MDxHealth (NASDAQ:MDXH) reported second-quarter 2026 revenue of $27.2 million from continuing operations, up 16% from the prior-year period and 14% sequentially, as the company cited a recovery in its tissue-based testing business following sales force integration and restructuring tied to its ExoDx acquisition.
Chief Executive Officer Michael McGarrity called the quarter “pivotal” after the company discontinued its Resolve UTI testing business following reimbursement developments in April. MDxHealth completed the wind-down of its Delta Laboratories subsidiary and Plano, Texas, laboratory before June 30, and now classifies Resolve as a discontinued operation.
Revenue Mix and Operating Results
Revenue for the quarter was composed of 73% tissue-based tests, compared with 96% in the second quarter of 2025. McGarrity said tissue-based test volume increased by more than 1,400 tests sequentially, following disruption in the fourth quarter of 2025 and first quarter of 2026 related to the integration of the ExoDx acquisition and changes to the sales organization.
Interim Chief Financial Officer Ron Kalfus said gross profit increased 11% year over year to $17.9 million. Gross margin declined to 65.7% from 68.6% a year earlier, which Kalfus attributed primarily to the mix of tissue-based and liquid-based testing revenue.
The company reported an operating loss of $5.1 million, compared with an operating loss of $1.5 million in the prior-year quarter. Net loss rose 36% to $9.5 million from $7 million. Kalfus said the larger losses primarily reflected headcount and other operating expenses associated with the ExoDx acquisition that were not present in the comparable 2025 period.
Adjusted EBITDA was negative $2.3 million, compared with positive adjusted EBITDA of $1.1 million in the second quarter of 2025.
Resolve Wind-Down Removes Novitas Liability
MDxHealth said the cessation of Resolve operations also eliminated a $10.4 million contingent liability to Novitas from its corporate structure through the wind-down of the independently operated entity.
During the question-and-answer session, McGarrity described the removal of the liability as a “significant de-risking element” for the business. He said the company worked with outside counsel, advisers and its lending partner to complete the process.
The company also said it transitioned all Resolve customers by the end of the second quarter. McGarrity said the effort involved hundreds of customers and thousands of urologists, many of whom were also prostate cancer testing customers.
Management attributed earlier tissue-testing volatility to internal sales force changes rather than competitive pressures. McGarrity said the company had reorganized territories, cross-trained representatives and remapped its customer base following the ExoDx transaction. He said the second quarter marked the first period in which the full sales force could focus on the company’s core testing menu.
Balance Sheet and Outlook
Cash and cash equivalents totaled $19.2 million as of June 30. On Aug. 11, MDxHealth completed a $20 million registered direct placement with existing shareholders. Kalfus said the transaction would have brought the company’s pro forma June 30 cash balance to $39.2 million.
McGarrity said the financing was completed at market pricing without a discount or warrant structure. He said the additional capital provides runway as the company seeks to generate operating leverage through revenue growth while holding operating expenses relatively steady.
MDxHealth reaffirmed its full-year revenue guidance of $110 million to $115 million and said it remains on track to return to positive adjusted EBITDA as it exits 2026. McGarrity said the guidance implies a return to year-over-year growth in tissue-based testing during the second half of the year.
For the second half, McGarrity said revenue growth is expected to be generally linear, although the third quarter can be affected by seasonal patient and clinician activity in urology practices. He said the company expects acceleration in both the third and fourth quarters.
Prostate Diagnostics Strategy
Management highlighted the company’s prostate cancer testing portfolio, including GPS and Confirm, as central to its growth strategy. McGarrity said peer-reviewed data from the Oxford ProMPT study is being received by urology customers and could support broader adoption in active surveillance settings.
The company also continues to work with Oxford on its ProtecT study. McGarrity did not provide a specific timing for the study readout, but said MDxHealth receives regular updates from the Oxford team and has confidence in the project’s progress. The company believes the study could support its goal of establishing GPS as a diagnostic test with NCCN level 1 evidence for patients in active surveillance.
McGarrity also cited ongoing artificial intelligence initiatives, expanded relationships with pathology partners and efforts to increase adoption of the company’s testing pathway among urologists. While management did not provide 2027 guidance, it said it sees opportunities for continued growth in ExoDx, tissue-based testing and AI-supported offerings.
About MDxHealth (NASDAQ:MDXH)
MDxHealth, headquartered in Mechelen, Belgium, with a U.S. presence in Newton, Massachusetts, is a molecular diagnostics company focused on improving the accuracy of cancer diagnosis and treatment decision making through epigenetic biomarker assays. The company specializes in developing and commercializing tests that detect DNA methylation changes associated with urological cancers, enabling more precise risk stratification and patient management.
MDxHealth’s lead product portfolio includes ConfirmMDx and SelectMDx.
