Executive Summary

Q3 2024 net revenue was $12.3M, up 35% year-over-year; test volumes rose 26% YoY and gross margin expanded to approximately 61%, delivering operating income of $1.9M and adjusted EBITDA of $2.1M .
Sequentially, revenue grew modestly versus Q2 ($12.0M), though operating income and diluted EPS from continuing operations stepped down from Q2 ($2.2M and $0.48), reflecting mix/expense dynamics despite efficiency gains .
Cash collections reached $11.3M (+15% YoY), while operating costs per test declined ~11% YoY; the company emphasized ongoing balance sheet improvement via debt paydown ($6.6M additional YoY) .
Management highlighted double‑digit growth in proprietary molecular diagnostics (ThyGeNEXT + ThyraMIR v2; PancraGEN), continued profitability/positive cash flow, and active plans to raise capital and pursue a Nasdaq uplisting—potential catalysts alongside regulatory outcomes tied to Novitas/CMS LCD for PancraGEN .

What Went Well and What Went Wrong

Record quarterly performance: “Q3 2024 represented record revenue and testing volume… continued profitability and positive cash flow,” with net revenue $12.3M, adjusted EBITDA $2.1M, and cash collections $11.3M .
Efficiency gains: CFO underscored reduced operating costs per test (~11% lower YoY) and improved collections driving income from continuing operations of $1.4M, while enabling additional principal payments and balance sheet improvement .
Product traction: CEO noted “proprietary molecular diagnostics tests (ThyGeNEXT + ThyraMIR v2 and PancraGEN) continued to grow by double‑digits… eighteenth consecutive quarter of year‑over‑year volume growth,” reinforcing demand momentum .

Sequential profitability dip: Operating income ($1.9M) and diluted EPS from continuing ops ($0.31) declined versus Q2 ($2.2M, $0.48), indicating near‑term margin/expense pressure despite revenue growth .
Limited liquidity: Cash balance at 9/30/24 was $2.1M, down versus 9/30/23 ($5.0M), reflecting debt paydown and financing cash outflows YTD; sustaining growth likely requires external capital .
Reimbursement/regulatory overhang: PancraGEN coverage remains under review (Novitas/CMS LCD L39365); while CMS granted an extension, reimbursement risk persists as a key narrative driver .

Metric	Q3 2023	Q1 2024	Q2 2024	Q3 2024
Net Revenue ($USD Millions)	$9.1	$10.3	$12.0	$12.3
Gross Profit ($USD Millions)	$5.0	$6.1	$7.4	$7.5
Gross Profit Margin %	55%	59%	62%	61%
Operating Income ($USD Millions)	$(0.02)	$0.9	$2.2	$1.9
Income from Continuing Ops ($USD Millions)	$(0.5)	$0.6	$2.1	$1.4
Net Income ($USD Millions)	$(0.6)	$0.5	$2.0	$1.3
Diluted EPS – Continuing Ops ($USD)	$(0.12)	$0.13	$0.48	$0.31
Adjusted EBITDA ($USD Millions)	$0.36	$1.01	$2.34	$2.08

Segment breakdown: Not disclosed by segment; management cited double‑digit growth in ThyGeNEXT + ThyraMIR v2 and PancraGEN without revenue detail .

KPIs

KPI	Q3 2023	Q1 2024	Q2 2024	Q3 2024
Test Volume YoY Growth (%)	—	+10%	+12%	+26%
Cash Collections ($USD Millions)	$9.8	$10.2	$11.0	$11.3
Operating Cost per Test YoY	—	—	—	~11% lower YoY
Cash Balance at Period End ($USD Millions)	$5.0	$2.8	$2.0	$2.1
Additional Debt Paydown (YoY, $USD Millions)	—	—	$4.6 (LT debt)	$6.6

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q4 2024	None provided	None provided	Maintained (no formal guidance)
Gross Margin	FY/Q4 2024	None provided	None provided	Maintained (no formal guidance)
Operating Income / OpEx	FY/Q4 2024	None provided	None provided	Maintained (no formal guidance)
Capital Markets / Listing	N/A	N/A	Management pursuing capital raise and Nasdaq uplisting (interviewing equity research partners and investment bankers)	New disclosure
Reimbursement (PancraGEN LCD)	N/A	Proposed LCD under review	CMS granted extension to Novitas for final LCD decision; PancraGEN continues to be offered	Update (extended review)

Note: No Q3 2024 earnings call transcript was available in our document set; themes below reflect press releases and 8‑K disclosures .

