MDxHealth SA

2025 earnings conference call. At this time, all participants are in the listen-only mode. Following the presentation this morning, there will be a question-and-answer session. To ask a question, you may press star and then 1 on your touch-tone phone. To withdraw your question, you may press star and 2. As a reminder, this call is being recorded. I would now like to hand over the conference to John Francis from LifeSci Advisors. Thank you and over to you.

Before we begin, I would like to remind everyone that the company will make forward-looking statements during today's call. Whether in prepared remarks or during the Q&A session, these forward-looking statements are subject to inherent risks and uncertainties. These risks and uncertainties are detailed in the risk factor section of the company's filings with the Securities and Exchange Commission, specifically in the company's annual report on Form 20F. I'll now turn the call over to Michael McGarrity, Chief Executive Officer.

Thanks, John. And thank you all for joining us for our third quarter 2025 Earnings Conference Call for MDX Health. With me today is Scott McMahon, Interim Chief Financial Officer. We've been very consistent in our message and mission that MDX Health is driven by three core operating principles, focus, execution, and growth. We are excited to report results that are consistent with that internal mandate, From a focus perspective, we continue to identify high-value differentiated assets as demonstrated by our recent acquisition of the exosome diagnostics business, further positioning MDX Health with the most comprehensive industry-leading menu of precision diagnostics in urology. From an initial elevated PSA to and through each point along the diagnostic pathway of prostate cancer, MDX Health can deliver clinically actionable diagnostics for clinicians and patients. With respect to execution, every operating group within our company has supported our growth with an uncommon discipline, as evidenced by the following. Our sales organization has delivered a compound annual growth rate of 45% over the last four years. while significantly reducing our sales and marketing expenses as a percentage of revenue. This reflects our team's steadfast commitment to building trust and accountability with our urology customers, allowing us to confidently invest in additional growth opportunities. Our laboratory operations group has also kept pace with the increasing scale of our business while improving our gross margin profile through optimal efficiency and productivity. From a customer experience perspective, our entire team knows that we are only as good as our customers think we are. The emphasis we place on the customer experience has in fact become foundational to our culture. There is nothing we do not metric and manage to help improve upon the customer experience. And through these efforts, I believe we are now resetting the industry gold standard for turnaround time from sample to result, which is clearly one of the most important patient and clinician-driven metrics. And finally, as it relates to growth, we are confident that MDX Health will continue to deliver market-leading growth driven by focus and execution. coupled with a very sound and disciplined new product and acquisition strategy. As we go forward, we also expect to achieve sustained top-line growth while advancing operating profitability, following our first adjusted EBITDA profitable quarter in Q2, delivered again in Q3, as well as achieving positive adjusted EBITDA on a year-to-date basis. I would now like to highlight the results from our third quarter that we believe reflect our focus execution and growth. Q3 revenue of $27.4 million represents 18% growth over 2024. Even with our decision to forego focus on our previously planned germline offering, an adjusted EBITDA came in at $1 million. Our total OpEx is essentially flat for Q3 in year-to-date over 2024, up a mere 1 percent on 20 percent year-to-date top-line growth, while absorbing material acquisition-related expenses. We successfully closed on the transformative ExoDx acquisition, and at the end of Q3, we began the integration. from an operational and Salesforce perspective. And this process will be our highest priority throughout Q4. We've strengthened our laboratory operation with now three labs, and we'll focus on installing and advancing our quality and operating discipline goals with the team from ExoDx in the Massachusetts facility. Finally, our total use of cash for Q3 was less than a million dollars. We are confident in completing the integration of the ExoDx acquisition in this fourth quarter. The integration will be focused on the following key operational areas of the business. For the commercial operation, our diligence of the ExoDx opportunity led us to execute a strategic expansion of our sales organization. From 50 direct sales reps among six geographic regions to now 60 direct sales reps across eight regions. This expansion was informed by a detailed review of the customer base and ordering patterns by urologists and large urology groups, and was specifically designed to optimize cross-selling opportunities of our combined customer base. As I noticed, when we announced the acquisition, This strategy mirrors the growth thesis of our GPS acquisition, leveraging the potential to drive growth through our now expanded menu and customer base. We are conducting cross-training of sales reps and integrating into the newly formed regions. Through this acquisition, we are confident that our best-in-class sales team will continue to execute on our growth strategy demonstrated by our track record of consistent and sustainable sales rep productivity, and fortified by the high-performing and high-quality sales reps we retain from ExoDX, slotting them opportunistically to further drive growth in customer engagement. Lastly, on the commercial customer front, We will be converting our select customers over to ExoDx throughout Q4 and would expect to discontinue select by year end. We are confident, as we have noted, that the ExoDx test provides optimal and clinically actionable results for patients and clinicians while providing additional ease of use. We will strive for seamless integration and provide an update at the beginning of the year on our progress and what we expect to be a successful transition. We are also focused on our laboratory operational integration with our expanded laboratories operations in California, Texas, and now Massachusetts. We will focus on efficiencies designed to advance our continuously improving gross margin as well as advancing our information systems to drive additional operational efficiency, all while maintaining our relentless focus on performance metrics that achieve operating excellence and improve customer experience. Finally, we are integrating our client service and revenue cycle management teams to best serve our patients, customers, and payers. as we strive for world-class service standards within the industry. Based on prioritizing the successful integration and customer engagement, as well as conversion of Select to EXO-DX, we have set aside our entry into the Germline market. While we had expected material revenue contribution from Germline in the second half of this year, we are maintaining our 2025 revenue guidance of $108 to $110 million. and we'll revisit and re-evaluate the germline opportunity as we enter 2026. Finally, as part of the ExoDx acquisition, we commented on the broad IP and clinical scientific data in multiple cancers, including prostate. We will be actively evaluating strategic opportunities from this platform, both within MDX Health, as they apply to our urology focus, and through partnering opportunities as they may present themselves. We now believe and are confident that no other company is better positioned to improve the patient journey through prostate cancer diagnosis and treatment, and that our results continue to reflect our success in bringing value to this patient population. I will follow up with closing comments and a view forward But first, let me turn the call over to Scott McMahon for a review of our financial and operating results for our third quarter. Scott?

