NeoGenomics, Inc.

Good morning, and welcome to the Neogenomics Fourth Quarter and Full Year 2025 Financial Results Call. Please be advised that today's conference is being recorded. I will now turn the call over to Kendra Webster with Neogenomics. The floor is yours.

Thank you, Kelly, and good morning, everyone. Welcome to the Neogenomics Fourth Quarter and Full Year 2025 Financial Results Call. With me today to discuss the results are Tony Zook, Chief Executive Officer, Jeff Sherman, Chief Financial Officer, and Abhishek Jain, EVP of Finance. Additional members of the management team will be available for the Q&A portion of our call. This call is being simultaneously webcast. For reference, concurrent with today's call, we posted a short slide presentation to the Investors 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 the 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 and 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 statement. These documents can be found in the Investors section of our website or on the SEC's website. During this call, we also refer to certain non-GAAP financial measures that include 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 investor section of our website. I will now turn the call over to Tony.

Thanks, Kendra. Well, good morning, everyone. Thank you for joining us today. As been our practice, I'll begin with a discussion of Q4 highlights and key business growth drivers before turning the call over to Jeff for a deep dive into our 2025 financial results. Our new EVP and incoming CFO, Abhishek Jain, will then introduce our 2026 guidance. Afterwards, we'll open up the call for your questions. Our mission and vision guidance through 2025 to deliver improving results throughout the year. Let's get into the recent highlights. As we covered in our pre-announcement, during the fourth quarter of 2025, we delivered record revenues while making meaningful progress advancing our NGS and MRD long-term growth initiatives, including preparing for a full clinical launch of our RadarST MRD assay this month. I'll cover these initiatives in more detail shortly. Total revenue for Q4 was $190 million, representing double-digit growth of 11% year-over-year. Our clinical business continued its robust growth, with revenue increasing 16% year over year. The clinical performance was driven by effective execution of our key commercial strategy, enabling volume and share gains in key segments. In the fourth quarter, we again saw a sequential improvement in AUP, continued growth in test volumes and NGS revenue growth of 23%, well ahead of NGS market growth rate. The five NGS products launched in 2023 contributed 23% of clinical revenue in the quarter. We continue to see demand for our non-NGS modalities as well, with all modalities continuing to grow at above market grade. Our full year total revenue was $727 million, which represents 10% growth over full year 2024. We ended the year with significant momentum, and I attribute this to several factors. We're a pure-play oncology solutions provider driving rapid dissemination and adoption of innovation through our best-in-class commercial organization in the community setting. Studies have shown that as much as 80% of all cancer care is now delivered in the community setting, which has historically lagged NCI-designated cancer centers when it comes to introducing the latest in cancer testing innovation. How are we winning in the community? We believe community oncologists are guideline-driven and focused on certainty, not possibility. and they choose partners that remove friction and enable confident treatment decisions under operational, economic, and time pressures. Reimbursement coverage also is critical. The results of several meetings of our scientific advisory board, as well as independent market research that we commissioned, reveal several reasons why community oncologists look to us. Neogenomics offers ease of ordering, simple to interpret test reports, fast and consistent test turnaround times, access to medical expertise, And most importantly, our comprehensive test menu spanning diagnosis, therapy selection, and MRD. Our net promoter score of 79 reflects strong physician satisfaction among our current customer base with our NPS score continuing to improve in 25, even with record test volumes. Two, we enjoy a leadership position in the hematology testing market with greater than 25% share across diagnostics and therapy selections. And as pathologists and oncologists consolidate the number of vendors they use, we are successfully leveraging this heme leadership position to create enhanced test demand, particularly in high-value areas such as therapy selection and MRD. In fact, in 2025, we saw 14% growth in the total number of pathologists and oncologists ordering five or more tests from NEO. On top of that, we estimate that approximately 40% of all active pathologists and oncologists have ordered five or more tests of ours during the year. While we're proud of that reach, it also means that over half of practicing providers are still available to us to bring over to NEO. Three, 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. This network was further strengthened by our acquisition of New Jersey-based Pathline last year, which gives us a meaningful presence in the number three cancer market in the country. We're on track to capture operational efficiencies and synergies from the Pathline acquisition that we anticipate will be accretive to profitability beginning this year. In four, we have one of the broadest cancer test menus in the industry, expanding diagnosis to therapy selection to MRD for both heme and solid tumor cancers, including over 300 commercial payer contracts, which enables us to be the partner of choice among community