Hello and welcome everyone joining today's MDX Health third quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. To register to ask a question at any time, please press star 1 on your telephone keypad. Please note this call is being recorded and we are standing by if you should need any assistance. It is now my pleasure to turn the meeting over to John Francis with LifeSci Advisors. Please go ahead.

Before we begin, I would like to remind everyone that the company will make forward-looking statements during today's call. Whether in prepared remarks or during the Q&A session, these forward-looking statements are subject to inherent risks and uncertainties. These risks and uncertainties are detailed in the risk factors section of the company's filings with the Securities and Exchange Commission specifically in the company's annual report on Form 20F. I'll now turn the call over to Michael McGarrity, Chief Executive Officer. Thanks, John.

And thank you all for joining us for our third quarter 2026 earnings conference call. With me today is Ron Kalfus, Interim Chief Financial Officer. Since I joined MDX Health, we have been consistent in our commitment to transparency, operating discipline, and our core principles of focus, Thank you for joining us today. While our discipline commercial process has served as the foundation of our forecast accuracy and consistent performance over the past four years, that process was clearly disrupted by this recent impact on our sales force. Importantly, we do not believe these factors represent a change in the credibility and reputation we have built with our customer base, the underlying clinical demand for our products, or our long-term market opportunity. However, as I've noted before, you are defined not by what happens to you, but how you respond. In direct response to this challenge, we have initiated a comprehensive restructuring of our commercial organization designed to reset our focus and process across our sales, marketing and client services groups. As part of this reorganization, We have eliminated the chief commercial officer role and have effectively split our sales and marketing functions into two distinct operating groups, both of which will report directly to me. Splitting our sales and marketing groups provides clear delineation and direct accountability for product strategy and sales execution, while simultaneously enhancing the overall customer experience. Based on my prior experience operating under this exact model, separating these functions establishes a vital check and balance on what had become a vertical operating structure, giving direct visibility into both territory level execution and commercial strategy. Over the past several weeks, we have made considerable progress in backfilling and rebuilding our sales team. And we are highly encouraged by the caliber of talent and industry experience we are attracting to MDX Health. Election, development and retention are the foundational pillars of our process through this commercial reset. With the rigor we are applying to our recruiting and onboarding, we expect to exit the fourth quarter with a fully staffed sales organization, positioned to return to growth in 2027. Across the rest of the organization, Our laboratory, revenue cycle management, and administrative teams continue to focus relentlessly on supporting our commercial organization under our core mandate of quality first and customers always. We remain deeply proud of our team's commitment and resilience, not only in navigating this commercial transition, but also to what matters most, the patient and family on the other side of every sample we receive. I will follow up with some closing comments and our view forward into 2027. But first, let me turn the call over to Ron to walk through our third quarter financial results. Ron?

Thank you, Mike. Before diving into our Q3 financials, I want to remind investors that following the strategic wind down of our resolved UTI business and the cessation of our Plano, Texas laboratory operations prior to June 30, The resolved business remains formally classified as a discontinued operation. Consistent with our reporting last quarter, all Q3 and prior year financial metrics discussed today reflect only our continuing core operations with the historical results of the resolved business fully excluded and represented. Our revenue from continuing operations for the third quarter ended September 30, 2026 was $22.7 million. which was flat compared to the third quarter of 2025. Revenue in the third quarter was comprised of 79% from tissue-based tests compared to 92% for the same period last year, reflecting the strategic integration of ExaBX liquid testing into our core offering. Moving below the revenue line, our gross profit for the quarter was $14 million, a decrease of 5% compared to $14.8 million for the third quarter of 2025. Gross margins were 61.8% compared to 65% for Q3 2025. This reduction of 3.2 percentage points is primarily attributed to the shift in our test mix towards liquid-based volume following the ExoDx acquisition. Our operating expenses for the quarter increased by 16% to $22.2 million. This resulted in an operating loss of $8.1 million for the quarter compared to $4.4 million for the third quarter of 2025. This increase in operating loss was primarily driven by the expanded footprint, headcount, and operating expenses related to the eggs of the eggs acquisition, which were not present in our baseline run rate at this time last year. Our net loss from continuing operations increased 26% to $12.3 million compared to $9.7 million for the prior year, again, driven by the acquired operating expenses from EXO-DX. Adjusted EBITDA for the third quarter was a negative $6.3 million compared to a negative $0.9 million for the third quarter of 2025. As always, a reconciliation of IFRS to non-IFRS financial measures is provided in the tables included in today's press release. Finally, turning to the balance sheet, our cash and cash equivalents as of September 30, 2026, totaled $31.7 million. This concludes my overview of the financial results, and I will now turn the call back to Mike.

