Personalis, Inc.
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 4, 2026
PSNL$15.79+1.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-04.
0001193125-26-332817
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0001193125-26-447201
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 102 previous paragraphs and 100 current paragraphs.
66 unchanged; 29 reworded; 5 added; 7 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
Launched NeXT Personal® Real-Time Variant Tracker™: Commercially launched optional Real-Time Variant Tracker supplemental results in the NeXT Personal molecular residual disease (MRD) test report, which identify clinically relevant resistance and therapeutically targetable variants over time, during NeXT Personal testing.
Current report
Reported pre-interim results from prospective Triple Negative Breast Cancer (TNBC) B-STRONGER-1 study: Personalis’ study is a multi-site, prospective study evaluating ctDNA dynamics in stage I-III TNBC patients receiving neoadjuvant therapy (NAT). Results showed high sensitivity, achieving a 96% ctDNA detection rate at baseline with 83.3% of positive detections at T1 in the ultrasensitive range below 100 PPM. Also, the results showed an 82% ctDNA clearance rate following two cycles of NAT.
Current report
Demonstrated the value of ultrasensitive ctDNA for predicting early immunotherapy response: A study conducted with The University of California, San Diego (UCSD) for 55 patients across 8 metastatic cancer types showed that an ultrasensitive assay may provide resolution in cases of heterogeneous response to stratify patients with radiographically stable disease into distinct risk groups, and dynamic ctDNA monitoring during immunotherapy provides lead time for identifying patients at high risk of progression.
Current report
(1) Includes related party revenue of $5.9 million and $1.1 million for the three months ended September 30, 2026 and 2025, respectively, and $17.4 million and $3.5 million for the nine months ended September 30, 2026 and 2025, respectively.
Current report
(1) Includes related party revenue of $5.9 million and $1.1 million for the three months ended September 30, 2026 and 2025, respectively, and $17.4 million and $3.5 million for the nine months ended September 30, 2026 and 2025, respectively.
Removed paragraphs (7)
Previous report
Secured Medicare Coverage for IO Monitoring: Received Medicare coverage approval for NeXT Personal® for immunotherapy monitoring for patients with late-stage solid tumors;
Previous report
Secured Medicare Coverage for Neoadjuvant Therapy Monitoring for Breast Cancer: Received Medicare coverage approval for NeXT Personal for monitoring treatment response to NAT in patients diagnosed with Stage II-III Triple-Negative Breast Cancer (TNBC) or HER2-positive (HER2+) breast cancer;
Previous report
Presented Compelling Colorectal Cancer Recurrence Detection: The prospective VICTORI study led by the University of British Columbia showed NeXT Personal detected 100% of all patient relapses, including all distant metastases in historically difficult-to-detect regions like the lung. Notably, just four weeks after surgery, NeXT Personal detected over 80% of patients who later relapsed, providing clinicians with an early signal of cancer to inform treatment pathways;
Previous report
Highlighted Importance of Sub-10 ppm Sensitivity in Lung Cancer: Approximately 21% of pre-operative adenocarcinoma and 18% of post-operative landmark detections in the TRACERx study were below 10 ppm—thresholds frequently missed by less sensitive assays. Patients detected in this range experienced a three-fold increased risk of recurrence compared to patients with undetectable ctDNA, potentially enabling much earlier clinical intervention.
Previous report
(1) Includes related party revenue of $8.4 million and $1.9 million for the three months ended June 30, 2026 and 2025, respectively, and $11.5 million and $2.4 million for the six months ended June 30, 2026 and 2025, respectively.
Previous report
(3) Includes related party contract liabilities of $1.7 million and nil as of June 30, 2026 and December 31, 2025, respectively.
Previous report
(1) Includes related party revenue of $8.4 million and $1.9 million for the three months ended June 30, 2026 and 2025, respectively, and $11.5 million and $2.4 million for the six months ended June 30, 2026 and 2025, respectively.
