several quarters among oncologists integrating NeXT Personal into their routine testing workflows. We are continuing to scale our commercial footprint with our partner, Tempus, and are extremely confident in our 2026 annual volume estimate of 43,000 to 45,000 tests. We also continue to innovate as we launch the pilot for our real-time Variant Tracker module. This new approach pushes MRD testing beyond ctDNA detection to track how the biology of a tumor is changing in response to therapy. This feature allows physicians to not just monitor the presence of cancer, but to track how the biology of a tumor is changing in response to therapy, gaining insights into the changes of emerging or resistance variants, and enabling doctors to proactively optimize a patient's therapy. Early feedback has been positive. The second pillar of our strategy is building clinical evidence to secure and expand reimbursement, and we have come out of the gates fast in 2026. We submitted neoadjuvant breast cancer this quarter, and both that and our pan-cancer submission to monitor immunotherapy are being reviewed for coverage. While exact timing is subject to MolDX reviews, we are confident in our data and submission. If you want to understand why we are so confident in our data, look no further than the AACR conference in San Diego last month. The data showed off the power of our ultrasensitive approach and three points stand out. First, the NeoPrism CRC data. Our collaborators used NeXT Personal and demonstrated a 100% negative predictive value for disease relapse following surgery in a group of colorectal cancer patients. They also used our test to identify super molecular responders who achieved a complete response after just the first cycle of neoadjuvant therapy. This opens the door in the future for potential nonoperative management for some patients. That could potentially save patients from unnecessary surgery and save the health care system significant cost. The second point is our real-world evidence. Data from NeXT Personal testing of 10,000 patients revealed that 40% of all positive detections occur in the ultrasensitive range, below 100 parts per million, across 14 different cancer types and stages. These are crucial early signals that conventional tests simply miss. Third is the DARWIN II study. Our collaborators show that NeXT Personal is a strong predictor of long-term immunotherapy success in lung cancer patients. Patients who clear ctDNA early during treatment are five times more likely to remain progression-free at the three-year mark. The third pillar of our strategy is leadership in the biopharma sector. Our biopharma MRD pipeline is growing robustly. We are on track to achieve $20 million to $21 million in MRD revenue this year. While Q1 MRD revenue was $3.1 million, we expect this to scale significantly in the second half of the year as we commence the work for several large trials that are now committed. Biopharma companies recognize that to prove the efficacy of next-gen therapies, they need the highest-resolution tools available. This realization is driving adoption of NeXT Personal. The first quarter has provided us with a powerful launchpad for the rest of 2026. We are not just talking about the potential of NeXT Personal anymore; we are actively seeing it translate into clinical volume, biopharma adoption, and a robust data set. The momentum we built in these first few months gives us immense confidence in our full-year trajectory. I want to thank the Personalis, Inc. team for hitting the ground running this year, as well as the clinicians and patients who are moving the needle of cancer care with us. With that, I will hand it over to Aaron to walk through the financials. Aaron L. Tachibana: Thank you, Chris. I will discuss our first quarter 2026 results and then cover the outlook for the full year. Before diving into the details, I want to mention that our focus, priorities, and objectives remain intact: first, to gain market share and scale our clinical test volume; second, to invest in the best possible studies in order to support and secure Medicare reimbursement; and third, to continue to innovate and extend our technology lead within the MRD market. As I discuss our Q1 results, please keep these priorities and objectives in mind. Let us start with the top line. Total company revenue was $15.5 million for Q1 2026. On the surface, this amount is 25% lower than a year ago, but underneath there is an important shift taking place. We are intentionally migrating from lower-margin legacy enterprise revenue over to higher-growth, strategic clinical and biopharma MRD revenue that Chris mentioned earlier. Additionally, as we previously forecast, this quarter reflects the planned decrease in revenue from Moderna due to the conclusion of the large Phase 3 trial enrollment that ended last year. We currently expect a baseline of $2 million to $3 million per quarter from Moderna for the rest of this year. Our full-year revenue guidance of $78 million to $80 million reflects a healthy growth rate of 26% at the midpoint when comparing with the 2025 full-year revenue of $69.6 million and excluding $6.9 million for the non-strategic enterprise amounts and the one-time license fee. Breaking down our core revenue, biopharma testing services were $11.2 million in the first quarter compared with $13.6 million for the same period of the prior year. The first-quarter decline was entirely due to the expected decrease in revenue from Moderna previously mentioned. Looking ahead, our biopharma MRD engine is poised to accelerate. We realized $3.1 million of biopharma MRD revenue in the first quarter and we remain confident in our revenue goal of $20 million to $21 million of biopharma MRD revenue for the full year. We expect the majority of this revenue to be realized in the second half of the year as larger projects ramp up. We are winning many new pharma MRD projects because of our ultrasensitivity and ability to detect cancer recurrence much earlier than other technology. Our backlog of contracted business is growing as well as our funnel of future opportunities. This gives us confidence about our biopharma growth potential for this year and beyond. For clinical revenue, the story is about exponential 2026 growth and expanding our ASPs as we achieve reimbursement milestones. We recognized $1.4 million of revenue in the first quarter compared with $300,000 for the same period of 2025. Although the absolute number is small, this is important now that we are driving revenue from the Medicare reimbursement coverages of breast and lung cancer surveillance received to date. As a reminder, breast cancer was covered in November 2025 and lung cancer in February 2026. Next, I will address gross margin, as it is an important component of our investment strategy to win in MRD. Gross margin was 1.8% in the first quarter, compared with 35% for the same period of the prior year. It is vital to understand that this margin compression is both intentional and temporary. We foresee this margin dilution to continue throughout 2026, with the lowest point expected to be in the first two quarters of the year, and then beginning to improve when we receive reimbursement coverage for IO. The margin dynamic is driven by the strong growth in NeXT Personal test volume ahead of reimbursed revenue, and our goal of gaining market share now. In the first quarter, unreimbursed test cost diluted margins by more than 2,000 basis points. We are securing positions and volume now so when coverage decisions like the recent wins in breast and lung cancer come online, that volume run rate converts to higher-margin revenue. We expect to realize the benefits from investments to gain market share over the next two to three years, as our clinical revenue scales. Operating expenses were $32.4 million in the first quarter compared to $24.9 million for the same period of the prior year. Our expense base is increasing as we forge ahead with key investments in order to win market share. We are investing in commercial resources to drive volume, investing in new and existing studies to support reimbursement, and investing in our technology, like our Variant Tracker feature, in order to maintain and increase our ultrasensitive leadership position. First-quarter R&D expense was $14.5 million compared with $12.6 million for the same period of the prior year, and SG&A expense was $17.9 million compared with $12.3 million for the same period of the prior year. Net loss for the first quarter was $30.0 million compared with $15.8 million for the same period of the prior year. The increase in net loss stemmed from all of the investments previously discussed. Now let us review the balance sheet and our strong cash position. We finished the first quarter with cash and short-term investments of $233.2 million and no debt, other than some small equipment loans. We used approximately $28 million of cash in the first quarter, which included approximately $5 million of incentive compensation that does not repeat throughout the rest of the year. Now let us review our 2026 outlook. Our full-year 2026 guidance is unchanged. As a reminder, our guidance only assumes paid tests from reimbursement coverage decisions received to date. Upsides may be realized from faster coverage expansion, accelerated payer adoption, additional volume growth in clinical tests, and increased strength in biopharma MRD demand. We expect total company revenue to be in the range of $78 million to $80 million, and this assumes clinical revenue of $10 million to $11 million specifically from breast and lung cancer surveillance tests recently covered by Medicare; revenue from pharma tests and services and all other customers to be in the range of $55 million to $56 million; MRD revenue from these customers is expected to grow rapidly and be in the range of $20 million to $21 million; and population sequencing plus enterprise customers of approximately $13 million. Gross margin is expected to be in the range of 15% to 20%, with the first two quarters being the lowest points of the year; net loss of approximately $105 million; and we expect our cash usage to be approximately $100 million as we continue to invest in our win-in-MRD strategy in order to gain market share, fund pivotal clinical studies to support Medicare reimbursement, and help change medical guidelines in our favor. With $233 million of cash on our balance sheet, we have the ability to invest this year and drive scale. We are leading the ultrasensitive MRD market with our technology, and the proof point is our ramping clinical test volume. The market is expanding rapidly and is expected to grow to $20 billion or more, and we are positioned to win. We look forward to updating you on our progress during the next call in a few months. With that, I will turn the call back over to the operator to begin the Q&A session. Operator? Operator: Thank you. We will now open the call for questions. If you would like to ask a question, please press star and then one on your telephone keypad. You may press star and then two if you would like to remove your question from the queue. If I may ask, please limit your questions to one and one follow-up. For participants using speaker equipment, it may be necessary for you to pick up your handset before pressing the star keys. One moment please while we poll for questions. The first question comes from Subhalaxmi T. Nambi from Guggenheim. Please proceed with your question, Subbu. Subhalaxmi T. Nambi: Hey, guys. Thank you for taking my question. You ungated volumes mainly for share gains and to push growth. What did you see in 1Q from a competitive win perspective to reinforce that the strategy is working? Aaron L. Tachibana: In terms of volume, we achieved 26% growth quarter over quarter, 7,800 tests. The first and third quarters are typically lighter because of seasonality. In terms of competitive dynamics, we are doing really well in the marketplace. We are winning with our ultrasensitive capability, and we could not be happier with where we are today. Christopher M. Hall: I would just note, Subbu, we set the overall annual target of 43,000 to 45,000 clinical tests with the idea that we would be pursuing a disciplined land grab with our partner Tempus. We really feel like we nailed it this quarter in terms of tracking and trending exactly where we need to be. We have been focusing on depth inside of existing clients. We crossed 1,000 physicians ordering this quarter, which was tremendous progress. At the same time, we focused on depth, and we have talked about very significant retention within the accounts that have adopted NeXT Personal, and they stay with us because they see the clinical utility of what we are providing. Subhalaxmi T. Nambi: Perfect. Super helpful, Chris. And then any color on how to model 2Q? Should we expect a similar volume step-up? When you are onboarding a new physician, can you talk about the arc of volume growth? How long does it take for the new doctor to ramp ordering to steady state? And is there a mature ordering number you are seeing from earlier doctors? Christopher M. Hall: We see physicians jump in many different ways. Some are using MRD testing for the first time, some have experience and want to experience the ultrasensitivity we provide, and some have limited prior use and start to work with the technology. The way to make this standard of care is to really sell into that group and push usage significantly deeper on the back of an ultrasensitive approach, because you can have more confidence in the negative, which is what we have been focused on. Some physicians jump in with a lot out of the gate, others try a few and see what happens. There is always a desire to test us operationally, to see whether we hit the lead-time goals that we commit to, which we have been largely able to do month after month. We feel like we survive those tests quickly. In general, physicians tend to order more every quarter as they build confidence. Across accounts, there is significant opportunity to go deeper. In very few accounts could anyone say that 100% of eligible patients are getting access to the test, so there are always ways to go deeper and continue to build business and the market. Operator: Thank you. The next question comes from Mark Massaro from BTIG. Mark Massaro: Hey, guys. Thanks for taking the questions. I know some of us have been hopping various calls, pardon me if any of these have been asked before. I wanted to get a sense for how strong the lung versus breast volumes are in the quarter. And can you also speak to IO monitoring as well? Any color on those indications would be helpful. Aaron L. Tachibana: Hey, Mark. In terms of breast volume, it is roughly 20%, give or take a point or two. Lung is between 15% and 20%, closer to 15% in Q1. So trends by cancer type have been in the ranges we have been expecting. In terms of IO coverage, I will let Rich and Chris take that. Christopher M. Hall: There are two questions there. On the samples we are getting, there is no change, which is a similar percentage. On the actual coverage journey, we feel confident that we are making progress there. We only submitted in August, so this process is always variable. But we feel like the data looks really good in that indication, and we feel like all of our interactions have been positive, and we are optimistic that we will be covered for IO based on the strength of the evidence that we have. Mark Massaro: That is helpful. I was wondering if you could speak to ASCO coming up. Should we expect any releases of data, and could you discuss any areas of focus? Richard Chen: Hey, Mark. We have an exciting ASCO coming up. One thing to look for is more colorectal data, which has been a focus of ours as a next step in terms of coverage and also evidence generation. We are excited about that data, and it will build on the initial data that was presented last year around this time. There is also an expansion to additional cancer types. We are not sitting still. We did a lot with breast and lung and focused there for a few years, but now we are starting to expand into other cancer types, so you can look to see additional data there. That is coming off a really great AACR, where we showed 15,000 real-world patients and a consistent limit of detection across those patients, with almost 40% of the results in the ultrasensitive zone, some really great colorectal adjuvant usage, and the power of an ultrasensitive approach there. We also debuted data for our new product extension, the real-time Variant Tracker. We had a lot of impactful data that is moving the needle in the field with physicians. Mark Massaro: Great. And then my last question: your large commercial partner recently disclosed that your tumor-informed test is well over 90% of their MRD volumes. That speaks to the value of your test. Guardant just disclosed that Reveal is a rapidly growing product on the tumor-naïve side. How long do you think your tumor-informed test will be the lead horse in the Tempus portfolio versus their tumor-naïve becoming more balanced as they promote MRD? Christopher M. Hall: We have always felt sensitivity is key in these indications and MRD testing. That has been our guiding principle and has fueled innovation of our ultrasensitive approach in all of our R&D efforts. Our belief is that the tumor-informed approach will carry the day in terms of sensitivity, and that is what most physicians demand. I think the market will continue to be very much focused on the power of a tumor-informed approach. Aaron L. Tachibana: Thank you, Mark. Operator: Thank you. The next question comes from Thomas Flaten from Lake Street Capital Markets. Please proceed with your questions, Thomas. Thomas Flaten: Hey, good afternoon, guys. Aaron, just a quick question on gross margin. You mentioned the second quarter was also going to be a bit of a low point. Does that mean another 2% gross margin quarter, or something significantly better than that? And then, as you look to maximize the reimbursed indications, are you disproportionately incentivizing the sales team to push for those indications that are reimbursed today and maybe additional indications as we roll through the year to help boost those margins? How are you thinking about that? Aaron L. Tachibana: Thanks for the questions, Thomas. For the full-year gross margin guide of 15% to 20%, the back half of the year will have higher margins as our biopharma MRD revenue and clinical revenue increase. In the first quarter, we were just shy of 2%. In Q2, we see that maybe ticking up a little bit. The first half will be the lowest point for the year. For 2026, the 15% to 20% margin range is also expected to be a low point for the company. As we move through 2026 into 2027 and beyond, we see reimbursement continuing to catch up. We have a lot in the hopper. We are doing really well in terms of collecting on claims, so ASPs are expected to increase as well, which will help both top-line growth and margin expansion and will also start to reduce cash usage. On your second question, whether we are disincentivizing or metering non-paid tests: it is hard to do that when selling to community oncologists who have patients with all different cancer types. We do not want to discourage any physician from bringing in any cancer type. We want all comers because at some point we know we have to secure reimbursement for other cancer types, and we have a lot of progress being made. It is not showing up yet, but it is to come. We want to make sure physicians are treated really well. Christopher M. Hall: As we go forward. Thomas Flaten: Appreciate that. Thanks, guys. Aaron L. Tachibana: Thanks, Thomas. Operator: Please press star and then one if you have a question. The next question comes from Michael Stephen Matson from Needham & Company. Please proceed with your questions, Mike. Joseph Conway: Hi, guys. Thanks so much. This is Joseph on for Mike. One question around the ordering physicians—the 1,000 physicians. Is that in the quarter or to date? And can you segment those 1,000 physicians—what percentage are reordering after using a competitor or are new to MRD? Depending on how big that bucket is, what does that tell you about how fast this market is growing? Christopher M. Hall: When I talk about the number of physicians