Labcorp Holdings Inc. (LH), headquartered in Burlington, North Carolina, is a leading global provider of comprehensive laboratory services. The company operates across two main segments: Diagnostics Laboratories and Biopharma Laboratory Services, offering a wide range of tests, from blood chemistry and microbiology to advanced gene-based and esoteric diagnostics. Labcorp’s market capitalization is about $21.7 billion.Shares of the medical laboratory operator have slightly underperformed the broader market. ...

Core Viewpoint - Precipio, Inc. (PRPO) has demonstrated significant financial improvement in Q3 2025, with strong revenue growth and operational momentum, leading to a notable increase in stock performance compared to the broader market [1][2]. Financial Performance - Revenue for Q3 2025 increased by 29.9% year over year to $6.8 million from $5.2 million, and sequentially rose by 19.7% from $5.7 million in Q2 2025 [2]. - Adjusted EBITDA improved to $0.5 million from $0.1 million a year ago and from a loss of $0.1 million in the prior quarter [2][4]. - Gross margin increased to 44% from 43% in Q2 2025, while GAAP net loss narrowed to $0.1 million from $0.6 million in Q3 2024 [2]. Segment Performance - The Pathology Services division saw a 20% sequential revenue increase to $6 million, driven by new customer additions [3]. - The Products division experienced a 16% sequential revenue growth to $0.7 million, supported by increased orders from existing clients [3]. Operational Metrics - EBITDA reached $0.3 million in Q3 2025, compared to a loss of $0.3 million in the same quarter last year [4]. - Operating cash flow generated was $285,000, a significant improvement from a cash burn of $148,000 in Q2 2025 [4]. Margin Dynamics - Pathology Services gross margin improved from 43% to 46% quarter over quarter, while the Products division margin fell from 44% to 30% due to strategic investments [5][11]. - Management expects that revenue scaling will offset temporary margin pressures from these investments [5]. Management Insights - Management characterized the quarter as a turning point, emphasizing a shift from survival to strategic expansion, with a focus on operational discipline and sustained revenue gains [6]. - The company aims to operate without dependence on external capital, allowing for reinvestment in growth initiatives [6]. Future Outlook - Management outlined four priorities for the remainder of 2025 and into 2026: sustaining double-digit growth, further margin expansion, reinvestment of internally generated cash, and broader investor outreach [12]. - PRPO expects overall company gross margins to exceed 50% by mid-2026 as revenue scales against a largely fixed-cost structure [12]. Other Developments - The company expanded its laboratory space during Q3 2025, incurring an additional $120,000 in annual rent, aimed at increasing operational efficiency [14].

For more information on Labcorp's MRD portfolio, visit https://oncology.labcorp.com. About Labcorp Labcorp (NYSE: LH) is a global leader of innovative and comprehensive laboratory services that helps doctors, hospitals, pharmaceutical companies, researchers and patients make clear and confident decisions. We provide insights and advance science to improve health and improve lives through our unparalleled diagnostics and drug development laboratory capabilities. The company's nearly 70,000 employees serve cl ...

