Executive Summary

Q3 2025 reflected the first full quarter as a thyroid-only diagnostics company: Net revenue was $8.76M, down 29% YoY versus reported Q3 2024 (due to PancraGEN discontinuation), but management highlighted thyroid revenue of $8.8M up 22% YoY on a pro forma basis and record test volumes; operating income was $1.15M and income from continuing operations was $1.01M .
Collections and cash conversion improved: cash collections were $10.0M; CFO cited a 5% increase in average revenue per test and a 22% reduction in DSO, supported by reimbursement improvements and enhanced collection initiatives .
Sequentially, profitability recovered from Q2 (Q2 operating loss $(0.47)M; Q3 operating income $1.15M) as PancraGEN wind-down charges rolled off and thyroid volumes remained strong .
No EPS/Revenue consensus was available from S&P Global for Q3, so a beat/miss assessment to Street estimates is not possible. Estimates unavailable via S&P Global.
Management continues to emphasize AI and automation investments to drive lab efficiency and sustained profitability as a thyroid-only business, while using cash to pay down debt; liabilities and stockholders’ deficit improved versus year-end 2024 .

What Went Well and What Went Wrong

What Went Well

Record thyroid performance and cash collections: “record thyroid test volumes, revenue, and cash collections” with thyroid revenue up 22% YoY pro forma and test volume up 12% YoY; Q3 collections were $10.0M .
Better pricing and working capital: CFO cited “a 5% increase in average revenue per test and a 22% reduction in days sales outstanding,” reflecting reimbursement and collections execution .
Return to profitability post-transition: Q3 operating income was $1.15M and income from continuing operations was $1.01M, rebounding from Q2’s operating loss as the company completed its transition to thyroid-only testing .

What Went Wrong

YoY revenue down on reported basis: total net revenue of $8.76M declined 29% YoY versus reported Q3 2024 ($12.30M) due to the loss of PancraGEN reimbursement/discontinuation (May 2025) .
Margin and EBITDA compression YoY: gross margin was 62% vs 64% in Q3 2024 and adjusted EBITDA was $1.26M vs $2.47M in the prior year, reflecting the portfolio shift and cost structure absorption .
Prior quarter disruption: Q2 included $1.2M of one-time expenses related to PancraGEN reimbursement loss, which weighed on Q2 profitability and created volatility in sequential comparisons .

Financial Results

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$12.295	$11.515	$9.232	$8.756
Gross Profit ($USD Millions)	$7.902	$7.370	$5.276	$5.439
Gross Margin %	64%	64%	57%	62%
Operating Income ($USD Millions)	$2.301	$1.829	$(0.468)	$1.145
Income from Continuing Operations ($USD Millions)	$1.758	$1.754	$(0.533)	$1.011
Adjusted EBITDA ($USD Millions)	$2.472	$2.096	$0.365	$1.263
Net Income ($USD Millions)	$1.676	$1.647	$(0.640)	$0.911
Diluted EPS (GAAP)	$0.38	$0.06	$(0.14)	$0.03
Cash Collections ($USD Millions)	$11.2 (prior-year Q3)	$11.3	$10.8	$10.0

Segment/KPI detail

Thyroid revenue ($USD Millions): Q1 $8.0 , Q2 $8.7 , Q3 $8.8
Thyroid test volume growth: Q1 +16% YoY ; Q2 +16% YoY ; Q3 +12% YoY
Pricing/collections metrics: Q3 average revenue per test +5%, DSO −22%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	~ $38M (initiated in Q1 2025)	No update disclosed in Q3 press release	Maintained (no update)

Note: Q2 2025 press release did not provide an explicit update to FY revenue guidance .

Earnings Call Themes & Trends

Note: No Q3 2025 earnings call transcript was located as of this report; themes reflect management commentary in the 8-K/press releases.

