Financial Data and Key Metrics Changes - Total company revenue for Q4 2025 was $71.7 million, representing a 63% year-over-year increase, while full-year revenue was $277 million, reflecting a 55% growth compared to the previous year [20][21] - Adjusted EBITDA for Q4 was $4.1 million, a significant improvement from a loss of $16.4 million in the same quarter last year, and for the full year, adjusted EBITDA was $12.2 million compared to a loss of $80.4 million in 2024 [21][22] - The net loss for Q4 was $13.6 million, and for the full year, it was $59.5 million [22] Business Line Data and Key Metrics Changes - In the MRD business, full-year revenue grew 46% year-over-year, with clinical testing revenue increasing 64% for the full year and 59% in Q4 [5][8] - clonoSEQ test volume reached 30,038 tests in Q4, up 43% year-over-year, with blood-based testing accounting for 47% of total tests [8][9] - Immune Medicine revenue was $9.8 million in Q4, up from $3.8 million a year ago, primarily driven by data licensing agreements with Pfizer [22][23] Market Data and Key Metrics Changes - The MRD pharma business saw a revenue growth of 20% year-over-year, with multiple myeloma accounting for roughly 70% of sequencing revenue [12] - The average ASP in the U.S. for clonoSEQ tests was $1,307, up 17% year-over-year, and the company expects to reach approximately $1,400 per test in 2026 [10][11] Company Strategy and Development Direction - The company aims to continue driving top-line growth while expanding margins, focusing on MRD revenue growth and profitability [14][27] - In 2026, the company expects clonoSEQ test volumes to grow by more than 30% year-over-year, with a significant shift towards blood-based testing [15][16] - The Immune Medicine business is focusing on generating large-scale proprietary immune receptor data and monetizing this data through partnerships [18][19] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive adjusted EBITDA and free cash flow by the end of 2026, with a focus on disciplined spending and operational efficiency [26] - The company is optimistic about the momentum in MRD and the potential for continued growth in the Immune Medicine sector [27] Other Important Information - The company ended the year with a strong cash position of $227 million, providing flexibility for future investments [22][24] - The company plans to maintain a disciplined capital allocation strategy, with a target net cash burn of $15 million to $20 million for the Immune Medicine business in 2026 [19] Q&A Session Summary Question: Discussion on clonoSEQ volume trends and seasonality - Management acknowledged Q4's strong results and noted that Q1 typically experiences some seasonality due to holidays and weather, but they remain confident in achieving strong sequential growth in Q1 [30][32] Question: Penetration rates in DLBCL and competition - Management highlighted the importance of data generation, guideline advancements, and deepening penetration with pharma to increase market share in DLBCL, where current penetration is low [34][36] Question: Competitive flow cytometry assay and pricing - Management emphasized that flow-based methods are inherently less sensitive than clonoSEQ, which maintains a significant advantage in sensitivity for myeloma testing [40][42] Question: ASP pacing and payer negotiations - Management indicated that ASP growth is expected to be linear, with ongoing negotiations with key payers that could impact ASP realization [43][44] Question: EBITDA guidance for 2026 - Management clarified that they expect to achieve positive adjusted EBITDA by the end of Q4 2026, with MRD expected to contribute positively [46][47] Question: Community and blood-based testing growth assumptions - Management expressed confidence in the potential for further growth in blood-based testing and community penetration, with ongoing investments to drive these areas [50][51] Question: Monetization of the Immune Medicine data - Management discussed the potential for additional data licensing deals and the value of their proprietary dataset in various immunology applications [72][73]

Financial Data and Key Metrics Changes - Total company revenue for Q4 2025 was $71.7 million, representing a 63% year-over-year increase, while full-year revenue was $277 million, reflecting a 55% growth compared to the previous year [19][20] - Adjusted EBITDA for Q4 was $4.1 million, a significant improvement from a loss of $16.4 million in the same quarter last year, and for the full year, adjusted EBITDA was $12.2 million compared to a loss of $80.4 million in 2024 [19][20] - The net loss for Q4 was $13.6 million, and for the full year, it was $59.5 million [20] Business Line Data and Key Metrics Changes - In the MRD business, revenue grew 54% year-over-year in Q4, with clinical and pharma contributions of 67% and 33%, respectively [20] - clonoSEQ test volume increased by 43% year-over-year, reaching 30,038 tests in Q4 [20] - Immune medicine revenue was $9.8 million in Q4, up from $3.8 million a year ago, primarily driven by data licensing agreements with Pfizer [21] Market Data and Key Metrics Changes - The MRD pharma business saw a revenue growth of 20% year-over-year, with multiple myeloma accounting for approximately 70% of sequencing revenue [11] - The average ASP in the U.S. for clonoSEQ tests was $1,307, up 17% year-over-year, and the company expects to increase it to approximately $1,400 per test in 2026 [10][24] Company Strategy and Development Direction - The company aims to continue driving top-line growth while expanding margins, focusing on MRD revenue growth and profitability [12][15] - In immune medicine, the strategy includes advancing TCR antigen datasets and AI/ML modeling work, with a target net cash burn of $15-$20 million [18] - The company plans to leverage its large-scale proprietary data for monetization through licensing deals, particularly in immunology applications [17][75] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong sequential growth in Q1 2026 despite potential weather-related impacts on sample arrival [31] - The company anticipates continued growth in clonoSEQ test volumes, with expectations of over 30% year-over-year growth supported by blood-based testing and deeper community penetration [13][14] - Management highlighted the importance of maintaining a strong cash position, ending 2025 with $227 million in cash, cash equivalents, and marketable securities [23] Other Important Information - The company achieved a 68% reduction in cash burn, indicating improved operational efficiency [6] - The MRD business is expected to generate between $255-$265 million in revenue for 2026, with a focus on expanding market presence and leveraging existing infrastructure [24] Q&A Session Summary Question: Can you discuss the sequential step up in clonoSEQ volume and any seasonality? - Management noted that Q4 results demonstrated strong growth and that Q1 typically experiences some seasonality due to holidays and weather, but they remain confident in achieving strong growth in Q1 [30][31] Question: How should we think about penetration rates in DLBCL? - Management indicated that they are applying lessons learned from multiple myeloma to increase penetration in DLBCL, focusing on data generation and expanding commercial payer coverage [32][34] Question: Thoughts on a competitor's flow cytometry assay? - Management emphasized that flow-based methods are inherently less sensitive than clonoSEQ, which maintains a significant advantage in sensitivity for MRD assessment [40][42] Question: Can you elaborate on the EBITDA guidance for 2026? - Management clarified that they expect to achieve positive adjusted EBITDA by the end of Q4 2026, with MRD already contributing positively [46][48] Question: What are the expectations for ASP growth in 2026? - Management indicated that ASP growth is expected to be linear, with ongoing negotiations with key payers influencing the final rates [58][60]