Reworded paragraphs (29)
Previous wording
We are working with a growing number of leading cancer centers and world-class academic research institutions to build and publish clinical, evidence-based support for our testing services and our key indications, as well as to obtain reimbursement coverage from Medicare and other payors. Because of the ultra-high analytical sensitivity of our technology, we are primarily focusing on three indications: breast cancer, lung cancer, and immunotherapy (IO) monitoring. We have collaborations with Cancer Research UK, University College London, and the Francis Crick Institute (the TRACERx study); Institut Curie; The Royal Marsden; the Vall d'Hebron Institute of Oncology (VHIO); the University of California, San Diego; Duke University; Vanderbilt University and Johns Hopkins University (the PREDICT study); the Dana-Farber Cancer Institute; the University of Texas M.D. Anderson Cancer Center; University Medical Center Hamburg-Eppendorf (also known as UKE); Criterium and the Academic Breast Cancer Consortium; Yale Cancer Center; Aarhus University; British Columbia Cancer; and University Health Network, that will focus on building the evidence-base for our technology and these indications.
Current wording
We are working with a growing number of leading cancer centers and world-class academic research institutions to build and publish clinical, evidence-based support for our testing services and our key indications, as well as to obtain reimbursement coverage from Medicare and other payors. Because of the ultra-high analytical sensitivity of our technology, we are primarily focusing on three indications: breast cancer, lung cancer, and immunotherapy (IO) monitoring. We have collaborations with ClearNote Health; Inc.; Cancer Research UK, University College London, and the Francis Crick Institute (the TRACERx study); Institut Curie; The Royal Marsden; the Vall d'Hebron Institute of Oncology (VHIO); the University of California, San Diego; Duke University; Vanderbilt University and Johns Hopkins University (the PREDICT study); the Dana-Farber Cancer Institute; the University of Texas M.D. Anderson Cancer Center; University Medical Center Hamburg-Eppendorf (UKE); Criterium and the Academic Breast Cancer Consortium; Yale Cancer Center; Aarhus University; British Columbia Cancer; University Health Network; Memorial Sloan Kettering (MSK); Health Research Institute of Santiago de Compostela (IDIS); UZ Leuven; Geneos; National Cancer Center Hospital East (NCCHE), that will focus on building the evidence-base for our technology and these indications.
Previous wording
Our work in oncology is underpinned by our experience and capacity for next-generation sequencing at scale. We have the capacity to sequence and analyze over 350 trillion bases of DNA per week in our facility. We believe that our capacity is already larger than most cancer genomics companies, and we continue to build automation and other infrastructure to scale further as demand increases. To date, we have sequenced approximately 605,000 human samples, of which approximately 237,000 were whole human genomes.
Current wording
Our work in oncology is underpinned by our experience and capacity for next-generation sequencing at scale. We have the capacity to sequence and analyze over 350 trillion bases of DNA per week in our facility. We believe that our capacity is already larger than most cancer genomics companies, and we continue to build automation and other infrastructure to scale further as demand increases. To date, we have sequenced approximately 629,000 human samples, of which approximately 251,000 were whole human genomes.
Previous wording
On July 20, 2026, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Tempus (sometimes referred to as Parent), Aviary Development, Inc., a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub I”) and Toucan Development, LLC, a Nevada limited liability company and a wholly owned subsidiary of Parent (“Merger Sub II”). Pursuant to the Merger Agreement, and upon the terms and subject to the conditions therein, (a) Merger Sub I will be merged with and into Personalis (the “First Merger”), with Personalis surviving the First Merger as a wholly owned subsidiary of Parent (the “First Surviving Corporation”), and (b) as part of the same overall transaction, immediately after the First Merger, the First Surviving Corporation will merge with and into Merger Sub II (together, with the First Merger, referred to collectively as the “Merger”), with Merger Sub II surviving as a wholly owned subsidiary of Parent (see Note 13, Subsequent Events, in Part 1, Item 1 of this Form 10-Q in our Consolidated Financial Statements for additional information).
