NEOGENOMICS INC Q1 FY2025 earnings call

• Tony Zook thanked teammates and discussed the company's mission-driven culture, stating that NEO's patient-centric culture and financial discipline remain, with increased focus on innovation through R&D, business development, and commercialization of new products. • Warren Stone noted clinical volumes grew 8% with NGS revenue growth of 18%, launched 5 NGS products since Q1 2023 accounting for 22% of clinical revenue, and discussed expansion of commercial resources and upcoming product launches like PanTracer liquid biopsy. • Andrew Lukowiak talked about product development including completion of PanTracer liquid biopsy analytical validation, rebranding of on-market NEO comprehensive NGS panel to PanTracer Tissue, and progress on MRD research including RaDaR 1.1 and next-gen MRD. • Jeff Sherman discussed financial results, noting adjusted EBITDA of $7.1 million, revenue growth, impact of Pathline acquisition on 2025 financials, and headwinds in non-clinical business due to macro factors.

In the first quarter, revenues were $168 million. Clinical testing volumes increased 8% versus prior year with a 3% increase in revenue per test. NGS revenue grew 18% in Q1. Non-clinical revenue declined by $3.4 million or 15.8%. NGS products launched since Q1 2023 account for 22% of total clinical revenue in Q1.

• Raised full-year 2025 revenue guide to $747 million to $759 million (13% to 15% growth) while reaffirming adjusted EBITDA guide of $55 million to $58 million. • Pathline expected to lower AUP, adjusted gross margins, and adjusted EBITDA in 2025 but accelerate volumes, revenue, and earnings growth in 2026 and beyond. • Expect pharma revenue to decline in 2025 but offset by incremental clinical revenue growth. • Q2 2025 revenue expected to be in the range of $183 million to $187 million with adjusted EBITDA of $9 million to $11 million.

• Macro factors including tariffs and uncertainty regarding NIH budget and grants impacting non-clinical business revenue. • Pharma trials utilizing RaDaR 1.0 wrapping up and inability to sell new RaDaR 1.0 contracts due to negotiated settlement impacting revenue. • Potential cost impact of tariffs manageable with other savings initiatives.

Q: Andrew Brackman asked about the last 30 days at the helm and NGS product growth.

A: Tony Zook said he saw confirmatory positive signs, and Warren Stone discussed NGS products contributing to 22% of clinical revenue and upcoming PanTracer liquid biopsy launch.

Q: Dan Brennan asked about pharma business and Q2 guide.

A: Jeff Sherman said pharma non-clinical revenue expected to be down, and Q2 revenue guide includes Pathline contribution.

Q: Tejas Savant asked about balance sheet and pipeline.

A: Jeffrey Sherman talked about cash flow, options for dealing with 2028 converts, and Warren Stone and Andrew Lukowiak discussed PanTracer Liquid Biopsy launch and MRD timelines.

Q: Mike Matson asked about M&A and annual guidance.

A: Tony Zook said they will look for tuck-in and licensing opportunities, and Jeffrey Sherman said guidance range is reasonable.

Q: Matthew Sykes asked about ASP and Pathline impact.

A: Jeffrey Sherman discussed ASP impact of Pathline and progress on modality-level AUP.

Q: David Westenberg asked about sales force and wildfires.

A: Warren Stone talked about sales force productivity and Jeffrey Sherman said no material impact from wildfires.

Q: Mason Carrico asked about ASP runway and Pathline customer adoption.

A: Jeffrey Sherman said more volume growth than AUP growth expected, and Kareem Saad discussed Pathline customer adoption timeline.

Q: Unidentified Analyst asked about MRD landscape.

A: Andrew Lukowiak discussed MRD market and company's position.

Q: Andrew Cooper asked about MRD launch hurdles.

A: Andrew Lukowiak talked about bridging studies and operational readiness for RaDaR 1.1.

Q: Mark Massaro asked about PanTracer Liquid reimbursement and MRD.

A: Andrew Lukowiak discussed MolDx process for PanTracer Liquid and MRD timeline.

Q: Jack Slevin asked about macro impact on oncology.

A: Jeffrey Sherman said no major impact on clinical volume, and discussed LDT Final Rule impact.

Q: Puneet Souda asked about NGS growth and cost initiatives.

A: Jeffrey Sherman and Warren Stone talked about NGS growth comps and cost initiatives like lab automation and site footprint optimization.