Financial Data and Key Metrics Changes - Exagen reported record revenue of $17.2 million for Q2 2025, representing a 14% year-over-year growth, marking the highest quarterly revenue in the company's history [5][23] - The average revenue per territory reached over $430,000 for the quarter, up from $285,000 two years ago, indicating significant commercial leverage [6] - Gross margin improved to just over 60%, up from about 59% in Q1 and 60% in Q2 2024, reflecting higher average selling prices (ASP) and normalization of lab operations [24] Business Line Data and Key Metrics Changes - The Advise CTD test volume growth was substantial, with the best quarterly volume since strategic adjustments were made in 2023 [6] - ASP for the trailing twelve months grew by $27 year-over-year to $428, driven primarily by new biomarkers [23] Market Data and Key Metrics Changes - The company is currently around 10% penetrated in its market, indicating significant room for growth [35] - The expansion of the physician base and consistent ordering patterns from high-value clinicians contributed to revenue growth [7][9] Company Strategy and Development Direction - Exagen is focused on building leadership in autoimmune diagnostics through disciplined execution, physician engagement, and innovation [5] - The company plans to launch additional biomarkers, including anti-PAD antibodies, to strengthen its value proposition in rheumatoid arthritis [54] - Strategic investments in R&D and commercial expansion are ongoing, with a focus on achieving profitability and improving patient outcomes [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of volume growth, attributing it to a strong team and the introduction of new biomarkers [35] - The company expects to achieve positive adjusted EBITDA by Q4 2025 and maintain it throughout 2026 [28] Other Important Information - Exagen ended the quarter with over $30 million in cash and equivalents, positioning itself for near free cash flow positive status [27] - The addition of key personnel, including a new Chief Scientific Officer, is expected to enhance the company's R&D capabilities [14] Q&A Session Summary Question: Sustainability of Volume Growth - Management believes the recent volume growth is sustainable due to a strong team and the introduction of new biomarkers, with a market penetration of just under 10% [35] Question: ASP Progress - Management remains optimistic about achieving a $90 increase in ASP by the end of 2025, despite some adjustments made to align accrual rates with cash collections [41] Question: Market Access Initiatives - The company is enhancing marketing campaigns and training for the sales team to drive awareness and adoption of its products, focusing on building trust within the clinical community [92] Question: Expansion of Territories - Exagen started Q2 with 40 territories and expanded to 42, with plans to reach 44 by year-end, emphasizing the importance of field-based representatives for growth [72][75]

Financial Data and Key Metrics Changes - Exagen reported record revenue of $17.2 million for Q2 2025, representing a 14% year-over-year growth and the highest quarterly revenue in company history [4][22]. - The average revenue per territory reached over $430,000 for the quarter, up from $285,000 a couple of years ago, indicating significant commercial leverage [5][6]. - Gross margin improved to just over 60%, up from about 59% in Q1 and 60% in Q2 2024, reflecting higher average selling prices (ASP) and normalization of lab operations [23]. Business Line Data and Key Metrics Changes - The Advise CTD test volume growth was substantial, with the best quarterly volume since strategic adjustments were made in 2023 [5]. - The ASP for the trailing twelve months grew by $27 year-over-year to $428, driven primarily by new biomarkers [22]. Market Data and Key Metrics Changes - The company is currently around 10% penetrated in its market, indicating significant room for growth [35]. - The revenue growth was driven by increased ordering within the physician base and expansion of the physician base [6][19]. Company Strategy and Development Direction - Exagen is focused on building leadership in autoimmune diagnostics through disciplined execution, physician engagement, and innovation [4]. - The company plans to launch additional biomarkers, including anti PAD antibodies, to strengthen its value proposition in the rheumatoid arthritis space [52]. - Strategic investments are being made in R&D and commercial expansion while maintaining a path to profitability [28]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of volume growth, attributing it to a strong team and the introduction of new biomarkers [35]. - The company expects to achieve positive adjusted EBITDA by Q4 2025 and maintain it throughout 2026 [28]. - Management highlighted the importance of building trust and value in clinical practice to drive adoption of new biomarkers [90]. Other Important Information - The company ended the quarter with over $30 million in cash and equivalents, positioning itself for near free cash flow positive status [26]. - Exagen made key leadership hires, including a new Chief Scientific Officer, to enhance its R&D capabilities [13][14]. Q&A Session Summary Question: Sustainability of Volume Growth - Management believes the recent volume growth is sustainable due to a strong team and the introduction of new biomarkers, with a market penetration of just under 10% [35]. Question: ASP Progress - Management remains optimistic about achieving a $90 increase in ASP by the end of 2025, despite some adjustments made to accrual rates [38][41]. Question: Seasonal Trends in Volume - Management does not provide quarterly volume guidance but expects continued improvement in the second half of the year, aided by sales expansion [48]. Question: Expansion of Territories - The company started Q2 with 40 territories and expanded to 42, with plans to reach 44 by year-end [71][72]. Question: Market Access Initiatives - Exagen is enhancing its marketing campaigns and focusing on building trust with clinicians to drive volume growth [90].

