Predictive Oncology Inc. (POAI) Q1 2025 Earnings Summary

Executive Summary

Revenue fell to $0.11M as POAI completed a tumor-specific 3D model; management cut OpEx sharply and ended Q1 with $3.09M in cash, but going‑concern risk remains without additional capital .
Results missed the lone S&P Global revenue consensus by a wide margin ($0.11M vs $1.50M; 1 estimate), while no EPS consensus was available; the model likely lagged structural changes after divesting Skyline/STREAMWAY and narrowing to a single operating segment* .
Strategic narrative shifted: LOI with Renovaro terminated April 3 and Renovaro filed suit May 8; POAI sold Skyline assets to DeRoyal, launched European ChemoFx plans, and expanded AI-led drug repurposing initiatives .
Potential stock catalysts: new BD partnerships leveraging drug-repurposing registry, ChemoFx European launch, and clarity on Nasdaq equity compliance and Renovaro litigation trajectory .

What Went Well and What Went Wrong

What Went Well
- AI/ML drug repurposing advances: registry of abandoned drugs identified promising candidates (Afuresertib, Alisertib, Entinosta) for new tumor types; management sees efficient pipeline-expansion partnering potential .
- Cost discipline: General & Administrative (-$0.50M YoY), R&D/Operations (-$0.11M YoY), and Sales & Marketing (-$0.61M YoY) drove lower cash burn; operating cash use fell to $(0.99)M vs $(2.71)M in Q1’24 .
- Capital and focus: closed sale of Skyline assets to DeRoyal to sharpen core AI focus and reduce ongoing expenses; ended Q1 with $3.09M cash vs $0.61M at YE’24 .
What Went Wrong
- Revenue base is de minimis: $0.11M (continuing) and concentrated (93% from one customer); this is far below S&P consensus and underscores heavy reliance on BD execution* .
- Corporate uncertainty: Renovaro LOI terminated April 3; Renovaro sued May 8; Nasdaq equity deficiency risk disclosed; these issues could distract management and impact capital access .
- Going‑concern risk persists: management does not expect sufficient operating revenue near term and needs significant additional capital; failure to secure funding could force activity limits or worse .

Financial Results

Metric	Q1 2024	Q3 2024	Q1 2025
Revenue ($USD)	$4,858	$345,686	$110,310
Gross Profit ($USD)	$(17,575)	$148,767	$65,192
Gross Margin %	(361.8%)	43.0%	59.1%
Total Operating Expenses ($USD)	$3,564,459	$2,462,743	$2,352,239
Operating Loss ($USD)	$(3,582,034)	$(2,313,976)	$(2,287,047)
Loss from Continuing Ops ($USD)	$(3,564,105)	$(2,283,413)	$(2,285,416)
Diluted EPS – Continuing Ops ($)	$(0.88)	$(0.36)	$(0.32)

Consensus vs. Reported (Q1 2025)

Metric	Consensus	# of Estimates	Reported	Beat/Miss
Revenue ($USD)	$1,500,000*	1*	$110,310	Miss
EPS (Primary)	N/A*	N/A*	$(0.32) (cont.)	N/A

KPIs and Balance Sheet

KPI	Q4 2024 (As of 12/31/24)	Q1 2025 (As of 3/31/25)
Cash & Cash Equivalents ($USD)	$611,822	$3,087,588
Contract Liabilities ($USD)	$224,076	$151,576
Net Cash Used in Ops – Continuing ($USD, quarter)	$(2,709,688) (Q1’24)	$(985,840)
Customer Concentration	77% of cont. revenue from single customer in Q1’24	93% of cont. revenue; 56% of A/R from same customer

Notes: *Values retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue, EPS, Margins, OpEx, Tax, Segment	FY/Q2 2025	None issued	None issued	N/A

Company provided qualitative updates (focus on AI drug discovery, ChemoFx EU launch, Skyline sale) but no quantitative guidance .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
AI drug repurposing / biomarker discovery	Entered biomarker discovery; strategic alternatives review	Registry of abandoned drugs; identified promising candidates (Afuresertib, Alisertib, Entinosta); early results show accelerated predictions	Strengthening execution
ChemoFx assay	Not highlighted in Q3 PR	Planned European launch; expanded U.S. availability	New commercialization vector
Corporate M&A	Board exploring alternatives (Q3’24)	Renovaro LOI terminated Apr 3; Renovaro filed suit May 8	From potential merger to litigation
Cost structure/cash runway	Cost savings to cut ~20% cash burn run rate	G&A/R&D/S&M down YoY; operating cash burn improved	Improving, but still negative
Portfolio focus	STREAMWAY contributed majority of FY’24 revenue	Sold Skyline/STREAMWAY to DeRoyal; now one AI-focused segment	Simplification; focus on core
Nasdaq compliance/legal	Equity deficiency notice (11/20/24)	Ongoing equity compliance work; Renovaro litigation risk disclosed	Elevated governance risk

Note: No Q1 2025 earnings call transcript was found; POAI did not host a call or no transcript is available in the document set [No results for Q1’25 transcript].

Management Commentary

“We meaningfully expanded the potential application of our [AI/ML] platform… to successfully identify abandoned or discontinued drugs that show promising activity in new cancer types.” — Raymond Vennare, CEO .
“We… announced the launch of our validated flagship live cell ChemoFx drug response assay in Europe and expanded availability in the United States… a significant component of our growth strategy.” — Raymond Vennare, CEO .
“With the recent sale of Skyline Medical assets… we have sharpened our focus on our core AI-driven drug and biomarker discovery capabilities while reducing our cash usage.” — Raymond Vennare, CEO .
“We do not expect to generate sufficient operating revenue to sustain operations in the near term… substantial doubt exists about [our] ability to continue as a going concern within one year.” — 10‑Q MD&A .

Q&A Highlights

No Q1 2025 earnings call transcript was available; in Q3 2024 the company elected not to host a call during the strategic alternatives process . Q1 2025 updates were delivered via press releases and 10‑Q .

Estimates Context

Revenue sharply missed S&P Global consensus ($0.11M reported vs $1.50M consensus; 1 estimate)*, reflecting the narrow continuing-ops revenue base post‑portfolio actions and timing of 3D model deliveries .
No EPS consensus was available; reported diluted EPS from continuing operations was $(0.32) .
Implications: Street models (where present) may need to reset for smaller, services-oriented, milestone‑driven revenue, higher customer concentration, and the discontinuation of Eagan/STREAMWAY within continuing operations* .