Thanks, Ron. As we look forward, we are confident that the commercial reset we have undertaken is both necessary and timely. By fortifying our sales organization and establishing direct accountability across sales and marketing, we are ensuring that our commercial engine is operating at full strength as we enter a catalyst-rich period in 2027. Specifically, we continue to leverage the strength of our peer-reviewed prompt data in advance of our landmark PROTECT trial in collaboration with the University of Oxford. which carries the potential to transform the market landscape for GPS in the active surveillance setting. Furthermore, we remain on track to roll out our strategic AI initiatives in the first half of 2027 which will build on the evidence-based excellence of our precision diagnostics and deliver meaningful incremental value to both our urology and pathology stakeholders. This company has a proven track record of execution. We remain confident in and fully committed to returning to the exemplary level of sales execution that has been the hallmark of our results over the past four years. We are confident that we are well positioned to return MDX Health to sustained top-line growth and operating profitability. We remain a growth company focused exclusively on urologic cancers, and we will continue to build our unmatched vertical of clinically actionable precision diagnostics, confirm, GPS, and exoMDX for our customers and patients across the entire prostate cancer continuum. And as always, we carry a profound responsibility to all of our stakeholders, including our patients, clinicians, Payers and Shareholders. Thank you for your continued interest in and support of MDX Health. And I will now turn the call over to the operator for questions.

Thank you. If you'd like to ask a question, press star 1 on your keypad. To leave the queue at any time, press star 2. Once again, that is star 1 to ask a question. We'll take our first question from Thomas Lattin with Lake Street Capital. Your line is now open.

Hey, good afternoon, guys. I appreciate you taking the questions. First question, with respect to the restructuring of the commercial organization, was there something specific that you were trying to address, Mike, or was it more of just a general reinvigoration of the team?

Yeah, Thomas, my comment on the with my vertical comment, right? I think we had built up the commercial organization in such a vertical way that I think getting closer to the street and the action, I mean, I believe that decisions and strategy should be as close to the street as possible in my experience. And we feel like these adjustments we've made, I mean, we still are confident in the people we had still have going forward, but we've made a couple of changes. on the marketing side and we're confident that pulling that together and setting our path into 27, we have good visibility that this will serve us well as we go forward. So it's really an adjustment in our structure that we think will allow for that. It's worked. It's not like it was broken, but we think it's time. We're taking the opportunity at this time to adjust it for those reasons.

Got it. And then with respect to the hiring, just in your experience of having obviously normal kind of course of business turnover historically, Mike, how long do you think it'll take for the new batch of reps coming in this quarter to be up and running and kind of contributing the way that you would like them to be? Is it over the course of a quarter or two? Are we talking longer than that? And I know you're not providing guidance, but I'm assuming they're not going to be contributing a whole lot to the fourth quarter. But then how long into 2027 should we expect for them to get up and running?

Yeah, Thomas, I get the question. I think you hit on it, right? I mean, we have examples of depending on the profile of the rep that comes in based on their experience in the territory, the call point similarity, if they're urology focused. I'd like your quarter or two, right? So to your point, like we're not expecting it to become obvious in Q4 candidly, but we would expect as we come into 27 that, as I noted, that we expect to see and be able to guide to, which is obviously we're in this no guide position right now, which I think you understand. But we feel confident that at the beginning of the year, we'll be able to put out a view of 27 that will provide our view of the year. And to your point, we would expect that to be a linear acceleration of return to growth throughout 2027, Q1, Q2, Q3, Q4. Got it. So one to two quarters, I like that for you.

