NeoGenomics, Inc.

Greetings and welcome to the Neogenomics first quarter 2025 conference call. At this time, all participants are on a listen-only mode and a question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Kendra Sweeney, VP of Investor Relations. Mom, you may begin.

Thank you, Ali. Good morning, everyone, and welcome to the Neogenomics First Quarter 2025 Financial Results Call. With me today to discuss the results are Tony Zook, Chief Executive Officer, Jeff Sherman, Chief Financial Officer, Warren Stone, President and Chief Operating Officer, and Andrew Lukowiak, Chief Innovation Officer. Additional members of the management team are available for Q&A, including Kareem Saad, Head of Strategy and Transformation, Ali Alevo, General Counsel and Head of Business Development, and Dr. Nate Montgomery, VP of Clinical Services. This call is being simultaneously webcast, and we will be referring to a slide presentation that has been posted to the investors tab on our website at ir.neogenomics.com. During this call, we will make forward-looking statements regarding our future performance. We caution you that actual events or results could differ materially. These forward-looking statements made during this 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 our most recent Forms 10-K, 10-Q, and 8-K we filed with the SEC to identify important risks and other factors that may cause our actual results to differ from the forward-looking statements. During this call, we 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. 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. I will now turn the call over to Tony Zook, Chief Executive Officer of Neogenomics.

Thanks, Kendra. Good morning, everyone, and thank you for joining us today. On today's call, we'll discuss the highlights of our first quarter financial results and provide an update on our key business growth drivers. Before we discuss our financials, I want to thank our teammates for their unyielding commitment to our mission and their hard work throughout the quarter. Our profound mission-driven culture is what attracted me to NEO, and it's what drives me and our 2,400 teammates every day. Since officially becoming CEO on April 1st, I've met with shareholders, our teammates in the labs, and our sales force in the field to gain a deeper understanding of our business. Many shareholders I've met over the last few weeks have asked, under my tenure, what stays the same and what changes? First and foremost, Neo's unique patient-centric culture is what motivated me to join the board a few years ago, and I believe it will continue to propel this company forward. The things that have been working, our commitment to cancer patients served in the community setting, and financial discipline across the company, stay the same. As we enter the next phase of growth, we will dedicate more resources to innovation through research and development, business development, and commercialization of new products to provide patients with more options for their care while expanding our market reach. I believe that Neo has a tremendous opportunity to further capitalize on our position as a leader in oncology solutions by offering a broad test menu that serves cancer patients and providers where they are, with a focus on the community setting. By most industry estimates, 80% of all cancer patients choose to be treated in the community setting, where they can recover in the comfort of their homes, surrounded by their loved ones and trusted doctors. Our deep relationships with community hospitals and oncologists provide us with a competitive advantage and a responsibility to deliver accurate results quickly to inform treatment decisions. We've taken steps to set our organization up for greater success, including the alignment of our commercial and operations teams under the leadership of Warren Stone, who's been elevated to the role of president and COO. In addition, in March, we announced the acquisition of Pathline, a New York State approved lab based in New Jersey, which allows us to expand our capabilities and accelerate growth by establishing a local presence in the Northeast. We expect to grow incremental top line revenue with contributions from the acquired business this year. While operational consolidation efforts and synergies are expected to yield cost savings, and help generate positive adjusted EBITDA from this acquisition starting next year. I look forward to working with this team over the coming years to execute on our long-term strategy and solidifying our position as the market leader in community oncology. With that, let's get into the Q1 highlights on the next slide. We had a solid start to the year with revenues of $168 million and adjusted EBITDA of $7.1 million. Clinical testing volumes increased 8% versus prior year, with a 3% increase in revenue per test. Our progress continues with adjusted EBITDA performance, with over 100% improvement for the quarter, making Q1 our seventh consecutive quarter of positive adjusted EBITDA. With continued strength of our clinical business and the acquisition of PACLINE, we are raising our full-year 2025 revenue guide while reaffirming our adjusted EBITDA guide. Now let me hand it over to Warren Stone, President and Chief Operating Officer, to give an update on the business and some insights into its growth.