BIAF Stock Down Following Q2 Earnings Despite CyPath Lung Growth

Shares of bioAffinity Technologies, Inc. BIAF have dipped sharply since its second-quarter 2025 earnings release. The stock has lost 11% since the company reported results for the quarter ended June 30, 2025, compared with a 1.1% decline in the S&P 500 Index over the same period. Over the past month, bioAffinity shares have plunged 27.4%, while the S&P 500 gained 1.5%.BIAF’s Earnings SnapshotFor the second quarter of 2025, bioAffinity reported revenues of $1.3 million, a 47.1% decline from $2.4 million in the prior-year quarter, primarily due to its decision to discontinue unprofitable pathology services and focus resources on its flagship CyPath Lung diagnostic test. However, CyPath Lung itself posted encouraging momentum, with testing revenue rising 62.3% year over year in the first half of 2025 to $323,000 from $199,000, reflecting growing physician adoption.Operating expenses in second-quarter 2025 decreased 15.6% to $3.8 million from $4.5 million a year earlier, driven by a reduction in direct costs and a decline in research and development spending. Despite these cost improvements, BIAF’s net loss widened to $4.1 million, or $0.17 per share, from a loss of $2.1 million, or $0.19 per share, in the second quarter of 2024. The deeper loss was primarily attributable to $1.5 million in non-cash expenses linked to warrant remeasurement and costs from a May 2025 public offering.bioAffinity’s Other Key Business MetricsBIAF highlighted meaningful improvements in cost efficiency. Direct costs fell 27.8% year over year, reflecting savings from initiatives rolled out in March 2025. Research and development spending decreased 22.6% to $0.3 million from $0.4 million, but clinical development expenses surged 151.2% to $129,279 from $51,462, as bioAffinity ramped up professional fees tied to advancing CyPath Lung toward pivotal trials. Selling, general and administrative expenses were trimmed 10.4% to $2.2 million from $2.5 million, largely through efficiencies gained after integrating Precision Pathology Laboratory Services. Depreciation and amortization also declined 25% year over year.On the balance sheet, cash and equivalents stood at $0.8 million as of June 30, 2025, versus $1.1 million at year-end 2024. To shore up liquidity, BIAF completed a $3.25 million public offering in May. Still, the accumulated deficit widened to $60.4 million, and the total stockholders’ deficit was $2.1 million.bioAffinity Technologies, Inc. Price, Consensus and EPS Surprise bioAffinity Technologies, Inc. price-consensus-eps-surprise-chart | bioAffinity Technologies, Inc. QuoteBIAF’s Management CommentaryCEO Maria Zannes emphasized that second-quarter results reflect the acceleration of the CyPath Lung commercialization strategy. Zannes noted growing physician adoption supported by real-world case studies showing the test’s ability to detect early-stage lung cancers that other diagnostics missed. bioAffinity’s pilot marketing program in Texas—home to about 6% of U.S. pulmonologists—has been particularly successful, encouraging expansion into the Mid-Atlantic region and the Veterans Administration healthcare system.Zannes also pointed to steps taken to strengthen financial footing, including the price increase for CyPath Lung to $2,900, which aligns with private payer reimbursement, and the logistics partnership with Cardinal Health OptiFreight to improve national sample delivery reliability. She highlighted the addition of Dr. Gordon Downie as chief medical officer and the expansion of the intellectual property portfolio through new patents in the United States, China, Canada and Australia.Factors Influencing bioAffinity’s ResultsThe year-over-year revenue decline was largely due to the strategic exit from lower-margin pathology services to concentrate on high-margin diagnostics. At the same time, CyPath Lung gained traction with back-to-back record sales in June and July. Rising clinical development costs underscore management’s focus on long-term growth by advancing pivotal trials. However, the larger net loss reflects external financing costs, specifically warrant-related charges from the May public offering.BIAF’s GuidanceWhile no formal numerical guidance was provided, management reaffirmed its focus on expanding access to CyPath Lung and driving operational efficiency. Zannes underscored the goal of broadening distribution into new regions and health systems, while also advancing the company’s next-generation diagnostic and therapeutic platforms, including siRNA-based therapies showcased at the 2025 RNA Therapeutics Conference.bioAffinity’s Other DevelopmentsBeyond financial results, bioAffinity bolstered its leadership and strategic assets during the quarter. Dr. Downie’s appointment adds seasoned pulmonology expertise. The company also secured several new international patents, broadening global protection for its diagnostics and therapeutics. This includes a newly issued U.S. patent that covers a broad-spectrum cancer therapy targeting CD320 and LRP2 receptors.Additionally, Zannes was named to the American Lung Association in Texas Leadership Board, reinforcing bioAffinity’s advocacy role in lung health.Free Report: 3 Software Stocks Poised to SkyrocketSoftware stocks are poised to catapult higher in the coming months (and years) thanks to several factors, especially the explosive growth of AI. Zacks' urgent report reveals 3 top software stocks to own right now.Access the report free today >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report bioAffinity Technologies, Inc. (BIAF): Get Free ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks