MDXH

• Core Business Recovery and Execution: After sales force restructuring and integration of the ExoDX acquisition caused volume disruptions in Q4 2025 and Q1 2026, Q2 2026 delivered a 14% sequential revenue increase from Q1 ($3.3 million sequential growth, the largest quarter-over-quarter acceleration in company history), and a sequential increase of over 1,400 tissue-based tests, meeting management's recovery targets. The company achieved its aggressive goal of transitioning all former Resolve test customers to its core prostate cancer diagnostic menu by the end of Q2 2026. The elimination of the discontinued Resolve business allowed the company to remove a $10.4 million contingent liability to Novitas from its balance sheet via an organized wind down of the independent entity. The company strengthened its balance sheet via a $20 million registered direct financing with no discount or warrant structure, resulting in a pro forma cash balance of $39.2 million as of June 30, 2026.
• Clinical and Strategic Progress: Peer-reviewed data from the Oxford PROMPT study has been well-received by urology customers. The company is advancing the landmark Oxford PROTECT study, targeting NCCN level one evidence for its GPS test in the large active surveillance prostate cancer patient population, which makes up the majority of the prostate cancer diagnostic pathway. The company continues to expand AI initiatives to deliver incremental value for urology and pathology stakeholders, and has built strong, productive partnerships with pathology groups that are driving growth. The company's strategic focus is now exclusively on its high-growth urology market and core prostate cancer precision diagnostic franchise, following the exit from the Resolve UTI business.

• Management maintained full-year 2026 revenue guidance of $110 million to $115 million, representing 20% to 26% year-over-year total core revenue growth.
• Management reaffirmed that the company remains on track to return to positive adjusted EBITDA profitability by the end of 2026, exiting the year in positive adjusted EBITDA territory.
• Management expects broadly linear revenue progression from Q3 2026 to Q4 2026, with only minor potential seasonal fluctuation in Q3 due to typical patient and clinician vacation patterns, and continued acceleration of tissue-based test growth in the second half of 2026 that will return the segment to year-over-year growth.
• Management declined to issue formal 2027 guidance, but stated that it expects continued strong growth driven by ExoDX product line expansion, contributions from AI initiatives, and market adoption of GPS supported by new PROMPT and expected PROTECT clinical data.

MDX Health completed the wind down of its discontinued Resolve UTI testing business (including the Plano, Texas Delta Laboratories subsidiary) in Q2 2026, so all reported results only reflect continuing core prostate cancer diagnostic operations. Core total revenue for Q2 2026 was $27.2 million, a 16% increase year-over-year from Q2 2025. Tissue-based tests contributed 73% of total Q2 2026 revenue, down from 96% in the year-ago quarter following the ExoDX acquisition. The remaining 27% of revenue comes from liquid-based diagnostic tests from the acquired ExoDX line. Gross profit for Q2 2026 was $17.9 million, an 11% increase year-over-year, with a gross margin of 65.7% (a 2.9 percentage point decrease from 68.6% in Q2 2025, attributed to the new mix of tissue vs liquid tests).

• Prior operational risks from ExoDX integration: Sales force restructuring, territory reorganization, cross-training of new representatives, and customer remapping following the ExoDX acquisition caused volume disruptions in the second half of 2025 and first quarter of 2026, though these disruptions have now been resolved per management.
• Unanticipated reimbursement risks: The discontinued Resolve UTI test faced unexpected adverse reimbursement developments in April 2026 that led to the full exit from that business, representing a material unforeseen risk that disrupted the company's prior trajectory.
• Reimbursement and ASP risk: Broad industry-wide reimbursement uncertainty remains a factor for diagnostic testing companies, though management notes ASPs have been stable for MDX Health's core products.
• Remaining balance sheet obligations: The company still has outstanding debt and scheduled payments related to the ExoDX acquisition, though new financing has provided sufficient capital runway to cover these obligations.

Q: The analyst asks if prior tissue volume challenges stemmed from internal integration factors rather than competitive dynamics, and whether revenue growth through the second half of 2026 will be linear. / A: Management confirms the slowdown was entirely internal, caused by sales force restructuring and integration work post-ExoDX acquisition that temporarily diverted focus, not competition. Q2 results confirm the business is back to full focus on core products. Management expects broadly linear sequential acceleration through the second half, with only minor potential seasonal volatility in Q3 from clinician and patient vacation patterns.

Q: The analyst asks if the $10.4 million Novitas contingent liability from the Texas Medica case is fully removed from the balance sheet after closing the Plano lab, and what the $20 million new financing means for future capital needs. / A: Management confirms the liability has been fully removed after working with legal advisors and the company's lender, which is a significant de-risking of the business. Management expects consistent top-line growth with controlled operating expenses will allow the business to begin self-funding operations and obligations, and the new capital provides extended balance sheet runway with flexibility for future needs.

Q: The analyst notes tissue volume is still down year-over-year even with sequential growth, asks why faster year-over-year growth should be expected now that sales disruptions are resolved, and whether there is broad utilization weakness in the low-risk active surveillance segment. / A: Management explains Q2 2025 was the company's highest-ever tissue volume quarter for comparison, and Q2 2026 required the sales team to spend six weeks transitioning hundreds of former Resolve test customers, which distracted from core tissue sales. Full-year guidance already contemplates a return to accelerating year-over-year tissue growth in the second half, with growth driven by both market conversion of untreated active surveillance patients and share gain, with no underlying utilization headwinds in the segment.

Q: The analyst asks about the company's approach to inorganic tuck-in acquisitions after recent divestments and the new $20 million capital raise. / A: Management says the immediate near-term focus is entirely on executing the existing core growth opportunity to recover from the two to three quarter setback caused by the Resolve reimbursement issues. While the company consistently evaluates disciplined, attractively valued tuck-in opportunities that leverage its existing urology market infrastructure, no near-term inorganic moves are planned, and the company will remain disciplined as it evaluates options for 2027 and beyond.