Slides
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1 1Q 2025 Financial Results Nasdaq: NEO April 29, 2025
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2 Safe Harbor Statements This presentation has been prepared by NeoGenomics, Inc. (“we,” ”us,” “our,” “NeoGenomics” or the “Company”) and is made for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities, nor shall there be any sale of any securities inany state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The information set forth herein does not purport to be complete or to contain all of the information you may desire. Statements contained herein are made as of the date of this presentation unless stated otherwise, and neither this presentation, nor any sale of securities, shall under any circumstances create an implication that the information contained herein is correct as of any time after such date or that information will be updated or revised to reflect information that subsequently becomes available or changes occurring after the date hereof. This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 relating to business, operations, and financial conditions of the Company. Words such as, but not limited to, “look forward to,” “believe,” “expect,” “anticipate,” “suggest”, “project”, “forecast”, “estimate,” “intend,” “plan,” “would,” “should” and “could,” and similar expressions or words, identify forward-looking statements. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its expectations will be realized. Actual results could differ materially from those projected in the Company’s forward-looking statements due to numerous known and unknown risks and uncertainties. All forward-looking statements speak only as of the date of this presentation and are qualified in their entirety by this cautionary statement. The Company undertakes no obligation to reviseor update this presentation to reflect events or circumstances after the date hereof. Information contained in this presentation concerning our industry and the markets in which we operate, including our generalexpectations and market position, market opportunity and market size, is based on information from various sources, on assumptions that we have made that are based onsuch information and other similar sources and on our knowledge of, and expectations about, the markets for our service offerings. This information involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. This presentation contains financial measures, such as adjusted EBITDA, adjusted gross margin and adjusted net income, which are considered non-GAAP financial measures under applicable U.S. Securities and Exchange Commission rules and regulations. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP). Adjusted EBITDA, adjusted gross margin and adjusted net income, unusual or other items that we do not consider indicative of our ongoing operating performance. The Company’s definitions of these non-GAAP measures may differ from similarly titled measures used by others. The Company generally uses these non-GAAP financial measures to facilitate management’s financial and operational decision-making, including evaluation of the Company’s historical operating results, comparison to competitors’ operating results and determination of management incentive compensation. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company’s operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends affecting the Company’s business. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company’s reported results of operations, management strongly encourages investors to review the Company’s consolidated financial statements and publicly filed reports in their entirety. Reconciliations of thenon-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables in this presentation. We cannot estimate or project these items and they may have a substantial and unpredictable impact on our results presented in accordance with GAAP.
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3 Mission We save lives by improving patient care. Vision We are becoming the world’s leading provider of comprehensive cancer testing, data and solutions through uncompromising quality, exceptional customer experience, and innovative products and services.
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4 $3.5 $10.9 $13.4 $11.9 $7.1 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 $156.2 $164.5 $167.8 $172.0 $168.0 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 1Q 2025 Highlights Revenues ($millions) 8% 102% • Testing volumes increased 8% vs prior year • Adjusted Gross Margin increased to 47% • 18% growth in Clinical NGS revenue • AEBITDA improves 102% with 7 consecutive quarters of positive AEBITDA • Announced acquisition of Pathline to strengthen commercial presence in the Northeast • Submitted PanTracer LBx to MolDx • Aligned commercial and operations team under President and COO Clinical Revenue Per Test Adj. EBITDA ($millions) 3% $447 $454 $463 $465 $459 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 301 312 315 322 326 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Clinical Volume (unit thousands) 8% Quarterly financial information is unaudited. Growth corresponds to prior year period. Reference non-GAAP reconciliation slides in Appendix for details.
