Biodesix Q2 2026 earnings: Diagnostic testing growth narrows losses

Biodesix (Nasdaq: BDSX) reported Q2 2026 revenue of $26.9 million, up 34% from $20.0 million a year earlier, while GAAP diluted net loss per share narrowed to $0.71 from $1.56. Diagnostic Testing drove the growth, and an 82% gross margin helped reduce operating and adjusted EBITDA losses despite continued overall unprofitability.

Core financial results

Revenue growth was concentrated in the higher-margin Diagnostic Testing business. Direct costs increased more slowly than revenue, while operating expenses excluding direct costs rose 7%, producing greater operating leverage.

Adjusted EBITDA is a non-GAAP measure that excludes items including interest, depreciation and amortization, share-based compensation, and certain other gains or expenses.

Business and segment performance

Diagnostic Testing represented approximately 94% of quarterly revenue and more than offset the decline in Development Services. The two businesses therefore showed clear divergence during the quarter.

Diagnostic test volumes increased 38% to 20,900. Revenue grew faster than volume because average revenue per test improved, primarily due to expanded payer coverage and continued improvements in revenue-cycle management.

Development Services declined because of the timing of project completion and revenue recognition. Management said the segment’s pipeline supports growth expectations over the remainder of 2026, but no quantitative segment outlook was provided.

Profitability, liquidity, and the balance sheet

Gross margin increased to 82% as higher testing volumes, better average revenue per test, and laboratory workflow optimization lowered cost per test. Operating expenses excluding direct costs were $27.4 million, up 7%—substantially slower than revenue growth—which helped reduce the operating loss.

Interest expense remained significant at $2.0 million, compared with $1.9 million a year earlier, and accounted for most of the difference between operating loss and net loss. Long-term notes payable totaled $46.8 million at June 30, 2026, compared with $47.4 million at the end of 2025.

Cash and cash equivalents reached $30.0 million, up 17% from March 31 and from $19.0 million at December 31, 2025. However, the quarterly increase included $6.5 million of net proceeds from the company’s at-the-market equity program, meaning the improvement in cash was partly financing-driven rather than solely a result of operating performance.

FY 2026 guidance

Biodesix maintained its full-year revenue outlook and gross-margin target. The midpoint of revenue guidance implies approximately 25% growth over 2025, while the adjusted EBITDA outlook remains directional rather than quantitative.

Management expects progress to depend on higher sales productivity, additional clinical evidence supporting the Nodify Lung tests, Development Services pipeline growth, and continued operating leverage.

Recent insider transactions

The supplied insider data shows 28,521 shares purchased and 9,052 shares sold over the latest six-month period, resulting in net purchases of 19,469 shares across 22 reported transactions. Separately, five dated February 23, 2026 sales disclosed a price of $12.78 per share and the following reported transaction values; individual share quantities were not provided.

These records establish the transactions but do not disclose a reason for the sales, so they do not by themselves indicate management’s view of the company’s prospects.

Risks investors need to watch

• Profitability has not yet been achieved. Biodesix still recorded a $7.3 million net loss and a $3.2 million adjusted EBITDA loss, despite substantial year-over-year improvement.
• Revenue is concentrated in Diagnostic Testing. The business generated about 94% of quarterly revenue, making testing volumes, reimbursement coverage, average revenue per test, and sales-force execution central to the outlook.
• Development Services revenue can be uneven. The segment declined about 29% because of project completion and revenue-recognition timing, showing that pipeline strength may not translate into consistent quarterly revenue.
• Liquidity remains connected to external financing. The quarterly cash increase included $6.5 million from the at-the-market program, while the company carried $46.8 million of long-term notes payable and incurred $2.0 million of quarterly interest expense.
• The Q2 gross margin may not be a permanent baseline. The 82% quarterly result was above the company’s full-year target of approximately 80%, so maintaining the Q2 level is not part of the stated guidance.

Summary

Biodesix’s Q2 2026 results showed that higher diagnostic volumes, improved reimbursement, and lower cost per test are translating into better margins and narrower losses. The next points to monitor are whether Diagnostic Testing can sustain its growth, whether Development Services recovers as projects are completed, and whether operating leverage can move adjusted EBITDA toward profitability without continued dependence on equity financing.