0001628280-25-056321
SEC filingRevenue grew 95% YoY to $209.1M in 9M 2025, driven by 52% volume growth and 30% ASP increase, achieving net income positive of $1.5M.
For the nine months ended September 30, 2025, revenue increased 94.5% to $209.1 million compared to $107.5 million in the same period a year ago. This growth was driven by a 52% increase in delivered test volume (440,500 vs. 289,900) and a 30% increase in overall average selling price (ASP). Gross profit rose 153.4% to $139.9 million, with gross margin expanding to 67% from 51%. The margin improvement was primarily attributable to higher ASP (80% contribution) and lower cost per test (20% contribution). Operating income improved to $5.7 million from a loss of $35.5 million, reflecting operating leverage. Net income reached $1.5 million compared to a net loss of $30.1 million in the prior year, with non-GAAP operating income of $15.3 million. The company also recorded $8.7 million in revenue adjustments due to higher-than-expected cash collections.
Prenatal tests (UNITY) contributed approximately 91% of total revenue in the nine months ended September 30, 2025, down from 96% in the full year 2024, as the oncology segment grew. Oncology tests (Northstar Select and Northstar Response) represented 8% of revenue versus 2% in 2024, benefiting from expanded sales force and new Medicare reimbursement. Clinical trial support and other services contributed 1% (vs. 2% in 2024). The test volume growth was driven by sales force expansion across both product lines, while ASP increases were supported by new payor contracts, a proprietary PLA code, and higher attachment rates of 22q and RhD tests.
Management expects revenue to continue increasing through expanded sales efforts, new product introductions, and additional payor contracts. The company is investing in a new 220,000 square foot facility in Austin, Texas, expected to be operational in 2028, to triple testing capacity. They also anticipate maintaining significant R&D investment for product innovation while leveraging automation and AI to improve operational efficiency. The recent IPO netted $286.4 million, providing substantial liquidity to fund growth and potential acquisitions. The company maintains compliance with debt covenants and has a $30 million tranche draw required by March 2026 upon meeting revenue and gross margin thresholds.
As of September 30, 2025, BillionToOne held $195.2 million in cash and cash equivalents, a slight increase from $191.5 million at year-end 2024. However, the company reported a shareholders' deficit of $(239.5) million, driven by accumulated deficit of $(280.7) million and redeemable convertible preferred stock of $419.4 million classified outside equity. Total assets were $327.5 million, including $17.4 million in inventories and $48.0 million in operating lease right-of-use assets. Long-term debt stood at $55.0 million under the Oberland term loan, measured at fair value (Level 3), with changes in fair value recognized in earnings. The company also had $1.2 million in total finance lease liabilities. Working capital was $210.9 million, but negative equity indicates high leverage.
The company disclosed remaining performance obligations (RPO) of approximately $4.7 million beyond one year under its Johnson & Johnson partnerships, including a companion diagnostic agreement signed in July 2025. Additionally, operating lease liabilities totaled $51.9 million ($4.9 million current, $47.0 million non-current). The Oberland note purchase agreement requires minimum trailing six-month net revenue thresholds (e.g., $75.8 million for Q3 2025) and gross margin of at least 30%. The third tranche of $30.0 million must be issued by March 2026 upon meeting revenue and margin thresholds. No other material purchase commitments were disclosed.
BillionToOne did not repurchase shares or pay dividends in the nine months ended September 30, 2025. The company's sole debt activity was the fair value adjustment on the Oberland term loan, which increased the carrying value by $3.5 million (from $51.5 million to $55.0 million) due to changes in assumptions. No new borrowings or repayments occurred during the period. Capital expenditures totaled $7.3 million, primarily for property and equipment, representing 3.5% of revenue. The company also paid $0.5 million in revenue participation payments to Oberland, treated as interest. Subsequent to quarter end, the company completed an IPO raising $286.4 million net proceeds, which will improve equity and liquidity.
The company operates as a single reportable segment, but provides disaggregated revenue by service line. For Q3 2025, prenatal testing contributed $74.1 million (88.7% of total revenue), oncology testing $8.7 million (10.4%), and clinical trial support & other services $0.8 million (0.9%). Year-over-year growth was strongest in oncology (664%) driven by new partnership, while prenatal grew 102%. All revenue was generated in the United States. The company does not disclose segment operating income or margins, as the CODM uses company-wide net income as the measure of profitability.