MDxHealth (MDXH) 2026年第二季法說會：營收回升，維持財測指引

重點摘要

• 2026 財年第二季持續營運業務營收年增 16% 至 2,720 萬美元，季增 14%（或 330 萬美元），創下該公司有史以來最大的單季營收增幅。
• 隨著銷售團隊擺脫區域調整、客戶重新整合以及 ExoDx 整合工作的影響，組織切片檢測量較第一季增加超過 1,400 次。
• 毛利成長 11% 至 1,790 萬美元，但毛利率下降 2.9 個百分點至 65.7%，主因是組織切片與液體切片檢測之間的產品組合變化所致。
• 調整後 EBITDA 為負 230 萬美元，相較去年同期為正 110 萬美元。管理層預期隨著營收成長與營運紀律改善，公司在 2026 財年結束時調整後 EBITDA 將重返正值。
• MDxHealth 重申 2026 全年營收指引為 1.1 億美元至 1.15 億美元，代表管理層所設定的 20% 至 26% 成長區間。
• 公司已完成 Resolve UTI 檢測業務的結束清理，關閉位於德州普萊諾（Plano）的實驗室，並消除了對 Novitas 的 1,040 萬美元或有負債。8 月的融資活動則額外籌集了 2,000 萬美元的毛收益。

核心財務業績

所列財務數據不含 Resolve UTI 的歷史業績，該業務目前已被列為已終止營運部門。

業務與營運表現

核心前列腺癌診斷業務在經歷銷售團隊重組及 ExoDx 整合干擾（影響了 2025 財年 Q4 與 2026 財年 Q1）後迎來強勁反彈。管理層表示，之前的疲軟純屬營運面問題，並非公司競爭地位惡化所致。

銷售與客戶服務團隊亦在第二季結束前完成了所有 Resolve 客戶的過渡轉移。管理層指出，這涉及數百名客戶與數千名泌尿科醫生，其中許多人同時也在使用 MDxHealth 的前列腺癌產品。

在組織切片檢測方面，管理層預期成長將受到市場轉換與市佔率提升的雙重支撐。公司特別強調了 GPS 在主動監測群體中的採用率、Confirm 對病理合作夥伴的重要性，以及 GPS 相較於競爭檢測產品所需的組織檢體量更低等優勢。

管理層亦指出經同儕審查的 PROMPT 數據為牛津 PROTECT 研究提供了基礎支持。MDxHealth 設定的目標是將 GPS 打造為在主動監測群體中唯一擁有 NCCN 第 1 級證據的診斷檢測產品，但 PROTECT 研究數據發布的時間點仍不確定。

公司預期其人工智慧（AI）專案將為泌尿科與病理科客戶帶來附加價值，並有可能在 2027 年開始對營收成長做出貢獻。目前尚未提供具體的營收貢獻量化數據。

管理層指引

MDxHealth 維持 2026 全年營收指引於 1.1 億美元至 1.15 億美元不變。管理層表示，此區間代表 20% 至 26% 的成長，並需要組織切片檢測在下半年恢復同比年成長。

公司預期第三季與第四季營收將大致呈線性加速成長。管理層警示，第三季可能會受到患者與臨床醫生季節性活動變化的影響。

MDxHealth 也持續致力於在 2026 財年結束時讓調整後 EBITDA 重返正值。管理層預期頂線營收的持續成長與相對穩定的營運費用將提升營運槓桿，使業務能夠實現更高程度的自給自足。

風險與觀察重點

• 第三季營收進展可能會受到患者與臨床醫生季節性活動變化的影響。
• 組織切片檢測量雖呈季增，但在第二季尚未恢復至管理層預期的年增成長軌跡。
• 營業損失與淨損失擴大，主要歸因於與收購 ExoDx 相關的人力與其他費用增加。
• 毛利率下滑主因是組織切片與液體切片檢測的產品組合變化。
• 牛津 PROTECT 研究數據發布的時間點以及後續指南修訂工作仍難以評估。
• 管理層將 Resolve 的退款/報銷問題視為公司原先成長軌跡遭遇了約 2 至 3 個季度的挫折。