Appreciate that, Mike. Thank you, guys. Thanks, Thomas.

Thank you. Our next question comes from Dan Brennan with TD Cowan. Your line is now open.

Great. Thank you. Thanks for the questions. Maybe, Mike, so you said confident, obviously, after the Salesforce has kind of filled in some of the changes you made, you'll grow in 27. I know you're not guiding, but I'm just wondering, like, if you're down 40% in the fourth quarter sequentially, maybe the growth's a little easier. Is there any way just to frame without a guide, like how we think about like fourth quarter versus third quarter? Because I think when we get there, it'll be important for the stock.

Yeah, Dan, I mean, you know, we're not guiding the Q4 right now, but, you know, to Thomas's question, right, we don't expect heroic evidence, right? We've The reps, our turnover accelerated through Q3. To my comment, we've been aggressive and fortunate in our back filling, not like first rep we see, we hire. I think our process has not changed with our diligence on the rep and the type of profile and experience and performance appetite that we want. I don't have a problem saying our goal ultimately is to get back what we had demonstrated for 18 quarters in a row, which is 20% top line growth. That will not be guided too likely in 27, of course, but that acceleration that we expect beginning Q1, Q2, Q3, Q4, your point's well taken on the comps, but we're confident that it starts to look like it did before as we go through 27.

got it and then um is there any call you can provide and just like the level of turnover that you've seen just so we can get a sense in terms of whether it's absolute numbers or just percentage of the sales force that turned over just to get a sense of kind of how much you're rebuilding from yeah I mean we haven't and we won't disclose exactly the the the numbers just um for good form but you know I think I've said to you and I've

have commented in my experience with really high-performing sales organizations and whether you want to look at the GE or Stryker models of old, if you're turning 10% even to 20% of your sales organization over a full year period, I always view the sales organization as you kind of got, it's a rule of threes, right? You've got your high performers, those that are getting to that position, those that you're working to get there. If you made the assumption that that accelerated materially over that, it was a profound challenge that we had that was catalyzed by the resolved development and accelerated through Q3.

any color just obviously you guys sound good you're rebuilding it now any color on kind of the you know the messaging like from before the changes occurred your ability to retain and kind of hire and now are you having to do things differently in order to get people to come obviously the stocks you know gotten hit and I'm just wondering kind of the impact and the ability to convince sales people in the vision yeah I get the question

and of course that was a focus I don't want to say conservative it's a very very reasonable question we did not see that right and I think that I give credit to our our sales managers and our process in looking at the talent and the profile you know we we are so focused on this we didn't need this to to drive that but it's always about selection development and retention So on the selection side, we have not compromised that. And my comment is that I am very, very encouraged at the rate in which we've been able to attract and hire the same quality of rep that drove that performance over the last four years based on our model and how we view what it takes. So that was step one. and I think we've, I would say we've virtually cleared that step one hurdle based on the work of the sales managers. And so that sets us up to bring them all on board, which we are. I won't give exact numbers of how much progress we have there, but we're very confident that's completed and we're fully staffed as we go through Q4 and we enter Q1 ready to go per the previous question about how we expect the ramp to go. and it's important to note that obviously everything got set back right the whole P&L but our OpEx discipline hasn't changed so as we get the top line going again we'll we'll be able to have clear visibility to the return we expected to come out of this year with the EBITDA post the resolved development which set us back on the EBITDA side I was signaling coming out of this year back in the green on EBITDA candidly we were are inside expectations where that would be Q4. So it's not as far off as it may seem based on getting the Salesforce backstaffed, which is virtually completing here in Q4, and just running our same model that we were running prior.

Got it. And I'm going to see one final one in. So just any update on the GPS market? Obviously a lot of volatility from your largest competitor that brought down numbers there. you know, it seems to be a lot of moving factors. Just wondering kind of what you're seeing in the market, what the opportunity looks like. Has anything changed? Thanks, Mike.

