NeoGenomics (NEO) Q3 2026 Earnings Call: NGS Growth Drives Higher Guidance

NeoGenomics’ Q3 2026 earnings call highlighted accelerating NGS adoption, higher average unit price, expanding margins and increased full-year guidance. The company also outlined its planned CEO transition and the reimbursement pathway for RaDaR ST.

Key Takeaways

• Total revenue increased 11% year over year to $209 million. Clinical revenue rose 13% to $195 million, while nonclinical revenue declined approximately 10% to $15 million.
• NGS revenue grew 29%, supported by 17% volume growth and more than 25% growth in large-panel volumes. NGS now represents about one-third of clinical revenue but only 10% of clinical test volumes.
• Adjusted gross margin reached 49%, expanding by more than 300 basis points. Adjusted EBITDA rose 53% to $18.7 million.
• NeoGenomics raised 2026 revenue guidance to $807 million-$809 million and adjusted EBITDA guidance to approximately $60 million.
• RaDaR ST secured MolDX coverage for immunotherapy treatment-response monitoring in August. Two additional indications remain under review, with management expecting one potential decision by year-end and another by mid-2027.
• Warren Stone will become CEO and join the Board on January 4, 2027. Anthony Zook will remain involved as Executive Chair, with no planned change to the company’s strategy.

Key Financial Data

Business and Operating Performance

NGS remains the primary growth driver

NGS growth was broad-based across hematology and solid tumors. Management attributed the 29% revenue increase to new products, movement toward higher-value tests, commercial expansion and portfolio-based selling.

Large and targeted panels are approaching an even split by volume. Large-panel adoption is slightly higher in hematology and lower in solid tumors, leaving further room for mix-driven average unit price growth.

Five products introduced in 2023 now contribute about 25% of revenue, according to management. The upgraded NEO Comprehensive Heme Panel, which added UBA1 and detection of variants at allele fractions as low as 3%, launched late in the quarter and contributed little to Q3 results.

PanTracer Pro, Tissue and LBx continued to gain adoption. Management said PanTracer Pro can support reflex testing to liquid biopsy when tissue is insufficient or fails, strengthening the portfolio’s integrated workflow.

RaDaR ST reimbursement expands

MolDX coverage for RaDaR ST immunotherapy monitoring opened access across multiple late-stage cancer indications. Management estimated the related U.S. opportunity at just under $4 billion, including several hundred thousand Stage IV patients, approximately 40% of whom are covered by Medicare.

Clinical RaDaR ST volumes improved month over month after the August coverage decision. Approximately two-thirds of orders were within covered indications, and about 20% were covered-indication orders for Medicare patients.

More than 30% of RaDaR ST orders were accompanied by another NeoGenomics test, with most of the attached testing involving NGS. Management said repeat ordering by physicians is also increasing, indicating early workflow adoption rather than only initial product trials.

A regional commercial health plan will cover RaDaR ST for all MolDX-reimbursed indications beginning December 15. If the two additional indications under review are approved, management said reimbursement access would extend to more than 40% of the tumor-informed MRD addressable market.

Operational efficiency and infrastructure investment

Lab of the Future initiatives, sourcing improvements and laboratory efficiencies contributed to margin expansion. NeoGenomics expects to move its hematology NGS portfolio to NovaSeq X during the first half of 2027, with initial margin benefits expected in the second half of 2027 and a larger impact in 2028.

The company spent more than $5 million on new sequencers and data servers during Q3. It also migrated its revenue cycle management platform to XiFin, which management expects to improve workflow automation, collections and bad-debt performance over time.

NeoGenomics ended the quarter with more than 160 sales resources and plans a disciplined expansion in Q4 and 2027. It also introduced a real-time order-status tracker and continued EMR integration work through Epic Aura, with Flatiron integrations planned.

The expanded Indica Labs partnership will support digital pathology and potential AI applications. Management sees opportunities to improve operating efficiency, increase physician capacity and eventually support diagnostic and therapy-selection decisions.

Nonclinical business remains a near-term drag

Nonclinical revenue declined approximately 10% as legacy pharma testing remained under pressure. NeoGenomics continues to evaluate low-margin, commoditized contracts while prioritizing higher-value Pharma Services and Oncology Data Solutions.

Management said Oncology Data Solutions is growing at a double-digit rate and carries high margins. For 2027, the company currently sees the potential for slight overall nonclinical growth, with ODS gains offsetting a low-single-digit decline in legacy pharma, although the expected net change would be only $1 million-$2 million.

Management Guidance

Management maintained its existing full-year assumptions for PanTracer Liquid and RaDaR ST. It expects stronger RaDaR ST momentum in 2027 to support more meaningful revenue contributions in 2028 and beyond.

Longer term, management expects NGS and MRD together could approach two-thirds of company revenue, compared with NGS representing roughly one-third of clinical revenue currently.

Risks and Areas to Watch

• The XiFin implementation temporarily affected receivables. Management expects collections to normalize during Q4 2026 and into early 2027.
• Some RaDaR ST testing is being performed without expected reimbursement, creating a near-term gross-margin headwind.
• Two additional MolDX coverage decisions remain pending, making the timing and scope of broader MRD reimbursement uncertain.
• Preliminary 2027 PAMA rates could create a low- to mid-single-digit million-dollar impact. Management said the average unit price effect should be limited, but the pressure would flow through gross margin and adjusted EBITDA unless offset.
• Legacy pharma contracts and the deliberate exit from low-margin work continue to weigh on nonclinical revenue.
• The exit from one high-volume, low-value customer continues to affect reported clinical volume comparisons. Management expects the impact to diminish through 2027.

Analyst Q&A Highlights

Leadership transition and strategy continuity

Management described the CEO transition as part of a planned succession process rather than a strategic reset. Stone said he had been closely involved in major personnel and strategy decisions and was one of the architects of the current plan. NeoGenomics intends to hold an Investor Day in the first half of 2027.

Sustainability of average unit price growth

Management said approximately two-thirds of Q3 average unit price growth came from the shift toward higher-value NGS testing. The balance reflected revenue-cycle initiatives and pricing gains with managed-care payers. After the comparison effect from the exited customer stabilizes, the company views mid-single-digit average unit price growth as a more normalized level.

Sources of NGS growth

NGS expansion reflects both new-customer acquisition and higher volumes from existing customers. Management cited new products, sales-force investment, bidirectional interfaces and simplified workflows as key contributors. The company regularly competes with large CLIA laboratories but believes its hematology position and diagnosis-to-monitoring portfolio provide workflow advantages in community oncology.

Margin runway

Management characterized Lab of the Future initiatives as still being in their early stages. NovaSeq X savings have not materially affected current results because only a smaller liquid portfolio has transitioned. The hematology migration is expected to provide a more meaningful benefit after the first half of 2027.

Investment priorities

NeoGenomics plans continued investment in sales, R&D and laboratory modernization, partly funded through G&A discipline and enterprise efficiency initiatives. Management indicated that R&D spending could move from a historical 4%-5% range toward approximately 7%, while emphasizing continued EBITDA discipline.

Full Earnings Call Transcript

Complete Earnings Call Transcript

Management Remarks

Operator

Good afternoon, and welcome to the NeoGenomics Third Quarter 2026 Financial Results Conference Call. Please be advised that today's conference is being recorded.

I will now turn the call over to Andrew Brackmann, Vice President of Investor Relations.

