Personalis, Inc. (PSNL) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

of the prior year. It's 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 but begins to improve when we receive reimbursement coverage for I.O. unreimbursed test costs, diluted 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 gets to scale. 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 are forging 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 we are investing in our technology like our variant tracker feature in order to maintain and increase our ultra-sensitive leadership position. The 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 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's 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 in...