Topic	Previous Mentions (Q1 2025 and Q2 2025)	Current Period (Q3 2025)	Trend
Business focus/portfolio	Transition to thyroid-only business anticipated due to PancraGEN reimbursement loss; cited double-digit thyroid growth in Q1; Q2 noted wind-down and one-time charges	First full quarter as a thyroid-only diagnostics company; record thyroid volumes/revenue	Consolidation complete; focus sharpened
Reimbursement/collections	Emphasis on reimbursement execution and collections; record Q1 collections $11.3M	Avg revenue/test +5%, DSO −22%; Q3 collections $10.0M	Improving pricing and cash conversion
AI/automation	Investments to enhance lab efficiency highlighted in Q1 and Q2	Continued AI/automation investments to drive efficiency and profitability	Sustained execution
Profitability	Q1 operating income $1.83M; Q2 operating loss $(0.47)M on one-time charges	Q3 operating income $1.15M; continuing ops income $1.01M	Profitability re-established
PancraGEN discontinuation	Reimbursement loss and exit communicated; impacts Q2 YoY comps and one-time costs	Q3 YoY decline on reported basis vs Q3’24; pro forma thyroid growth emphasized	Lapped with pro forma lens

Management Commentary

“The Company delivered record thyroid test volumes, revenue, and cash collections during the quarter, driven by higher testing volume activity and enhanced collection initiatives.” – CFO Chris McCarthy .
“Our continued focus on reimbursement improvements resulted in a 5% increase in average revenue per test and a 22% reduction in days sales outstanding.” – CFO Chris McCarthy .
“The third quarter represented the first full quarter of the Company being a Thyroid-only diagnostics testing company.” – CEO Tom Burnell .
“Our strong cash position supported strategic investments in laboratory operational efficiency, leveraging AI and automation as part of our digital strategy... and allowed us to strengthen our balance sheet through additional principal payments on our long-term debt.” – CFO Chris McCarthy .

Q&A Highlights

No Q3 2025 earnings call transcript was available; no public Q&A details to summarize as of this report. We will update if a transcript is published [ListDocuments showed no transcript; Internet sources focused on press release] .

Estimates Context

Wall Street consensus (S&P Global) for Q3 2025 EPS and revenue was not available; S&P Global returned no consensus values for EPS or revenue, only the actual revenue figure ($8.756M) already reported by the company. Values retrieved from S&P Global.
Without consensus, we cannot assess a beat/miss; future updates will be provided if coverage initiates or estimates are published.

Key Takeaways for Investors

Core thyroid franchise is scaling with record volume/revenue and improving pricing/collections, underscoring the thesis post-portfolio simplification to thyroid-only testing .
Profitability has re-emerged after Q2’s one-time PancraGEN wind-down costs; Q3 delivered $1.15M operating income and $1.01M income from continuing operations .
Operational improvements (AI/automation, reimbursement processes) are translating into better unit economics (avg revenue/test +5%) and working capital efficiency (DSO −22%) .
Reported YoY declines versus Q3 2024 reflect the exited PancraGEN business; pro forma views highlight underlying thyroid growth (+22% YoY) .
Balance sheet trending better: total liabilities fell to $12.33M and stockholders’ deficit improved to $(0.30)M vs year-end 2024, aided by principal repayments .
No guidance update in Q3; prior FY25 revenue guide (~$38M) was initiated in Q1—monitor for any 2025/2026 framework as thyroid-only run-rate stabilizes .
With no Street consensus available, near-term stock reaction may hinge on qualitative drivers (record thyroid KPIs, renewed profitability, cash conversion) and any forthcoming guidance updates .

Additional Supporting Data (Balance Sheet Snapshot)

Metric ($USD Thousands)	Dec 31, 2024	Jun 30, 2025	Sep 30, 2025
Cash & Equivalents	$1,461	$502	$1,423
Total Current Assets	$11,773	$9,504	$9,130
Total Liabilities	$17,009	$13,548	$12,334
Stockholders’ Deficit	$(2,217)	$(1,213)	$(298)

Sources

Q3 2025 8-K and Exhibit 99.1 press release: revenue, margins, income, adjusted EBITDA, EPS, cash collections, and KPI commentary .
Q2 2025 8-K and Exhibit 99.1 press release: Q2 financials and PancraGEN-related one-time charges .
Q1 2025 8-K and Exhibit 99.1 press release: Q1 financials and initial FY 2025 revenue guidance (~$38M) .
Scientific/other Q3-period press release (ATA posters) for platform validation context .
Company IR/website confirming availability of the Q3 press release and filings .

INTERPACE BIOSCIENCES, INC. (IDXG)·Q3 2025 Earnings Summary