Company: BLLN
Filing Date: 2025-12-10
Form Type: 10-Q
Source: 0001628280-25-056321
Chunk: 220

Company: BillionToOne, Inc.
Filing Date: 2025-12-10
Form: 10-Q
Item: Part I, Item 1
Chunk 220
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 some cases, ultimately may not receive payment.

We expect our revenue to increase over time as we expand our sales efforts, introduce new products, and contract with more payors. In addition, positive reimbursement decisions from insurance carriers would eliminate much of the uncertainty around payment and increase our overall revenue growth from ordering physicians.

Our clinical trial support and other services includes revenue from a strategic partnership with Johnson & Johnson that utilizes our testing capabilities as part of a project to perform clinical trials. Revenue from this strategic partnership agreement is recognized as services are performed and tests are delivered, as well as upon the achievement of certain milestones including (i) receipt of approval of the trial, which was achieved in 2023, (ii) various patient enrollment milestones, and (iii) subsequent full trial completion. Our revenue derived from this agreement has not been material to our results of operations.

For the three and nine months ended September 30, 2025, the Company recorded revenue of $3.7 million (or 4% of total revenues) and $8.7 million (or 4% of total revenues), respectively, as a result of changes in estimate resulting from higher than expected cash collections, due to higher than expected reimbursement rates and lower than expected disallowed claims, and the corresponding impact on our average selling price for tests delivered in prior periods.  For the three and nine months ended September 30, 2024, the Company recorded revenue of $1.4 million (or 4% of total revenues) and $10.2 million (or 9% of total revenues), respectively, as a result of changes in estimate resulting from higher than expected cash collections, due to higher than expected reimbursement rates and lower than expected disallowed claims, and the corresponding impact on average selling price for tests delivered in prior periods. 

Cost of revenue

Our cost of revenue consists primarily of expenses related to materials and consumables, test kits, personnel-related expenses such as salaries, stock-based compensation and related benefits for its operations and 

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support personnel, shipping costs, overhead allocations, depreciation expense, facilities-related expenses and other services used in connection delivering the Company’s services.

Gross profit and gross margin

Gross profit represents revenue less cost of revenue. Gross margin is gross profit expressed as a percentage of revenue. Our gross profit has been, and may in the future be, influenced by several factors, including test volumes and prices paid for our tests, changes in materials and consumables costs, laboratory processing costs, personnel costs, shipping, and logistics