BDSX

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 4:30 p.m. ET Chief Executive Officer - Scott Hutton Chief Financial Officer - Robin Harper Cowie Operator: Good day and thank you for standing by. Welcome to the Biodesix Q2 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Chris Brinzey. Please go ahead. Christopher Brinzey: Thank you, operator, and good afternoon, everyone. Today, Biodesix released results from the second quarter of 2026. Leading the call today will be Scott Hutton, Chief Executive Officer, He is joined by Robin Harper Cowie, Chief Financial Officer. An audio recording of today's call and the press release announcement with the quarterly results can be found in the investor relations section of the company's website at biodesix.com. As today's call includes forward-looking statements, we encourage you to review the statements contained in today's press release and the risks and uncertainties described in our SEC filings, which identify certain factors that may cause the company's actual events, performance, and results to differ materially from those contained in the forward-looking statements made on today's webcast. In addition, we will discuss non-GAAP financial measures on this call. Descriptions of these non-GAAP financial measures and reconciliations of GAAP to non-GAAP financial measures are included in today's press release. I would now like to turn the call over to Scott Hutton, Chief Executive Officer. Scott? Scott Hutton: Thank you, Chris, and thank you all for joining today. I'm proud to share that the Biodesix team delivered another quarter of strong growth, expanding margins, and improving operating leverage, reflecting the strength of our commercial strategy as we continue to progress towards profitability. In the second quarter, total revenue was $26.9 million, representing 34% growth year-over-year, accompanied by strong operating discipline and execution. Starting with our diagnostic testing business, revenue grew 42%, driven by accelerating test volume growth and improved ASPs over the second quarter of 2025. Total test volumes grew 38% year-over-year due to increased adoption from both primary care and pulmonology, which grew 133% and 31% over the prior year, respectively. We're pleased with the growth from both primary care and pulmonology, not only from new physicians beginning to order the Nodify CDT and Nodify XL2 test, but from increases in the number of patients tested from existing accounts. As a reminder, since the second quarter of last year, we've been ramping our efforts in the primary care market to address the approximately 50% of nodules that are managed by general practitioners. We've seen strong demand for Nodify testing in patients with smaller lung nodules. This population carries an inherently low risk of malignancy, but early detection of cancers significantly improves patient outcomes. Demand accelerated through the quarter following publication in March of the largest lung nodule biomarker validation study to date, which demonstrated that Nodify CDT can detect cancer in nodules as small as 4 millimeters while maintaining a low false positive rate. This clinical evidence drove a significant increase in Nodify CDT orders in smaller nodules during the quarter. Importantly, adoption within this patient population is also expanding utilization across the broader lung nodule continuum. Healthcare providers who begin ordering Nodify CDT for smaller nodules subsequently increase their use of both Nodify CDT and Nodify XL2 for patients with larger nodules. We are seeing this pattern consistently across customer segments, including both primary care and pulmonology. In addition to the publication at the end of the first quarter, we continue to present and publish clinical data for our on-market test. In May, at the American Thoracic Society, or ATS, annual meeting, real-world clinical and economic data was presented, including an independent study showing an increase in Stage 1 lung cancer detection after the implementation of a lung nodule program using Nodify Lung testing systematically to guide clinical decisions. Two others highlighted the role of Nodify Lung testing to overcome limitations with PET scans for nodule evaluation. The presentations at ATS continue to highlight the real-world clinical value and economic advantages of lung nodule management programs that use Nodify Lung testing for risk stratification. This growing body of clinical evidence is driving deeper account penetration and increasing test utilization. The result is continued commercial expansion of the Nodify franchise and further validation of its role in addressing the significant unmet clinical need. As we are growing our top line, our team's ongoing operational focus continues to yield improvements in gross margin and operational leverage. We delivered our fifth consecutive quarter of gross margins at or above 80%. Our total revenue grew 34% and operating expenses, excluding direct costs, only grew 7%, which included the expansion of our commercial team. With that, let me now turn it over to Robin to review our financial performance. Robin? Robin Cowie: Thanks, Scott, and good afternoon, everyone. Total revenue for the second quarter was $26.9 million, representing a 34% increase over the prior year period. Diagnostic testing revenue was $25.4 million, an increase of 42% year-over-year. The increase in diagnostic testing revenue was driven by growth in test volumes and higher average revenue per test. Test volumes were approximately 20,900, an increase of 38% year-over-year, supported by an average of 104 sales representatives in the field in the quarter. And we plan to continue our commercial expansion and end the year with approximately 120 sales representatives in the field. Sales force productivity continues to improve across the entire sales organization, with newer representatives advancing along expected productivity curves, while more tenured reps continue to expand their contribution. Improvements in average revenue per test over the prior year were primarily driven by additional payer coverage and improvements to revenue cycle management, continuing the trend that began in the third quarter of 2025 rather than any one-time item. The difference in average revenue per test versus the first quarter of 2026 was driven by the mix in test volumes between Nodify CDT and Nodify XL2, with average revenue per test for both Nodify XL2 and Nodify CDT improving over the prior quarter. Development services revenue for the second quarter was $1.5 million as compared to $2.1 million in the prior year period, reflecting timing of project completion and revenue recognition. We currently have approximately $8.5 million in contracted business and the demand for our services remains strong. As we have discussed previously, the timing of development services project execution and revenue recognition can shift between quarters. Gross margin for the second quarter was 82%, a 200-basis-point improvement over the second quarter of 2025. Margin improvement and strength was driven by growth in lung diagnostic testing, improvements in average revenue per test versus the prior year, and a decrease in average cost per test. Operating expenses, excluding direct costs and expenses, were $27.4 million, an increase of 7% year-over-year, supporting the 34% revenue growth delivered during the quarter. The increase in operating expenses was driven by an 8% increase in sales, marketing, and general administrative expenses due to our planned commercial organization expansion, partially offset by a 4% decrease in research and development costs in the quarter. The company expects continued operating leverage as our expanded sales team advances along the productivity curve and converts growing experience into sustained performance combined with our focus on operational leverage and efficiencies. Net loss for the quarter was $7.3 million, a 37% improvement compared to the prior year period. Adjusted EBITDA, which excludes non-cash and other one-time items, was a loss of $3.2 million, representing a 56% improvement over the second quarter of 2025. We ended the quarter with $30 million in unrestricted cash and cash equivalents, a 17% increase compared to the first quarter, which included $6.5 million of at-the-market net proceeds raised during the quarter. Excluding the ATM proceeds, net cash used in the quarter was $2.1 million versus cash use of $6.9 million in the second quarter of 2025, a 70% improvement over last year. We believe current cash, expected growth in revenue, and ongoing operational leverage provide sufficient liquidity to execute our growth strategy. Looking ahead to the remainder of 2026, in addition to our planned headcount expansion, we expect sales productivity to continue to improve as our sales team gains experience and tenure and our team continues their cross-discipline operational focus. As a result, we expect continued progress towards sustained adjusted EBITDA profitability and we remain confident maintaining our previously raised full-year revenue outlook of $108 million to $114 million. With that, I'll turn it back to Scott for some closing thoughts before we begin the Q&A. Scott Hutton: Thank you, Robin. Each year, August 1 marks World Lung Cancer Day. It is a day of importance for the Biodesix team to help raise awareness of the world's deadliest cancer and to expand society's understanding of the prevention, early detection, and treatment of this terrible disease that kills almost as many people annually as breast, colon, and prostate cancers combined. With the broadest portfolio of tests targeting lung disease and the largest lung-focused commercial team, it is our mission to transform patient care and improve outcomes through personalized diagnostics. We see significant opportunities to impact many more patients as clinical adoption expands, as our additional clinical and economic evidence reinforces the value of Biodesix tests, and as our commercial organization continues to mature. We remain focused on executing with discipline, improving capital efficiency, and delivering meaningful value to patients, providers, partners, and shareholders. In closing, I want to thank the entire Biodesix team for their continued focus, discipline, and commitment to our mission and culture. Let's now move to questions. Operator, you may start the Q&A session. Operator: [Operator Instructions] Our first question today is from Kyle Mikson with Canaccord Genuity. Alexander Vukasin: Hi, this is Alex Vukasin. I'm on for Kyle Mikson. Congratulations again on the quarter. So it was great to continue to drive diagnostics. You noted a few different things here. So you benefited from that recent publication supporting the utility of Nodify testing with small nodules and also healthcare professionals ordering Nodify CDT for small nodules, subsequently increasing their ordering of Nodify CDT and XL2 for larger nodules as well. So my question here is, do you believe this could remain a relatively meaningful test volume growth driver in the near term and potentially medium term? Scott Hutton: Hi, Alex. Great question. Yes, we do. We think post-publication what we've seen here is kind of the new trend and trajectory. The one thing that we know is that early detection and diagnosis matters. That was where that interest in the smaller nodules really originated. And we've seen great traction both for new customers and existing customers in adopting both. Alexander Vukasin: And one more for me. So we're seeing some signs of recovery in biopharma and biotech. Has this translated to additional contracted revenue and new deal flow coming in for you? Scott Hutton: Yes, great question, Alex. ASCO is really the largest meeting where you have an opportunity to sit with the major pharmaceutical companies. We noted that we had a strong ASCO this year, and we've continued to see great interest. As the team continues to formalize those agreements and sign those agreements, we'll give updates, but we feel confident that, that pipeline will continue to be robust for quite some time. Alexander Vukasin: Got it. And one last one from me. So you noted there was COGS improvement during the quarter. Could you just elaborate on that a bit? Are these efforts largely ongoing and we could see continued meaningful improvement or has the lion's share of the benefits already kind of been realized there? Robin Cowie: Yes, great question. We are constantly working on operational improvements, trying to increase our efficiency and efficacy. But with gross margins already above 80%, it's hard to drive it too much higher, but we are continuously working to strengthen our already best-in-class margins. So I don't expect huge increases, which is why we were reiterating margin guide right around 80% or just above 80%. Operator: Our next question is from Thomas Flaten with Lake Street Capital Markets. Thomas Flaten: Congrats on a great quarter. Just on the sales team dynamics, you guys added maybe a couple of heads fewer than I was expecting, but it seems like you're going to ramp hiring in the second half of the year. Can you just walk us through some of those dynamics, including how you're splitting it between pulmonology and PCP? Scott Hutton: Yes, great question, Thomas. You're spot on. We're approximately 2 short of maybe what you would have modeled. Most of that is just timing. As you know, when we share total rep count, it really is based upon them being hired, completing their training, and being actively in the field and positively contributing. So, we're continuously recruiting and bringing on the best team members that we possibly can. We haven't given great clarity on the split between primary care and pulmonology-focused sales reps to date because we're going to hire opportunistically. And again, some of that is based upon the progress we make in pulmonology and then those pulmonologists subsequently introducing Nodify testing into their referral network and those primary care physicians. So as that scales, then opportunistically we'll bring in somebody to support the primary care call point. To date this year, the majority of those new hires have been primary care focused. Thomas Flaten: Got it. And then looking ahead to the balance of the year, anything we should be expecting relative to more publications and then importantly, any news from the development pipeline? Scott Hutton: Yes, great question. We're always focused on data development. We think that's critically important as we continue to build this market. We have a number of papers that we have submitted. And so until they're actually accepted and published, we can't really share much on that. So we'll be giving news there. The CHEST meeting, which is the annual American College of Chest Physicians Society meeting occurs every year at the end of October, beginning of November. We usually target that for posters, presentations, and publications also. So more to come as we receive notice on those publications and presentations. But you definitely should be expecting more. We're very excited about our clinical efforts. Last year, we really highlighted the progress we'd made with CLARIFY. A couple of things have been submitted out of CLARIFY, so we're eager to start sharing that data. But more to come there. On the R&D side, you may recall last year around the AMP meeting we did a development partner and R&D update. We plan on doing another one of those this year, so in the November timeframe. We're eager to share some of the progress we've made. We think that we've made meaningful progress that will positively impact that pipeline and future revenue streams in years to come. Thomas Flaten: And if you could just help me, Scott or Robin, with some quick math. I know you said that PCP volumes grew 133%, but approximately what percent of your total testing volume now comes from PCP? I think it was 15% last quarter. Robin Cowie: Yes, it's very consistent with last quarter, right around that 15%. Operator: Our next question is from William Bonello with Craig-Hallum Capital Group. William Bonello: So it's been your strategy, which seemed really prudent to us, and the market seems to be appreciating to -- you grow at sort of a responsible pace, I think is probably how you'd describe it, Scott, and being sure that you're able to drive leverage from your top line growth, not getting out too far over your skis. I'm just wondering if your opinion on that changes at all in light of a couple of things. One, the really positive response that you are seeing from the paper that was published in the spring, and two, the response that you're seeing from your PCP efforts. Scott Hutton: Yes, Bill, it's a great question. We continually assess what it may look like to opportunistically expand the sales force more rapidly, but you nailed it. We're very cost-conscious, we're mindful of where we are on that path to profitability. We think that's critically important and have noted that there's not an abundance of diagnostic companies that have gotten to profitability and then stayed there. We think that's important not only for investors and shareholders, but also our team. So yes, we're going to continue to be mindful about when and where we spend money. We want to ensure that we've got great line of sight to an immediate return on that investment. And so we'll maintain that 6 to 8 hiring cadence per quarter and currently estimating that we'll end the year right around 120 sales professionals. William Bonello: Okay, that's really helpful. And then you're probably tired of getting this question every year, but as lung is around the corner, any updated thoughts on activities around guidelines? Scott Hutton: Yes, Bill, it's a really good question. We never get tired of that question because we think it's important that we talk about it. For those that may not understand what Bill was referencing, the ACCP or the American College of Chest Physicians have not updated their relevant guidelines in over 12 years. And so, as we all know, there have been significant advances in almost all avenues of healthcare and medicine. So there is not currently any reference to blood-based biomarkers, and so we feel that we've built a really strong data package. We think it's compelling, and so we'll continue to publish, present that data in hopes that when they update that we have a favorable response. CHEST went on record 2 years ago. They acknowledged they were behind. They stated that they had assigned a team to update those. The last CHEST meeting passed, and they said that they had moved their target to updating those guidelines this year, being 2026. So, to your point, Bill, as we head into October, and we all fly to Phoenix this year for that meeting, we'll be eager to see what updates they provide. William Bonello: Okay, thanks. And then just one last one that's sort of a two-parter, but the PCP test growth is obviously really strong. Just curious, sort of what you're seeing on the PCP front, how that growth is kind of breaking out between adding new providers and providers ordering more tests. And then along with that, I know you've been doing some of these special seminars around, nodule clinics and management programs and whatnot, and I'm just wondering if those are continuing to happen and, how they're going? Scott Hutton: Yes, Bill, we see strong momentum and growth kind of in new ordering physicians in primary care, and then those that began ordering a few months ago, we see them continue to increase and improve. So, it's a nice balanced approach across both. And you highlighted it, we've got first mover status, we take that both as a privilege and an honor that we're out there educating, training, and building this market. We highlighted the lack of updates to the guidelines. We also have noted that pulmonologists don't have a long track record with biomarkers. And so what you're referencing is educational events that we may sponsor or host. Our whole goal there is to put physicians in front of physicians so that there's peer-to-peer experience sharing, knowledge sharing and we think that's a responsible way to help build this market and we'll continue to do so. When we do those programs, we definitely see a number of physicians leave that having a better understanding of how nodule management tools like Nodify Lung can help positively impact early detection and diagnosis, hopefully increasing the likelihood of an earlier diagnosis, which we know leads to a higher likelihood of a positive outcome. Operator: Our next question is from Max Masucci with ROTH Capital Partners. Max Masucci: Nice quarter. Great to see the momentum in the core business. So first half, 38% year-over-year growth in revenue. If you look at the full year range, it implies second half growth, like around 16% at the midpoint, 22% at the high end. So I know you're comping up against a much stronger second half, but it would be great to understand just about the approach you're taking with guidance, just as you really try to balance what appears to be a nice multi-year growth acceleration with continuing to, set achievable targets. So more simple what has to go right to land above the implied range in the second half? Scott Hutton: Yes, thanks, Max. Our outlook is based on continued growth of our commercial team and improved sales rep productivity, especially those hired in the second half of 2025 as they gain tenure and experience in the field. We want to demonstrate continued ASP stability from payers and we fully expect that, and the anticipated volume growth across both pulmonology and primary care. We've already referenced that there will be new evidence generation, we'll continue to share that. We think these factors are in our control, they're repeatable and sustainable in 2026, and we're excited to go out and demonstrate that. The one thing that we have seen over time is that biopharma services, those partnerships, that there can be a seasonality and a lumpiness to those. And we want to be mindful of setting ourselves up for success. Robin Cowie: And Max, you're exactly right. The comps, there's a pretty strong step up in the second half of 2025. So the comps get a little bit closer, decreasing that year-over-year estimated growth. And just as a reminder, we did have about $1 million from back pay collections in that time period as well. So if you extract that, then the year-over-year growth looks a little closer to the first half. Max Masucci: Yes, that absolutely makes sense. So second one, I mean, fourth straight quarter of accelerating test volume growth. Also very strong sequential growth off of Q1, a bit above the normal Q2 step up that we see. So just curious how much of the growth acceleration can be attributed to the expanded PCP targeting versus other factors like rising productivity across the broader sales force? And then final one, just any catch up from -- in Q2 from the weather disruption last quarter? Scott Hutton: Yes, great question. Maybe I'll take that in reverse order. We highlighted last quarter that we did not see a significant or material weather impact. We saw minor impacts, but over time for us, with our really rapid turnaround times, we track the traceability of those orders coming in, and we haven't seen an impact. So we had a strong quarter last quarter on that front, and we hope to continue to do so. Robin, anything you would add on that? Robin Cowie: Yes, I think the timing of the weather in the first quarter was middle of the quarter, such that we had time to catch up inter-quarter. So that was good. We didn't have anything roll into the next one. Operator: Our next question comes from Yi Chen with H.C. Wainwright & Co. Yi Chen: So with operating expenses increasing just 7%, how are you balancing the accelerated commercial investment and also the pipeline development against the objective of sustained profitability, and what level of expense growth is embedded in the second half? Robin Cowie: Thank you for your question. We are very pleased with the leverage we're gaining. We've built a strong infrastructure and team internally here that can help support that accelerating revenue growth without having to grow our expenses at the same level. Our number one priority is growing top line revenue. Our number two priority is getting to profitability, as you mentioned. So we are very, very focused on maintaining expenses and growing the internal infrastructure only as needed. We anticipate that we'll see pretty steady operating expense from where we are now across the rest of the year with moderate step ups due to the increase in the commercial team. And we're working diligently with our partners in a cost-effective manner to advance our pipeline products without having to do massive investments to get the data that you've been seeing over the last couple of quarters on those pipeline products and to keep advancing that towards commercialization. Operator: I am showing no further questions at this time. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Before you buy stock in Biodesix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Biodesix wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Biodesix. The Motley Fool has a disclosure policy. Biodesix (BDSX) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Total Revenue: $26.9 million, a 34% increase year-over-year. Diagnostic Testing Revenue: $25.4 million, up 42% year-over-year. Test Volumes: Approximately 20,900, a 38% increase year-over-year. Development Services Revenue: $1.5 million, compared to $2.1 million in the prior year period. Gross Margin: 82%, a 200 basis point improvement over Q2 2025. Operating Expenses (excluding direct costs): $27.4 million, a 7% increase year-over-year. Net Loss: $7.3 million, a 37% improvement compared to the prior year period. Adjusted EBITDA: Loss of $3.2 million, a 56% improvement over Q2 2025. Cash and Cash Equivalents: $30 million at quarter-end, a 17% increase compared to Q1. Net Cash Used (excluding ATM proceeds): $2.1 million, versus $6.9 million in Q2 2025. Full-Year Revenue Outlook: Maintained at $108 million to $114 million. Warning! GuruFocus has detected 5 Warning Signs with BDSX. Is BDSX fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Biodesix Inc (NASDAQ:BDSX) delivered strong Q2 2026 results with total revenue of $26.9 million, a 34% increase year-over-year, driven by 42% growth in diagnostic testing revenue. Test volumes grew 38% year-over-year, with notable adoption from primary care (up 133%) and pulmonology (up 31%), indicating broad market penetration. Gross margin improved to 82%, marking the fifth consecutive quarter at or above 80%, driven by higher average revenue per test and lower cost per test. The company achieved significant operational leverage, with operating expenses (excluding direct costs) growing only 7% despite 34% revenue growth, and net loss improving by 37% year-over-year. Clinical evidence, including the publication of the largest lung nodule biomarker validation study, is driving increased adoption of Notify CDT in smaller nodules and expanding utilization across the broader lung nodule continuum. Cash position strengthened to $30 million, a 17% increase from Q1, with net cash used in operations improving by 70% year-over-year, supporting the company's path to profitability. Development services revenue declined to $1.5 million from $2.1 million in the prior year period, reflecting timing of project completion and revenue recognition, which can be lumpy. The company's full-year revenue guidance of $108 million to $114 million implies a slowdown in second-half growth to 16-22% year-over-year, due to tougher comps and a $1 million back-pay collection in the prior year. Sales force expansion is progressing slower than expected, with the company ending Q2 with 104 reps versus a planned 120 by year-end, potentially limiting near-term growth capacity. Gross margin improvements are expected to moderate, as management noted it is 'hard to drive it too much higher' above 80%, limiting further margin expansion potential. The company remains unprofitable, with an adjusted EBITDA loss of $3.2 million in Q2, and relies on continued operational discipline to achieve sustained profitability. The lack of updated ACCP guidelines for blood-based biomarkers remains a headwind, as the company awaits potential guideline updates that could significantly expand market adoption. Q: Can you elaborate on the drivers behind the strong test volume growth, particularly the impact of the recent publication supporting Nodify CDT testing in small nodules, and whether this can remain a meaningful growth driver in the near to medium term?A: Scott Hutton (CEO): Yes, we believe the post-publication trend represents a new trajectory for growth. The interest in smaller nodules stems from the critical importance of early detection and diagnosis. We've seen great traction from both new and existing customers in adopting both Nodify CDT and Nodify XL2, and we expect this to be a sustained driver. Q: Given the strong first-half revenue growth of 38%, the full-year guidance implies a slowdown in the second half. What has to go right to land above the implied range?A: Scott Hutton (CEO) and Robin Cowie (CFO): Our outlook is based on continued commercial team growth, improved sales rep productivity, and anticipated volume growth across pulmonology and primary care. We expect ASP stability from payers. The implied slowdown is largely due to a strong step-up in second-half 2025 comps, including approximately $1 million from back pay collections. Excluding that, the year-over-year growth looks closer to the first half. Q: How are you balancing the accelerated commercial investment and pipeline development against the objective of sustaining profitability, and what level of expense growth is embedded in the second half?A: Robin Cowie (CFO): We are pleased with the leverage we're gaining. Our number one priority is growing top-line revenue, and our number two priority is getting to profitability. We anticipate steady operating expenses from current levels with moderate step-ups due to the commercial team expansion. We are working cost-effectively with partners to advance pipeline products without massive investments. Q: Can you walk us through the sales team dynamics, including the hiring cadence and the split between pulmonology and primary care-focused reps?A: Scott Hutton (CEO): We are approximately two reps short of what you may have modeled, which is just a timing issue. We hire opportunistically based on progress in pulmonology and subsequent introductions to primary care physicians. To date this year, the majority