分析師問答亮點

組織切片檢測復甦：管理層將之前的檢測量波動歸因於銷售區域重組、跨領域培訓以及客戶重新劃分，而非競爭壓力。管理層預期第二季標誌著銷售團隊執行力回歸正常化的開始。

下半年營收節奏：公司預期第三季與第四季營收將呈現逐季加速成長，不過第三季的季節性因素可能會帶來一些波動。

資產負債表與資金狀況：在完成 2,000 萬美元融資後，管理層表示公司目前的營運期間擁有足夠的資金跑道。預期營收成長與營運槓桿將提升內部現金產生能力，同時保留與戰略夥伴合作及其他融資管道的彈性。

ExoDx 成長表現：MDxHealth 未提供 ExoDx 的擬制性年增率。管理層表示，2026 財年第四季將是 MDxHealth 納入 ExoDx 後，首次可進行直接同比年比較檢測量的季度。

2027 財年展望：管理層未發布 2027 財年指引，但指出 ExoDx、組織切片 AI 專案以及 PROMPT/PROTECT 數據為潛在成長驅動力。公司表示 AI 可能在 2027 年間開始帶來貢獻。

定價與款項回收：目前的預測主要基於銷量成長。管理層表示平均銷售單價維持穩定，並稱市場准入與營收週期管理專案有助於提高生產力，但尚未將潛在的上行空間量化。

電話會議完整逐字稿

完整財報電話會議逐字稿

管理層陳述

Operator

Hello, and welcome, everyone joining today's MDxHealth Second Quarter 2026 Earnings Conference Call. [Operator Instructions] 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 Fraunces with LifeSci Advisors. Please go ahead.

分析師問答

John Fraunces

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 20-F.

I'll now turn the call over to Michael McGarrity, Chief Executive Officer.

Michael McGarrity

Thanks, John, and thank you all for joining us for our second quarter 2026 earnings conference call. With me today is Ron Kalfus, Interim Chief Financial Officer. Q2 was a pivotal quarter for MDxHealth. Following in the unanticipated reimbursement developments related to our resolve test in April, our Q2 results reflect the strength of our core business, which was precisely what we committed to deliver with our sales force focused solely on this significant market opportunity.

More specifically, we communicated that we expected sequential revenue acceleration from Q1 to Q2. We generated a 14% sequential revenue increase for $3.3 million, representing the largest quarter-over-quarter revenue acceleration in our company's history. We also anticipated a recovery in our tissue-based business following the expected impact in Q4 and Q1, post integration and sales force restructuring from the ExoDx acquisition. We delivered that recovery with the sequential increase of greater than 1,400 tissue-based tests.

We aggressively set a goal to transition all of our resolve customers by the end of Q2, an objective that we achieved while also building deep credibility with our customer base through the unwavering dedication and support of our sales and client services teams. Based on our revenue growth expectations, coupled with exceptional operating discipline, we are now firmly on track to return to positive adjusted EBITDA as we exit 2026.

Following the discontinuation of Resolve UTI testing, we completed the cessation of our Plano, Texas lab operations and eliminated the $10.4 million contingent liability to Novitas from our corporate structure as a discontinued operation through an organized wind down of that independently operated entity.

And finally, we strengthened our balance sheet and cash position through a registered direct financing that generated $20 million in proceeds priced at the market with no discount or warrant structure. I want to express my sincere gratitude to our entire organization for their professionalism and perseverance over these challenging 90 days. In my experience, you were defined not by what happens to you, but by how you respond. Our entire team from sales and client services, the revenue cycle management and laboratory operations, demonstrated incredible character professionalism and commitment to our customers and to each other.

I am immensely proud to stand alongside such a resilient group of professionals who stepped up when it mattered most. I would also like to specifically thank our Plano, Texas team for their unwavering commitment to serving our customers through their final day of operations on June 30. Their professionalism and dedication to our patients was extraordinary, and our entire organization owes them a debt of gratitude for their integrity and service. This company did not suddenly forget how to operate and execute. While our operational strength was clearly on display in Q2, we are confident that our growth trajectory will return to the performance we have consistently delivered over the last number of years. as we move through the remainder of 2026 and beyond.

This confidence is rooted in our high-growth market opportunity, our strong competitive position and our unparalleled suite of clinically actionable diagnostics, supporting clinicians and patients across the entire prostate cancer continuum. Our foundational commitment to focus execution and growth has never been more evident than during our navigation of Q2, and we look forward to continuing that momentum.

Before turning the call over to Ron, I want to thank our shareholders who stepped up to support our mission as well as our customers and stakeholders for their continued trust and confidence in MDxHealth. We are incredibly proud of our team's commitment, not only to our operational and financial performance, but to what matters most, the patient and family on the other side of every single sample we receive. I will follow up with some closing comments and view forward. But first, let me turn the call over to Ron to walk through our second quarter financial results. Ron?

Ron Kalfus

Thank you, Mike. Before I dive into the financial results, I want to briefly frame our Q2 presentation. As detailed in our press release, we have successfully completed the wind down of our Resolve UTI business in Q2 with the permanent cessation of operations of our Delta Laboratory subsidiary and its Plano, Texas laboratory prior to June 30, 2026. Having met the requisite accounting criteria, the Resolve business is now formally classified as a discontinued operation.

As such, all current and prior year financial metrics reflect only our continuing core operations with the historical results of the result business fully excluded. Our revenue for the second quarter ended June 30, 2026 was $27.2 million, an increase of 16% over the second quarter of 2025. Revenue in the second quarter of 2026 was comprised of 73% from tissue-based tests compared to 96% for the same period last year.

Moving below the revenue line, our gross profit for the quarter was $17.9 million, an increase of 11% as compared to $16.1 million for the second quarter of 2025. Gross margins were 65.7% compared to 68.6% for Q2 '25, a decrease of 2.9 percentage points, primarily attributed to tissue versus liquid mix. Our operating loss for the quarter increased to $5.1 million compared to $1.5 million for the second quarter of 2025, primarily driven by increases in head count and other operating expenses related to the ExoDx acquisition, which were not present at this time last year.

Our net loss increased 36% to $9.5 million compared to $7 million for the prior year, primarily driven by operating expenses related to the ExoDX acquisition. We are confident that our guidance and associated revenue growth will absorb this increase in acquired operating expenses and return to our trend of adjusted EBITDA profitability as we exit this year. Adjusted EBITDA for the second quarter was a negative $2.3 million compared to a positive $1.1 million for the second quarter of 2025.

Note that a reconciliation of IFRS to non-IFRS financial measures has been provided in the tables included in this press release. Finally, cash and cash equivalents as of June 30, 2026, totaled $19.2 million. In addition, on August 11, we executed a $20 million registered direct placement with existing shareholders. After taking this transaction into account, our pro forma cash balance as of June 30, 2026, would have been $39.2 million.

This concludes my overview of the financial results, and I will now turn the call back to Mike.

Michael McGarrity

Thanks, Ron. When speaking with stakeholders following our Q1 results, I noted that while the decision to discontinue Resolve was unfortunate, I believe it would likely end up being a blessing in disguise, one that would manifest as an absolute singular focus on the vertical we have built in the urology market in our prostate cancer franchise, in particular. Our Q2 performance represents the first clear evidence of that promise and potential being realized.

From a focus perspective, the peer-reviewed publication of data from our Oxford Pro study is already being recognized and embraced by our urology customers. Furthermore, we see clear visibility into the potential of our landmark Oxford PROTECT study to transform the market landscape, particularly for patients in the active surveillance setting. Our vision is to establish GPS as the only diagnostic test with NCCN Level 1 evidence in this critical patient population, which represents the majority of patients in the prostate cancer diagnostic pathway.

