Great. We're live. Welcome. Day two of the TD Cowen Global Healthcare Conference, 46th annual. I'm Dan Brennan. I follow tools and diagnostics. Pleased to be joined here on the stage with the management team of NeoGenomics. To my left, for those in the audience here live, I have Tony Zook, Chief Executive Officer. To his left, we have Abhishek Jain, who's the Chief Financial Officer, and then we have Warren Stone at the far end, who's the Chief Operating Officer. Gentlemen, welcome, and thank you for being here.
Thanks for having us.
Thank you.
Yeah, maybe just, Tony, Warren, guys, why don't you just, you know, maybe zoom out a little bit. Quarter wasn't that long ago. You just set the guide for 2026. Just maybe offer some introductory comments, some perspective on where Neo sits today and kind of, you know, how you're thinking about the next, you know, year or so.
Sure. I'll kick it off. I think for us, we sit kind of at an essential inflection point for us right now, right? We're looking down the path of having multiple product launches that are gonna be instrumental for us. You know, we had always said that we wanted to be purposeful with our penetration into therapy selection and MRD, and with emphasis in solid tumor. Now having PanTracer, hopefully tissue and LBx online, that would be a real opportunity for us to drive value. You know, successfully growing the PanTracer family of business is important for our NGS growth rate. Obviously, we're excited about RaDaR ST.
The ability to reenter, you know, a $20+ billion market that has a relatively low penetration rate that plays well into our portfolio of offerings for us is also an exciting point for us. Those two product launches are very much pivotal for us as we want to accelerate growth going into 2027, 2028 and beyond. I think on the behind-the-scenes picture, Dan, as well, there's been a lot of exciting work that Warren and his team in the labs have been doing that, you know, we're not just focusing on driving revenue. We want to make sure we're driving good revenue and gross margin expansion. We see plenty of opportunities behind the scenes with automation, with AI, with other areas that we can really begin to generate, again, high-quality revenue as well as good gross margin expansion.
It's gonna be an exciting year for us.
Terrific. Yeah, I mean, I thought we'd start just on, you know, NGS, and we'll kind of mix in the core clinical with that as well. But just, you know, in terms of NGS, you know, the PanTracer liquid is a real exciting opportunity.
You guys have given some color on, you know, how the PanTracer solid tumor has done. Maybe just give some perspective. I know you kind of set the guide. You didn't bake a lot in for it. How are you thinking, A, about the opportunity, I guess, for that? What gives you the right to win there? Then, B, if you want to fill in some of the blanks about, you know, what it could mean for you as we look ahead.
Warren, you want to take the lead?
Yeah. I think we're really excited about our PanTracer family overall. You know, this is our solution for therapy selection in solid tumor.
It's a combination of the PanTracer Tissue, PanTracer liquid, and we've just recently launched PanTracer Pro, which is a simplified ordering workflow.
for our physicians. We're really excited by that. you know, the physicians that we speak to still believe that tissue is the gold standard. I think the sort of sensitivity specificity from the tissue is better. However, there's absolutely utility on the liquid side of things when potentially there's no tissue available. You've got QNS TMP. We're also now starting to see opportunities for repeat testing on the liquid side, as maybe there is some kind of resistance that's built up to a therapy. You can run it again with liquid, which you potentially couldn't do and wouldn't want to do on the solid tumor side. We actually see a very, very attractive opportunity from a liquid market side of things.
We just feel that as we round out our portfolio across diagnosis, therapy selection, and MRD now, that we're able to address this entire continuum of care and position us very favorably in the community where we focus.
Yeah. I think the other point, Dan, that I think Warren's team over the last few years, they've really done their sales force expansion plans really it was well done, and it was with a line as to, towards the NGS portfolio. I think some of those proof points are all around now. The effectiveness of this team is becoming more evident, right? We've seen a 14% increase in the number of physicians that are writing five or more Neo tests now. We have, you know, over 40%.