Andrew Brackmann

Thank you, Sylvie, and good afternoon, everyone. Representing NeoGenomics here today are: Tony Zook, Chief Executive Officer; Warren Stone, President and Chief Operating Officer; and Abhishek Jain, Chief Financial Officer. This call is being simultaneously webcast and a recording will be available following the conclusion at ir.neogenomics.com.

During this call, we will make forward-looking statements regarding our future financial and business performance, our planned leadership transition, planned future operations and related expectations with respect to timing and performance, future financial position, future revenues, growth potential and expected growth drivers, projected costs and capital expenditures, prospects and plans, estimates of market size and position, the implementation of our new revenue cycle management platform and its anticipated benefits and effects on the timing of our collections, objectives of management and financial guidance.

We caution you that the actual events or results could differ materially from those expressed or implied by the forward-looking statements. These forward-looking statements made during the call speak only as of the original date of this call, and we undertake no obligation to update or revise any of these statements. Please refer to the information disclosed on the safe harbor statement slide in the deck posted on our website, as well as the information under the heading Risk Factors in our annual report on Form 10-K and our subsequent quarterly results on Form 10-Q and current reports on Form 8-K filed with the SEC to identify important risks and other factors that may cause our actual results to differ materially from the forward-looking statements. These documents can be found in the Investors section of our website or on the SEC's website.

During this call, we will also refer to certain non-GAAP financial measures that involve adjustments to our GAAP results. The non-GAAP financial measures presented should not be considered an alternative to the financial measures required by GAAP, should not be considered measures of liquidity, and are unlikely to be comparable to the non-GAAP financial measures provided by other companies. Any non-GAAP financial measure referenced on this call are reconciled to the most directly comparable GAAP financial measures in a table available in the press release we issued earlier today and in the slide deck available in the Investors section of our website.

I will now turn the call over to Tony.

Anthony Zook

Thank you, Andrew, and good afternoon, everyone. We're excited to report another strong quarter, which shows we have the right strategy in place, the right team to execute it, and we're delivering consistent results because of this. Our business is continuing to gain momentum, and our third quarter results show it. Clinical revenue grew 13% year-over-year. NGS revenue grew a strong 29%, and our adjusted gross margins expanded by over 300 basis points. All of which allow for us to increase both total revenue and adjusted EBITDA guidance for the year. We made a lot of progress on key initiatives this quarter and are well-positioned to deliver a strong finish to 2026 and a continuation of these trends into 2027.

Before I walk through the quarter highlights in more detail, I want to acknowledge that this will be my last earnings call as CEO of NeoGenomics. As we announced earlier this month, effective January 4, 2027, Warren Stone, our current President and Chief Operating Officer, will become Chief Executive Officer of NeoGenomics and join our Board. I'll support his transition and remain actively involved as our new Executive Chair.

We shared 3 messages at the time of transition announcement that I want to reinforce. First, these roles cement our leadership team well into the future. Warren, Abhishek, and the broader leadership team in place have helped drive our recent progress and will continue to do so. Second, this change comes from a position of strength. Succession is best done when the business is performing at or above expectations, which is exactly where we are. Warren has earned this promotion, and I'm confident that he's the best person to lead NeoGenomics well into the future. Finally, with our strategy firmly in place and not changing, now is the time to accelerate execution and advancement of that strategy. Warren will remain focused on the same value drivers that our team has been fixated on, and he'll speak to that in a moment.

As I step into the role of Executive Chair, I see great opportunity for NeoGenomics over the coming years as our business shifts to higher value, advanced testing modalities. Today, NGS represents about 1/3 of our clinical revenue and only 10% of our clinical volumes. Over time, we expect NGS and MRD together to ultimately approach 2/3 of our revenue. With that inversion, we see the potential for durable and accelerating revenue growth, which will also drive disciplined margin expansion, just as we saw in the third quarter. We'll continue to seek ways to remove operational complexity, upgrade our infrastructure, and invest where we see the highest ROI, namely in our clinical business across the NGS and MRD franchises.

Now let's get into the third quarter highlights. Total revenue grew to $209 million, up 11% year-over-year, and ahead of our expectations of approximately 10% growth. Our entire clinical business, which makes up roughly 93% of our revenue, is gaining momentum and exceeded our expectations. This is driven in large part by strength in NGS, with its higher margin revenue growing 29% as strong trends across both heme and solid tumor continue.

On the much smaller nonclinical side, quarterly results met our expectations, though still represented a modest headwind to total revenue growth, declining approximately 10% or $1.5 million year-over-year. As a reminder, our nonclinical business is made up of 2 parts: One, our high-margin oncology data solutions business, or ODS, which is an emerging opportunity for us, selling proprietary real-world evidence to pharma customers; and two, our Pharma Services business, which supports customers through drug development and clinical trials, and historically has been comprised of legacy lower-value tests.

Looking ahead, as we have done in all parts of our business, we continue to evaluate the low-margin commoditized contracts in our legacy pharma testing, which are not strategic to our business. However, we remain committed to more high-value services which move us up the pharma value chain.

On the margin front this quarter, we again saw significant improvement. Adjusted gross margins expanded by over 300 basis points, driven by mix shifts, strong AUP growth of 11%, and Lab of the Future initiatives. Together with operating expense discipline, this drove adjusted EBITDA to $19 million, well above our expectations.

Beyond our financial results, we achieved several important business milestones in the third quarter. In August, RaDaR ST received MolDX coverage for immunotherapy treatment response monitoring, our third Medicare-covered indication and a cornerstone of our MRD launch. We continue to expect 2 additional indications to be granted reimbursement by MolDX, one potentially by year-end and the other by mid-2027. Warren will discuss recent customer feedback and other payer successes shortly. Separately, we continue to advance Lab of the Future initiatives and investments in digital transformation, including upgrades to sequencers in our revenue cycle management system.

Lastly, our pipeline continues to advance, and we expect several tests and upgrades to move closer to clinical availability in the coming quarters and years. In the third quarter, we upgraded our flagship NGS test, our NEO Comprehensive Heme Panel, to include UBA1 and to detect variants at allele fractions as low as 3%. These additions, along with turnaround times as fast as 8 days, further differentiate the test. In MRD, our next-generation whole gene assay remains on track, with data generation expected next year and a potential clinical launch in 2029.

In sum, this was another strong quarter for NeoGenomics, with our team of over 2,400 individuals delivering the consistency that investors expect. And as Warren takes over as CEO in January, I expect that he and the team will continue to execute on the objectives in front of them.

With that, let me turn it over to Warren.

Warren Stone

Thank you, Tony, and good afternoon, everybody. I want to begin by thanking Tony, our Board, employees, and the shareholders for their confidence in me as I take over the CEO role early next year. I'm excited and grateful for the opportunity to lead NeoGenomics, something I've prepared for during my time with the company.

Let me start by sharing a bit about what inspires me about the opportunity ahead. At NeoGenomics, we are a pure-play precision oncology company focused on the community, where approximately 80% of patients seek treatment. Today, we estimate roughly 60% of patients are still not receiving advanced comprehensive genomic profiling, which could lead to improved treatment decisions and outcomes. We have the opportunity to be the company that brings these tests to more patients through our leadership in hematology, our trusted position in the community providers, a broad test menu that spans diagnosis to recurrence monitoring, and our growing oncology field force. Now, it's about leveraging our strength and momentum to advance the execution of our strategy and accelerate value creation.