Additionally, we continue to advance our AI initiatives, which will deliver meaningful incremental value to both new and existing customers across our urology and pathology stakeholders. Over the past 2 years, our efforts to establish and expand our reach with pathology partners alongside the urologists they serve have paid significant dividends. We are confident that both confirmed and GPS will continue to resonate strongly with this key constituency through their unique clinical features, benefits and supporting data.

All of this progress in Q2 reinforces our commitment to and confidence in meeting or exceeding our full year guidance of $110 million to $115 million in revenue while returning to adjusted EBITDA profitability as we exit this year. Our culture of quality first and customers always continues to drive our growing reputation for excellence across the urology market. We remain steadfast in our commitment to delivering growth and value, cementing MDxHealth position as the leading precision diagnostics company focused exclusively on our high-growth urology market opportunity.

As always, we carry a profound responsibility to create long-term value for all of our stakeholders, including patients, clinicians, payers and shareholders. Thank you for your continued interest in and support of MDxHealth.

I will now turn the call back over to the operator to open the line for questions.

Operator

[Operator Instructions]

And we'll take our first question from Thomas Flaten with Lake Street.

Thomas Flaten

Mike and Ron, congrats on a nice rebound quarter. Two questions from me. Given the sequential increase on the tissue side, do you think we can conclude that the challenges were internal rather than there being any competitive dynamics that were impacting volumes previously?

Michael McGarrity

Yes, Thomas. I think we we were ahead of that a little bit. I kind of signaled we expected Q4 and Q1 to be a little choppy, really a function of the restructuring of the sales organization, right? We had a territory reorganization and then cross training of the new reps, remapping of the customer base of the combined businesses and that's really what we saw. So we didn't see it and hopefully, Q2 is the beginning of evidence of that, that it would disrupt our position in the market, just more create a little diversion of the focus for that quarter or 2, and we're confident the Q2 signals that we're back to the full sales force focused on our core menu.

Thomas Flaten

Excellent. And then as we kind of go from first half to second half towards your guidance range, do you expect the revenue progression to be pretty linear? Or should we expect some type of fluctuation between Q3 and Q4?

Michael McGarrity

Yes. Thomas, I would say, generally linear, Q3 is always a little bit of a wildcard with some seasonality just based on patients and clinicians flow through our urology customer base. So that being the only potential factor to affect we would expect acceleration in Q3 and Q4 in linear-ish.

Operator

We'll take our next question from Dan Brennan with TD Cowen.

Daniel Brennan

Maybe just the first one, so that it's nice to hear that liability. I think that was there from the Texas Medicare case is kind of off the books now, I guess, because you closed the lab. Just wanted to confirm, I guess, could you guys discuss that at 1Q, like this ability to kind of remove that given these actions? Because it sounds like it's a nice -- kind of a nice removal on your part.

Michael McGarrity

Yes, Dan, thanks. I didn't want to get ahead of that. There was obviously a lot of work to occur with all of our outside counsels and advisers on setting that up and consent from our our lending partner, but it came together as we anticipated. We believe the structure, the way we set that entity up allowed for that. We just wanted to make sure that we had it all tight, and we're able to close that up here for this communication. So we believe that is a significant derisking element to our business as we go forward.

Daniel Brennan

Good enough. And then the raise, obviously, getting it done kind of at the market was attractive. Just wondering, can you speak to a little bit how that sets you up? Obviously, your EBITDA positive exiting the year, which is nice to hear. You have this $20 million of additional capital. As we look ahead, I know you've got the debt and you have some payments from Exact still out in the next couple of years. Just how do we think about the need for further capital versus kind of internally generated cash flow?

Michael McGarrity

Yes. I think it's -- I think your last statement is key, right? So we anticipate that based on the scale of our business and leverage we have in the P&L. One of the key execution items we focused on is significant and consistent top line growth while holding our OpEx really straight away for the past 3 years. We expect both of those to continue. And that leverage generates meaningful progress in the business beginning to fund itself from an operating basis. So we're confident that, that gives us pretty strong leverage as we go forward.