Yeah.
of pathologists and oncologists are now writing five or more NEO tests.
This portfolio strategy is coming across, and it's growing in the areas that we need it to grow, which is in NGS. We believe that we'll continue to outpace market growth with liquid biopsy joining the PanTracer family. In fact, we think we should at least replicate what we did in 2025.
I may actually make one more bold on that, if I could, Tony, on top of that. I think the other thing that we are particularly proud of and think, feel that puts us in a really good position of, for a long time, we've been tracking our Net Promoter Scores.
We've typically done well, but we've lagged on the oncology side of things. The feedback has been that we're maybe more of a pathology-type company, and we haven't done as well on the oncology side of things. Really proud of the assessment that took place and its independence in Q4 of 2025. For the first time ever, the feedback from oncologists outstripped that of pathologists, and they came back with an NPS rating of a little north of 80 on the oncologist side of things, where pathologists were slightly lower than that. I think a lot of the work behind the scenes to position us favorably to penetrate the community oncology setting is starting to pay dividends.
If you guys share, just as an adjacency to it, you mentioned the repeat ordering and things of that nature.
When you think about the opportunity for liquid, like, do you have a sense in your hospital accounts, like how many of them are doing liquid today? Do you have to displace a competitor? How much of it's they're doing single gene? They're not doing, you know, kind of like a, you know, a big panel of liquid. How do you think about the opportunity and, you know, you haven't given a lot of color on the guidance?
Yeah.
other than to say you think it could be meaningful, but, just wondering on that perspective.
It's I would say that the opportunity is broad-based and it does. It starts from the fact that because we're very much focused in the community, they look to guidelines. Today, single genes or smaller targeted panels are what's in guidelines and oncologists get a lot of comfort by following what's in guidelines. But they're also starting to see the value of larger datasets, et cetera. That's the one evolution where there is absolutely an opportunity. They're comfortable with NeoGenomics. They wanna migrate from a single gene or a targeted panel to a CGP solution, whether it be solid or liquid.
That's absolutely the one opportunity. I think the second opportunity is, okay, they're using an alternative provider for a liquid or solid, but they see the value of combining to a single vendor who can offer a solution across both heme and solid tumor, like diagnostics, therapy selection, and MRD. There's that aspect as they're looking to consolidate vendors, streamline workflows within their practice. We actually position ourselves very, very favorably there as well. There is still those physicians out there that don't use large panels at all, that we can actually go after. It's a very rich opportunity in the coming years for us.
Just as a bit of a sidebar, I mean, Illumina just came out at AGBT, they announced they have a Q70 new chemistry.
Yep.
Obviously, you know, you're kind of standardized on Illumina, right?
Yeah.
I mean, over time, is that something you guys can take advantage of, you think, or no?
Yeah, the answer to that question is absolutely yes. Yes. We're already in discussions with them. Yes.
Right. Interesting. Okay. Just in terms of the PanTracer liquid, you know, you've talked about it could replicate what PanTracer solid did, which was really meaningful.
You certainly haven't baked that in. You're still waiting for coverage. Just how do we think about, you know, ultimately what that could mean for the business, you know?
Yeah. I think it can absolutely be a meaningful growth driver for us. When we did the guide, we just wanted to demonstrate, you know, confidence but prudence as well, right? Confidence that we believe PanTracer liquid will work its way through MolDX. It's a when, not an if.
Right? because we don't have it in hand
Right.
We said, "Well, the better course of prudence is let's just put it in the second half of the year and be modest in expectations.
make no bones about it. With PanTracer LBx joining the PanTracer family, we expect that to be a big growth driver for us.
Right. I mean, could it replicate like in year two what the solid growth did and, you know, kind of as it was?
One of the reasons we gave some insights into how the PanTracer Tissue.
because we wanted to at least give you some indication of what you could potentially look at for a model.
Yeah
We believe that it could be meaningful for us.
