Shares of bioAffinity Technologies, Inc. (BIAF Quick QuoteBIAF - Free Report) have lost 10.9% since the company reported earnings for the quarter ended March 31, 2026, against the S&P 500 Index’s 1.4% gain over the same time frame. Over the past month, the stock plunged 35.5%, underperforming the S&P 500’s 6.8% gain.

bioAffinity’s Earnings Snapshot

bioAffinity reported first-quarter 2026 revenues of $1.4 million, down 27.1% year over year from $1.9 million, primarily due to the discontinuation of certain lower-margin pathology services in March 2025. However, CyPath Lung testing revenue climbed 113.6% year over year to $361,000 from $169,000, while CyPath Lung unit sales surged 146%. Net loss widened to $3.6 million, or 81 cents per share, from $2.7 million, or $4.80 per share, in the prior-year quarter.

Selling, general and administrative expenses increased 32.2% to $3.2 million from $2.5 million, while clinical development costs jumped 141.4% to $0.3 million from $0.1 million as the company advanced its pivotal clinical trial. Direct costs and expenses declined 32.1% year over year to $0.9 million from $1.4 million due to strategic cost-reduction actions implemented in March 2025. Research and development expenses fell 4.8% to $0.3 million from $0.4 million, reflecting lower compensation and laboratory supply costs. Operating expenses rose 10.9% year over year to $4.9 million from $4.5 million.

BIAF’s Expanding Physician Adoption and Commercial Activity

bioAffinity highlighted continued adoption of CyPath Lung among physicians and clinics during the quarter. The number of physician offices and clinics ordering the test rose 69% year over year, reflecting expansion of the company’s sales force and targeted commercial initiatives. Management said it expects growth to accelerate through the remainder of 2026 as awareness of the noninvasive lung cancer diagnostic increases.

BIAF also hosted its first educational webinar on April 8, featuring pulmonologists discussing real-world use cases for CyPath Lung. Management cited multiple patient case studies in which CyPath Lung results categorized as “Unlikely Malignancy” helped avoid unnecessary invasive biopsies for high-risk patients whose imaging initially suggested possible cancer.

Segment-wise, laboratory services generated $1.4 million in revenues compared with $1.9 million a year earlier, while diagnostic research and development contributed $1,131 from Department of Defense observational studies. Laboratory services recorded an operating loss of $1.8 million compared with $2.3 million in the prior-year quarter.

bioAffinity’s Clinical Trial and Pipeline Developments

During the quarter, bioAffinity launched a large-scale longitudinal clinical trial partially funded by the U.S. Department of Defense to further validate CyPath Lung and support broader adoption at military and Veterans Administration (VA) medical centers. The study is expected to include up to 20 clinical sites, including VA hospitals and military medical centers. BIAF enrolled its first patient in March 2026.

The company is also advancing companion diagnostics using its flow cytometry and AI platform. Brooke Army Medical Center initiated a 40-patient collaborative study evaluating whether bioAffinity’s platform can identify biologic drug receptors in sputum samples to guide asthma and COPD therapy selection and monitor patient response. Early findings from these initiatives were presented at the American Academy of Allergy, Asthma and Immunology 2026 annual meeting.

Additionally, bioAffinity expanded its Medical and Scientific Advisory Board with nationally recognized pulmonary and lung cancer experts from MD Anderson Cancer Center, NYU Langone Medical Center and the University of Wisconsin School of Medicine and Public Health.

BIAF’s Management Commentary and Financial Position

President and CEO Maria Zannes said first-quarter results reflected continued momentum for CyPath Lung as physician adoption expands. Zannes emphasized BIAF’s strategy to broaden commercial reach, strengthen physician engagement and position CyPath Lung as part of the standard of care for evaluating indeterminate lung nodules.

Despite growing CyPath Lung demand, bioAffinity continued to face liquidity pressures. Cash and cash equivalents fell to $3.1 million as of March 31, 2026, from $6.4 million as of Dec. 31, 2025. Net cash used in operating activities increased to $3.2 million from $1.6 million a year earlier. Management stated that existing cash resources are expected to support operations only through June 2026 and reiterated that substantial doubt exists regarding BIAF’s ability to continue as a going concern without additional financing.

bioAffinity’s Other Developments

The company disclosed several financing and capital-related developments during and after the quarter. In May 2025, bioAffinity entered into an at-the-market equity sales agreement under which it had raised approximately $1.2 million in gross proceeds through March 31, 2026. The company also converted additional shares of its Series B convertible preferred stock into common shares in May 2026.

Separately, bioAffinity signed a new lease agreement in April 2026 for additional research and development laboratory space extending through June 2031.