MDxHealth SA

Hello and welcome everyone joining today's MDX Health Second Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. To register to ask a question at any time, please press star 1 on your telephone keypad. Please note this call is being recorded. and we are standing by if you should need any assistance. It is now my pleasure to turn the meeting over to John Francis with LifeSci Advisors. Please go ahead.

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 second quarter of 2026 Earnings Conference Call. With me today is Ron Kalfas, Interim Chief Financial Officer. Q2 was a pivotal quarter for MDX Health. Following the unanticipated reimbursement developments related to our resolve test in April, our Q2 results reflect the strength of our core business, which was precisely what we committed to deliver with our sales force focused solely on this significant market opportunity. More specifically, We communicated that we expected sequential revenue acceleration from Q1 to Q2. We generated a 14% sequential revenue increase for $3.3 million, representing the largest quarter-over-quarter revenue acceleration in our company's history. We also anticipated a recovery in our tissue-based business, following the expected impact in Q4 and Q1 post-integration and Salesforce restructuring from the ExoDx acquisition. We delivered that recovery with the sequential increase of greater than 1,400 tissue-based tests. We aggressively set a goal to transition all of our resolved customers by the end of Q2, an objective that we achieved while also building deep credibility with our customer base. through the unwavering dedication and support of our sales and client services teams. Based on our revenue growth expectations, coupled with exceptional operating discipline, we are now firmly on track to return to positive adjusted EBITDA as we exit 2026. Following the discontinuation of resolved UTI testing, we completed the cessation of our Plano, Texas lab operations and eliminated the $10.4 million contingent liability to Novitas from our corporate structure as a discontinued operation through an organized wind down of that independently operated entity. And finally, we strengthened our balance sheet and cash position through a registered direct financing that generated $20 million in proceeds priced at the market with no discount or warrant structure. I want to express my sincere gratitude to our entire organization for their professionalism and perseverance over these challenging 90 days. In my experience, you were defined not by what happens to you, but by how you respond. Our entire team, from sales and client services the revenue cycle management and laboratory operations demonstrated incredible character, professionalism, and commitment to our customers and to each other. I am immensely proud to stand alongside such a resilient group of professionals who stepped up when it mattered most. I would also like to specifically thank our Plano, Texas team for their unwavering commitment to serving our customers through their final day of operations on June 30th. Their professionalism and dedication to our patients was extraordinary. And our entire organization owes them a debt of gratitude for their integrity and service. This company did not suddenly forget how to operate and execute. While our operational strength was clearly on display in Q2, we are confident that our growth trajectory will return to the performance have consistently delivered over the last number of years as we move through the remainder of 2026 and beyond. This confidence is rooted in our high growth market opportunity, our strong competitive position, and our unparalleled suite of clinically actionable diagnostics supporting clinicians and patients across the entire prostate cancer continuum. Our foundational commitment to focus, execution, and growth has never been more evident than during our navigation of Q2, and we look forward to continuing that momentum. Before turning the call over to Ron, I want to thank our shareholders who stepped up to support our mission, as well as our customers and stakeholders for their continued trust and confidence in MDX Health. We are incredibly proud of our team's commitment, not only to our operational and financial performance, but to what matters most, the patient and family on the other side of every single sample we receive. I will follow up some closing comments and view forward, but first let me turn the call over to Ron to walk through our second quarter financial results. Ron?

Thank you, Mike. Before I dive into the financial results, I want to briefly frame our Q2 presentation. As detailed in our press release, we have successfully completed the wind down of our resolved UTI business in Q2 with a permanent cessation of operations of our Delta Laboratories subsidiary and its Plano, Texas laboratory prior to June 30, 2026. Having met the requisite accounting criteria, the resolved business is now formally classified as a discontinued operation. As such, all current and prior year financial metrics reflect only our continuing core operations, with the historical results of the resolved business fully excluded. Our revenue for the second quarter ended June 30, 2026, with $27.2 million, an increase of 16% over the second quarter of 2025. Revenue in the second quarter of 2026 was comprised of 73% from tissue-based tests compared to 96% for the same period last year. Moving below the revenue line, our gross profit for the quarter was $17.9 million, an increase of 11% as compared to $16.1 million for the second quarter of 2025. Gross margins were 65.7% compared to 68.6% for Q2 2025, a decrease of 2.9 percentage points, primarily attributed to tissue versus liquid mix. Our operating loss for the quarter increased to $5.1 million compared to $1.5 million for the second quarter of 2025, primarily driven by increases in headcount and other operating expenses. related to the EXOVX acquisition, which were not present at this time last year. Our net loss increased 36% to $9.5 million compared to $7 million for the prior year, primarily driven by operating expenses related to the EXOVX acquisition. We are confident that our guidance and associated revenue growth will absorb this increase in acquired operating expenses and returning to our trend of adjusted EBITDA profitability as we exit this year. Adjusted EBITDA for the second quarter was a negative $2.3 million compared to a positive $1.1 million for the second quarter of 2025. Note that a reconciliation of IFRS to non-IFRS financial measures has been provided in the tables included in this press release. Finally, cash and cash equivalents as of June 30, 2026 total $19.2 million. In addition, on August 11, we executed a $20 million registered direct placement with existing shareholders. After taking this transaction into account, our pro forma cash balance as of June 30, 2026 would have been $39.2 million. This concludes my overview of the financial results and I will now turn the call back to Mike.