of new hires have been primary care-focused. We plan to end the year with approximately 120 sales representatives. Q: What should we expect regarding future publications and news from the development pipeline?A: Scott Hutton (CEO): We have a number of papers submitted and will share news as they are accepted. We typically target the CHEST meeting in late October/early November for presentations. We are excited about our clinical efforts, including data from the Clarify study that has been submitted. We also plan to provide an R&D and development partner update around the AMP meeting in November. Q: Does the strong response to the spring publication and PCP efforts change your opinion on growing at a responsible pace versus accelerating investment?A: Scott Hutton (CEO): We continually assess opportunities to expand the sales force more rapidly, but we remain very cost-conscious and mindful of our path to profitability. We want to ensure a clear line of sight to an immediate return on investment. We will maintain a six-to-eight hiring cadence per quarter and end the year around 120 sales professionals. Q: Any updated thoughts on activity around guidelines from the American College of Chest Physicians (ACCP)?A: Scott Hutton (CEO): The ACCP has not updated relevant guidelines in over 12 years, with no reference to blood-based biomarkers. We have built a strong data package and will continue to publish and present. CHEST acknowledged they were behind and moved their target to updating guidelines in 2026. We will be eager to see updates at the CHEST meeting in Phoenix this October. Q: How is the PCP growth breaking out between new providers and existing providers ordering more tests, and are the educational seminars continuing?A: Scott Hutton (CEO): We see strong momentum in growth from new ordering physicians in primary care, while those who began ordering a few months ago continue to increase and improve. It's a balanced approach. We are hosting peer-to-peer educational events to build the market, and we see physicians leave with a better understanding of how NodifyLung can positively impact early detection. Q: How much of the growth acceleration can be attributed to expanded PCP targeting versus rising productivity across the broader sales force, and was there any catch-up from Q1 weather disruption?A: Scott Hutton (CEO) and Robin Cowie (CFO): We did not see a significant or material weather impact in Q1, and the timing was mid-quarter, allowing for catch-up within the quarter. The growth is driven by a combination of PCP expansion and improving productivity across the entire sales organization, with newer reps advancing along expected productivity curves. Q: With operating expenses increasing just 7%, can you elaborate on the cost improvements and whether the benefits have been largely realized?A: Robin Cowie (CFO): We are constantly working on operational improvements to increase efficiency. With gross margins already above 80%, it's hard to drive them much higher, but we are continuously working to strengthen our best-in-class margins. We don't expect huge increases, which is why we reiterate margin guidance around 80% or just above. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Diagnostic revenue growth of 42% was primarily driven by accelerating test volumes and improved average selling prices (ASPs) resulting from enhanced payer coverage and revenue cycle management. Primary care adoption surged 133% year-over-year as the company targeted the approximately 50% of lung nodules managed by general practitioners. A landmark validation study published in March catalyzed demand for Nodify CDT in smaller nodules (as small as 4mm), which historically carried lower perceived risk but high clinical value for early detection. Management observed a 'halo effect' where providers who begin using Nodify CDT for small nodules subsequently increase utilization of both CDT and XL2 tests for larger nodules. Operational discipline resulted in a fifth consecutive quarter of gross margins at or above 80%, with total revenue growing 34% while operating expenses increased only 7%. The commercial strategy focuses on 'responsible growth,' balancing sales force expansion with a clear path toward sustained adjusted EBITDA profitability. Full-year 2026 revenue guidance is maintained at $108 million to $114 million, assuming continued sales rep productivity gains and stable ASPs. The sales force is expected to expand to approximately 120 representatives by year-end, focusing on both pulmonology and primary care call points. Management anticipates potential updates to the American College of Chest Physicians (ACCP) guidelines in late 2026, which currently lack references to blood-based biomarkers. An R&D and development partner update is planned for November 2026 to share progress on the product pipeline and future revenue streams. Future growth assumes a continued shift toward early detection in smaller nodules, supported by ongoing real-world clinical and economic data presentations. Development services revenue decreased to $1.5 million due to the timing of project completions, though the company maintains an $8.5 million contracted backlog. Net cash used in the quarter improved by 70% year-over-year to $2.1 million (excluding ATM proceeds), reflecting significantly improved operating leverage. Biopharma services revenue remains subject to 'lumpiness' and seasonality, leading to a conservative approach in second-half guidance despite a robust pipeline. Gross margin improvements are expected to stabilize around the 80% level, as management notes limited room for further expansion given current best-in-class performance. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management believes the increased trajectory in small nodule testing is a permanent trend driven by the clinical priority of early detection. The March publication provided the necessary validation for physicians to trust biomarker utility in nodules as small as 4 millimeters. Hiring remains opportunistic; while the majority of recent hires focused on primary care, the split depends on the strength of local referral networks. The company maintains a steady hiring cadence of 6 to 8 reps per quarter to avoid 'getting out over their skis' financially. The ACCP has not updated relevant guidelines in 12 years and previously acknowledged they are behind schedule. Biodesix is targeting the late 2026 meeting for potential updates, having built a data package specifically designed to address current guideline gaps. Management noted strong interest and a robust pipeline following the ASCO meeting, indicating a recovery in biopharma deal flow. While the pipeline is healthy, revenue recognition remains dependent on the timing of formalized agreements and project execution.

Interested in Biodesix, Inc.? Here are five stocks we like better. Revenue increased 34% year over year to $26.9 million, driven by a 42% rise in diagnostic testing revenue and a 38% increase in tests processed. Primary-care testing volume surged 133%, while pulmonology volume grew 31%. Profitability metrics improved as gross margin reached 82%, net loss narrowed 37% to $7.3 million and adjusted EBITDA loss improved 56% to $3.2 million. Biodesix plans to expand its sales force to about 120 representatives by year-end while keeping expense growth measured. The company ended the quarter with $30 million in unrestricted cash and reiterated its 2026 revenue outlook of $108 million to $114 million, supported by continued volume growth, payer coverage gains and operating leverage. Biodesix (NASDAQ:BDSX) reported second-quarter 2026 revenue growth of 34% year over year, supported by increased diagnostic test volumes, higher average revenue per test and continued expansion of its commercial organization. Total revenue was $26.9 million for the quarter, while diagnostic testing revenue rose 42% to $25.4 million. Development services revenue declined to $1.5 million from $2.1 million a year earlier, which Chief Financial Officer Robin Harper Cowie attributed to the timing of project completion and revenue recognition. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Chief Executive Officer Scott Hutton said the company’s results reflected “strong growth, expanding margins, and improving operating leverage” as Biodesix works toward profitability. Biodesix processed approximately 20,900 tests during the second quarter, an increase of 38% from the prior-year period. The company said testing growth was supported by adoption among both primary-care providers and pulmonologists. Volumes from primary care grew 133% year over year, while pulmonology volumes increased 31%. → 3 Drone Stocks That Should Soar After the Summer Slump The company has increased its focus on primary care since the second quarter of 2025, aiming to address lung nodules managed by general practitioners. Hutton said roughly half of lung nodules are managed by general practitioners. According to Hutton, demand for Nodify testing in smaller lung nodules accelerated after publication of a validation study in March. The study, which the company described as the largest lung-nodule biomarker validation study to date, found that Nodify CDT could detect cancer in nodules as small as 4 millimeters while maintaining a low false-positive rate. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Hutton said clinicians who begin using Nodify CDT for smaller nodules have subsequently expanded use of both Nodify CDT and Nodify XL2 for patients with larger nodules. He said the pattern has appeared across customer segments, including primary care and pulmonology. During the question-and-answer session, Cowie said primary care represented about 15% of total testing volume, consistent with the first quarter. Hutton said growth in the primary-care channel has been balanced between adding new ordering physicians and rising utilization among providers who began ordering several months earlier. Biodesix also highlighted data presented in May at the American Thoracic Society annual meeting. Hutton said presentations included real-world clinical and economic data, including an independent study that found an increase in stage-one lung cancer detection after implementation of a lung-nodule program that used Nodify Lung testing to guide clinical decisions. Two additional presentations addressed the use of Nodify Lung testing in overcoming limitations associated with PET scans for nodule evaluation, according to Hutton. The company had an average of 104 sales representatives in the field during the quarter and plans to finish 2026 with about 120 representatives. Hutton said the company expects to maintain a hiring cadence of roughly six to eight sales professionals per quarter, prioritizing a measured approach to commercial expansion while maintaining a focus on profitability. Most of the company’s new sales hires so far this year have been focused on primary care, though Hutton said Biodesix will continue to hire opportunistically based on market development and referral-network activity from pulmonologists. Management also said it expects additional clinical publications and presentations during the year. Hutton pointed to the American College of Chest Physicians’ CHEST meeting, scheduled for late October and early November, as a potential venue for further posters, presentations and publications. The company also plans to provide a development partner and research-and-development update around the November AMP meeting. Gross margin reached 82% in the second quarter, improving 200 basis points from a year earlier and marking Biodesix’s fifth consecutive quarter with gross margins at or above 80%. Cowie said the improvement reflected growth in lung diagnostic testing, higher average revenue per test compared with the prior year and lower average cost per test. The company said improvement in average revenue per test was primarily driven by additional payer coverage and revenue-cycle-management progress, continuing a trend that began in the third quarter of 2025. Cowie said the quarter-over-quarter difference in average revenue per test reflected the mix of Nodify CDT and Nodify XL2 volumes, while average revenue for each individual test improved from the first quarter. Operating expenses excluding direct costs and expenses increased 7% year over year to $27.4 million, compared with the 34% increase in total revenue. The increase was driven by an 8% rise in sales, marketing and general administrative expenses related to commercial expansion, partly offset by a 4% reduction in research and development costs. Net loss narrowed 37% from the prior-year period to $7.3 million. Adjusted EBITDA loss improved 56% year over year to $3.2 million. Cowie said Biodesix expects operating expenses to remain relatively steady through the rest of the year, with moderate increases tied to planned sales-team growth. She said the company is working with partners to advance pipeline products without what she described as “massive investments.” Biodesix ended the quarter with $30 million in unrestricted cash and cash equivalents, up 17% from the first quarter. The balance included $6.5 million in net proceeds raised through the company’s at-the-market program during the quarter. Excluding those ATM proceeds, net cash used during the quarter was $2.1 million, compared with $6.9 million in the second quarter of 2025. Cowie said management believes its existing cash, expected revenue growth and operating leverage provide sufficient liquidity to execute its growth strategy. The company reiterated its previously raised full-year 2026 revenue outlook of $108 million to $114 million. Management said the outlook assumes continued sales-force productivity gains, stable average revenue per test from payers, volume growth in pulmonology and primary care, and ongoing evidence generation. The company also noted that development-services revenue can be seasonal and variable because of project timing and revenue recognition. Biodesix, Inc is a commercial-stage molecular diagnostics company headquartered in Boulder, Colorado, that develops and delivers blood-based tests to improve the diagnosis and management of lung diseases, including lung cancer. The company integrates advanced proteomic and, more recently, genomic technologies to offer noninvasive testing solutions designed to guide clinical decision-making. Biodesix operates a CLIA-certified and CAP-accredited laboratory, allowing it to process patient samples at scale and maintain rigorous quality standards. The company's flagship product, VeriStrat®, is a proteomic test that stratifies patients with non-small cell lung cancer into groups more likely to benefit from specific therapies. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Biodesix Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Delivered $26.9 million in revenue, representing 34% growth in Q2 2026; Achieved 82% gross margin in Q2 2026; Maintained FY 2026 Revenue Guidance of $108-114 million, mid-point reflects 25% growth; Conference Call and Webcast Today at 4:30 p.m. ET LOUISVILLE, Colo., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Biodesix, Inc. (Nasdaq: BDSX), a leading diagnostic solutions company, today announced its financial and operating results for the second quarter ended June 30, 2026. “Biodesix delivered another strong quarter, highlighted by 34% revenue growth, 42% growth in Diagnostic Testing revenue, and gross margins, which increased to 82%,” said Scott Hutton, Chief Executive Officer. “Our performance reflects continued adoption of our blood-based lung diagnostics, expanding reimbursement coverage, and improving sales force productivity. Diagnostic testing volumes grew 38% year-over-year while operating expenses excluding direct costs increased only 7%, demonstrating meaningful operating leverage and a 56% improvement in Adjusted EBITDA.” Hutton continued, “In delivering against our mission to conquer lung cancer and other diseases, we believe our combination of clinical evidence, reimbursement strength, commercial execution, and disciplined expense management positions Biodesix to continue delivering sustainable growth while advancing toward profitability.” Business and Financial Highlights for the Second Quarter 2026 Diagnostic Testing revenue was $25.4 million in the second quarter, representing 42% growth, driven by a 38% increase in test volumes to 20,900 and higher average revenue per test year-over-year. The improvement in average revenue per test was primarily attributable to expanded payer coverage and continued improvements to revenue cycle management; Development Services revenue of $1.5 million in the second quarter 2026, as compared to $2.1 million in the prior year period reflecting timing of project completion and revenue recognition. The Development Services pipeline is strong and supports expectations for growth over the remainder of 2026; Total revenue of $26.9 million in the second quarter 2026, an increase of 34% over the respective prior year comparable period; Gross margin was 82% in the second quarter, a 200-basis point improvement over the respective prior year comparable period. The Company continues to deliver strong gross margins driven by higher Diagnostic Testing volumes, improved average revenue per test, and continued optimization of laboratory workflows, resulting in a lower cost per test; Operating expenses (excluding direct costs and expenses) of $27.4 million for the second quarter 2026, an increase of 7% over the respective prior year comparable period. The Company expects continued operating leverage as our expanded sales team gains experience, increases productivity, and delivers sustained performance; Net loss of $7.3 million for the second quarter 2026, an improvement of 37% over the respective prior year comparable period; Adjusted EBITDA was a loss of $3.2 million in the second quarter 2026, a 56% improvement over the respective prior year comparable period; Cash and cash equivalents of $30.0 million, an increase of 17% over the period ending March 31, 2026. Change in cash included $6.5 million of net proceeds from our at-the-market program. We believe current cash, expected growth in revenue, and ongoing operational leverage provide sufficient liquidity to execute our growth strategy. 2026 Financial Outlook For full year 2026, the Company expects total revenue of $108–114 million, with the midpoint representing approximately 25% growth over 2025. Biodesix expects continued progress toward achieving and maintaining Adjusted EBITDA profitability, driven by increasing sales productivity, expanded clinical evidence supporting the Nodify Lung tests, growth in the Development Services pipeline, and demonstrated operating leverage. Conference call and webcast information Listeners can register for the webcast via this link. Analysts who wish to participate in the question-and-answer session should use this link. A replay of the webcast will be available via the Company’s investor website approximately two hours after the call’s conclusion. Participants are advised to join 15 minutes prior to the start time. For a full list of Biodesix press releases and webinars, please visit biodesix.com. About Biodesix Biodesix is a leading diagnostic solutions company, driven to improve clinical care and outcomes for patients. Biodesix Diagnostic Tests, including the Nodify Lung® Nodule Risk Assessment test and the IQLung® Cancer Treatment Guidance test, support clinical decisions to expedite personalized care and improve outcomes for patients with lung disease. Biodesix Development Services enable the world’s leading biopharmaceutical, life sciences, and research institutions with scientific, technological, and operational capabilities that fuel the development of diagnostic tests, tools, and therapeutics. For more information, visit biodesix.com. Trademarks: Biodesix, Biodesix Logo, Nodify Lung, and IQLung are trademarks or registered trademarks of Biodesix, Inc. Use of Non-GAAP Financial Measure Biodesix reported results are presented in accordance with generally accepted accounting principles in the United States (GAAP). Biodesix also presents Adjusted EBITDA, a non-GAAP financial measure, in this press release. Adjusted EBITDA is a key performance measure that our management uses to assess our financial performance, for internal planning and forecasting purposes, and as an additional measure of our performance for the purposes of business decision-making, including managing expenditures. We believe that this non-GAAP financial measure is useful to investors and other interested parties in analyzing our financial performance because it provides a comparable overview of our operations across historical periods, and helps our management identify additional trends in our financial results that may not be shown solely by period-to-period comparisons of Net loss or Loss from operations. In addition, we believe that providing Adjusted EBITDA, together with a reconciliation of Net loss to Adjusted EBITDA, helps investors make comparisons between our Company and other companies that may have different capital structures, different tax rates, and/or different forms of employee compensation. Our management recognizes that Adjusted EBITDA has inherent limitations because of the excluded items and may not be directly comparable to similarly titled metrics used by other companies. We calculate Adjusted EBITDA as Net loss adjusted to exclude interest, income tax expense, if any, depreciation and amortization, share-based compensation expense, loss on debt extinguishments, net, change in fair value of warrant liabilities, net, other income, net, and other non-recurring items. Non-recurring items are excluded as they are not representative of our underlying operating performance. Adjusted EBITDA should be viewed as a measure of operating performance that is a supplement to, and not a substitute for Loss from operations, Net loss, and other GAAP measures. Note Regarding Forward-Looking Statements This press release may contain forward-looking statements that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “plan,” “expect,” “predict,” “potential,” “opportunity,” “goals,” or “should,” and similar expressions are intended to identify forward-looking statements. Such statements are based on management’s current expectations and involve risks and uncertainties. Actual results and performance could differ materially from those projected in the forward-looking statements as a result of many factors. Biodesix has based these forward-looking statements largely on its current expectations and projections about future events and trends. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions. Forward-looking statements may include information concerning possible or assumed future results of operations, including descriptions of our revenues, profitability, outlook, and overall business strategy, the timing and assumptions regarding collection of revenues on projections, availability of funds and future capital, the anticipated impact and benefits of new clinical data, reimbursement coverage and research partnerships, the impact of enhanced U.S. tariffs, import/export restrictions or other trade barriers on the company and its operations and financial performance. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Other factors that could cause actual results to differ materially from those contemplated in this press release can be found in the Risk Factors section of our most recent Annual Report on Form 10-K, filed February 26, 2026, or subsequent Quarterly Reports on Form 10-Q during 2026, as applicable. Biodesix undertakes no obligation to revise or publicly release the results of any revision to such forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement. Contacts:Media:Natalie St. [email protected](720) 925-9285 Investors:Chris [email protected](339) 970-2843

LOUISVILLE, Colo., July 22, 2026 (GLOBE NEWSWIRE) -- Biodesix, Inc. (Nasdaq: BDSX), a leading diagnostic solutions company, today announced that it will release financial results for the second quarter ended June 30, 2026 after the close of trading on Wednesday, August 5. Biodesix management will host a conference call and webcast to discuss its financial results and provide a general business update at 4:30 p.m. Eastern Time on the same day. Listeners can register for the webcast via this link. Analysts who wish to participate in the question and answer session should use this link. A replay of the webcast will be available via the company’s investor website approximately two hours after the call’s conclusion. Participants are advised to join 15 minutes prior to the start time. About Biodesix: Biodesix is a leading diagnostic solutions company, driven to improve clinical care and outcomes for patients. Biodesix Diagnostic Tests, including Nodify Lung® Nodule Risk Assessment and IQLung® Cancer Treatment Guidance, support clinical decisions to expedite personalized care and improve outcomes for patients with lung disease. Biodesix Development Services enable the world’s leading biopharmaceutical, life sciences, and research institutions with scientific, technological, and operational capabilities that fuel the development of diagnostic tests, tools, and therapeutics. For more information, visit biodesix.com. Note Regarding Forward-Looking Statements This press release may contain forward-looking statements that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “plan,” “expect,” “predict,” “potential,” “opportunity,” “goals,” or “should,” and similar expressions are intended to identify forward-looking statements. Such statements are based on management’s current expectations and involve risks and uncertainties. Actual results and performance could differ materially from those projected in the forward-looking statements as a result of many factors. Biodesix has based these forward-looking statements largely on its current expectations and projections about future events and trends. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions. Forward-looking statements may include information concerning possible or assumed future results of operations, including descriptions of our revenues, profitability, outlook, and overall business strategy, the timing and assumptions regarding collection of revenues on projections, availability of funds and future capital, the anticipated impact and benefits of new clinical data, reimbursement coverage and research partnerships, the impact of enhanced U.S. tariffs, import/export restrictions or other trade barriers on the company and its operations and financial performance. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Other factors that could cause actual results to differ materially from those contemplated in this press release can be found in the Risk Factors section of our most recent Annual Report on Form 10-K, filed February 26, 2026, or subsequent Quarterly Reports on Form 10-Q during 2026, as applicable. Biodesix undertakes no obligation to revise or publicly release the results of any revision to such forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement. Biodesix Contacts:Media:Natalie St. Denis, Director Corporate [email protected](720) 925-9285 Investors:Chris Brinzey, Partner, [email protected](339) 970-2843

Image source: The Motley Fool. May 4, 2026 at 4:30 p.m. ET Chief Executive Officer — Scott Hutton Chief Financial Officer — Robin Harper Cowie Need a quote from a Motley Fool analyst? Email [email protected] Scott Hutton: Thank you, Christopher F. Brinzey, and thank you all for joining today. Biodesix, Inc. delivered an exceptional start to 2026 with first quarter results that demonstrate continued momentum across our commercial, operational, and strategic priorities. Revenue growth accelerated, margins expanded, and we continued to demonstrate operating leverage as we progress towards profitability. As a reminder, our focus in 2026 centers on three objectives: driving top-line growth, improving operational efficiency and leverage, and advancing our pipeline to support long-term expansion. In the first quarter, we made meaningful progress across all three objectives. Total revenue for the quarter was $25.6 million, representing 42% growth year over year, accompanied by strong operating discipline and execution. Starting with our diagnostic testing business, revenue grew 37%, driven by accelerating test volume growth and improved ASPs over 2025. Total test volumes grew 29% year over year due to increased adoption from both pulmonology and primary care, with test volumes from primary care now representing 15% of total tests delivered in the quarter. In support of both healthcare provider and payer adoption, we continue to present and publish clinical data for our on-market test. Specifically, Notify Lung testing is used by pulmonologists and primary care providers to triage patients by risk of lung cancer, helping determine who needs intervention versus surveillance, and allowing higher-risk patients to be prioritized for prompt follow-up. In February, we announced the publication of the largest lung nodule biomarker clinical validation study that included over 1.1 thousand patients leveraging our ongoing real-world evidence study, Clarify. The study demonstrated consistently strong NotifyCDT test performance with high specificity, or low false positive rates, regardless of nodule size or other patient risk factors. Recent data on patients without biomarker testing reported that 40% of malignant nodules had progressed in tumor size between the time of the first detection and the time of initiation of definitive treatment, underscoring the urgent clinical need for tests like Notify Lung to expedite diagnosis and enable earlier intervention when outcomes are most favorable for the patient. Turning to development services, revenue in the quarter nearly doubled year over year. This reflects execution on contracted programs, as well as continued success securing new agreements, reinforcing the strength and differentiation of our development platform. The depth and breadth of our offering was recently highlighted with several presentations at AACR in April. It is especially exciting to see our multi-omic technologies, combined with advanced data informatics, translating into meaningful clinical impact on our pipeline product concepts and fueling strong interest in our development services offering. Additional data on our pipeline products, including our genomic and proteomic MRD and ROR test, the Veriskrat test clinical utility in prostate cancer, and our new AI-based digital diagnostic test will be shared at upcoming conferences and events