This capital, our balance sheet position, obviously provides significant runway for the business. And we've demonstrated, I think, with our partner, Exact, Abbott, flexibility on that. So all those options remain in front of us. But the 2 key points and also the equity option on that, they are stakeholders in the company as well. So we're really counting on the business progress growth continuing to really begins to fund some of those applications. But we have clear runway through that period right now.

Operator

We'll take our next question from Bill Bonello with Craig-Hallum.

William Bonello

I want to circle back on a couple of the topics that have been talked about, I guess, first, again, on issue. So it's great to see the sequential increase, but it looks like volume is still down year-over-year basis, competitors still growing in the mid-teens. You did have 1 competitor talk about weakness in the low-risk segment of the market. However, I guess I'm just trying to get a sense of if things are sort of back to functioning on the sales force front without sort of distraction, why wouldn't we think of that being a business that should be growing faster year-over-year. And I know you talked about acceleration, but maybe give us some sense of what do you think the potential is for that business and a more normalized year-over-year growth?

Michael McGarrity

Yes, Bill, I absolutely get the question. I think the risk of pointing to a comp, Q2 of last year was our highest tissue-based quarter. But I don't want to lean too much on that. I think one other note of Q2 when I commented with Thomas on tissue in Q4 and Q1. Q2, one of the things that I was -- I don't want to say concerned about, but required a lot of focus was our sales organization, also in a 6-week period on the back half -- in the back half of the quarter tend to focus on transitioning all of our resolve customers.

And while we didn't disclose the number that -- there was hundreds of customers and thousands of urologists that were using that test. So that lift was significant, probably equal to or more than the restructuring of the sales organization based on the time, and they completed that with all of our customers being successfully transitioned to their acceptance while driving that sequential acceleration. And I get at the flat year-over-year. We're not celebrating that on a go-forward basis. But our guidance as it's set up requires a return to year-over-year growth that we were seeing prior to this.

Our current guide at $110 million to $115 million contemplates 20% to 26% growth, which would suggest that if you look at our 2026 for tissue by quarters, we'd be down 12%, flat and then up accelerated, up accelerated. So I guess, hopefully, that's a fair answer that we expect as we post and discuss Q3 and post and discuss Q4. We would agree, we do think our position in that lower risk category, the active surveillance population we referenced is really gaining strength, and we'll continue to count on that. That's what our sales force will be focused on.

But I give a lot of credit to the team for doing 2 things at once, right, driving the recovery in the business and taking care of all those customers. And it's important to note, virtually all of those resolve customers are prostate cancer customers, so it requires a real focus and goodwill working with our customers to obviously not upset our base, and we think we successfully achieved that.

William Bonello

That's helpful. And just to be crystal clear, were you -- because as we thought through the implications for you and low risk, we sort of could have envisioned 1 of 2 scenarios. One, you're seeing similar, maybe macro level decline in utilization or two, you're taking share. It sounds like from your answer, you're not necessarily seeing any kind of headwind in terms of the utilization? Is that fair? Or I'm putting words in your mouth?

Michael McGarrity

No, I think that's fair. When we refer to our growth on the tissue side, particularly with GPS, I often reference 2 drivers of growth. One is market conversion. In other words, still build, as you know, a significant part of that market opportunity is there for urologists that do not currently use biomarker testing in the active surveillance population and share. I think our growth trajectory over the past couple of years has been driven by both, and we expect that to continue. So it's kind of to -- comparing to the 2 competitors in that space and how they report. It's a combination of are we taking share from them or are we converting the market. And I think the PROMPT data today and the PROTECT data ultimately really help with both, but particularly on the conversion side, hopefully, that holds together for you. But that's an important point that we see is the opportunity.