Current wording
On July 20, 2026, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Tempus (sometimes referred to as Parent), Aviary Development, Inc., a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub I”) and Toucan Development, LLC, a Nevada limited liability company and a wholly owned subsidiary of Parent (“Merger Sub II”). Pursuant to the Merger Agreement, and upon the terms and subject to the conditions therein, (a) Merger Sub I will be merged with and into Personalis (the “First Merger”), with Personalis surviving the First Merger as a wholly owned subsidiary of Parent (the “First Surviving Corporation”), and (b) as part of the same overall transaction, immediately after the First Merger, the First Surviving Corporation will merge with and into Merger Sub II (together, with the First Merger, referred to collectively as the “Merger”), with Merger Sub II surviving as a wholly owned subsidiary of Parent (see Note 13, Pending Acquisition by Tempus, in Part 1, Item 1 of this Form 10-Q in our Consolidated Financial Statements for additional information). On October 21, 2026, we filed our definitive proxy statement/prospectus relating to the Merger. The special meeting of our stockholders to consider and vote on the adoption of the Merger Agreement is scheduled for November 30, 2026.
Previous wording
Second Quarter 2026 Strategic and Operational Highlights
Current wording
Third Quarter 2026 Strategic and Operational Highlights
Previous wording
Total revenue of $22.4 million increased 30%, or $5.2 million, during the second quarter of 2026 compared to the second quarter of 2025, due to (i) higher revenue from pharma testing services and (ii) higher clinical test revenue as a result of obtaining Medicare reimbursement coverage decisions in November 2025, February 2026 and May 2026 for breast cancer, lung cancer, immunotherapy monitoring for patients with late-stage solid tumors and neoadjuvant therapy (NAT) monitoring for breast cancer, respectively. These increases were partially offset by (i) the expected revenue decline from Enterprise sales due to the completion of the project with Natera, and (ii) planned lower population sequencing revenue from the VA MVP.
Current wording
Total revenue of $63.4 million increased 21%, or $11.1 million, during the third quarter of 2026 compared to the third quarter of 2025, due to (i) higher revenue from pharma testing services (ii) higher clinical test revenue as a result of obtaining Medicare reimbursement coverage decisions in November 2025, February 2026 and May 2026 for breast cancer, lung cancer, immunotherapy monitoring for patients with late-stage solid tumors and neoadjuvant therapy (NAT) monitoring for breast cancer, respectively and (iii) planned higher population sequencing revenue from the VA MVP. These increases were partially offset by the expected revenue decline from Enterprise sales due to the completion of the project with Natera.
Previous wording
Key business accomplishments and financial updates in the second quarter of 2026 include:
Current wording
Key business accomplishments and financial updates in the third quarter of 2026 include:
Previous wording
(2) Includes related party sales and marketing expenses of $3.8 million and $0.9 million for the three months ended June 30, 2026 and 2025, respectively, and $6.7 million and $1.5 million for the six months ended June 30, 2026 and 2025, respectively.
Current wording
(2) Includes related party sales and marketing expenses of $4.8 million and $1.2 million for the three months ended September 30, 2026 and 2025, respectively, and $11.5 million and $2.7 million for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
(1) Includes related party accounts receivable of $7.5 million and $2.5 million as of June 30, 2026 and December 31, 2025, respectively.
Current wording
(1) Includes related party accounts receivable of $4.2 million and $2.5 million as of September 30, 2026 and December 31, 2025, respectively.
Previous wording
(2) Includes related party liabilities of $5.4 million and $5.7 million as of June 30, 2026 and December 31, 2025, respectively.
Current wording
(2) Includes related party liabilities of $5.0 million and $5.7 million as of September 30, 2026 and December 31, 2025, respectively.
Previous wording
The increase in pharma testing services revenue in the second quarter of 2026 and the first half of 2026 compared to the same periods of 2025 was primarily due to an increase in the number of clinical trial samples processed for Merck. We expect variability in revenue from pharmaceutical companies in the future due to the timing of their patient enrollment for clinical trials or project schedules.
Current wording
The increase in pharma testing services revenue in the third quarter of 2026 and the first nine months of 2026 compared to the same periods of 2025 was primarily due to an increase in the number of clinical trial samples processed for Merck. We expect variability in revenue from pharmaceutical companies in the future due to the timing of their patient enrollment for clinical trials or project schedules.
