Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $7.4 million, reflecting a 21% increase compared to Q3 2024. Adjusting for a $0.5 million write-down in 2024, core revenues increased by 12% year over year [6][7] - Non-GAAP gross margin for Q3 2025 was 46%, significantly higher than the 26% reported for Q3 2024 [7][11] - Non-GAAP operating expenses were $9.7 million in Q3 2025, a 40% reduction compared to $16.1 million in Q3 2024 [7][10] Business Line Data and Key Metrics Changes - A record 8,390 flow cells were sold in Q3 2025, reflecting a 7% increase compared to the same period last year [7] - Revenue contributions from consumables and software grew 15% year over year in Q3 2025, representing 72% of the total product mix [9] Market Data and Key Metrics Changes - In Q3 2025, there were 97 new publications demonstrating the value of optical genome mapping, a 10% growth over the same period the previous year [12] - The cumulative number of clinical research genomes published reached nearly 11,500, supporting the adoption of optical genome mapping [12] Company Strategy and Development Direction - The company is focusing on transforming pathology from analog to digital, with a strategy centered on routine users who have established sample flows [4][5] - Four strategic pillars include supporting the installed base, driving software utilization, building reimbursement support, and improving profitability and scalability [5] Management's Comments on Operating Environment and Future Outlook - The company reiterated its full-year 2025 revenue guidance of $26-30 million, expecting Q4 revenues to be in the range of $7.5-$7.9 million [17][18] - Management expressed confidence in the ongoing growth of utilization among routine users, aiming for an average of low 20s samples per week across all routine users [20] Other Important Information - The company completed a $10 million public offering of common stock, enhancing its balance sheet and extending its cash runway into Q3 2026 [8] - The establishment of a second category one CPT code for optical genome mapping is seen as a significant milestone for the community [16][17] Q&A Session Summary Question: What is the potential peak level of utilization for routine use customers? - Management indicated that labs are not sample-limited and that the average utilization is about four samples per week, with a target of reaching the low 20s on average across routine users [19][20] Question: What is the current install base in Japan and its market potential? - Currently, there is one system installed in Japan, with expectations for the market to evolve similarly to the U.S. market over time, particularly in genetic diseases and cell and gene therapy [21][22] Question: Will operating expenses remain stable going forward? - Management intends to keep operating expenses flat, with some areas identified for potential investment [23]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $6.7 million, a decrease of 13% compared to Q2 2024, but a 5% decrease when adjusted for discontinued services [11] - Non-GAAP gross margin for Q2 2025 was 52%, significantly higher than the 35% reported a year ago [12] - Non-GAAP operating expenses for Q2 2025 were $8.8 million, down 53% from $18.8 million in Q2 2024 [12][16] - Cash and cash equivalents at the end of the quarter were $27.4 million, with $11 million subject to restrictions [13] Business Line Data and Key Metrics Changes - The company sold 7,233 flow cells in Q2 2025, reflecting a 17% increase year-over-year [12] - Revenue from consumables and software combined grew 16% year-over-year in Q2 2025 [15] - The percentage of consumables and software revenue increased from 55% in 2024 to 73% in Q2 2025 [15] Market Data and Key Metrics Changes - The optical genome mapping (OGM) community surpassed 10,000 published clinical research genomes, marking a significant milestone [19] - The 2025 quarter had the highest number of publications in the history of optical genome mapping [19] Company Strategy and Development Direction - The company is focusing on digital pathology, particularly in cytogenetics and molecular pathology, with plans to expand into clinical and anatomic pathology [6] - The strategy includes supporting routine users, driving utilization of VIA software, building reimbursement support for OGM, and improving profitability [10] - The company aims to consolidate workflows in pathology through AI-driven software and optical genome mapping [7][8] Management's Comments on Operating Environment and Future Outlook - Management reiterated full-year revenue guidance of $26 to $30 million, with Q3 revenues expected to be in the range of $6.7 to $7.2 million [20] - The company raised expectations for new OGM installations in 2025 to 20-25 systems, up from the previous range of 15-20 [20] - Management expressed confidence in the ongoing strategy and the potential for significant business upside [51] Other Important Information - The company has made substantial progress in reducing operating expenses, cutting over $100 million in annual non-GAAP operating expenses since 2023 [16] - The release of new software updates is expected to enhance the usability of OGM workflows [18] Q&A Session Summary Question: How universal is the use of VIA software among OGM users? - Management indicated that VIA is installed in about a third of the OGM systems, with higher adoption among routine users, suggesting significant opportunities for expansion [24][25] Question: Are there efforts to market VIA to non-OGM users? - Management confirmed that a substantial amount of software is sold for non-OGM applications, and there is potential for cross-selling to convert these users into OGM customers [27][28] Question: What role does AI play in the VIA software? - AI enhances the analysis of variants by leveraging databases to improve accuracy and speed in reporting [29] Question: Can you clarify the return rate for new systems placed? - Management stated it is premature to discuss return rates, but they expect low returns due to the strategic shift in customer focus [36][37] Question: How does the new CPT code differ from the first one? - The new CPT code is for constitutional genetic disorders, which may lead to differences in pricing and facilitate reimbursement [40][41] Question: Is the instrument placement guidance conservative? - Management acknowledged that the guidance is conservative, considering potential delays in installations [45] Question: What is the expected time for new customers to reach maturity? - It typically takes a minimum of three months, with six to nine months being a healthy timeframe for labs to reach routine use [47][48]