0001628280-26-031263
SEC filingRevenue declined 4.9% to $83.7M, while operating loss improved 34.1% to -$18.4M, driven by lower amortization and cost management.
Revenue for the first quarter of 2026 was $83.7 million, a decrease of 4.9% compared to $88.0 million in the same period last year. The decline was primarily driven by lower dermatologic test volumes, particularly for DecisionDx-SCC, following the loss of Medicare coverage. This was partially offset by growth in non-dermatologic tests, including TissueCypher, which benefited from increased sales force efforts. The mix shift toward higher-margin non-dermatologic tests supported gross margin, which remained strong at 75.5%.
Net cash used in operating activities was -$22.1 million, compared to -$6.0 million in the prior year, driven by higher bonus payments and unfavorable working capital timing. Capital expenditures increased to $12.5 million from $4.7 million, primarily for lab expansion and new headquarters, resulting in free cash flow of -$34.6 million. The company continues to rely on its cash and marketable securities to fund operations and growth investments.
Management expects cost of sales to increase as the company scales operations and launches new tests. Stock-based compensation will remain material. The loss of Medicare coverage for DecisionDx-SCC creates uncertainty for dermatologic revenue, while non-dermatologic growth, driven by TissueCypher, may offset some of the decline. The company's liquidity position remains adequate, but continued operating losses and capital expenditures may require additional financing.