NeoGenomics Q3 2025 Earnings Call - Record Clinical Growth and Radar ST MRD Cleared for Broad Clinical Launch

Jenny, Conference Operator: Good morning everyone and welcome to the NeoGenomics third quarter 2025 financial results call. At this time, all participants are in a listen only mode and the floor will be open for questions following the presentation. If anyone should require operator assistance during this conference, please press 0 on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Priya Vadraman, Senior Vice President of Finance at NeoGenomics. The floor is yours. Thank you Jenny and good morning everyone. Welcome to the NeoGenomics third quarter 2025 financial results call. With me today to discuss the results are Tony Zook, Chief Executive Officer, and Jeff Sherman, Chief Financial Officer. Additional members of the management team will be available for the Q and A portion of our call. This call is being simultaneously webcast for reference.

Concurrent with today’s call, we posted a short slide presentation in the Investor tab on our website at ir.neogenomics.com. During this call we will make forward looking statements regarding our future financial and business performance, business strategy, the timing and outcome of reimbursement decisions, and financial guidance. We caution you that the actual events or results could differ materially from those expressed or implied by the forward looking statements. These forward looking statements made during the call speak only as of the original date of this call and we undertake no obligation to update or revise any of these statements.

Please refer to the information disclosed on the Safe Harbor Statement slide in the deck posted on our website as well as the information under the heading Risk Factors in our most recent Forms 10-K, 10-Q, and 8-K that we filed with the SEC to identify important risks and other factors that may cause our actual results to differ materially from the forward looking statements. These documents can be found in the Investor section of our website or on the SEC’s website. During this call we will also refer to certain non-GAAP financial measures that involve adjustments to GAAP results. The non-GAAP financial measures presented should not be considered an alternative to the financial measures required by GAAP, should not be considered measures of liquidity, and are unlikely to be comparable to non-GAAP financial measures provided by other companies.

Any non-GAAP financial measures referenced on this call are reconciled to the most directly comparable GAAP financial measures in a table available in the press release we issued this morning and in the slide deck available in the Investors section of our website. I will now turn the call over to Tony.

Tony Zook, Chief Executive Officer, NeoGenomics: Thanks Priya. Good morning everyone. Thank you for joining us today. I’ll begin with a discussion of Q3 highlights and key business growth drivers before turning the call over to Jeff for a deep dive into the financials. We’ll then open the call for your questions. During the third quarter of 2025, we again delivered record clinical volumes and revenues while making meaningful progress advancing our NGS and MRD long term growth initiatives, including securing a favorable court ruling in our ongoing litigation with Natera that paves the way for a full clinical launch of our Radar ST MRD assay. I’ll cover these initiatives in more detail shortly.

Taking a step back for those who may be new to the story, having spent much of my first two quarters as CEO engaged in conversations with key stakeholders, I am as optimistic as ever about the significant opportunities that are in front of us as a leader in cancer testing. Importantly, we continue to differentiate ourselves in the community setting with both hospitals and oncologists where approximately 80% of all cancer care is delivered. We’ve built a geographically balanced lab network that allows us to be responsive to customer needs, including offering some of the fastest test turnaround times in the industry when faster, more accurate treatment decisions can have a material impact on patient outcomes.

Our recent acquisition of Pathline, a New York State approved lab based in New Jersey, gives us a meaningful presence in the Northeast, which is the number three cancer care market in the U.S. We believe the addition of Pathline allows us to offer significantly faster turnaround times, a larger and relevant New York State approved test menu, and an enhanced physician experience in the Northeast region where we have historically been underpenetrated. The integration continues to proceed according to the plan that we communicated when we announced the transaction in March, including the validation of critical turnaround time sensitive assays which was completed during the third quarter. We remain positive about the impact that the acquisition will have in accelerating our growth in the Northeast, and we’re on track to capture operational efficiencies and synergies that we anticipate will be accretive to profitability beginning in 2026.

Together with our world class commercial team, we have deep relationships with hospitals, cancer centers and oncologists across the country. We’re winning the customer experience by enabling precision oncology in the community setting where adoption of next-generation testing has historically lagged behind NCI-designated cancer centers. Our customers increasingly view us as the partner of choice for all of their testing needs as their patients advance along their cancer care journey. We offer one of the broadest menus in the industry with more than 500 tests focused solely on oncology. Our menu spans everything from diagnostics to next-generation sequencing for therapy selection to MRD for cancer recurrence and monitoring. This makes NeoGenomics an ideal partner for institutions and practices who are looking to consolidate send-out testing to simplify operational workflows and improve patient experience.

The therapy selection and MRD markets represent more than $40 billion of addressable market opportunity, both of which are growing rapidly and are relatively underpenetrated. Needless to say, the ongoing investments that we make in R&D as well as the potential BD partnerships are focused on these areas. This is particularly true of MRD where we think we can create significant value while introducing innovation to the cancer testing market where it’s needed in the community setting. We also remain committed to our next-gen MRD research program focused on generating IP that is entirely separate and distinct from our Radar portfolio. Given our broad menu and strong brand recognition in the community setting, coupled with a competitive MRD test, we believe we will capture market share over time as we add additional indications to this modality.

While Jeff will provide a detailed review of our financials in a moment, I’d like to hit a few highlights from our third quarter. Our clinical business continued to perform well, driven by volume and share gains in key segments. As expected, nonclinical revenue declined in the quarter due to lower revenue from pharma and biotech customers. Total revenue for Q3 was $188 million, representing double-digit growth of 12% year over year. Our clinical business continued its robust growth, generating revenue growth of 15% excluding the Pathline acquisition. The clinical performance was driven by effective execution of our commercial strategy: protect, expand, and acquire. In the third quarter, we again saw a sequential improvement in AUP, a record quarter for test volumes, and NGS revenue growth of 24%, well ahead of the low to mid-teens NGS market growth rate.

