NeoGenomics, Inc. Q3 FY2025 earnings call

• Delivered record clinical volumes and revenues in Q3, advancing NGS and MRD initiatives.
• Secured favorable court ruling for RaDaR ST assay, paving way for clinical launch in Q1 2026.
• Acquired Pathline, enhancing presence in Northeast, with integration proceeding as planned.
• PanTracer LBx launched in late July after delay to improve product profile, with EAP helping optimize launch.
• Continues R&D investments in MRD, including next-gen MRD research program.
• Focus on delivering superior customer experience in community setting with broad test menu.

Total revenue for Q3 was $188 million, representing 12% year-over-year growth. Clinical revenue showed strong double-digit growth, increasing by 18% year-over-year. Nonclinical revenue was down, accounting for less than 9% of total revenue in Q3. NGS revenue grew by 24% in Q3, contributing 33% of total clinical revenue. Total test volumes increased by 15% in Q3 with AUP growth of 3%. Same-store revenue without Pathline was $167 million, up 15% driven by 10% test volume growth and 4% AUP growth.

• Reiterated revised guidance for 2025: consolidated revenue $720 million to $726 million (9%-10% growth YOY), adjusted EBITDA $41 million to $44 million, net loss $116 million to $108 million (37%-47% increase vs 2024).
• Will release 2026 guidance when reporting full 2025 earnings in February 2026.

Q: How comfortable is Jeff with the guidance and update on PanTracer liquid?

A: Jeff feels they're in a good position to meet Q4 expectations, and PanTracer LBx didn't need MolDX approval to hit guidance.

Q: How is NGS growth driven, volume vs ASP?

A: NGS revenue growth is more volume-driven than ASP growth, with ongoing penetration and access via commercial channel.

Q: Thoughts on RaDaR adoption in pharma vs clinical?

A: Expect pharma revenue for MRD in 2026, with RaDaR adoption evolving in both sectors.

Q: Drivers of base clinical business acceleration?

A: Effective execution of protect, expand, acquire strategy, new products, and sales force expansion contributing to growth.

Q: AUP and competitive dynamics in NGS?

A: MolDX approval for RaDaR will impact AUP over time, and Neo's comprehensive portfolio differentiates in competitive NGS space.

Q: Levers to reduce COGS?

A: LENS consolidation, lab automation, digital pathology, and incremental volume in lab footprint help reduce COGS.

Q: Indications and reimbursement for RaDaR?

A: Currently pursuing subsets of head and neck and breast cancer indications, with plans to submit additional indications in 2026.

Q: NGS growth outlook for 4Q 2025 and 2026?

A: Expect continued good growth in NGS, but specific Q4 and 2026 targets not broken out in detail.