hospitals and community oncologists. We're highly differentiated from both large reference labs as well as specialty oncology labs, and this optimally positions us to address underpenetrated markets in therapy selection and MRD in excess of $30 billion, while potentially improving outcomes for patients as they advance along the cancer care journey. We're enabling precision oncology in the community setting. Turning now to RadarST. In November, we presented new research for the RadarST assay for circulating tumor DNA detection across solid tumor types. The data from this bridging study showed that RadarST demonstrated 97% concordance and maintained equivalent sensitivity with Radar 1.0. This bridging study was used to secure multi-X reimbursement in the two previously approved indications, HPV negative head and neck cancer and a subset of breast cancers. This decision paves the way for us to broadly commercialize RadarST, formerly Radar 1.1. To that end, we're on track to execute a full clinical launch of RadarST by the end of this month. As part of our go-to market strategy, we're expanding our sales force to help us penetrate the head and neck market. We believe adding feet on the ground will help us penetrate this market with the only Moldex-approved HPV negative test currently available to patients. To ensure that we're well-positioned to capture more of this large and rapidly growing MRD market, we have also submitted two additional solid tumor cancer indications for Moldex for approval. While we're not disclosing these cancer types yet for competitive reasons, we believe that upon securing coverage, we will effectively double the market opportunity of patients eligible for RadarST testing. To expand our reach, as we secure additional mold DX approvals, we expect to add more than 25 oncology sales specialists, or OSSs, by the third quarter. From a financial perspective, we believe 2026 will see modest revenue contributions from RadarST as adoption ramps, and we gain reimbursement approval in the additional indications. We expect revenue growth to accelerate in 2027 and beyond. In parallel with our RadarST launch preparedness activities and efforts to gain coverage for additional indications, we also continue to focus our R&D investment in next-generation MRD. This assay will be an ultra-sensitive, whole-genome solution for lower-shedding cancer types. We're working on product development now, with data generation and mold DX submissions slated for next year, and a potential clinical launch as early as 2028. Turning now to our Pantracer portfolio of products for solid tumor therapy selections. Pantracer is designed for solid and liquid to work together, empowering oncologists with actionable genomic insights for confident, real-time treatment decisions. The tests can be ordered independently or as complementary tests, depending on a patient's individual needs. 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. Importantly, Pantracer LBX fills a gap in our portfolio that providers have been asking for, allowing them to further consolidate the number of labs they use. We have submitted to MoldDX for clinical reimbursement coverage of the LBX test and are awaiting a decision. Assuming a favorable decision, we anticipate that LBX will contribute modestly to revenue in 2026 as adoption ramps throughout the year. Another product in the Pantracer family, Pantracer Tissue had strong growth throughout 2025. We doubled the volume of tests ordered from 23 to 24 and then nearly doubled again from 24 to 25 while continuing to grow AUPs. This represents another proof point of our ability to pull higher value tests through our community channel, leveraging our heme leadership position. 75% of community oncologists who were new to NEO in 2025 ordered five or more tests a strong leading indicator of our continued growth and success penetrating the community channel. I'm pleased to share today that the Pantracer portfolio is growing. Last week, we launched Pantracer Pro as part of the expanded solid tumor therapy selection portfolio. The test integrates broad genomic profiling with diagnosis-directed IHC and ancillary testing, intelligently selected based on tumor type and clinical context to provide oncologists with actionable insights for therapy selection in a single order. Pantracer Pro rounds out the portfolio and it will help streamline the ordering and testing process, delivering timely, relevant results, helping clinicians personalize treatment strategies and improve patient outcomes. At the end of 2024 and moving into 2025, we invested in our commercial organization, specifically our oncology sales specialist. We added 35 people to this group who target community oncologists. And as these individuals mature in their roles, we're seeing a continued uptake in NTS testing accounting for a larger portion of our total clinical revenue as we increase our reach and frequency. This penetration speaks to the strength of our commercial channel as well. We have launched five NTS products since March of 2023, and even though we were later to market to some of our peers with these products, we are still seeing very good uptake. Pantracer Tissue, highlighted earlier, was one of the five products which reflects the breadth and strength of our menu, and our ability to capture market share when we introduce new products. With the success of our NGS products, we now have the opportunity to be more selective with the volumes that we prioritize. We are intentionally shifting testing capacity towards more therapy-guided and higher-value testing, which is expected to make AUP expansion a more significant driver of revenue growth relative to volume. And with that, I'll hand it over to Jeff to further discuss our results in the quarter and full year.