William Bonello

That's super helpful. And then just one last one. Is it possible to give us any sense of what the liquid volume growth looks like on a pro forma basis that we have some sense of what the underlying because obviously, big boost from the acquisition, but so we have some sense of what the underlying growth is.

Michael McGarrity

I'm not sure -- yes, go ahead.

Ron Kalfus

Bill, I don't think we can because pro forma would be comparing Exo to Select, but we stopped selling Select. So we can't really compare one to the other. It's not like the...

William Bonello

I was trying to think of Exo last year versus Exo this year.

Michael McGarrity

I see. I see. Yes, I get it now. Yes, we're not doing that. It wasn't our as reported numbers, but we've seen -- we're confident that we'll be continuing to drive growth into the Exo product line. And really, we're -- again, with the integration, we're a couple of quarters in, the majority of the Exo business that began to be covered by us, was covered by legacy MDxHealth reps. And so we're confident that this is really the quarter where we begin to see that in Q4 will be the first where we have actual year-over-year comps for a quarter on Exo volume.

Operator

We will take our next question from Mark Massaro with BTIG U.S. Bank.

Mark Massaro

Since we are in the month of August, and we're tidying up our model. I was wondering if you could react to your confidence in perhaps growing 20% in 2027. And if you could just walk us through some of the puts and takes as to how you're thinking about the next full year.

Michael McGarrity

Sure, Mark. Probably premature to provide visibility to guidance for 2027. But I get the question. We would expect -- we think that there's significant opportunity for growth with the Exo business as we go forward. And then on the tissue side, I'll provide more detail around our AI initiative there as well, which obviously would drive largely GPS. But we're very, very confident that that can and will begin to contribute in 2027.

And then the third arm of that would be the PROMPT data in the active surveillance population. When you look at the data from that peer-reviewed publication, we expected to mirror what will come out of the Landmark PROTECT. So I think our urologists today are noting that. That, coupled with the AI initiatives we have gone that we would expect to be supportive as we come out of this year and the next. We think we'll have a basis to provide good growth trajectory, '27 and beyond.

Mark Massaro

That's super helpful. I know -- congrats on the [indiscernible], I guess, as Dan mentioned, you do have some puts and takes with the balance sheet. But I wanted to get a sense for -- in recent years, you've brought in some assets and now you've divested some assets. How are you thinking about the portfolio going forward? I know you're talking about some internal development with the $20 million of cash coming in, how are you thinking about exploring potential tuck-ins? I know in the past, you've been able to bolt on things that really rational and reasonable valuation. So I'm just curious how you're thinking about the potential for an organic growth from here.

Michael McGarrity

Yes. I guess I would answer that 2 ways. One, per your previous question and hopefully, my answer, we're very positive and confident on our current market opportunity. We believe it can support our growth for the foreseeable future based on our initiatives, our discipline on the operating side and our sales force execution. But that said, we're a growth company. And I think I've shared with you and everybody that we run a growth strategy process here. We were always looking out. I would say that, that flipped significantly where I think -- and please take this the right way. It's not meant to be self-serving, but anybody who's looking for partner or opportunity or channel or infrastructure into the urology vertical we're an obvious first stop.

So I want to be careful here. I think you and I discussed don't get too far ahead with the potential opportunities for growth, but we'll be very disciplined as we have in the past. And for right now, in the near term, for sure, we are focused on execution of the opportunity we have in front of us in clearing what I said this resolved development was, was probably a 2 to 3 quarter setback from our previous trajectory. We've got 1 quarter posted. We look forward to posting Q3 and Q4. And then I think 2027 and beyond comes more clear, and then we can revisit how we think about growth there. Definitely, opportunities there. We just want to be disciplined.

Mark Massaro

That makes perfect sense. If I can squeeze one more in. I wanted to ask some of the other lab testing companies have seen benefits from revenue cycle management initiatives, collecting claims from prior periods. And other companies have been sort of winning some additional commercial payer coverage and the like. I know there's a lot of focus on volume growth, but I just wanted to get a sense for is there any juice to squeeze on the ASP side?

