Personalis, Inc. (PSNL) Q1 2026 Earnings Call

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WEBVTT 00:00:00.031 -- 00:00:02.634 of the prior year. 00:00:02.634 -- 00:00:09.484 It's vital to understand that this margin compression is both intentional and temporary. 00:00:09.484 -- 00:00:15.131 We foresee this margin dilution to continue throughout 2026 with the lowest point 00:00:15.131 -- 00:00:20.138 expected to be in the first two quarters of the year but begins to improve when 00:00:20.138 -- 00:00:24.081 we receive reimbursement coverage for I.O. 00:00:35.536 -- 00:00:39.799 unreimbursed test costs, diluted 00:00:48.235 -- 00:00:54.704 lung cancer come online, that volume run rate converts to higher margin revenue. 00:00:54.704 -- 00:00:58.570 We expect to realize the benefits from investments 00:00:58.570 -- 00:01:03.557 to gain market share over the next two to three years as our clinical revenue gets to 00:01:03.557 -- 00:01:05.557 scale. 00:01:05.725 -- 00:01:11.673 Operating expenses were $32.4 million in the first quarter, compared to $24.9 00:01:11.673 -- 00:01:15.698 million for the same period of the prior year. 00:01:15.698 -- 00:01:21.246 Our expense base is increasing as we are forging ahead with key investments 00:01:21.246 -- 00:01:23.889 in order to win market share. 00:01:23.889 -- 00:01:29.157 We are investing in commercial resources to drive volume, investing in new and existing 00:01:29.157 -- 00:01:31.940 studies to support reimbursement, 00:01:31.940 -- 00:01:37.091 and we are investing in our technology like our variant tracker feature in order to 00:01:37.091 -- 00:01:43.435 maintain and increase our ultra-sensitive leadership position. 00:01:43.657 -- 00:01:48.702 The first quarter R&D expense was $14.5 million compared with $12.6 00:01:48.702 -- 00:01:51.725 million for the same period of the prior year. 00:01:51.725 -- 00:01:56...