MDxHealth SA (NASDAQ:MDXH) reported its third-quarter 2025 financial results, delivering a mixed performance against analyst expectations. The precision diagnostics company posted solid revenue growth and achieved a significant milestone in profitability, though it fell short on the top-line estimate.
Earnings Versus Estimates
The company's Q3 2025 results presented a nuanced picture when measured against Wall Street forecasts:
- Revenue: $27.4 million, an 18% year-over-year increase but below the analyst estimate of $28.7 million.
- Earnings Per Share (EPS): A loss of $0.16 per share, which was wider than the estimated loss of $0.11 per share.
Despite the earnings miss, the company highlighted substantial operational improvements. The net loss for the quarter was $8.0 million, a 28% improvement compared to the $11.2 million loss in the same period last year.
Market Reaction and Performance
The market's immediate response to the earnings release was negative. The stock traded lower in after-hours activity, reflecting investor disappointment over the revenue and EPS misses. This short-term reaction adds to a period of weakness for the stock, which has seen negative performance over the last week and two-week periods.
Strategic Highlights and Operational Performance
Beyond the headline figures, the earnings report contained several strong operational highlights that point to the company's ongoing transformation.
- Adjusted EBITDA Profitability: A key positive was the achievement of a positive Adjusted EBITDA of $1.0 million, a substantial $4.8 million improvement from a loss of $3.9 million in Q3 2024. This marks a significant step toward sustainable operations.
- Test Volume Growth: The company demonstrated robust demand for its services. Liquid-based test volumes surged 65% year-over-year, while tissue-based test volumes grew 18%.
- Improved Margins: Gross margin expanded to 65.2%, a 4.0 percentage point increase from the prior year, driven by a favorable test mix.
- Strategic Acquisition: The quarter was defined by the acquisition of the Exosome Diagnostics (ExoDx) business from Bio-Techne Corporation. Management emphasized the integration of this business as a top priority, leading to a strategic decision to suspend the germline product introduction to focus commercial resources on the combined portfolio of ExoDx, ConfirmMDx, and GPS tests.
Forward Outlook and Analyst Comparisons
Looking ahead, MDxHealth's management provided full-year 2025 revenue guidance of $108 million to $110 million, reaffirming their confidence despite the elimination of expected germline revenue. This outlook suggests Q4 revenue is projected to be between $29.7 million and $31.7 million.
- Q4 2025 Revenue Guidance (Implied): $29.7M - $31.7M
- Analyst Sales Estimate for Q4 2025: $31.6 million
The company's guidance range brackets the analyst consensus, indicating that management believes it can meet or slightly exceed current expectations for the final quarter. For the full year, the company's revenue guidance of $108-110 million aligns closely with the analyst sales estimate of $112.4 million, demonstrating a credible path to its targets.
For a detailed breakdown of historical and future earnings estimates for MDxHealth, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