The five NGS products launched in 2023 contributed 24% of clinical revenue in the quarter. We continue to see demand for our non-NGS modalities as well, with all modalities growing above market, which resulted in record volumes up 10.4% versus prior year on a same-store basis. The non-clinical portion of our business accounted for less than 9% of our total revenue in the third quarter and was down from the prior year, consistent with our expectations. Turning now to our Radar ST MRD assay, in August, the District Court for the Middle District of North Carolina granted our motion for summary judgment that all of Natera’s asserted patent claims are invalid for claiming ineligible subject matter. The court dismissed Natera’s claims against NeoGenomics with prejudice and entered a declaratory judgment of invalidity of both of Natera’s asserted patents.

The ruling paves the way for us to broadly commercialize Radar ST, formerly Radar 1.1. We launched Radar ST for biopharma customers in Q3, and while some of these efforts could result in bookings in Q4 of 2025, the lead times necessary to obtain samples make it more likely that we’ll begin recognizing revenue from biopharma customers in 2026. We have received Moldex approval for Radar ST in subsets of head and neck and breast cancer. We’re preparing for a robust launch of this important assay in the clinical oncology setting in Q1 of 2026.

We estimate that MRD cancer surveillance and monitoring represents a $30 billion addressable market, growing at a 30% CAGR, and with the market penetration of less than 10%, we believe we are well positioned as the cancer testing partner of choice in the community setting to capitalize on this lucrative market and deliver a differentiated and integrated MRD solution to our oncology customers. In parallel with our Radar ST launch preparedness activities, we continue to focus our R&D investments in next-generation MRD, demonstrating our long-term commitment to the MRD space as well as complementary targeted partnerships that allow us to fill in MRD product gaps that we don’t currently address in an effort to deliver a unique industry-leading MRD portfolio to the market. Now turning to PanTracer LBx, our liquid biopsy genomic profiling test that delivers comprehensive, clinically actionable insights from a simple blood draw.

PanTracer LBx is a non-invasive blood-based test that analyzes circulating tumor DNA to identify key genomic alterations that inform treatment decisions in patients with advanced stage solid tumors. PanTracer LBx, together with our PanTracer Tissue Test, form a comprehensive portfolio capable of delivering a holistic genomic picture of the patient in support of therapy selection. With an average turnaround time of just seven days, PanTracer LBx empowers real-time decision making. Recall that last quarter we elected to delay the commercial launch of PanTracer LBx so that we could incorporate learnings from our Evaluation Assessment Program to improve the product profile in preparation for a full clinical launch. We allowed select physicians to use the assay on a limited basis ahead of commercial availability.

The EAP, which was very well subscribed, helped us further enhance the assay clinically and optimize the launch by testing and identifying the opportunities to streamline logistics, reporting, and customer support. With the benefit of valuable lessons we garnered from our EAP, we launched the product in late July, three months later than expected. Based on the interest we’re seeing, I believe the delay allowed us to introduce a better product which will further support the strong NGS volumes we are capturing this year and position us well for continued growth in 2026. We continue to work with Moldex on our PanTracer LBx submission and will provide additional updates as they become available.

As it pertains to our full year 2025 guidance, based on the strength in our clinical business and expected performance in our non-clinical business that I just reviewed, we have revised guidance for consolidated revenue, adjusted EBITDA, and net loss that we provided last quarter. I’m incredibly optimistic about our future, particularly as we continue to innovate in the large and rapidly growing NGS and MRD markets and further leverage our leading presence in the community setting where as much as 80% of cancer care is delivered to patients. With that, I’ll hand it over to Jeff to further discuss our results from the quarter.

Jeff Sherman, Chief Financial Officer, NeoGenomics: Thanks Tony and good morning. Third quarter total revenue grew sequentially by 4% from Q2 and increased by 12% over prior year to $188 million. Total clinical revenue continued with strong double digit growth and increased by 18% from prior year. This strong clinical growth was partially offset by non-clinical revenue declining by 27% versus the prior year, driven by weakness in the pharma revenue Tony spoke about. Adjusted gross profit improved by $5.2 million or 7% over prior year. Adjusted EBITDA was $12.2 million, the ninth consecutive quarter of positive earnings. Clinical volumes and revenues continued with robust growth in the quarter. Total test volumes increased by 15% in the third quarter with AUP growth of 3%. Same store revenue without contribution from Pathline was $167 million, representing growth of 15% driven by a 10% increase in test volumes and a 4% increase in AUP.

We are continuing to see strength across our portfolio with above market growth rates across the modalities we offer. NGS revenues grew by 24% over prior year in the quarter and accounted for 33% of total clinical revenue year to date. NGS revenues grew by 22% over prior year. Average revenue per clinical test increased sequentially from Q2 by $15 or 3% and was up by 3% from prior year excluding Pathline. AUP increased by $17 or 4% from Q2 and was also up 4% over prior year. A larger percentage of higher value tests including NGS as well as recent managed care pricing increases are helping to drive higher AUP. Total operating expenses in the quarter were $107 million, an increase of $11 million or 12%.

We recorded an additional $7 million in impairment charges related to the planned sale of Tropello, with the balance of the cost increase due to higher compensation costs driven by the expansion of the commercial sales team. Cash flow from operations was a positive $9 million in the quarter and we ended the quarter with total cash of $164 million, up slightly from Q2. Our balance sheet and expected cash flow will enable us to continue to invest in our business to drive organic growth, increase operating efficiencies, and fund future business development opportunities including licensing and partnerships. We continue to see traction from the investments we have made to expand and enhance our commercial organization.