Our focus areas remain consistent, delivering durable NGS growth, driving MRD uptake with RaDaR ST, and investing in our business while driving profitability through operational excellence. I'll briefly touch on each of these today. First, let me begin with NGS, which we view as our key value driver. In the quarter, NGS grew 29% and volumes grew 17%, with large panel volumes growing above 25%. We view these trends as durable, based on new product launches, mix shifts to higher-value tests, and our integrated portfolio offerings.

In hematology, new therapies are driving demand for our tests, and we have upgraded our flagship NEO Comprehensive Heme Panel as we continue to drive -- deliver industry-competitive turnaround times. In solid tumor, PanTracer family, inclusive of Pro, Tissue, and LBx, are seeing strong uptake while driving halo effects across the entire portfolio. LBx in particular, is seeing increasing utilization and managed care reimbursement tailwinds following the MolDX reimbursement decision earlier this year. In total, we estimate large panel therapy selection penetration in the community setting to be around 35% to 40%, leaving substantial room for our business to grow. As we drive more wins with commercial payers and deliver more integrated testing solutions across the entire testing journey, our momentum should grow.

As we view it, our NGS therapy selection and expanding portfolio provides us a unique opportunity to differentiate ourselves. This becomes even more true now that we're promoting RaDaR ST for immunotherapy or IO monitoring.

A recent customer experience highlights the power of our comprehensive offering. A community oncologist in Texas, frustrated by ordering from multiple vendors for a single patient, worked with our team to standardize testing on NeoGenomics given our breadth of primary diagnosis through surveillance. Now, new patients at this practice start with PanTracer Pro and PanTracer Liquid for therapy selection, followed by RaDaR ST for MRD. The single vendor also allows for faster turnaround time and better tissue preservation. It's a strong example of how our integrated menu sets us apart in the community oncology channel and drives multiproduct adoption.

Next, in MRD, we're confident in the opportunity and the foundation that we are setting. Early launch indications are encouraging. Over 30% of RaDaR ST orders are accompanied by other NeoGenomics tests. Approximately 2/3 are in indication, and about 20% are in indication orders for patients on Medicare. Clinical RaDaR ST volumes continue to improve on a month-over-month basis following the August decision by MolDX to reimburse RaDaR ST for IO monitoring in late-stage cancer patients. IO monitoring is a critical piece of our foundation for a successful RaDaR ST launch, with what we estimate to be a U.S. market opportunity of just under $4 billion, including several hundred thousand Stage IV patients, of which approximately 40% are on Medicare.

Looking ahead, we expect further progress on the reimbursements, with 2 additional indications for RaDaR ST currently under review by MolDX. If approved, these additional indications would expand our access to over 40% of the total addressable market for tumor-informed MRD testing. Moreover, a leading regional commercial plan has informed us that effective December 15, it will cover RaDaR ST for all MolDX reimbursed indications. While clinical revenue will take time to ramp, as we further unlock commercial opportunities over time, we are encouraged by the recent volume trends and oncologists' receptivity to the test and expect growing momentum in 2027 to support more meaningful revenue contributions in 2028 and beyond.

Finally, we're instilling operational excellence initiatives across our enterprise that will free up dollars for growth investments. These efforts will help fuel investments into high ROI areas like commercial, Lab of the Future initiatives, and product pipelines. In commercial, we ended the quarter at over 160 sales resources, consistent with prior commitments. Given the strength of our NGS business and recent reimbursement wins for RaDaR ST, we plan to further expand our sales force in a disciplined manner in the fourth quarter and into 2027. In addition, we're investing in our vision of delivering a differentiated customer experience. This quarter, we released a real-time order status tracker, which provides improved visibility to expected completion timing of test results to support downstream workflows and patient scheduling. We also continue to improve EMR connectivity through Epic Aura integrations, and in the near future, integrations with Flatiron.

Progress on our Lab of the Future initiatives also continued this quarter. We remain on track to transition our heme NGS portfolio, the largest revenue component of our NGS business, to the NovaSeq X platform in the first half of 2027. Separately, we recently expanded our digital pathology partnership with Indica Labs to prepare for AI's growing role in cancer diagnosis and therapy selection.

In closing, I'm excited about the future. We have a tremendous opportunity ahead to deepen the penetration of precision oncology in the community setting while delivering consistent, durable, profitable revenue growth.

And with that, I'll hand the call over to Abhishek.

Abhishek Jain

Thank you, Warren, and good afternoon, everyone. In my remarks today, I will discuss our third quarter financial results and our updated 2026 guidance. We reported total revenue of $209 million, up 11% year-over-year. Clinical revenue grew 13% to $195 million, driven by a 2% increase in test volumes and an 11% increase in AUP. NGS revenue grew a strong 29% year-over-year, driven by 17% volume growth and above 25% volume growth of our large panel NGS tests. As Warren noted, we are pleased with the consistent durable growth in our NGS portfolio and are excited about the opportunities ahead, driven by product upgrades across both heme and solid tumor, as well as growing adoption of our large panel tests. This mix shift towards high-value testing is also the primary driver of the increase in AUP, with the balance coming from our team initiatives, including managed care pricing gains with payers.

Turning to our nonclinical business, we reported revenue of $15 million in line with our expectations, representing a decline of approximately 10% year-over-year. We continue to see compelling opportunities across our high-margin ODS business, though legacy pharma remains a headwind for us as we evaluate low-margin commoditized contracts while staying committed to offering high-value pharma services.

Adjusted gross margin for the third quarter was 49%, an expansion of over 300 basis points versus the prior year period. Adjusted gross profit increased by $16 million or 19% to $102 million. This was driven by AUP growth, a higher mix of NGS revenue, and continued lab efficiencies driven by our Lab of the Future initiative. We continue to invest in the areas that will help us drive the gross margin expansion. We bought new sequencers and data servers for over $5 million in capital expenditures as part of NovaSeq X transition in this quarter. Also, we upgraded our revenue cycle management platform to XiFin, as Tony noted. XiFin is one of the leading RCM platforms for its ability to streamline and automate workflows, improve collection rates, and reduce bad debt. With a platform transition of this size, we saw a compelling impact on our receivables that we expect to normalize toward the fourth quarter and into early 2027. Over time, we believe XiFin will help us continue to drive AUP improvement and greater efficiencies.

Moving down the P&L, total operating expenses in the quarter were $105 million. Sales and marketing expenses grew 27% year-over-year, as we continue to invest in our sales team to help accelerate growth. And R&D increased 13% year-over-year as our team works to upgrade our on-market tests and advance next-generation products. These increases were funded in part by decreases in G&A spend, which declined by 4% year-over-year. This decline reflects our commitment to reduce G&A expenses as a percent of revenue and an intentional shift in capital allocation within operating expense lines. Adjusted EBITDA was $18.7 million for the quarter, up 53% year-over-year, reflecting strong operating performance and disciplined investments.

Turning to balance sheet, we ended the quarter with $139 million in cash and cash equivalents, down $6 million as compared to the last quarter. Cash flow in this quarter reflects 3 discrete items, the payment of roughly $10 million for the DOJ settlement that we reserved for and discussed last quarter, transient effects from the XiFin implementation, and our continued investment in modernizing and scaling our infrastructure.