ordering, we mean in the quarter. We do not mean cumulative that have ever ordered from us. In this quarter, there were more than 1,000 physicians that ordered from us. That is a more meaningful way to talk about it than mentioning someone who may have ordered several months ago. Most of the physicians have some experience ordering MRD. That is the simplest way to commercialize these tests—physicians who have some experience—but we did not limit it to that because almost half of physicians probably do not have a lot of experience ordering MRD, so we also target those physicians. A good chunk—the vast majority—have had some experience at some point using MRD testing. They are probably using us in some cases exclusively, or using other providers collectively in their offices. Many physicians use different approaches simultaneously within their office. We are seeing the market continue to grow. There is a lot of energy and excitement around using blood tests as a way to better monitor cancer progression—both to see whether therapy is working, including immunotherapy, or whether the cancer has come back. The power of an ultrasensitive approach is that you are able to give a lot more confidence to a patient that they are truly cancer free, and at the end of the day that is what a lot of patients are looking for. We are helping to deliver on that, and it is helping to grow the market. We are seeing that in the numbers. Joseph Conway: Great. And then on the backlog of contracted pharma business, is there any way—either quantifying it or comparing it to this quarter a year ago—to frame how much it has grown? How long of a stretch of visibility does that backlog give you, given an average trial or average project with a pharma partner? Christopher M. Hall: I cannot compare everything year over year, but what we are really focused on this year are the clinical trials that we see both kicking off and starting, and trials that we plan on characterizing for biopharma companies, both in MRD and for the tumor profiling product. When we kicked off guidance, we had a good sense of that. As the year has gone on, that has only gotten firmer, and those are committed and in most cases contracted now. We feel like we are in a good position to deliver. From the very beginning, we saw that the second half of the year would be a bigger part of our biopharma revenue than the front half. That was never simply hopes and dreams; we needed to make sure it was solidified as we went through the year, and that has happened this quarter. Typically, most of the business you end up doing for the year you have good visibility to by the middle to end of the second quarter. We feel at this point in the year we have good visibility and have affirmed where we are guidance-wise in being able to hit that $20 million to $21 million in MRD and the overall biopharma revenue. Aaron L. Tachibana: To piggyback on what Chris said, the biopharma MRD backlog has continued to grow. The funnel of opportunities is also continuing to grow. It is really robust. Customers see the value of the ultrasensitive test we provide and can clearly see that we can detect recurrence before other technologies. In terms of backlog, we have a mixture of retrospective projects and prospective projects. Some prospective projects will go beyond 12 months, which gives clarity beyond just 12 months. Financially, we rely on backlog inside 12 months because that is what will potentially convert to revenue, and we need to get samples in to run them and record revenue. Joseph Conway: Got it. Thanks very much. Christopher M. Hall: Thanks, Joe. Operator: Thank you. The next question comes from Daniel Gregory Brennan from TD Cowen. Daniel Gregory Brennan: Great. Maybe zooming out at a high level. I know there was a question on ASCO already, but when you think of the ultrasensitive approach versus first-generation approaches, anything you would say from a high level about interest in the market, where it resides today, and what the message will be at ASCO? Christopher M. Hall: Rich is going to take this one, Dan. Richard Chen: Hey, Dan. Thanks for the question. If you go to these conferences, it has really changed over the last few years. There is increasing recognition that ultrasensitivity is critical for patients. It is not just a nice-to-have, but a must-have at this point, on the heels of a lot of data that has come before. At ASCO you will see that continued message and the data speaks for itself. For example, in colorectal cancer, last year preliminary data showed that it made a big difference for patients in terms of sensitivity, recognizing cancer recurrence risk very early. You will see those things reinforced with data presented at ASCO this year. That is true in colorectal cancer but also in other cancers we will present data for. Aaron L. Tachibana: On guidance and molecular volumes, we just reaffirmed guidance, Dan. We have not changed anything at this point. We had a strong Q1, but we have an aggressive plan to go from 16,000 samples last year to 43,000 to 45,000 this year, doing that in a disciplined way and being thoughtful about spend and gating by the number of resources we apply, with our partner Tempus and our own sales reps. We feel we are on plan and managing responsibly while seizing the opportunity and pushing us closer to realizing the goals of our win-in-MRD strategy. Daniel Gregory Brennan: That is great, Chris. Is there a typical MolDX turn and how many times back and forth it requires? Given when you submitted neoadjuvant breast and IO, is there a framework by which it would be logical to think we could get an answer? Christopher M. Hall: It is always a 60-day turnaround time from the time that you respond to questions. The back and forth is variable. We think they do a great job; we really respect and admire their work. We feel we are sitting well relative to how those processes typically go. We thought it would take a while to get through the breast cancer process because it was the first time we went through it, and they had to assess the test and understand it. It always takes some time to work through it, and it is going to be variable based on the indication and the evidence. We expect that, and most companies would tell you the same. Operator: The next question comes from William Bonello from Craig-Hallum. Please proceed with your questions, Bill. William Bonello: Hey, guys. Thanks a lot. I think you said to Mark that about 35% of your testing is in reimbursed indications. I know you are not specifically targeting or incenting people to focus on reimbursed versus non-reimbursed indications, but as you look forward over the year, how do you think about that shaking out? Will you be satisfied if we are at a similar mix of indications by the end of the year? Is there any strategy to try to grow the reimbursed indications more aggressively than the others? Christopher M. Hall: I think there is, Bill. We are always trying to push more aggressively into physicians who treat breast or lung cancer. Strategically, that is what we are trying to do. But when you walk into an account and the doctor is an oncologist who sees patients across the board, we do not tell them to send us breast cancer patients and send everything else to a competitor. That is not our talk track. We are there to serve and work with them. In doing so, there will be evidence, and that has been the strategy to date. I think the goal as we go through the year will be to continue sequential growth and push into leading positions in some of these areas, and at the same time continue to drive reimbursement so reimbursement picks up steam across a broadening set of indications and spots within these cancer types. William Bonello: That is helpful. It looks like—based on Tempus numbers—maybe the number of tests not sold by Tempus, but by you, went down sequentially. Can you talk about what you are doing? I thought you were also building up your internal salesforce. How are you thinking about that right now? Christopher M. Hall: We are building side by side with them to continue to build capability, but we do not compete with them in the field, Bill. We work synergistically. Tempus has a deep and comprehensive infrastructure to serve customers and sometimes it is better for customers to work through them. Or we will sell something and Tempus is there. Tempus also has the ability to offer a product snapshot. We do not want to be competing in the field. If it is easier, better, or more conducive to the way the business is built for it to flow through Tempus, that is ultimately the way it will go. I would look at the total number, not how much is coming from each company, because that is not how we are driving it in the field. Aaron L. Tachibana: In terms of total volume, total volume grew by 26% quarter to quarter. Tempus was a little over 80% of the volume. Volume from the internal commercial team did not decrease; it was flattish. Q1 is typically seasonally a little slower than Q2 or Q4, so I would not read anything into that. Some of our internal team is also helping some of the Tempus reps from a marketing perspective. We work together. What we have learned in these relationships over our careers is you do not want reps fighting in the field. We partnered with Tempus for many reasons, including their deep EMR linkages, infrastructure build-out with the nuts and bolts of the business—portals, etc.—and their ability to offer a comprehensive one-stop shop. That has worked really well for us with them. William Bonello: That is really helpful. I appreciate that. Operator: There are no further questions. This concludes the question-and-answer session as well as today's teleconference. Ladies and gentlemen, thank you very much for joining us. You may now disconnect your lines. Goodbye. 