iSpecimen Inc.

Revenue declined 79.2% to $1.9 million in FY2025 from $9.3 million in FY2024, primarily due to decreases in customers' orders and procurement, as noted in Management's Discussion. Supply chain constraints further delayed fulfillment, particularly as the company shifted purchase orders originally slated for Ukraine and Russia suppliers to alternative network sites, causing timing disruptions in specimen collections.

Gross profit fell sharply 99.4% to $24.1 thousand, yielding a minimal 1.2% margin versus prior healthy levels. This erosion reflects the fixed nature of certain procurement and handling costs against drastically lower volumes, amplifying per-unit expenses and highlighting operational leverage challenges in a low-revenue environment.

Despite topline contraction, operating loss narrowed 29.5% to -$9.0 million from -$12.7 million, as expense reductions outpaced revenue decline. Management's focus on cost discipline preserved value amid revenue headwinds, though operating margin remained deeply negative at -465%, underscoring the need for scale to achieve breakeven.

Net loss improved 16.1% to -$10.5 million, with diluted EPS advancing 87.0% to -$2.28 from -$17.58. This progress stems from controlled operating costs offsetting other expense dynamics, providing a foundation for future recovery if revenue trajectories improve.

Cash from operations used -$4.2 million, less than half the prior year's -$8.3 million burn, with minimal $454 in capital expenditures. This efficiency supports management's strategy to deploy existing cash for supply network expansion, marketing, sales growth, and working capital. However, ongoing losses continue adversely affecting stockholders' equity and working capital.

Going concern substantial doubt persists due to recurring losses, with mitigation plans centering on revenue enhancement projects, deferred initiatives, and targeted expense eliminations. Supply chain vulnerabilities remain a risk to timely order fulfillment, while costs not meeting capitalization criteria—except third-party sequencer payments—are expensed immediately, constraining balance sheet flexibility.