Now turning to our 2026 guidance. Given our strong third quarter, we are raising our full year '26 revenue guidance to a range of $807 million to $809 million, up from $802 million to $806 million discussed previously, and representing full year revenue growth of approximately 11% at the midpoint. The key assumptions underlying the midpoint of our revised revenue guidance are as follows: First, our clinical business to grow in the low-teens for the full year, reflecting strong Q3 performance; second, we expect NGS revenue to grow more than 25% for the full year, approaching approximately $250 million in 2026; third, no change to our PanTracer Liquid or RaDaR ST revenue assumptions; finally, we now expect our nonclinical business to be down low double digits year-over-year. For the fourth quarter, this implies revenue growth of approximately 11%, slightly ahead of our prior commentary.

Turning to gross margin, we now anticipate well over 150 basis points of adjusted gross margin improvement for the full year, implying fourth quarter gross margin of approximately 48%. Finally, we are raising our full year '26 adjusted EBITDA guidance to approximately $60 million versus $56 million to $58 million discussed previously, representing year-over-year growth of approximately 40%.

With that, let me turn the call back over to Tony.

Anthony Zook

Thanks, Abhishek. We're making great progress in 2026 and expect a strong finish to the year. Four of the 5 growth catalysts we outlined for 2026 are now behind us, and the fifth, expanded RaDaR ST reimbursement, is well underway, with IO monitoring secured and 2 additional submissions pending. Our priorities from here are clear: deliver a strong fourth quarter, drive durable NGS growth, uptake in MRD, and disciplined margin expansion through operational excellence. We're looking forward to exiting 2026 with momentum, and we're excited about 2027.

Thank you for your continued interest in NeoGenomics. And with that, operator, this concludes our prepared remarks, so you can please open up the line for questions.

Operator

[Operator Instructions] And your first question will be from Dave Westenberg at Piper Sandler.

Question-and-Answer Session

David Westenberg

Congrats on Warren on taking over, and congrats on Tony on being the new Board member. Well, sorry, Chairman of the Board. Yes. I think I just kind of want to ask broadly about the management transition here. I think all of us that follow Neo very well think that Warren is the obvious successor and clearly this is 100% who we would all want to be CEO. Now, saying that, I think Neo's transition and leadership haven't always been seamless. The business doesn't appear to be broken. So can you just talk about some of the timing on this? Why this is -- why we made this decision now?

And then just some of the questions directly for Warren. Can you talk about some of the things that you've been involved with in terms of the management decision over the last couple of years? And as you step into the role, how you're going to communicate the long-term ambition versus keeping things in check. I know during the transition from Chris to Tony, there's a little bit of maybe not the best communication of the long-term ambition of the company. And then last, were there any lessons from that transition from Chris to Tony? I know there's a lot, but I think a lot of us want to know about this Tony to Warren transition.

Anthony Zook

Sure. Dave, I'll kick it off. And then Warren, turn it over to you. I would say there were a lot of lessons learned, Dave, and I think that's benefited us as we've done this transition. I would say first and foremost, relative to the timing of the transition, this was the result of what I thought was actually really good succession planning. There were no guarantees given to anybody. And if you recall, when I came on board, the first thing I did was appoint Warren to his current role, where he would move from leading just the commercial organization to also include lab operations and demonstrate enterprise leadership across multiple functions and as well, representing almost 75% of our employee population. And I will tell you, Dave, that Warren did a marvelous job there. The degree of innovation and change within the labs today is literally amazing, and we continue to gain momentum in what we're doing across the commercial front.

And so, I would say without any hesitation, through my eyes as well as the Board, Warren earned the opportunity. And so, once we knew that we had the right person for the future, then it became a question of what's the right time? And we just believe that we're doing this from a position of strength. By making the transition now, we get continuity for me going back to the Board as Executive Chair, so there's not going to be, with Lynn stepping out and not seeking re-election, there won't be a new chairperson coming in that might challenge strategy. So it just seemed the perfect opportune time for us to do it.

Second, by doing it when we did it earlier in the month, it gave us the opportunity to get in front of all of our leaders, because we already had a senior leadership team scheduled. And there, we were able to guarantee that there would be no disruption from the change, and everybody is fully aligned internally around what we are doing. So I would say the key lessons learned as well is that, Warren and I have been working closely together over the last few years, and we continue to do so. We're joined at the hip relative to the strategy. We'll be very, very much aligned as we go through the budget process in the final quarter. And I think those were the big lessons learned. I was basically handed a budget that I didn't have the same insights that I would have liked to have had. Warren will be able to own this budget himself due to the timing. So that's kind of the macro why, and then Warren, you can give your own perspective.

Warren Stone

Yes. Thanks, Tony. So first, Dave, thank you for the kind words. Appreciate that. I think to answer your question sort of how involved have I been? I think that's a critical question. And I've just come up on sort of 4 years in NeoGenomics, and I'd say my first 2 years, I was very involved in most things. Then over the last 2 years since Tony transitioned into CEO, I'd say I was acutely involved in practically all decisions, certainly those that related to people and strategy. So I really consider myself as sort of one of the architects of the strategy. And I'd say that because it's important. I think we have momentum in the business right now, and I hope the results that we've just reported here in the third quarter actually demonstrate that. And what we want to do is, not only maintain that momentum, but obviously accelerate that momentum. So continuity in the strategy is critically important, and maintaining continuity within the leadership is important as well. So the fact that I've been heavily involved in that process, I feel very confident we are able to achieve that.

So to that point, I think in terms of sort of what is changing, I think maybe the ambition in terms of the value that we can deliver from the strategy as we transition into this next chapter. And I think lastly, your point is, how are we going to keep the community sort of informed around our ambitions and the future? I think that what we certainly are planning on doing outside of investor [ conference ] like JPMorgan is to have an Investor Day in the first half of 2027. A lot of exciting things to share from a portfolio perspective, from a commercial expansion point of view, operational excellence, and we feel it's been 4 years since the last opportunity. It's time for us to do the same again.

David Westenberg

And since that was a long answer, I'll keep it kind of short. Abhishek, I just wanted to know about what MRD and liquid contribution would be in Q4. If you have any, just given the fact that you gave it on the year, there's technically only 1 quarter in the year. Honestly, we're just trying to get kind of a run rate for '27. I know you're not going to give '27 guidance. So I'm going to try my best with kind of looking at that.

Anthony Zook

We would expect nothing less from you, Dave.

Abhishek Jain

Yes, no, again, I think we're not breaking it down to the quarter level for now, Dave. Sorry to disappoint you on that one. We'll provide more color in our Q4 call for that one. But overall, for both liquid and the MRD, our guidance that we gave in the beginning of the year, we're tracking well to those numbers.

Operator

Next question will be from Puneet Souda at Leerink.

Puneet Souda

Warren, congrats. Well-deserved and excited to have you in the spot. And Tony, really solid job as you came into the seat and executed. First one from my side is really, again, AUP growth is a very important part of the story. Came in, again, slightly even ahead of the pre-announcements as we looked at it. Maybe could you elaborate just how should we think about that and the sustainability of that into 2027? I know you're not giving '27, but just the volume growth, 17% NGS, really great, 25% large -- on the panels -- on the larger panels as well, but just wanted to get a sense of the AUP growth sustainability of that.

