Mdxhealth Announces Fourth Quarter and Full-Year 2024 Financial Results

Fourth quarter revenue growth of 28% to $24.7 million

2024 revenue growth of 28% to $90.0 million

68% improvement in adjusted EBITDA in fourth quarter

Conference call with Q&A today at 4:30 PM EST / 22:30 CET

IRVINE, CA, and HERSTAL, BELGIUM -- February 26, 2025 (GlobeNewswire) -- MDxHealth SA $(MDXH)$ (the "Company" or "mdxhealth"), a leading precision diagnostics company, today announced its financial results for the fourth quarter and year ended December 31, 2024.

Michael K. McGarrity, CEO of mdxhealth, commented: "We are pleased to report another strong quarter and a successful year for mdxhealth, driven by consistent execution and robust demand for our precision diagnostics. Our performance in Q4 underscores our commitment to deliver sustainable growth and puts us on track to achieve adjusted EBITDA profitability in the first half of this year. We continue to see strong adoption of our expanded menu of tests, and our commercial team is driving further penetration into our key urology market. With the pending draw of the second tranche under our OrbiMed debt facility, our balance sheet will be significantly strengthened to meet our 2025 earnout obligation to Exact Sciences as well as support the execution of our 2025 business plan. We are confident in our ability to deliver continued growth and deliver value to our stakeholders, including patients, customers and shareholders."

Key Highlights:

   -- 2024 revenue of $90.0 million, an increase of 28% over 2023 
 
   -- Fourth quarter revenue of $24.7 million, an increase of 28% over prior 
      year period 
 
   -- Fourth quarter adjusted EBITDA of ($1.4) million, a 68% improvement over 
      prior year period 
 
   -- Fourth quarter tissue-based (Confirm mdx and GPS) test volume of 11,789, 
      an increase of 50% over prior year period 
 
   -- Fourth quarter liquid-based (Select mdx, Resolve mdx, Germline) test 
      volume of 12,036, an increase of 10% over prior year period 
 
   -- Year-end cash and cash equivalents balance of $46.8 million 

Financial review for the fourth quarter and year ended December 31, 2024

 
USD in '000 
(except per share         Three months ended           Twelve months ended 
data) Unaudited               December 31                   December 31 
------------------   ----------------------------  ---------------------------- 
                       2024      2023    % Change    2024      2023    % Change 
------------------   --------  --------  --------  --------  --------  -------- 
Revenue                24,739    19,398       28%    90,049    70,193       28% 
-------------------  --------  --------  --------  --------  --------  -------- 
Cost of goods         (9,222)   (6,727)       37%  (34,908)  (26,264)       33% 
-------------------  --------  --------  --------  --------  --------  -------- 
Gross Profit           15,517    12,671       22%    55,141    43,929       26% 
-------------------  --------  --------  --------  --------  --------  -------- 
Operating expenses   (20,125)  (18,977)        6%  (79,863)  (71,256)       12% 
-------------------  --------  --------  --------  --------  --------  -------- 
Operating loss        (4,608)   (6,306)     (27%)  (24,722)  (27,327)     (10%) 
-------------------  --------  --------  --------  --------  --------  -------- 
Net loss              (6,841)  (10,720)     (36%)  (38,069)  (43,100)     (12%) 
-------------------  --------  --------  --------  --------  --------  -------- 
Adjusted EBITDA*      (1,378)   (4,371)     (68%)  (14,672)  (19,382)     (24%) 
-------------------  --------  --------  --------  --------  --------  -------- 
Basic and diluted 
 loss per share        (0.14)    (0.39)     (64%)    (1.16)    (1.66)     (30%) 
-------------------  --------  --------  --------  --------  --------  -------- 
 

* A reconciliation of IFRS to non-IFRS financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading "Non-IFRS Measures"

Fourth Quarter 2024 Financial Results

Revenue increased 28% to $24.7 million compared to $19.4 million for the prior year period. Tissue-based tests accounted for 81% and 76% of total fourth quarter 2024 and 2023 revenue, respectively.

Gross profit increased 22% to $15.5 million compared to $12.7 million for the prior year period. Gross margins were 62.7% compared to 65.3% for the prior year period, a decline of 2.6 percentage points primarily attributed to our test mix and timing of payments.

