Biodesix, Inc. Q2 FY2025 earnings call

Goals and Progress - In 2025, focus on growing top line revenue, improving operational effectiveness for positive adjusted EBITDA in Q4, and advancing pipeline. - Q2 saw 12% Y/Y revenue growth, 80% gross margin (up 150bps), and clinical data on pipeline products. ### Lung Diagnostics Sales Strategy - Implemented territory-based sales strategy with 49 territories, anchored by pulmonology sales reps with support from primary care and associate reps. - First class of primary care sales reps entered field in late June, with primary care ordering of lung tests up over 100% vs 2024 pilot levels. - Digital ordering increased 63% Y/Y, with 40% higher customer retention in offices using digital ordering. ### Clinical Data and Pipeline - Presented health economic and outcomes research data on Nodify at ISPOR 2025 and ATS 2025. - ALTITUDE study closed patient enrollment in July 2025, with 1-year follow-up ongoing. - Pipeline presentations included combination genomic and proteomic MRD test at AACR, VeriStrat in immunotherapy at ASCO, and VeriStrat in hormone-resistant cancer at ASMS. ### Development Services - Delivered $2.1M revenue in Q2, up 53% Y/Y, with $12.5M under contract (all-time high), and recognized as a key collaborator in Thermo Fisher's NGS assay FDA approval.

Lung diagnostic testing revenue in Q2 2025 was $17.9 million from approximately 15,100 tests, up 8% from Q2 2024 with 9% growth in test volumes. Development Services revenue was $2.1 million in the quarter, growing 53% year-over-year, with $12.5 million under contract, an all-time high. Gross margin was 80% in Q2 2025, up 150 basis points from Q2 2024.

- Maintained revenue guidance of $80 million to $85 million for the year. - Expect to achieve adjusted EBITDA positivity in the fourth quarter due to strong gross margins, sales team expansion, and rep productivity.

- HEDIS quality measures put on hold for 2025, which could have impacted test volume if implemented. - Macroeconomic uncertainties and supply cost increases could affect financial performance.

Q: Andrew Brackmann asks about the primary care opportunity and why more confident now vs pilot.

A: Scott Hutton says confidence grows with broader/deeper experience, reaffirming pilot learnings; pulmonologists support the strategy, and they'll continue providing progress reports.

Q: Andrew Brackmann asks about electronic ordering utilization.

A: Scott Hutton says majority use fax, portal/EMR integration improves compliance and test order accuracy; portal use leads to significant improvement in compliance.

Q: Bill Bonello asks about EBITDA positivity and Development Services growth.

A: Robin Harper Cowie says EBITDA positivity in Q4 driven by revenue growth, no major cost-cutting; Development Services typically sees uptick in Q4 due to pharmaceutical budget cadence.

Q: Thomas Flaten asks about pulmonology growth vs primary care.

A: Scott Hutton says some pulmonology practices may see less growth as ordering moves to referral networks, but collective growth as new pulmonologists are onboarded.

Q: Alex Vukasin asks about primary care volume mix and HEDIS impact.

A: Scott Hutton says HEDIS on hold for 2025, disappointed but tests work in both screening and incidentally found nodules; no ideal volume mix goal, focus on being predominant player for pulmonologists.

Q: William Ruby asks about capital needs and primary care rep productivity.

A: Robin Harper Cowie says focused on cash flow breakeven; Scott Hutton says confidence from pilot, primary care reps on similar trajectory, potential for higher productivity with upside.