Core Insights - IDEXX Laboratories (IDXX) reported a strong quarter, exceeding expectations, with future growth anticipated from Cancer Dx and InVue [1] Company Focus - The focus is on identifying companies with exceptional quality and a proven ability to reinvest capital for impressive returns, particularly those with a market capitalization of less than $10 billion [1] - The ideal companies should demonstrate long-term capital compounding capabilities with a high compound annual growth rate, potentially delivering tenfold returns or greater [1] Investment Strategy - A long-term perspective is maintained on these companies to generate higher returns compared to market indices, especially in a rapidly evolving investment landscape [1] - A conservative investment strategy is primarily adopted, with occasional pursuit of opportunities that present a favorable risk-reward ratio, ensuring overall portfolio stability [1]

Core Insights - IDEXX Laboratories, Inc. (IDXX) has updated its 2025 EPS outlook to a range of $12.81 - $13.01, reflecting a $0.33 increase at midpoint due to operational performance and tax rate benefits [1] - The company has revised its full year revenue growth guidance to $4.27 billion - $4.30 billion, indicating a reported growth of 9.6% - 10.3% [2] - For Q3, IDEXX reported earnings of $274.61 million, or $3.40 per share, a significant increase from $232.84 million, or $2.80 per share, in the previous year [3] Financial Performance - The updated EPS growth outlook is projected at 20% - 22% as reported and 12% - 14% on a comparable basis [1] - The company increased its outlook for organic revenue growth to 8.8% - 9.5%, marking an approximate 1% increase at midpoint [2] - Revenue for Q3 rose by 13.3% to $1.105 billion from $975.54 million year-over-year [3] Market Reaction - Shares of IDEXX are up 5% in pre-market trading following the earnings announcement [4]

Earnings Report - IDEXX Laboratories, Inc. is set to release its third-quarter earnings results on November 3, with analysts expecting earnings of $3.14 per share, an increase from $2.80 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $1.07 billion, compared to $975.54 million a year earlier [1] Recent Performance - On August 4, IDEXX Laboratories reported second-quarter financial results that exceeded expectations and raised its FY25 guidance above estimates [2] - Following the positive report, shares of IDEXX Laboratories rose by 0.2%, closing at $629.51 [2] Analyst Ratings - Stifel analyst Jonathan Block upgraded the stock from Hold to Buy, raising the price target from $640 to $700 [4] - UBS analyst Andrea Alfonso initiated coverage with a Neutral rating and a price target of $720 [4] - Morgan Stanley analyst Erin Wright maintained an Overweight rating and increased the price target from $722 to $765 [4] - Piper Sandler analyst David Westenberg maintained a Neutral rating and raised the price target from $510 to $700 [4] - JP Morgan analyst Chris Scott maintained an Overweight rating and increased the price target from $550 to $675 [4]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $188 million, representing a year-over-year growth of 12% [11][18] - Clinical revenue increased by 18% year-over-year, while non-clinical revenue declined by 27% [18] - Adjusted EBITDA was $12.2 million, marking the ninth consecutive quarter of positive earnings [21] - Average revenue per clinical test (AUP) increased by 3% year-over-year, with a sequential increase of 4% from Q2 [19][20] Business Line Data and Key Metrics Changes - Clinical business revenue grew by 15% excluding the Pathline acquisition, driven by effective execution of the commercial strategy [11] - NGS revenue grew by 24% year-over-year, accounting for 33% of total clinical revenue year-to-date [19] - Non-clinical revenue accounted for less than 9% of total revenue in Q3, consistent with expectations [12] Market Data and Key Metrics Changes - The therapy selection and MRD markets represent over $40 billion of addressable market opportunity, both growing rapidly [10] - MRD cancer surveillance and monitoring is estimated to be a $30 billion market, growing at a 30% CAGR with less than 10% market penetration [14] Company Strategy and Development Direction - The company is focused on advancing NGS and MRD long-term growth initiatives, including the launch of the RaDaR ST MRD assay [6][10] - The acquisition of Pathline enhances the company's presence in the Northeast, allowing for faster turnaround times and a broader test menu [8] - The company aims to consolidate send-out testing to simplify operational workflows and improve patient experience [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about significant opportunities in cancer testing, particularly in community settings where 80% of cancer care is delivered [7] - The company anticipates