Abhishek Jain

Sure, Puneet, I can take that question. So AUP growth came in at 11% for the current quarter as we reported in our numbers this quarter. And we had guided in the beginning of the year that overall AUP growth is going to be in the high single digits and the volume growth is going to be in the low single digits. The reason for the AUP growth to be higher and volume growth to be lower was primarily because of this exit of the high-volume, low-value test. One particular customer that basically had to run pretty high volumes in 2025.

So what we are basically suggesting is that, once we kind of stabilize out of this particular dynamic of exiting this high-volume, low-value contract, what we have guided that the volume and the AUP should track back to the mid-single digit, which we have been in the past. So that's the first piece of the question, that AUP growth should, in a normal environment, be around mid-single digit.

Now, on the 11% AUP growth, and from the durability perspective, I would say that we feel that there's a lot of room for us to continue to deliver on the AUP numbers. The reason, number one, is the mix. The 2/3 of the AUP growth is coming from us driving the high-margin, high-value NGS product. And given the fact that our larger panels are even growing strongly within the NGS family, that is actually helping us drive the AUP growth. Now the second piece of the AUP is the RCM initiative. Now, RCM initiative, as we kind of called out in our prepared remarks, we are actually encouraged by seeing some of the recent wins in the commercial payers, and that is basically helping us drive the RCM of the real AUP benefits that we are seeing now. So those 2 pieces kind of actually help us continue to drive the AUP growth.

Puneet Souda

And then, just briefly on the NGS volume growth itself. I'm wondering if you could qualify how much of that is sort of new store sales or same-store sales. Essentially, I'm trying to get to is, are you taking share, or how much of this is just market growth versus taking share? Again, competition in this space, as you know well is there, so -- but you have a very strong position in the community setting. So I just wanted to get a sense of how you're winning there.

Warren Stone

Yes, Puneet, again, firstly, thanks for your kind remarks upfront. I would say I don't have the data specifically broken down. I can tell you that this is not just with regards to growth in existing customers. We're certainly seeing robust new customer acquisition, which is supporting this growth, as well as incremental volumes that are coming in from existing customers, enabled by our bidirectional interfaces that we've put in place to support a simpler workflow and better customer experience.

Operator

Next question will be from Bill Bonello at Craig-Hallum.

William Bonello

I want to come at the growth, maybe. Hopefully, I'm not asking the exact same question that everybody else has been asking. But, obviously, the NGS growth was especially strong this quarter. When I think about it, there's a lot of drivers, including the expanded sales force you implemented. The specialized oncology sales team, and then, obviously, the new products. I'm just wondering if you can give us some sense of the relative importance of those factors. What I'm really trying to get at is, to what extent the new products are already truly kicking in and adding growth? Or is most of the growth still coming from those other factors and the growth from the new products is largely in front of us? I just -- that 25% number you gave, it actually sounded a little bit low to me, and I don't have a base to put it on. So anyway, I think you get the gist of what I'm asking, and then hopefully, I have a follow-up.

Anthony Zook

Yes, Bill, I'll kick it off and then Warren, please drill down a little bit more. I think you were right in your initial talking about the sales force expansion and product introductions, all these things contribute. And I think when you look across the spectrum, I think actually, some of the product upgrades and new therapies certainly were additive to the overall growth rate. What is also nice is that, we're seeing it's broad-based. It's across heme as well as solid tumor. Heme being a larger portion of the business, it's still showing very good, robust growth. And solid tumor is beginning to kick in. It's on a smaller number, but that does help fuel growth trajectory as well.

You mentioned the mix shift to the larger panels and 25% volume growth is really, really strong, especially when you consider the mix shift effect. And then, of course, there is what you mentioned before, the sales force expansion. But any other color, Warren?

Warren Stone

Yes. I think again, I'd say, well, there's no one single factor. If we go back to the 5 products that we launched in 2023, that is contributing about 25% of revenue today, and the actual growth of those 5 products was north of that -- well north of that 25%. They're all large panels that we had introduced in 2023, well north of that 25% that we articulated. So there's definitely still a lot of opportunity in the products.

And then secondly, yes, certainly field force expansion is something that we continue to see as a really attractive investment. We're getting good returns there that's substantiating the growth, and that's why in my prepared remarks, I indicated that we're going to make further investments into the commercial organization to support NGS and MRD that's coming as well.

And then, just our work around customer experience. I will maybe just call that out, both in terms of just taking friction out and our bidirectional interfaces. That channel continues to work very effectively for us, so that's helping accelerate the growth. The only comment that I will make is the upgraded panel that Tony spoke about, our heme panel, that happened very late in the quarter and probably has very little to do with the results that we've actually articulated.

Anthony Zook

Bill, I guess, maybe just to capstone on this, as an organization, you can do anything you want, you just can't do everything you want. And this organization is focused relentlessly on driving our key growth drivers, which NGS is the biggest short-term driver that we have. And so, it is an organizational focus point for all of us. And maybe the final thing is, and Warren's made this apparent in previous conversations, moving from a product mindset to a portfolio mindset, we look for connectivity across the portfolio, and that is certainly having an effect.

William Bonello

And just as the quick follow-up, and I know that the focus is on NGS growth, but we have had a little bit of a drag from discontinuing the low-margin customer -- high-volume, low-margin customer. Can you just remind us when we should start to see that annualize and maybe what a normalized growth rate for the non-NGS portion of the business is on a volume standpoint?

Abhishek Jain

No, absolutely, Bill. And what we have generally called out, this high-volume, low-value customer peak in Q3 of '25. So we basically had the toughest compare with one in this particular quarter. And then this will start to taper off into Q4, which I would say that it will basically start to kind of get muted as we go in Q1 and Q2 of next year. But the whole idea here is that, if we were to strip out basically this particular dynamic and a little bit of the Pathline, the non-oncology testing that we exited, when I do my math, the volumes are growing in the mid-single digit, very similar to how we have seen in the past.

So my sense is that, you will start to see the volume to uptick. For example, the Q4 volume growth is anticipated to be about 3%. So we were at, say, 0 in Q2, we came in about like 2% this quarter, and we are going to be growing at 3%. So you will start to see that the volume will start to normalize in the back half of 2027.

Operator

Next question comes from Mark Massaro at BTIG.

Mark Massaro

Tony and Warren, congrats on your new roles. In some of our recent doc call diligence, we found that there are clinicians ordering RaDaR ST in indications that you don't have reimbursement yet. Can you maybe talk about the strategy there? I recognize the volumes are probably small here, but maybe just remind us, I believe RaDaR is a pan-cancer test. So I'm just curious if you can speak to whether or not some of the indications that they're ordering in, in your view, are close to reimbursement? Or is this perhaps part of a strategy to increase interest in the platform pan-cancer ahead of the reimbursement?

Warren Stone

Yes. Mark, thank you, and thank you for your kind words as well. I think a couple of points I'd like to highlight there. First and foremost, we are actively promoting RaDaR ST for any indication of volumes at this particular point. But IO actually covers a lot of different indications where it's relevant. So it actually has allowed us to proactively broaden our message in the market, not that we're taking all comers, so to speak, but we can take many more indications than we could before, and that's really helped to drive adoption. We've seen a meaningful uptick there as well.

And then I think your other point is that, we are taking orders for indications that we are anticipating because we obviously understand the timing for those, and we're starting to prime the pump there as well, even though we are not actively promoting at this stage. And if you go back to the prepared remarks, 2/3 of our volume today is in indication, 1/3 is [ not ].