Thanks, Dan. Yeah, I mean, I wouldn't comment on anything material. You know, I don't want to comment on anybody else's results. Q3 I would respect is, you know, can always show a little bit of difference. I pick up on your comment that I think there's a reference to where everybody plays well, right? So I've made comments that of our three, of the three competitors in that space. We think one is formidable and does exceptionally well in the high risk RP metastatic space. We believe GPS and have always believed that the active surveillance population is where GPS is the strongest and that we have the data, continue to have the data, accelerating the data to prove that and validate that. And we think that's starting to take hold. Our recent challenges notwithstanding, that's not obvious yet, but we expect that to continue where we were heading before, where we were picking up, we think, the two aspects of growth in that market space from our view is market conversion and share. We think we were running both of those well. We've had this setback. We would anticipate that we return to that same progress as we go forward.

Great. Okay. Thanks, Mike. Thank you, Dan.

Thank you. Our next question comes from Mark Massaro with U.S. Bancorp, BTIG. Your line is now open.

Hey, guys. Thank you for taking the questions. Mike, I appreciate the, you know, the comments about the restructured commercial organization. I wanted to ask a little bit about just some of the numbers. So, you know, Q2, you were a little over 27 million. Q3, you were approximately 23 million. I guess my question is, do you think Q3 marks the low point in the year? Because we're obviously needing to update models soon, and I just wanted to get a sense for, do you think Q3 might be the low point in the year, or do you think it might step down even further here?

Well, Mark, seems like you're asking for guidance or model updates on our goal. Yeah, I mean, I think that that's a reasonable assumption. Our mix obviously affects that, right? I mean, based on our ASPs, GPS is 3850, Medicare rates 3850, 2000 for confirmed, 760 for EXO. So depending on the mix of progress we make in Q4 over Q3, that sorts out our revenue, right? It's called halfway through the quarter. It's too early to... predicted, and we're not guiding to a number for Q4, but we would expect that we've hit Q3 and Q4 running about in line with each other. Yes, we expect that. But that's the nadir, and the recovery begins in Q1, Q2, Q3, Q4 next year. Hopefully that's fair, Mark.

It is. Super helpful. I appreciate that. In your press release you talk about strategic AI initiatives. I'd be curious if some of these are on the product development side, others could perhaps be in revenue cycle management. Can you just speak to some of the initiatives you have there and what your plans might look like?

Yeah, Mark. I can to a certain degree, right? We kind of view AI in two ways with MDX Health, right? We view it as an engine for the company. We've made, we brought a new leadership on the IT information side about a year ago, and the progress we've made on AI, and your point's well taken, right? We have a lot of AI improvements or opportunities that we are running right now that exactly what you stated, right, that can influence our laboratory operations, our territory CRM customer information that informs our incentive comp plans, our quota setting, our CRM and our customer retention, right? Our business, not unique to us, is so important that we focus on both customer retention and growth. and then the third component is on the product side which I've noted that our partnership there we think is maybe a little bit of a different model that's been taken where there's an AI standalone company or there's a company like us that partners with an AI company. We're partnering with another database of digital pathology samples of GPS that we have hundreds of thousands of samples and they have through a pathology service group that we think can deliver. And again, I referred to the fact that we expect that to begin to show evidence in the first half of 27. We're very excited about that.

Okay, fantastic. And one last one for me. You know, obviously, the commercial reorg seems to be priority number one. But, you know, in the past, Mike, you've done a nice job of looking in the market and either doing tuck-ins or finding tests to add to the bag. I just wanted to get a sense for whether or not you continue to look in terms of corp dev and continue to look at ways to try to strengthen the portfolio if you find the right type of deal.

