Executive Summary

Q2 FY2024 revenue was $0.709M, up 54% q/q from $0.459M as billable testing improved, but down 40% y/y vs $1.192M given the prior-year pharma services revenue and the Mount Sinai billing transition .
Net loss per share improved to $(0.09) from $(0.14) y/y as operating expenses declined to $8.9M (vs. $10.1M y/y), reflecting ongoing cost cuts; management targeted sub-$23M annualized cash burn by FQ3’24 .
Reimbursement milestones were a key catalyst: CMS included kidneyintelX.dkd at $950 on the lab fee schedule, NGS resumed consistent Medicare payments under ICR (318 tests recognized), and kidneyintelX was included in a proposed LCD (Feb 8) with a public meeting on Feb 29 .
Q3 FY2024 update (post-period): revenue was $0.535M with further OpEx reduction to $6.5M; total tests were 806 with 82% billable, reinforcing the operating discipline and payer traction narrative .

What Went Well and What Went Wrong

What Went Well
- CMS pricing and Medicare progress: kidneyintelX.dkd officially included in CMS lab fee schedule at $950; NGS resumed consistent payment under ICR enabling revenue recognition of 318 Medicare-billed tests .
- Cost controls: Operating expenses fell to $8.9M (from $10.1M y/y); management targeted < $23M annualized cash burn by FQ3’24, demonstrating discipline without sacrificing commercial momentum .
- Billing mix/volume: Billable volume was 734 tests (69% of all tests), showing better monetization and collections processes vs earlier quarters .
What Went Wrong
- Revenue still below prior year: $0.709M vs $1.192M y/y, reflecting lower pharma services and Mount Sinai’s shift to commercial billing which reduced billable testing volumes y/y .
- Gross margin pressure: Gross margin of ~32% in Q2 slipped y/y vs ~40% in prior-year period, and the subsequent Q3 showed negative gross margin on lower revenue absorption .
- Call logistics: The company said it would announce the conference call timing separately; a Q2 earnings call transcript was not available in our sources, limiting external commentary and Q&A context for this quarter .

Financial Results

Performance by quarter (USD unless noted)

Metric	Q1 FY2024 (3 mo. ended Sep 30, 2023)	Q2 FY2024 (3 mo. ended Dec 31, 2023)	Q3 FY2024 (3 mo. ended Mar 31, 2024)
Revenue ($M)	$0.459	$0.709	$0.535
Gross Profit ($M)	$(0.043)	$0.229	$(0.066)
Gross Margin %	(9.4%)	32.3%	(12.3%)
Operating Expenses ($M)	$8.846	$8.870	$6.5
Net Loss ($M)	N/A	$8.485	$7.7
Net Loss/Share ($)	N/A	$(0.09)	N/A

Year-over-year (Q2 FY2024 vs Q2 FY2023)

Metric	Q2 FY2023	Q2 FY2024	Δ YoY
Revenue ($M)	$1.192	$0.709	(40.5%)
Gross Profit ($M)	$0.481	$0.229	(52.4%)
Net Loss/Share ($)	$(0.14)	$(0.09)	Improvement

Estimates comparison (Q2 FY2024)

Metric	Actual	Consensus (S&P Global)	Surprise
Revenue	$0.709M	N/A – SPGI consensus unavailable for this ticker	N/A
EPS	$(0.09)	N/A – SPGI consensus unavailable for this ticker	N/A

KPIs

KPI	Q1 FY2024	Q2 FY2024	Q3 FY2024
Total tests	1,297	N/A	806
Billable % of tests	56%	69% (billable volume 734 tests)	82%
Medicare-recognized tests	N/A	318 recognized under ICR	N/A

Segment breakdown

Company reports as a single business focused on KidneyIntelX testing; no segment disclosure applicable .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Annualized cash burn	By FQ3’24	N/A	Target under $23M	New target
Revenue/margins	FY2024	N/A	No quantitative guidance provided	N/A
Reimbursement pricing	Effective 2024	N/A	CMS lab fee schedule price $950 per test	Formalized pricing

Additional reimbursement developments (post-Q2 timing but in near-period context):

U.S. Government added kidneyintelX.dkd to the 10-year GWAC at $950 per result, effective Mar 1, 2024 .

Earnings Call Themes & Trends

Note: A Q2 FY2024 earnings call transcript was not available; the company indicated it would separately announce call timing . Themes below reflect prior and subsequent quarter disclosures.

Topic	Previous Mentions (Q1 FY2024, Q4 FY2023)	Current Period (Q2 FY2024)	Trend
Reimbursement & Medicare	Q1: Working towards broader coverage; CMS pricing recommendation at $950; ongoing payer wins; 56% billable tests . FY2023 release highlighted continued progress and CLFS pricing at $950 .	CMS formally included kidneyintelX.dkd at $950; NGS resumed consistent Medicare payments under ICR; kidneyintelX included in proposed LCD with public meeting Feb 29 .	Improving coverage and payment clarity; catalysts visible.
Cost discipline	Q1: Operating expenses $8.8M with reduction initiatives underway .	OpEx $8.9M; target annualized cash burn < $23M by FQ3’24 .	Continued improvement; burn pathway articulated.
Commercial adoption	Q1: 1,297 tests; sales force build-out; new payer contracts .	Billable volume 734 (69% of tests) with 318 Medicare-recognized; revenue up q/q .	Gradual traction; monetization mix improving.
Government channels	FY2023/FY2024 context: pursuing federal channels .	Proposed LCD in Feb; post-period GWAC coverage at $950 announced Feb 29 .	Expanding access, supportive of adoption.

Management Commentary

“Renalytix Reports Financial Results for the fiscal second quarter ended December 31, 2023… [with] significant progress during the quarter in revenue generation, reimbursement coverage, the publication of real-world evidence and operating cost management, setting the stage for potential future growth.” (Company press release) .
“KidneyintelX.dkd… officially included in the lab fee schedule by CMS at $950 per test… NGS has resumed consistent payment for tests under individual claims review (ICR), allowing revenue recognition of 318 tests billed to Medicare… Total billable volume of 734 tests during the second quarter (representing 69% of all tests…).” (Company press release) .
“Operating cost reductions… with a fiscal third quarter cash burn target approximately 33% less than in the prior quarter and approximately 50% less than in the first quarter of fiscal 2024.” (Company press release) .

Q&A Highlights

No Q2 FY2024 earnings call transcript identified; the company indicated it would issue a separate announcement with call details, and no transcript was available in our document set for Q2 .

Estimates Context

S&P Global consensus for Q2 FY2024 revenue and EPS was unavailable for this ticker in our data pipeline, so we cannot determine beat/miss versus SPGI consensus. As a result, estimates comparison is N/A.
Given Q2 revenue improved q/q on higher billable mix and Medicare ICR payments, but remained below prior-year levels, sell-side models may need to reflect a slower, stepwise adoption curve offset by improving OpEx discipline and reimbursement tailwinds .

Key Takeaways for Investors

Reimbursement foundation is in place and strengthening: CMS $950 pricing, resumed Medicare payments (ICR), and LCD progression are meaningful adoption catalysts likely to reduce payment friction over 2024–2025 .
Operating discipline is tangible: OpEx down y/y; targeted sub-$23M annualized cash burn by FQ3’24 suggests runway optimization without derailing commercialization .
Revenue inflected q/q in Q2 on higher billable mix, but absolute levels remain modest; near-term thesis hinges on translating coverage and billing progress into sustained volume growth and higher realized revenue per test .
Subsequent Q3 update showed continued cost reductions and high billable mix (82%); if maintained, improved unit economics can compound as volumes rise .
Trading implications: headline catalysts around Medicare/LCD decisions and government channels (GWAC) can be stock-reactive; quarterly test volumes and billable mix are critical KPIs to watch for momentum confirmation .
Medium-term: success depends on accelerating provider adoption in targeted geographies, payer contract expansion, and sustaining cost discipline until scale drives margin improvement .

Sources: Renalytix Q2 FY2024 8‑K and press release (including financial statements) ; Q1 FY2024 press release ; Q3 FY2024 press release ; US Government GWAC coverage (Feb 29, 2024) .

Renalytix plc (RNLX)·Q2 2024 Earnings Summary