Anthony Zook

Yes. Mark, again, this was a conscious effort on our part. When we initially had the good opportunity to reenter the market, we basically had head, neck, and a subset of breast. And so, the reality is, while we were excited, it's still onesies and twosies with an individual doctor. They're not going to start to embed you in workflows and broader use until you have a more expansive indication base. And that's why IO was so important to us, because for the first time, we could start to position the product more broadly. And as Warren said, with the other 2 indications that we anticipate, all of a sudden, we're now talking more to 40% of the TAM, and we no longer have to settle for the onesies and twosies and can go after workflow. So that's why it's such an essential element to secure those as we then head into 2027 from a position of strength.

Andrew Brackmann

Yes, Mark. It's Andrew. Just one other thing I had mentioned here is just the halo effect that we're seeing, right? One of the things that Warren said in his remarks was we're seeing about 30% attach rate from orders with RaDaR. I think that's sort of what we're seeing across the portfolio, right? And it's less about the single product, single indication in these early days, but more about the broad portfolio effect that we're seeing here with RaDaR as an entrance market.

Warren Stone

I think maybe to build on that, the greater majority of that attachment is actually NGS as well. So there's a halo effect you're starting to see come through very clearly.

Mark Massaro

And then my follow-up. In your press release, you indicated that you expanded agreements with multiple commercial payers in some of your new techs. Are any of these with large national health plans? And can you speak to any progress either with PanTracer Liquid or with RaDaR ST?

Abhishek Jain

Yes, I can basically say, Mark, that we are not providing that level of detail. There have been a handful of wins in the last 1 quarter, and I would say the majority of the wins that we are seeing, they are coming in the PanTracer Liquid and for RaDaR. But yes, we are not providing like more details other than that, but we are very interested to see these wins with many of these tests.

Operator

Next question comes from Matt Larew at William Blair.

Matthew Larew

You called out improving month-over-month RaDaR volumes following the MolDX decision. Just curious what you're seeing from physicians that gives you confidence this is a sign of real early adoption perhaps versus initial trialing. And would be curious, both Andrew and Warren's comments around attach, just where you're finding the most attach and kind of workflow synergy. I know, Warren, you briefly addressed it in your response there, but would love to hear a bit more.

Warren Stone

Yes. So maybe just, I think what gives us confidence is, I think one of the things that we track is, not only new physician adoption, how many new physicians are coming on board, how many people are coming back multiple times. And we have in the past sort of looked at somebody who reorders a test 5 or 6 times creates a bit of a stickiness. We saw this when we were trying to drive adoption for NGS solid tumor previously, driving a similar sort of metric here on RaDaR ST. And we're seeing more and more physicians, particularly now in IO setting, that are actually seem to be sending to us on a regular occurrence. So consider that as sort of sticky and adopted versus trialing, would be what I would describe.

In terms of the attach rate there, I was actually doing some due diligence on this before the call, and there isn't a particular trend that linked to a certain indication, whether it's a specialist or a general oncologist. It's pretty broad-based, where a single oncologist may have an attachment with 1 patient, but not for the next 2. So they seem to be using it very selectively at this stage, but equating out to about 30%, which has remained consistent from when we reported it after the first quarter of launch at the end of the second quarter. We were at about 30%, we're still there, and volumes increased meaningfully.

Andrew Brackmann

Matt, I think you were asking also something there on workflow integration, too, across our portfolio, Warren, it might be interesting to talk sort of about from diagnosis through monitoring.

Warren Stone

Yes, I think great call. So I think one of the biggest values that we bring, particularly in a community setting is that, we have this sort of workflow that starts with the primary diagnosis, where we actually get to see the patient or the patient sample first because they need the primary diagnosis. That kicks off all of the downstream work. So we get that first. And more and more of the work that we're doing, particularly with PanTracer Pro, is trying to actually drive an automatic ordering of downstream workflow requirements. So this is a lot of our philosophy is sort of trying to leverage the fact that we get to see the patient first from the primary diagnosis and how can we then attach other downstream testing from that initial testing that we do.

Matthew Larew

Yes, that's really helpful and not to distract from the main stage here, but just on the nonclinical side, it sounds like you're thinking about approaching that differently and there might be some decisions about areas that are worth pursuing versus those that are not. Just curious, do you think that's a business that remains attractive for you long-term and that you can be well-positioned to grow in at some point, perhaps again after you've gone through some portfolio rationalization?

Anthony Zook

I think it's a great question. I would tell you that again where is our focus? Our focus long-term has to be on what our growth drivers are, and our growth drivers are molecular, right? I mean, they're NGS, they're MRD, they'll be whole genome. We do think that the pharma segment overall, longer term, can be an enabler of that growth, right? Because it's a kind of a product, that emerging portfolio that they would find attractive, and it fits nicely into what is our biggest driver, which is our clinical business and those very specific technologies.

So when you look at our emerging database with ODS and what that could look like with a community-based whole genome data set, that could be attractive. When we see how they could enable longer term growth with launch products in NGS and MRD and whole genome, that's attractive. I just don't believe, just like we looked at with our clinical business, we want to continue to pursue the kind of commodity-based bespoke solutions that really aren't going to be supportive of long-term growth and margins. And so, I think we just need to refocus our energies there. But longer term, it's still an area that we want to be supportive and grow through the value chain on pharma, especially the higher tech part.

Operator

Next question comes from Mason Carrico at Stephens.

Mason Carrico

I guess the first one, how are you thinking about the potential impact of the preliminary 2027 rates on the clinical business? Have you guys sized up the headwinds? Do you still think you could grow ASPs in the mid-single digits next year if those were finalized?

Anthony Zook

Yes, Mason, I'll kick that one off and Abhishek, certainly you could dive in if you'd like. I think relative to PAMA, when we looked at the preliminary rates that came across, for us, our Neo exposure, it's relatively low. It's low to mid-single digit millions. Because we enjoy a book of our business that's more client billed. So we have not quite the same exposure that some other companies would have. So knowing that it's in that mid-single digit million, we're confident that we continue to show growth in AUP and other areas of the ASPs over time.

The area that we'll obviously have to sharpen our pencils on is that, while it's only mid-single digit millions and we can absorb a lot of that, it does drop down to EBITDA and through gross margin. So we'll have to get creative in our expense base and making sure that we're making the right investments. But it is not a big headwind for us as we envision it today.

Abhishek Jain

I think you've covered it all, Tony. I think I'll only add to that one, Mason, that at the end of the day, if our AUP growth is mid-single digit, this basically represents a very small portion of that, right? So overall, it will not be meaningful from the AUP growth perspective. It's just that the overall number for the adjusted EBITDA, we will have to basically make up for this number that you would have basically seen as a higher either basically a flow through to the adjusted EBITDA, or would have to basically say, "Okay, do we need to make some conscious choices on our investments?"

Mason Carrico

And maybe for Warren, first, congrats on the new role. I think it was maybe you who touched on this at a past conference or earnings call, but you've talked about a halo effect from PanTracer Liquid on PanTracer Tissue. I was wondering if you could be able to quantify that to some degree, I guess. Are you seeing faster tissue order growth in accounts that have adopted PanTracer Liquid versus those that have not yet?

Warren Stone

I don't have the answer to that question off the top of my head. I'd have to look at that.