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5 Sustainable Growth – Clinical Enhance Footprint Pathline Acquisition Expands Reach to Northeast Region • Targeted approach into #3 cancer market in US • Improves TAT for region Sign Agreements and Partnerships Increase Volumes 8% YoY Clinical NGS grew 18% • Approx. 31% of total Clinical revenue • 5 of our recently launched NGS tests account for 22% of total Clinical revenue EPIC Partnership to Accelerate Integration • Roll out in 2H’25 Adaptive MRD Partnership • Expanding offering across care continuum Expand Salesforce Up to 140 reps Focused on Community Oncology • Timing aligns with new product launches
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6 6 Sustainable Growth – Innovation Launching Q2 2025 HRD Score for ovarian, BRCA + GIS 514 genes + MSI & bTMB ctDNA sequencing 7-day TAT Easy to interpret report Guideline-driven 517 genes + MSI & TMB DNA + RNA sequencing 8-10 day TAT Easy to interpret report Guideline-driven Blood-based biomarker testing Tissue-based biomarker testing
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7 1st Quarter 2025 Financial Highlights Adj. Gross Profit Up 11% to $79M Adj. EBITDA Up 102% to +$7M Revenue Up 8% to $168M Clinical Volume Up 8% to 326K • Total Quarter Revenue Increased 8% • 18% revenue growth in Clinical NGS • Adjusted Gross Margin increased to 47% an improvement of 146 bps • Adjusted EBITDA increased to positive $7 million, an improvement of $4 million over prior year Quarterly financial information is unaudited. Growth corresponds to prior year period. Reference non-GAAP reconciliation slides in Appendix for details.
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8 137 147 152 156 156 165 168 172 168 Q1 Q2 Q3 Q4 2023 Revenue 2024 Revenue 2025 Revenue 1st Quarter Revenue Results • Revenue Grew 8% to $168M • Clinical Revenue per Test Improved 3% Due to Mix and Pricing • RCM Initiatives Contributing to Revenue Growth Quarterly financial information is unaudited. Growth corresponds to prior year period. Reference non-GAAP reconciliation slides in Appendix for details.
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9 1st Quarter Financial Overview Financial Statement In $Millions 1Q’24 1Q’25 %vPY Revenue $156.2 $168.0 7.5% Adjusted Gross Profit $70.8 $78.6 11.0% Adjusted Gross Margin 45.3% 46.8% 146 bps Adjusted EBITDA $3.5 $7.1 102.5% Adjusted EBITDA Margin 2.2% 4.2% 197 bps Cash and cash equivalents $331.9 $346.2 4.3% Marketable securities, at fair value $52.9 $11.9 -77.5% Total Cash/Marketable Securities $384.8 $358.1 -7.0% Cash Flow from Operations ($25.9) ($25.3) 2.3% Quarterly financial information is unaudited. Growth corresponds to prior year period. Reference non-GAAP reconciliation slides in Appendix for details.
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10 10 FY 2025 Guidance Original Guide ($ Millions) YoY% Growth Revenue $735 - $745 11 – 13 % Adj. EBIDTA $55 - $58 38 – 45 % Reiterating FY guidance on base business, adding in incremental revenue from Pathline acquisition of $12-14 million AEBITDA Growth Exceeds Revenue Growth Due to Improving Gross Profit and Operating Leverage Continue to Invest in our People and the Business Revised ($ Millions) YoY% Growth $747 - $759 13 – 15 % $55 - $58 38 – 45 %
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11 Summary • Momentum continues with revenue growth of 8%, volume growth of 8%, and 102% Adj. EBITDA improvement. • Increased focus in 2025 on R&D and Business Development to drive innovation, including launch of PanTracer LBX in Q2 • Key strategic initiatives continue to drive revenue growth, operating leverage, and improved financial performance • Announced and closed Pathline acquisition, expanding our footprint into the third largest state in the US Quarterly financial information is unaudited. Growth corresponds to prior year period. Reference non-GAAP reconciliation slides in Appendix for details.
