Core Insights - NEO Battery Materials Ltd. has achieved significant advancements with its P-300N silicon battery, surpassing long-term capacity testing metrics with over 90% capacity retention for 300 cycles, exceeding the target of 80% [2][10] - The company has appointed Dr. Jun Sik Jeoung as Senior Vice President to lead large-scale battery testing and production expansion, leveraging his extensive experience in the battery industry [3][10] - The results from the P-300N testing enable NEO to move forward with large-cell format testing and the design of single-layer pouch cells, which will undergo long-term performance tests [4][10] Company Developments - NEO is actively preparing for multi-layer cell testing and is in discussions with battery prototypers and manufacturers in South Korea, the U.S., and Germany for outsourcing manufacturing [5][10] - The company has secured post-treatment equipment and is nearing completion of installation at its R&D Scale-Up Centre, which will enhance production capacity and quality [6][10] - The 2025 Annual General and Special Meeting resulted in all resolutions being approved by shareholders, including the appointment of MNP LLP as auditor and setting the number of directors at five [7][9][11] Technical Achievements - The P-300N battery prototype is recognized as one of the most stable silicon battery materials in the global supply chain, utilizing metallurgical silicon (MG-Si), which is the lowest-cost silicon input for battery-grade applications [2][14][10] - The engineering team has initiated the design and architecture of single-layer pouch cells, which will optimize interactions between P-300N, graphite anodes, and various cathode materials [4][10] - The company aims to fulfill elevated requests from global downstream partners by adding a key manufacturing unit to expand overall capacity [6][10]

Summary of NeoGenomics Conference Call Company Overview - **Company**: NeoGenomics (NEO) - **Industry**: Life Sciences and Oncology Diagnostics Key Points and Arguments Leadership Insights - The new CEO, Tony, has observed strengths in NeoGenomics that were previously underestimated, particularly in the hospital community and hematology [1][2] - The company has a strong focus on therapy selection, with 22% of revenue driven by recent product launches [2] Financial Guidance - NeoGenomics initially guided for 11% to 13% revenue growth for 2025, which includes contributions from the Pathline acquisition [7][8] - The Pathline acquisition is expected to contribute $12 million to $14 million in revenue for the year [27] - Revenue growth in 2024 was 12%, with 16% growth in 2023, and clinical business grew by 15% in 2024 [9] Sales Force Expansion - The company added 30 sales representatives, a 25% increase, focusing on community oncology [10] - It typically takes 6 to 9 months for new sales reps to reach full productivity [14] - The sales strategy includes targeting high-potential physicians based on their prescription writing [17] Product Launches and Pricing - New product launches, including PANTRACER liquid, are expected to drive growth in the second half of the year [11][22] - A direct client bill price increase was implemented in Q1, expected to benefit margins throughout the year [25] Operational Efficiency - NeoGenomics is focused on improving turnaround times and operational execution to enhance customer retention and acquisition [19] - The company is investing in automation and has a project underway to consolidate multiple lab information systems into one [58][62] Partnerships and Market Positioning - The partnership with Adaptive Biotechnologies aims to enhance the workflow for physicians by allowing combined requisitioning of tests [35][38] - The company is also exploring opportunities in the MRD (Minimal Residual Disease) market, focusing on sensitivity and tissue-informed testing [41][46] Market Dynamics - The MRD market is currently under-penetrated, with significant opportunities in community settings [46] - Guidelines for circulating tumor DNA testing are anticipated, which could drive broader adoption [51][52] Capital Deployment Strategy - NeoGenomics plans to balance investments in growth with potential stock buybacks and debt repayment, aiming for positive free cash flow by 2026 [64][65] Additional Important Insights - The company is leveraging its strengths in community oncology and is optimistic about future partnerships and licensing opportunities [34] - The integration of Pathline is ongoing, with expectations for economies of scale in NGS (Next Generation Sequencing) testing [28] - The focus on operational efficiencies through robotics and AI in lab processes is seen as a key growth driver over the next few years [62][63]