Previous wording
The decrease in revenue from enterprise sales in the second quarter of 2026 and the first half of 2026 compared to the same periods of 2025 was due to the expected decrease in the number of samples processed for Natera after the second quarter of 2025 when the minimum volume commitments in our agreement with Natera expired. We no longer have a commercial relationship with Natera and do not expect to have one going forward.
Current wording
The decrease in revenue from enterprise sales in the third quarter of 2026 and the first nine months of 2026 compared to the same periods of 2025 was due to the expected decrease in the number of samples processed for Natera after the second quarter of 2025 when the minimum volume commitments in our agreement with Natera expired. We no longer have a commercial relationship with Natera and do not expect to have one going forward.
Previous wording
Revenue recognized each period from population sequencing is impacted by timing of our fulfillment of samples under each annual task order. The decrease in revenue in the second quarter of 2026 and in the first half of 2026 compared to the same periods of 2025 was due to a planned decrease in the number of samples we processed. Our annual task orders received in 2025 and 2024 were $13.5 million and $7.5 million, respectively. Our contract with the VA MVP does not include specific testing turnaround times. Therefore, we may modulate the volume of samples processed from the VA MVP to accommodate sample volumes from other customers, which can vary from period to period. We anticipate fulfilling the task order received in August 2025 during the first three quarters of 2026.
Current wording
Revenue recognized each period from population sequencing is impacted by timing of our fulfillment of samples under each annual task order. The increase in revenue in the third quarter of 2026 and in the first nine months of 2026 compared to the same periods of 2025 was due to a planned increase in the number of samples we processed. Our annual task orders received in 2025 and 2024 were $13.5 million and $7.5 million, respectively. Our contract with the VA MVP does not include specific testing turnaround times. Therefore, we may modulate the volume of samples processed from the VA MVP to accommodate sample volumes from other customers, which can vary from period to period. In August 2026, we received a task order from the VA MVP, that was effective on September 30, 2026, for the fourth one-year renewal option period with a value of up to $18.3 million.
Previous wording
Clinical diagnostic revenue is generated from Medicare and private insurance payors. In January 2024, we received a Medicare coverage determination for NeXT Dx, our ultra-comprehensive tumor genomic profiling assay. In November 2025, we received Medicare coverage determination for NeXT Personal Dx for post-treatment surveillance of cancer recurrence in patients with Stage II and III breast cancer, with an effective date of October 7, 2025. In February 2026, we received Medicare coverage for NeXT Personal Dx for surveillance of patients with Stage I to III NSCLC, with an effective date of January 9, 2026. In May 2026, we received Medicare coverage for NeXT Personal Dx for immunotherapy monitoring for patients with late-stage solid tumors, with an effective date of March 16, 2026. In May 2026, we also received Medicare coverage for NeXT Personal Dx for monitoring treatment response to NAT in patients diagnosed with Stage II-III TNBC or HER2+ breast cancer, with an effective date of April 6, 2026. The increases in clinical diagnostic revenue in the second quarter of 2026 and in the first half of 2026 compared to the same periods of 2025 were mainly attributable to an increase in NeXT Dx test volume and NeXT Personal Dx reimbursements received from certain private payors and Medicare for breast cancer, NSCLC surveillance, immunotherapy monitoring for patients with late-stage solid tumors and NAT monitoring for breast cancer.
Current wording
Clinical diagnostic revenue is generated from Medicare and private insurance payors. In January 2024, we received a Medicare coverage determination for NeXT Dx, our ultra-comprehensive tumor genomic profiling assay. In November 2025, we received Medicare coverage determination for NeXT Personal Dx for post-treatment surveillance of cancer recurrence in patients with Stage II and III breast cancer, with an effective date of October 7, 2025. In February 2026, we received Medicare coverage for NeXT Personal Dx for surveillance of patients with Stage I-III NSCLC, with an effective date of January 9, 2026. In May 2026, we received Medicare coverage for NeXT Personal Dx for immunotherapy monitoring for patients with late-stage solid tumors, with an effective date of March 16, 2026. In May 2026, we also received Medicare coverage for NeXT Personal Dx for monitoring treatment response to NAT in patients diagnosed with Stage II-III TNBC or HER2+ breast cancer, with an effective date of April 6, 2026. The increases in clinical diagnostic revenue in the third quarter of 2026 and in the first nine months of 2026 compared to the same periods of 2025 were mainly attributable to an increase in NeXT Dx test volume and NeXT Personal Dx reimbursements received from certain private payors and Medicare for breast cancer, NSCLC surveillance, immunotherapy monitoring for patients with late-stage solid tumors and NAT monitoring for breast cancer.
