Personalis (NasdaqGM:PSNL) Q4 2025 Earnings call February 26, 2026 05:00 PM ET Company ParticipantsAaron Tachibana - CFO and COOCaroline Corner - Investor Relations ContactChris Hall - CEO and PresidentJason Kritzer - Managing Director and Co-Head of Value TeamRich Chen - Chief Medical Officer and EVP of R&DTom Stevens - VPVidyun Bais - VP of Equity ResearchConference Call ParticipantsBill Bonello - Senior Research AnalystSubbu Nambi - Managing Director and Equity Research AnalystThomas Flaten - Senior Rese ...

For full-year 2025, NeoGenomics reported total revenue of $727 million , up 10% versus 2024. Clinical revenue increased 15% (or 13% excluding the PathLine acquisition), while non-clinical revenue declined 24% for the year. Adjusted gross profit increased $23 million , or 8% , to $335 million , and adjusted EBITDA rose 9% to $43.4 million . Cash flow from operations was positive $5 million in 2025, and the company reported that free cash flow improved by over 35% compared with 2024.Chief Financial Officer Je ...

Company Overview - NeoGenomics is a healthcare company focused on providing diagnostic testing services for cancer patients, emphasizing the importance of their mission to improve patient outcomes [2][3] - The company has a dedicated team of over 2,500 employees who are passionate about their work and have a personal connection to cancer, which drives their commitment to the mission [2] Patient Impact - NeoGenomics recognizes the significant impact their services have on patients' lives during challenging times, highlighting the responsibility they feel to provide accurate and timely information to patients and their physicians [3] - The company aims to support patients in planning the right course of action based on the diagnostic information they provide [3]

Financial Data and Key Metrics Changes - The company has a market cap of approximately $12 million, with stock trading around $0.25 to $0.30 per share, indicating a significant decline from previous levels [30][53]. - The company is estimating to collect at least $50 million net from Crown Medical's initiatives, which is a significant potential cash influx [15][46]. Business Line Data and Key Metrics Changes - Crown Medical Collections is actively pursuing approximately $150 million in uncollected COVID testing claims, with a focus on underpaid claims from insurance companies [9][10]. - The BE-Smart Esophageal Cancer Test is positioned as a leading diagnostic tool for esophageal cancer, with a potential market value of $7 billion to $14 billion if reimbursement rates are between $1,000 and $2,000 per test [20][21]. Market Data and Key Metrics Changes - The company has identified a growing market for its esophageal cancer test, with 7 million endoscopies performed annually in the U.S. for high-risk patients, suggesting a substantial opportunity for commercialization [19][20]. - The company has a strong database from Nebula Genomics, which is considered more valuable than its current market cap, indicating significant underlying asset value [25]. Company Strategy and Development Direction - The company is focusing on strategic initiatives that could recognize significant underlying value, including a potential reverse stock split and a crypto treasury strategy [5][35]. - The management is committed to maintaining Nasdaq compliance to facilitate potential deals that could enhance shareholder value [35][49]. Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges faced in the past year but expresses optimism about upcoming cash flow from Crown Medical, which is expected to transform the company's financial position [27][55]. - The management believes that the stock price will improve significantly once cash flow from Crown Medical starts to materialize, and they are exploring various funding options to support operations until then [43][46]. Other Important Information - The company has undergone significant restructuring, including the sale of its Pharmaloz manufacturing facility and the shutdown of its Nebula Genomics laboratory, to streamline operations and reduce overhead [26]. - Management emphasizes the importance of shareholder voting on proxies to support strategic initiatives and ensure the company's future [4][35]. Q&A Session Summary Question: Can you clarify the potential major deals being worked on? - Management is exploring multiple deals, including a reverse crypto strategy and other strategic initiatives that could be accretive for shareholders [37]. Question: Is it possible that the stock price will go up or down after a reverse stock split? - Management indicates that a reverse stock split could lead to an increase in stock price, especially if the company maintains its underlying asset value [39]. Question: Does the crypto treasury strategy remain part of the company's vision? - Management confirms that the crypto treasury strategy is still on the table, but they are also pursuing other potentially accretive deals [42]. Question: How will the company pay employees and board going forward with limited cash? - Management states that they have multiple investors willing to support the company with various funding options, ensuring operational continuity [43]. Question: When will the company stop mentioning the possibility of collecting $25 million in accounts receivables? - Management believes that significant cash flow will start coming in soon, leading to a different financial situation for the company [55]. Question: Is it realistic to use a go-it-alone strategy for BE-Smart? - Management is considering partnerships for the BE-Smart test but aims to minimize expenses and leverage existing resources as cash flow improves [56][59].