throughout the course of the year. Gross margin for the quarter was 84% on a GAAP basis and 82% excluding a one-time sales and use tax recovery, representing a 300 basis point improvement year over year. Margin expansion continues to be driven by scale in diagnostic testing, improved pricing realization, and ongoing workflow optimization in the laboratory resulting in decreasing cost per test. We are encouraged by the consistency of these trends and strong revenue growth and operating leverage, and believe they reinforce the scalability of our model. As a result of the performance across both diagnostic testing and development services in Q1, and our continued progress towards profitability, we are raising our full-year 2026 revenue outlook. With that, let me turn it over to Robin to review our financial performance. Robin? Robin Harper Cowie: Thanks, Scott, and good afternoon, everyone. Total revenue for the first quarter was $25.6 million, representing a 42% increase over the prior-year period. Diagnostic testing revenue was $22.3 million, an increase of 37% year over year. The increase in lung diagnostics revenue was driven by growth in volumes and higher average revenue per test. Test volumes were approximately 17.8 thousand, an increase of 29% year over year, supported by an average of 100 sales representatives in the field in the quarter, and we expect to continue our commercial expansion, as described in prior calls, at a cadence of about six representatives per quarter through 2026. Improvements in average revenue per test over the prior year are primarily driven by additional payer coverage and improvements to revenue cycle management, continuing a trend that began in 2025. We believe recent improvements in average revenue per test reflect durable changes in payer coverage and revenue cycle execution rather than discrete or one-time effects. Development services revenue for the first quarter was $3.3 million, an increase of 99% year over year, driven by delivery of our contracted program and the addition of new development services agreements. We finished the quarter with approximately $10.4 million in contracted business, following accelerated revenue conversion velocity in the quarter. We continue to see strong demand and visibility across our development services pipeline and do not expect the timing of these completions to impact our full-year expectations. Gross margin for the first quarter was 84%, which included a one-time recovery of 400 thousand related to previously paid sales and use taxes. Excluding the one-time recovery, gross margins were 82%, representing a 300 basis point improvement over the prior-year period. Year-over-year margin expansion was driven by growth in lung diagnostic testing, improvements in average revenue per test, and decreases in average cost per test. Gross margins continue to reflect Biodesix, Inc.’s strong operational efficiency and execution. Operating expenses, excluding direct costs and expenses, were $27.6 million, an increase of 18% year over year supporting the 42% revenue growth delivered during the quarter. The increase in operating expenses is driven by a 19% increase in sales, marketing, and general administrative expenses due to our planned commercial organization expansion. The company expects continued operating leverage as our expanded sales team advances along the productivity curve and converts growing experience into sustained performance. R&D expense for the quarter was $3.3 million, representing a 14% increase over the prior-year period. R&D investment reflects continued clinical studies supporting adoption of our lung diagnostic tests and progress across our pipeline. Net loss for the quarter was $7.8 million, a 30% improvement compared to the prior-year period. Adjusted EBITDA, which excludes non-cash and other one-time items, was a loss of $4.1 million, representing a 35% improvement over 2025. We also strengthened our balance sheet, ending the quarter with $25.6 million in unrestricted cash and cash equivalents, a 35% increase compared to the fourth quarter, providing solid runway to support our growth initiatives. The change in cash balance includes $16.8 million of at-the-market net proceeds raised during the quarter, partially offset by planned cash outflows that occur annually during the first quarter. Looking ahead to the remainder of 2026, and in addition to our planned headcount expansion, we expect sales productivity to continue to improve as our various sales cohorts gain experience and tenure, which remains a key driver of operating leverage through 2026. Following the strong first quarter performance and improved visibility into demand and execution, we are raising our full-year revenue guidance to $108 million to $114 million. The increased midpoint represents 25% growth over 2025, which reflects the strength of the first quarter while remaining consistent with our full-year planning assumptions. We also expect continued progress towards sustained adjusted EBITDA profitability, driven by increasing sales productivity, expanded clinical evidence supporting the Notify Lung test, growth in the development services pipeline, and demonstrated operating leverage. With that, I will turn it back to Scott for some closing thoughts before we begin the Q&A. Thank you, Scott. Scott Hutton: In April, Biodesix, Inc. was recognized as a top workplace for the third consecutive year. This recognition reflects who we are at our core: a team built on trust, collaboration, growth, and shared ownership of results. Our culture here at Biodesix, Inc. is not aspirational; it is operational. Our first quarter performance reflects that discipline and reinforces our confidence in the scalability and durability of our business model. We continue to see significant opportunities ahead as adoption expands, clinical evidence grows, and our commercial organization continues to mature. We remain focused on executing with discipline, improving capital efficiency, and delivering meaningful value to patients, providers, partners, and shareholders. In closing, I want to thank the entire Biodesix team for their continued focus, discipline, and commitment to our mission and culture. We will now open the call for questions. Operator, let us start the Q&A session. Operator: At this time, I would like to remind everyone, in order to ask a question, simply press star 1 on your telephone keypad. Our first question is from the line of Andrew Frederick Brackmann with William Blair. Please go ahead. Andrew Frederick Brackmann: Hi, Scott. Hi, Robin. Good afternoon. Thanks for taking the questions. I wanted to focus on the commercial team. I think you called out about 15% of volumes were coming from the primary care channel there, so clearly something is working. I guess as you think about some of the learnings, the successes, and some territories that are driving a lot of that volume growth, how transferable are those to other territories? And where are we in the process of amplifying these learnings across the entire salesforce? Scott Hutton: Thanks, Andrew. Great question. It has been about three quarters since we brought on that first sales cohort focused on primary care physicians, so you nailed it. We continue to learn, but we had some immediate learnings that we have been able to apply. We had our national sales meeting in February, which is a great opportunity for us to share best practices and to roll that out. What we have learned is that starting with the pulmonologist, building a really strong relationship, and allowing them to help us with introductions into their referral network really aids in a smooth transition. It allows the pulmonologist to track those patients through that referral process, and we are continuing to see that growth across the United States. We really started more in the Northeast when we first had our initial hires, and we are seeing that transition and progress more westward. So it has been transferable. We feel good about the progress we have made. I think we knew with a high level of confidence, based upon our early pilot experience, that this was the right decision, and this confirms that we have made the right decision. We still have a lot of opportunity to grow, and I will just remind everybody, what it really did was open up the addressable market that was serviceable to us. We knew that about 49% of those patients with incidentally found nodules are stuck in primary care, so we think that we have begun tapping into that, and we are really confident that over time it will start to show that we are getting to patients earlier. We know in this scenario earlier detection and diagnosis is going to lead to better outcomes. Andrew Frederick Brackmann: Perfect, appreciate all that color. And then just on the evidence front, you called out the publication of the validation study in February. Can you talk about what impact it has had on the field? In particular, you mentioned across that study there are low false positives regardless of the nodule size. Are you seeing an increase in the use of Notify in those smaller nodules? And how big of an opportunity is that for you in the grand scheme? Scott Hutton: Thanks. For us, it really is about data development. I think there is a continued opportunity for us to educate and empower pulmonologists and primary care physicians to utilize Notify testing. The more we can publish and present, it gives us opportunities to put new data out in front of healthcare professionals, and that is what this did. You nailed it. We know that not only do physicians want to get to these patients earlier, but they want to be bolder than they have been in the past. Something has to change because we have not seen a significant change in screen detection over the last 10 to 15 years. We are seeing an increase in addressing smaller nodules, but that goes hand in hand with the advent of robotic bronchoscopies, where interventional pulmonologists feel more confident that they can get to some of the smaller nodules that they would not have been able to get to easily and successfully in the past. The time was right, we are excited to get that data out, and I would add that whenever we see strong performance in a real-world environment, it really starts to show that these tests are durable, that our growth is sustainable, and that we are going to continue to have a significant impact with the healthcare professionals that we serve. Andrew Frederick Brackmann: Great. I will keep it at two. Thanks, guys. Scott Hutton: Thanks, Andrew. Operator: Our next question comes from the line of Thomas Flaten with Lake Street. Please go ahead. Thomas Flaten: Hey, Scott and Robin. Just a question to follow up on the PCPs. I am curious what you are hearing anecdotally from the PCPs about their level of comfort at retaining these patients with this test result in hand. Do they feel comfortable with the referral networks? I get that having it come from the pulmonologist is probably helpful, but anything you can share on their experience that they have had? I know it has only been three quarters, but I am just curious if there is anything you can share. Scott Hutton: Yeah, thanks, Thomas. It is a great question. Speaking on behalf of the healthcare professionals in the primary care setting, one of the things that we anticipated and we have confirmed is they have an abundance of patients that are eligible for Notify testing. They still have questions as to how to interpret those test results and defining who they refer on versus who they keep to monitor or surveil. What we have seen is that through our brochures and materials, and sharing of publications and data, they have become very comfortable with how those test results can better inform what they do with those patients, building that confidence. One of the things we have seen in primary care is they are very comfortable with diagnostic testing. It is what they do. They understand it. They have phlebotomy services on-site, and from a workflow implementation standpoint, we have actually found primary care to be really accessible and receptive to Notify testing. We are excited to continue to help educate them. One of the things that we really focus on is ensuring that when those patients are referred on, that they stay in contact with that pulmonologist. That primary care physician will always be that patient's primary care physician, so they, over time, will gain additional confidence as they see what ends up happening for those patients. Hopefully, we are able to see a stage shift, and we are starting to see patients live longer, which will build even more confidence within the primary care community. Thomas Flaten: Sticking with this theme, you called out what the PCPs are going to do with the incidentally identified nodules, but you did not mention the screening nodules. I am curious what you are hearing from the PCPs—not necessarily that having access to your test is going to help them get more patients into screening—but have they shared anything anecdotal about pushing the high-risk patients into the screening programs, by that I mean low-dose CT? And more broadly, have you seen any change in the trends in the number of patients getting pushed into that screening protocol? Scott Hutton: Yeah, it has been one of the challenges regardless of whether you talk to pulmonology or primary care physicians. Ten years ago, lung cancer screening compliance for those screen-eligible patients was low to mid-single digits. We have seen improvements in the last five to ten years, but most of the reports out there will still state that it is less than 15% to 20% of the screen-eligible patient population. We have come a long way, and we still have significant room to grow and improve. One of the beauties of Notify testing is our test works not only in incidentally found nodules but also in screen detection. As we see more support and compliance with screening programs, it will only increase this opportunity for us. We have seen that a little bit, but we are still not there. I do think the advent of blood-based screening tests in lung cancer will help, and we think this will benefit Notify testing and the Biodesix, Inc. team. Thomas Flaten: Got it. Appreciate that. Thanks, guys. Scott Hutton: Thanks, Thomas. Operator: Your next question comes from the line of John Wilkin with Craig-Hallum. Please go ahead. John Wilkin: Hi, guys. Thanks for taking the questions. Just a couple questions on the guide. Can you break out how much is baked into the guidance for development services versus testing revenue? I know Q1 came in really strong, and I am trying to get a sense of what you are expecting with that business for the remainder of the year. Robin Harper Cowie: Yeah, absolutely. We are anticipating that development services revenues for the full year remain consistent with where we had expected them to be. We had a little bit of a pull-forward in the quarter, so we were able to recognize more revenue earlier in the year. We expect the services business to remain consistent with those expectations, and the majority of the increase is included in the lung diagnostics revenues. John Wilkin: Perfect, that is super helpful. And then on the lung side, how much, if any, additional ASP expansion are you factoring in for the remainder of the year? Is that something we should expect