Thank you, Mike. To follow on Mike's remarks, we are very pleased to report strong performance in the third quarter of 2025. Q3 total billable volume was approximately 33,000 tests, of which approximately 13,000 were tissue-based, and 20,000 were liquid-based tests, representing total unit growth of 37% versus the prior year quarter. Volumes for tissue-based tests, which include confirmed MDX and GPS, increased approximately 18% over the prior year period. Volumes for liquid-based tests, which include select MDX, resolve MDX, germline, and the newly acquired XODX increased approximately 65% over the prior year quarter. Revenues for the third quarter ended September 30, 2025, increased by 18% to $27.4 million versus $23.3 million for the prior year quarter. Issue-based tests made up 76% of revenues for Q3. Moving below the revenue line, our gross profit for the quarter was $17.9 million, an increase of 25% as compared to $14.3 million for the third quarter of 2024. Gross margins were 65.2% compared to 61.2% for Q3-24, an increase of 4 percentage points primarily attributed to our test mix and improved efficiencies in our operations. Our operating loss for the quarter declined 57% to $2.6 million compared to $6.1 million for the third quarter of 2024, primarily driven by our growth in sales and gross profit. Our net loss decreased 28% to $8 million compared to $11.2 million for the prior year. Adjusted EBITDA for the quarter was a positive $1 million compared to a negative $3.8 million for the third quarter of 2024. Note that a reconciliation of IFRS to non-IFRS financial measures has been provided in the tables included in this press release. Cash and cash equivalents as of September 30, 2025 were $32 million. This concludes my overview of the results. I will now turn the call back to Mike.

Thanks, Scott. We believe our Q3 results reflect the reputation we are building for excellence in focus, execution, and growth. And so, as we look forward, we are committed to excellence in the following operating principles. Discipline in our capital allocation is reflected in the linear decline in cash used in operations, with Q3 almost breaking even with respect to total use of cash. Absolute dedication to the patient and customer experience by every single part of our organization. The highest expectations for continued growth driven by our sales channel to meet or exceed expectations defined by performance over time. With a culture of recognizing execution through an incentive compensation plan that rewards sustainable growth. Our culture of quality first and customers always will ensure our building reputation for excellence in operating discipline, commercial execution, and most importantly, the patient and customer experience will continue to fuel our growth in a sustainable way. We are very proud of our growing reputation for meeting our exceeding expectations and delivering on our commitments. to patients, customers, and the market. Whether in the sales force, laboratory operations, revenue cycle management, client services, patient advocacy, quality and regulatory, our entire MDX Health team operates under the mission that there is a patient and family on the other side of every sample we receive. That is what drives our customer base to trust MDX Health as their laboratory partner for critical diagnostic tests that inform patient pathways. We will continue to strive to deliver on our commitments of growth and value while positioning MDX Health as the leading growth precision diagnostics company focused solely into our high growth target urology market. And as always, we carry a great deal of responsibility provide value to all of our stakeholders, including patients, customers, payers, and shareholders. Thank you for your interest in and support of MDX Health.

