Freenome (NASDAQ:FRNM) Announces Earnings Results

Key Points

• Q3 revenue was $183.5 million and net income was $60.1 million, largely reflecting a one-time $180 million milestone payment tied to Abbott’s colorectal cancer test approval. Freenome expects only $2 million–$4 million in Q4 revenue and no meaningful testing revenue or royalties.
• FDA-approved SimpleScreen CRC began commercial sales through Abbott on September 30, and more than 2,000 clinical sites requested kits in its first month. The launch remains focused on provider education, payer negotiations and ordering workflows.
• Freenome launched a lung cancer lab-developed test and said its multiomics lung test received FDA Breakthrough Device Designation. It expects two more single-cancer data readouts in December and an asymptomatic multi-cancer readout in mid-2027.

Freenome (NASDAQ:FRNM - Get Free Report) announced its earnings results on Tuesday. The company reported $1.10 earnings per share for the quarter, Zacks reports.

Here are the key takeaways from Freenome's conference call:

• SimpleScreen CRC received FDA approval and Abbott began commercial sales on September 30; more than 2,000 clinical sites requested kits in the first month. The launch is still in an early setup phase focused on provider education, payer negotiations and ordering workflows, with no meaningful testing revenue expected in Q4.
• SimpleScreen CRC version 2 improved sensitivity for advanced precancerous lesions while maintaining about 80% CRC sensitivity at 90% specificity. Freenome plans a supplemental FDA filing by year-end, expects approval in the second half of 2027, and said approval and transfer to Abbott would trigger a $70 million milestone payment, currently expected in the first half of 2028.
• Freenome launched its lung cancer LDT, reporting 85% sensitivity, 82% sensitivity for stage 1 disease and a 99.8% negative predictive value; the multiomics lung test also received FDA Breakthrough Device Designation. The company expects two additional single-cancer data readouts in December and an asymptomatic multi-cancer readout in mid-2027.
• Q3 revenue was $183.5 million and net income was $60.1 million, driven largely by a one-time $180 million revenue recognition tied to Abbott’s CRC approval milestone. Freenome ended the quarter with about $430 million in cash and expects runway into 2028, but guided to just $2 million–$4 million of Q4 revenue and no meaningful testing revenue or royalties.

Freenome Price Performance

Shares of Freenome stock traded up $0.20 during trading hours on Tuesday, reaching $10.77. 700,332 shares of the company's stock were exchanged, compared to its average volume of 854,934. The firm has a fifty day moving average price of $14.36. The stock has a market capitalization of $1.16 billion, a P/E ratio of -179.47 and a beta of 0.60. Freenome has a 1 year low of $9.71 and a 1 year high of $17.50.

Analyst Upgrades and Downgrades

FRNM has been the subject of a number of research analyst reports. Wall Street Zen upgraded shares of Freenome to a "sell" rating in a research report on Saturday, September 26th. TD Cowen started coverage on shares of Freenome in a research report on Tuesday, August 18th. They issued a "buy" rating and a $17.00 target price on the stock. Weiss Ratings assumed coverage on shares of Freenome in a research note on Monday, August 24th. They set a "sell (d+)" rating for the company. Leerink Partners started coverage on shares of Freenome in a research report on Friday, August 14th. They set an "outperform" rating and a $18.00 price target for the company. Finally, BTIG Research initiated coverage on Freenome in a report on Monday, August 17th. They issued a "buy" rating and a $17.00 price objective on the stock. Five analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $18.00.

About Freenome

Freenome is a biotechnology company developing blood-based tests intended to detect cancer at earlier stages. Its approach combines analysis of biological signals—including DNA and other biomarkers—with computational tools to identify patterns associated with disease. The company's research has focused on multiomics screening, particularly for colorectal cancer. Freenome has evaluated its blood-based colorectal cancer test in clinical studies; the test is investigational, and its availability and regulatory status may vary.

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