With our strong test volume growth, the LIMS project remains on track, and we expect to deliver operating efficiencies in 2026 and 2027 through the consolidation of multiple LIMS systems and reduction in redundant operating costs, as well as streamlining our lab operations. We remain committed to driving long-term shareholder value through targeted investments in the business and improved operational execution. As Tony noted, we are reiterating our full-year guidance that we updated in the second quarter. We expect full-year consolidated revenue will be in the range of $720 to $726 million, representing growth of 9% to 10% over full-year 2024.

We anticipate adjusted EBITDA to be in a range of $41 to $44 million, representing growth of 3% to 10%, and we expect full-year net loss to be in a range of $116 to $108 million, representing an increase of 37% to 47% as compared to our full-year 2024 net loss of $79 million. We will release our 2026 guidance when we report our full 2025 full-year earnings in February. With that, I’ll turn the call back to Tony.

Tony Zook, Chief Executive Officer, NeoGenomics: Thanks, Jeff. To recap, during the third quarter we again delivered strong clinical volumes and revenue while advancing NGS and MRD initiatives that we believe will contribute to accelerating growth in 2026 and beyond. We believe our unwavering focus on delivering a superior customer experience in the community setting is resonating in the marketplace, and as we continue to expand our menu of tests, community oncologists and pathologists will continue to view us as a partner of choice for their cancer testing and send out consolidation needs. We remain committed to innovation and operational excellence, which we believe will drive sustainable and profitable growth for our company and improve outcomes for patients. Thank you for your continued interest in NeoGenomics. Operator, this concludes our prepared remarks, so please open the line for questions.

Jenny, Conference Operator: Thank you very much. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your phone keypad now. A confirmation tone will indicate that your line is in the queue. You may press star 2 if you would like to remove your question from the queue. For any participants using speaker equipment, it might be necessary to pick up your handset before you press the keys. Please wait a moment while we poll for questions. Thank you very much. Your first question is coming from David Westenberg of Piper Sandler. David, your line is live.

Tony Zook, Chief Executive Officer, NeoGenomics: Thank you very much. Congrats on a strong quarter, particularly with that clinical revenue growth. How do you feel? I’m going to start with Jeff, how comfortable you feel with the guidance. Can you remind us what’s the latest on PanTracer LBx? Is there any chance you could see some revenue from that this year? I just want to confirm that that was removed from the guidance. If we did revenue from it this year, it would be upside to your estimates. Yeah.

Jeff Sherman, Chief Financial Officer, NeoGenomics: Thanks, Dave. We gave thoughtful guidance for the year in Q2. We believe we had a good third quarter and believe we’re in a good position to meet Q4 expectations. In terms of liquid, Tony was pretty clear last quarter that we did not need approval for liquid biopsy from Moldex to hit our guide. That is still the case as we look at our performance now in the fourth quarter.

Tony Zook, Chief Executive Officer, NeoGenomics: Gotcha. I know you’re not giving 2026, but you gave a lot of good commentary on MRD and you hinted that you will be a contributor to revenue in 2026. Can you give us a sense for when you expect certain reimbursements? I know there’s some competitive stuff you want to be a little bit careful with, but just in the sense of the magnitude and timing of some of those, what you’re going to get in MRD. Can you give us a sense on how much commercial muscle you’ll.

Warren, Unnamed Executive, NeoGenomics: be put behind these launches?

Tony Zook, Chief Executive Officer, NeoGenomics: Just as a reminder, I think with breast you have a lot of expansion indications. Do you think you could get expansion in that indication this year, next year? Thank you very much. Again, congrats. I’ll hop off after this.

Warren, Unnamed Executive, NeoGenomics: Thank you.

Tony Zook, Chief Executive Officer, NeoGenomics: Thanks, David. It’s Tony. I’ll take a crack at a couple of these, and then certainly I can look to Warren to add a little bit more color as well. First on 2026, as you appropriately say, we’ll talk 2026 in 2026, but I will give you a sense of what we see as some of the growth drivers that we anticipate for 2026, and then I will pull that back to your conversation around liquid biopsy and Radar ST. At the highest level, you should expect the growth drivers for 2026 to be in large part quite similar to what we had in 2025. We expect our ongoing strong clinical performance relative to volumes to continue, and that will certainly be a growth driver for us. We expect ongoing NGS growth rate.

As Jeff commented in his remarks, we had 24% growth in revenue at NGS, and that was with the hold ability of PanTracer LBx included within that mix. We have every expectation that NGS will continue to be a growth driver for us. As you rightfully mentioned, PanTracer LBx combined with the PanTracer family, we believe, will be drivers moving forward. We can’t really speculate as to the timing of LBx reimbursement, but nonetheless, we see early, early signs of a positive uptake for the product, and we believe once reimbursement is secured, that will be a growth driver for us. We’ll see revenue build through the course of the year, with obviously more of that becoming evident in the second half.

The sales force that you mentioned, we are beginning to see the full benefit of now, the sales force expansion efforts that we have put in, and we expect that to be a continued driver for us. On the Radar ST front, we’ve already launched Radar ST in the pharma sector. We’re having good early conversations with that. As you might expect, the lead times on that book of business take considerably longer, so we would expect kind of a slow revenue build in 2026 and most of that revenue becoming evident in the back half of 2026. With Moldex approval, with the current indications, we expect a full launch of Radar ST in the clinical setting in Q1. That will also be a build for us through the course of the year.

