Interpace's Thyroid Pivot Fuels Growth, Boosted by Tax Gain

By Alexander Harris

PARSIPPANY, NJ – March 30, 2026 – Interpace Biosciences, Inc. (OTCQX: IDXG) today unveiled its full-year 2025 financial results, painting a picture of a company in successful transformation. While a massive, non-cash tax adjustment skewed headline profits, the underlying story is one of robust growth in its core thyroid diagnostics business, validating a strategic pivot that has streamlined the company and fortified its balance sheet.

The specialized diagnostics firm reported a full-year income from continuing operations of $25.0 million on revenue of $38.7 million. However, the impressive income figure was primarily driven by a one-time, non-cash accounting adjustment of over $21 million related to the release of a deferred tax valuation allowance. Looking past this accounting artifact, the operational results reveal the true health of the business: a 21% year-over-year surge in thyroid-related revenue and a 13% increase in thyroid test volume, demonstrating strong market adoption of its flagship products.

A Deliberate and Decisive Transformation

2025 was the year Interpace went all-in on thyroid cancer diagnostics, a move that capped a multi-year strategic realignment. The company completed its transition to a thyroid-only entity following the discontinuation of its PancraGEN test for pancreatic cancer risk in May 2025. The decision to cease the product, once a significant revenue generator, was precipitated by the loss of Medicare coverage, which rendered it commercially unviable.

This decisive action, while causing a year-over-year decline in total reported revenue, has allowed Interpace to sharpen its focus and resources. “2025 marked a pivotal year for Interpace as we successfully navigated the PancraGEN discontinuation and emerged as a focused thyroid diagnostics company,” said Tom Burnell, President and CEO, in the company's announcement. “Our fourth quarter results demonstrate the resilience of our business model and the strength of our comprehensive thyroid testing platform.”

The pro forma results, which exclude the discontinued PancraGEN operations from the prior year's comparison, tell a clearer story of the core business's momentum. On a pro forma basis, full-year 2025 revenue grew 17% compared to 2024, highlighting the strength of the remaining thyroid franchise.

Deconstructing the Financials

While the reported net income of $24.6 million for the year appears spectacular, a deeper dive into the financials is necessary for a complete picture. The key driver was a non-cash tax benefit of $21.2 million. This accounting move occurs when a company becomes confident it will generate enough future taxable income to utilize past tax losses. While it's a strong signal of management's optimism, it does not represent cash earned from operations during the period.

A more telling metric of operational performance, Adjusted EBITDA, was $5.4 million for 2025. This figure, which excludes non-cash items like the tax benefit and depreciation, provides a clearer view of the company's cash-generating ability from its ongoing business. The strategic pivot has also dramatically improved the company's financial health. Interpace announced it fully paid off its outstanding debt in the fourth quarter of 2025, a significant milestone that de-risks the balance sheet.

“Our strong financial position enabled continued investments in laboratory operational efficiency, leveraging AI and automation as part of our digital strategy,” stated Chris McCarthy, Chief Financial Officer. He also noted that the company increased its cash availability by $4.3 million year-over-year, ending 2025 with a stronger liquidity position and a debt-free balance sheet.

Clinical Edge Drives Operational Excellence

The engine behind Interpace's growth is its two-part molecular testing platform for indeterminate thyroid nodules, a common clinical challenge that often leads to diagnostic surgeries. The company combines its ThyGeNEXT® next-generation sequencing (NGS) assay, which screens for a wide panel of genetic mutations and fusions associated with cancer, with its ThyraMIR®v2 test, a proprietary microRNA expression profiler.

This dual-pronged approach aims to provide physicians with a more complete molecular picture, improving risk stratification and helping to avoid unnecessary surgeries on benign nodules while confirming the need for intervention in malignant cases. Burnell emphasized this clinical value, stating, “We believe our combination approach… helps provide physicians the confidence and clarity they need to make informed patient-management decisions.”

This clinical utility is translating into impressive operational metrics. Beyond the double-digit growth in test volume and revenue, Interpace reported a 5% increase in average revenue per thyroid test in 2025. The company has also become more efficient, slashing its Days Sales Outstanding (DSO)—the time it takes to collect payment—by 19% and reducing its average test turnaround time by a notable 20%. These efficiency gains, attributed to investments in automation and a disciplined operational focus, are critical in the competitive diagnostics landscape where speed and reliability are paramount.

A Focused Outlook for 2026

With the complexities of the PancraGEN wind-down in the rearview mirror, Interpace is looking ahead to 2026 with a clear, focused strategy. The company is projecting approximately 16% year-over-year revenue growth, which would bring its total 2026 revenue to around $40 million, entirely from its thyroid business.

This guidance appears well-supported by the momentum established in 2025. The company is not only seeing deeper adoption within its existing client base, with average volume per account up 6%, but is also successfully expanding its footprint, growing its total number of accounts by 9%.

Further bolstering its outlook, Interpace has expressed its intention to seek an uplisting from the OTCQX market to the Nasdaq Stock Market during 2026. Such a move would increase the company's visibility to a broader range of institutional investors and improve stock liquidity, marking another significant step in its evolution. With a clean balance sheet, a focused business model, and proven traction in a growing clinical market, Interpace appears positioned to capitalize on its hard-won transformation.