Core Insights - Quest Diagnostics (DGX) is scheduled to release its third-quarter 2025 results on October 21, before market opening, with adjusted EPS of $2.62 in the last quarter, exceeding the Zacks Consensus Estimate by 1.95% [1] - The Zacks Consensus Estimate for Q3 2025 revenues is $2.72 billion, reflecting a 9.3% increase year-over-year, while EPS is projected to rise 9.1% to $2.51 [2] Revenue and Earnings Estimates - The revenue estimate for Q3 2025 indicates a significant growth trajectory, with a 9.3% increase from the previous year [2] - The EPS estimate suggests a 9.1% rise, indicating strong earnings potential for the quarter [2] Performance Trends - Earnings estimates for Q3 have remained stable over the past 30 days, suggesting confidence in the company's performance [3] - The company has consistently surpassed earnings estimates in the last four quarters, with an average surprise of 2.09% [1] Factors Influencing Q3 Results - The core Diagnostics Information Services (DIS) business is expected to show strong revenue growth, driven by physician and hospital channels [4] - Increased test orders per requisition and demand for clinical solutions are anticipated to sustain revenue momentum [4] - The partnership with Fresenius Medical Care is likely to enhance revenues from physician channels, supporting over 200,000 kidney dialysis patients [5] M&A Contributions - M&A activities contributed 10% growth in the previous quarter, with expectations for continued positive momentum in Q3 [6] - The acquisition of clinical testing assets from Fresenius Medical Care is projected to add a 7.1% contribution to DIS revenues [6] Strategic Developments - Collaborative Lab Solutions and strategic acquisitions are expected to drive growth in the hospital channel [7] - The enhanced questhealth.com platform and partnerships with consumer brands are likely to complement revenue growth [8] Advanced Diagnostics Performance - Robust revenues are anticipated in Advanced Diagnostics, particularly in Advanced Cardiometabolic and Brain Health areas [9] - The launch of a molecular test for diagnosing Oropouche virus is expected to positively impact revenues [10] Operational Excellence - The company is likely to continue leveraging automation, robotics, and AI to enhance operational efficiency and productivity [11] - Projected operating income (non-GAAP) is expected to increase by 21.4% year-over-year in Q3 [11] Earnings ESP and Zacks Rank - Quest Diagnostics has an Earnings ESP of +0.49%, indicating a higher chance of beating estimates [12] - The company currently holds a Zacks Rank of 3, suggesting a stable outlook [12]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $181 million, representing a 10% year-over-year growth, slightly below guidance [7][20] - Clinical revenue increased by 16% year-over-year, with organic clinical revenue at $160 million, reflecting a 13% growth driven by a 10% increase in test volumes [20][21] - Non-clinical revenue declined by 26% year-over-year, primarily due to weakness in pharma revenue [21] - Adjusted EBITDA was $10.7 million, down 2% from the prior year, marking the eighth consecutive quarter of positive adjusted EBITDA [21][22] - Cash flow from operations improved by 44% year-over-year to $20 million, with cash and marketable securities totaling $164 million at the end of the quarter [25] Business Line Data and Key Metrics Changes - NGS testing accounted for 32% of total clinical revenue, growing by 23% year-over-year, slightly below the 25% target [20][21] - Average revenue per clinical test increased by 2% to $461, with a 3% growth excluding Pathline [22] - The launch of the pan tracer liquid biopsy is expected to positively impact NGS growth later in the year [9][20] Market Data and Key Metrics Changes - The macro environment for pharma has created significant headwinds, including NIH funding uncertainty and drug pricing challenges, leading to budget restrictions and project delays [10][39] - The MRD market represents a significant unmet clinical need, estimated at $30 billion, with potential for transformative cancer care [13][14] Company Strategy and Development Direction - The company is focusing on execution excellence and aligning its cost structure with revenues to rebuild credibility with shareholders [9][16] - Strategic drivers include enhancing customer experience, strengthening community channels, and developing new products [11][12] - The company plans to invest in operating efficiencies, including a LIMS project and digital pathology, to achieve greater operational leverage [10][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q2 performance was below expectations but remains optimistic about future growth opportunities [6][9] - The company has updated its 2025 financial guidance to reflect current challenges, projecting revenue of $720 million to $726 million, representing 9% to 10% growth [24][25] - Management emphasized the importance of transparency and confidence in guidance, aiming to exceed goals moving forward [32][37] Other Important Information - The company is committed to the MRD space and has ongoing litigation related to RADAR ID, with a trial expected in October [53][55] - The integration of Pathline is on track, with revenues meeting internal expectations and plans to leverage the broader portfolio for cross-selling [80][81] Q&A Session Summary Question: Guidance Setting Process - The CEO discussed the learning curve in setting guidance and the need for transparency and confidence in communicating with investors [32][34] Question: 2025 Guidance Changes - The CEO highlighted that the macro environment for pharma significantly impacted the guidance, accounting for about two-thirds of the changes [39][40] Question: Portfolio Pruning Opportunities - The company is evaluating its portfolio to focus on the most profitable products while maintaining a comprehensive offering for customers [46][51] Question: Non-Clinical Business Viability - Management confirmed commitment to the non-clinical space, citing its strategic value and potential for future growth despite current challenges [72][75] Question: Pathline Integration and Cross-Selling - The integration of Pathline is progressing well, with expectations for enhanced revenue generation through cross-selling in the Northeast [80][81]