to see continued progress on, or is growth embedded in the guide more skewed towards the volume side? Robin Harper Cowie: Growth in the guide is absolutely weighted towards volume. We do anticipate that we will see a little bit better ASP versus the first quarter. I anticipate somewhere like what we saw mid-year last year; fourth quarter was skewed higher due to the one-time collections that we had in that quarter. While we anticipate a little improvement in ASP, we are very pleased with where we are right now and the improvements made both through coverage contracting and revenue cycle management. Volumes should be the growth driver. John Wilkin: Perfect. That is all for me. Thanks so much. Scott Hutton: Thanks, John. Operator: Your next question comes from the line of Kyle Mikson with Canaccord Genuity. Please go ahead. Kyle Mikson: Thanks for the questions. Congrats on the quarter. It looks like you did better on the pharma front this quarter. Could you talk about the pipeline funnel there? What is most attractive within your portfolio relative to prior years that is helping you succeed on that front? Scott Hutton: Yeah, Kyle, great question. This was more of a cadence or timing scenario. We had a number of retro samples that came in earlier than we anticipated and forecasted. We were able to pull a couple of those contracts forward, so we do not see it changing our long-term performance. As a reminder, this has historically been about 8% to 10% of our total annual revenue. We continue to see great progress and momentum within the biopharma services and development services front, and you may have noticed that we exited the quarter with $10.4 million in contracted dollars to be recognized over the coming months and quarters. We have stayed above that $10 million mark for quite some time now, so that gives us a lot of confidence about what the future looks like. It really is not a shift or a change; this momentum has been building over the last few years. It is interest across our portfolio on the genomic side and the proteomic side—being a company that is focused on multi-omic solutions resonates with our biopharma services partners. Our team continues to do a great job on that front. We are excited about the rest of the year. We just finished AACR, and we have ASCO upcoming, and those two meetings usually set us up for a strong second half. Kyle Mikson: Perfect. You had a great top-line beat, and margin has been really solid the past few quarters. Could you specify how you are going to reinvest those dollars—sales force, new products, new markets? How do you think about that? And with respect to EBITDA positivity going forward, how does that affect that pathway? Robin Harper Cowie: We are obviously very pleased with the gross margins and the continued improvements that we have seen over the last several quarters. The team works very hard to not only improve our ASPs, but also gain real efficiencies and productivity improvements within our operations to drive down the average cost per test. The dollars that are coming in through those gross margins go to support the business, and our main focus is our commercial expansion, growing the top-line revenue, and then getting to sustained adjusted EBITDA positivity and cash flow positivity. So the dollars really are going towards commercial, and we are still on track. We are executing to plan and on the path to profitability. Kyle Mikson: On that note, anything additional to pipeline investment? Salesforce expansion is kind of an obvious one that you are going to be consistent with—several reps per quarter—but anything on the pipeline going forward, maybe partnerships that you can accelerate with this extra money? Scott Hutton: Yeah. We hope so. As we look toward the remainder of 2026, we think we have great opportunities to highlight progress being made, investments, and the return on those investments, and hopefully additional partnership and collaboration opportunities. We will look forward to sharing those when we get there. For us, it really is about controlling what we can control. We have worked long and hard to build what we believe is the strongest and best pulmonology-focused sales team in the market, and we want to continue to give them an opportunity to flex and demonstrate that we can continue to build this market. Last year, at the beginning of the fourth quarter, we had an R&D day. We will look forward to providing more on our R&D and development services front in the second half, but anything that happens between now and then, we are going to share that broadly and celebrate it. Operator: Our next question comes from the line of Dan Brennan with TD Cowen. Please go ahead. Analyst: Hi, Pradeep Ambrose on behalf of Dan Brennan. Can you quantify how much quarter one revenue was impacted by weather versus typical seasonality? Robin Harper Cowie: Yeah, it is a great question. Like everybody else, particularly those in the areas of the country that were impacted by the series of storms, we were as well. It was a pretty significant impact to us in the late January, early February timeframe as the FedEx hubs across the country were impacted. But we were very pleased with how the team responded and clearly finished the quarter strong to end with a nice strong beat for the quarter. Analyst: Awesome. Thank you. Operator: With no further questions in queue, this does conclude today's conference call. You may now disconnect. Before you buy stock in Biodesix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Biodesix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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Biodesix reported Q1 revenue of $25.6 million, up 42% year-over-year, and raised full-year 2026 guidance to $108 million to $114 million, driven by diagnostic testing strength (diagnostic revenue $22.3 million and test volumes of ~17,800, up 29%). Profitability metrics improved as gross margin expanded to 84% GAAP (82% ex one-time recovery, +300 bps YoY), net loss narrowed to $7.8 million, and adjusted EBITDA loss improved to $4.1 million, with management planning to reinvest margin gains into commercial expansion to reach sustained EBITDA and cash-flow positivity. Development services nearly doubled to $3.3 million (up 99%) with about $10.4 million in contracted business, while clinical data—including the >1,100-patient CLARIFY study—supports broader Nodify adoption, growth in smaller nodules, and expansion into primary care. Interested in Biodesix, Inc.? Here are five stocks we like better. Biodesix (NASDAQ:BDSX) reported first-quarter 2026 results that company leadership said reflected accelerating revenue growth, expanding margins, and continued operating leverage as it works toward profitability. Chief Executive Officer Scott Hutton said Biodesix delivered “an exceptional start to 2026,” citing progress against three stated objectives for the year: driving top-line growth, improving operational efficiency and leverage, and advancing its pipeline. Total revenue in the quarter was $25.6 million, up 42% year-over-year, which Hutton attributed to momentum in both diagnostic testing and development services. → Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook Chief Financial Officer Robin Harper Cowie said Biodesix is raising its full-year 2026 revenue guidance to $108 million to $114 million. She said the higher outlook reflects “strong first quarter performance and improved visibility into demand and execution,” while remaining “consistent with our full year planning assumptions.” Diagnostic testing revenue was $22.3 million, up 37% from the prior-year period. Hutton said the growth was driven by accelerating test volumes and improved average selling prices compared with the first quarter of 2025. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches Total test volumes were approximately 17,800, up 29% year-over-year. Hutton said adoption increased among both pulmonology and primary care providers, and noted that primary care test volumes represented 15% of total tests delivered in the quarter. Cowie said average revenue per test improved primarily due to additional payer coverage and stronger revenue cycle management, continuing a trend that began in the third quarter of 2025. She added that the company views the improvements as “durable changes” rather than one-time benefits. → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries Asked about growth in primary care, Hutton said the company has been building on learnings from roughly three quarters of experience with a sales cohort focused on primary care physicians. He said a key approach has been “starting with the pulmonologist” and using those relationships to gain introductions into referral networks. Hutton said the company initially concentrated those efforts in the Northeast and has been expanding westward, adding that the approach has been “transferable.” Hutton also framed the primary care channel as an expansion of Biodesix’s addressable market, saying the company believes about 49% of patients with incidentally found nodules are in primary care. He said the company expects that reaching those patients earlier can support earlier detection and diagnosis. Hutton highlighted ongoing publication and presentation of clinical data to support provider and payer adoption of Nodify Lung Testing, which he described as helping triage patients by risk of lung cancer to guide intervention versus surveillance. In February, Biodesix announced publication of what Hutton called the largest lung nodule biomarker clinical validation study, including more than 1,100 patients, using its real-world evidence study, CLARIFY. According to Hutton, the study showed consistently strong Nodify CDT performance with high specificity—low false positive rates—regardless of nodule size or other patient risk factors. He also pointed to other data, saying that among patients without biomarker testing, 40% of malignant nodules had progressed in tumor size between first detection and the start of definitive treatment, which he said underscores a need to expedite diagnosis. In response to a question about whether the data is driving use in smaller nodules, Hutton said the company is seeing an increase in smaller nodules. He linked that trend in part to the “advent of robotic bronchoscopies,” which he said has increased confidence among interventional pulmonologists in reaching smaller nodules than in prior years. On lung cancer screening more broadly, Hutton said screening compliance has historically been low and remains a challenge, citing reports that place it at less than 15% to 20% of the screen-eligible population. He said Nodify Testing can be used in both incidentally found nodules and screen-detected nodules, and added that increased screening compliance would expand the opportunity. Hutton also said he expects blood-based screening tests in lung cancer to help and believes it would benefit Nodify Testing and Biodesix. Development services revenue was $3.3 million, up 99% year-over-year. Hutton said the increase reflected execution on contracted programs and continued success in securing new agreements. Cowie said the company ended the quarter with about $10.4 million in contracted business following “accelerated revenue conversion velocity” during the quarter and added that Biodesix continues to see strong demand and visibility in its development services pipeline. When asked about the revenue outlook mix, Cowie said full-year expectations for development services remained consistent with prior assumptions, with some revenue pulled forward into the first quarter. She said “the majority of the increase” in the higher revenue guidance is embedded in lung diagnostics. Asked about biopharma-related revenue timing, Hutton said the quarter benefited from a “cadence or timing scenario” in which retrospective samples arrived earlier than forecast, allowing some contract work to be pulled forward. He reiterated that development services has historically represented about 8% to 10% of annual revenue and said the company has maintained contracted dollars above the $10 million level for “quite some time,” supporting confidence in the outlook. He said interest from biopharma partners has been driven by Biodesix’s genomic and proteomic capabilities and its focus on “multi-omics solutions.” Gross margin was 84% on a GAAP basis, including a $0.4 million one-time recovery related to previously paid sales and use taxes. Excluding that recovery, gross margin was 82%, a 300-basis-point improvement year-over-year. Both Hutton and Cowie attributed margin expansion to scale in diagnostic testing, improved pricing realization, workflow optimization, and reductions in cost per test. Operating expenses (excluding direct costs and expenses) were $27.6 million, up 18% year-over-year. Cowie said the increase was driven by a 19% rise in sales, marketing, and general administrative expenses tied to planned commercial expansion. She said the company expects operating leverage as sales cohorts gain experience and improve productivity. Biodesix supported an average of 100 sales representatives in the field during the quarter and expects to continue commercial expansion at a cadence of about six representatives per quarter through 2026. Research and development expense was $3.3 million, up 14% year-over-year, reflecting clinical studies supporting adoption of lung diagnostic tests and pipeline work, according to Cowie. Net loss was $7.8 million, a 30% improvement from the prior-year period. Adjusted EBITDA was a loss of $4.1 million, improving 35% year-over-year. Biodesix ended the quarter with $25.6 million in unrestricted cash and cash equivalents, which Cowie said was a 35% increase from the fourth quarter. She said the change included $15.8 million in at-the-market net proceeds, partially offset by planned first-quarter annual cash outflows. In the Q&A, Cowie said the company intends to reinvest the benefits of margin improvement primarily into commercial expansion, with the goal of reaching “sustained adjusted EBITDA positivity and cash flow positivity.” Hutton said the company expects to provide more updates on research and development and development services in the second half of the year and will share partnership and collaboration developments as they occur. Cowie also noted that the company experienced “a pretty significant impact” from storms in late January and early February that disrupted FedEx hubs, but she said the team responded and “finished the quarter strong.” Biodesix, Inc is a commercial-stage molecular diagnostics company headquartered in Boulder, Colorado, that develops and delivers blood-based tests to improve the diagnosis and management of lung diseases, including lung cancer. The company integrates advanced proteomic and, more recently, genomic technologies to offer noninvasive testing solutions designed to guide clinical decision-making. Biodesix operates a CLIA-certified and CAP-accredited laboratory, allowing it to process patient samples at scale and maintain rigorous quality standards. The company's flagship product, VeriStrat®, is a proteomic test that stratifies patients with non-small cell lung cancer into groups more likely to benefit from specific therapies. The article "Biodesix Q1 Earnings Call Highlights" was originally published by MarketBeat.