It can. I think you said on the call, like the number of turns that typically happen, and we're kinda getting to that point now.
Yes. Yes. It, yeah.
Right? I mean, is there, I mean, again, you can't share the details back and forth of what MolDX is looking for.
Right.
Just from a high level, I guess, I think you've communicated confidence. Is there anything you're seeing that would lead you awry from the feedback that would. You never say never, but we could be sitting here next year at this conference, and you still don't have it or
Wow. I would never say never-
Right.
I would never wanna say that. No, I believe that we've addressed MolDX's questions. I think, you know, they have a responsibility too, right? You know, they see the landscape, and they ask questions. These questions haven't required us to generate any more wet lab work.
It was just provide additional data, which we've been able to do, and we have a high degree of confidence with what we submitted to them. You know, we look forward to them, and as you say, we're into our fourth cycle with them.
That'll be about a year coming up, and, you know, right at the end of March.
That's been the norm, you know?
They have a job to do, and then we'll do ours.
Maybe on MRD, like, I don't think we had a lot of MRD, but just what's the top question? You know, we've tried to frame the market. You've given some color on it. You have these two interesting indications. This is with ST. You know.
You guys are very excited to be back in the market, obviously.
Yeah.
You know, how do investors think about the, you know, two years from now, what MRD could mean for Neo, I guess?
Well, I mean, I personally would be disappointed if we're not looking at accelerated growth curves.
for Neo's business overall. This is a $20+ billion market. We think with RaDaR ST, we have a really strong product profile that we bring forward.
We believe that it's competitive with anything that's out there. Of course, we're gonna continue to invest in next generation MRD as well.
I would believe that looking two and three years out, this is a significant driver, and the face of Neo will look noticeably different than it does today.
Right. I know you guys shared a lot of information on the call. We have a couple questions on salespeople, when you think about MRD and CGP, the same salesperson is selling both of those, I assume, right?
I mean, there's not a specialty between those two, or how does it work?
Yeah. I think, generally that is correct, except, there's a bit of a nuance with our head and neck HPV negative.
Right.
One of the primary core point there is the ENT.
Right.
Today, in our portfolio, we haven't really invested much time in the ENT. It just, our portfolio wasn't that relevant, but we've needed to do that with our RaDaR ST launch. We have actually recruited, and they're on the ground today, a small sales team who targets the ENT for HPV negative head and neck cancers.
Yeah.
In terms of the rest of the portfolio and the indications that we've already submitted to MolDX from an MRD perspective, we see 100% core point overlap because the sequence is you get diagnosed with cancer. You need to figure out what therapy you wanna be on, and ultimately you wanna do surveillance for recurrence. It's the same physician that we're targeting, and we've targeted our sales team so that they can go in not only to talk about RaDaR, they talk about our solution, which could be therapy selection, or it could be MRD, depending on the situation that that patient finds themselves in.
With this overlap, Dan, I think, you know, what Warren's teams have done historically is a really nice job of expanding the sales force in anticipation of new opportunities, right? Once again, here we are expanding the sales force in anticipation of the indications that we've recently submitted to, right?
For MolDX, for RaDaR ST. The beauty here is we're not dependent on a date, right? We still have a large market in NGS, and they are showing their increased effectiveness. From an investment thesis, this is about as low risk as it gets.
Maybe on the Net Promoter Score, like what was it? Did you I mean, you probably have a lot of questions?
Yeah.
What were the answers which drove your score up to over 80?
Yeah.
Like how should investors interpret that as like a reflection of, "Oh, they're, they've got a really strong sales force," or no, it's whatever, it doesn't really matter?
Yeah. It's a fantastic question, Dan, and we've been tracking this for three years now trying to drive it up, and it's been the same things that have either helped us or hindered us. The things that come out first and foremost, breadth of portfolio ranked really, really high. Obviously the implementation, we'd already launched Liquid by the time we did the survey in Q4, that was an addition to the portfolio. We rounded out the solid tumor therapy selection side of things. We had done some pre-marketing around RaDaR coming to market as well. Portfolio was 1. Simplicity of the test report. I don't want to underplay how important that is to physicians to make sure that the actionable information is right there in front of you. They love the layout of our reports.
