Commercial Transformation and Sales Process Overhaul
The commercial transformation aims to capitalize on large enterprise and IDN opportunities, with a focus on moving from early-stage to later-stage deals.
The company has retooled its sales team to target hospital CNOs and other key decision-makers, emphasizing change management and clinical benefits.
Progress includes a more disciplined approach to sales forecasting, pipeline management, and deal closure, setting the stage for sustained growth.
Adjusted EBITDA was $10.7 million, down 2% from prior year, impacted by Pathline acquisition ramp; excluding Pathline, adjusted EBITDA grew 13%.
Adjusted gross profit improved by $4.6 million or 6% over prior year.
Cash flow from operations was positive $20 million, up 44% year-over-year, with cash and marketable securities ending at $164 million.
Clinical revenue grew 16% year-over-year with organic clinical revenue up 13%, driven by a 10% increase in test volumes and a 3% increase in average unit price (AUP).
NeoGenomics reported Q2 2025 revenue of $181 million, representing 10% year-over-year growth but slightly below guidance.
NGS testing accounted for 32% of total clinical revenue and grew 23%, slightly below the 25% target but above market growth rates.
Nonclinical revenue declined 26% year-over-year due to weakness in pharma and biotech customer demand.
The company retired $201 million of convertible notes in Q2, significantly reducing debt.
Cash and equivalents stood at $462 million as of June 30, 2025.
Drug discovery revenue increased 19% year-over-year to $14.2 million, reflecting recognition of a $150 million upfront payment from the Novartis collaboration.
Net loss narrowed to $43 million ($0.59 per share) from $54 million ($0.74 per share) in Q2 2024.
R&D expenses decreased over 15% to $43.1 million, driven by expense shifts and cost reduction initiatives.
Sales and marketing expenses increased 11% to $10.7 million, while G&A expenses rose 7% to $25.2 million.
Software gross margin declined to 68% from 80% in Q2 2024 due to revenue mix changes and investments in the predictive toxicology initiative.
Software revenue grew 15% year-over-year to $40.5 million, driven by hosted contracts and Gates Foundation grant contributions.
Total operating expenses decreased 6% to $79 million compared to Q2 2024.
Total revenue for Q2 2025 was $54.8 million, a 16% increase year-over-year.
The recent equity raise and strong sales from ARIKAYCE have resulted in a cash position of approximately $1.9 billion, the strongest in company history.
Operational expenses increased due to launch preparations and pipeline investments, but cash burn is expected to decrease as revenue from brensocatib begins.
Insmed anticipates up to 10 key milestones in the next 12 months, with a focus on maximizing value through strategic capital deployment and pipeline execution.
Dafinchi