Aug 13, 2026 earnings call — Resolve wind-down and tissue revenue recovery
Reported a 14% sequential revenue increase, or $3.3 million, and aims to return to positive adjusted EBITDA as it exits 2026.
Revenue $0.0B (est $0.0B) · EPS $-0.18 (est $-0.19)
Key quotes
"Following the discontinuation of Resolve UTI testing, we completed the cessation of our Plano, Texas, lab operations and eliminated the $10.4 million contingent liability to Novitas from our corporate structure as a discontinued operation through an organized wind down of that independently operated entity."
"We delivered that recovery with a sequential increase of greater than 1,400 tissue-based tests."
"Based on our revenue growth expectations, coupled with exceptional operating discipline, we are now firmly on track to return to positive adjusted EBITDA as we exit 2026."
Analyst Q&A 5
Tissue sales cause and revenue timing
Q (Thomas Flaten · Lake Street): Are the tissue volume issues internal or due to competitors? And will revenue grow linearly between Q3 and Q4 or fluctuate?
A: Management said the tissue weakness came from an internal sales reorganization, including territory remapping and rep cross-training, not competitive loss. They expect Q2 shows recovery and they expect revenue to progress generally linearly, with Q3 seasonality as the only wildcard and acceleration into Q4.
"I kind of signaled we expected Q4 and Q1 to be a little choppy, really a function of the restructuring of the sales organization." — Michael McGarrity (CEO)
Liability removal and cash runway
Q (Dan Brennan · TD Cowen): Can you confirm the Texas Medical liability is off the books after closing the lab? And how does the $20 million raise affect the need for future capital versus cash flow?
A: Management said they worked with outside counsel and their lender to close the entity and remove that liability, calling it a significant de-risking. They also said the $20 million and operating leverage give the company runway and that continued top-line growth plus OpEx discipline should help fund obligations, while options with partners remain available.
"So we believe that is a significant de-risking element to our business as we go forward." — Michael McGarrity (CEO)
Tissue growth and Exo volumes
Q (Bill Bonello · Craig-Hallum): If the sales force distraction is over, why is tissue still down year-over-year while competitors grow? Is utilization falling or are you taking share? Also, can you give pro forma liquid/Exo volume growth?
A: They said Q2 of last year was an unusually high tissue quarter and the team also had to transition hundreds of Resolve customers, which diverted focus even as they drove sequential improvement. They pointed to guidance of $110 million-$115 million implying 20%-26% growth and said growth comes from both market conversion and share gains. On pro forma Exo comparisons, management said they cannot directly compare to Select mdx because they stopped selling Select, but they are confident Exo volumes will grow and Q4 will be the first quarter with year-over-year Exo comps.
"Our current guide at $110 million-$115 million contemplates 20%-26% growth, which would suggest that if you look at our 2026 for tissue by quarters, we'd be down 12 flat, and then up accelerated." — Michael McGarrity (CEO)
2027 growth and M&A plans
Q (Mark Massaro · BTIG U.S. Bank): How confident are you about growing 20% in 2027 and what are the drivers? Also, with $20 million cash, are you considering tuck-in acquisitions?
A: Management said it is premature to give 2027 guidance but they see growth drivers from Exo, tissue AI initiatives, and ProMPT/ProtecT data that could contribute in 2027. On M&A, they said they run a disciplined growth process, are always evaluating opportunities, and remain focused near-term on executing the current plan while being selective about any tuck-ins.
"We think that there is significant opportunity for growth with the Exo business as we go forward." — Michael McGarrity (CEO)
Integration KPIs and ProtecT timing
Q (Matt Larew · William Blair): What internal KPIs show Exo integration and sales productivity improving? And can you confirm the ProtecT timing and expected physician reaction?
A: They said they track many metrics, including physician adoption of the full menu and pathway compliance, and highlighted pathology engagement and GPS features (less tissue required) as drivers of sustainable, sticky adoption. On ProtecT timing, they said they get regular updates with Oxford, the timing of the readout is hard to handicap, ProMPT publication was helpful, and they will provide more visibility each quarter.
"We look at everything from the way our physicians adopt our menu with the goal of selling our full pathway solution to the way they adopt within a large group practice." — Michael McGarrity (CEO)