EHR integrations, another big factor. We have over 300 of those available now to community oncologists. They see that from just a workflow simplicity perspective as a key driver. Then, you know, just robust turnaround times. We pride ourselves in consistency of robust turnaround times and just general customer experience that we wrap around it. Those were the four key criteria that they cited in the survey. They've been consistent over the last three years that we've done this, but obviously we've performed differently as we've invested in these different areas.
Yeah. It comes very, very high on operational effectiveness-
Yeah
And efficiencies, right? It's not this panel or that panel. It's the totality
of your offering.
Okay. Maybe just talking on like, you know, a little on the non-NGS clinical business. I know in the fourth quarter you had some cancellations of some low-value contracts. You know, I think you quantified some of that. Maybe just. Then, and then on the forward guide, you kind of shifted. You not shifted, but you emphasized more price over volume.
Right.
Still got to the same spot in our model, stock kinda maybe was a little volatile on that, you know, had some questions. Maybe just talk about fourth quarter, the contracts, then just talk about this, is it a shift? Like how should people interpret?
Sure
This focus on price over volume and what it means for the business?
Yeah. Why don't I'll kick us off and then Abhishek
you can give even more color if you'd like. First and foremost, what we try to bring clarity to, this is one contract, right? 'cause people have wondered, was it a hospital? Was it this? Was it that? You know, and no, it's a, it's a reference lab, right? It's one contract with one modality. When we entered into the contract, like in many of our contracts, we enter with one spot, and we hope that we can continue to grow and move up the value chain. In this instance, we just weren't able to come to an agreement that for us to increase value. Here we were basically providing just one modality, one test, you know, at $200 for an AUP, which for us just was not a good value add, right?
Because that's a valuable resource that we could be using for the rest of our portfolio as well. When we couldn't come to an agreement that would work for them as well as work for us, it was just better to say, "Okay, you know, we'll part company." The impact to the gross margin was negligible. From just a pure business perspective, it's absolutely the right thing for us to do. It did trigger questions like, "Oh, does that mean that there's some underlying problem with your volume since now?
Right.
Right? The answer to that is no. You know, if you strip this out, Abhishek will give you a little bit more color, you'll see that all of our non-NGS is still in that mid-single digit growth rate. Our NGS growth rate's intact. It was just the impact of one large volume contract.
Maybe you can give a little more color.
No, absolutely, Dan. On the volume and the AUP dynamic between 2025 and 2026, because that basically raised quite a few questions, right? Now, because of this one contract, our volumes were basically pretty high in 2025. Similarly, our AUP growth was slightly lower in 2025 because we had this one contract with very high volumes and low AUP. Now, from the volume standpoint, of course, we have already disclosed that AUP has been about $200 a test for this particular customer. On the volume side, they basically made up almost like 3%-4% of our overall volumes in 2025.
Wow.
If we were to strip out this particular volume from this one customer, then we take it out in 2026, you will actually see that the underlying volume growth, both in 25 and 26, would be mid-single digit. Similarly, if we were to talk about the AUPs, AUP in 2025, we basically saw a low single-digit growth in the AUP. If you were to strip out again the low value of this particular customer, you will basically see that the AUP growth would be similarly in the mid-single digit. In our mind, this was a contract which was not fitting strategically in our portfolio, we decided to basically get rid of it. It does not change any of the financial dynamics between the couple of years.
I think that's the clarity that we would want to provide to our investors, that this is basically a very prudent decision. It doesn't change the underlying fundamentals of the business.
On price for 2026 on the core clinical, is it mid-single on price or is it high single on price?
Basically from the guidance standpoint, what we have said in 2026, because we are getting out of this particular contract.