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12 © 2024 NeoGenomics Laboratories, Inc. All rights reserved. All other trademarks are the property of their respective owners. Rev. MMDDYY
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13 Appendix
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14 Balance Sheet March 31, 2025 (unaudited, in thousands) March 31, 2025 (unaudited) December 31, 2024 ASSETS Current assets Cash and cash equivalents $ 346,194 $ 367,012 Marketable securities, at fair value 11,886 19,832 Accounts receivable, net 151,208 150,540 Inventories 29,772 26,748 Prepaid assets 22,980 20,165 Other current assets 11,892 11,722 Total current assets 573,932 596,019 Property and equipment, net 89,603 94,103 Operating lease right-of-use assets 77,803 79,583 Intangible assets, net 331,319 339,681 Goodwill 522,766 522,766 Other assets 6,007 5,886 Total non-current assets 1,027,498 1,042,019 Total assets $ 1,601,430 $ 1,638,038 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable and other current liabilities $ 75,489 $ 97,083 Current portion of operating lease liabilities 3,075 3,381 Current portion of convertible senior notes, net 201,131 200,777 Total current liabilities 279,695 301,241 Long-term liabilities Operating lease liabilities 59,861 60,841 Convertible senior notes, net 340,714 340,335 Deferred income tax liabilities, net 20,970 21,510 Other long-term liabilities 11,921 11,772 Total long-term liabilities 433,466 434,458 Total liabilities $ 713,161 $ 735,699 Stockholders’ equity Total stockholders’ equity $ 888,269 $ 902,339 Total liabilities and stockholders’ equity $ 1,601,430 $ 1,638,038
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15 Income Statement March 31, 2025 (unaudited, in thousands) Three Months Ended March 31, 2025 2024 NET REVENUE 168,035 156,240 COST OF REVENUE 94,789 90,771 GROSS PROFIT 73,246 65,469 Operating expenses: General and administrative 68,207 65,797 Research and development 10,181 7,620 Sales and marketing 22,683 20,221 Restructuring charges — 2,398 Total operating expenses 101,071 96,036 LOSS FROM OPERATIONS (27,825) (30,567) Interest income (3,721) (4,834) Interest expense 1,618 1,685 Other (income) expense, net (65) 263 Loss before taxes (25,657) (27,681) Income tax expense (benefit) 266 (620) NET LOSS $ (25,923) $ (27,061) NET LOSS PER SHARE Basic $ (0.20) $ (0.21) Diluted $ (0.20) $ (0.21) WEIGHTED A VERAGE COMMON SHARES OUTSTANDING Basic 127,376 126,111 Diluted 127,376 126,111
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16 Statements of Cash Flows March 31, 2025 (unaudited, in thousands) Three Months Ended March 31, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ (25,923) $ (27,061) Adjustments to reconcile net loss to netcash used in operating activities: Depreciation 9,366 9,905 Amortization of intangibles 8,362 8,362 Stock-based compensation 10,754 7,774 Non-cash operating lease expense 1,584 2,401 Amortization of convertible debt discount and debt issue costs 735 725 Impairment of assets — 145 Other adjustments 37 (57) Changes in assets and liabilities, net (30,242) (28,109) Net cash used in operating activities (25,327) (25,915) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from maturities of marketable securities 8,060 20,110 Purchases of property and equipment (4,500) (5,585) Net cash provided by investing activities 3,560 14,525 CASH FLOWS FROM FINANCING ACTIVITIES Repayment of equipment financing obligations — — Issuance of common stock, net 949 816 Net cash provided by financing activities 949 816 Net change in cash and cash equivalents (20,818) (10,574) Cash and cash equivalents, beginning of period 367,012 342,488 Cash and cash equivalents, end of period $ 346,194 $ 331,914