Of course, there’s still Pathline and our RCM initiatives, so we still see a healthy list of growth drivers for us in 2026. Relative to sales force, I think Warren and Beth Eastland, their teams have done a phenomenal job at onboarding the existing representatives that we have. You know, I will tell you that we still believe that that is the right size for the indication mix that we have. As we continue to invest and we will invest in new indication Flow, you should probably believe that we will be looking at options to upsize that sales force as it is under index, especially in the oncology side of our sales force. We don’t anticipate that coming on too early.

That’ll be again, a build, probably more in the latter half, indicative of the new indications that we will be submitt and when they might come online, which would be more than likely second half. That’s kind of a high level of the drivers. Again, we’ll get more detail on these things in 2026 when we talk around February’s time. Okay, Dave? Yeah, thank you. That was a ton of detail. So thanks.

Jenny, Conference Operator: Thank you very much. Our next question is coming from Andrew Brackman of William Blair. Andrew, your line is live.

Tony Zook, Chief Executive Officer, NeoGenomics: Great. Hi guys. Good morning. Thanks for taking the question. Maybe on the NGS side of things, the growth rates here imply that you’re obviously taking share, growing market, or some combination of both. Can you maybe just sort of talk to us about where you’re seeing the most wins on the customer side of things, what types of accounts where you’re winning, and then also on the product side, what products are you leading with, where you’re able to sort of capture share and begin to capture some share there?

Jeff Sherman, Chief Financial Officer, NeoGenomics: Thanks.

Warren, Unnamed Executive, NeoGenomics: Yeah, thanks. Thanks, Andrew. Certainly, as you said, the growth rate of 24% implies a pretty meaningful share capture. Most of that business in quarter three was coming out of the community setting and largely from the oncology practice. Certainly, we still see opportunity within the community hospital setting, but as we onboard new practices, bring on new oncology ordering positions, and we see repeat order rates, we’re seeing a compounding effect, so largely coming from that community oncology setting. In terms of focus areas, certainly the PanTracer family has been a core focus for us. We launched liquid, as we mentioned, but at the same time we’ve introduced the PanTracer family, which includes PanTracer tissue, PanTracer tissue plus HRD, and obviously PanTracer liquid, which is our solution for therapy selection on the solid tumor side. We’re seeing really strong growth within that category as we make that a priority.

We’re certainly not losing sight of what got us here, which is our heme NGS portfolio, and that continues to grow very effectively as well. There’s a subset of five to seven products which are ultimately our key focus area from a therapy selection perspective, and all of them are seeing attractive.

Jeff Sherman, Chief Financial Officer, NeoGenomics: From a protect, expand, acquire perspective, from an acquire or new oncologist coming on board, we’re seeing a good lift from recently brought on oncologists in 2025. We track that closely, and we’re seeing reorder rates and higher penetration amongst that. We are seeing success in the acquire aspect of our strategy as well, I guess.

Tony Zook, Chief Executive Officer, NeoGenomics: Andrew, the last cat off point, I think Warren was just hitting on it towards the end. You know, NGS just strategic for us is, is extremely important that we continue that penetration into the therapy selection markets. You know, as Warren highlighted, the top five products now represent almost a quarter of our clinical revenue. NGS in totality is almost a third of our total clinical revenue. It aids us in AUP and a whole lot of other areas. It is going to be a continued point of emphasis for us moving forward. Thanks for the call.

Warren, Unnamed Executive, NeoGenomics: Great, thanks.

Tony Zook, Chief Executive Officer, NeoGenomics: If I could follow up just as one other question here on the LIMS rollout. I also think that integrating with EPIC in some accounts, obviously those are multi-year processes to roll out here, but anything you can maybe share with respect to benefits that we should start to see from these initiatives into 2026? Just in practical terms, what does this do for your business? Thanks. Yeah. While Warren and I will tag team on that one, Andrew, I would say first from an organizational perspective, you’re going to hear me speak quite a bit about ongoing need for simplification across the organization. I think that the model that we have today with multiple locations and unfortunately multiple LIMS systems works against us in that regard.

Moving towards a common LIMS program aids certainly within the organization, not just the lab team, where they’ll be able to see where a particular test is at any given time along the continuum. Organizationally, as you say, we can retire 8 LIMS systems that were in place prior to that, so there’s certainly a cost benefit. Then across other parts of the organization as well, because in order to offset the complication of multiple LIMS systems, we do a lot of things in other organizations that require a bit of a heavy lift that I think the LIMS system provides some efficiencies for as well. I think the early view is we should start to see some of these efficiencies coming through in the latter part of 2026 and the later, the better benefit being more evident in 2027 and 2028 and beyond.

It is just one step of many relative to simplification that we think could help us from a contribution perspective. Now Warren can give a little added color.

Warren, Unnamed Executive, NeoGenomics: Yes. Let me start with the EPIC, Andrew. First of all, I will start by saying we have over 340 interfaces in place already today, some of them with EPIC already. We’re establishing the EPIC Aura solution and that will go live towards the end of this year. We’ll see fairly rapid customer onboarding in early parts of 2026 and beyond. Excited about the acceleration nature that the EPIC Aura solution will bring to us. We’ve seen very strong sort of revenue growth and ongoing adoption when we put interfaces in place in general. We believe it’ll be the same with EPIC Aura. Certainly that’s a key strategy for us moving forward and enables growth and stickiness. Coming back to the LIMS side of things, as Tony said, I think a strategy to simplify.

We have sort of five key priorities, operations for simplification and margin expansion, one of which is being LIMS. I’ll touch on two of the benefits that I anticipate or see valuing in 2026. The first one is our ability to be able to proactively equip physicians, ordering positions and practices to understand sort of test status and more particularly the ability to do add-ons, et cetera, that they can do themselves versus having to come through customer service. Ultimately creating a more seamless experience for the ordering position or the practice, so to speak. That’s one area. The second one is the LIMS system you’re putting in place has sort of AI integrated into it and it allowed us to identify areas of, I’m going to call it leakage, you know, productivity leakage within our workflows.