Summary of NeoGenomics (NEO) FY Conference Call - June 03, 2025 Company Overview - **Company**: NeoGenomics - **CEO**: Tony Zuck, who joined a few months prior to the conference but has been associated with the company for two years as a board member [4][3] Industry Insights - **Cancer Statistics**: One in two men and one in three women will face cancer in their lifetime, highlighting the significant market for cancer diagnostics [7] - **Patient Treatment Preferences**: 80% of cancer patients prefer to be treated in their local community, which informs NeoGenomics' strategy to focus on community hospitals [9] Strategic Positioning - **Market Position**: NeoGenomics operates between large clinical reference labs and Oncotechs, with over 500 test offerings, focusing on oncology [10][12] - **Market Size**: The cancer diagnostic testing market is approximately $12 billion, with a penetration rate of 70%. The therapy selection market is about $13 billion with a 35% penetration rate, and the MRD market is estimated at $30 billion with only 5-8% penetration [13][15] Growth Strategy - **Community Focus**: The company aims to provide the same level of cancer care in community settings as found in top hospitals [10] - **Revenue Growth**: NeoGenomics has achieved 8% year-on-year growth in volume and anticipates continued growth driven by new product offerings and market expansion [34][44] - **Sales Force Expansion**: The sales force has been expanded to 140 representatives, focusing on oncology practices [35] Product Development - **New Product Launches**: The PANTRACER product suite, including liquid biopsy and tissue tests, is set to launch, enhancing the company's oncology portfolio [39][40] - **Research and Development**: Emphasis on next-generation precision diagnostic solutions, particularly in MRD and therapy selection [27][28] Financial Performance - **Revenue Growth**: Revenue increased from approximately $484 million in 2021 to over $660 million in 2024, with a positive EBITDA of $40 million [42][43] - **Future Projections**: Expected revenue growth of 13% to 15% for the current year, with adjusted EBITDA growth of 38% to 45% [44] Strategic Acquisitions - **Pathline Acquisition**: Acquired Pathline to strengthen the company's presence in the Northeast, enhancing service capabilities and turnaround times [37][46] Conclusion - **Optimistic Outlook**: The company is positioned for sustainable growth through its community-focused strategy, innovative product offerings, and operational efficiencies [48][49]

Core Viewpoint - Momentum investing strategies focus on stocks with price increases, aiming to identify targets for potential upside while considering various timeframes [1] Group 1: Oddity Tech - Oddity Tech Ltd. is a tech company in the beauty and wellness sector, recently achieving a share price of $64.02, with a 52-week range of $30.34 to $65.90 and a P/E ratio of 38.85 [2][3] - The company reported a 70% increase in share price over the last month and a 53% year-to-date increase, surpassing earnings expectations by six cents and achieving a 27% year-over-year revenue growth [3][4] - Oddity's IL MAKIAGE brand is a key driver, with a goal of reaching $1 billion in revenue by 2028, while expanding into European markets despite heavy exposure to the U.S. market [5] Group 2: NeoGenomics - NeoGenomics Inc., a cancer and cytogenetics testing service provider, has a current share price of $8.08, with a 52-week range of $6.08 to $19.12 and a price target suggesting over 85% upside potential [6][7] - The company experienced a 22% share price increase from April 30 to May 5, following a period of decline due to a disappointing earnings report [7][8] - NeoGenomics raised its full-year 2025 guidance and completed the acquisition of Pathline, which is expected to enhance its geographical reach and service portfolio [8] Group 3: Comfort Systems USA - Comfort Systems USA Inc. is a mechanical and electrical services provider with a current share price of $433.79, a 52-week range of $272.93 to $553.09, and a unanimous Buy rating from analysts [9][10] - The company has seen a 40% increase in share price over the last month, driven by a significant backlog growth of nearly $1 billion due to the CHIPS Act and data center investments [10][11] - Anticipated revenue growth for 2025 is expected to be in double digits, potentially benefiting from U.S. manufacturing restoration efforts [11]