Financial Data and Key Metrics Changes - The company achieved record revenue of $15,500,000 for Q1 2025, representing an approximately 8% increase compared to Q1 2024 [23] - The average selling price (ASP) for advised CTD tests increased to $419 per test, driven by the addition of new biomarkers [24] - Gross margin for Q1 was 58.9%, slightly down from 59.6% in 2024, with expectations for improvement throughout 2025 [26][27] - The net loss for Q1 was $3,800,000 compared to $3,400,000 in the same period last year, with an adjusted EBITDA loss of $2,500,000 versus $2,000,000 in Q1 2024 [29] Business Line Data and Key Metrics Changes - The company reported a 6% increase in testing volume over Q4 performance, attributed to the successful launch of new biomarkers [11] - The ASP is expected to receive an incremental boost of approximately $90 by the end of the year from the new markers [10] Market Data and Key Metrics Changes - The company has secured positive medical policy with TRICARE, which will enhance reimbursement for active duty service members and their families [9] - The company is focusing on expanding its presence in the rheumatology market, currently servicing about one-third of the community [40] Company Strategy and Development Direction - The company aims to achieve positive adjusted EBITDA by the end of 2025, with a focus on expanding ASP and volume [11][34] - Future innovations include the launch of seronegative markers expected by the end of the year, which are anticipated to improve sensitivity for identifying rheumatoid arthritis patients [16][17] - The company is exploring strategic transactions related to autoimmune disease diagnostics, with a focus on novel biomarker development [70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about meeting profitability goals, citing strong early traction from new biomarkers and improved sales team stability [22][34] - The company is well-positioned from a balance sheet perspective, with nearly $80,000,000 in combined cash, accounts receivable, and available future credit capacity as of April 30 [34] Other Important Information - The company has successfully won its first ALJ hearing, which is expected to set a precedent for future appeals [8] - The new credit facility with Perceptive Advisors extends the maturity of prior term debt, providing flexibility for growth initiatives [31][32] Q&A Session Summary Question: Expectations for volume growth throughout the year - Management is pleased with Q1 volume growth and expects it to continue, focusing on existing physician bases and expanding into the rheumatology market [40][42] Question: Update on the launch of the second wave of RIM markers - The launch is expected around year-end, with preparations underway for regulatory approvals [58][60] Question: Market awareness of new enhanced tests - Awareness varies regionally, with ongoing educational efforts to inform physicians about new markers [61][64] Question: Types of strategic transactions considered - The company is likely to pursue opportunities related to existing business in the autoimmune space, particularly in biomarker development [70] Question: Progress in kidney disease diagnostics - The company is committed to advancing early markers for kidney disease, with promising science and significant patient need [76][79] Question: Impact of ALJ hearing wins - Management has several hearings scheduled and expects to learn from each to improve future appeals [85]

Financial Data and Key Metrics Changes - The company reported record revenue of $15.5 million for Q1 2025, representing an approximately 8% increase compared to Q1 2024 [21] - The average selling price (ASP) for the advised CTD tests increased to $419 per test, driven by the addition of new biomarkers [21] - Gross margin for Q1 2025 was 58.9%, slightly down from 59.6% in 2024, with expectations for improvement throughout the year [23] - The net loss for Q1 2025 was $3.8 million, compared to $3.4 million in the same period last year [26] Business Line Data and Key Metrics Changes - The company achieved a 6% increase in testing volume over Q4 2024, attributed to the successful launch of new biomarkers [9] - The ASP is expected to receive an incremental boost of approximately $90 by the end of 2025 from the new markers [8] Market Data and Key Metrics Changes - The company has secured positive medical policy with TRICARE, which will enhance reimbursement for its tests [7] - The company is focusing on expanding its presence in the rheumatology market, currently servicing about one-third of the community [36] Company Strategy and Development Direction - The company aims to achieve positive adjusted EBITDA by the end of 2025, with a focus on expanding ASP and volume [9][30] - Future innovations include the launch of seronegative markers expected by the end of 2025, which are anticipated to improve sensitivity for identifying rheumatoid arthritis patients [14][15] - The company is exploring strategic transactions related to autoimmune disease diagnostics, with a focus on biomarker development [67] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about meeting profitability goals, citing the successful launch of new biomarkers and improved reimbursement efforts [20][30] - The company is encouraged by the momentum gained from recent ALJ hearing wins and positive medical policy changes [7][88] Other Important Information - The company has refinanced its debt with a new credit facility from Perceptive Advisors, extending maturity and providing additional borrowing capacity [13][29] - The company ended Q1 2025 with cash and cash equivalents of over $11 million and an accounts receivable balance of just under $15 million [27] Q&A Session Summary Question: Expectations for volume growth throughout the year - Management indicated that they expect volume to grow throughout 2025, with a focus on increasing tests per physician and expanding their reach in the rheumatology market [36][38] Question: Details on the impact of new markers on volume growth - Management noted that the stability of the sales team and the excitement around new markers are key drivers for volume growth, with expectations for continued improvement [44] Question: Update on the launch of the second wave of RA markers - The company expects to launch the second wave of RA markers by the end of 2025 or early 2026, pending regulatory approvals [55] Question: Insights on market awareness of new tests - Management acknowledged that while awareness is reasonable among existing users, further education efforts will be necessary to fully inform the broader physician community [60][61] Question: Strategic transactions and their potential focus - Management indicated that potential strategic transactions would likely relate to existing business in the autoimmune space, particularly in biomarker development [67] Question: Update on ALJ hearings and their impact - Management shared that they have several ALJ hearings scheduled and are learning from past experiences to improve their appeal processes [81][83] Question: Learnings from TRICARE's positive medical policy - Management highlighted that the positive determination from TRICARE validates their evidence and can be leveraged in discussions with other payers [88][90]