Company: BLLN
Filing Date: 2025-12-10
Form Type: 10-Q
Source: 0001628280-25-056321
Chunk: 509

Company: BillionToOne, Inc.
Filing Date: 2025-12-10
Form: 10-Q
Item: Part I, Item 2
Chunk 509
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D test from more payors. Furthermore, our ASPs for our Northstar 

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Select oncology test increased as Medicare began to reimburse for this test during the first quarter of 2025, and we began to bill for our Northstar Response oncology test for the first time at the beginning of 2025.

Cost of revenue

Cost of revenue increased $16.9 million, or 32%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was primarily due to an increase of $8.8 million in expenses associated with testing samples and supplies used in processing tests, phlebotomy, and related shipping costs, driven by a higher volume of tests processed; and an increase of $7.8 million in labor and consulting related expenses, including stock-based compensation, which were driven by higher test volumes and an increase in product support.

Gross profit and gross margin

Gross profit increased $84.7 million, or 153%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was primarily due to an increase in tests processed and a higher ASP in conjunction with a lower cost per test as we continued to actively reduce variable expenses and increase efficiency from our fixed costs.

Gross margin increased from 51% for the nine months ended September 30, 2024 to 67% for the nine months ended September 30, 2025 for the reasons described above.

The increase in our Overall ASP contributed to approximately 80% of the improvement of our gross margin for the  nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. Decreases in Overall Cost Per Test contributed to approximately 20% of the improvement in gross margin for the nine months ended September 30, 2025.

For the nine months ended September 30, 2025, our cost of goods sold consisted of 56% of variable costs and 44% of fixed costs and for the nine months ended September 30, 2024 our cost of goods sold consisted of 55% of variable costs and 45% of fixed costs. The increase in variable costs during the period is attributable primarily to an increase in test volume from prenatal testing, partially offset by efficiencies gained in in our lab from the increased test volume in both prenatal and oncology testing.

Operating expenses

Research