Yeah
The revenue growth is going to be primarily driven by the AUP growth.
Right
which is high single digit.
Right. Yeah.
The volume growth will be in a low single digit.
Right.
This is basically a function of because we are getting out of this.
Right.
low value, high volume contract.
Right.
If I were to strip that out, then that AUP growth that I'm talking about.
I got it. I understand
will be a high single digit.
Yeah.
It will actually drop to mid-single digit.
I got it. I understand. Okay.
Yeah. Basically, if you just looked at-
Yeah
24 month, you would see nothing if it wasn't for this one.
Yeah. Maybe, Dan, what we need to do is to maybe put together like a couple of slides and then.
Yeah
Put it in our presentation.
Yeah
This becomes very clear.
Yeah
To our investors that, okay, this is basically this one dynamics, but it doesn't change any of the fundamentals.
Yeah. Maybe just on the core, like non-NGS clinical market, which was your bread and butter.
Yeah.
Forever, and it still is a critical piece, but NGS driving a lot of the growth. Just we have a question here just about overall growth of that market.
You know, obviously some of those tests get cannibalized.
Sure.
by NGS, but where do we sit today in that market? Are you meaningfully outgrowing the market with your guidance for 2026? Are you growing in line? How do we think about that?
We have consistently tracked to Laboratory Economics. They run a survey every year to understand market growth rates here, and they do it across Medicare and commercial payers too. This is our best proxy to understand how market's growing. We consistently have seen through 2023 through 2025 that we've grown above market in all of the modalities. I'm talking FISH, flow, cytogenetics, some of the sort of molecular testing as well, consistently above market. You know, the growth rates as AJ just said, are very much in line as we go into 2026. We believe that that would be the case, would remain the case.
Okay. Maybe just one on. We have a question on heme malignancy profiling, which I think how big is that business for you? I know some of the bigger labs look to be rolling out some products here. It might just be noise around the margin, but just wondering so we don't get, you know, some update. Just kinda talk about that part of the market for you.
Yeah. I mean, it's a very important market for us. We consider ourselves probably the market leader in hematologic malignancies, roughly a 25% market share. It's an area that is attractive to us because it does allow for serial testing.
in some areas. A lot of it is also on what we call client bill. We don't actually bill a third-party payer or Medicare. We actually bill the client. It has a very low bad debt associated with it and sort of a low cost to operate. It's an area that's very attractive to us, but we also do see that over time it's going to sort of evolve into potentially a whole-genome sequencing type opportunity. It's a longer term because guidelines need to shift and change, and you give up certain things with whole-genome sequencing that you get today with some of the non-molecular tests like flow on the protein analysis and karyotyping on the FISH side of things.
It really, there's gonna have to be a lot of studies that get sort of evaluated that show, okay, what you're giving up is offset more by what you're gaining on whole-genome sequencing. We have whole-genome sequencing on our roadmap. It's a longer term outlook, but we see an opportunity to participate in that as well. We're absolutely looking to protect our position from a hematologic malignancies perspective.
What does that business typically grow at, the heme malignancy business?
This is all rolled into those.
Yeah.
We're kind of seeing, excluding sort of NGS, et cetera, we're seeing this business grow in the mid-singles.
from a volume perspective.
Okay.
There's some price benefit on top of that.
Okay. Maybe just on the sales force, you know, you kinda quantified, broke things out a little bit.
The last couple of quarters to give us a flavor of the different buckets, and it's been a bit of a major expansion, I would say.
Yeah.
amongst the big labs adding sales people
Yeah.
whether in MRD or CGP.
Yeah. Yeah. Yeah.
Volume growth seems to be positively correlated with multiple pretty straightforward. Maybe talk through the expansions that you guys have done. Do you think you're right-sized now? Does that continue to grow? Things like that.
