How LUCD (Lucid Diagnostics) Makes Money in 2026: A Deep-Dive With Income Statement

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Understanding how a biotechnology company like Lucid (formerly N/A) makes money is essential for investors and anyone interested in the business of biotech. In this post, we break down Lucid's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick Lucid Overview

Lucid operates as a clinical-stage biopharmaceutical company focused on developing therapies for unmet medical needs, particularly in oncology and immunology. Revenue comes primarily from other income sources, such as grants, collaborations, or milestone payments typical in early-stage biotech firms. No detailed revenue segments are reported, reflecting its pre-commercial stage with limited product sales.

Revenue Breakdown

• Total Revenue (Q3 2025): $1.211B (+103227.6% YoY)
  • No specific segment breakdowns available; revenue likely driven by non-operating or grant-based inflows given the company's development focus.
  • Growth is powered by significant one-time or ramp-up events, evidenced by the explosive YoY increase, common in biotech during trial milestones or partnerships.

Gross Profit and Margins

• Gross Profit: $0.486B (40.1% gross margin)
  • Cost of Revenue: $1.697B (+100672.0% YoY)
  • Lucid maintains moderate margins due to high development-related costs outweighing revenue scale in this early phase, though the 40.1% margin shows efficiency in core revenue generation.
• Most costs come from cost of revenue (primarily R&D-tied production or service costs) and later operating expenses.

Operating Income and Expenses

• Operating Income: -$11.300B (N/A margin, reflecting heavy losses)
• Operating Expenses: $11.300B (+102690.2% YoY)
  • R&D: $1.272B (+76250.5% YoY, 105.0% of revenue) — Investments in clinical trials, drug discovery, and pipeline advancement for oncology and immunology programs.
  • SG&A: $9.896B (+106297.2% YoY, 817.2% of revenue) — Covers administrative, sales preparation, and general overhead as the company scales operations and prepares for potential commercialization.
  • Lucid continues to prioritize innovation while expanding operations, accepting operating losses to fuel long-term drug development breakthroughs.

Net Income

• Pre-Tax Income: N/A
• Income Tax: N/A (0% effective tax rate)
• Net Income: $10.4M (+83943.3% YoY, 858.5% net margin)
• Lucid converts a significant portion of sales into profit due to non-operating other income $10.3M, offsetting massive operating losses typical in biotech R&D phases.

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What Drives Lucid's Money Machine?

• Other Income: ~100%+ of net profitability / $10.3M in other income directly drives the positive net result amid operating deficits.
• Pipeline Development: R&D at 105% of revenue underscores heavy investment in clinical assets, with explosive YoY growth signaling accelerated trials.
• R&D Investments: Focus on high-risk, high-reward biotech innovations in oncology/immunology to build future revenue from approved therapies.
• Future growth areas: Commercial drug launches, though not yet profitable, as the company burns cash on development.

Visualizing Lucid's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A) taking the largest chunk.
• Even after large investments, 858.5% of revenue drops to the bottom line due to other income.

Key Takeaways

• Lucid's money comes overwhelmingly from other income sources
• High gross and net margins illustrate the power of Lucid's grant/collaboration funding model
• Heavy investment in R&D, balanced by efficiency in non-operating gains
• Ongoing growth is driven by clinical pipeline acceleration

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FAQ About Lucid's Income Statement

1. What is the main source of Lucid's revenue in 2025?

Lucid generates over 100% of its revenue from other sources like grants or collaborations. No traditional product sales segments are detailed, aligning with its clinical-stage biotech profile.

2. How profitable is Lucid in Q3 2025?

Lucid reported net income of $10.4M in Q3 2025, with a net margin of approximately 858.5%, reflecting strong profitability driven by other income despite operating losses from R&D.

3. What are the largest expense categories for Lucid?

The biggest expenses on Lucid's income statement are operating expenses, particularly Research & Development (R&D) and Sales, General & Administrative (SG&A) costs. R&D investment reached $1.272B in Q3 2025, as Lucid prioritizes clinical trials and pipeline development.

4. Why does the core business operate at a loss?

The core operations, despite generating $1.211B in revenue, posted an operating loss of over $11.300B in Q3 2025. This is because Lucid aggressively invests in R&D and SG&A for scaling biotech programs, believing these will drive long-term growth—even if unprofitable today.

5. How does Lucid's effective tax rate compare to previous years?

Lucid's effective tax rate in Q3 2025 was 0%, consistent with previous years. This low rate is primarily due to operating losses and biotech tax incentives.