We can identify this and obviously look to streamline the workflow to iron out those areas that sort of lack or have opportunity for productivity. It really is going to deliver insights to our workflow that we don’t have today that allow for further productivity.

Tony Zook, Chief Executive Officer, NeoGenomics: Great. That’s all good color. Thank you.

Jenny, Conference Operator: Thank you very much. Our next question is coming from Mason Carrico of Stephens. Mason, your line is live.

Tony Zook, Chief Executive Officer, NeoGenomics: Hey guys, thanks for taking the questions here on your NGS business. You called out share gains. You guys often quote NGS revenue growth, but I was curious if you’d be willing to give us a bit of insight into how NGS volume growth has trended just to give us a better view on gains. When we look at NGS revenue growth, 24% this quarter, I think 23% last quarter, how much has been driven by volume versus ASP, because I assume you guys are benefiting from ASP to some degree as coverage expands for those assays?

Jeff Sherman, Chief Financial Officer, NeoGenomics: Yeah, we haven’t disclosed the volume per se, but I would say it is more volume driven. There is some AUP growth, but it’s more volume driven than AUP growth. I think as we’re continuing to see penetration there and getting the ability to access our strong commercial channel, that’s where we’re seeing that volume uptick. I think bringing on the liquid, we’re actually seeing good uptick between the two of them as well, liquid and solid. I think we’re well positioned to continue to get those gains.

Tony Zook, Chief Executive Officer, NeoGenomics: Got it.

Warren, Unnamed Executive, NeoGenomics: Thanks.

Tony Zook, Chief Executive Officer, NeoGenomics: That’s helpful. When you think about revitalizing growth within your pharma business, could you just talk about how much of that is in your control versus how much relies on a snapback in spend across the broader sector? What do you view as kind of the key internal initiatives that you’ll need to execute on to re-accelerate growth in that segment? Yeah, Mason, I’ll take a crack, and then Warren could add additional details. I would say that for us, a big part of the opportunity lies in the portfolio. Bringing that portfolio forward, we have now the opportunity to represent products like PanTracer LBx. We have Radar ST now available to us within the pharma segment, and of course the liquid biopsy and PanTracer family. It affords us opportunities to have conversations and get a little bit more relevant in those conversations as well.

As I said to you before, I think a lot of those conversations are generating interest, but because of the lag times, I would still expect that some of the challenges that we see in our business in 2025 will continue into 2026, and we see a return to growth opportunity in 2027. Anything that would lead that to happen a bit faster would represent upside. As far as things in our control, there are things still in our control. That’s a heavy focus on execution excellence. We have onboarded a leadership team that is taking the bull by the horns. I think that part is very much in our control to drive the right conversations with the right customers. That is something that we acknowledged we had to improve upon, and I’m pleased to see that action is taking root across the organization.

With that, I’ll turn to Warren to add any other color, I think.

Warren, Unnamed Executive, NeoGenomics: Tony’s hit most of the high points. I’d say that certainly we’re preparing our execution so that we can offer an attractive value proposition to our target customers in the biopharma space. Certainly the inclusion of Radar has made us a significantly more attractive partner, which is enabling access for us to focus on both Radar but other sort of high value products, NGS, PanTracer LBx, etc. We’re certainly gearing our commercial organization around that focus, coupled with underpinning that with a sound customer experience, which is again a key buying driver for pharma sponsors. From a market perspective, certainly we’re going to continue to work to execute effectively as the market rebounds. We feel that there’ll be a compounding effect to the recovery of the business.

Jeff Sherman, Chief Financial Officer, NeoGenomics: This is a long sales cycle product area, and just to reiterate what Tony said last quarter, we expect, you know, pharma to be soft in Q4 as well as throughout 2026 as well. Got it.

Tony Zook, Chief Executive Officer, NeoGenomics: That makes sense. Thank you. Thanks, Macy.

Jenny, Conference Operator: Thank you very much. Our next question is coming from Dan Brennan of TD Cowen. Dan, your line is live.

Tony Zook, Chief Executive Officer, NeoGenomics: Hey, this is Tom for Dan. Thanks for taking the question here and congrats on the quarter. Just a question now on what is driving the acceleration in your base clinical business? It looks like it’s ticked up on a volumes basis this year versus prior years.

Jeff Sherman, Chief Financial Officer, NeoGenomics: The base clinical, the non-NGS business.

Tony Zook, Chief Executive Officer, NeoGenomics: What is driving that? Is that better bundling? Is that better turnaround times to a point? This is a business that everyone thought would be kind of cannibalized quite aggressively by NGS. I just want to understand how you’re driving that growth and how sustainable that acceleration kind of could be going forward. Thank you, Tom.

Warren, Unnamed Executive, NeoGenomics: Thanks. Thanks for the question. I think a couple of facets I’ll highlight. First of all, I would again come back to effective execution of our Protect, Expand, Acquire strategy. We continue to do a great job of protecting existing customers, and that’s sort of driven through just continuous focus on customer experience, whether that be from an operational perspective or just end to end as we look at it from requisition to results. Protect has really been a key factor, but we’re seeing accelerated wins on the expand side and the acquire side of things. I attribute that to two aspects. First and foremost, it’s new products that we bring into the portfolio, and we speak significantly, obviously, about the NGS side of things. Don’t forget about products like Claudin 18 and CMAT, which have been critical sort of pillars to actually round out our offering.