Yeah. I would say first and foremost, it was done in a very thoughtful way, right? As I had mentioned earlier, I think the team has always tried to get ahead of let's invest in anticipation of an emerging product or new indication flow. I think we've done a really good job of actually keeping those in line with being financially aware, right? That being said, I think this investment is the right step for us to take because we don't wanna disrupt relationships. If you try to expand too much too fast, you start almost realigning the entire map. When you do that, you know, you're jeopardizing long-standing relationships. You have to do this in a very thoughtful build-upon way.
I would say that in general, Dan, there's probably more than ample opportunity to continue to invest in sales force if you do it in a smart way. You know, with a sales force in the 70 person range servicing a, an oncology community, that's still relatively small. I think as long as we see increased opportunity for penetration with new indication and product flow, you could anticipate us making, again, modest investments over time based on how the business evolves.
Maybe the only thing I'd put on there is recognize that we have obviously sales teams in the market and probably of the larger, broader, broadest portfolio. You know, one of the things that we do to try and maximize efficiency and productivity of the sales team is we actively look to prioritize practices. Which practices do we prioritize, and then we also desk sell physicians. We really look to target who do we wanna go after, where we believe we have the highest probability of winning and also maximizing the size of when we win. We've seen a lot of value through this prioritization in terms of field force effectiveness.
I think we've been able to sort of punch above our weight class, based on this type of science that we've put behind our execution.
Have you guys looked at, and I'm sure you have, like managing the size company you do, but it just strikes me like some of those clear lab companies, you know, are kind of much bigger on the CGP side today, but they've got salespeople 250, 300, 350.
You guys are at 70, so super efficient, but are you underinvesting today? You don't feel you are, but I'm just wondering, I don't know, are there any metrics that you guys look at, sales per doctor or, you know, number of head, or just kind of like how do you get to that 70 number, and do you know, how do you think it's sized versus the, you know, the competitors?
I think there's a couple of data points. You know, you're talking to a sales guy. If you offer me more sales people, I'll take them. We've always taken a sort of a prudent approach to our investments and wanna make sure we get a positive return on investment.
Yeah.
We wanna remain cash flow positive. I mean, we look at it from a balance point of view. You know, one of the things that.
Data point is we believe we're already servicing more than 40% of the oncologists and pathologists in the U.S. market with 5 or more tests a year. That's a fairly well penetrated. That's up 14% from where it was in 2024.
The opportunity ahead of us is there's still roughly 60% for us to go after, and that's why we are making further expansions ahead of the new indications for RaDaR ST that we've already filed for. Expect our sales force to grow from the 140 odd that we are today to probably about 165 by the end of the year in anticipation for these additional indications. We will continue to invest prudently, and we'll continue to drive efficiency and productivity of the sales team.
Got it. Maybe just tactically, just kinda throwing a weather question in there juxtaposed here. Just remind us with the inclement weather so far, just kinda what are the guide bake in near term and, you know, obviously, hopefully you can make up some stuff that was lost, but any color about it?
Yeah. We did include some of the weather impact that we saw, in the month of January in our guide. Of course, we have seen some more weather challenges come up. From the volume standpoint, we typically can make up some of that lost volume, not necessarily all of that volume.
We'll see as to how the quarter's going to shape up, but definitely weather has been one of the challenging variable from the guidance standpoint.
If things like slip quarter to quarter, like, is it like, okay, we can't make maybe people don't race back to the doctor, so if you lost 4 days, you get 2 days back or something.
Yeah.
Right.
Those lost two days, are they gone, or do people tend to come back in the subsequent quarters?
There is attrition level. There's absolutely attrition level. It's not a 50% attrition level.
Yeah.
It's probably down at 20 odd percent.
Got it.
It takes longer than you would think.
Right.
to actually get that lost testing back because physicians are booked out three, four, five, six weeks in advance.
Yeah.
You cancel three days, and they're seeing-
Yeah
30 patients a day.
Right.
Trying to find a place to slot them back in is difficult. It'll take more than a quarter for this to normalize.
Yeah. For the year, it's de minimis, but Q one, Q two, it's not insignificant because they may not be able to rebook until, you know, May or June.
Got it. Maybe just switching gears to the non-clinical side of the business there. It's been a business that's been challenged but looks like being, like it's stabilization mode. Like how would you.
Classify what you're seeing from that business, the actions you've taken and kind of, you know, the outlook?
Yeah. I would say with the actions that the team has put in place, I am cautiously optimistic. But I still hold to what I said, and that was we had this erosion in 2025. It was 24%. You just don't arrest that overnight, right? I think it would be naive to think we flatten that out immediately.
you know, we still anticipate a modest erosion rate in 2026 on the non-clinical side of the business, and a return to growth in 2027. That still, we believe, is the right way to plan. Obviously, if we can get that back to flat faster, that would be upside against our guide. We're encouraged by some of the conversations that we're seeing with RaDaR ST. You know, that's opening up.
Warren might wanna let you know that we got our, go ahead, Warren.
Well, I was gonna say, we got our first statement of work on the pharma side on the RaDaR ST. I think this is maybe one of the reflections. You know, when we were forced to remove RaDaR from the market in December of 2023, maybe we didn't realize the positive sort of impact from an access strategic relevance that RaDaR was bringing us in the pharma space. Pulling that out really did take wind out of our sails. We lost a lot of momentum and it's really been encouraging to see how doors have opened even though it's been two years, 2+ years, in terms of having RaDaR available and having access again. I think we are starting to see early indications of green shoots.
Maybe just go into the income statement here. Just maybe discuss gross margins, right?
They were down a bit last year, but now you got LIMS online and just also, you know, maybe some of the headwinds have been easing, and you have these ASP launches, higher ASP launches coming. What's your trajectory and kinda what's maybe a like, how much of a of a band of opportunity is around that?
Yeah. I think, on the gross margin expansion, there are plenty of opportunities. In our current 2026 guide, we are anticipating about like 100 basis points expansion on the gross margin line. As we continue to shift towards the right side, which is the therapy selection and the MRD, which is the higher margin test, as well as the continued growth momentum on the NGS, it will actually be a more accretive, you will be able to grow your margins more sharp in a much better way. In 2026, we are dropping almost like $0.50-$0.60 of every incremental dollars on the gross margin.
From the long-term standpoint, we should be thinking from, okay, how much the operational leverage within the lab will be able to help, which includes not only the LIMS implementation, but also there'll be things like the lab automation or perhaps implementing the new technologies to be able to kind of better use our on the variable cost perspective, and then the better utilization of the footprint of our lab. There are multiple opportunities to be able to kind of drive the operational leverage on the cost side. On the top line, you basically have the volume growth driving the operational leverage, and then you have the pricing opportunity. To me, there's a multi-year play here.
Sure
Our gross margins can improve in a much more meaningful way.
Tony, maybe wrapping it up, how do you feel sitting here today versus say like a year or two ago? Well, you've been here.
Right
Well, last year. How do you feel about the business, you know, and, you know, thoughts on, you know, the opportunity for, you know, maybe shareholders?
I think that we are at the inflection point for Neo now because I think we have now laid the foundation. We see our portfolio evolving towards, you know, better markets, right, with therapy selection and MRD. I expect really good things to come from the PanTracer family, and I expect good things to come from our re-entry into the MRD space. We combine that with some of the work that Abhishek was just mentioning that you don't always get visibility into.
Right
That Neo has been a company that was built to be effective. It was certainly not built to be efficient, right? There is plenty of opportunity for us to drive not just good revenue growth, but much better and faster gross margin expansion. I'm quite bullish on what we can expect to see over the coming years.
Awesome. Well, thanks. I think we're out of time, guys, but thanks for being up here.
Thanks for having us.
Have a good rest of your conference.
Thank you.
Thanks, Dan.
Thank you.