Freenome, Inc. (FRNM)

Price$16.36Cached quoteAs of 2026-10-07 08:07 UTC

AI: Fair-priced

Price checkThe price reflects real progress but also assumes a successful, valuable commercial launch.

At the observed close, 107.45 million shares imply about $1.59 billion of equity value. The post-merger balance sheet held approximately $393.9 million of cash and securities; approval unlocked another $100 million payment, while a $41.7 million convertible note remained. Subtracting that net funding assigns roughly $1.14 billion to the operating business. This leaves little bargain cushion, but regulatory approval and funded operations make “Overvalued” too categorical. Fair-priced best reflects the exceptionally wide range of possible outcomes.

Big pictureThe old profit record does not describe the cancer-testing business investors now own.

The supplied history covers predecessor PCSC: its 2025 profit and 8.91 million shares primarily reflected interest from a merger trust, not cancer testing. The SEC treats the combination as a reverse acquisition, meaning Freenome Holdings becomes the historical operating company. That business generated only $6.5 million of first-half 2026 revenue, lost $132.6 million, and consumed $97.1 million of operating cash. Results will be driven by approvals, launches, and irregular partner payments rather than ordinary economic cycles, while durable cash earnings remain unproven.

Business strengthA first approved test and strong partners lower risk, but commercial proof is absent.

SimpleScreen CRC now has United States Food and Drug Administration approval, and Abbott will commercialize it. In pivotal data, the test found 81.1% of cancers and correctly returned negative results for 90.4% of people without cancer or advanced precancer, but detected only 13.7% of advanced precancers. Freenome receives a $100 million approval payment and may earn further milestones within a $700 million total package. The strongest bull case is Abbott-driven adoption; the bear case is weak uptake because royalties are capped at 10% and depend on product margins.

What could change the storySales uptake and funding discipline will decide whether today's optimistic expectations are earned.

Commercial results are the decisive test. As an illustration, valuing mature royalty profit at 20 times annual profit would require about $57 million yearly to support the roughly $1.14 billion operating value. At the maximum 10% royalty, that implies around $570 million of annual partner sales, before taxes, timing discounts, or pipeline value. Meanwhile, an August resale filing covered 75.2 million shares, including about seven million potential option and promised employee shares. Continued cash use near its $194 million annualized pace could eventually require more financing and dilution.

AI: News

Public-market debutThe merger delivered fresh cash and created the public stock investors now trade.

Freenome completed its combination with Perceptive Capital Solutions on July 20, 2026, and trading under FRNM began July 21. The transaction raised $310.7 million before costs and approximately $295.5 million after costs, including $240 million from private investors. It also expanded outstanding shares to 107.45 million. The funding supports development and commercialization, but the many newly issued shares mean comparisons with the predecessor’s historical per-share figures are misleading.

First test approvedThe first approved test opened a sales path and unlocked a large partner payment.

The regulator approved SimpleScreen CRC on July 24, 2026, for average-risk adults aged 45 and older; Freenome announced it July 27. Abbott plans a United States launch, and the approval triggered a $100 million partner payment. Reuters reported the shares rose about 4% that morning, although timing alone cannot establish sole causation. Approval converts the colorectal program from development work into a potential royalty stream, but adoption, reimbursement, and repeat testing volumes remain unmeasured.

Lung review acceleratedFaster regulatory review could expand the pipeline, but approval and sales remain uncertain.

On August 12, 2026, SimpleScreen Lung received Breakthrough Device designation for certain high-risk adults aged 50 to 80 who are not receiving recommended lung screening. Freenome cited an eligible-population screening rate of only about 18%, indicating a substantial access gap. The designation provides closer regulator interaction and prioritized review; it is not product approval. Successful clinical validation could add a second major market, while disappointing results would weaken the pipeline value currently embedded in the shares.

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Revenue

2024

2025

Net income

2024

2025

Free cash flow

2024

2025

Total cash / debt

CashTotal debt

2024

2025

Financial statements

	2025	2024
Revenue	$30.4M	$2.9M
Research & development	$197.1M	$225.7M
Operating expenses	$251.9M	$494,005
Operating income	−$3.0M	−$494,005
Operating margin	−9.80%	−17.14%
EBITDA	−$192.2M	−$258.6M
EBITDA margin	−631.94%	−8,971.34%
Net income	$837,468	$1.9M
Net profit margin	2.75%	66.29%
Basic EPSper basic share	—	-$2.65
Diluted EPSper diluted share	—	-$2.65