continued strong clinical performance and growth in NGS and MRD markets [17] - Full-year consolidated revenue guidance is revised to $720 million-$726 million, representing growth of 9%-10% over 2024 [22][23] Other Important Information - The company received a favorable court ruling regarding the RaDaR ST MRD assay, allowing for broader commercialization [12][13] - Cash flow from operations was positive at $9 million, with total cash at $164 million [21] Q&A Session Summary Question: How comfortable is the company with the guidance and the latest on PanTracer LBx? - Management believes they are in a good position to meet Q4 expectations and confirmed that PanTracer LBx does not need approval from MolDX to meet guidance [26][27] Question: What are the growth drivers expected for 2026? - Growth drivers for 2026 are expected to be similar to 2025, with strong clinical performance and ongoing NGS growth [31] Question: Where is the company seeing the most wins on the customer side for NGS? - Most growth is coming from community oncology practices, with strong performance from the PanTracer family of products [38] Question: What is the expected impact of the LIMS rollout? - The LIMS project is expected to deliver operational efficiencies starting in 2026, with significant benefits in 2027 and beyond [42][44] Question: How is the company addressing the challenges in the pharma business? - The company is focusing on execution excellence and leveraging new products like RaDaR and PanTracer LBx to improve relevance in the pharma space [54][56]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $188 million, representing a year-over-year growth of 12% [11][18] - Clinical revenue increased by 18% year-over-year, while non-clinical revenue declined by 27% [18] - Adjusted EBITDA was $12.2 million, marking the ninth consecutive quarter of positive earnings [18] - Average revenue per clinical test (AUP) increased by 3% year-over-year, with a sequential increase of $15 [19][20] Business Line Data and Key Metrics Changes - Clinical business revenue growth was 15% excluding the Pathline acquisition, driven by effective execution of the commercial strategy [11] - NGS revenue grew by 24% year-over-year, accounting for 33% of total clinical revenue year-to-date [19] - Total test volumes increased by 15% in Q3, with a same-store revenue growth of 15% [18][19] Market Data and Key Metrics Changes - The therapy selection and MRD markets represent over $40 billion of addressable market opportunity, both growing rapidly [10] - MRD cancer surveillance and monitoring is estimated to be a $30 billion addressable market, growing at a 30% CAGR [14] Company Strategy and Development Direction - The company is focused on advancing NGS and MRD long-term growth initiatives, including the launch of the Radar ST MRD assay [6][10] - The acquisition of Pathline enhances the company's presence in the Northeast, allowing for faster turnaround times and a broader test menu [8] - The company aims to consolidate send-out testing to simplify operational workflows and improve patient experience [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about significant opportunities in cancer testing, particularly in community settings where 80% of cancer care is delivered [7] - The company anticipates continued strong clinical performance and growth in NGS and MRD markets [17] - Full-year consolidated revenue guidance is revised to a range of $720 to $726 million, representing growth of 9% to 10% over 2024 [22][23] Other Important Information - The company has received Moldex approval for Radar ST in subsets of head and neck and breast cancer, preparing for a robust launch in Q1 2026 [13] - The LIMS project is expected to deliver operational efficiencies starting in 2026 and 2027 [22][44] Q&A Session Summary Question: How comfortable is the company with the guidance and the latest on PanTracer LBx? - Management believes they are in a good position to meet Q4 expectations and confirmed that PanTracer LBx does not require approval to meet guidance [27][32] Question: What is the growth outlook for MRD and its reimbursement? - Management expects MRD to contribute to revenue in 2026, with a slow revenue build anticipated [33][34] Question: Where is the company seeing wins in the NGS business? - Most growth is coming from community oncology practices, with strong performance from the PanTracer family of products [38][41] Question: What are the expected benefits from the LIMS rollout? - The LIMS system will simplify operations, improve turnaround times, and enhance customer experience, with benefits expected to materialize in 2026 and beyond [42][46] Question: How is the company addressing the challenges in the pharma business? - The company is focusing on execution excellence and leveraging new products like Radar ST and PanTracer LBx to regain