bioAffinity Technologies reported a net loss of $5.1 million, or $4.74 per share, for the third quarter of 2025, compared with a $2.0 million loss in the same period a year earlier. Total revenue fell to $1.5 million from $2.4 million in Q3 2024, a 37.5% decline that reflects the company’s decision to discontinue lower‑margin pathology services. Cash and cash equivalents rose to $7.7 million at September 30, 2025, up from $1.1 million at the end of 2024, and the company raised $10.4 million in equity during the quarter to shore up liquidity.
The CyPath Lung test, the company’s flagship product, drove the most striking part of the quarter. Revenue from CyPath Lung testing grew 86% year‑over‑year for the first nine months of 2025 and surged 92% quarter‑over‑quarter in Q3, reaching a record high. The growth is largely attributable to expanding adoption in the Veterans Affairs program and broader physician acceptance of the test’s high sensitivity (92%) and specificity (87%) for early‑stage lung cancer. Management noted that the test’s integration into clinical workflows is accelerating, positioning CyPath Lung as a potential primary revenue engine.
The overall revenue decline is a direct consequence of the company’s strategic shift away from legacy pathology services, which historically generated lower margins. By shutting down those services, bioAffinity has reduced operating expenses by 16% to $3.7 million in Q3, a cost discipline that offsets the revenue drop. The operating expense reduction is driven by lower direct costs associated with the laboratory shutdown and a leaner workforce. This trade‑off is intended to improve the company’s margin profile as CyPath Lung scales.
Earnings per share fell short of analyst expectations. Consensus estimates for Q3 2025 were –$2.70, while the company reported –$4.74, a miss of $2.04 per share or 75% below consensus. The larger loss is largely attributable to a one‑time fair‑value adjustment to warrants and modest cost inflation that were not fully offset by the CyPath Lung revenue lift. The company’s net loss widened despite the revenue growth because the cost of the equity raise and the fair‑value loss on warrants were significant.
Management emphasized that the company’s liquidity position has improved and that the equity raise will extend the runway beyond the August 2025 cash projection. The focus remains on scaling CyPath Lung distribution and securing additional funding to bridge the liquidity gap. The company’s Q2 2025 report had highlighted going‑concern concerns, underscoring the importance of achieving profitability in the near term. The CEO stated, “Our primary focus was on driving the adoption of CyPath® Lung while maintaining fiscal discipline,” and added that the test’s growing integration into clinical practice is encouraging.
bioAffinity operates in a competitive lung‑cancer diagnostics market that is increasingly adopting AI‑driven solutions. The company has expanded its intellectual‑property portfolio with recent patent filings related to its diagnostic algorithm. In addition to the $10.4 million equity raise in Q3, the company completed a $1.8 million registered direct offering in October 2025 and a $3.25 million public offering in May 2025, all aimed at funding ongoing operations and growth initiatives. Analyst sentiment remains cautious, with a consensus “Hold” rating, reflecting the company’s current unprofitable status and the need for continued capital infusion.
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