Biodesix(BDSX) - 2025 Q2 - Quarterly Results

Q2 2025 Earnings Release Highlights Executive Summary Biodesix reported strong Q2 2025 results with total revenue up 12% to $20 million, an 80% gross margin, and reaffirmed full-year guidance, expecting Q4 adjusted EBITDA profitability Q2 2025 Financial Performance Overview Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------- | :-------- | :-------- | :----------- | | Total Revenue | $20.0M | $17.9M | +12% | | Gross Profit Margin | 80% | 78.5% | +150 bps | Operational and Strategic Achievements - The company expanded its commercial focus to primary care physicians managing 50% of lung nodule patients, observing a significant increase in test orders from this network[2] - Development services revenue increased by 53% year-over-year, with contract value growing by 54%[2] - The company anticipates achieving adjusted EBITDA profitability in Q4 through sales team expansion, enhanced sales representative productivity, robust service business growth, and operational efficiencies[2] Full-Year 2025 Financial Outlook - The company reaffirmed its full-year 2025 total revenue guidance of $80 million to $85 million[1] Company Information About Biodesix Biodesix is a leading diagnostic solutions company improving patient care and outcomes for lung diseases through its Nodify Lung® and IQLung® tests, also offering development services for diagnostic test and therapy advancement - Biodesix is a leading diagnostic solutions company focused on improving patient clinical care and outcomes[8] - Its diagnostic tests, including Nodify Lung® Nodule Risk Assessment and IQLung® Cancer Treatment Guidance, support personalized care and treatment decisions for lung disease patients[8] - Development services provide scientific, technical, and operational capabilities to biopharmaceutical, life science, and research organizations for advancing diagnostic tests, tools, and therapies[8] Trademarks Biodesix, Biodesix Logo, Nodify Lung, and IQLung are trademarks or registered trademarks of Biodesix - Biodesix, Biodesix Logo, Nodify Lung, and IQLung are trademarks or registered trademarks of Biodesix[9] Q2 2025 Business Highlights Biodesix achieved significant Q2 2025 business growth and strategic progress, including sales team expansion, increased primary care physician orders, record development services contracts, and clinical data milestones - The sales team expanded to an average of 74 sales representatives, a 21% year-over-year increase (adding 13 representatives)[5] - Orders for lung diagnostic tests from primary care physicians increased by over 100% year-over-year, exceeding pre-2024 pilot program levels[5] - Development services contract value reached a record $12.5 million, representing a 54% year-over-year increase[5] - Digital orders, including EMR integrations, increased by 63% year-over-year[5] - New clinical and economic data supporting the Nodify Lung® test were presented at the ISPOR 2025 Annual Meeting and ATS 2025 International Conference[5] - The ALTITUDE prospective, randomized controlled trial met patient enrollment requirements in July 2025, with patient follow-up expected to continue for approximately one year[5] - Data from three pipeline initiatives were presented at the AACR, ASCO, and ASMS annual meetings, including combined genomic and proteomic MRD testing, VeriStrat test application in first-line immunotherapy selection, and VeriStrat test use in hormone-resistant cancers[5] Q2 2025 Detailed Financial Results Revenue Performance Q2 2025 total revenue reached $20 million, a 12% year-over-year increase, driven by 8% growth in lung diagnostic testing and 53% in development services revenue Q2 2025 Revenue Breakdown | Revenue Type | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | | :-------------------- | :----------------- | :----------------- | :--------- | | Total Revenue | $20.0 | $17.9 | +12% | | Lung Diagnostic Testing | $17.9 | $16.5 | +8% | | Development Services | $2.1 | $1.4 | +53% | Gross Margin and Operating Expenses Q2 gross margin improved to 80%, up 150 basis points, due to lung diagnostic test growth and workflow optimization, while operating expenses rose 15% from sales team expansion Q2 2025 Gross Margin and Operating Expenses | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | | :-------------------- | :----------------- | :----------------- | :--------- | | Gross Margin | $16.0 (80%) | N/A (78.5%) | +150 bps | | Operating Expenses | $25.7 | N/A | +15% | | Non-cash Stock Comp. | $1.0 | N/A | -15% | - Gross margin improvement was primarily driven by growth in lung diagnostic testing, reduced per-test costs from workflow optimization, and continued expansion of development services[10] - Increased operating expenses were primarily due to sales team expansion to support lung diagnostic sales growth, enhance market awareness, and boost product adoption, leading to higher selling and marketing