Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $20 million, representing a 12% increase year over year [18] - Gross margin improved to 80%, up 150 basis points from 78.4% in Q2 2024 [19] - Net loss for Q2 2025 was $11.5 million, an increase of 6% year over year [20] - Adjusted EBITDA loss was $7.2 million, which is a 29% increase year over year [20] - Cash used from operations improved by 23% to $6.6 million compared to $8.6 million in Q2 2024 [20] Business Line Data and Key Metrics Changes - Lung diagnostic testing revenue was $17.9 million from approximately 15,100 tests, compared to $16.5 million from approximately 13,900 tests in Q2 2024, representing 9% growth in test volumes and 8% growth in revenue [18] - Development services revenue grew by 53% year over year to $2.1 million [18][16] Market Data and Key Metrics Changes - The company ended Q2 2025 with $12.5 million under contract for development services, marking a 54% increase year over year and an all-time high [18][16] - The average number of sales representatives in the field was 74, with plans to increase to 83-87 in Q3 and 93-97 in Q4 [10][21] Company Strategy and Development Direction - The company aims to grow top-line revenue, improve operational effectiveness, and achieve positive adjusted EBITDA by Q4 2025 [5] - A territory-based sales strategy was implemented to engage pulmonologists and their referral networks, addressing nearly 50% of patients with lung nodules managed by primary care [7][6] - The company is focused on expanding its clinical evidence base and pipeline, with multiple presentations at key conferences [12][13][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the primary care strategy, noting that feedback from pulmonologists supports the approach [30] - The company anticipates continued growth in the development services segment, particularly in Q4 due to pharmaceutical budget cycles [45] - Management remains optimistic about achieving adjusted EBITDA positivity in Q4 2025, driven primarily by revenue growth [21][40] Other Important Information - The company has made significant progress in clinical studies, including the ALPITUDE study, which has reached patient enrollment requirements [23][12] - The company was recognized as a top workplace for the second consecutive year, reflecting its strong culture and team [24] Q&A Session Summary Question: Can you unpack the primary care opportunity and your confidence in the strategy? - Management indicated that confidence has increased due to broader experiences and consistent feedback from pulmonologists [30][29] Question: What trends are seen in electronic ordering utilization? - Management noted that electronic ordering has improved compliance and reduced test cancellations, enhancing efficiency [36][35] Question: How will the company bridge to EBITDA positivity in Q4? - The primary driver will be revenue growth from an increased number of sales representatives, with no major cost-cutting measures planned [40][42] Question: What is the outlook for development services revenue? - Management expects an uptick in Q4 due to the typical cadence of pharmaceutical companies' budgeting [45] Question: What is the growth outlook for primary care orders? - Management stated that while primary care orders have increased significantly, forecasting the exact mix with pulmonology is challenging [60][59] Question: What are the capital needs over the next year and a half? - Management is focused on achieving both adjusted EBITDA and cash flow breakeven with existing plans [71] Question: How confident is the company in maintaining $1 million per rep productivity? - Management expressed confidence based on pilot program results, indicating potential for higher productivity in some territories [73][75]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $18 million, representing a 21% increase year over year [22] - Lung diagnostic testing revenue was $16.3 million, reflecting an 18% growth, with test volumes increasing by 16% [22][24] - Gross margin improved to 79.4%, up from 78.6% in Q1 2024 [23] - Net loss for Q1 2025 was $11.1 million, an 18% improvement year over year [24] - Adjusted EBITDA loss was $6.2 million, an 11% improvement year over year [24] Business Line Data and Key Metrics Changes - Lung diagnostics revenue grew by 18%, marking the sixteenth consecutive quarter of over 15% year-over-year growth [5] - Development services revenue reached $1.7 million, a 61% increase compared to Q1 2024 [20] - The pipeline for development services ended Q1 with $10.9 million under contract, a 21% increase year over year [23] Market Data and Key Metrics Changes - The company is focusing on expanding its presence in the primary care market, which is expected to enhance patient access to lung diagnostics [9][12] - Digital test ordering increased by 58% over the last year, with customer retention for digital ordering being 40% higher than for non-digital ordering [8] Company Strategy and Development Direction - The company aims to achieve positive adjusted EBITDA by Q4 2025 while focusing on revenue growth and operational efficiencies [4][26] - A shift to a territory-based sales approach has been implemented to enhance market penetration in both pulmonology and primary care [9][11] - The company is exploring the integration of AI and radiomics into its diagnostic offerings to improve clinical workflows [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving adjusted EBITDA positivity in Q4 2025 despite current challenges in the sales force expansion [24][44] - The company is optimistic about the growth potential in the primary care market, supported by positive feedback from pulmonologists [42][61] - Management acknowledged the need for careful monitoring of expenses while ramping up the sales team to meet growth targets [78] Other Important Information - The company has been recognized as a top workplace for the second consecutive year in 2025, highlighting its strong team culture [28] - The company plans to hold an R&D day in the fall to provide further insights into its pipeline and progress [20] Q&A Session Summary Question: Can you elaborate on the sales force changes and hiring challenges? - Management noted that the shift to primary care required a different hiring profile, which took longer than anticipated to finalize [32][34] Question: What is the outlook for Q2 and the rest of the year? - Management expects to have 70 to 75 sales reps in Q2, with plans to increase to 85 in Q3 and 95 in Q4 [39] Question: How are primary care physicians responding to the technology? - Early feedback indicates that primary care physicians are aware of the patient population and are interested in utilizing the diagnostic tests [41][61] Question: What is the impact of the $10 million loan on capital needs? - The additional capital provides more flexibility and confidence in achieving breakeven while supporting commercial expansion and pipeline activities [44][45] Question: How does the sales force configuration affect territory management? - Each territory will have a pulmonology sales consultant, with associate sales consultants supporting them based on specific needs and test volumes [92][93]