New products is certainly a key driver. Lastly, and very importantly, we communicated in Q4 of last year around the salesforce expansion and sort of said that this was going to be a six to nine month ramp to productivity. What you’re seeing right now is just follow through on exactly what we had said. We started to see increased productivity from those added sales resources, which are focused on the Protect, Expand, Acquire strategy and the new products we’re bringing to market. These things are operating in concert with one another, delivering the type of numbers that you reflected on.

Jeff Sherman, Chief Financial Officer, NeoGenomics: The only thing I would add to that is, even with record volumes, our operational execution and turnaround times continue to improve. That remains a vital component of our go to market strategy for retaining, growing, and expanding business. Great.

Tony Zook, Chief Executive Officer, NeoGenomics: Just one follow up on the launch of PanTracer LBx into next year and trying to scope out the potential for acceleration there. Should we be treating this as.

Jeff Sherman, Chief Financial Officer, NeoGenomics: Kind of 2023 all over again.

Tony Zook, Chief Executive Officer, NeoGenomics: Is the sales force now appreciably larger? Should we expect a larger acceleration? Given this is quite a hot area in general in oncology diagnostics, is there anything to help frame your expectations versus your kind of solid tissue launch in 2023 would be really helpful, thank you.

Warren, Unnamed Executive, NeoGenomics: Yeah, certainly as an organization we’ve matured since 2023. We’ve also expanded commercially as well. I think using 2023 as sort of a proxy would probably be a good starting point at this junction and probably layering on some additional factors like the Salesforce expansion would be a way to look at it.

Jeff Sherman, Chief Financial Officer, NeoGenomics: The majority of the Salesforce expansion was in the community segment, so that really positions us well to have the coverage we need for these new products.

Tony Zook, Chief Executive Officer, NeoGenomics: Okay, great. Thank you very much.

Jenny, Conference Operator: Thank you very much. Our next question is coming from Subu Nambi of Guggenheim Securities. Subu, your line is live.

Tony Zook, Chief Executive Officer, NeoGenomics: Hi guys, this is Thomas on for Subu. Thanks for taking our questions. Maybe I can ask both up front. First, are you still expecting stronger performance in the data business on the non-clinical side in the fourth quarter, and maybe just some color on why that should show strength based on what you’ve seen so far this year, what you’re seeing in the funnel to be comfortable with that. Second, can you just talk.

Warren, Unnamed Executive, NeoGenomics: Specifically for clinicians in the community setting.

Tony Zook, Chief Executive Officer, NeoGenomics: how Radar ST MRD assay has been received following the favorable summary judgment, what’s the chatter like there? Thank you.

Jeff Sherman, Chief Financial Officer, NeoGenomics: Yeah, on the data business, Q4 is historically the strongest quarter in that business. Business actually did grow in the third quarter, double-digit growth in the third quarter. We are expecting that business to see sequential growth over Q3 in the fourth quarter.

Warren, Unnamed Executive, NeoGenomics: Yep. Again, I just want to reiterate that we have not clinically launched Radar ST MRD assay as yet in the clinical setting. However, obviously the news with regards to the outcome of the summary judgment has certainly circulated through the community oncology setting, and I’d say the vibe is increasingly positive about the fact that we can re-enter the market. It comes back to the fact that we believe we have one of the most sensitive assays in the market, but also the portfolio effect, the ability to consolidate all of your needs within the community oncology setting within a single vendor. This helps round out that sort of value proposition for us.

Tony Zook, Chief Executive Officer, NeoGenomics: Yeah, I think that’s an important point. Just to reinforce, you know, we’ve always said this preferred partner of choice in the community setting, and that speaks to a balance of breadth of portfolio and innovation as well. We look at that breadth of portfolio beyond just heme, solid tumor, and MRD. We look at breadth of portfolio at MRD as well. For us to be in a position to be able to offer flow MRD, to have an outstanding NGS partner, MRD with Adaptive and now Radar ST. Don’t forget we’re going to continue to invest in our next-gen MRD program. As a suite of products, it also fits well into our overall strategy. I believe as that becomes more evident to our customers, the chatter will increase. Thanks for the question. Great, thank you guys very much.

Jenny, Conference Operator: Thank you. Our next question is coming from Yuku Oku of Morgan Stanley. Yuku, your line is live. Hello, thank you for taking my question. Given that Invigor 011 trial demonstrated how incorporating MRD testing can enhance probability of trial success, are you seeing an uptick in interest from pharma partners in integrating MRD into their clinical trial designs, and then separate follow up, could you provide an update on adaptive partnership and what are some of the key learnings and feedback from the pilot so far?

Warren, Unnamed Executive, NeoGenomics: Yeah, so coming back to sort of pharma interest, I would say that pharma interest has been robust ever since we launched the product back in August of this year. Certainly our first targets were prior users of the assay because of their familiarity, et cetera, but we’ve rapidly expanded that. We were recently at the ESMO conference, which was in Germany late last month or early this month, and again, very, very strong interest with regards to the assay port for multiple purposes but also from an endpoint perspective as you articulated. We’re encouraged by the early signs in terms of the pharma sponsor interest with regards to MRD.

Tony Zook, Chief Executive Officer, NeoGenomics: Sorry, what was your second?

Warren, Unnamed Executive, NeoGenomics: Adaptive, yeah. We continue to progress very favorably with Adaptive. We started a pilot initiative in the third quarter and this was just to sort of understand the operational workflows, et cetera, because both organizations are very focused on delivering a sound customer experience. We continue to expand that pilot into three distinct phases where we’re rolling out the first phase of the three-phase initiative now holistically in the fourth quarter, and phase two and phase three will happen quickly in 2026.