costs[10] Net Loss and Adjusted EBITDA Q2 net loss increased 6% to $11.5 million, and adjusted EBITDA loss widened 29% to $7.2 million Q2 2025 Net Loss and Adjusted EBITDA | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | | :-------------------- | :----------------- | :----------------- | :--------- | | Net Loss | $(11.5) | $(10.8) | +6% | | Adjusted EBITDA | $(7.2) | $(5.6) | +29% | Cash and Cash Equivalents Cash and cash equivalents totaled $20.7 million as of June 30, 2025, an increase of $3.1 million from March 31, 2025 Cash and Cash Equivalents | Metric | As of June 30, 2025 (Millions) | As of March 31, 2025 (Millions) | Change | | :-------------------- | :----------------------------- | :------------------------------ | :----- | | Cash and Cash Equivalents | $20.7 | $17.6 (implied) | +$3.1M | 2025 Financial Outlook The company reaffirmed its full-year 2025 financial outlook, projecting total revenue between $80 million and $85 million - The company reaffirmed its 2025 total revenue expectation of $80 million to $85 million[6] Use of Non-GAAP Financial Measures Adjusted EBITDA Adjusted EBITDA is a key non-GAAP metric used by Biodesix management for financial performance assessment and internal planning, derived from net loss by excluding specific non-cash and non-recurring items to provide a comparable operational overview - Adjusted EBITDA is a key metric used by company management for evaluating financial performance, internal planning, and forecasting[12] - This metric helps investors assess ongoing operating results and trends, facilitating comparisons with other companies[11] - Calculated by adjusting net loss to exclude interest, income tax expense, depreciation and amortization, share-based compensation expense, loss on extinguishment of debt, net change in fair value of warrant liability, other net income, and other non-recurring items[14] Note Regarding Forward-Looking Statements This press release contains forward-looking statements protected by the Private Securities Litigation Reform Act of 1995, involving significant risks and uncertainties, with actual results potentially differing materially from current expectations due to various factors, including those in company filings - This press release contains forward-looking statements protected by the Private Securities Litigation Reform Act of 1995, involving significant risks and uncertainties[15] - Forward-looking statements are based on current management expectations, and actual results and performance may differ materially from projections due to various factors[15] - Readers should refer to the risk factors section in the company's latest 10-K annual report and 10-Q quarterly reports for additional factors that could cause actual results to differ[15] Contacts Provides contact information for media and investor relations - Media Contact: Natalie St. Denis (natalie.stdenis@biodesix.com, (720) 925-9285)[16] - Investor Contact: Chris Brinzey (chris.brinzey@icrhealthcare.com, (339) 970-2843)[16] Unaudited Financial Statements Condensed Balance Sheets As of June 30, 2025, Biodesix reported total assets of $87.74 million, total liabilities of $86.602 million, and total stockholders' equity of $1.138 million, reflecting decreases in assets and equity and an increase in liabilities compared to December 31, 2024 Condensed Balance Sheet Key Data | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total Assets | $87,740 | $97,244 | | Total Liabilities | $86,602 | $76,368 | | Total Stockholders' Equity | $1,138 | $20,876 | | Cash and Cash Equivalents | $20,728 | $26,245 | | Long-term notes payable, net | $46,782 | $36,408 | Condensed Statements of Operations Q2 2025 total revenue was $20.018 million, with a net loss of $11.468 million and basic and diluted net loss per share of $0.08, indicating revenue growth but also an expanded net loss year-over-year Condensed Statements of Operations Key Data | Metric (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Revenues | $20,018 | $17,925 | $37,976 | $32,743 | | Diagnostic Tests Revenue | $17,898 | $16,539 | $34,214 | $30,335 | | Development Services Revenue | $2,120 | $1,386 | $3,762 | $2,408 | | Net Loss | $(11,468) | $(10,808) | $(22,569) | $(24,422) | | Net Loss per Share (basic & diluted) | $(0.08) | $(0.08) | $(0.15) | $(0.22) | Reconciliation of Net Loss to Adjusted EBITDA Q2 2025 adjusted EBITDA loss widened to $7.213 million from $5.607 million in Q2 2024, with the reconciliation detailing adjustments from net loss Reconciliation of Net Loss to Adjusted EBITDA | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Loss | $(11,468) | $(10,808) | $(22,569) | $(24,422) | | Interest expense | $1,898 | $1,936 | $3,583 | $4,465 | | Depreciation and amortization | $1,436 | $1,412 | $2,876 | $2,832 | | Share-based compensation expense | $1,039 | $1,218 | $2,011 | $3,858 | | Adjusted EBITDA | $(7,213) | $(5,607) | $(13,409) | $(12,568) |