Previous wording
The increase in cost of revenue in the second quarter of 2026 and in the first half of 2026 compared to the same periods of 2025 was primarily due to increased clinical diagnostic test costs where the corresponding revenue and reimbursement amounts were less than the cost of the testing services due to selling testing services in advance of Medicare reimbursement in order to gain market share.
Current wording
The increase in cost of revenue in the third quarter of 2026 and in the first nine months of 2026 compared to the same periods of 2025 was primarily due to increased clinical diagnostic test costs where the corresponding revenue and reimbursement amounts were less than the cost of the testing services due to selling testing services in advance of Medicare reimbursement in order to gain market share.
Previous wording
Specific components of the increase in the second quarter of 2026 were a $3.2 million increase in diagnostic test costs, a $1.6 million increase in direct material costs due to higher biopharma revenue, a $1.1 million increase in personnel costs, and a $0.3 million increase in equipment maintenance costs, offset partially by a $1.0 million decrease in laboratory supplies costs.
Current wording
Specific components of the increase in the third quarter of 2026 were a $3.5 million increase in diagnostic test costs, a $1.6 million increase in direct material costs due to higher biopharma revenue, a $1.2 million increase in personnel costs, and a $0.2 million increase in equipment maintenance costs, offset partially by a $0.1 million decrease in laboratory supplies costs.
Previous wording
Specific components of the increase in the first half of 2026 were a $3.8 million increase in diagnostic test costs, a $1.2 million increase in direct material costs due to higher biopharma revenue, a $1.8 million increase in personnel costs, a $0.4 million increase in equipment maintenance costs, and a $0.3 million increase in facilities costs, offset partially by a $0.5 million decrease in laboratory supplies costs.
Current wording
Specific components of the increase in the first nine months of 2026 were a $7.3 million increase in diagnostic test costs, a $1.9 million increase in direct material costs due to higher biopharma revenue, a $3.3 million increase in personnel costs, a $0.7 million increase in equipment maintenance costs, and a $0.2 million increase in laboratory supplies costs.
Previous wording
The increases in research and development in the second quarter of 2026 and in the first half of 2026 compared to the same periods of 2025 were primarily due to increased personnel and personnel-related costs due to higher compensation costs and increased headcount and R&D lab activities. These expenses increased in order to further and complete clinical evidence studies, process development work to enhance laboratory operations’ productivity, and technology development.
Current wording
The increases in research and development in the third quarter of 2026 and in the first nine months of 2026 compared to the same periods of 2025 were primarily due to increased personnel and personnel-related costs due to higher compensation costs and increased headcount and R&D lab activities. These expenses increased in order to further and complete clinical evidence studies, process development work to enhance laboratory operations’ productivity, and technology development.
Previous wording
Specific components of the increase in the second quarter of 2026 were a $2.2 million increase in personnel and personnel-related costs driven by increased headcount and employee compensation and a $1.8 million increase due to higher lab supplies utilized, IT and internal operation supports, and consulting services for R&D projects.
Current wording
Specific components of the increase in the third quarter of 2026 were a $2.6 million increase in personnel and personnel-related costs driven by increased headcount and employee compensation and a $1.3 million increase due to higher lab supplies utilized, IT and internal operation supports, and consulting services for R&D projects.
Previous wording
Specific components of the increase in the first half of 2026 were a $3.7 million increase in personnel and personnel-related costs driven by increased headcount and employee compensation and a $2.2 million increase in lab supplies utilized, IT related expenses, and consulting services to support R&D projects and volume growth.
