MDxHealth SA

Good day and welcome to the MDX Health fourth quarter and full year 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note that this event is being recorded. I would now like to turn the conference over to John Francis with LifeSci Advisors. Please go ahead.

Before we begin, I'd 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 fourth quarter and full year 2025 Earnings Conference call for MDX Health. With me today is Ron Kalfas, who has returned as our 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 believe that our strong results throughout 2025 demonstrate this commitment, and that our guidance for 2026 will require that same commitment. We are very confident in our ability to deliver. Over the past few years, operating discipline, commercial execution, and an aggressive growth strategy has positioned MDX Health as the leader in precision diagnostics focused into urology. It is important to note that our consistent performance and growth have been driven by the following foundational principles that are cemented in our mission. Menu expansion is driving a balanced growth dynamic across our tissue and liquid biopsy products. This strategy was a primary catalyst for the ExoDx acquisition, capitalizing on one of the largest market opportunities as it relates to patient need and total addressable market, which we believe now positions us with the best-in-class precision diagnostic menu across the patient pathway of prostate cancer. Prudent operating discipline. reflected in our reduced OPEX as a percentage of revenue over the past three years. Commercial execution and productivity reflected in our consistent delivery of 20% top-line growth while reducing sales and marketing spend as a percentage of revenue for the past three years. Prudent execution of growth opportunities that stems from internal focus and not just where the market is today, but where it is headed, coupled with customer-facing clinical needs, all of which resulted in acquisitions that have and will continue to fuel our growth and service to our patients and customers as the core of our strategy beyond the financial leverage that has provided our business. And finally, an organizational commitment to the customer experience reflected in our progress from candidly less than ideal turnaround time of critical tissue-based patient samples to now a best-in-class five days or less time to result, which is one of the highest customer experience metrics we track. We are incredibly proud of our entire organizational commitment to not only the financials, but what really matters to patients, staff, and clinicians. Taken together, these foundational principles are enabling MDX Health to comprehensively address the needs of prostate cancer patients across the entire continuum of care. From an initial elevated PSA to and through each point along the diagnostic pathway of prostate cancer. MDX Health can deliver a clinically actionable diagnostic for clinicians and patients. And finally, as it relates to our 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 continue to achieve sustained top-line growth while advancing operating profitability. On a couple of final notes, in Q4, we began the integration of the ExoDx business and met our internal goal of transitioning all of our select MDX customers to ExoDx, resulting in accelerated operating efficiencies, as we are no longer receiving select MDX samples. We also initiated the integration of our strength and sales organization with cross-training and strategic mapping of the expanded customer base, which we expect to complete by the end of Q1. On a related note, our reported revenue of $107.9 million is $1 million less than the approximation we provided in our pre-release. At the time of our top-line pre-release and advance of J.P. Morgan, our year-end closing process was less than complete than would typically be the case. With the release and acquisition of ExoDx, we have had to rationalize and consolidate disparate and quite complex closing processes, which directly impacts our methodology for calculation of ASPs and top-line revenue. However, The adjustment of $1 million to our pre-release revenue estimate does not affect our 2026 revenue guidance, nor the confidence in our growth trajectory. As always, our revenue guidance is based solely on unit growth associated with customer adoption and is not dependent on accelerating pricing dynamics. We also announced our amendment to the exact science's earn out from the GPS acquisition, lowering our upcoming earn out payment by close to $20 million, while deferring by an additional year the full earn out amount. This provides MDX Health with additional flexibility as we go forward with confidence of continued progress in our operating profitability profile. as reflected in our adjusted EBITDA performance, which we expect to reach 10 percent of revenue as we exit this year. I will follow up with closing comments and view forward, but first let me turn the call over to Ron Kalfas, whom we have welcomed back to the role of Interim Chief Financial Officer. Ron has been a valued member of our team for the past six years of growth and consistent financial results. coupled with its fiduciary duty to all of our stakeholders, which is of the highest quality and integrity.