Operational Structure and Services - As of March 31, 2025, NeoGenomics operates CAP accredited and CLIA certified laboratories in multiple locations, including Fort Myers, Florida, and Cambridge, UK[107]. - The company reported a comprehensive range of oncology diagnostic testing services, including cytogenetics, FISH, flow cytometry, IHC, and molecular testing, which are essential for diagnosing various cancers[106][109]. - NeoGenomics simplified its operational structure in 2024 by consolidating Clinical Services and Advanced Diagnostics into a single segment to enhance service offerings[110]. - The company aims to accelerate volume growth through traditional clinical and NGS modalities, targeting oncologists in the community and executing a pharmaceutical client strategy[122]. - NeoGenomics focuses on improving turnaround times for test results, which is crucial for timely patient treatment and drives additional testing requests[123]. - NeoGenomics offers a comprehensive oncology-focused test menu, including molecular and NGS testing, to meet diverse client needs[124][125]. - The company has a national direct sales force organized into nine regions in the U.S., focusing on value-based care solutions and client education[126]. Financial Performance - Consolidated revenue for the three months ended March 31, 2025, was $168.0 million, an increase of $11.8 million or 7.5% compared to $156.2 million in 2024[133]. - Cost of revenue for the three months ended March 31, 2025, was $94.8 million, representing a 4.4% increase from $90.8 million in 2024, with gross profit margin improving to 43.6% from 41.9%[135][136]. - Research and development expenses rose to $10.2 million for the three months ended March 31, 2025, a 33.6% increase from $7.6 million in 2024, accounting for 6.1% of revenue[140]. - General and administrative expenses increased by $2.4 million to $68.2 million, representing 40.6% of revenue, compared to 42.1% in 2024[138]. - Sales and marketing expenses increased by $2.5 million to $22.7 million, accounting for 13.5% of revenue, up from 12.9% in 2024[142]. - Interest income decreased to $3.7 million for the three months ended March 31, 2025, down 23.0% from $4.8 million in 2024[146]. - Net loss for the three months ended March 31, 2025, was $25.9 million, an improvement from a net loss of $27.1 million in 2024, with basic net loss per share of $(0.20) compared to $(0.21) in 2024[150]. - Adjusted EBITDA for the three months ended March 31, 2025, was $7.1 million, significantly higher than $3.5 million in the same period of 2024, reflecting a positive operational trend[154]. Cash Flow and Liquidity - Cash used in operating activities decreased to $25.3 million in Q1 2025 from $25.9 million in Q1 2024, driven by a $7.8 million improvement in gross profit[159]. - The company had $346.2 million in unrestricted cash and cash equivalents as of March 31, 2025, indicating strong liquidity to support operational needs[162]. - Capital expenditures for the year ending December 31, 2025, are anticipated to be between $30.0 million and $35.0 million, with $4.5 million spent in Q1 2025[163]. - Cash provided by investing activities was $3.6 million in Q1 2025, a decrease from $14.5 million in Q1 2024, primarily due to lower proceeds from marketable securities[160]. - Cash provided by financing activities increased to $0.9 million in Q1 2025 from $0.8 million in Q1 2024, mainly due to net issuance of common stock[161]. - Working capital at the end of Q1 2025 was $294.2 million, down from $497.2 million in Q1 2024, reflecting changes in current assets and liabilities[158]. Strategic Initiatives and Market Conditions - The acquisition of Inivata in June 2021 enhanced NeoGenomics' capabilities in oncology liquid biopsy technology, which is anticipated to drive future growth[117]. - Seasonal factors, such as summer vacations and extreme weather, can impact clinical testing volume, while pharmaceutical development services are influenced by contract terms and patient enrollment rates[127][128]. - The company anticipates an increase in research and development expenditures as it continues to invest in innovation projects and new tests[141]. - The FDA's final rule on Laboratory Developed Tests (LDTs) was vacated, allowing LDTs to continue under existing regulatory frameworks[132]. Restructuring and Risk Management - Restructuring charges were eliminated in the three months ended March 31, 2025, compared to $2.4 million in 2024, due to the completion of restructuring activities[144][145]. - The company does not hedge foreign currency exchange risks, although it operates in the UK, exposing it to fluctuations in British Pounds against the U.S. dollar[169]. - The company has no economic interest rate exposure related to its convertible notes, which have fixed annual interest rates of 1.25% and 0.25%[167].