Abhishek Jain

I can take a stab at it. Because I was looking at some data yesterday. So what we are seeing is that, based on the PanTracer Pro, now you can actually reflect to a liquid test automatically, right? So what we are clearly seeing is that, our PanTracer Pro orders are going through the roof, and that basically gives us the optionality, basically -- that basically gives us the optionality that if you are not able to perform the tissue, then we are able to reflect on the liquid. So that's the good part. And maybe I'll say not going through the roof. I think go back to our guidance on the Liquid. Basically, we are doing as we have expected on the liquid side of the [ job ].

Warren Stone

I mean, the -- basically -- and this is what happens when finance talks about the growth rate in NGS through the roof. I wouldn't quite quantify it through the roof. It's doing very well, though. We actually see -- it's more the -- we see more the other way around. We seem to start from tissue, and when tissue, we don't have enough tissue or tissue fails, we just reflect the liquid. Yes, we have isolated situations where we have customers that are just using us for liquid and not actually using us for solid yet. And we actually, obviously, working to try and drive adoption of tissue in that particular case. But we do see this as a growth opportunity in terms of the portfolio. When a physician's ordering one and not the other, we obviously actively promote against the other test as well. But PanTracer Pro is our key vehicle here, and it gives them optionality as to where they start.

Operator

Next question comes from Tycho Peterson at Jefferies.

Tycho Peterson

I want to probe a little bit on gross margins. I understand you're obviously taking it up here above 150 basis points for the year. I mean, you've had really 2 strong back-to-back quarters here. Can you maybe just talk on where you see a ceiling for margins as the Lab of the Future efficiency scale? Anything you can quantify on what X is going to do on margins? And then in prior quarters, I think you talked about clinical AUP growth was aided by MCO pricing gains. So is any of the portion of the margin expansion you're seeing now tied to structural payer contract improvements that won't repeat next year?

Abhishek Jain

Yes. On the adjusted gross margin, again, Tycho, we are seeing a solid growth there of 300 basis point increase year-over-year. We finished the quarter at adjusted EBITDA margin of 49%. And what we are seeing is the benefit of the AUP growth, which is primarily driven by the strong uptake in our NGS revenue, which is a high-margin business. That's the first one.

And of course, the second piece is the RCM, where the benefit will be a direct pull-through to the adjusted gross profit dollars.

And the third piece is the Lab of the Future, as you called out. I would say that most of the Lab of the Future benefits are driven by the sourcing and the efficiencies within the lab. We have not yet started to see the impact of the NovaSeq X transition because we've just moved our -- one of the liquid portfolio has moved to the NovaSeq X, but that's a relatively small revenue in the overall scheme of things. But we are excited about the transition of the heme portfolio that we are anticipating will take the first half of the next year. So we should start to see the impact of the NovaSeq X transition in the second half of 2027. And as we roll out the remaining portfolio of the NovaSeq X in the second half of '27, early '28, I would say '28 would become the year when we will start to see a more benefit of the transition to the NovaSeq X.

Warren Stone

Tycho, the only thing that I would say is, although I would consider ourselves in the fairly early innings in terms of Lab of the Future initiatives, et cetera, probably inning 3 or something, and we have a great sort of outlook in terms of how gross margins can expand. In the short-term, the one-offs that we're really cognizant of is just we are running a lot of MRD where we are not likely to get reimbursed, and that will be a headwind from a gross margin perspective.

Tycho Peterson

Follow-up, you had a number of questions on the exit of kind of high-volume, low-value tests. I'm wondering just practically how you are handling that in the community channel, just in terms of retention of the community level relationships where you have account level relationships and you are no longer offering the high-volume commodity tests that those practices need for broader patient population. So how are you kind of managing that practically in the channel?

Warren Stone

Tycho, the high-volume, low-value business that we were exiting was actually not a product that we were exiting, it was one customer that we secured about a year ago, maybe 15, 18 months ago. We decided to no longer do that business with that customer because it wasn't profitable. Those tests are still readily available in our portfolio, and the community channel are actively using them. So this was a one customer scenario, not an overall product discontinuation.

Tycho Peterson

Lastly, just on pharma, you had the question earlier on longer term strategic value of that business. I'm just -- in the near-term, has that segment bottomed? And I guess, just touch on the corrective actions you are taking that could allow it to return to growth next year.

Anthony Zook

Yes. I would say, Tycho, our view relative to '27 hasn't really fundamentally changed, right? We still see that we want to prioritize the key growth drivers that I've mentioned before, the NGS, MRD, and whole genome. We don't just want to pursue new kind of low-value bespoke solutions within that segment. But I would say, in general, we still see the potential for return to growth. It could be slightly positive in '27. We still see our growth coming from the ODS segment. That's showing really good quality revenue. But I would say, the legacy pharma would be low single-digit kind of decline, but net-net, it would be slightly up.

Tycho, again, I would probably just say in general, it's not material really that the '27 guide because, to be up positive growth, we're talking a difference of $1 million or $2 million. If you missed the number, it's by $1 million or $2 million, it's probably not going to be material to how we view the business in 2027. And the real opportunity for the pharma piece is how it can help drive our revenues in '28 and beyond as we bring out things like next-gen MRD and whole genome and things like that.

Operator

Next question comes from Dan Brennan at TD Cowen.

Daniel Brennan

Tony, congrats, and obviously, Warren, congrats. Maybe just one on MRD, what, mid-single digit revenue guide was for this year, right? So any color what it was actually in the quarter? And just thinking through with IO being such a larger market than the first 2 that you have, as Tony alluded to, I would think doubling from $5 million is not a big Herculean task in '27. Any way to think about how much that IO opportunity could mean in '27?

Anthony Zook

Yes. We'll definitely go with the '27 in 2027, Dan. You know my view on that, right? We've got to keep both our feet in this quarter, and we still have a quarter to deliver.

Relative to the mid-single digit millions we posted for RaDaR and LBx, I would tell you that in totality, we're pretty much in line with those expectations to be slight -- maybe even slightly positive. On RaDaR, very specifically, that was broken, if you remember, there were 2 parts of that. There was clinical as well as pharma. I would say on the clinical side, Dan, we like what we're seeing relative to the volumes. Those plans seem to be moving in the direction that we anticipated relative to that key assumption. Now the key is just pulling it through, right? Continuing to beat down the commercial side and securing additional indications would also go a long way. So pretty much in line there.

The pharma adjustment that we said low double digits, that did include a little bit of what was in there for RaDaR, and that was more of contract timing. So I would, again, say on the clinical side, it's pretty much right where we thought we would be. Pharma may be just a hair behind, and that's more on the timing. But in totality between RaDaR as well as LBx, we're on it, not slightly ahead of that mid-single digit million number. Okay?

Daniel Brennan

And then, obviously, NGS, very clearly ringing through is the future growth, future margins. You mentioned the penetration opportunity in CGP, but when you talk to all the large CLIA labs, I mean, they're obviously going after this market extremely hard and the community's important. So any -- can you just give some color about, I know there was a question from Puneet earlier about trying to disaggregate maybe same-store sales growth versus new clients, but is there a way to discuss kind of how often you run into large CLIA labs? What's the overlap of your customers versus theirs? And have you guys discussed any kind of win rates versus them? And if you have, how have those been trending steady, up, down, anything of that nature?