Jenny, Conference Operator: Great, thank you. Thank you very much. Our next question is coming from Tycho Peterson of Jefferies. Tycho, your line is live. Hey team, this is Lauren on for Tycho. Thanks for taking our question. Just going back a little bit to the rebounding growth in the pharma and non clinical setting. Likely more of a 2027 event for 2026. How are you seeing Radar adoption evolving in pharma partnerships versus the clinical setting? In terms of kind of the phrasing of partner of choice you’ve been using for community oncologists, what are some of the specific investments or initiatives that are kind of reinforcing that position? Thanks.

Warren, Unnamed Executive, NeoGenomics: I think we certainly are expecting to see revenue on the MRD side of things in the pharma space for 2026, and certainly that would go a long way to address some of the other headwinds we’ve been experiencing. We’ll obviously look to quantify that as part of the guide when we speak about that next year. Certainly expecting pharma revenue for MRD. In terms of your second question, it’s multiple factors. I think first and foremost it is around the portfolio and making sure that as we look to be the proximity of choice to the community setting, it’s having the most relevant portfolio, which a big focus of ours has been on ensuring we’ve got the right therapy selection portfolio.

We believe that the PanTracer family brings that to the table now, along with key add-on testing like CMET and claudin18 that rounds out our larger portfolio across diagnosis and therapy selection. Now we have MRD as well. As Tony mentioned, it’s not just Radar ST, it’s the partnership with Adaptive, it’s the fact we have flow MRD on the heme side as well. In addition to that, it’s the work that we’re doing from a bi-directional interface perspective. It’s the work we’re doing around client customer experience because those are the two areas which are critical buying drivers. We hear over and over again that these community oncology practices are looking to remove friction from their practices so they can focus on top of license type activities. They look for vendors that offer this frictionless experience.

We believe the combination of consolidating your oncology send out requirements to a single lab along with best-in-class customer experience makes for a very, very attractive value proposition.

Jeff Sherman, Chief Financial Officer, NeoGenomics: Yeah, I just think overall, if you go back historically, when.

Tony Zook, Chief Executive Officer, NeoGenomics: We were on the market for a.

Jeff Sherman, Chief Financial Officer, NeoGenomics: few years with Radar Pharma, you know, we hit $6 million, $7 million a year after a couple years. There will be a ramp in for pharma in Radar as we’re kind of reengaging in the market.

Jenny, Conference Operator: Perfect. Thank you very much. Our next question is coming from Puneet Souda from SVB Leerink. Puneet, your line is live.

Tony Zook, Chief Executive Officer, NeoGenomics: Yeah.

Jeff Sherman, Chief Financial Officer, NeoGenomics: Hi guys. How are you thinking about the AUP as you bring this MRD on board?

Tony Zook, Chief Executive Officer, NeoGenomics: Maybe just elaborate to us as you think about looking at the competitive landscape, CGP has continued.

Jeff Sherman, Chief Financial Officer, NeoGenomics: To grow for a number of companies.

Tony Zook, Chief Executive Officer, NeoGenomics: Are you seeing anything different competitively in the NGS side of the business?

Jeff Sherman, Chief Financial Officer, NeoGenomics: I’ll start with AUP and then let Warren talk about the competitive dynamics, Puneet. I think obviously getting Moldex approval was a good first step for Radar. We’re also working to get commercial approval as well. As is the challenge with some larger panel tests, that will take time to get commercial coverage for Radar as well. Others being in the space and having more overall acceptance I think is a positive. I think it will be a driver for AUP over time, but probably more starting in the back half of next year and into 2027.

Warren, Unnamed Executive, NeoGenomics: I think in terms of are we seeing anything different in sort of therapy selection in GSPNI? We certainly, the competitors that we’ve continuously come up against in the community oncology setting remain very present. It’s certainly a hotly contested environment. We feel that certainly the round out of our portfolio, which was sort of requested by many of these oncologists in the community, has been very well received. It’s not just volume increases that we’ve seen across the liquid biopsy test that we launched. We’re seeing across the category and actually for interesting information, some of our, what we call NeoTypes, which are cancer specific panels for breast or for lung or brain, we’re seeing actually renewed growth in those panels as well. It comes back to this comprehensive offering that we have both across solid tumor and heme that creates the differentiation for us in the marketplace.

Jeff Sherman, Chief Financial Officer, NeoGenomics: Got it. On the COGS side, can you talk a bit about the levers you have to reduce the COGS as you bring on these new assays?

Tony Zook, Chief Executive Officer, NeoGenomics: You know, there’s obviously a push and pull there. Just wondering, how are you thinking about the overall cost per test? Yeah, thanks, Puneet.

Jeff Sherman, Chief Financial Officer, NeoGenomics: I think, even in Q3, we’ve got some LBX volume and limited reimbursement. We’re actually covering the COGS in Q3 for LBX. As our volume increases from some of these larger panel tests, we will see operating cost efficiency just by the number of tests. We can do it at one time.

Tony Zook, Chief Executive Officer, NeoGenomics: I think a few of the other.

Jeff Sherman, Chief Financial Officer, NeoGenomics: Things we’ve talked about today will also be drivers of COGS, the LIMS consolidation, you know, consolidating multiple LIMS systems, you know, streamlining the lab. We have a dedicated, you know, process on lab automation. The ability to automate processes and use technology and newer lab equipment to drive efficiencies is well underway. We see good uptick there, being able to digitize more lab processes to improve the customer experience as well. Digital pathology, we see efficiencies and revenue opportunities with digital pathology. Finally, look, we still have a fair amount of capacity in our lab footprint. We’ve got the lab in Fort Myers, we’ve got new lab, we expanded in North Carolina, RTP, we have new lab in the Northeast. Just incremental volume coming in, we can get operating efficiencies on a relatively large fixed cost footprint. We have a multi-year opportunity to drive margins there.