Revenue growth of 42% was driven by accelerating test volumes in the diagnostic business and a near-doubling of development services revenue. Primary care adoption has become a significant growth lever, now representing 15% of total test volumes following a strategic sales force expansion into the channel. Diagnostic volume growth of 29% was supported by increased utilization from pulmonologists and their referral networks for lung nodule triage. Gross margin expansion to 82% (adjusted) reflects improved pricing realization, durable payer coverage gains, and laboratory workflow optimizations that lowered cost per test. Development services growth was fueled by accelerated revenue conversion of contracted programs and strong biopharma interest in multi-omic technologies. The company is leveraging a 'pulmonologist-first' strategy where specialists help facilitate introductions into primary care referral networks to capture incidentally found nodules earlier. Management attributes operational leverage to a maturing sales force and disciplined expense management while scaling the commercial organization. Full-year revenue guidance was raised to $108 million to $114 million, reflecting strong Q1 performance and improved visibility into diagnostic demand. Commercial expansion will continue at a steady cadence of approximately six new sales representatives per quarter throughout 2026. Management expects continued progress toward sustained adjusted EBITDA profitability, driven by increasing sales productivity as newer cohorts move up the experience curve. Future growth assumptions rely heavily on volume expansion rather than further significant ASP increases, though slight ASP improvements are anticipated versus Q1 levels. The company plans to share additional data on pipeline products, including genomic and proteomic MRD tests and AI-based digital diagnostics, at upcoming conferences. A one-time $400 thousand sales and use tax recovery positively impacted GAAP gross margins by approximately 200 basis points in the quarter. The company strengthened its balance sheet with $16.8 million in net proceeds from at-the-market (ATM) equity activity during the quarter. Inclement weather and logistics disruptions at FedEx hubs impacted late January and early February operations, though the company recovered strongly by quarter-end. Contracted business for development services ended the quarter at $10.4 million, providing high visibility for the remainder of the year despite accelerated Q1 conversions. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management confirmed that learnings from the initial Northeast cohort are successfully being applied as the primary care expansion moves westward. Success is driven by building pulmonologist relationships first, which then eases the transition into their specific primary care referral networks. The February publication showing high specificity regardless of nodule size is encouraging physicians to be 'bolder' in addressing smaller nodules. This trend aligns with the rise of robotic bronchoscopy, allowing interventional pulmonologists to act on smaller nodules with higher confidence. The guidance raise is primarily driven by the lung diagnostics business, as development services saw some revenue 'pull-forward' into Q1. While development services performed ahead of schedule in Q1, full-year expectations for that segment remain consistent with original plans. Primary care providers are comfortable with the diagnostic workflow but still require education on interpreting results for intervention versus surveillance. Management noted that primary care clinics are often more accessible for testing because they typically have on-site phlebotomy services already in place. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Image source: The Motley Fool. Thursday, Aug. 7, 2025 at 4:30 p.m. ET Chief Executive Officer — Scott Hutton Chief Financial Officer — Robin Harper Cowie Scott Hutton: Thank you, Chris, and thank you all for joining us today. At Biodesix, our mission is to transform patient care and improve outcomes through personalized diagnostics that are timely, accessible and address immediate clinical needs. We leverage a multimodal approach that includes genomics, proteomics and radiomics, combined with AI to discover, develop and commercialize innovative diagnostic tests for physicians, biopharmaceutical, life sciences and diagnostic companies to help improve patient care. In 2025, we are focused on 3 main goals: growing our top line revenue, improving operational effectiveness and efficiencies that will result in a positive adjusted EBITDA in the fourth quarter, and advancing our pipeline for future growth and expansion. In the second quarter, we made progress on all 3 by growing revenue by 12% year-over-year, improving our already strong gross margins by 150 basis points to 80%, and presenting clinical data on multiple pipeline products. Starting with the clinical offering in lung diagnostics, our major focus is on lung nodule management where nodules are either found incidentally when the patient has an image taken for another purpose or during low-dose CT screening for lung cancer. In our recent earnings calls, we've provided detailed information about our plan to expand our commercial sales efforts to better address gaps in care for patients with lung nodules. Throughout last year, a growing number of ordering pulmonologists provided important feedback, stating that ordering the Nodify XL2 and Nodify CDT test within their referral network would help optimize nodule management. If the tests are ordered earlier, those patients who are at higher risk of lung cancer should be referred on to the interventional pulmonologist, while lower-risk patients may remain with the primary care physicians for monitoring. This feedback was instrumental in the formation and implementation of our territory-based sales strategy to engage both pulmonologists and their referral network, including primary care. In the first quarter, we implemented this change and reconfigured our sales team to 49 territories. Each territory is anchored by a pulmonology sales rep with a mix of primary care sales reps and associate sales reps providing support in driving adoption in pulmonology and through their referral network. The specific combination of the sales roles in each territory is tailored to the local clinical need. We believe this approach allows us to directly address the nearly 50% of patients with lung nodules currently being managed by primary care physicians outside of pulmonology. In the second quarter, we completed training of our first full class of primary care sales reps who entered the field in late June. While the first full class has only been in the field for a few weeks, the response from primary care physicians has been encouraging with physicians recognizing the clinical need and the benefits of improved lung nodule risk assessment with Nodify testing. Prior to the initiation of our primary care pilot conducted in the second half of 2024, approximately 4% of Nodify tests were ordered from primary care. And as a result of our targeted efforts, that number has increased to approximately 9% in June. We're also working on ways to make it easier for clinicians to order and implement our test in their practices. In fact, one added benefit to our updated sales strategy is the availability of on-site blood draw capabilities within the primary care setting. This has historically been a challenge in pulmonology, where we frequently need to leverage our extensive mobile phlebotomy network to collect blood samples for testing. Once a patient leaves the physician's office, we face the all too common challenge of patient compliance to ensure the blood draw is completed. Completing the blood collection on-site before a patient leaves the facility results in 30% more tests delivered than if the patient leaves and needs to schedule a blood draw at another time. Ordering the test in the primary care setting and collecting the sample on-site helps to address this challenge. In addition, electronic ordering streamlines the process and ease of use for the physicians in their office. Customer retention in those offices who utilize digital ordering is 40% higher than those who do not. Since Nodify launch, we've expanded our digital test ordering capabilities through our Biodesix Physician Portal and a number of early EMR integrations. Through these efforts, our digital ordering has increased by 63% over last year. In the second quarter, we had an average of 74 sales reps in the field who delivered 15,100 total lung diagnostic tests and just under $1 million in annualized revenue per sales rep. Looking forward, we expect to have an average of 83 to 87 reps in the field in the third quarter and 93 to 97 reps in the fourth quarter, allowing us to drive patient access to cutting-edge diagnostic test regardless of where they're being managed. In addition to our commercial efforts, we continue to build the book of clinical evidence supporting the use of our Nodify test. In the second quarter, health economic and outcomes research data supporting our test were presented at ISPOR 2025 and an independent study from a clinical user of the test was presented at ATS 2025. We are also continuing to make progress with our CLARIFY study, which is a retrospective chart review evaluating the use of Nodify testing in real-world clinical practice. This trial is expecting to enroll approximately 4,000 patients. Since launch of the study in late October 2024, we've already accrued over 1,100 patients and anticipate releasing interim data from the study in the second half of this year. Finally, we are pleased to provide an update on our prospective randomized clinical study, ALTITUDE. The Data and Safety Monitoring Board met and determined that the study has enrolled a sufficient number of patients to reach statistical power and recommended that patient enrollment close. Patient enrollment closed in late July, and now the investigators continue the mandated 1-year patient follow-up to track outcomes. As the company is blinded to the data while the study is ongoing, we do not have any additional information on potential results, but are pleased to see that the sufficient number of patients have been enrolled as we move to the next phase of follow-up. We will provide additional information on the study as it becomes available. Moving to our pipeline. We had multiple presentations on our products in development. Our current pipeline consists of our combination proteomic and genomic MRD test, expanded indications for VeriStrat into several new tumor types with immunotherapy selection, and digital diagnostics. Multiple presentations on our MRD test were presented in April and May, including at AACR 2025. Our unique MRD test combines the proteomic information from our risk of recurrence test that can give insights into a patient's immune status, along with tumor-informed genomics that leverages the high sensitivity of Droplet Digital PCR for disease monitoring. At ASCO, new data was presented from the prospective registry study INSIGHT, demonstrating the potential of the VeriStrat test in helping to guide first-line immunotherapy treatment strategies in patients with non-small cell lung cancer and PD-L1 of greater than 50%. At ASMS, we shared data on the use of the VeriStrat test in identifying hormone treatment responses in men with metastatic castration-resistant prostate cancer. Finally, we will also share more data on the prognostic significance of VeriStrat in multiple MSI-high solid tumors in patients eligible for treatment with KEYTRUDA. These data will be presented by our collaborators at the upcoming ESMO meeting in the fall. Shifting to Development Services. We continue to see strong interest in our Development Services offering that leverages our multiomic approach and R&D expertise to help deliver insights that our biopharma, life science tools and diagnostic partners use to personalize patient care and help improve disease detection and treatment decisions across various disease types. In the second quarter, we delivered $2.1 million in revenue, growing 53% year-over-year. The funnel has also continued to grow, and we exited the quarter with $12.5 million under contract, representing a 54% increase over last year at this time and an all-time high. In early July, Thermo Fisher announced their new NGS assay received FDA approval as a companion diagnostic. The announcement recognized Biodesix as a key collaborator in the validation of the test. This partnership and approval are key examples of the strength of the Biodesix Development Services offering, including the test discovery and development, clinical trial testing and regulatory support for companion diagnostics. We look forward to providing further updates on additional progress with Thermo Fisher and this initiative. Overall, we are very encouraged by the continued strong year-over-year growth in this business and believe there is significant potential for upside. With that, let me turn it over to Robin to review our financial performance for the quarter. Robin? Robin Harper Cowie: Thanks, Scott, and good afternoon, everyone. Second quarter total revenue was $20.0 million, a 12% increase over the prior year. Lung diagnostic testing revenue in the second quarter of 2025 was $17.9 million from approximately 15,100 tests as compared to $16.5 million from approximately 13,900 tests for the second quarter of 2024, representing 9% growth in test volumes and representing 8% growth in revenue. Development Services revenue was $2.1 million in the quarter, representing 53% year-over-year growth. We ended the second quarter with $12.5 million under contract. And as Scott previously mentioned, this represents an all-time high. Our gross margin percentage in the second quarter of 2025 was 80%, up 150 basis points from 78.4% in the second quarter of '24. Despite increases in supply costs and existing macroeconomic uncertainty, we expect gross margins to remain in the upper 70s through the rest of the year. Overall operating expense, excluding direct costs and expenses, was $25.7 million in the second quarter, which was a 15% increase over the second quarter of 2024. Total SG&A was $22.4 million versus $19.7 million, a 14% increase, driven primarily by the addition of 13 more active sales representatives or 21% growth in the number of reps in the field and the planned expansion Scott has talked about in detail. As Scott noted before, we are continuing to scale the sales team and expect 83 to 87 active sales reps in the field in the third quarter and 93 to 97 in the field in the fourth quarter. R&D expense was $3.3 million versus $2.6 million or a $700,000 increase due to the investment in clinical studies to help advance adoption of our lung diagnostic tests and advancement of our pipeline. Net loss for the second quarter of 2025 was $11.5 million, an increase of 6% year-over-year. Adjusted EBITDA, which excludes noncash and other onetime items, was a loss of $7.2 million, which was an increase of 29% year-over-year. We ended the quarter with $20.7 million in unrestricted cash and cash equivalents. Cash in the second quarter included the drawdown on the $10 million Tranche C loan from Perceptive Advisors. Cash used from operations in the second quarter was $6.6 million, a 23% improvement over the $8.6 million in the first quarter of '25. We are maintaining our guidance of $80 million to $85 million of revenue for the year. Because of our strong gross margins and the planned and actual expansion of the sales team and the rep productivity achieved to date, we expect to achieve adjusted EBITDA positivity in the fourth quarter. Now I'll turn it back to Scott for some closing thoughts before the Q&A. Scott? Scott Hutton: Thank you, Robin. To summarize our achievements, we grew the size of the sales team to an average of 74 sales representatives in the field during the quarter, an increase of 13 reps, up 21%. We increased primary care ordering of lung diagnostic tests over 100% during the quarter versus levels seen prior to the pilot program in 2024. We achieved an all-time high in Development Services business dollars under contract of $12.5 million, up 54%. We announced new clinical and economic data supporting Nodify lung test at the ISPOR 2025 Annual Meeting and the ATS 2025 International Conference. We reached patient enrollment requirements in July 2025 for ALTITUDE with patient follow-up expected to continue for approximately 1 more year. We presented data on 3 pipeline initiatives, including the combination genomic and proteomic MRD test at the AACR Annual Meeting, the use of VeriStrat in first-line immunotherapy treatment selection at the ASCO Annual Meeting and VeriStrat in hormone-resistant cancer at ASMS. And we were honored to be recognized as a top workplace for the second consecutive year, a strong reflection of our exceptional team and thriving culture. Before moving on to questions, I want to restate that we have the best lung-focused team in diagnostics and continue to make significant progress in building a market in an area that has not historically used diagnostics in the way that other