Financial Performance - Revenue reached $1813 million, a 102% increase compared to the previous year[20],[25] - Adjusted Gross Profit was $824 million, representing a 59% growth[20],[25] - Adjusted EBITDA stood at $107 million, remaining relatively flat compared to the prior year[20],[25] - Cash Flow from Operations increased significantly by 463% to $203 million[20],[25] - NGS revenue experienced substantial growth of 23% year-over-year[23] Margins and Profitability - Adjusted Gross Margin declined by 184 bps to 454%, primarily due to the Pathline acquisition[23],[25] - Adjusted EBITDA excluding Pathline grew by 13% compared to the previous year[23] Guidance and Outlook - The company revised its full-year 2025 revenue guidance to $720-$726 million, indicating a 9-10% year-over-year growth[24] - The company also updated its Adjusted EBITDA guidance for 2025 to $41-$44 million, reflecting a 3-10% year-over-year increase[24] Clinical Performance - Clinical volume reached 357 thousand units in Q2 2025[12] - Clinical revenue was $164 million in Q2 2025[14]

Financial Performance & Growth - Exact Sciences reported total revenue of $2.76 billion in 2024, a 10% year-over-year increase[7] - Adjusted EBITDA for 2024 was $323 million, up 48% year-over-year[7] - The company anticipates total revenue between $3.07 billion and $3.12 billion in 2025, representing a 12% increase at the midpoint[47] - Screening revenue in 2024 was $2.104 billion and is projected to be between $2.39 billion and $2.425 billion in 2025, a 14% increase at the midpoint[20, 47] - Precision Oncology revenue in 2024 was $655 million and is projected to be between $680 million and $695 million in 2025, a 5% increase at the midpoint[29, 47] - The company is targeting approximately 15% compounded annual revenue growth from 2022-2027 and over 20% adjusted EBITDA margin in 2027[50, 52] Product Development & Market Opportunity - Exact Sciences is launching three new advanced cancer tests in 2025: Oncodetect for molecular residual disease ($18 billion TAM), Cancerguard for multi-cancer screening ($25 billion TAM), and Cologuard Plus for colon cancer screening ($15 billion TAM)[4, 5] - Cologuard has saved the U S healthcare system $22 billion[16] - Cancerguard could reduce cancer mortality by 17%[41]

Core Insights - Labcorp (LH) has expanded its precision oncology portfolio with new test offerings for solid tumors and hematologic malignancies, along with enhanced biopharma solutions aimed at accelerating clinical trials and companion diagnostic development [1][8]. Company Developments - Following the announcement, Labcorp shares increased by 0.9%, closing at $248.97, with a focus on oncology expected to drive growth opportunities, projected to grow up to 3x faster than other therapeutic areas [2]. - Labcorp's market capitalization stands at $20.84 billion, with earnings expected to grow by 10.2% and revenues by 6.9% in 2025, based on the Zacks Consensus Estimate [3]. - The company introduced new NGS panels for myeloid, lymphoid, and pan-heme indications, enhancing genomic coverage and actionable insights for hematologic malignancies [4]. - The launch of the Rapid AML Panel aims to improve testing for acute myeloid leukemia, while the OmniSeq INSIGHT test will now include homologous recombination deficiency (HRD) testing for ovarian cancer patients [5]. - Labcorp has launched Labcorp Plasma Focus, a solid tumor liquid biopsy test, and an enhanced digital pathology platform to support companion diagnostic development [6][9]. Industry Prospects - The global precision oncology market is projected to exceed $312.33 billion by 2034, growing at a compound annual growth rate of 10% from 2024 to 2034, driven by rising cancer prevalence and advancements in technologies like next-generation sequencing [10]. - Labcorp's recent acquisition of select assets from Incyte Diagnostics' clinical testing business includes several same-day testing labs and key anatomic pathology facilities [11]. Stock Performance - Over the past year, Labcorp shares have increased by 27.7%, significantly outperforming the industry, which saw a decline of 2.3% [12].

Q1 2025 Financial Highlights - Total revenue reached $84.7 million, an 18% increase year-over-year[13] - Testing Services volume grew to approximately 47,100 tests, a 12% increase year-over-year[18] - The company achieved a non-GAAP gross margin of 68.5%, a 150 basis points improvement year-over-year[39] - Adjusted EBITDA was positive at $4.6 million, a $6.4 million improvement year-over-year[14] - The company holds a strong cash balance of approximately $231 million, with no debt[15] Commercial Coverage and Clinical Evidence - Expanded AlloMap® Heart coverage by 3.5 million commercial lives and added 15.5 million new commercial covered lives for AlloSure[11] - Submitted the second manuscript of the SHORE (Surveillance HeartCare Outcomes Registry) study for publication[12] 2025 Guidance - Reaffirmed full-year revenue guidance of $365 million – $375 million[16] - The company estimates ASP to be approximately $1,360 per test on a blended basis[59]