mdxhealth reported a 13% sequential increase in tissue-based test volume during the second quarter, offering an early indication that the company’s prostate cancer diagnostics business is recovering following the integration of ExoDx and restructuring of its commercial organization.
Tissue-based volume across Confirm mdx and GPS mdx reached 12,525 tests. That figure remained 1% below the prior-year period, but the sequential recovery was significant after commercial disruption associated with the ExoDx acquisition and changes to the company’s sales organization.
Management said the company completed the transition of all Resolve customers by June 30 while integrating ExoDx and restructuring its sales force over the previous two quarters. mdxhealth said those activities were reflected in the stronger performance of its tissue-based business during Q2.
The rebound contributed to second-quarter revenue of $27.2 million, up 16% from $23.4 million a year earlier and $3.3 million higher than the first quarter. For the first six months of 2026, revenue increased 14% to $51.1 million from approximately $45.0 million.
At the same time, ExoDx is materially changing the company’s revenue mix. Liquid-based Exo mdx volume reached 13,578 tests during Q2. Tissue-based tests represented 73% of quarterly revenue compared with 96% in the prior-year quarter, demonstrating the impact of adding ExoDx to the portfolio.
The mix change has also affected margins. Second-quarter gross profit increased 11% to $17.9 million, but gross margin declined to 65.7% from 68.6%, with mdxhealth primarily attributing the reduction to test mix.
Expenses associated with the ExoDx acquisition continued to weigh on profitability. Operating loss widened to $5.1 million from $1.5 million, net loss increased to $9.5 million from $7.0 million and adjusted EBITDA shifted to a loss of $2.3 million from positive $1.1 million in the prior-year quarter.
Despite the near-term losses, management expects tissue growth to accelerate during the second half of 2026 and drive a return to positive adjusted EBITDA as the company exits the year. mdxhealth is targeting or potentially exceeding full-year revenue guidance of $110 million to $115 million, representing growth of approximately 20% to 26% from 2025 excluding Resolve.
The balance sheet was also strengthened after quarter-end. On August 11, mdxhealth executed a registered direct placement of 44.05 million ordinary shares at $0.454 per share for $20 million of gross proceeds. Including that financing, the company’s June 30 pro forma cash position would have been approximately $39.2 million, compared with reported quarter-end cash of $19.2 million.
Beyond the commercial restructuring, mdxhealth highlighted the recent peer-reviewed GPS PROMPT results from the Oxford study and ongoing AI initiatives as potential tools for increasing market conversion and share in the active-surveillance population ahead of its PROTECT study.
KEY QUOTES:
“We delivered sequential revenue growth of $3.3 million from Q1 to Q2, establishing a clear path toward meeting or exceeding our 2026 revenue guidance of $110-115 million, which represents 20-26% growth over 2025 (excluding Resolve). Importantly, the commercial team’s successful transition of all our Resolve customers by June 30, coupled with the integration of the ExoDx business and our sales force restructuring over the past two quarters, is reflected in the strong recovery of our tissue-based business in Q2. We expect our tissue growth rates to accelerate further throughout the second half of the year, driving a return to positive adjusted EBITDA as we exit 2026. These results underscore our track record of operating discipline and commercial execution. Combined with a strengthened balance sheet, we are well-positioned to drive sustainable revenue growth and profitability. Finally, our recent peer-reviewed publication of the GPS PROMPT results from the Oxford study, alongside our ongoing AI initiatives, provides compelling support for expanding our market conversion and share gains in the active surveillance population ahead of our landmark PROTECT study.”
Michael K. McGarrity, CEO of mdxhealth