Now I'll turn the call back over to the operator for questions.

Thank you. We will now begin the question and answer session. To ask a question, you may press star and then one on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then two. At this time, we will pause momentarily to assemble our roster. We have the first question from the line of Tan Brennan from TD Carbon. Please go ahead.

Great. Thank you. Thanks for the questions. Maybe just the first one. Just on XO in the quarter, it looks like, you know, given the liquid volumes, really had a strong liquid quarter. Just wondering if you can give us any color on the contribution of XO in the quarter. And then, B, related to that, there's some moving pieces, obviously, with your product portfolio as we exit the year, you're exiting germline. you're deemphasizing select, but now you have XO in there. We would net those all out to still be a positive contributor such that like you should see upside to revenues. You guys aren't baking anything in right now, maintaining the guide. Is there a conservatism in that? Or anything you can help on that would be really great.

Yeah, Dan, I got the question. So just to be clear, to take a step back, we had, as we had discussed, not expected material contribution from Germline in the first half of this year. We did, however, signal and expect material contribution from Germline in Q3 and Q4. As we entered into the process on the EXO DX acquisition, it became clear that that would likely lead to a successful outcome. We adjusted that focus knowing that we would need to require all of our resources, focus, and attention on the closing of the deal, which happened at the end of Q3. So part of your question is no material contribution from EXO. And that is an offset. So without any contribution from what we expected from Germline and a Q4 contribution from EXO, We're confident that we can meet or exceed our revenue guidance. That informs our view there and hopefully answers your question, which I understand. So we are very clear that the transition, the liquid growth in Q3 was candidly driven. I'm sorry, our resolved business continues to accelerate. And, you know, we did see, we announced the deal in August. We didn't close until the end of September. So we really were focused on managing. I communicated when we announced the acquisition that I wasn't going to comment on our strategy for select and exo in the market out of respect for our customers and sales reps that were working that. And we're confident that we navigated through that, you know, weird period, for lack of a better term, with a lot of competitors running around and making assumptions that we held off. So we believe that our results for the year in Q4 will reflect our original thesis on the opportunity ahead of us with the EXO acquisition. And the offset of germline, we believe, is the right strategy to ensure Very, very successful integration of an expanded sales organization with territory adjustments, cross-training, and maintaining the customer base while we move customers away from select and onto EXO. So hopefully that answered your question. And, yeah, we think we made the right decisions there, and obviously we'll look forward to reporting support for those.

Okay. And then maybe any color just on GPS, obviously such a big driver of revenue for the company, just given the ASP you realize on that, just wondering what you could characterize, how GPS did in the quarter. We were tracking volumes up significantly over the last couple of quarters. Just any color, how it came in, any color on price or volume or just what the environment's like. And then what do you have kind of baked in as we think about GPS for the you know, for the fourth quarter?

Yeah, so, you know, our tissue reported 18% growth. You know, we feel that that's significantly ahead of the market growth, and we're very confident that our performance continues there with no material change to the economics. And remember, that is confirmed in GPS. In Q3, I usually don't comment on seasonality. We did in our customer channel checks throughout the quarter see a little bit of a patient flow directed slowdown in number of biopsies. But again, we wouldn't tend to apologize for 18% growth on the tissue side. So business is going as we anticipated. and feel confident in both. I think the comment I would make is the mixed shift that you saw with tissue and liquid we view as very encouraging. In other words, our tissue as a weighting of revenue had been running about 80%. The last two quarters, it was up to about 85% of revenue. And what you saw in Q3 was a little bit of a flip of that, really driven by the strength of the resolved growth, and yet the margin held at the 65%, which is, I've said on the last couple calls, is ahead of our expectations. I've been reluctant to set that as the view forward, but obviously it shows confidence that we're seeing really good execution and efficiencies in our COGS and gross margin profile across our menu. both liquid and tissue. So we believe that's sustainable as well.

Great. And maybe just a final one, just back to like the first point. So presumably whatever the XO contribution is, given the fact you're holding the guide, is the assumption that that contribution is around the same level, you know, is around the same level as the germline test and the select test? Or has something changed in your underlying assumptions for the rest of the business? Thank you.