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Image source: The Motley Fool. Thursday, Feb. 26, 2026 at 5 p.m. ET Chief Executive Officer and President — Christopher M. Hall Chief Financial and Chief Operating Officer — Aaron L. Tachibana Chief Medical Officer and EVP, R&D — Richard Chen Moderator — Caroline V. Corner Caroline V. Corner: Thank you, operator. Welcome to Personalis, Inc.’s fourth quarter 2025 earnings call. Joining today’s call are Christopher M. Hall, Chief Executive Officer and President; Aaron L. Tachibana, Chief Financial and Chief Operating Officer; and Richard Chen, Chief Medical Officer and EVP, R&D. All statements made on this call that do not relate to matters of historical fact should be considered forward-looking statements within the meaning of U.S. securities laws, including any statements regarding trends and expectations, our financial performance this year and longer term, cash runway and liquidity position, revenue expectations and timing, size and booking of orders, products, services, technology, expansions of clinical volume, reimbursement goals, the outcome and timing of reimbursement decisions, expectations for existing and future collaboration activities, cost expectations, market size, and our market opportunity and business outlook. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our current expectations. We encourage you to review our recent filings, including the risk factors described in our most recent filings. Personalis, Inc. undertakes no obligation to update these statements except as required by applicable law. Our press release with our fourth quarter and full year 2025 results is available on our website, personalis.com, under the Investors section at investors.personalis.com, and includes additional details about our financial results. Our website also has our latest SEC filings, which we encourage you to review. A recording of today’s call will be available on our website by 5 p.m. Pacific Time today. With that, I would like to turn the call over to Chris. Good afternoon, everyone. Christopher M. Hall: Thank you for joining us to discuss our fourth quarter and full year 2025 results. As we stand here at the beginning of 2026, I am incredibly proud of the progress our team made over the past year and the momentum that we have today. 2025 was the year we validated our win in MRD strategy. 2026 is the year we expect to scale. Physicians increasingly trust our NeXT Personal test. Our clinical volumes are building, and our strategic road map is being validated by the medical community. For those listening in for the first time, Personalis, Inc. is a leader in MRD testing services, and we are helping patients, partners, and doctors see more in cancer samples. We operate at the leading edge of MRD sensitivity. Our ultra-sensitive NeXT Personal test is capable of detecting approximately one single fragment of tumor DNA in a million. This is not merely a technical improvement. It is a clinical necessity. This level of sensitivity allows physicians to detect cancer recurrence months ahead of standard imaging and provides them with far greater confidence in a negative result. The clinical market for these types of tests, known as residual disease or MRD tests, is growing rapidly and is expected to mature into a $20-plus billion opportunity. And Personalis, Inc. is exceptionally well positioned to command a significant share of that opportunity. Beyond clinical testing, we remain a leader in supporting biopharma companies through clinical trials and drug development. Our platforms are used by our partner companies to analyze tumors and identify new biomarkers, serving as the foundation for the next generation of personalized therapies. We are the engine that supports researchers as they explore new treatments and allow physicians to personalize treatment for every cancer patient. Now turning to our results, the headline of our performance is our explosive clinical growth and our achievement of two Medicare coverage decisions. In the fourth quarter, we delivered 6,183 clinical tests. This represents a 41% sequential growth over 2025, and a 329% increase year over year. Now to put that in context, in 2024, we delivered just 1,441 tests. Our performance this quarter reflects the strong uptake of NeXT Personal in the marketplace. For the full year of 2025, we delivered more than 16,000 clinical tests, growing 394% over 2024. We achieved $17.3 million of revenue in the fourth quarter, in line with our preliminary announcement last month. Our full year revenue of $69.6 million reflects the transitional period for our top line. As we previously discussed, we have shifted our commercial focus from lower value project work to higher value MRD partnerships, which meant that we experienced a nearly $20 million year over year decline in revenue from Natera, while we set the stage for growth with our MRD engine. The uneven biopharma spending environment we discussed last year has persisted, creating variability in the timing of large project-based translational research. However, it is critical to note that the underlying demand for our strategic MRD offering remains exceptionally strong. We grew our MRD biopharma revenue by nearly 240% over 2024. We believe we are the partner of choice for biopharma companies who need to “see what others cannot.” And we expect penetration of our MRD testing into biopharma companies to be a growth driver for years to come. NeXT Personal has the potential to help these partners fail in early clinical trials sooner, succeed in these trials quicker, and enroll the right patients into their studies. Now, innovation is the heartbeat of Personalis, Inc. Just as we have led the way in pioneering ultra-sensitive MRD detection down to one part per million, we recently announced the next evolution of our NeXT Personal MRD test: our real-time variant tracker report. Cancer changes over time, and it can change in reaction to treatment. The real-time variant tracker allows for the detection of mutations targetable with therapy and the identification of resistance mutations during MRD surveillance with NeXT Personal. As an example, in metastatic HR-positive breast cancer patients, the ESR1 gene can acquire mutations over time that cause resistance to the hormone therapy patients may be receiving. Knowing when these mutations happen allows physicians to adjust therapy proactively. The addition of this opt-in report is intended to give clinicians a dynamic window into how a patient’s cancer is evolving in real time. We announced the early access program for this module for clinical and academic leaders in January. The feedback from early discussions with doctors has been positive, and we believe this provides a powerful new tool for physicians as they seek the best possible outcome for their patients. This new addition to NeXT Personal underlines our continued innovation in MRD and, most importantly, our commitment to innovate for patients. Looking ahead to 2026, we expect total revenue to be in the range of $78 million to $80 million. However, to understand the velocity of the business, you must look at our strategic growth engines—that is, our clinical revenue and our biopharma MRD revenue. We expect our strategic revenue to grow from $14 million in 2025 to a range of $30 million to $32 million in 2026, which would be roughly 121% growth, driven by the expectation that clinical volumes will quadruple. I will now dig deeper into the three pillars of our win in MRD strategy that are driving us forward. The first pillar is clinical adoption. Now, the numbers speak for themselves. Last quarter, we had more than 900 oncologists ordering our test, and we are seeing strong retention among those who adopt NeXT Personal. We are scaling our commercial footprint to onboard more oncologists and drive testing volumes. We now have more than 10 dedicated reps in the field working in close coordination with our partner Tempus. In 2025, we expanded our relationship with Tempus to include colorectal cancer, and our commercial efforts are fully aligned to champion the market shift toward ultra-sensitive MRD testing. We are setting our initial 2026 annual volume guidance at 43,000 to 45,000 tests, which would be about 170% growth year over year. This underscores the tremendous momentum we are seeing and our confidence in our commercial team and our physician partners. Our second pillar is building clinical evidence and the data we need to support continued positive reimbursement decisions. We made massive strides here in 2025. We submitted three dossiers for coverage to Medicare, backed by industry-leading clinical data. In the fourth quarter, we successfully achieved Medicare coverage for breast cancer with favorable pricing, and just a few weeks ago, we received Medicare coverage for lung cancer. These coverage decisions validate the value of our technology in changing patient lives, and I am proud of our team for these accomplishments. Both reimbursement frameworks are for ongoing cancer surveillance for patients. Our tests can be used at multiple time points along the patient’s cancer journey and across many years. We currently have an additional dossier under review with MolDX for the use of NeXT Personal to monitor immunotherapy in metastatic cancer patients. Though exact timing remains subject to MolDX review, we remain confident in our data. Our drive toward coverage has been powered by data and the strong performance of our NeXT Personal test. These last several months, we continued to build upon our foundation to transform Personalis, Inc. from a high-growth testing company into a high-margin, reimbursed clinical powerhouse. The landmark studies with TRACERx, Royal Marsden, and VHIO published in Cell, Annals of Oncology, and Clinical Cancer Research, respectively, are the anchors of our evidence base. The TRACERx lung cancer study is one of the largest, longest, and most rigorous lung cancer MRD studies to date with over 400 patients. In this study, NeXT Personal showed exceptional sensitivity and specificity throughout the patient journey from diagnosis to surveillance, even in lung adenocarcinoma, the most common yet difficult-to-detect subtype. Our Royal Marsden breast cancer study also showed exceptional sensitivity and specificity across HR-positive, HER2-positive, and triple-negative breast cancers with 15-month-plus median lead time ahead of imaging. The VHIO study across 24 cancer types showed that advanced cancer patients receiving immunotherapy who achieved durable