INTERPACE BIOSCIENCES, INC. Annual Report - How They Did This Year

I’m putting together a plain-English guide to help you understand how Interpace Biosciences performed this year. Think of this as a "cheat sheet" to help you decide if this company fits your investment goals.

1. What does this company do?

Interpace is a healthcare company that provides molecular diagnostic tests to help doctors diagnose thyroid cancer. Their core revenue comes from two tests: ThyGeNEXT®, which identifies cancer-linked gene mutations, and ThyraMIR®v2, which classifies gene expression. By using these tests together, the company helps patients avoid unnecessary surgeries, which saves the healthcare system significant money.

2. The Big Pivot: Surviving a Major Loss

2025 was a year of survival. The company lost a massive revenue stream when Medicare stopped covering their "PancraGEN®" test in April 2025. Because Medicare accounted for nearly half of that test's volume, the company shut down its entire pancreatic diagnostic business.

To stay afloat, they launched a restructuring plan in mid-2025. This included cutting their workforce by 30% and consolidating laboratory facilities. They are now focused entirely on their thyroid business, aiming to grow within a market that sees over 500,000 thyroid biopsies in the U.S. every year.

3. Financial Health: The "Paper Profit" Trap

It is vital to look past the "profit" headline. On paper, the company reported a $24.6 million profit in 2025, up from $6.7 million in 2024. However, this is misleading.

This profit came from a one-time accounting adjustment—a $21.2 million non-cash tax benefit. If you remove that one-time move, their actual operating profit fell from $8.1 million in 2024 to $4.1 million in 2025.

• Revenue is shrinking: Total revenue fell 18% to $38.7 million due to the exit from the pancreatic diagnostic market.
• The "Real" Cash View: Management uses "Adjusted EBITDA" to track actual cash flow. This dropped from $8.7 million in 2024 to $5.4 million in 2025. This 38% decline shows the thyroid business is generating less cash than it did a year ago.

4. The "Penny Stock" Reality

• The "OTCID" Slide: After being delisted from the Nasdaq in 2021, the stock was downgraded in August 2025 to the "OTC Pink" tier because its market value fell below $5 million. Trading is "thin," with daily volume often under 5,000 shares. This makes it difficult to buy or sell shares without significantly impacting the price.
• Dilution: In February 2026, the company converted preferred stock into 23.4 million common shares. This increased the total share count by 40%, which reduces the ownership percentage of existing shareholders.

5. Major Risks: The Minefield

• The Billing Hurdle: Interpace is an "out-of-network" provider for most insurers. They must negotiate payment for every test, leading to long delays in getting paid and frequent write-offs. If an insurer denies a claim, the company loses the revenue.
• Liquidity: While they paid off their $12 million debt in 2025, they only have $2.4 million in cash as of March 2026. With a monthly "burn rate" of $400,000, they have less than six months of cash left. They are currently seeking additional funding, which will likely involve issuing more shares or taking on high-interest debt, both of which can negatively impact current shareholders.

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Investor Takeaway: Interpace is currently in a high-risk transition phase. While they have successfully cut costs and exited unprofitable lines, their shrinking cash reserves and reliance on out-of-network billing create significant uncertainty. Before considering an investment, weigh whether the potential growth of their thyroid business outweighs the risks of further share dilution and the company's limited financial runway.