Financial Data and Key Metrics Changes - The company reported revenues of $168 million for Q1 2025, an increase of 8% compared to the prior year, aligning with the previous guidance of 8% to 10% growth [24][29] - Adjusted EBITDA improved by 102% year-over-year to $7 million, marking the seventh consecutive quarter of positive adjusted EBITDA [24][10] - Total clinical revenue increased by $15 million or 11.3% in the quarter, while non-clinical revenue declined by $3.4 million or 15.8% [25][26] Business Line Data and Key Metrics Changes - Clinical testing volumes grew by 8% year-over-year, with NGS (Next Generation Sequencing) revenue growth of 18% [11][24] - Five new NGS products launched accounted for 22% of total clinical revenue in Q1 [11][12] - The company expects to achieve 25% annual growth in NGS, supported by an expanded sales force and upcoming product launches [12][13] Market Data and Key Metrics Changes - The NGS market is projected to grow at an annual rate of 10% to 15%, with the company aiming to grow above this rate [11] - The non-clinical business, which includes pharma, is expected to decline this year due to macroeconomic factors affecting R&D spending [15][27] Company Strategy and Development Direction - The company plans to focus on innovation through R&D, business development, and commercialization of new products to enhance patient care options [6][7] - The acquisition of Pathline is expected to accelerate growth and establish a local presence in the Northeast, contributing $12 million to $14 million in revenue for 2025 [8][29] - The company aims to leverage its strong position in community oncology and enhance its test offerings to drive incremental business [7][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's strong performance and the potential for growth in the community oncology market [36][40] - There are anticipated headwinds in the pharma sector, but clinical revenue growth is expected to offset these challenges [27][45] - The company is focused on integrating Pathline and optimizing operations to realize synergies in the second half of the year [29][30] Other Important Information - The company ended Q1 with cash and marketable securities of $358 million, a decrease of 7% year-over-year, and expects to maintain sufficient liquidity for investments [28][29] - The company is committed to increasing R&D investments to drive future product innovation [27][31] Q&A Session Summary Question: Can you discuss the last thirty days at the helm and any areas needing attention? - Management confirmed strong performance and positive interactions with the team, noting no surprises but areas for continued focus [36][39] Question: Can you unpack the NGS products driving clinical revenue? - Several new products contribute significantly, with a focus on community oncology, and investments in sales resources align with product launches [40][42] Question: What are the expectations for the pharma business this year? - The pharma segment is expected to decline similarly to last year, but clinical revenue growth will help offset this [45][46] Question: How will the Pathline acquisition impact revenue and integration? - Pathline is expected to contribute to revenue growth in the future, with integration efforts ongoing [29][30] Question: What is the timeline for the next-gen MRD product? - The timeline for the next-gen MRD product is set for 2026, with opportunities for acceleration through partnerships [66][67] Question: How will the sales force maturity impact revenue? - The sales force is expected to reach full productivity in 6 to 9 months, with leverage anticipated in the second half of the year [88][91]

Financial Performance - Revenue increased by 8% to $168 million in 1Q 2025[31, 35] - Clinical NGS revenue grew by 18%[17, 19] - Adjusted Gross Profit increased by 11% to $79 million[31] - Adjusted EBITDA improved by 102% to $7 million[15, 31] - Adjusted Gross Margin increased to 47%, a 146 bps improvement[17, 32] Operational Highlights - Clinical volume increased by 8% year-over-year, reaching 326,000 units[12, 31] - The company announced the acquisition of Pathline to strengthen its commercial presence in the Northeast[17, 25] - Clinical revenue per test improved by 3% due to mix and pricing[13, 35] Strategic Initiatives - The company submitted PanTracer LBx to MolDx[17, 42] - The company is expanding its salesforce up to 140 representatives[23] Financial Guidance - The company revised its full-year 2025 revenue guidance to $747-$759 million, representing a 13-15% year-over-year growth[38] - The company reiterated its full-year adjusted EBITDA guidance of $55-$58 million, representing a 38-45% year-over-year growth[38]

