Freenome — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the third quarter of 2026 was $183.5 million, a 17,628% increase from $1.0 million in the same period in 2025.
• License and collaboration revenue was $182.5 million for the quarter, compared to $0 in 2025.
• Service and other revenue was $0.9 million for the quarter, a 9% decrease from $1.0 million in 2025.
• GAAP net income was $60.1 million for the third quarter of 2026, compared to a GAAP net loss of $64.5 million in 2025.
• Non-GAAP net income was $114.0 million for the quarter, compared to a non-GAAP net loss of $61.4 million in 2025.
• Adjusted EBITDA was $117.9 million for the third quarter of 2026, compared to negative $56.3 million in 2025.
• Net cash provided by operating activities was $38.4 million for the quarter, compared to net cash used of $42.0 million in 2025.
• Free cash flow was $35.7 million for the quarter, compared to negative $44.8 million in 2025.
• Cash, cash equivalents, and marketable securities totaled $430.0 million as of September 30, 2026.
• Total operating costs and expenses were $113.5 million for the quarter, up from $66.3 million in 2025, driven by transaction and stock-based compensation costs related to the business combination.
• Research and development expense was $68.4 million, and general and administrative expense was $44.6 million for the quarter.
• Deferred revenue decreased from $56.3 million (current and non-current combined) as of December 31, 2025, to $24.6 million (non-current only) as of September 30, 2026, with current deferred revenue reaching $0.
• Convertible notes previously recorded as liabilities were converted into equity; the Abbott convertible note was converted into approximately 3.4 million shares at $15.00 per share, and the Roche convertible note was converted into approximately 6.4 million shares at $12.00 per share.

Guidance and Future Outlook:

• Freenome expects full-year 2026 total revenue to be between $192 million and $194 million.
• The company anticipates the next two single-cancer readouts from its AI-powered multiomics discovery platform in December 2026.
• The first asymptomatic multi-cancer detection readout is anticipated for mid-2027.

Business Segments and Product Lines:

• Revenue was primarily driven by the FDA approval of SimpleScreen™ CRC, which triggered a $100 million milestone payment under the collaboration and exclusive U.S. commercial license agreement with Exact Sciences (assumed by Abbott).
• SimpleScreen™ CRC was launched by Abbott in the United States on September 30, 2026.
• An updated version of SimpleScreen™ CRC met all primary and secondary endpoints, showing improved detection of advanced precancerous lesions, including those with high-grade dysplasia.
• In October 2026, the Personalized Cancer Detection (PCD) portfolio expanded with the launch of SimpleScreen™ Lung, a protein-based laboratory-developed test for adults ages 50 to 80 with a significant smoking history.
• The company introduced an option to add SimpleScreen CRC in a single blood draw for individuals eligible for both screenings.
• SimpleScreen™ Lung received FDA Breakthrough Device Designation for its multiomics version currently in development.

Market and Competitive Landscape:

• The company operates in the personalized cancer detection market using an AI-driven multiomics platform to optimize single- and multi-cancer blood tests.
• The company's strategy focuses on expanding access to blood-based early cancer detection for millions of at-risk individuals.

Risks and Challenges:

• Forward-looking statements highlight risks related to regulatory approval and review timelines, clinical studies and validation, reimbursement and market adoption, competition, partnerships and commercialization, manufacturing, laboratory operations, supply, and protection of intellectual property.
• Risks also include the ability to attract and retain personnel, the ability to raise additional capital, and changes in domestic and foreign business, economic, political, and legal conditions.

Management Commentary and Tone:

• CEO Aaron Elliott, Ph.D., stated that Freenome made meaningful progress in its first quarter as a public company by executing on strategic partnerships and strengthening its operating foundation.
• Management expressed confidence that the opportunity is substantial, with the multiomics AI platform positioned to build a portfolio of single-cancer and multi-cancer tests that could transform cancer detection.

Other Key Points:

• Freenome went public on the Nasdaq Capital Market on July 21, 2026, under the ticker symbol FRNM, raising approximately $310 million in gross proceeds from top healthcare investors.
• The company completed the conversion of approximately $50.5 million of principal and accrued interest under the Abbott convertible note into equity.
• The business combination closing in July 2026 resulted in the conversion of the Roche convertible note into equity.
• A conference call and webcast to discuss the results was held on November 10, 2026, at 1:30 p.m. Pacific Time.