The former, not the latter. We are still very, very confident in not only the core EXO business that we acquired, it's early. And as we go forward over the next two or three quarters, we'll comment on what we see as a real opportunity there with the expanded sales organization. And a renewed focus on that part of our market opportunity, because I don't want to say we had walked away from it, but we were clearly challenged. And as I've commented, our focus for the first half of the year was really leading toward the tissue. I think our results business is just really going based on our sales rep focus, but also a little bit of peer-to-peer help there. We're probably on our fifth generation of that test. It's the best test we believe on the market unequivocally. So we really see balanced growth throughout the menu with just an adjustment in our strategy that lines us up where we expect it to be for the year.

Okay, great. Thank you. Thanks, Dan.

Thank you. We have the next question from the line of Andrew Brackman from William Blair. Please go ahead.

Hey, guys. Good afternoon. Thanks for taking the questions. Mike, you mentioned the analysis that you did of your customer bases, and that's informing some of the sales team expansion here. Any additional color you can maybe give on that analysis, how you're viewing the opportunity across the combined customer bases here and how we should be thinking about the total opportunity size?

Thanks. Yeah, Andrew. So probably what you would expect, right? I mean, we tried not to overcomplicate it, but what we did was we looked at their customer base and we had pretty good information. I'll just say a little bit different than the GPS. That was a carve-out asset acquisition. This was an acquisition of the business. So between signing and closing, we did a lot of work on the customer base, the crossover, and what we really looked at was growth trends within an area of the business, and then also looking at where there was exo-business where we saw opportunity to build our tissue size, GPS and confirm, and vice versa. The second comment I would make on that is that we know a lot of those customers because, candidly, they're former select customers over the past few years as the market has moved on us. So we really took a composite view of, A, sales talent, B, historical ordering trends, and then crossover mix of our menu within our target customer base. And that informed the expansion, which we think was the right number, proven that strengthens our focus, so we expect to drive that same productivity now over a little bit larger sales organization while still being able to carry our P&L forward with all the progress we've made, you know, the full P&L from an OPEX absorption and productivity across the sales organization.

All that's great, Keller. And then just on the integrating client service and RCM initiatives here, just on the operations front, can you maybe just sort of talk to us about the opportunity that's there on the RCM? Why did you choose to do this now and how we should sort of think about the potential downstream effects? Thanks.

Yeah, I guess I called that out just because, you know, what we retained and crossed over from the business were the key operating parts of the business, right? Salesforce set aside. We were, you know, we saw, we'll recognize synergies there based on the size of the sales organization they were carrying and what we elected to take over. And we ran a really high quality, which was important to us, to me, really looking at each rep, each territory, each customer base. My comment there is just the three key parts of the business that we have to be and plan to be very successful integrating to our operating business is the laboratory operation, which is with us now, the client services group, and the revenue cycle management group. So my comment stands to be integrating those so that we're all working the same process focus and execution and expectations so that we can predict and protect the business as well as we have over the last number of quarters and years. And that'll be the sole focus in Q4. So when we come back at the beginning of the year and provide guidance for 2026, it will be informed across all of the aspects that drive the P&L, right? The top line unit growth, our coverage, in cash collections and then how we support our customers through our client service group with a menu that is more advanced than some of our competitors with you know four tests being ordered in a different mix set by certain customers as well so all that is what we're focused on for q4 and that that constitutes the new people in parts of the organization that are coming over that we expect in a quarter or two to be fully integrated, just as we've made progress over the last couple of years with our group that I hope I pointed to with the growth not being linearly offset by our spend on the FX side. And that's what we anticipated over the last number of quarters. And we've had 1% OpEx expansion over the last year on 20% top line growth. That we expect to continue. And those are the groups that we've got to make sure that we integrate so they're operating at the same efficiency levels that we have.

Okay. All helpful. Thanks, guys. Thanks, Andrew.

We have the next question from the line of Bill Bonello from Craig Halem. Please go ahead.

Hey, guys. Thanks a lot. A few follow-up questions here. So first of all, if we're doing our math right, it looks like maybe on the tissue side the ASP was down about 7% or so sequentially, I guess. Does that sound about right? If so, is that a function of mix between the tests, and if it's not a function of mix, sort of what's driving that move?

Yeah, I mean, Bill, we don't report our ASP by test, and we see variability each quarter. So as we go forward, we don't see a material change in our view of but really, you know, our entire menu consolidated, or how we think about our payer mix, and we'll continue to report on that each quarter, but I don't view that as anything notable.

