10-Q · May 6, 2026
BillionToOne (BLLN) delivered strong Q2 2026 results, with revenue increasing by 83.8% year-over-year to $108.4 million, significantly surpassing estimates. Earnings per share (EPS) of $0.34 also exceeded projections,…
Earnings analysis · 10-Q
BLLN earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
BillionToOne delivered strong third-quarter growth, with revenue up 47.2% year over year to $123.0 million, diluted EPS of $0.32 versus $0.10, and sequential improvement in operating margin to 9.0% from 5.0%. Prenatal…
Read full summary
BillionToOne delivered strong third-quarter growth, with revenue up 47.2% year over year to $123.0 million, diluted EPS of $0.32 versus $0.10, and sequential improvement in operating margin to 9.0% from 5.0%. Prenatal and oncology revenue both expanded, supported by 25% higher delivered test volume and an 18% increase in Overall ASP. Liquidity and cash generation were robust, but rising receivables, significant investment commitments, unremediated material weaknesses, and the Illumina patent lawsuit remain important risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.32
- Segment
- Prenatal revenue was $104.3 million versus $74.1 million, up 40.8% year over year.
- Segment
- Oncology revenue was $17.1 million versus $8.7 million, up 96.2% year over year.
- Segment
- Clinical trial support and other services revenue was $1.6 million versus $0.8 million, up 115.2% year over year.
- Segment
- The company is managed as one operating and one reportable segment.
What stood out
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Revenue and testing volumes accelerated
Third-quarter revenue increased 47.2% year over year to $123.0 million from $83.5 million and rose from $109 million in the prior quarter. Delivered and billable tests increased 25% to approximately 206,000, while Overall ASP increased 18%.
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Gross profit expanded despite mix pressure
Gross margin was 70.9% versus 70.0% a year earlier and 70.5% in the prior quarter. Gross profit increased 49.2% year over year to $87.1 million, although Overall Cost Per Test increased 10% and oncology mix created cost pressure.
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Profitability improved sequentially
Income from operations rose 14.4% year over year to $11.0 million, implying a 9.0% operating margin versus 11.5% a year earlier and 5.0% in the prior quarter. Net income increased to $17.4 million from $5.7 million, and diluted EPS rose to $0.32 from $0.10.
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Prenatal and oncology both grew
Both major testing businesses grew: Prenatal revenue increased to $104.3 million from $74.1 million, while Oncology revenue nearly doubled to $17.1 million from $8.7 million. Management attributed growth to expanded prenatal and oncology sales forces, broader payor contracts, and the proprietary PLA code.
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Liquidity remains strong
Cash and cash equivalents increased to $561.5 million from $496.0 million at December 31, 2025, and working capital was $621.5 million. Management reported compliance with all financial covenants as of September 30, 2026.
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Positive cash generation funded growth
Nine-month operating cash flow increased to $37.1 million from $13.8 million. After $12.5 million of property and equipment purchases, derived free cash flow was approximately $24.6 million; capex represented approximately 3.7% of nine-month revenue of $340.8 million.
What to watch
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Receivables and payor dependence
Accounts receivable increased $46.7 million to $88.3 million from $41.6 million at December 31, 2025, contributing to $56.2 million of operating-asset cash outflows. More than 90% of nine-month revenue came from third-party reimbursement, leaving collections and payor decisions material to cash conversion.
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Unremediated control weaknesses
The company continues to report material weaknesses in internal control over financial reporting, and disclosure controls were concluded to be ineffective as of September 30, 2026. The weaknesses include insufficient accounting resources, controls over financial instruments, and user-access controls; management stated they were not remediated as of the filing date.
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Patent litigation over UNITY
Illumina filed a lawsuit on May 7, 2026 alleging that the UNITY test infringes three patents, U.S. Patent Nos. 10,612,096, 12,139,760, and 12,435,373. BillionToOne filed a motion to dismiss on October 23, 2026, but litigation could result in substantial costs or restrictions despite management stating that a loss is not probable or reasonably estimable.
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Debt and covenant obligations
Long-term debt increased to $89.0 million from $57.2 million following a $30.0 million third-tranche draw, with an 8.0% interest rate and $80.0 million of principal payments due in 2031. The debt is secured by a lien on company assets and includes a trailing six-month revenue covenant that rises to $120.0 million for Q4 2026.
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Large future facility commitments
Management expects significant infrastructure investment, including a 229,000-square-foot Austin laboratory expected to be occupied in 2027 and operational for commercial samples in 2028. Fixed operating lease commitments were $65.3 million, including $10.7 million payable within 12 months.
Management's outlook
The 10-Q does not provide new quantitative revenue or EPS guidance. Management states that revenue is expected to increase over time and that cash and cash equivalents of $561.5 million are expected to fund operations for at least the next 12 months. The previously disclosed full-year 2026 revenue outlook was provided in the separate 8-K/earnings release rather than this filing.
Earlier filings 3
10-K · March 11, 2026
BillionToOne emphasizes a durable technical moat built on its patented smNGS platform and QCTs that enable single-molecule quantification and low-cost, high-precision cfDNA assays. The company highlights commercial…
10-Q · December 10, 2025
BillionToOne reported a strong Q3 2025 quarter with revenue of $83,523 (in thousands) and GAAP net income of $5,711 (in thousands), reversing prior-year losses. Revenue more than doubled year-over-year driven by…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.