Warren Stone

Again, it's a complicated analysis. I mean, we, obviously, see most of the large CLIA labs in most of our customers. It's seldom that we don't at the end of the day. It's very regionalized in terms of who we bump into. A lot of our business is certainly take away from a number of those players based on our portfolio opportunity, from diagnosis and therapy selection, not MRD. Those discount the fact that we have a foot in the door all the time from the heme side of things, that creates a unique position for us. So we always have that seat at the table, and that's a leverage point for us. They're typically sending high volumes to us. We have couriers arriving every single day to collect samples, and it's a -- our workflow simplification is really a key driver for us. So that's why we're winning, that's why we differentiate. Exactly what the win rate is, I don't have -- relative to different competition, I don't have that data.

Operator

Next question will be from Subbu Nambi at Guggenheim.

Subhalaxmi Nambi

I have a slightly different question on NGS. What share of NGS volume is now comprehensive panels versus targeted? And where do you expect that mix to settle? How much AUP runway is left from the mix shift alone?

Warren Stone

Subbu, are you talking from a volume perspective or revenue perspective?

Subhalaxmi Nambi

Let's start with volume.

Warren Stone

Yes. We are quickly approaching sort of a 50/50 mark now between large and targeted panels from a volume perspective. Slightly so -- and slightly higher volumes on the large panel on the heme side, and slightly smaller, lower volumes on the large panel on the solid tumor side is how the mix is actually breaking out. But the growth rate in terms of large panel, as we indicated, north of 25%, we quickly see the shift taking place. And that's part of what's helping from a mix shift perspective and supporting higher AUPs.

Subhalaxmi Nambi

And this -- so there should be much more AUP runway left even next year as the mix shift continues, right?

Warren Stone

Yes.

Anthony Zook

Yes.

Warren Stone

Yes.

Subhalaxmi Nambi

And then on pricing, how many of the 300 contracts that you have renegotiated since 2Q, how much of that uplift is still ahead of you in 2027?

Warren Stone

I'm not sure. Which 300 contracts are you referring to, Subbu?

Subhalaxmi Nambi

That you guys spoke about renegotiating since 2Q. That you were revisiting all the accounts, and that's how you found out this high-volume, low contract customer that you exited. Or do I have that wrong?

Warren Stone

Actually, maybe Subbu, we do not recall the 300 contracts comment.

Subhalaxmi Nambi

No worries. You noted a 30% attachment rate of RaDaR ST to other Neo tests. What's the internal goal for attachment? And how will you -- how do you plan to get there? That will be it.

Warren Stone

I think the -- we did set ourselves a goal, and we're actually in the midpoint of our goal at this particular point, from an attachment rate perspective. So we're actually seeing quite an encouraging uplift. As you said, at 30%, we are in the mid-range of the goal. However, we have identified a few other opportunities whereby we feel over time we can increase that attach rate further. But not necessarily MRD attached to NGS, it's also the other way around. You're now doing the NGS. You may have a TMB high outcome. Logically, you're a candidate for RaDaR ST with IO, and how can we actually attach from RaDaR -- from NGS to RaDaR? So we're thinking about attachments from both ways. The 30% that we called out is just RaDaR to other testing, where we feel we can also drive it in the other direction, if that makes sense.

Subhalaxmi Nambi

Congratulations again, Warren.

Warren Stone

Thank you, Subbu.

Operator

Next question comes from Lu Li at Bank of America.

Lu Li

So I will keep the question short. I guess, I think you mentioned you're going to increase the MRD investment, including the sales force. I'm wondering, can you give a little bit more color in terms of the size of the investment, and then maybe specific areas that you are going to invest?

And then just another quick one. In terms of oncology data that you see as emerging opportunities, I wonder, like you do have a large data for a while. So, I guess, like what kind of strategy that you're planning to monetize that asset?

Anthony Zook

Yes, maybe just on the first one, and then Warren, you can take the second. Relative to the investment areas for us now and moving into the future, we'll get more specific and give you some metrics for '27 in '27. But the areas that we would continue to invest would certainly be on the sales force side. We're still a little under-indexed, and there is more opportunity for us there. So Warren and his team, and Kristi, they have nicely ramped up the selling resources available to us today, but there's probably more opportunity there. We're not talking doubling or anything of that nature. So it would be a really disciplined expansion on the sales force side, that we'll be happy to share when we get into the February session.

Likewise, we'll continue to invest in the R&D side of our house because any indication growth that we can get for our portfolio serves us, not just in revenue growth, but also bad debt because we can start to collect some money back on these things. So expect R&D to go up from what was in that 4% to 5% range. We're talking now 7%. So a step-up, but it won't be crazy. We'll also continue to invest in Lab of the Future initiatives where we see that we can be really good with our investments and drive margin. So those will be the areas that we'll continue to look to invest.

But I would tell you there'll be some offsets as well, right? We're going to continue to get smart in G&A. We want to continue to drive that down. We have a number of efficiency goals across the organization as well. So it won't be all additive because we still want to have a disciplined approach to EBITDA. So that's kind of a high level of where we're going.

And Warren, on the second part.

Warren Stone

Yes, I think on the data side of things, you're absolutely right. We've been generating data from the testing that we've been doing for many years. Up until recently, and probably the 2023 time frame, most of our data was image data. It wasn't genomics data. So, maybe in terms of what pharma is looking for today, less valuable, the image data than it is genomics data. So since 2003, we started to develop quite a robust database, and we expect that database to grow significantly as we launch the WGS portfolios in 2028 and beyond. So, this is an attractive business for us. It's growing in the double digits, and it's very, very high-margin business, so we're going to continue to invest in there. And actually, the raw material, so to speak, is going to continue to grow at a compounding rate based on our NGS growth rate.

Operator

Next question will be from Mike Matson at Needham.

Joseph Conway

I really appreciate you getting this on. This is actually Joseph on for Mike. I'll just keep it to one, just given that it's late in the call. Maybe just on the Indica Labs partnership. I was wondering if you could give some more color on the breadth of what's being collaborated there. Is this something that maybe we should expect development of an AI pathology tool for specifically in clinical diagnostics? Or is this likely to stay in kind of the research side of it for the time being?

Warren Stone

No. So we've had a partnership with Indica Labs for a number of years. We've actually started this back in 2016, and it's the reason why we have so many images that we actually sell on the ODS side of things right now because they were digitized all the way back to 2016. So we've expanded that. We like Indica Labs because it's an open system, different to other providers. And ultimately, we see 2 primary areas where we're going to get a lot of efficiency. One is operation efficiency, and it's all AI-driven at the end of the day, where we can use AI interpretation of digital images. So that's going to be a big area of focus for us. It's one of the Lab of the initiative -- Lab of the Future initiatives that's going to help, and it's particularly going to free up capacity on the doctor side of things where they do the sign out. And then absolutely, these are going to be AI algorithms which will ultimately be tested to support diagnosis and therapy selection decisions. So we see it both commercially and operationally creating value for us.

Operator

At this time, we have no other questions. I would like to turn the call over to Tony Zook.

Anthony Zook

I'd like to thank everybody for joining us on the call, and I want to personally thank my NeoGenomics teammates for their unwavering commitment to our mission. It's been a privilege to lead this company, and I leave this role with great confidence in Warren, our leadership team, and our strategy.

We'll look forward to updating you on our fourth quarter results and 2027 outlook in February with Warren leading the call. Thank you again, and have a great day, everybody.

Operator

Thank you. This does conclude today's conference call. You may now disconnect your lines at this time. Thank you again for your participation.