Topic	Previous Mentions (Q2 & Q1)	Current Period (Q3)	Trend
Product performance (ThyGeNEXT + ThyraMIR v2; PancraGEN)	Continued adoption; record testing volumes	Double‑digit growth YoY; 18th consecutive quarter of YoY volume growth	Strengthening
Reimbursement/CMS (PancraGEN LCD)	LCD under review by Novitas/CMS noted as risk	CMS extension to Novitas; PancraGEN continues to be offered	Ongoing risk; extended runway
Operating efficiency	OpEx down ~14% YoY in Q2; modestly lower in Q1	Operating cost per test ~11% lower YoY	Sustained improvement
Cash collections	Q1 $10.2M; Q2 $11.0M	Q3 $11.3M (+15% YoY)	Improving collections
Balance sheet / debt	Additional LT debt paydown reported (Q2: $4.6M)	$6.6M additional debt paydown YoY; cash $2.1M	Deleveraging; tight liquidity
Capital markets strategy	Not highlighted in Q1; operational focus in Q2	Target capital raise and Nasdaq uplisting (engaging bankers, research)	New strategic focus

CFO: “The Company achieved record test volume, revenue, and cash collections, while reducing operating costs per test… This also supported additional principal payments on our debt agreement, continuing to improve the Company’s balance sheet.” .
CEO: “The Company’s proprietary molecular diagnostics tests… continued to grow by double‑digits in Q3 2024… Q3 2024 marked the eighteenth consecutive quarter of year‑over‑year volume growth… we are now well positioned for substantial continued growth through additional product commercialization and/or M&A activity.” .
CEO on capital markets: “The Company is in the process of interviewing equity research partners as well as investment bankers to assist in raising additional capital… become a Nasdaq‑listed company.” .

No Q3 2024 earnings call transcript was available across filings/press materials; therefore, specific Q&A themes and clarifications cannot be provided from a transcript .

S&P Global Wall Street consensus estimates for Q3 2024 were unavailable for IDXG at the time of analysis; as a result, a beat/miss comparison versus consensus cannot be provided.

Momentum intact: Revenue ($12.3M), gross margin (~61%), and collections ($11.3M) hit records; test volumes surged (+26% YoY), underpinning sustained demand for thyroid/pancreatic diagnostics .
Near‑term trade: Despite revenue growth versus Q2, operating income/EPS from continuing ops declined sequentially, suggesting attention to expense mix and margin cadence is warranted near term .
Regulatory catalyst: CMS/Novitas LCD outcome for PancraGEN remains a principal stock narrative—extension supports continuity, but eventual decision introduces binary risk/reward .
Liquidity/watch capital raise: Cash stood at $2.1M at quarter‑end amid active deleveraging; management’s plans to raise capital and pursue Nasdaq uplisting are key milestones to track for valuation and liquidity improvement .
Execution focus: Continued efficiency gains (lower cost per test) and stronger collections are core to margin durability; monitor whether sequential margin softness reverses in Q4 .
Non‑GAAP lens: Adjusted EBITDA ($2.1M) improved markedly YoY; investors should reconcile non‑GAAP to GAAP given financial items like fair value changes in notes payable .
Portfolio traction: Double‑digit growth across proprietary tests supports the medium‑term thesis around molecular diagnostics adoption; pipeline/CEP tests and potential M&A/commercialization could augment growth if capital plans succeed .