molecular clearance had 100% overall survival. The pan-cancer UCSD iPredict study was just published in NPJ Precision Oncology, and it showed that NeXT Personal identified molecular progression a median of 161 days—over five months—before imaging in late-stage cancer patients receiving immunotherapy. Yale University is leading the CHiP study to demonstrate the utility of Personalis, Inc. in breast cancer. Furthermore, our prospective B-STOR1 trial in triple-negative breast cancer is well underway, having now enrolled more than 200 patients. Overall, we are now involved in 35-plus additional studies that are powering the next generation of evidence, and that number just continues to grow. In 2026, we are focused on neoadjuvant breast cancer, colorectal cancer, and submitting for coverage there. As a reminder, we presented data earlier from PREDICT and Scandari. Those studies showed the power of NeXT Personal in neoadjuvant breast cancer, and the British Columbia Cancer study showed the power of the technology in colorectal cancer. The third pillar is leading in the biopharma sector. NIBID, or our NeXT Personal biopharma revenue, grew nearly 240% this past year. Biopharma companies are realizing that to prove the efficacy of their next-generation therapies, they need the most sensitive detection tools available, and this has led to our success in driving their adoption of NeXT Personal. We made tremendous strides this last year with biopharma companies in terms of their adoption of NeXT Personal. As a part of that progress, our business has been evolving toward more prospective work where revenue from a project is spread out over several years, compared with retrospective analysis where an entire study is analyzed in one batch. In 2026, we expect our biopharma revenue to be in the range of $20 million to $21 million. This growth in our core MRD offering is expected to propel our entire biopharma segment, providing a stable and high-value revenue stream that complements our clinical expansion. In closing, Personalis, Inc. is a different company than it was just a year ago. We have proven that we can build world-class clinical evidence and win Medicare coverage, and we have proven that our technology is the gold standard for sensitivity. We are starting 2026 with the winds at our backs and the confidence that we are winning in MRD. Changing the way medicine is practiced is never easy, but progress like we have seen over the past year shows our efforts have been worthwhile. I want to thank our employees and collaborators for a great year, and thank our biopharma partners, physician champions, and their patients for trusting us to provide results that truly matter. Thank you. I will now turn it over to Aaron to dig deeper into our financial results. Aaron L. Tachibana: Thank you, Chris. I will be discussing our fourth quarter and full year 2025 results and then cover guidance for 2026. Total company revenue was $17.3 million for the fourth quarter of 2025. While this is a modest 3% increase year over year compared with $16.8 million for the same period last year, the headline number masks a positive rotation in the quality of our revenue. We are successfully replacing low-margin and sporadic legacy revenue with high-velocity clinical volume. And for the full year 2025, total company revenue was $69.6 million. As Chris mentioned, we navigated a planned $19.5 million decline in revenue from Natera during the year and also the conclusion of the Moderna melanoma trial enrollment, which was a $10 million decline from 2024. Despite these headwinds of nearly $29 million, we delivered 239% growth in biopharma MRD revenue over the prior year. We are no longer dependent on a single legacy contract. We are building a diversified and sustainable high-growth engine which is centered around our win in MRD strategy. Moving to our core revenue, biopharma was $10.9 million in the fourth quarter, compared with $12.2 million for the same period of the prior year. And for the full year 2025, biopharma revenue was $49 million, compared with $51 million for 2024. Both the fourth quarter and the full year declines were due to the expected decrease in the Moderna volume mentioned earlier. For clinical revenue, we recognized $900,000 in the fourth quarter and $2 million for the full year of 2025, compared with $200,000 for the fourth quarter and $800,000 for the full year 2024. The fourth quarter 2025 includes initial breast cancer surveillance revenue, which was covered by Medicare in the fourth quarter. Now I want to address gross margin directly, as it is a critical indicator of our MRD investment strategy. Gross margin was 11% in the fourth quarter and 22.7% for the full year. It is vital to understand that this margin compression is intentional but temporary. We foresee margin dilution to continue into 2026, with the lowest point expected to be in the first quarter of the year until the time when our third reimbursement coverage—which is expected to be IO—begins to convert to revenue. The margin dynamic is driven by the strong growth in volume of NeXT Personal tests ahead of reimbursement revenue. In the fourth quarter alone, unreimbursed costs diluted margins by approximately 1,900 basis points. We are securing the oncologists and the volume now, so when coverage decisions like the recent wins in breast and lung cancer come online, that volume run rate begins to convert to higher margin revenue. We expect to realize benefits from investments to gain market share over the next two to three years as our clinical revenue gets to scale. Operating expenses were $27.2 million in the fourth quarter, compared with $22.7 million for the same period of the prior year. And for the full year 2025, operating expenses were $103.8 million, compared with $95.1 million for the full year 2024. Our clinical business is thriving, and we are investing for future growth. Most of the year-over-year increase was related to commercial expenses for ramping up test volume and also R&D investments for clinical evidence to support reimbursement initiatives and technology development. The fourth quarter R&D expense was $13.1 million, compared with $11.5 million for the same period of the prior year, and SG&A expense was $14.1 million, compared with $11.2 million for the same period of the prior year. Net loss for the fourth quarter was $23.8 million, compared with $16.4 million for the same period of the prior year, and for the full year 2025, net loss was $81.3 million, which was the same as 2024. Now let us review the balance sheet. We finished the fourth quarter with a strong balance sheet, with cash and short-term investments of $240 million and no debt other than some small equipment loans. For the full year of 2025, we used approximately $74 million, just below our $75 million guidance. We operated with discipline throughout the year, and even as revenue fluctuated, we managed more than $12 million in downward spending adjustments to protect our cash runway. Now looking into 2026, we entered the year with a focus on scaling volume. Our guidance reflects reimbursement coverage decisions received to date. Any upside may be realized from faster coverage expansion, payer adoption, faster volume growth for clinical tests, and continued strength in biopharma MRD demand. Additionally, we are guiding annually this year and not providing detailed quarterly ranges due to the variability and seasonality that may occur throughout the year. Our 2026 guidance is as follows. Total company revenue in the range of $78 million to $80 million, and this assumes clinical revenue of $10 million to $11 million specifically from breast and lung cancer surveillance tests recently covered by Medicare. Revenue from pharma tests and services and all other customers in the range of $55 million to $56 million. MRD revenue from these customers is expected to grow rapidly and to be in the range of $20 million to $21 million. Population sequencing plus enterprise customers of approximately $13 million. Gross margin is expected to be in the range of 15% to 20%, with the first quarter potentially being the lowest point of the year. Net loss of approximately $105 million, and we expect our cash usage to be approximately $100 million as we continue to invest in our win in MRD strategy. This estimate reflects our decision to accelerate volume and gain market share. With $240 million of cash on hand, we expect to have the capital to execute our plans. Additionally, our success is opening up additional clinical studies that may be able to influence guidelines, and therefore, we are stepping up investments in this area too. What you are hearing from both Chris and me is unwavering confidence in our ability to execute our win in MRD strategy and plans. We have proven that our ultra-sensitive technology can help change patient care. The market is expanding fast toward the $20-plus billion estimate. We have growing test volume, and we are turning on the reimbursement engine to drive revenue growth this year and beyond. We look forward to updating you during the next conference call in a few months. And with that, I will turn the call back over to the operator to begin the Q&A session. Operator? Christopher M. Hall: Thank you. Operator: We will now be conducting a question-and-answer session. You may press star and then 2. It may be necessary to pick up your handset before pressing the star keys. First question we have is from Subhalaxmi T. Nambi of Guggenheim. Please go ahead. Subhalaxmi T. Nambi: Hey guys, thank you for taking my question. Moving in a short period of time from no reimbursement to now two indications, potentially more here early in 2026. How does that affect the focus of reps internally, externally with Tempus, for clinical and also your eye for still building the pharma business longer term? Yeah. Christopher M. Hall: Thanks, Subbu. Appreciate the question. I think there are a couple ways to think about it. I mean, what we are starting to do is increasingly ungate the business, increasingly to pick up steam. We had the number this year guided 43 to 45, we think represents a good mix between, you know, investing aggressively