Michael McGarrity

Well, as I think you know, but just to be clear, our projections, the way we build our model is based on our expectation of unit growth. But we view our market access managed care team and our RCM team as productivity engines for the business as well. So while I'm not guiding to pick up there, I think we've seen stability in our ASPs. And I guess for -- based on some of the dynamics in the reimbursement landscape across the industry unrelated to Resolve, but just in general, we're confident that we've got good discipline there. And yes, I mean we consistently -- the data helps, Mark, as you know, right?

So I think when you look at some of the initiatives that we have even our AI initiatives. And there's some opportunity there from both the PROMPT, PROTECT as well as the way we'll end up positioning our AI to support that aspect of our business, but nothing to project to right now.

Operator

[Operator Instructions]

We'll move next to Matt [indiscernible] with William Blair.

Unknown Analyst

Mike, you referenced last quarter and this quarter, the notion is sort of uplifting in the skies. And you've also last quarter made quite a bit of progress on the Exo integration. Certainly, the sequential improvement in revenue maybe is the obvious KPI that would be a marked from that. But just curious, in terms of other internal KPIs, whether it's sales force productivity, account touch point, utilization, anything else that you're seeing kind of underneath the hood that suggest to you those things are moving in the right direction and perhaps that has given you additional confidence on the ramp at the back half of the year?

Michael McGarrity

Yes, Matt, I think I don't want to -- I think there's nothing we don't metric and measure here with regard to the way our business builds our opportunity, and I don't want to disclose all of those, but we look at everything from the way our physicians adopt our menu with the goal of selling our full pathway solution to the way they adopt within a large [indiscernible]. In other words, you get a few of them to buy into our pathway in a reliable way, where it's -- internally, we call it compliance to our pathway. And then the other component to it is what I noted in my prepared comments, which is the influence and impact of pathology, which really has made a difference.

There's -- I'll just be brief here. But there's a couple of features of GPS in particular that really resonate with pathology, right? It requires significantly less tissue than the 2 competing tests. And once pathology understands the value of confirmed that it's not proving the pathology read was wrong, it's the limitations of biopsies. So all those things work with what we track to say, yes, we're getting pickup here. It's sustainable, it's sticky, and it helps actually create the model for our sales organization, our medical science liaison team. We have pathology supporting our resources that all work together to give us the data that suggests it really helps us build our model and definitely our forecast as we go through this year.

Unknown Analyst

Okay. And then just on PROTECT, I -- just sort of the way you described it today, the notion of clear visibility into that. Just wondering if there's anything that you're seeing is giving you more confidence. And I think that is reading out early next year. But I guess maybe just confirm that, that's still the time line and kind of what you anticipate the response might be from the physician community once you get that out there?

Michael McGarrity

Yes. So I think I've hesitated to give time lines there. But what I would say is we are in our clinical scientific affairs team works directly with Oxford. I mean we have consistent regular updates with them. They're almost a project management team, coupled with our CSA and project management teams working in collaboration. So it gives us confidence every every month that we're making progress there. It's difficult to handicap the timing of the readout. And then the secondary benefit would be the guideline work that we'll do on the other side of that.

So based on our KOL network that, that group has established, are somewhat influencer reach into the NCCN and the reputation and say of Dr. [ Handy ] and the Oxford team here that gives us our confidence. Each quarter, I'll provide a better visibility as to how we think that comes timing-wise. But I think the last comment I'll make on that is that the PROMPT -- getting the PROMPT published in a peer-reviewed manner does provide really good foundational view of -- this is what we expected. This is what they somewhat mandated that we do the PROMPT first before they turn on the PROTECT cohort, which is the most valuable one in the world.

In hindsight, that was the right thing to do because it gives us confidence and confidence that GPS is what was and is the right test to prove that out.

Operator

And it does appear that there are no further questions at this time. Thank you. This brings us to the end of today's meeting. We appreciate your time and participation, and you may now disconnect.