Current wording
Specific components of the increase in the first nine months of 2026 were a $6.1 million increase in personnel and personnel-related costs driven by increased headcount and employee compensation and a $3.7 million increase in lab supplies utilized, IT related expenses, and consulting services to support R&D projects and volume growth.
Previous wording
The increases in selling, general and administrative expenses in the second quarter of 2026 and in the first half of 2026 compared to the same periods of 2025 were primarily due to increased personnel and personnel related expenses due to higher compensation costs and increased headcount and marketing expenses associated with increases in testing volume for NeXT Personal Dx.
Current wording
The increases in selling, general and administrative expenses in the third quarter of 2026 and in the first nine months of 2026 compared to the same periods of 2025 were primarily due to increased personnel and personnel related expenses due to higher compensation costs and increased headcount and marketing expenses associated with increases in testing volume for NeXT Personal Dx.
Previous wording
Specific components of the increase in the second quarter of 2026 were a $3.3 million increase in Tempus' sales and marketing expenses and commercial-related expenses associated with higher NeXT Personal Dx testing volume, a $3.5 million increase in personnel and personnel related expenses due to higher headcount and employee compensation, and a $1.3 million increase in professional services primary associated with the Merger Agreement, partially offset by a $0.3 million decrease in depreciation expenses.
Current wording
Specific components of the increase in the third quarter of 2026 were a $4.3 million increase in fees payable to Tempus for the volume of tests sold and results delivered to physicians and commercial-related expenses associated with higher NeXT Personal Dx testing volume, a $4.7 million increase in personnel and personnel related expenses due to higher headcount and employee compensation, a $4.0 million increase in professional services primarily associated with the Merger Agreement, and a $0.4 million increase in IT infrastructure projects, partially offset by a $0.5 million decrease in depreciation expenses.
Previous wording
Specific components of the increase in the first half of 2026 were a $6.6 million increase in Tempus' sales and marketing expenses and commercial-related expenses associated with higher NeXT Personal Dx testing volume, a $5.9 million increase in personnel and personnel-related expenses due to higher sales commission, headcount, and employee compensation, and a $1.6 million increase in professional services primarily associated with the Merger Agreement, partially offset by a $0.6 million decrease in depreciation expenses.
Current wording
Specific components of the increase in the first nine months of 2026 were a $10.9 million increase in fees payable to Tempus for the volume of tests sold and results delivered to physicians and commercial-related expenses associated with higher NeXT Personal Dx testing volume, a $10.0 million increase in personnel and personnel-related expenses due to higher sales commission, headcount, and employee compensation, a $5.6 million increase in professional services primarily associated with the Merger Agreement, and a $1.6 million increase in IT infrastructure projects, partially offset by a $1.7 million decrease in depreciation expenses.
Previous wording
The increases in interest income in the second quarter of 2026 and the first half of 2026 compared to the same periods of 2025 were driven by higher average investment balances, partially offset by decreased yields. Interest expense is the recognition of imputed interest on noninterest bearing loans.
Current wording
The increases in interest income in the third quarter of 2026 and the first nine months of 2026 compared to the same periods of 2025 were driven by higher average investment balances, partially offset by decreased yields. Interest expense is the recognition of imputed interest on noninterest bearing loans.
Previous wording
From our inception through June 30, 2026, we have funded our operations primarily from net proceeds from issuance of redeemable convertible preferred stock, IPO, follow-on equity offerings, At-the-Market ("ATM") facility (see Note 9, At-the-Market Equity Offerings, in Part 1, Item 1 of this Form 10-Q in our Consolidated Financial Statements for additional information), Tempus exercising warrants and purchasing additional shares under an investment agreement, and Merck purchasing shares of our common stock under an investment agreement (see Note 8, Related Party Transactions, in Part 1, Item 1 of this Form 10-Q in our Consolidated Financial Statements for additional information), as well as debt financings. As of June 30, 2026, we had cash and cash equivalents of $94.0 million and short-term investments of $118.7 million.