but at the same time making sure that we manage the cash in a prudent way. And as we go through the year and we continue to make more progress potentially with reimbursement, either getting more decisions—we have got IO in front of us—you know, we are finding ways to collect more, etcetera, you know, we could continue to invest more in the area as we go, and we will play it as we go. But right now, this is the way that we see it. We are continuing to push hard on biopharma companies. I mean those relationships and that growth, that is a big growth driver. And we have spent a significant amount of time over the last two to three years ourselves in growing that business. I think we are having a lot of success there. Subhalaxmi T. Nambi: Thank you for that, Chris. Chris, how has reimbursement changed its activity from clinicians compared to other competitors in the field? Have you seen an acceleration in ordering since the reimbursement announcements? Christopher M. Hall: Yes. I mean, I think overall, what you have with getting reimbursement gives you legitimacy in the conversations. I think being able to say that you passed through the process and the rigors of Medicare gives you legitimacy when you are having discussions with physicians and certainly key opinion leaders. I think there is a wide recognition among people who are in the know that MolDX does a particularly phenomenal job reviewing the evidence and looking at it deeply. And so, yes, I think it does help to reinforce the power of what you are doing when you have got Medicare coverage and does put winds to your back. Subhalaxmi T. Nambi: Super helpful. Thank you so much, guys. Christopher M. Hall: Sure. Operator: The next question we have is from Mark Massaro of BTIG. Please go ahead. Vivian (for Mark Massaro): Hey, guys. This is Vivian on for Mark. Thanks for taking the questions. I just wanted to ask one on the biopharma outlook. So are you seeing pushouts or cancellation of contracts there? And then just at a higher level, you are investing into NeXT Personal MRD and focusing more on the clinical side of your portfolio. So just how material do you think MRD side of biopharma is versus other areas that you have done historically like PCV is longer term? Thanks. Christopher M. Hall: Yeah, thanks. I think we are seeing the sector stabilize right now. We have not seen any pushouts or any big jolts to the business. I mean last year was certainly more challenging. We are not seeing biopharma companies come rushing back in a major way for translational purposes. And we reflected—I think what we see right now is what we have reflected in the guide. I think things are stable right now in that sector overall is what we are seeing. I think we are making progress in MRD. We feel like we have been accelerating our progress there. I mean, those customers are some of the most discriminating buyers. They often do head-to-head trials with the data. And so when you win there and you should see the revenue growth that we are showing in that sector, which I think was nearly 240% year over year, and that came off a particularly strong year the year prior, and we see it continuing to grow this year. That reflects the decision of large companies who do really detailed analysis to choose Personalis, Inc. So we feel like we are well positioned there. But we are investing heavily overall to win this space, both biopharma and also clinical. We have always thought that those two work synergistically, that the evidence that we built in biopharma helps drive the clinical business, and that has been one of the key vectors. As you know, with our relationship with Moderna, we have been focused on supporting them through their journey of their INT program, and that has been a potential driver of our revenue over the out years. Mark Massaro: So much for that color. And then NeXT Personal, can you share any detail on the mix of volumes you expect in 2026 in your reimbursed indications versus your not‑reimbursed indications? I think the volume in that guide you— Christopher M. Hall: Yeah, go ahead and finish the question if you want. Mark Massaro: Okay, sure. I was going to say, I think the volume in rev guide implies that a good chunk of the volumes you are running today are not lung and breast. So just want to understand what indications you are seeing there. Aaron L. Tachibana: Sure. If you just look at the volume at the top level—so the 43,000 to 45,000 tests—roughly 20% or so is coming from breast, 15% to 20% is coming from lung, IO is somewhere between 20% to 25%, CRC is around 20%, and all other is the remaining 20% or so. And it is true. There is a fair amount that we are running for zeros. Right? We are not getting paid. We are only getting covered for breast and lung at this point in time, so it is less than half of the tests. Right? And Medicare is roughly half of the volume, and the fee-for-service is half of that half. And so again, we are running a lot of tests with zeros, but when you are dealing with physicians, you have to accept samples of all different cancer types, and that is what we are doing. We are doing really, really well, and we are finding that our ultra-sensitive test is really sticky with physicians. Now as we want to go forward here to drive more growth, we are going to be adding more physicians, right? We are adding more commercial heft on the Tempus side and internally. We are going to add, you know, another 10 or so reps. We ended the year with 10 reps. We are going to double it at this point in time. That is our current plan. And we could invest even further, depending on how things go here in the first couple of quarters. So things are going really, really well. Christopher M. Hall: And note the guide did not assume IO yet. But that is clearly out there, and we have got a significant amount of revenue. We expanded the relationship this past year with Tempus to include CRC, and we have gotten tremendous uptick and energy around that from doctors. The data that we had at AACR last year showed that if you apply an ultra-sensitive approach onto the testing paradigm, you can get a dramatic leap in performance at landmark, and that really raised a lot of eyebrows. And a significant number of physicians have been starting to adopt in CRC. So we have been investing because that has been historically a strong space, and we have looked at it, and we are making investments and growing that market and our presence in the CRC market, and we have had a lot of progress. And so when Aaron talks about 20% of the samples coming from that group of physicians—that 20% of our samples coming from CRC—that has been a really nice growth engine. And I think over the arc of time, progress we are making there is really going to pay off. Mark Massaro: Perfect. That is super helpful. Thank you. Christopher M. Hall: Absolutely. Thanks, James, for the questions. Operator: The next question we have is from Thomas Flaten of Lake Street. Please go ahead. Thomas Flaten: Hey, good afternoon. Thanks for taking the questions. Hey, Aaron, just a follow-up on your last prepared comment about having the cash to execute your plan. Should I read that as having cash to breakeven, or should I not read that far into it? Aaron L. Tachibana: Yeah. So we have not said anything about cash to breakeven or cash to profitability or anything like that, so that is probably reading a little bit more into it. What we meant by that statement, Thomas, is that we had $240 million cash at the end of the year. We are going to use approximately $100 million in 2026. So you can see just by the simple math, it is two and a half years or so of cash on the balance sheet, which means we have plenty of capital here for the next couple of years to go and drive, to go get market share. And that is the focus right now, really investing for market share. Thomas Flaten: Got it. Got it. Then just a question on the real-time variant tracker. I think, Chris, in your prepared comments, you mentioned that was an opt-in test. So are people ordering it? I mean, of the physicians you went out to with the early access program, are they ordering it? Do they literally have to click a box, or just mechanically, how does that work, and how do you drive the stickiness on that? Christopher M. Hall: Yeah. I mean, it would be—I mean, Rich is with me and can add any color to it, but it is an opt-in module. It is not something that just everybody gets by default. Richard Chen: Yeah, and we are getting geared up for the early access program as we speak. But we expect that physicians will opt in, and a lot of them will, and there has been a lot of excitement about it. One of the feedbacks has been, you know, it is not just being able to quantify the tumor in the blood, but being able to track how the tumor is changing is really one of the key unmet needs in cancer. Starting to superimpose this longitudinally really is, I think, exciting, and I think is the next big innovation in MRD and, quite frankly, underlines our ability to lead the space in innovating. I mean, having started with the ultra-sensitive push that we have been pioneering and now starting to add this I think is a great positioning for where we are and the impact that we are making for patients. Thomas Flaten: Got it. Just one quick last one. Of the clinical volume you are expecting this year, you mentioned that you had 900 oncologists ordering last year. Do you have a sense of how many docs are going to be responsible for that 43,000 to 45,000? Just again, big ranges are fine. I am just curious about depth versus breadth. Christopher M. Hall: Yeah. I mean, we are—I mean, I think we are going to—I mean, this year we will keep focusing driving deeper within existing accounts. Richard Chen: You know, the 900 doctors ordering from us continue to grow, and we will continue to go broader, but we are focusing always on going deeper as is our partner Tempus. Because, I mean, I think people start to use the technology, they see the power of it, and our experience has been that the customers who have been with us longer tend to be the customers that order the most. And so we are focused on continuing to tell the story, underline