Group 1 - NeoGenomics reported break-even quarterly earnings per share, surprising the market as the consensus estimate was a loss of $0.02, marking a 100% earnings surprise [1] - The company posted revenues of $168.04 million for the quarter ended March 2025, which was 1.66% below the Zacks Consensus Estimate, but an increase from $156.24 million year-over-year [2] - Over the last four quarters, NeoGenomics has surpassed consensus EPS estimates four times and topped revenue estimates twice [2] Group 2 - NeoGenomics shares have declined approximately 39.5% since the beginning of the year, contrasting with the S&P 500's decline of 6% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.04 on revenues of $183.07 million, and for the current fiscal year, it is $0.16 on revenues of $738.2 million [7] Group 3 - The Medical - Biomedical and Genetics industry, to which NeoGenomics belongs, is currently ranked in the top 31% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact NeoGenomics' stock performance [5][6]

Financial Data and Key Metrics Changes - The company reported revenues of $168 million for Q1 2025, an increase of 8% year-over-year, and adjusted EBITDA of $7.1 million, reflecting over 100% improvement compared to the previous year [10][24][30] - Clinical testing volumes increased by 8% year-over-year, with a 3% increase in revenue per test [10][24] - Adjusted gross margins improved by 146 basis points to 47%, with adjusted gross profits up 11% to $79 million [24] Business Line Data and Key Metrics Changes - Clinical revenue grew by $15 million or 11.3% in Q1 2025, while non-clinical revenue declined by $3.4 million or 15.8% [25][26] - Next Generation Sequencing (NGS) revenue grew by 18%, with five new NGS products launched that accounted for 22% of total clinical revenue [12][24] Market Data and Key Metrics Changes - The NGS market is estimated to grow at an annual rate of 10% to 15%, with the company expecting to grow above this rate [12] - The non-clinical business, which includes pharma, is expected to decline this year due to macroeconomic factors affecting R&D spending [17][26] Company Strategy and Development Direction - The company aims to enhance its oncology solutions by expanding its test menu and focusing on community oncology settings, where 80% of cancer patients are treated [9][10] - The acquisition of Pathline is expected to accelerate growth and improve market presence in the Northeast [9][10][30] - The company plans to invest more in innovation through R&D and commercialization of new products [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's strong performance and the potential for growth in clinical revenue, despite headwinds in the pharma sector [39][46] - The company anticipates that the integration of Pathline will yield positive results in 2026 and beyond, despite short-term challenges [26][30] Other Important Information - The company ended Q1 2025 with cash and marketable securities of $358 million, a decrease of 7% year-over-year [29] - The company expects to pay off its convertible notes due in May 2025 using existing cash and marketable securities [29] Q&A Session Summary Question: Can you discuss the last thirty days at the helm and any areas needing attention? - Management confirmed strong performance and positive interactions with the team, with no unexpected surprises [39] Question: Can you elaborate on the NGS products driving clinical revenue? - Several new products contribute to the 22% of clinical revenue, with a focus on community oncology [41] Question: What are the expectations for the pharma business this year? - The pharma business is expected to decline similarly to last year, but clinical revenue growth is anticipated to offset this [46] Question: How is the company planning to manage cash flow and investments? - The