Warren, Unnamed Executive, NeoGenomics: I’d add maybe two points to substantiate what Jeff was saying about larger volume and the leverage there. We always focus on turnaround time because that’s a differentiator for us. As a result, we hadn’t moved to largest flow panels and we hadn’t moved to the NovaSeqX. Those are both initiatives that we have in focus for us in 2026. They are two real tangible examples in terms of how incremental volume can help to drive down costs.

Jeff Sherman, Chief Financial Officer, NeoGenomics: Yeah, the last piece I would say is, you know, from a cost per test perspective, Pathline has a higher overall cost per test than legacy NeoGenomics because of that lack of incremental volume. The ability to streamline Pathline and actually pump incremental volume in there will bring down that cost per test as well.

Tony Zook, Chief Executive Officer, NeoGenomics: Early interest. Got it. Okay, thank you.

Jenny, Conference Operator: Thank you very much. Our next question is coming from Mark Massaro of BTIG. Mark, your line is live. This is Vivian on for Mark. Thanks for the time. I’ll just keep it to one on Radar. Could you just remind us what indications you’re pursuing here in addition to head and neck and breast cancer, and any cadence of reimbursement that you’re expecting there, any further milestones we should be looking for out to 2026? Thanks.

Tony Zook, Chief Executive Officer, NeoGenomics: As you mentioned, the two indications that we have secured have been subsets of head and neck, which is HPV negative adjuvant surveillance. In breast, it’s HR positive and HER2 negative surveillance five years out. Those are the two that we go to market with relative to new indication areas. I will tell you we have every intention, we have been doing ongoing work in R&D, and we will be making additional submissions for indications expansion for Radar ST. I won’t go into the specifics about those for Radar, for relatively obvious reasons, but we plan to be moving forward with those. We are continuing our next-gen MRD program as well, and we see the necessity of having both Radar ST and next-gen because having an ultra-sensitive option for low-shedding cancers is going to be an important aspect as well.

We see the indication flow a little bit different for our next-gen program than we would with Radar ST. We’re trying to avoid redundancy and overlap in spend relative to those indications. You should expect us to add indication submissions in the short term, which we believe could be manifest in the second half of 2026.

Jenny, Conference Operator: Perfect. Thanks for the color. Thank you very much. Our next question is coming from Mike Matson of Needham. Mike, your line is live.

Tony Zook, Chief Executive Officer, NeoGenomics: Hi everyone, this is Joseph on for Mike. I guess just two from me, just looking at pricing AUP. Obviously you guys have seen many consecutive quarters of improvement there. While small Pathline is a headwind there, I did hear what you guys said concerning just volume coming through at a higher rate will improve COGS. I know NGS, bringing NGS into there is the plan. What’s the plan? I was just kind of curious if you could remind us on the timeline for that. Is that a 2026 plan or is that already in the works to bring NGS or more NGS into the Pathline lab? Yeah.

Jeff Sherman, Chief Financial Officer, NeoGenomics: Just to be clear on the Pathline lab, the NGS is going to be done at our other sites. The fast turnaround tests enable us to capture more NG work. The timelines for doing that NGS work enable us to send those out to our other labs in Florida and California and still meet our timeframe. We’re actually going to gain operating leverage by pumping more volume into our existing sites as a pull through through the Pathline site.

Tony Zook, Chief Executive Officer, NeoGenomics: Yeah, and just as a follow up on that Pathline. As we said, the strategy there was always to give us opportunity to deal with the under penetration in the Northeast. We have made really good progress there. All the legal integration and the assay validations have been completed. Now we can offer, you know, a more complete complement of the NeoGenomics portfolio and take advantage of the Pathline site for the more rapid turnaround testing needs that are up there. As Jeff said, taking advantage of our footprint and the efficiencies we gain in our other lab sites, we’re confident and I know our selling team is excited by the prospects that they are generating. We see a healthy new customer list beginning to emerge and that’s why we are of the belief that it will be a growth driver for us in 2026 and beyond. Okay. Okay, great.

That’s very clear. I guess maybe just one quick one. NGS growth specifically. I know the target there is 25% or more, you know, very near that target, obviously, you know, above market growth right now. We have seen acceleration there in NGS growth the last two quarters. I’m just curious how you’re thinking of the next quarter for Q2 2025 and 2026. Is it, you know, back on that target of over 25%, is the target more just above 20% at this point? I’m just kind of curious your guys’ thoughts there.

Jeff Sherman, Chief Financial Officer, NeoGenomics: Yeah, so we gave a guide for the back half of the year. We didn’t have a Q4 specific guide. You know, we expect to see continued good growth in NGS, but we haven’t broken out the specifics on that.

Tony Zook, Chief Executive Officer, NeoGenomics: Okay, fair enough.

Warren, Unnamed Executive, NeoGenomics: Yeah.

Tony Zook, Chief Executive Officer, NeoGenomics: Congrats on the great quarter. Thank you. Thank you very much.

Jenny, Conference Operator: Thank you very much. That does conclude our question and answer session. I would now like to turn the floor back to Tony Zook for closing comments.

Tony Zook, Chief Executive Officer, NeoGenomics: I’d just like to thank everybody for joining us on the call. As we said, it was a good quarter. We have focused on operational excellence, and I’m pleased to say that the teams in both our commercial organization and our lab have performed extremely well. We’re very proud of all the work that people in NeoGenomics are doing to advance cancer care for all the patients in the community. Once again, thank you for your time everyone, and we’ll look forward to some one on one follow ups.

Jenny, Conference Operator: Thank you very much. This does conclude today’s conference. You may disconnect your phone lines at this time and have a wonderful day. We thank you for your participation.