Predictive Oncology Inc. (POAI) Q3 2025 Earnings Summary

Executive Summary

Q3 2025 reported immaterial revenue ($3,618) and a severe net loss driven by a $74.4M non‑cash derivative liability tied to the new ATH token treasury strategy; net loss per share was $(107.25) versus $(7.26) a year ago, and revenue was flat YoY .
Management pivoted the business to a “Strategic Compute Reserve” on Aethir’s ATH network; as of Nov 10, POAI held ~5.70B ATH (3.7B locked; 2.0B unlocked) with an estimated market value of ~$152.8M at $0.0268 per ATH .
Cash used in operations improved YTD (nine months) to $5.9M vs $8.0M in the prior year; implied monthly burn averaged ~$0.656M, reflecting cost actions despite minimal revenue generation .
Catalyst set-up centers on monetizing GPUs via ATH (staking, leasing, token rotation) with near-term enterprise pipeline opportunities and a potential refreshed brand/ticker to align with the strategic focus on AI infrastructure .

What Went Well and What Went Wrong

What Went Well

Strategic asset accumulation and business model pivot: “We have embarked on a digital asset treasury strategy… Aethir operates the world’s largest decentralized GPU network, offering enterprise-grade AI at a significantly lower cost” (CEO) .
ATH holdings and monetization plan: 5.70B ATH held with a plan to drive “high single-digit yield” in FY26 via staking, GPU leasing, and token rotation (CIO) .
Operational cash burn improving: Operating cash outflow reduced by 26% YTD vs prior year; implied monthly burn ~$0.656M (CFO) .

What Went Wrong

Massive GAAP loss due to derivative liability: $(74.4)M non‑cash loss on derivative instruments tied to the crypto SPA drove net loss to $(77.7)M; EPS collapsed to $(107.25) from $(7.26) YoY .
Revenue remains de minimis and flat: $3,618 in Q3 vs $3,907 last year; product commercialization remains limited .
Expense pressure: G&A rose to $2.6M (+$1.1M YoY) on legal and stock-based comp; S&M increased with digital marketing fees despite lower headcount .

Financial Results

P&L and Margins vs Prior Periods and YoY

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD)	$3,907	$110,310	$2,682	$3,618
Gross Profit ($USD)	$(7,270)	$65,192	$(15,539)	$(4,738)
Gross Margin (%)	−186.1%	59.1%	−579.4%	−131.0%
Operating (Loss) ($USD)	$(2,160,444)	$(2,287,047)	$(2,659,868)	$(3,279,864)
Net (Loss) ($USD)	$(3,094,690)	$(2,442,873)	$(2,070,462)	$(77,651,843)
EPS (Basic & Diluted)	$(7.26)	$(0.34)	$(0.23)	$(107.25)

Note: Q3 2025 net loss and EPS reflect a $(74.366)M non‑cash loss on derivative instruments .

Operating Expense Breakdown

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
G&A ($USD)	$1,545,271	$1,828,200	$1,875,655	$2,613,075
Operations, R&D ($USD)	$535,236	$520,406	$499,715	$528,557
Sales & Marketing ($USD)	$72,667	$3,633	$268,959	$133,494

Balance Sheet Highlights

Metric	Dec 31, 2024	Jun 30, 2025	Sep 30, 2025
Cash & Equivalents ($USD)	$611,822	$506,078	$181,667
Total Assets ($USD)	$4,972,517	$3,435,366	$3,137,298
Derivative Liability ($USD)	–	–	$74,366,000
Stockholders’ Deficit ($USD)	$(202,610)	$(1,653,400)	$(77,427,922)

KPIs and Cash Flow

KPI	Q1 2025	Q2 2025 YTD	Q3 2025 YTD
Net Cash Used in Ops ($USD)	$985,840	$4,280,632	$5,900,000
Implied Monthly Burn ($USD)	–	–	~$656,000 (CFO calc)
ATH Holdings (Bn Tokens)	–	–	5.70 (3.7 locked; 2.0 unlocked)

Cross-reference note: The CFO’s oral remark referenced “$3.6 million” revenue; the filed release shows $3,618 (i.e., ~$3.6 thousand). We anchor to the filed figures .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
ATH Yield Target	FY 2026	None	“High single-digit yield” on ATH via staking/leasing/rotation	New
Brand/Ticker Refresh	Near-term	None	Management “anticipates a near-term refreshed brand and stock ticker”	New
Operating Cash Burn Disclosure	FY 2025	None	Monthly burn disclosed at ~$656k	New

No formal revenue, margin, OpEx, tax, or dividend guidance was provided for Q3 2025 .