company expects to produce positive free cash flow in 2026 and has sufficient liquidity for investments [56] Question: What is the timeline for the PANTRASER liquid biopsy launch? - The launch is expected to simplify the ordering process and drive concurrent testing, particularly for lung cancer [61] Question: What are the expectations for average revenue per test moving forward? - The average revenue per test may be impacted by the addition of Pathline, but progress is expected on a modality basis [77] Question: How long does it take for the sales force to reach full productivity? - Typically, it takes six to nine months for new sales personnel to reach full productivity [86]

[First Quarter 2025 Highlights](index=1&type=section&id=First%20Quarter%202025%20Highlights) NeoGenomics reported a strong Q1 2025, with consolidated revenue up 8% to $168 million and Adjusted EBITDA increasing 102% to $7 million, driven by record patient results and strategic growth initiatives Q1 2025 Key Financial Metrics vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Consolidated Revenue | $168 million | $156 million | +8% | | Net Loss | $26 million | $27 million | -4% | | Adjusted EBITDA | $7 million | $3 million | +102% | - The company delivered a record number of results to patients in the first quarter, with management expecting to accelerate growth through portfolio expansion, upcoming product launches, customer experience focus, and sales force leveraging[2](index=2&type=chunk) [Detailed First-Quarter Results](index=1&type=section&id=First-Quarter%20Results) In Q1 2025, consolidated revenue grew 8% to $168 million, driven by higher clinical test volume and a 3% increase in average revenue per test to $459, resulting in a 12% rise in gross profit to $73 million and over doubling Adjusted EBITDA to $7 million, with $358 million in cash at quarter-end - Revenue growth was primarily due to higher test volume, partially offset by lower non-clinical revenue, with average revenue per clinical test increasing by **3%** to **$459**, reflecting a mix of higher value tests like NGS and strategic reimbursement initiatives[3](index=3&type=chunk) - Gross profit increased **12%** to **$73 million**, while operating expenses rose **5%** to **$101 million**, driven by higher compensation and technology costs, partially offset by the completion of 2024 restructuring activities[4](index=4&type=chunk) - Net loss for the quarter decreased by **4%** to **$26 million**, and Adjusted Net Loss improved significantly to **$0.5 million** from **$3 million** in Q1 2024[5](index=5&type=chunk) - The company held cash, cash equivalents, and marketable securities totaling **$358 million** at the end of the quarter[5](index=5&type=chunk) [2025 Financial Guidance](index=3&type=section&id=2025%20Financial%20Guidance) The company revised its full-year 2025 guidance upwards, projecting consolidated revenue between $747 million and $759 million (13%-15% growth) and Adjusted EBITDA of $55 million to $58 million, primarily due to the anticipated $12 million to $14 million revenue from the Pathline, LLC acquisition Revised Full-Year 2025 Financial Guidance (in millions) | Metric | FY 2024 Actual | Revised FY 2025 Guidance | YoY % Change | | :--- | :--- | :--- | :--- | | Consolidated Revenue | $661 | $747 - $759 | 13% - 15% | | Net Loss | $(79) | $(85) - $(77) | (8)% - 3% | | Adjusted EBITDA | $40 | $55 - $58 | 38% - 45% | - The guidance was revised to include **$12 million to $14 million** of revenue related to the acquisition of Pathline, LLC[7](index=7&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, NeoGenomics reported total assets of $1.60 billion, a decrease from $1.64 billion at year-end 2024, with total liabilities decreasing to $713.2 million and stockholders' equity slightly declining to $888.3 million Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $346,194 | $367,012 | | Total current assets | $573,932 | $596,019 | | Total assets | $1,601,430 | $1,638,038 | | Total current liabilities | $279,695 | $301,241 | | Total liabilities | $713,161 | $735,699 | | Total stockholders' equity | $888,269 | $902,339 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q1 2025, NeoGenomics reported net revenue of $168.0 million, up from $156.2 million, with