traction in the pharma segment [54][56]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $188 million, representing a year-over-year growth of 12% and a sequential increase of 4% from Q2 2025 [11][18] - Clinical revenue grew by 18% year-over-year, while non-clinical revenue declined by 27% due to weakness in pharma revenue [18] - Adjusted EBITDA was $12.2 million, marking the ninth consecutive quarter of positive earnings [18] - Average revenue per clinical test (AUP) increased by 3% year-over-year and 4% sequentially from Q2 [19] Business Line Data and Key Metrics Changes - Clinical business revenue growth was driven by a 15% increase in test volumes and a 4% increase in AUP, excluding the Pathline acquisition [11][19] - NGS revenue grew by 24% year-over-year, accounting for 33% of total clinical revenue year-to-date [19] - Non-clinical revenue accounted for less than 9% of total revenue in Q3, consistent with expectations [12] Market Data and Key Metrics Changes - The therapy selection and MRD markets represent over $40 billion of addressable market opportunity, with MRD cancer surveillance and monitoring growing at a 30% CAGR [10][14] - The company estimates that MRD market penetration is less than 10%, indicating significant growth potential [14] Company Strategy and Development Direction - The company is focused on advancing NGS and MRD long-term growth initiatives, including the launch of the Radar ST MRD assay [5][13] - The acquisition of Pathline enhances the company's presence in the Northeast, allowing for faster turnaround times and a broader test menu [7][8] - The company aims to consolidate send-out testing to simplify operational workflows and improve patient experience [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the significant opportunities in cancer testing, particularly in community settings where 80% of cancer care is delivered [6] - The company is committed to innovation and operational excellence, which are expected to drive sustainable and profitable growth [23] - Full-year consolidated revenue guidance is revised to a range of $720 to $726 million, representing growth of 9% to 10% over 2024 [21][22] Other Important Information - The company has received Moldex approval for Radar ST in subsets of head and neck and breast cancer, with a robust launch planned for Q1 2026 [13] - Cash flow from operations was positive at $9 million, with total cash at $164 million, enabling continued investment in business growth [20] Q&A Session Summary Question: How comfortable is the company with the guidance and the latest on PanTracer LBx? - Management believes they are in a good position to meet Q4 expectations and confirmed that approval for liquid biopsy is not needed to meet guidance [25][26] Question: What are the growth drivers expected for 2026? - Growth drivers for 2026 are expected to be similar to 2025, with strong clinical performance and ongoing NGS growth [30] Question: Where is the company seeing the most wins on the customer side for NGS? - Most growth is coming from community oncology practices, with strong performance from the PanTracer family of products [38][39] Question: What is driving the acceleration in the base clinical business? - Effective execution of the Protect, Expand, Acquire strategy, new product introductions, and salesforce expansion are key drivers [66][68] Question: How is the Radar ST MRD assay being received following the favorable summary judgment? - There is increasing positive sentiment in the community oncology setting regarding the ability to re-enter the market with Radar ST [81] Question: What is the company's strategy for the LIMS rollout? - The LIMS consolidation is expected to deliver efficiencies and cost benefits, with early benefits anticipated in 2026 [44][47]

Financial Performance - Clinical revenue increased by 18%[17], or 15% excluding Pathline[20] - Clinical volume grew by 15%[19], or 10% excluding Pathline[20] - NGS revenue increased by 24% year-over-year[20] - Adjusted gross profit was $85 million, a 7% increase from the prior year[19, 20] - Adjusted EBITDA was $12 million, representing a 9% decrease[19] Financial Overview (Q3 2025 vs Q3 2024) - Revenue increased by 11.9% to $187.8 million[22] from $167.8 million[22] - Adjusted gross profit increased by 6.6% to $85.4 million[22] from $80.1 million[22] - Adjusted gross margin decreased by 228 bps to 45.5%[22] from 47.8%[22] - Adjusted EBITDA decreased by 8.5% to $12.2 million[22] from $13.4 million[22] - Cash and cash equivalents decreased by 54.7% to $164.1 million[22] from $361.9 million[22] FY 2025 Guidance - Revenue is projected to be between $720 million and $726 million, representing a year-over-year growth of 9% to 10%[21] - Adjusted EBITDA is projected to be between $41 million and $44 million, representing a year-over-year growth of 3% to 10%[21]