Earnings Call Themes & Trends

Topic	Q1 2025 (Prev‑2)	Q2 2025 (Prev‑1)	Q3 2025 (Current)	Trend
AI/Tech Initiatives	Drug repurposing with AI; ChemoFx EU launch plan	ChemoFx expansion; Labcorp 3D liver toxicity models	Strategic Compute Reserve on Aethir; ATH-driven GPU monetization	Pivot from drug discovery focus to AI infrastructure monetization
Supply Chain/Compute Access	Not highlighted	Not highlighted	GPU scarcity; 40–50 week lead times; decentralized network access	Rising emphasis on compute constraints and Aethir solution
Financing/Capital Structure	$3.1M proceeds; asset sale to DeRoyal	Yorkville $10M standby equity facility	$50.8M cash + $292.7M ATH via private placements; derivative accounting	Aggressive recapitalization and crypto treasury
Product/Commercialization	ChemoFx; biobank leverage	ChemoFx market expansion; 3D kits softness	Enterprise GPU pipeline and monetization plan	Shift to infrastructure revenue opportunities
Regulatory/Legal	Not highlighted	Not highlighted	Shareholder approval for pre-funded warrants and evolving crypto regs noted	Higher regulatory sensitivity tied to digital assets

Management Commentary

CEO on strategic pivot: “We have embarked on a digital asset treasury strategy… Aethir operates the world’s largest decentralized GPU network… democratization of AI broadly” .
CFO on derivative accounting: “US GAAP requires the [crypto SPA] contract to be accounted for as a derivative liability at fair value through earnings… the financial statements as of September 30, 2025 are not indicative of the company’s underlying cash position or financial performance” .
CIO on monetization model: “Passive ATH staking… active staking for cloud hosts… GPU leasing utilizing our ATH… other token rotation… target… high single-digit yield… FY 2026” .
Aethir executive on market context: “Demand for compute exceeds supply by more than 10x… Predictive Oncology anticipates converting ATH to fiat revenue by renting GPUs” .

Q&A Highlights

Format: Management delivered prepared remarks; no analyst Q&A was captured in the transcript .
Clarifications provided: Detailed explanation of crypto SPA derivative accounting and non‑cash loss; monthly burn disclosure; monetization steps (staking, renting GPUs, token rotation) and near-term pipeline ranges .
Guidance tone: Strategic and confident about infrastructure monetization; no numeric revenue/margin guidance issued .

Estimates Context

Wall Street consensus via S&P Global was unavailable for Q3 2025 EPS and revenue; no consensus values were returned. Actual revenue was $3,618; EPS was $(107.25) .
Implication: With no published consensus, estimate-based “beat/miss” cannot be determined; future coverage may increase post-strategic pivot. Values retrieved from S&P Global.*

Key Takeaways for Investors

The quarter’s reported loss is dominated by a non‑cash derivative charge from the crypto SPA; underlying cash burn improved, but recurring revenue remains minimal .
The ATH-based Strategic Compute Reserve is the new core strategy, with substantial token holdings and multiple monetization vectors (staking, GPU rental, rotation) targeting yield in FY26 .
Near-term catalysts include enterprise GPU contracts (examples cited from $3M training runs to $120M engagements) and a potential rebrand/ticker change to reflect AI infrastructure focus .
Regulatory and shareholder approvals (pre-funded warrants) and crypto market volatility are key swing factors; management flagged these risks explicitly .
Expect narrative shift in coverage from biopharma discovery to AI infrastructure economics; valuation comparables may follow “NeoCloud” peers emphasizing revenue scaling over current profitability .
Watch operating metrics: ATH yield realization, GPU capacity booked, fiat revenue conversion cadence, and sustained burn reduction; these will drive the next phase of investor confidence .
Trade setup: Stock likely reacts to concrete contract wins and clarity on cash conversion from ATH; absence of traditional guidance keeps focus on execution milestones rather than quarterly EPS prints .

Footnote: *Values retrieved from S&P Global.