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DATE

Wednesday, Aug. 5, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

  • Chief Executive Officer - Scott Hutton
  • Chief Financial Officer - Robin Harper Cowie

TAKEAWAYS

  • Total Revenue -- $26.9 million, an increase of 34% compared to the prior year period.
  • Diagnostic Testing Revenue -- $25.4 million, representing 42% growth year over year driven by higher test volumes and improved average revenue per test.
  • Total Test Volume -- 20,900 tests, a 38% increase reflecting increased adoption across both primary care and pulmonology segments.
  • Primary Care Volume Growth -- 133% year over year, driven by the company's focus on the approximately 50% of lung nodules managed by general practitioners.
  • Pulmonology Volume Growth -- 31% year over year, supported by increased utilization within existing accounts and new physician adoption.
  • Primary Care Volume Mix -- 15% of total diagnostic test volume, which remained consistent with the previous quarter.
  • Gross Margin -- 82%, a 200-basis-point improvement over the second quarter of 2025 due to laboratory workflow optimization and lower cost per test.
  • Operating Expenses -- $27.4 million (excluding direct costs), an increase of 7% year over year compared to 34% revenue growth.
  • Net Loss -- $7.3 million, an improvement of 37% compared to the prior year period.
  • Adjusted EBITDA Loss -- $3.2 million, a 56% improvement year over year reflecting gains in operating leverage.
  • Cash and Cash Equivalents -- $30 million as of June 30, 2026, representing a 17% increase since March 31, 2026.
  • At-The-Market Proceeds -- $6.5 million in net proceeds raised through the company's equity program during the second quarter.
  • Net Cash Used -- $2.1 million (excluding ATM proceeds), representing a 70% improvement from the $6.9 million used in the second quarter of 2025.
  • Sales Representative Count -- 104 personnel in the field during the second quarter, with a year-end target of approximately 120 representatives.
  • Development Services Revenue -- $1.5 million, compared to $2.1 million in the prior year, reflecting the timing of project completion and revenue recognition.
  • Contracted Business Pipeline -- $8.5 million in remaining value for biopharmaceutical and development services.
  • Full-Year 2026 Revenue Guidance -- $108 million to $114 million, with the midpoint representing approximately 25% growth over fiscal 2025 performance.
  • Average Revenue Per Test -- Increased over the prior year, driven by expanded payer coverage and improvements to revenue cycle management.
  • Research and Development Expenses -- $3.1 million, a 4% decrease compared to the second quarter of 2025.
  • Sales, Marketing, and General Administrative Expenses -- Increased 8% year over year, supporting the planned expansion of the commercial organization.
  • Stock-Based Compensation -- $0.8 million, a 21% decrease compared to the prior year period.

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RISKS

  • Hutton stated, "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," which could impact the timing of revenue recognition.
  • Hutton noted that the American College of Chest Physicians (ACCP) "have not updated their relevant guidelines in over 12 years," which limits the formal inclusion of blood-based biomarkers in standard care protocols.

SUMMARY

Biodesix, Inc. (BDSX -0.37%) management reported a strategy focused on commercial expansion into the primary care market and the generation of clinical evidence to drive adoption of its lung diagnostic tests. Management reported expanding operating leverage, with top-line growth significantly outpacing the increase in operating expenses during the second quarter. The company stated that its commercial execution relies on a maturing sales force and a growing body of peer-reviewed data to penetrate the market for lung nodule risk assessment. Financial objectives for the remainder of 2026 include maintaining high gross margins and progressing toward adjusted EBITDA profitability through improved sales productivity and disciplined expense management.

  • CEO Hutton cited a March publication demonstrating that Nodify CDT can "detect cancer in nodules as small as 4 millimeters" while maintaining a low false positive rate.
  • Hutton observed that healthcare providers who adopt Nodify CDT for smaller nodules "subsequently increase their use of both Nodify CDT and Nodify XL2 for patients with larger nodules."
  • Management highlighted data presented at the American Thoracic Society annual meeting showing an increase in Stage 1 lung cancer detection following the implementation of systematic lung nodule testing.
  • CFO Cowie indicated that the company expects gross margins to remain "right around 80% or just above 80%" for the remainder of the fiscal year.
  • Management plans to provide a development partner and R&D update in November 2026 to share progress on the product pipeline and future revenue streams.
  • Sales force productivity is expected to improve as representatives hired in the second half of 2025 gain tenure and move along the expected productivity curve.

INDUSTRY GLOSSARY

  • ACCP: The American College of Chest Physicians, an organization that provides clinical guidelines for pulmonary medicine.
  • ATS: The American Thoracic Society, a professional organization focused on pulmonary, critical care, and sleep medicine.
  • GeneStrat: A blood-based diagnostic platform providing rapid results for tumor mutations and immune system status to guide treatment.
  • Nodify CDT: A blood-based test that identifies antibodies produced by the immune system to detect lung cancer in small nodules.
  • Nodify Lung: A risk assessment suite including the Nodify CDT and Nodify XL2 tests used to evaluate lung nodules.
  • Nodify XL2: A blood-based proteomic test used to identify nodules with a low risk of malignancy, potentially avoiding unnecessary invasive procedures.
  • VeriStrat: A host response proteomic test used to inform prognosis and treatment plans for patients with lung cancer.

Full Conference Call Transcript

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.