Biodesix, Inc. Q1 FY2026 earnings call

Bioethics delivered strong first quarter 2026 results with continued momentum. Focus in 2026 is on driving top-line growth, improving operational efficiency, and advancing pipeline. Diagnostic testing revenue grew 37% due to test volume growth and improved ASPs. Development services revenue nearly doubled. Gross margin improved due to scale, diagnostic testing growth, pricing, and workflow optimization. Operating expenses increased 18% to support revenue growth. R&D expense increased 14%. Net loss improved 30%, adjusted EBITDA loss improved 35%. Cash balance was $25.6 million.

Total revenue for the quarter was $25.6 million, representing 42% growth year-over-year. Diagnostic testing revenue was $22.3 million, an increase of 37% year over year, driven by accelerating test volume growth (29% year over year) and improved ASPs. Test volumes from primary care now represent 15% of total tests. Development services revenue for the quarter was $3.3 million, an increase of 99% year-over-year, driven by delivery against contracted programs and new agreements. Gross margin for the quarter was 84% on a gap basis and 82% excluding a one-time sales and use tax recovery, representing a 300 basis point improvement year over year.

Raised full-year 2026 revenue outlook to $108 to $114 million. Expect continued progress toward adjusted EBITDA profitability driven by sales productivity, clinical evidence, development services pipeline, and operating leverage.

Need to review forward-looking statements and risks in SEC filings. Impact of weather/storms on FedEx hubs affecting Q1 revenue.

Q: Andrew Breckman asked about commercial team learnings and transferability of primary care volume growth.

A: Robin Harper-Cowie discussed best practices sharing, transferability of learnings across territories.

Q: Thomas Flatton asked about PCPs' comfort with test results and screening.

A: Scott Hutton and Robin Harper-Cowie talked about PCPs' comfort with test results and screening challenges.

Q: John Wilkin asked about guide breakdown for development services and ASP expansion.

A: Robin Harper-Cowie discussed development services consistency and volume as growth driver.

Q: Kyle Mixon asked about pipeline and reinvestment.

A: Scott Hutton talked about pipeline timing, reinvestment in commercial expansion.

Q: Dan Brennan asked about Q1 revenue impact of weather.

A: Answered about weather impact on FedEx hubs affecting Q1 revenue