NeoGenomics(NEO) - 2025 Q1 - Quarterly Results

First Quarter 2025 Highlights 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] Detailed First-Quarter Results 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] - 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] - 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] - The company held cash, cash equivalents, and marketable securities totaling $358 million at the end of the quarter[5] 2025 Financial Guidance 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] Financial Statements Condensed Consolidated Balance Sheets 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 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 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 Use and Definition of Non-GAAP Measures 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] - 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] - Adjusted Gross Profit: Total revenue less cost of revenue, excluding amortization of acquired intangibles and stock-based compensation[22] - Adjusted Net Loss: Net loss adjusted for amortization, stock-based compensation, and other significant non-operating expenses[23] Reconciliations of GAAP to Non-GAAP Measures 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 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% |