Okay, because, Mike, even if I, you know, just look at the total, you know, total tests and total revenue, uh you know the asp was was down uh you know quite a bit year over year and sequentially as well and so it's just uh it it's it's a little confusing there's that much fluctuation from quarter to quarter yeah bill we are very very conservative on our revenue cycle management estimates you know as you run in the lab model so we just um we don't

I don't have any additional comment on that.

Okay. And then I guess I just sort of want to come back to the guidance again, because much like Dan, I think we had sort of assumed that the guidance would go up when you closed the acquisition. And shame on us for not realizing you had that much germline baked into the initial guidance. At the time you announced the XODX acquisition, you talked about, you know, assuming it would add, you know, at least 20 million of revenue next year. Has anything changed on that front thus far?

Nothing has changed. And if you view that offset as that we expect it, five million or a little bit more in germline in the second half that would be a good assumption as we don't guide to products but we we wouldn't have communicated we saw an opportunity there if we didn't intend to focus on it and execute and deliver um yeah we don't feel that's the right use of our focus particularly over the next couple quarters um so you're reading it right and absolutely zero change on our view of the opportunity of the contribution from EXO as we go forward.

That's helpful. And I know you're not going to give 2026 guidance and you might not even answer this, but I'll ask it anyway. When you first sort of put that out there, the way we had thought about this was, gosh, you're sort of a 20% grower and we tag you know, 20 million or whatever, you know, the actual number is on top of that from the acquisition. It sounds like maybe that's the wrong way to be thinking about it. And we should sort of be thinking 20 million and we net out 10 million of kind of lost

germline and and so net net maybe you know the real ad is is sort of 10 million to whatever the basic growth rate is or or you know how are you kind of thinking about that well i think i had a really smart analyst once telling me don't guide to the following year until it's time to guide to the following year um but i think what i said was we expected we expected uh that's a i think I think I stand by our view that we made, that we expected the EXO business could contribute $20 million or more in 2026. That was a view, not guidance, not intended to be guidance, I should say. And that view is unchanged. And I also said that I expected it to accelerate our revenue growth from 20% to close to 30%. Again, that was our view. It wasn't intended to be guidance. So when we provide guidance at the beginning of 2026, I think our view from today is that those are reasonable in the ballpark assumptions of how our business builds.

That is particularly helpful. I appreciate that. And as always, we appreciate your prudence.

Thank you, Bill.

We have the next question from the line of Mark Massaro from BTIG. Please go ahead.

Thanks, guys. I enjoyed that discourse in the last round of questions, but I think, you know, I'd like to maybe ask this one, which is, you know, Mike, I understand that the XO test is certainly an attractive test. You've got many other attractive tests in your bag. And, you know, I wanted to just get your temperature on the germline test. I recognize that you'll reevaluate that next year. But my sense is that you saw something in the marketplace, whether it was the competitive environment or just demand. But yeah, I mean, can you just maybe give us a little more? Why are you sort of setting this test aside?

Yeah, I got the question for sure, Mark. So just to be clear, we see that as a market opportunity that makes sense for our business, our offering, right? We have competitors, non-competitors, partners, You look at, you know, you can name them probably better than I, but everybody from Exact Sciences to a couple of our competitors offer that. So having that, but candidly, you know, in a non-materially differentiated way, the way we anticipated, which we have, I think, a good track record for, is when we have our sales organizations, Our sales organization, and I'll speak to it individually, our sales reps that I think have built access, influence, and sway. Please take that as a respectful term, but that's how you build. And everything I say about our organization being focused on the customer experience, that's how we've built that. So our assumption and thesis on that was it's an offering that makes sense. If you look at our resolve test, I mean, everybody's got a resolve, or I'm sorry, a UTI test is not unique. What we've been able to do with that business is driven by, yes, we think the best test for complex infections in our patient population within urology. We've continued to innovate that test. I think we're on our fourth or fifth generation. But when that started to go was when we really pushed it into our sales organization. We elected not to push that into our sales organization. So our view of what we could accomplish and achieve in that was somewhat extrapolated by our experience. And the way we see customer adoption go from zero to material contribution and growth of a product that is not maybe as proprietary as confirmed GPS and EXO. So that was our view. We just chose not to have our reps spend time on that in the first half, as I noted, for the reasons I stated. And we made a late decision to forego it in the second half. But per the math, the implied math question, If you made the assumption that we expected it to contribute the delta between where you might have thought we'd be with $5 million in EXO and Q4 and not taking up guidance, to be clear, that's the question. I get it. Yeah, that's a good assumption, that we feel like if we roll that out at the beginning of Q3 to our sales team, that we'd be able to drive that type of adoption. You have to remember, we have... sales reps now that need to be cross-trained adjusted to modest, but every time you adjust territories as a former sales rep, they're always viewed as material. Not like with the GPS when we doubled our sales organization, but we deemed that that was the appropriate way to cement our investment in this asset. We don't see the germline market as going away. And as I noted, we'll revisit that. So that's a fair answer to your question.