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17 Three Months Ended March 31, 2025 2024 % Change Consolidated: Total revenue (GAAP) $ 168,035 $ 156,240 7.5% Cost of revenue (GAAP) $ 94,789 $ 90,771 4.4% Adjustments to cost of revenue(6) (5,325) (5,305) Adjusted cost of revenue (non-GAAP) $ 89,464 $ 85,466 4.7% Gross profit (GAAP) $ 73,246 $ 65,469 11.9% Adjusted gross profit (non-GAAP ) $ 78,571 $ 70,774 11.0% Gross profit margin (GAAP) 43.6% 41.9% Adjusted gross profit margin (non-GAAP) 46.8% 45.3% _________________ (6) Cost of revenue adjustments for the three months ended March 31, 2025 and 2024, includes $4.9 million of amortization of acquired intangible assets and $0.4 million of stock-based compensation. Adjusted Gross Margin March 31, 2025 (unaudited, in thousands)
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18 Three Months Ended March 31, 2025 2024 Net loss (GAAP) $ (25,923) $ (27,061) Adjustments to net loss: Interest income (3,721) (4,834) Interest expense 1,618 1,685 Income tax expense (benefit) 266 (620) Depreciation 9,366 9,905 Amortization of intangibles 8,362 8,362 EBITDA (non-GAAP) $ (10,032) $ (12,563) Further adjustments to EBITDA: CEO transition costs(3) 2,193 — Stock-based compensation expense 10,754 7,774 Restructuring charges — 2,398 IP litigation costs(4) 2,983 4,281 Other significant expenses, net(5) 1,172 1,602 Adjusted EBITDA (non-GAAP) $ 7,070 $ 3,492 _________________ (3) For the three months ended March 31, 2025, CEO transition costs include severance costs, executive retention costs, and executive search costs. (4) For the three months ended March 31, 2025 and March 31, 2024, IP litigation costs include legal fees. (5) For the three months ended March 31, 2025, other significant (income) expenses, net, includes acquisition related expenses. For the three months ended March 31, 2024, other significant (income) expenses, net, includes site closure costs, and other non-recurring items. Adjusted EBITDA March 31, 2025 (unaudited, in thousands)
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19 Year Ended December 31, 2025 Low Range High Range Net loss (GAAP) $ (85,000) $ (77,000) Amortization of intangibles 34,000 34,000 Stock-based compensation expenses 47,000 44,000 Other one-time expenses 24,000 24,000 Adjusted net income (non-GAAP) 20,000 25,000 Interest and taxes (7,000) (7,000) Depreciation 42,000 40,000 Adjusted EBITDA (non-GAAP) $ 55,000 $ 58,000 Net loss per diluted share (GAAP) $ (0.66) $ (0.60) Adjustments to net loss per diluted share: Amortization of intangibles 0.27 0.27 Stock-based compensation expenses 0.37 0.34 Other one-time expenses 0.19 0.19 Rounding and impact of diluted shares in adjusted diluted shares(13) (0.01) — Adjusted diluted EPS(13) (non-GAAP) $ 0.16 $ 0.20 Weighted average assumed shares outstanding in 2025: Diluted shares (GAAP) 128,000 128,000 Options, restricted stock, and converted shares not included in diluted shares(14) — — Adjusted diluted shares outstanding (non-GAAP) 128,000 128,000 Adjusted EBITDA 2025 Guidance (unaudited, in thousands) _________________ (13) This adjustment is for rounding and, in those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive, also compensates for the effects of additional diluted shares included in adjusted diluted shares outstanding for the treasury stock impact of outstanding stock options and restricted stock and the if-converted impact of convertible notes. (14) For those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive, this adjustment includes any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such shares would have been outstanding in the reporting period, until the effect of these adjustments are anti- dilutive. GAAP net loss in 2025 will be impacted by certain charges, including: (i) expense related to the amortization of intangible assets, (ii) stock-based compensation, and (iii) other one-time expenses. These charges have been included in GAAP net loss available to stockholders and GAAP net loss per share; however, they have been removed from adjusted net loss and adjusted diluted net loss per share The following table reconciles the Company’s 2025 outlook for net loss and EPS to the corresponding non-GAAP measures of adjusted net loss, adjusted EBITDA, and adjusted diluted EPS: