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BLLN · BillionToOne

Conviction · Medium · more likely to lead the S&P 500 over the next three months, by a modest margin

Wrong if: a daily close below $94.44

Note written ·

Price against the kill line

11.3% clear of its kill line on the 13 November 2026 close.

How to read this

The red mark is the price level of the published kill line: a close through it (a weekly close, on a weekly line) would prove the research note wrong on price. The dot is where the stock closed on 13 November 2026; a dot left of the mark has closed through its line.

The scale is stretched near the line, so close calls are easy to see. More than 8% from the line, the stock reads well clear, with a hollow dot to show the figure is off the drawn scale.

The kill line is the research note's own test. The portfolio sells on business facts, not on a price. How the portfolio decides

BLLNBillionToOne
$94.44
$105.15
11.3%well clear

Three months against the kill line

BLLN daily closes from 17 August 2026 to 13 November 2026, last $105.15, against its kill line: a daily close below $94.44. 17 August 2026: $93.9118 August 2026: $87.9919 August 2026: $91.6720 August 2026: $95.2721 August 2026: $95.0324 August 2026: $96.7425 August 2026: $100.0826 August 2026: $96.2227 August 2026: $95.1528 August 2026: $93.2431 August 2026: $90.671 September 2026: $92.322 September 2026: $96.153 September 2026: $99.504 September 2026: $99.398 September 2026: $99.069 September 2026: $99.1610 September 2026: $98.5111 September 2026: $98.7714 September 2026: $100.8215 September 2026: $104.2716 September 2026: $103.6117 September 2026: $110.6718 September 2026: $105.9221 September 2026: $103.8622 September 2026: $116.0723 September 2026: $114.4224 September 2026: $124.9025 September 2026: $123.0828 September 2026: $121.7229 September 2026: $118.1830 September 2026: $106.441 October 2026: $105.762 October 2026: $105.905 October 2026: $109.066 October 2026: $99.947 October 2026: $95.758 October 2026: $95.419 October 2026: $98.0912 October 2026: $93.0713 October 2026: $94.4414 October 2026: $97.8815 October 2026: $102.7316 October 2026: $98.1219 October 2026: $101.0320 October 2026: $103.5021 October 2026: $104.6722 October 2026: $105.6823 October 2026: $107.7726 October 2026: $111.4727 October 2026: $114.0728 October 2026: $114.0029 October 2026: $114.8430 October 2026: $113.322 November 2026: $110.413 November 2026: $110.454 November 2026: $113.895 November 2026: $112.396 November 2026: $113.949 November 2026: $114.9510 November 2026: $112.0011 November 2026: $110.2312 November 2026: $110.7913 November 2026: $105.15

Daily closes, to . Red: the kill line, a daily close below $94.44, on record since 10 November 2026. The shares are up 12.0% since the close; the S&P 500 is down 2.1% over the same sessions. Figures in the note can cover a different window.

Kill line

A daily close below $94.44, the 13 October 2026 closing low, which would erase the rebound from October. Full-year 2026 revenue below the $460 million low end of guidance, or a fourth-quarter operating loss, would also show the case failing.

Research onlyNot in the portfolio.

The portfolio's record →

Key figures from the filings · Health Care

Quarter to 30 September 2026, filed 4 November 2026; valuation at the 13 November 2026 close

Revenue, latest quarter ($M)
123
Revenue, change on a year (%)
+47.2
Gross margin (%)
70.9
Operating margin (%)
9.0
Free cash flow, four quarters ($M)
33.9
Net cash, cash less debt ($M)
473
Price to earnings (×)
114.4
Enterprise value to sales (×)
11.9
All filed numbers

What BillionToOne reports to the SEC in its quarterly and annual filings. Each group states its period and filing date once; a figure dated otherwise says so. Built from the filings known on .

Results by quarter Each quarter with the day its figures were first filed, and the day of a later filing that changed them
Quarter to Revenue ($M) On a year (%) Gross margin (%) Operating margin (%)
first filed 123 +47.2 70.9 9.0
first filed 109 +64.4 70.5 5.0
first filed 108 +83.8 73.0 16.5
first filed 96.1 +113.1 71.4 10.8
first filed 83.5 +117.4 69.9 11.5
first filed 66.6 — 65.3 −2.4
Income Quarter to 30 September 2026, filed 4 November 2026
Pre-tax income ($M) 17.4
Net income ($M) four quarters: 49.4 17.4
Diluted shares, change on a year (%) against the quarter to 30 September 2025 +245.1
Cash flow Four quarters to 30 September 2026, filed 4 November 2026
Operating cash flow ($M) 47.9
Capital spending ($M) 14.0
Free cash flow ($M) 33.9
Balance sheet At 30 September 2026, filed 4 November 2026
Cash and short-term investments ($M) 562
Debt ($M) long-term debt 89.0
Net cash, cash less debt ($M) 473
Deferred revenue ($M) −29.6% on a year 1.9
Backlog, orders not yet delivered ($M) at 30 September 2025, filed 10 December 2025 4.7
Receivables ($M) 88.3
Inventory ($M) 21.9
Shareholders' equity ($M) 567
Valuation At the 13 November 2026 close, filed figures to 4 November 2026
Market value ($M) 5,650
Enterprise value, market value plus net debt ($M) 5,177
Enterprise value to sales (×) 11.9
Enterprise value to operating income (×) 115.8
Price to earnings (×) 114.4
Price to book value (×) 10.0
Free-cash-flow yield (%) 0.6

Short interest (FINRA, settled 15 October 2026, published 26 October 2026): 5.5% of shares outstanding sold short, 5.5 days of average trading to cover, +4.0% since the previous report.

Insiders' open-market trades SEC Form 4, by trade date, to
Window Bought Sold
90 daysfrom $0 $26.7M
12 monthsfrom $0 $58.5M

The thesis

BillionToOne is more likely than not to beat the S&P 500 over the next three months. The company beat and raised in its third-quarter report of 4 November 2026, and it is profitable with $561.5 million in cash. The fourth-quarter 2026 report, expected around March 2027, tests whether growth that slowed from 64% to 47% holds above the guided path.

Third-quarter revenue was $123.0 million, up 47% from $83.5 million a year earlier. Full-year 2026 revenue guidance rose to $460–470 million from $450–465 million. Prenatal testing revenue was $104.3 million (up 41%), oncology revenue was $17.1 million (up 96%), tests delivered were 206,000 (up 25%), gross margin was 71% and income from operations was $11.0 million, all per the 8-K filed 4 November 2026.

The shares closed at $110.79 on 12 November 2026, up 18.7% over three months and 26.4% below the 52-week intraday high of $150.44 set on 5 August 2026. They have drifted down from $114.95 on 9 November 2026 and sit above the 50-day average of $106.88 and the 200-day average of $97.54. The market is paying for continued profitable growth after a 36% drop that followed the second-quarter report in August, as one outlet reported.

Bullish and bearish views on BillionToOne, Inc.

The bull case on BillionToOne, Inc. (BLLN), in brief: the quarter beat and guidance rose. The bear case: growth is slowing.

Bull case

  • The quarter beat and guidance rose. Revenue of $123.0 million compares with $109.4 million in the second quarter. The company describes the raised 2026 guide as 51% to 54% growth over 2025.
  • Profit is larger and the company says it will last. Income from operations was $11.0 million in the third quarter, against $5.5 million in the second quarter and $9.6 million a year earlier. Net income was $17.4 million, or $0.32 per diluted share. The company said it expects profitability "similar to current levels, even with significant continued investments."
  • Oncology is still nearly doubling. Oncology revenue was $17.1 million, up 96% from $8.7 million, per the 8-K. A peer-reviewed study reported on 7 October 2026 found the tissue-free Northstar Response test matched a tumor-informed assay on tumor-burden direction in 67 of 71 sequential pairs (94%).
  • Sell-side targets sit above the price after the report. JPMorgan raised its target to $135 with an Overweight rating on 5 November 2026. BTIG reiterated Buy with a $130 target the same day. Piper Sandler kept Overweight on 10 November 2026 with a $130 target.
  • Cash funds the growth. Cash and equivalents were $561.5 million at 30 September 2026, per the company's results release.

Bear case

  • Growth is slowing. Revenue growth fell to 47% from 64% in the second quarter. Tests delivered rose 25% against 35%, and oncology growth eased to 96% from 176%.
  • Part of the beat was one-time. An independent earnings review (finsee.ai) reported a $7.6 million revenue true-up from one payer in the third quarter. The same review calculates that the guidance midpoint implies fourth-quarter growth of about 29%. The company says guidance includes true-ups already booked this year and excludes any in the fourth quarter.
  • Insiders keep selling. Chairman and CEO Oguzhan Atay sold 30,335 shares at an average of $109.93 on 2 November 2026, and CTO David Tsao sold 20,000 shares at an average of $109.24 the same day, both under Rule 10b5-1 plans (SEC Form 4, filed 4 November 2026). Atay also sold 11,000 shares at $118.00 on 28 October 2026. A director's Form 4 filed 12 November 2026 reports an other acquisition or disposition of 614,358 shares on 9 November 2026.
  • One analyst lowered a target after the report. Piper Sandler lowered its price target to $130 on 10 November 2026 while keeping Overweight.
  • The shares are fading from the post-report high. The close slid from $114.95 on 9 November 2026 to $110.23 on 11 November 2026 before $110.79 on 12 November 2026.
  • The August drop is not fully explained. The shares fell sharply after the second-quarter report of 5 August 2026, which one outlet attributed to a beat with no guidance raise. The raise in November addressed that complaint, but the market has not yet rated the slower growth.

Price setup

The last close is $110.79 (12 November 2026). The 50-day average is $106.88 and the 200-day average is $97.54, both on adjusted closes as of that date. The 52-week intraday high is $150.44 (5 August 2026), and the 52-week closing low is $64.03 (12 March 2026).

The three-month reference close was $93.33 on 14 August 2026, so the 18.7% gain covers the period after the August drop. The October low, a closing low on 13 October 2026, is the level below which that rebound would be erased.

The company listed on Nasdaq on 6 November 2025, so ranges and averages cover about a year of trading.

Catalysts ahead

  • ~1 March 2027 (est.): Fourth-quarter and full-year 2026 results report (date not yet announced). Shows whether revenue lands inside the $460–470 million guided range, whether growth holds above the roughly 29% fourth-quarter rate an independent review calculates, and whether operating income stays positive.

What would change the view

A daily close below $94.44, the 13 October 2026 closing low, which would erase the rebound from October. Full-year 2026 revenue below the $460 million low end of guidance, or a fourth-quarter operating loss, would also show the case failing.

The risks this note tracks, each with what would confirm it:

  • Revenue growth keeps slowing toward the roughly 29% fourth-quarter rate that an independent review calculates from the guidance midpoint. Confirmed by: a fourth-quarter report with revenue growth below 30% or full-year revenue below the $460 million low end of guidance.
  • The third-quarter beat leaned on a one-time payer true-up, so underlying revenue is weaker than the headline. Confirmed by: management saying on the fourth-quarter call that the $7.6 million true-up explains most of the third quarter's upside.
  • Operating expenses rise faster than revenue and erase the $11.0 million quarterly operating income. Confirmed by: an operating loss or sharply lower income from operations in the fourth-quarter report.
  • Continued insider selling under Rule 10b5-1 plans caps the rebound. Confirmed by: further Form 4 sales by executives following those filed 4 November 2026 for sales on 2 November 2026.
  • Final CMS 2027 lab fee rates reverse the favourable preliminary changes. Confirmed by: a final CMS clinical laboratory fee schedule that cuts rates for BillionToOne tests.

What it trades with

BillionToOne trades with prenatal and cancer diagnostics peers and with growth-oriented healthcare shares more than with the broad market. CareDx was named alongside it in the 23 September 2026 Benzinga report on Medicare lab fee changes, and Centers for Medicare & Medicaid Services (CMS) rate decisions move both. Earnings reactions have been large in both directions: the shares fell sharply after the second-quarter report on 5 August 2026 and rose after the third-quarter report on 4 November 2026.

The evidence, claim by claim (8)
  1. Third-quarter 2026 revenue was $123.0 million, up 47% from $83.5 million; prenatal revenue $104.3 million (up 41%), oncology $17.1 million (up 96%), 206,000 tests delivered (up 25%). BillionToOne third-quarter 2026 results, Form 8-K · as of
  2. Income from operations was $11.0 million versus $9.6 million a year earlier; net income $17.4 million, $0.32 per diluted share; gross margin 71%. BillionToOne third-quarter 2026 results, Form 8-K · as of
  3. Full-year 2026 revenue guidance raised to $460–470 million (51% to 54% growth) from $450–465 million. BillionToOne third-quarter 2026 results, Form 8-K · as of
  4. Cash and cash equivalents were $561.5 million. BillionToOne third-quarter 2026 results release · as of
  5. Second-quarter revenue was $109.4 million, up 64%, with operating income of $5.5 million. BillionToOne second-quarter 2026 results release · as of
  6. JPMorgan raised its price target to $135 with an Overweight rating; BTIG reiterated Buy with a $130 target. JPMorgan and BTIG analyst notes, company news · as of
  7. Piper Sandler maintained Overweight on BillionToOne and lowered its price target to $130. Analyst-action news, Piper Sandler · as of
  8. CEO Oguzhan Atay sold 30,335 shares at an average of $109.93 and CTO David Tsao sold 20,000 shares at an average of $109.24 on 2 November 2026 under Rule 10b5-1 plans. SEC Form 4 filings filed 4 November 2026 · as of

Sources

Related · shared themes

See also · stocks to watch

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