Financial Data and Key Metrics Changes - Total revenue in Q3 2025 was $83.5 million, representing a 117% increase compared to $38.4 million in Q3 2024 [20][25] - Gross margin reached 70% in Q3 2025, a 17 percentage point increase from 53% in Q3 2024 [19][23] - Operating income was $9.6 million in Q3 2025, compared to an operating loss of $12.6 million in Q3 2024, marking the first quarter of positive GAAP operating income [24][25] Business Line Data and Key Metrics Changes - Prenatal revenues were $74.1 million in Q3 2025, growing over 100% year-over-year [21][25] - Oncology revenues increased 7.6 times to $8.7 million in Q3 2025 compared to the same period last year [21][25] - Test volume grew 51% year-over-year to 163,000 tests in Q3 2025 [13][29] Market Data and Key Metrics Changes - The company reported a 51% test growth and 117% revenue growth year-over-year in Q3 2025 [9][10] - The annualized revenue run rate (ARR) reached $334 million in Q3 2025, a $69 million increase sequentially compared to Q2 2025 [16][20] - The company has approximately 235 million contracted lives for payer coverage [17] Company Strategy and Development Direction - The long-term goal is to build a category-defining generational company and become a member of the S&P 500 [9] - The company is focusing on expanding its sales team and investing in electronic medical records (EMR) to enhance adoption in health systems [15][30] - The company aims to maintain capital and operational efficiency while achieving emerging profitability [8][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to positively change the trajectory of millions of patients' lives [30] - The company anticipates continued growth momentum despite Q4 being historically a slower quarter [27] - Management highlighted the importance of their unique technology and differentiated products in driving growth [7][10] Other Important Information - The company completed a successful IPO on NASDAQ, raising $314 million in gross proceeds [5] - The company has established an exclusive agreement with Johnson & Johnson for hemolytic disease of fetus and newborn [11] - The company expects total revenue for 2025 to be between $293 million and $299 million, representing a growth of 92% to 96% compared to 2024 [26][27] Q&A Session Summary Question: Plans for positive GAAP net income in 2026 - Management aims to continue growing the company profitably, with specific guidance for 2026 to be provided at a later date [32][33] Question: Timing for Medicare coverage for oncology tests - Management expects the first Medicare coverage for Northstar Response to come before the end of 2026 [34][35] Question: Guidance process and conservatism in forecasts - Management has been operating close to a public company for the last few years and has been conservative in projections [40][41] Question: Impact of EMR investment on business - Management believes EMR integration will significantly accelerate adoption in large health systems [49][51] Question: Clinical spending compared to competitors - Management recognizes the importance of investing in clinical studies but aims to focus on studies that answer specific physician questions [55][56] Question: Mix between monitoring and therapy selection tests - Management indicated a two-to-one ratio for Response tests to Select tests, with most providers using both together [61] Question: Sales force expansion expectations - Management plans to add eight to ten net reps for prenatal and four to six for oncology each quarter [66][67] Question: Contribution of Medicaid coverage to ASP growth - Management noted that incorporating the PLA code into Medicaid coverage can significantly impact ASPs over time [70] Question: Future gross margin expectations - Management expects to maintain gross margins in the high 60s% for the next several quarters [75][78] Question: Timelines for MRD data and indications - Management expects to launch MRD for a pan-cancer indication towards the end of 2026 [88]

Financial Data and Key Metrics Changes - Total revenue in Q3 2025 was $83.5 million, representing a 117% increase compared to $38 million in Q3 2024 [19][20] - Gross margins reached 70%, a 17 percentage point increase from 53% in Q3 2024 [18][20] - The company achieved positive GAAP operating margin of 11.5% in Q3 2025, marking the first quarter of positive GAAP operating income [22][23] Business Line Data and Key Metrics Changes - Prenatal revenues were $74.1 million, growing over 100% year-over-year, while oncology revenues increased 664% to $8.7 million [15][19] - Total test volume grew 51% year-over-year to 163,000 tests in Q3 2025 [12] - Average selling prices (ASVs) increased by 44% year-over-year to $501 in Q4 2025 [16] Market Data and Key Metrics Changes - The company has approximately 235 million contracted lives, indicating expanded payer coverage [16] - The oncology business is growing faster than the prenatal business, contributing significantly to revenue growth [15] Company Strategy and Development Direction - The long-term goal is to build a category-defining generational company and become a member of the S&P 500 [8] - The company plans to invest more heavily in electronic medical records (EMR) to facilitate adoption in large health systems [13][35] - The focus is on maintaining capital and operational efficiency while achieving profitability [7][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth and profitability, with expectations for positive GAAP operating income in Q4 and for the full year of 2025 [26] - The company anticipates a total revenue of $293 million to $299 million for 2025, representing a growth of 92% to 96% compared to 2024 [24][25] - Management noted that competitive product launches have not impacted business growth so far [12][50] Other Important Information - The company completed a successful IPO, raising $314 million in gross proceeds [4] - Recent publications validate the clinical utility of the company's products, enhancing credibility in the market [10][11] Q&A Session Summary Question: Future GAAP net income expectations - Management aims to continue growing profitably and expects to maintain positive GAAP net income in 2026 [28][29] Question: Timing for oncology test reimbursements - The first Medicare coverage for Northstar Response is expected before the end of 2026 [30] Question: Guidance process as a public company - The company has been operating close to a public company for the last few years and has been conservative in its projections [31][32] Question: Impact of EMR investment - Investing in EMR is expected to significantly accelerate adoption in large health systems [34][35] Question: Clinical spending compared to competitors - Management recognizes the importance of investing in clinical studies but aims to focus on studies that address specific physician needs [38] Question: Mix between monitoring and therapy selection tests - The company sees a two-to-one ratio for Response tests to Select tests, with most providers using both together [41] Question: Sales force expansion plans - The company plans to add 8 to 10 net reps per quarter for prenatal and 4 to 6 for oncology [42][43] Question: Contribution of Medicaid coverage to ASP growth - The integration of Medicaid coverage for the Unity Carrier panel is expected to have a significant long-term impact on ASPs [44] Question: Future gross margin expectations - Management expects to maintain gross margins in the high 60s% for the next several quarters [46][47] Question: MRD timelines and competitive landscape - The company plans to launch MRD tests towards the end of 2026, focusing on tumor-naive MRD [49][50]