the value, and driving deeper within existing relationships. Aaron L. Tachibana: That is great. Thank you. Thanks, Thomas. Operator: The next question we have is from Callum Tich Marsh of Morgan Stanley. Please go ahead. Jason (for Callum Tich Marsh): Hi. This is Jason on for Callum. Thanks for taking our questions. So maybe just a question on 2026 guidance. How should we think about the quarter-over-quarter clinical volume growth? You delivered 6,200 clinical tests in the fourth quarter. Is that a good jumping-off point for you guys, from what you guys could grow 24% to 25% quarter over quarter to get to the midpoint of your volume guide? Aaron L. Tachibana: Yes. So we have not given quarterly guidance, but if you take the 6,183 exiting 2025 in the fourth quarter and just maybe linearize it, that probably gets you close. There would be a little bit of seasonality. Second and the fourth quarters are going to be the strongest, where the first and the third will have a little bit of some seasonality. Richard Chen: Yes. I mean, Q1 and Q3 are always, you know, are always slower growth quarters in this kind of an environment versus Q2 and Q4 because of the combination of vacations, holidays, and then Q1 weather, and we have always seen that. But, you know, right now, we are still learning exactly how the seasonality works. But we saw that in our numbers last year, and I think that is—you know, I have spent years in this business—that is pretty common. Jason (for Callum Tich Marsh): Thank you. That was helpful. And then maybe just as a follow-up. So a question on the competitive landscape. There are a lot of new entrants in the MRD space, and there has been some consolidation in the space as well with one of the large MRD players recently making a large acquisition of another large MRD player in December and potentially integrating their IP to enhance the sensitivity of their assay. So could you just share your thoughts on the current competitive landscape and why you think you can gain share against arguably larger players with deeper pockets? Thank you. Richard Chen: Yeah. I mean, I think we have proven this over the last couple of years that we can. We have been focused on pioneering the story. I think a lot of people are trying to either get to or debut ultra products. Our intention is to stay ahead and continue to push forward. We are aligned with one of the biggest partners in the space, Tempus, which is providing the commercial infrastructure, which gives us the ability to move quickly and make progress. And we have gotten traction now with, you know, what we talked about in the script, 30-plus ongoing studies, and that continues to grow. And so we are investing heavily in R&D and driving forward. And so, you know, I think if you look at where we have been, where we are, we have emerged as one of the large players in the space. I think we have stitched together—there are only two or three companies with more than two coverages now in MRD, and we are there. And I think just in terms of test volume, we have emerged as a major player, and we have got momentum, and we are still leaders in data in terms of where it is. So we feel like we are positioned well, and we are continuing to make the investments necessary to keep that position in the industry. Jason (for Callum Tich Marsh): Great. Appreciate the answers, guys. Operator: The next question we have is from William Bonello of Craig-Hallum. Please go ahead. William Bonello: Hey, guys. Thanks a lot. So the volume expectations obviously look great, well above, I think, what people had been expecting. You know, the Tempus comments last night were incredibly bullish. I think what might, you know, surprise people is sort of where you are ending up on the clinical revenue, the gross margin, and the cash flow guide. And you kind of talked about, you know, your philosophy. But maybe you can just give a little bit more color on what is prompting that. I mean, historically, your approach had kind of, as you said, been, you know, to sort of be a bit gated with the sales. I think there were some restrictions to Tempus in terms of kind of what you were encouraging them to do. You know, you knew all along you would be getting reimbursement. What, you know, is it the response you are getting from the field? Or, you know, what is it that has made you decide to sort of put on the gas at this point of time and maybe move away a little bit from that, you know, capital-light strategy you have talked about in the past? Aaron L. Tachibana: Hi, Bill. This is Aaron. Thanks for the question. And so exiting 2024, getting into 2025, we did meter things a little bit, primarily because we had not received any coverage at all just at that point in time. And our balance sheet did not have $240 million back then either. And so those two items there have changed, you know, over the past few months. Having coverage now for breast cancer and lung cancer, and having a healthy price that we are really, really pleased with that is going to give us the right unit economics and help us get our gross margins into the low 60s and show us a path to eventually 70%, but again, at full reimbursement, gives us now the confidence that we should step on the gas and go fast because this market is going to turn into $20-plus to $30-plus billion over time. And so there are only a few players in the market today. There are only two real tumor-informed players that have a really robust test. We are the leader in the ultra-sensitive marketplace. And so it behooves us to go fast right now while the window is open and there is very little competition in the ultra-sensitive space. So we see it as an opportunity to go get market share over the next year or two, and in doing so, we would have to sacrifice a little bit on cash burn as well as on gross margin, primarily because until we get a few more coverages, right, it is going to be dilutive to our gross margins. That makes sense? William Bonello: Yeah. No. It does. And I get the capital and the reimbursement. I was just curious if you were seeing things in the market that were saying, hey, we should really step up as well too. But sounds like it was more the other bits. Aaron L. Tachibana: Yeah. Richard Chen: Bill, I mean, we see strong demand. And, I mean, I think you are hearing that from people talking about it. And, you know, we are here to meet the demands of the physicians. And we are still managing this carefully. I mean, step up from $74 million to $100 million is not like a crazy, you know, a crazy drive forward. We are also investing heavily in R&D, both studies, the evidence development, pushing forward in multiple different ways to accelerate coverage, and, you know, the guide at the current level does not have any more progress in coverage or in reimbursement. You know, we feel like there is a lot of upside there. That will continue to be helpful as we go forward. So, you know, we feel like this is the right spot to guide, I think, hit a good cadence of investment weighed up against expansion, and I think the investment that we do make now will pay dividends in the future. And we could probably ungate and go ever faster, but that would spend even more money. So I think we have hit—we feel like we have hit—the right balance here. William Bonello: Sure. Just a couple follow-ups then. Are—either to the extent that you are allowed to talk about this—have you sort of given Tempus also the green light, maybe not to go full throttle, but do they have a little more freedom in what they can do with sales as well? Richard Chen: Oh, we are focused on going deeper within accounts, and we are focused on—we have added support, some more reps ourselves, and, you know, I feel like we are in a good position, and we work really well right now. And we are driving forward with the idea that, you know, we are building demand for this ultra-sensitive approach and making progress. William Bonello: Okay. That was a good non-answer. The last thing is just cash burn for the year. I think you—just in your comp—there was no cash flow statement. But I think in your comment you said it was about $70 million for this year. Is that right? Aaron L. Tachibana: Yeah. So we used about $74 million, and that was in our prepared remarks, Bill. And we expect to use $100 million in 2026. Richard Chen: Yep. $74 million to $100 million? William Bonello: Okay. Perfect. Thank you so much. Aaron L. Tachibana: Thank you, Bill. Operator: The next question we have is from Michael Stephen Matson of Needham & Co. Please go ahead. Joseph (for Michael Stephen Matson): Hey, Chris, Aaron, Rich, thank you very much for taking our questions. This is Joseph on for Mike. Just a couple here. In your prepared remarks, you called out, I guess, a heightened focus on CRC and neoadjuvant breast moving forward. Just wondering, should we expect maybe a submission at least for reimbursement in 2026 for those two? And I have a couple more after that. Thank you. Richard Chen: Yeah. No. Absolutely. We are not, I mean, we are not sort of laying out exact timelines—everything is dependent upon when we can get publications both submitted with investigators and then accepted because we cannot submit until those things happen. But, yeah, we are driving hard in order to be able to submit for coverage for both of those this year. But there is a lot of variability as to when and how that might happen. So that is not in the guide, if you will. But, I mean, we are moving fast because we see a big demand for use of the technology for those indications for patients. Joseph (for Michael Stephen Matson): Okay. And I guess just building on that, in terms of, I guess, evidence generation, your strategy around evidence generation for additional cancer indications. I am just wondering, is there any difference now in strategy compared to breast and lung in terms of, you know, is the focus or at least part of the focus looking at trying to get into these very large, almost, you know, landmark studies? Now that you have reimbursement in two indications, do you think smaller studies can, you know, can pass the bar for Medicare? You know, you called out 35 clinical trials. So is the idea