Yeah. Yep. That's great. So, yeah, growth margins were really strong, over 65%, up about 400 bps in the quarter. I wanted to ask, if we take XO and just sort of like annualize it out, do you expect XO to be accretive to growth margins? in 2026, and then another way to think about it is, is 65% a level that you feel comfortable with executing against, or are there some mixed factors that we should be thinking about for next year?

I anticipated that question coming from you, Mark, and I think we'd like a full quarter of EXO. I said that our expectation was that it would be neutral to creative to gross margin We have no reason to change that view. I think we want to see is a quarter or two of mix and You know as I referred integrating, you know as we fully come over in q4 There'll be all the financial integration as well right working capital revenue cycle management different payer mix different collection profiles. We believe that maintaining our guidance reflects confidence that that all holds together. But again, I'd probably wait till the beginning of the year so that I can give you a clear view, an informed fact-based view of 2026. I'm just saying, give us a quarter and a half or so to get this locked. I've said that the gross margin has run out of our expectations. I'm beginning to think that we can see that continue, but we'll lock that at the beginning of the year.

Okay, and that's helpful. And then one last one for me. When we think about your new commercial team, you know, was this as simple as, you know, correct me if I'm wrong, was this as simple as taking your 50 direct reps and adding 10 from XO? Or was there some other MDX reps that might have been impacted and perhaps you added more than 10 from XO? And then can you speak to the experience and tenure of the XO reps? And just, you know, what early indicators are you seeing from those newer folks?

Too early to comment on the last part of your question. But the front part of your question, really no comment on that. We wouldn't comment on specific people within our organization pre-acquisition or post-acquisition. The net acquisition was 10 direct reps. And when we look at our Our sales organization individually and collectively, we really went through that process. We analyzed and credit to our commercial team. This I can share, we put every one of their sales reps through our process as if we were hiring a new rep. So I won't speak to them individually out of respect for those that came over, those that didn't. in our sitting sales organization going into the acquisition. But I will say that we were in a really tight process there. So that gives us confidence. And we learned a lot from the GPS acquisition. I was very open about that. That was more complicated than we anticipated. It took longer than we anticipated. So we're trying to take that experience and apply it here so that we really when we provide our view for the beginning of next year, we'll be informed with, granted, only a quarter, but we're working on that right now.

Great. Thanks very much. Thank you, Mark.

Thank you. We have the next question from the line of Thomas Flatton from Lake Street Capital. Please go ahead.

Hey, good afternoon. Appreciate you taking the question. Hey, Mike, just to confirm, so with the new 10 reps coming over, was this a question of adding two new white space territories or were you splitting and sub-segmenting existing territories or maybe a combination of both?

Yeah, we really don't have white space pre-acquisition. We design our number of reps is designed to cover the full geography of the U.S. I would say it was probably more a function of putting strength on strength. I want to wear you out with my striker experience, but add strength with strength. And so we looked to do that, but we were also opportunistic where we saw, as you would expect, strengthen a customer base in a particular territory where maybe we hadn't been performing as well as we expected. So that was all part of our calculus there. It's not complicated like you wouldn't understand it, but it was complicated to make sure that we went through the exercise so that it didn't happen. So yes, the embedded question was, did territories change? Yes. When you go from 50 to 60 and you're fully covered without white space, yeah, there were territory adjustments. Not as... Got it.

Not as... I realize this question is probably a lot early, given how early it is since the acquisition closed, but any negative feedback or pushback from docs making the switch from select to XO? I don't know how you've been messaging that to docs that you're in process of doing that.

Too early to comment, but we're confident that that will not create friction or tension on our customer base. And again, please take this the right way, but it's somewhat informed by the customers that are already converted in voluntarily from Select to Exo. It's just a better test today.

Yeah, got it. Appreciate it. Thanks. Thank you, Thomas.

Thank you. Ladies and gentlemen, this concludes our question and answer session. The conference call has now concluded. Thank you for attending today's presentation. You may now disconnect.