gross profit improving to $73.2 million and net loss decreasing to $25.9 million, or ($0.20) per share, from $27.1 million in Q1 2024 Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Revenue | $168,035 | $156,240 | | Gross Profit | $73,246 | $65,469 | | Loss from Operations | $(27,825) | $(30,567) | | Net Loss | $(25,923) | $(27,061) | | Net Loss Per Share (Basic & Diluted) | $(0.20) | $(0.21) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In Q1 2025, net cash used in operating activities was $25.3 million, with net cash provided by investing activities at $3.6 million, resulting in a $20.8 million decrease in cash and cash equivalents, ending the quarter at $346.2 million Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(25,327) | $(25,915) | | Net cash provided by investing activities | $3,560 | $14,525 | | Net cash provided by financing activities | $949 | $816 | | Net change in cash and cash equivalents | $(20,818) | $(10,574) | | Cash and cash equivalents, end of period | $346,194 | $331,914 | [Non-GAAP Financial Measures and Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Use and Definition of Non-GAAP Measures](index=8&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) The company uses non-GAAP financial measures like Adjusted EBITDA, Adjusted Gross Profit, and Adjusted Net Loss to provide enhanced transparency into core operational performance by excluding non-recurring items, supplementing but not substituting GAAP results - Management believes non-GAAP measures provide useful supplemental information by facilitating the analysis of the Company's core test-level operating results across reporting periods[20](index=20&type=chunk) - Key non-GAAP measures are defined as follows: - **Adjusted EBITDA**: Net loss adjusted for interest, taxes, depreciation, amortization, stock-based compensation, and other specific non-recurring costs[21](index=21&type=chunk) - **Adjusted Gross Profit**: Total revenue less cost of revenue, excluding amortization of acquired intangibles and stock-based compensation[22](index=22&type=chunk) - **Adjusted Net Loss**: Net loss adjusted for amortization, stock-based compensation, and other significant non-operating expenses[23](index=23&type=chunk) [Reconciliations of GAAP to Non-GAAP Measures](index=9&type=section&id=Reconciliations) This section details GAAP to non-GAAP reconciliations, showing Q1 2025 GAAP Net Loss of $25.9 million reconciled to Adjusted EBITDA of $7.1 million, and full-year 2025 GAAP Net Loss guidance of ($85 million)-($77 million) reconciled to Adjusted EBITDA of $55 million-$58 million Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA (Q1 2025, in thousands) | Description | Amount | | :--- | :--- | | Net loss (GAAP) | $(25,923) | | Adjustments (Interest, Tax, D&A) | $16,225 | | EBITDA (non-GAAP) | $(10,032) | | Further adjustments (Stock comp, litigation, etc.) | $17,102 | | **Adjusted EBITDA (non-GAAP)** | **$7,070** | Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Profit (Q1 2025, in thousands) | Description | Amount | Margin | | :--- | :--- | :--- | | Gross profit (GAAP) | $73,246 | 43.6% | | Adjustments to cost of revenue | $5,325 | - | | **Adjusted gross profit (non-GAAP)** | **$78,571** | **46.8%** | Reconciliation of GAAP Net Loss to Non-GAAP Adjusted Net Loss (Q1 2025, in thousands) | Description | Amount | | :--- | :--- | | Net loss (GAAP) | $(25,923) | | Adjustments (Amortization, Stock comp, etc.) | $25,464 | | **Adjusted net loss (non-GAAP)** | **$(459)** | Reconciliation of 2025 GAAP Net Loss Guidance to Non-GAAP Adjusted EBITDA Guidance (in thousands) | Description | Low Range | High Range | | :--- | :--- | :--- | | Net loss (GAAP) | $(85,000) | $(77,000) | | Adjustments | $140,000 | $135,000 | | **Adjusted EBITDA (non-GAAP)** | **$55,000** | **$58,000** | [Supplemental Information](index=13&type=section&id=Supplemental%20Information) In Q1 2025, clinical test volume increased 8.4% to 326,163 tests, with average revenue per clinical test rising 2.7% to $459, indicating a favorable shift towards higher-value diagnostics Clinical Test Volume and Revenue per Test | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Number of tests performed | 326,163 | 300,827 | 8.4% | | Average revenue/test | $459 | $447 | 2.7% |