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• Revenue: $168 million for Q1 2025, an 8% increase over the prior year.

• Adjusted EBITDA: $7.1 million, marking the seventh consecutive quarter of positive adjusted EBITDA.

• Clinical Testing Volumes: Increased by 8% compared to the prior year.

• Revenue per Test: Increased by 3%.

• NGS Revenue Growth: 18% growth in Q1 2025.

• Adjusted Gross Margin: Improved by 146 basis points to 47%.

• Adjusted Gross Profit: $79 million, up 11% from the prior year.

• Sales and Marketing Expense: $23 million, a 12% increase.

• R&D Expense: Increased by 34% to $10 million.

• G&A Expense: $68 million, driven by higher technology and compensation costs.

• Cash and Marketable Securities: $358 million, a 7% decrease from the prior year.

• Cash Flow from Operations: Negative $25 million, a 2% improvement over Q1 2024.

• Full Year 2025 Revenue Guidance: Revised to $747 million to $759 million, representing 13% to 15% growth.

• Pathline Acquisition Contribution: Expected to contribute $12 million to $14 million in revenue for 2025.

• Warning! GuruFocus has detected 3 Warning Signs with NEO.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• NeoGenomics Inc (NASDAQ:NEO) reported a solid start to the year with revenues of $168 million and adjusted EBITDA of $7.1 million, marking the seventh consecutive quarter of positive adjusted EBITDA.

• Clinical testing volumes increased by 8% compared to the previous year, with a 3% increase in revenue per test.

• The acquisition of Pathline is expected to expand capabilities and accelerate growth, contributing to incremental top-line revenue this year.

• NeoGenomics Inc (NASDAQ:NEO) launched five new NGS products, which now account for 22% of total clinical revenue, demonstrating strong market penetration.

• The company is expanding its commercial resources, with approximately 140 salespeople, to drive market penetration into community oncology and support new product launches.

Negative Points

• The non-clinical business, which accounts for around 10% of total revenue, is facing macroeconomic challenges, including reduced pharma and biotech spending.

• Recent tariffs and potential cuts in NIH funding are anticipated to result in reduced R&D spending across the non-clinical customer base.

• The Pathline acquisition is expected to lower average unit price (AUP), adjusted gross margins, and adjusted EBITDA for the remainder of 2025.

• There is heightened uncertainty around pharma and biotech spending, which is expected to lead to a decline in pharma revenue this year.

• The integration of Pathline and the validation of NeoGenomics Inc (NASDAQ:NEO)'s existing tests in the Pathline lab will take time, with minimal benefit expected this year.