Yes, Mark. And what I would say is it kind of goes to my comment about the sales force and the what I would call the supply side of really good reps that are coming as part of our restructure. I think that applies similar to growth strategy, right? I've commented over time with you and the whole audience on this call that we were always looking out and saying, well, two aspects of it, right? How do we What do we see that we think is interesting and how do we avoid that? How do we let that happen or how do we miss that? That kind of flipped over the last two years to inbound. I would say that regardless of the stock price, two things we're seeing that are very encouraging is our ability to restructure our sales organization with that being in the background and the dashboard of opportunities that are coming to us for anybody who's looking at a partner looking for a partner in our space I think still views us as an absolute must stop to pursue partnerships relationships what you're referring to in our in our experience with two acquisitions or tuck-ins or resolve being a developed product we're confident that that at this point is unchanged that's great thanks for all the color Mark thank you

Thank you. We'll go next to Bill Bonello with Craig Hallam. Your line is now open.

Hey, guys. Thanks a lot. I feel like maybe I'm living on a different planet than everyone else. But as I look at this, right now it's sort of all about cash. And I guess I'm just curious if you can give us some sense of the expected impact Thank you for joining us. over the next six to nine months and how you're planning on dealing with that?

I can, Bill. So I would say that I wouldn't read too much into the costs associated with restructuring. And I would say that some of the initiatives that I referenced even with AI you would expect us to be looking at you know I've always commented and I think we've demonstrated it where we've been able to hold our OpEx organizationally in a very disciplined way I mean we've doubled our revenue without materially changing our OpEx profile and that allowed for a 30% swing on our EBITDA margin prior to the resolve development that only happens if you've got the operating part of the organization running at that discipline level. The second part of that though is with the commercial organization is looking at efficiencies that we can drive there and we've taken this opportunity to look at that and really understand how we can use information to offset some of the aspects of our business candidly that have been very, very manual. So that's not going to satisfy you from a guide perspective but we don't see a material change to our cost structure unfavorable as we go forward. And while I'm not guiding to that, we are confident that we can look to some efficiencies as we go forward over the next couple of quarters to speak to that. In the third part of your question of what's coming, it's clear our relationship with Exact and Abbott and our debt facility with Orbit, I would just comment that those are our two long-term partners, right? I think they both demonstrated with us as a company that we have worked really well together in a productive, supportive way. And if you made the assumption that we expect that to continue as we navigate through this difficulty, candidly, yes, we do. And probably the only comment I would make at this point, but your question is, A student, and I would respond in that way, like we're not delusional about all the aspects of how we navigate through. We know we will get on the other side of this, both from a performance, from a return to our P&L, and from our track record of doing that. And we're confident that the partners we have that are materially can influence that are, have demonstrated that that partnership is real.

Sure. And then just so I appreciate the cost control piece, and I'd agree, you've held things really flat through growth. I just want to make sure, though, there's no anticipated uptick in cash outflow related to the final stretch of getting the PROTECT study out?

We don't have any material view of that.

And then I'll ask one that has nothing to do with asking you to look forward. This is another shot at GPS. I'm just curious if you saw any decline in demand in your portion of the market following the change in guidelines that occurred at the end of last year.

Well, I mean, the way we reported our GPS or commented on our GPS results, I mean, you can imagine that when we're demonstrating, we were growing post that NCCN. I mean, actually, the NCCN guideline changes go back a couple iterations prior to that, but we didn't see a material effect on that. Now, what we saw was a lot of candidly misinformation related to what those guideline changes said and you know I your embedded question might be related to a couple different competitors one on the AI side and one on nobody has level one evidence in the active surveillance population today I think that has been probably maybe still is misunderstood so that is a competitive space but I don't I don't know that I would pin anything on our performance specifically related to any guidelines change, whether our positive performance or the difficulty that we're navigating through right now. I think the root cause has been noted and the corrective action has been noted.

Okay, yeah, just for what it's worth, I was referring specifically to taking out some of the language related to the low-risk population, but that That is helpful. I appreciate it. Thank you.

Thank you, Bill.

Thank you. At this time, we have reached our allotted time for questions. This will bring us to the end of today's question and answer session, as well as the MDX Health third quarter 2026 earnings conference call. We appreciate your time and participation. You may now disconnect.