10-Q · May 7, 2026
Personalis, Inc. reported disappointing Q1 2026 results with revenue of $15.5 million, reflecting a 25% decrease year-over-year, and an EPS loss of $0.29, slightly worse than the previous year’s loss of $0.18. Key…
Earnings analysis · 10-Q
PSNL earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Personalis delivered strong Q2 top-line growth, with revenue up 30% to $22.357 million, driven by 52% pharma-services growth and a 442% increase in clinical diagnostic revenue after expanded Medicare coverage. However,…
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Personalis delivered strong Q2 top-line growth, with revenue up 30% to $22.357 million, driven by 52% pharma-services growth and a 442% increase in clinical diagnostic revenue after expanded Medicare coverage. However, expenses grew 43% to $55.948 million, producing a $31.683 million net loss, a negative 150.3% operating margin, and six-month operating cash use of $48.248 million. Liquidity of $212.658 million is meaningful, but the pending Tempus acquisition, loss of Natera revenue, customer concentration, and worsening cash burn dominate the risk profile.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.3
What stood out
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Revenue accelerated to $22.4M
Q2 revenue increased 30% year over year to $22.357 million from $17.203 million, and increased $6.885 million sequentially from implied Q1 revenue of $15.472 million. Growth came from pharma testing services, up 52% to $16.789 million, and clinical diagnostics, up 442% to $2.541 million.
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Medicare coverage supported clinical ramp
Clinical revenue growth followed additional Medicare coverage decisions for immunotherapy monitoring and neoadjuvant breast-cancer treatment monitoring in May 2026. Clinical diagnostic revenue reached $2.541 million in Q2, compared with approximately $0.469 million a year earlier.
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Gross margin recovered sequentially
Gross margin improved sequentially to 21.2% in Q2 from 1.8% in Q1, although it remained below the 27.7% reported in Q2 2025. Revenue exceeded cost of revenue by $4.743 million on $22.357 million of sales.
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Liquidity remains substantial
The company ended June with $212.658 million of cash, cash equivalents and short-term investments, including $94.0 million of cash and $118.7 million of short-term investments. Management states this liquidity is sufficient for at least the next 12 months.
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Pharma mix increased materially
The business mix shifted toward pharma and Tempus/Merck-related activity: Merck represented 37% of Q2 revenue and related-party revenue was $8.4 million, versus $1.9 million in Q2 2025.
What to watch
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Losses widened despite revenue growth
Losses and operating leverage deteriorated year over year: Q2 net loss was $31.683 million versus $20.056 million, operating loss was $33.591 million versus $21.804 million, and operating margin fell to negative 150.3% from negative 126.8%. Diluted EPS loss widened to $0.30 from $0.23.
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Merger terms create deal and value risk
The pending Tempus transaction introduces execution and consideration risk. If Tempus' 15-day VWAP is at or below $48.42, the exchange ratio is fixed at 0.3356, so stock consideration can be worth less than $16.25 per Personalis share; a qualifying termination could require a $76.8 million fee.
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Customer and related-party concentration
Revenue concentration remains elevated: Merck, VA MVP and Moderna accounted for 67% of first-half revenue, while Merck alone was 37% of Q2 revenue. Related-party accounts receivable also rose to $7.5 million at June 30 from $2.5 million at year-end.
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Natera revenue loss remains a headwind
Natera enterprise revenue has disappeared: enterprise sales were $0 in Q2 2026 versus $2.315 million in Q2 2025, following expiration of minimum-volume commitments after Q2 2025. The company states it no longer has a commercial relationship with Natera.
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Operating cash burn accelerated
Cash burn increased materially, with six-month operating cash outflow of $48.248 million versus $30.896 million a year earlier. Cash, equivalents and short-term investments declined $27.295 million from $239.953 million at December 31, 2025 to $212.658 million.
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Clinical scaling pressures gross margin
Clinical expansion is currently margin-dilutive: cost of revenue increased 42% to $17.614 million, including a $3.2 million increase in diagnostic test costs, as tests were sold in advance of Medicare reimbursement to gain market share.
Management's outlook
No formal revenue or EPS range was provided while the Tempus merger is pending. Management did quantify planned capital expenditures of $8.0 million to $10.0 million in 2026, rising to $10.0 million to $12.0 million in each of 2027 and 2028, to expand NeXT Personal Dx capacity.
Earlier filings 4
10-K · February 26, 2026
Personalis positions itself as an advanced genomics provider for precision oncology with a partner-centric commercialization strategy (notably an expanded Tempus collaboration) and a focus on MRD and comprehensive tumor…
10-K · February 27, 2025
Personalis positions itself as a partner-centric precision oncology diagnostics company focused on ultra‑sensitive MRD (NeXT Personal/NeXT Personal Dx) and comprehensive tumor profiling (NeXT Dx / ImmunoID NeXT),…
10-Q · November 6, 2024
Personalis reported Q3 revenue of $25,709,000, up 40.9% versus Q3 2023 revenue of $18,247,000, and delivered a notable gross margin expansion to 34.0% (gross profit $8,745,000). Operating loss improved to $(14,382,000)…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.