here now in the quantity of trials rather than, you know, number of patients in the trial? I am just trying to get, you know, some broad color on that. Richard Chen: Yeah, thanks for your question. Yeah, so, you know, we are taking a strategy of working with the top KOLs in the world in establishing some baseline evidence for these indications as we expand out our reimbursement coverage. So we are going to continue—we are going to continue to do that. It has really paid off for us. And so, you know, we debuted very, very strong data in neoadjuvant breast at conferences last year and then also colorectal cancer as well, with top KOLs, and we think that helps us in the Medicare coverage process. So we will continue to do that not only for those indications, but for others. In addition to that, we are also—you know, we have had a lot of inbound interest from KOLs wanting to expand into clinical utility studies, you know, using our assay to make decisions for patients and then show that it actually makes a difference in outcomes. And this is really important for long term, not just for the field, but also getting into guidelines and things like that. So you will begin to see more of that as well. Joseph (for Michael Stephen Matson): That is helpful. Maybe just one last one. You know, to get to that high gross margin target you guys have laid out, obviously reimbursed test volume is the biggest factor there. But I am just wondering, in terms of other things like lab optimization, automation, what have you, I am just wondering, have those steps all been completed? Are there more planned? You know, what inning would you say you guys are in terms of, you know, really getting ready to ramp up reimbursed clinical volume. Aaron L. Tachibana: Yeah. Good question. So we have not said specifically what percent of completion we are on all of our operational aspects or projects. We continue to automate the workflow, which means as we add capacity—all the capacity for this year is installed in place at one point in time, right, because you have to buy equipment, hire people—and that is going to weigh even further on margins if you get too far ahead of your skis. And so we take it one step at a time. But having said that, we are continuing to automate, streamline the workflows, strip out costs from labor or overhead where we possibly can, right, as we go forward to be efficient. And over the last couple of years as we launched product, we have done a good job with getting ready, and so we believe we are in a good position sitting here today. In terms of getting to the upper end of the range on margins, some of that is dependent upon what happens with biopharma as well, because biopharma is a fee-for-service—they pay for every test. In terms of some of the commentary Chris made earlier, we have not baked in IO into our guide, right? So that is not contemplated. Depending upon what happens with reimbursement coverage for other cancer types, that could help us as well in terms of moving toward the upper end or beyond. Joseph (for Michael Stephen Matson): Okay. Great. Yeah. That is all from us, and congrats on the reimbursement wins so far. Aaron L. Tachibana: Thank you. Thank you. Operator: Ladies and gentlemen, just a final reminder, if you would like to ask a question, you may press star and then one. Next question we have is from Tom Stevens of TD Cowen. Please go ahead. Tom Stevens: Question here. Just a quick one on adjuvant reimbursement. So have you outlined any expectations over the next couple of years in breast and lung on the potential for adjuvant reimbursement and kind of what is the pushback from MolDX there? Any color would be helpful. And then secondarily on the neoadjuvant opportunity, I mean, could you lay out broad strokes where pharma is applying them in trial today? Neoadjuvant feels like an easier use case, and maybe some initial market sizing on the neoadjuvant opportunity if you could also spare that. Thank you. Richard Chen: Yeah. Rich is going to grab this one, Tom. Thanks. Yeah. Thanks for the question. Yeah. So adjuvant breast and lung—rest assured, you know, that is something that we are also focused on, and we will be pursuing that just like the other indications that we have been successful with. So we know that is important. With regards to neoadjuvant breast cancer—or neoadjuvant use of the assay in biopharma—yeah, I mean, there is a lot of interest there. I mean, you know, as you know, the oncology pipelines for drugs, there is intense interest in bringing the drugs that are being used in an adjuvant setting and bringing them earlier for patients. So the neoadjuvant setting is one that is really important, and they want to know if these drugs are working. And so a highly sensitive assay like ours can be really, really helpful for that. We actually—you know, if you look at the data that we presented last year in neoadjuvant breast cancer, it just shows the power of an ultra-sensitive approach—that was in triple-negative breast cancer and HER2-positive. And the current state-of-the-art biomarker that is used is something called pCR. And so in those studies, we showed that our assay performed very well compared to pCR, and in some cases better. And so you can imagine since that data has come out, there has been a lot of interest in using an assay like ours to get an early read on their neoadjuvant studies and whether they are being successful or not. Tom Stevens: Great. And then just any initial view on the sizing of the kind of clinical market there and kind of what the potential for that could be long, long term? Richard Chen: Yeah. So, you know, I think we—there is definitely—we have not estimated that. I would say, you know, if you look at the patient journey for MRD, you know, it does start with neoadjuvant, but, you know, it is a relatively small fraction of that entire patient journey. Surveillance, you know, over time, over many years, you know, there is going to be a lot of testing done there, both for breast cancer and early-stage lung cancer. That is why we started there, and we achieved coverage there. And now we are kind of working our way backwards into these other indications. Tom Stevens: Got it. Thanks very much, guys. Aaron L. Tachibana: Thanks, Tom. Operator: Ladies and gentlemen, that concludes the question-and-answer session. And with that, this concludes today’s teleconference. Thank you for joining us. You may now disconnect your lines. Caroline V. Corner: Goodbye. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Personalis (PSNL) Q4 2025 Earnings Call Transcript was originally published by The Motley Fool

Transitioned from lower-value legacy project work to high-value MRD partnerships, resulting in a planned $19.5 million revenue decline from Natera. Achieved explosive clinical volume growth of 329% year-over-year, driven by physician adoption of the NeXT Personal ultrasensitive MRD test. Secured critical Medicare coverage for breast and lung cancer surveillance, providing the regulatory legitimacy needed to scale in the clinical market. Maintained leadership in biopharma MRD revenue, which grew 240% as drug developers prioritize high-sensitivity tools to reduce clinical trial failure rates. Launched the Real-Time Variant Tracker to detect targetable mutations and resistance during surveillance, addressing the unmet need for longitudinal tumor evolution tracking. Leveraged the Tempus partnership to expand commercial reach, specifically targeting colorectal cancer (CRC) where ultrasensitive testing shows significant performance leaps. Attributed gross margin compression to intentional investment, as the company prioritizes capturing market share ahead of full reimbursement conversion. Projecting 2026 strategic revenue growth of 121%, fueled by an expectation that clinical testing volumes will grow approximately 170% year-over-year to a range of 43,000 to 45,000 tests. Anticipating total revenue between $78 million and $80 million, with clinical revenue contributing $10 million to $11 million from recently covered indications. Planning to double the internal sales force to 20 reps while deepening the Tempus collaboration to drive account penetration. Focusing clinical evidence generation on neoadjuvant breast and colorectal cancer to support future Medicare dossier submissions. Expecting cash usage of approximately $100 million in 2026 to accelerate market share acquisition, supported by a $240 million cash balance. Identified a $10 million revenue headwind from the conclusion of enrollment in the Moderna melanoma trial. Noted that current gross margins are diluted by approximately 1,900 basis points due to the high volume of unreimbursed clinical tests. Flagged persistent variability in the biopharma spending environment, which continues to impact the timing of large project-based research. Acknowledged that 2026 guidance does not yet include potential upside from pending immunotherapy (IO) coverage decisions. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management stated that Medicare coverage provides essential legitimacy and 'wins to the back' when engaging with key opinion leaders. The rigorous MolDX review process acts as a quality seal that differentiates Personalis from competitors in the eyes of clinicians. Current volumes are diversified: approximately 20% breast, 15-20% lung, 20-25% IO, and 20% CRC. Management is intentionally running tests for 'zeros' (no payment) in non-covered indications to build physician stickiness and secure market share early. The decision to 'step on the gas' and increase spending was triggered by achieving favorable unit economics through Medicare pricing and a strong $240 million cash position. Management believes the window is open to dominate the ultrasensitive MRD niche before larger competitors can catch up. Biopharma partners are increasingly interested in using NeXT Personal to get an early read on drug efficacy in neoadjuvant settings compared to traditional biomarkers like pCR. While surveillance remains the larger long-term volume driver, neoadjuvant data serves as a critical entry point for the patient journey. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.