NeoGenomics (NasdaqCM:NEO) Q4 2025 Earnings call February 17, 2026 08:30 AM ET Company ParticipantsAbhishek Jain - EVP of Finance and Incoming CFOJeff Sherman - CFOKendra Webster - VP of Investor RelationsTony Zook - CEOWarren Stone - Chief Commercial OfficerConference Call ParticipantsAndrew Brackman - Equity Research AnalystAndrew Cooper - Equity Research AnalystBill Bonello - Equity Research AnalystDan Brennan - Equity Research AnalystDavid Westenberg - Equity Research AnalystMark Massaro - Equity Resear ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $190 million, representing an 11% year-over-year growth, while full-year revenue reached $727 million, a 10% increase over 2024 [8][23] - Adjusted gross profit improved by $5.8 million, or 7% year-over-year, with adjusted EBITDA at $13.4 million, up 10% [20] - Cash flow from operations was positive at $1 million for Q4, with total cash at $160 million, slightly down from Q3 [22] Business Line Data and Key Metrics Changes - Clinical business revenue increased by 16% year-over-year in Q4, driven by effective commercial strategies and growth in test volumes [8][20] - NGS revenue grew by 23% year-over-year, accounting for about one-third of total clinical revenue [21] - Non-clinical revenue declined by over 25% in Q4 and 24% for the full year, aligning with revised expectations [20][23] Market Data and Key Metrics Changes - The company holds a leadership position in the hematology testing market with over 25% market share [10] - Approximately 40% of active pathologists and oncologists ordered five or more tests from the company during the year, indicating significant market penetration [11] Company Strategy and Development Direction - The company aims to drive strategic, profitable growth through continued expansion of NGS revenues and market penetration for the PanTracer family and RaDaR ST [29] - The focus is on enhancing customer workflows and productivity through investments in technology and automation [29] - The company plans to expand its sales force to support the launch of RaDaR ST and penetrate the head and neck market [14][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue guidance for 2026, expecting revenues between $793 million and $801 million, with a focus on RaDaR ST and PanTracer Liquid contributions [25][27] - The company anticipates modest erosion in the pharma business for 2026, with a return to growth expected in 2027 [70][74] Other Important Information - The company is preparing for a full clinical launch of the RaDaR ST MRD assay, with expectations for revenue growth to accelerate in 2027 and beyond [14][27] - The integration of a common LIMS system is expected to enhance operational efficiencies and customer experience, with more pronounced benefits anticipated in 2027 and 2028 [59][63] Q&A Session Summary Question: Can you provide specifics on the RaDaR ST launch and sales rep expansion? - Management confirmed the full launch of RaDaR ST is planned for the end of the month, focusing on head and neck and breast cancer indications, with an initial sales force expansion targeting ENTs [34][38] Question: What is the impact of exiting low-value business on clinical volume? - Management indicated that exiting low-value contracts is expected to lead to higher AUP growth, with a focus on therapy selection and MRD driving overall revenue growth [45][46] Question: What are the expectations for the pharma business in 2026? - Management anticipates modest erosion in the pharma business for 2026, with a return to growth expected in 2027, driven by RaDaR ST [70][74] Question: How is the sales force performing after recent expansions? - The sales force is expected to contribute positively to growth, with oncology sales specialists focusing on therapy selection and supporting the RaDaR ST launch [90]

Core Insights - NeoGenomics reported a 10% increase in full-year revenue to $727 million, with clinical revenue growing 15% [1] - The company successfully resolved RaDaR ST patent litigation, enhancing its product offerings [1] Financial Performance - Fourth quarter consolidated revenue rose 11% to $190 million, while full-year consolidated revenue increased 10% to $727 million [1] - The net loss for the fourth quarter decreased by 36% to $10 million, but the full-year net loss increased by 37% to $108 million [1] - Adjusted EBITDA for the fourth quarter was positive at $13 million, a 13% increase, and for the full year, it rose 9% to $43 million [1] Growth Drivers - The company experienced a 23% growth in Next-Generation Sequencing (NGS) in Q4 and 22% for the full year, outpacing market growth [1] - The upcoming clinical launch of the RaDaR ST MRD assay is expected to tap into the $20+ billion molecular residual disease monitoring market [1] Operational Metrics - Average revenue per clinical test increased by 5% to $488, with a 7% growth excluding Pathline tests [1] - Consolidated gross profit for Q4 was $83 million, an 8% increase, leading to a gross profit margin of 43.8% [1] Future Guidance - For FY 2026, the company projects consolidated revenue between $793 million and $801 million, representing a 9% to 10% year-over-year increase [1] - The anticipated net loss for 2026 is expected to range from $63 million to $50 million, a significant improvement from 2025 [1]

Core Insights - NeoGenomics, Inc. will participate in the Stephens Annual Investment Conference and the Piper Sandler 37th Annual Healthcare Conference, showcasing its commitment to engaging with investors [3][7]. Company Overview - NeoGenomics is a leading cancer diagnostics company specializing in cancer genetics testing and information services, offering a comprehensive oncology-focused testing menu [2]. - The company serves a wide range of clients, including oncologists, pathologists, hospital systems, academic centers, and pharmaceutical firms, providing innovative diagnostic and predictive testing to aid in cancer diagnosis and treatment [2]. Upcoming Events - The company will present at the Stephens Annual Investment Conference in Nashville, TN, on November 19 at 1:00 pm CT [3]. - NeoGenomics will also participate in a fireside chat at the Piper Sandler 37th Annual Healthcare Conference in New York, NY, on December 2 at 2:30 pm ET [3].

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]

Core Insights - NeoGenomics reported a total revenue of $188 million for Q3 2025, marking a 12% year-over-year increase, driven by strong clinical revenue growth of 18% [1][3][4] - The company reaffirmed its full-year guidance for revenue, net loss, and adjusted EBITDA, indicating confidence in its growth trajectory despite challenges in non-clinical revenue [1][9] Financial Performance - Clinical revenue grew by 18%, with Next-Generation Sequencing (NGS) revenue increasing by 24% year-over-year, now representing nearly one-third of clinical revenue [1][3][4] - Average revenue per clinical test rose by 3% to $476, reflecting a shift towards higher-value tests [4] - Consolidated gross profit for Q3 2025 was $80 million, a 7% increase compared to Q3 2024, with a gross profit margin of 43% [5][6] - Operating expenses increased by 12% to $107 million, primarily due to impairment charges and higher compensation costs [7][8] Loss and Adjusted Metrics - The net loss for Q3 2025 increased by 53% to $27 million compared to a net loss of $18 million in Q3 2024 [8] - Adjusted EBITDA was positive at $12 million, a decline of 9% from the previous year [5][8] - Adjusted net income was reported at $3.6 million, down from $6.9 million in Q3 2024 [8] Guidance and Future Outlook - The company reaffirmed its full-year 2025 guidance, projecting consolidated revenue between $720 million and $726 million, with a net loss expected between $108 million and $116 million [9][10] - NeoGenomics aims to leverage its oncology-centric test menu and strong customer focus to drive growth in clinical volumes, particularly in NGS testing [3][4]