Current wording
From our inception through September 30, 2026, we have funded our operations primarily from net proceeds from issuance of redeemable convertible preferred stock, IPO, follow-on equity offerings, At-the-Market ("ATM") facility (see Note 9, At-the-Market Equity Offerings, in Part 1, Item 1 of this Form 10-Q in our Consolidated Financial Statements for additional information), Tempus exercising warrants and purchasing additional shares under an investment agreement, and Merck purchasing shares of our common stock under an investment agreement (see Note 8, Related Party Transactions, in Part 1, Item 1 of this Form 10-Q in our Consolidated Financial Statements for additional information), as well as debt financings. As of September 30, 2026, we had cash and cash equivalents of $98.3 million and short-term investments of $92.3 million.
Previous wording
The decrease in cash used by investing activities was primarily due to a $14.2 million decrease in investment of our cash into short-term investments, $9.0 million higher proceeds from the maturity of short-term investments, partially offset by a $4.0 million increase in capital expenditures.
Current wording
The increase in cash provided by investing activities was primarily due to a $42.3 million decrease in purchases of short-term investments, partially offset by a $12.3 million decrease in proceeds from the maturity of short-term investments and a $5.6 million increase in capital expenditures.
Previous wording
The increase in cash provided by financing activities was primarily due to $7.7 million higher net proceeds from sales of common stock under our ATM facility and $3.1 million higher proceeds from issuance of common stock under equity incentive plans, partially offset by a $2.6 million decrease in proceeds from loans and a $2.1 million payment of a finance lease.
Current wording
The increase in cash provided by financing activities was primarily due to a $7.7 million increase in net proceeds from sales of common stock under our ATM facility and a $10.4 million increase in proceeds from issuance of common stock under equity incentive plans, partially offset by a $2.6 million decrease in proceeds from loans and a $1.8 million increase in repayments of loans and a finance lease.
Previous wording
Our material cash requirements in the short- and long-term consist primarily of variable costs of revenue, operating expenditures, capital expenditures, property leases, and other spend. We plan to fund our material cash requirements with our existing cash and cash equivalents and short-term investments, which amounted to $212.7 million as of June 30, 2026, as well as anticipated cash receipts from customers. If the Merger is not completed, to fund our material cash requirements in the short- and long-term, we may also seek to sell additional common or preferred equity or convertible debt securities, enter into an additional credit facility or another form of third-party funding or seek other debt financing.
Current wording
Our material cash requirements in the short- and long-term consist primarily of variable costs of revenue, operating expenditures, capital expenditures, property leases, and other spend. We plan to fund our material cash requirements with our existing cash and cash equivalents and short-term investments, which amounted to $190.6 million as of September 30, 2026, as well as anticipated cash receipts from customers. If the Merger is not completed, to fund our material cash requirements in the short- and long-term, we may also seek to sell additional common or preferred equity or convertible debt securities, enter into an additional credit facility or another form of third-party funding or seek other debt financing.
Previous wording
Capital expenditures. Capital expenditures are expected to increase from 2025 levels as we expect to expand NeXT Personal Dx test volume capacity. Going forward, our capital expenditures are expected to consist primarily of laboratory equipment and computer equipment. We currently expect capital expenditures to be between $8.0 million and $10.0 million in 2026 and between $10.0 million to $12.0 million in each of the years 2027 and 2028.
Current wording
Capital expenditures. Capital expenditures are expected to increase from 2025 levels as we expect to expand NeXT Personal Dx test volume capacity. Going forward, our capital expenditures are expected to consist primarily of laboratory equipment and computer equipment. We currently expect capital expenditures to be between $10.0 million and $12.0 million in 2026 and between $12.0 million to $15.0 million in each of the years 2027 and 2028.
Previous wording
Property leases. Our noncancelable operating lease payments were $58.8 million as of June 30, 2026. The timing of these future payments, by year, can be found in Note 7, Leases, in Part I, Item 1 of this Form 10-Q in the Consolidated Financial Statements.
Current wording
Property leases. Our noncancelable operating lease payments were $57.0 million as of September 30, 2026. The timing of these future payments, by year, can be found in Note 7, Leases, in Part I, Item 1 of this Form 10-Q in the Consolidated Financial Statements.