Operating expenses increased 6% to $20.1 million compared to $19.0 million for the prior year period, primarily driven by increases in R&D expenses associated with clinical studies as well as increases in other operating expenses, partially offset by savings in G&A.

Net loss decreased 36% to $6.8 million compared to $10.7 million for the year period, driven by our $2.8 million increase in gross profit as well as a decrease of $2.2 million in net financial expenses.

Adjusted EBITDA was ($1.4) million, an improvement of 68% compared to ($4.4) million for the same period last year.

A reconciliation of IFRS to non-IFRS financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading "Non-IFRS Measures."

Full Year 2024 Financial Results

Revenue increased 28% to $90.0 million compared to $70.2 million for the prior year. Tissue-based tests accounted for 80% and 79% of total 2024 and 2023 revenue, respectively.

Gross profit increased 26% to $55.1 million compared to $43.9 million for the prior year. Gross margins were 61.2% compared to 62.6% for the prior year, a decline of 1.4 percentage points primarily attributed to our test mix.

Operating expenses increased 12% to $79.9 million compared to $71.3 million for the prior year, primarily driven by increases in R&D expenses associated with clinical trials as well as increases in sales and marketing expenses related to our unit and revenues growth and the associated incentive compensation of our commercial sales team.

Net loss decreased 12% to $38.1 million compared to $43.1 million for the prior year, driven by our $11.2 million increase in gross profit as well as a decrease of $2.8 million in net financial expenses.

Adjusted EBITDA was ($14.7) million, an improvement of 24% compared to ($19.4) million for the same period last year.

A reconciliation of IFRS to non-IFRS financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading "Non-IFRS Measures."

Cash and cash equivalents as of December 31, 2024, were $46.8 million.

Outlook for 2025

The Company is maintaining its previously issued 2025 revenue guidance of $108-110 million and confirms its view of expected adjusted EBITDA profitability in the first half of 2025.

Conference Call

Michael K. McGarrity, Chief Executive Officer and Ron Kalfus, Chief Financial Officer, will host a conference call and Q&A session today at 4:30 PM EST / 22:30 CET. The call will be conducted in English and a replay will be available for 30 days.

To participate in the conference call, please select your phone number below:

United States: 1-844-825-9789

Belgium: 0800 38 961

The Netherlands: 0800 94 94 506

United Kingdom: 0808 238 9064

Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1706814&tp_key=e01537d9e2

To ensure a timely connection, it is recommended that users register at least 10 minutes prior to the scheduled

start time.

About mdxhealth

Mdxhealth is a leading precision diagnostics company that provides actionable molecular information to personalize patient diagnosis and treatment. The Company's tests are based on proprietary genomic, epigenetic (methylation) and other molecular technologies and assist physicians with the diagnosis and prognosis of urologic cancers and other urologic diseases. The Company's U.S. headquarters and laboratory operations are in Irvine, California, with additional laboratory operations in Plano, Texas. European headquarters are in Herstal, Belgium. For more information, visit mdxhealth.com and follow us on social media at: twitter.com/mdxhealth, facebook.com/mdxhealth and linkedin.com/company/mdxhealth.

Non-IFRS disclosure

In addition to the Company's financial results determined in accordance with IFRS, the Company provides adjusted EBITDA, a non-IFRS measure that it determines to be useful in evaluating its operating performance. The Company defines adjusted EBITDA as net loss less interest expense, depreciation and amortization of intangible assets, share-based compensation, fair-value adjustments, debt extinguishment costs, amendments related to the Exact Sciences earnout, income tax benefit, and other financial and non-cash expenses. Management believes that presentation of non-IFRS financial measures provides useful supplemental information to investors and facilitates the analysis of the Company's core operating results and comparison of operating results across reporting periods. The Company uses this non-IFRS financial information to establish budgets, manage the Company's business, and set incentive and compensation arrangements. However, non-IFRS financial information is presented for supplemental information purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with IFRS. For example, non-IFRS adjusted EBITDA excludes a number of expense items that are included in net loss. As a result, positive adjusted EBITDA may be achieved while a significant net loss persists. The Company's presentation of expected non-IFRS adjusted EBITDA is a forward-looking statement about the Company's future financial performance. This

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