medical or oncology specialties have. With first-mover advantage in lung nodule management and an ever-increasing body of robust clinical and health economic data, we are generating the momentum to drive greater clinical and payer adoption as we move through 2025 and beyond. With all that's happening, it's a very exciting time here at Biodesix. We look forward to sharing more with you in the coming quarters. Let's now move to questions. Operator, let's start the Q&A session. Operator: [Operator Instructions] And our first question comes from Andrew Brackmann of William Blair. Andrew Frederick Brackmann: Scott, you gave a lot of commentary on the primary care opportunity and what you're seeing so far. Can you maybe just unpack that a little bit more for us? Perhaps why are you more confident now that this is the right strategy versus maybe the pilot? And I guess related to that, anything with respect to trends that you're seeing now that may be different than the pilot? Scott Hutton: Yes. Thank you, Andrew. Great questions. I don't know that there's really anything different. It's just as we gain more experience, it's continuing to reaffirm what we learned during the pilot. So if confidence is going up, it's just because we have broader or deeper experiences, and they remain consistent. And so we knew all along that nearly 50% of patients are stuck in primary care. That's a big problem. I think what we're finding now is in the support -- with the support of our pulmonology partners, we're tapping into that. And so we think that this is going to expand that market opportunity and maybe more importantly, our access to that. We'll continue to provide updates on the progress we see. As we stated, we just had our first class exit. They're in the field. We're continuing to invest, and we're always recruiting and expanding the sales force as we disclosed. So we'll continue to provide additional progress reports and feedback. But pulmonologists more and more are supporting the strategy. More and more of our existing and ordering pulmonologists want to reach out to their primary care physicians because they see the value. So it really is why you do pilots like we did. It gives us a lot of insights. It increases the confidence that we're making the right decisions. And now we're just back out demonstrating that it was the right decision, and we're going to continue to highlight those successes. Andrew Frederick Brackmann: That's great color. And then with respect to the commentary on electronic ordering, is there anything maybe you can share with respect to the utilization uptick you've seen in those accounts that have begun ordering electronically? And related to that, how do you think about this as a potential way to maybe even open up new customer doors? Scott Hutton: Yes. Great question, Andrew. And I think it may surprise most but the majority of health care practices and hospitals still prefer to utilize fax as a means by which they order or communicate with diagnostic companies and others. And so for us, that is not high tech. It's not fast. It's not the most accurate means by which we can communicate. And so whether it's full EMR integration or something like our Biodesix Physician Portal, there are faster means by which we can communicate. And so for us, it's really been around utilization of our portal and EMR integration, kind of the combination of the two. When individuals use our portal, compliance with the test order improves significantly. And so a way to think about that is when they go to fill out the order request form, if you're utilizing a portal, you can't progress until you filled in all of the sections of the form. If you submit a fax, there's -- there could be spots that are left empty. So that would require one of our customer care representatives to get on the phone, call a practice and ask for that information. Just in hearing that explanation and example, you can see that, that's going to provide a delay. And so knowing that lung cancer is the deadliest of all cancers and time matters, we really are focused on being not only as effective as possible, but really how efficient can we be. So when somebody utilizes a digital ordering platform, whether it's EMR or portal, because of that, we see less tests canceled, right? We see less tests that are submitted without all of the appropriate clinical factors. They're just going to enable that, that patient not only stays in the system, but they get the results they need. Is that helpful? Andrew Frederick Brackmann: Very helpful. Operator: And our next question comes from Bill Bonello of Craig-Hallum. William Bishop Bonello: What a nice turn from last quarter. A couple of questions. Robin, can you help us sort of bridge to EBITDA positive in Q4? I mean that's a really substantial move from this quarter. And so just trying to understand how much of it is just leverage of revenue growth? Is there cost cutting involved? How do we think about that? Robin Harper Cowie: Yes, absolutely. So it is primarily driven by revenue growth. So last quarter, we talked about the cadence of hiring and how last quarter, we were not where we wanted to be and that we needed to shift to adding the 10 reps per quarter, which we saw this quarter and are well on track for third and fourth quarter. That really catches us up to our original plan of getting to about 95 reps in the field in the fourth quarter. So between that and the normal sort of uptick we typically see in our services revenue in the fourth quarter, that's the biggest driver of bridging from where we were in the second quarter to where we expect to be in the fourth. William Bishop Bonello: Okay. That's helpful. And so not necessarily any specific initiatives around operating expenses or anything like that, just [ leverage ]. Robin Harper Cowie: Yes. No, we have run very lean for a very long time, and we continue to do so. We've made a lot of operating improvements, and you saw an uptick in our gross margin again this quarter for which we're very proud, and we're continuing to focus on those. So the focus on operating expense remains cost containment, running lean, being efficient and trying to find more operational efficiencies, not just in COGS, but also throughout the rest of the business. But our plan does not include any major cost-cutting measures in the third or fourth quarter. William Bishop Bonello: Sure. Okay. That's helpful. And when we think about the acceleration, the revenue growth that's going to happen that's implied in your guidance in the back half of the year, should we think of that as primarily volume driven and because you're adding the additional reps? Or is there anything on the ASP side? Robin Harper Cowie: Exactly. It's rep driven and volume driven. We've seen nice stability in our ASPs. We're not forecasting in any major changes in ASP at this time. So yes, it's rep and volume driven. William Bishop Bonello: Okay. And then one last question, if I could, which is again, when you're thinking about that ramp, how are you thinking about the Development Services? Is Q2 sort of steady from there? Was it outlier high? Does it grow from there? How are you thinking about that? Robin Harper Cowie: Well, we typically see a nice uptick in the fourth quarter just because of the cadence of how pharmaceutical companies work and their budgets work, the fourth quarter tends to be our strongest quarter of the year. So we would anticipate an uptick in fourth quarter over second quarter. Operator: And our next question comes from Thomas Flaten of Lake Street Capital Markets. Thomas Flaten: Scott, just reflecting back on some of the numbers you laid out in your prepared comments, and I realize I'm splitting hairs here, but you talked about greater than 100% growth in the primary care-driven orders. Do you have a growth number for the pulmonology? What I'm trying to figure out ultimately is, as you increase the emphasis on primary care, what happens to the growth from the pulmonology community? That's where I'm trying to go with this question. Scott Hutton: Yes, it's a great question, Thomas. One of the things that we've stated is in some pulmonology practices, we won't see growth, right, because they're moving ordering out into their referral networks. Now we will see growth collectively as an organization as we bring new ordering pulmonologists on. Some of those pulmonologists that have their referral networks ordering, they're still ordering, but it's less than what they were, say, a year ago. So those numbers, we keep track of them. We monitor them as closely as we can. And in the field, our team structure out there is focused on ensuring that no patients "slip through the cracks." So that ultimately, whatever a pulmonologist was ordering in the past, now that we're in his or her referral network, we should see an increase in ordering because we've gone further upstream. Is that helpful, Thomas? Thomas Flaten: Got it. Yes. No, that's super helpful. And then sticking with the sales team, I think you said on the last call that you had -- your goal was to put 50 pulmonology reps in the 50 territories and supplement them with more junior folks, including those calling on primary care. Can you give us an update on kind of how -- what that distribution looks like today with the new reps having come on board? Scott Hutton: Yes. No, you're thinking about it exactly right. So 49 territories, we stated we'll have 50 by year-end. Every territory will have a pulmonology sales consultant. That still is the primary focus here. The associate sales consultants and the general practitioner sales consultant, those are going to be a blend. They're not going to be equal in every territory. We're going to allow what that referral network looks like and those pulmonologists supporting us what guidance they give us. We stated we had our first class that just left. I can share now. We've got less than 10 general practice-focused sales consultants out there today. That will continue to grow. We'll give updates later in the year as to what that mix looks like. But right now, the majority of the focus is on getting those primary care physicians support sales reps out there as quick as we can. Operator: And our next question comes from Kyle Mikson of Canaccord Genuity. Alexander Davis Vukasin: This is Alex Vukasin on the line for Kyle Mikson. Congrats on the quarter. One, another question on primary care. So the ordering from primary care increased about 100% over the pilot program in 2024 that you're running. And as of right now, I guess, as of June, about 9% of test orders are coming from PCPs. Just curious, where do you think the volume mix could ultimately level out to over time in terms of volume from PCPs and pulmonology? Scott Hutton: Alex, I appreciate the question. It's difficult for us to forecast right now, and we wouldn't want to be presumptuous. Part of the reason we're doing this is to reach that untapped potential in the marketplace. Every territory is going to kind of convert to that differently or at a different cadence. And just as a reminder, we're not out knocking on doors for primary care physicians. We're following the lead of our pulmonology partners who are helping introduce us back into their referral networks. That makes this much more doable. Instead of looking at a 250,000-plus primary care physician population, we're utilizing claims data from Definitive Health, where we know that 80% of those patients really are stuck with about 14,000 to 15,000 primary care practices. So we've mapped it out pretty closely, but we want the support of our pulmonology partners in that pulmonology community. So we don't really have an ideal goal. I think the way we're really looking at success longer term is we want to continue to become the predominant player here that can provide solutions to pulmonologists across the board. The goal for us is to get to more patients with incidentally found nodules so that we can provide value as soon as possible, hopefully positively impacting their long-term outcome. Alexander Davis Vukasin: Got it. And just one more for me. So we've been talking about the potential impact of HEDIS quality measures for some time now. Is the expectation that these could potentially hit in 2025? And once these are finalized and released, do you believe that they could have an immediate meaningful impact on test volume? Scott Hutton: Yes, Alex, great question. I'm glad you brought it up. HEDIS just provided an update, I believe it was the end of June, maybe the beginning part of July. Unfortunately, they stated that they're going to put it on hold for this year. And the statement really stated that it's too difficult of a challenge and too complex for them. Specifically, they stated they had concerns about the technical readiness of health plans to adequately capture and report smoking history, the risk of potential harm to patients due to inappropriate or over- screening and the absence of shared decision-making within the systems. From our perspective, we're extremely disappointed by this, especially from a patient perspective. But it reflects some of the challenges that we've stated over the last 5 years, and we've heard from many, many physicians that it is very difficult to implement screening programs within kind of this lung cancer population. The good news for us is our tests work in both lung cancer screening and incidentally found nodules. And so this will be a win for us when it happens because it will increase the number of patients that are eligible for Nodify testing. But without that, it still does not impact our forecast in 2025 or 2026. So we'll continue to work with others to ensure that the decision-makers within HEDIS consider this because we all know that the only way we're going to make an impact with the deadliest cancer is to get to these patients sooner, and screening is one of the main ways by which we'll be able to do so. Operator: [Operator Instructions] Our next question comes from William Ruby of TD Cowen. William Ruby: This is William on for Dan. I guess my first question would be, what is your view on your capital needs over the next 1.5 years? Do you still think you have enough room to get to breakeven with some cushion? Just how are you thinking about that? I guess that will be my first question. Scott Hutton: Thanks, William. Appreciate it. Robin, do you want to answer that? Robin Harper Cowie: Yes, absolutely. William, thanks for joining today. We are absolutely focused on getting to not just adjusted EBITDA breakeven, but also cash flow breakeven. And we think with our existing plans and our growth that we can get there, and we can get to cash flow positivity. And we're doing everything we can to both grow those revenues and keep our expenses as tight as possible to achieve those goals. William Ruby: Got it. Got it. And then kind of going over to the primary care reps. How confident do you feel that these new reps will be able to maintain $1 million per rep productivity after they ramp? If so, what gives you the confidence? And do you maybe see some upside to that $1 million number given you're expanding in this new market? Scott Hutton: Yes. Great question, William. We appreciate that. What gives us confidence is we saw it in the pilot. And so the pilot really demonstrated that they could ramp similarly to what we've seen with our pulmonology sales consultants, and they were paying for themselves in a similar time frame. Now it's early, but we've seen that with the most recent hires also. They're on a very similar trajectory and path. So it's really not about speculating. It's allowing performance to demonstrate that we can do that. And then on your other question, there is potential to unlock kind of a higher sales rep productivity. That's our average. We do see some reps in some territories that perform significantly higher than that, and that gives us promise. And so we know that there's a lot of opportunity for upside. And we continually focus on providing a lot of different values to these physicians, most importantly, our test, right? They provide significant clinical insights and value to them, but also the support that we provide. So we'll provide additional success stories as we move forward, specifically to your question around the primary care physicians, but we feel confident that they can continue to contribute at that rate. But I think you bring up a good question, which is there might be some different value adds we can provide in primary care that allows us to grow and scale faster, and we're excited to explore that. Operator: I show no further questions at this time. I'd like to turn it back to Scott Hutton for closing remarks. Scott Hutton: Thank you, operator. In closing, I want to express my gratitude to all the remarkable members of the Biodesix team who have shown unwavering belief in and dedication to our mission, vision and culture. Our collective commitment and daily contributions are centered around making a positive impact in the lives of patients through their health care providers who are our customers. I'm truly thankful for your efforts. Thank you. Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect. 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