Biodesix, Inc. Reports Strong Q3 Growth and Optimistic Outlook

Biodesix, Inc. ((BDSX)) has held its Q3 earnings call. Read on for the main highlights of the call.

Biodesix, Inc. recently held its earnings call, revealing a positive sentiment driven by strong revenue growth, improved gross margins, and significant advancements in lung diagnostics and development services. Despite challenges with Medicare Advantage payments and a net loss, the overall outlook remains optimistic due to the company’s achievements and positive trends in growth and operational improvements.

Revenue Growth

Biodesix reported a notable increase in revenue for the third quarter of 2025, reaching $21.8 million, which marks a 20% rise compared to the previous year. The lung diagnostic testing segment contributed significantly, with revenues climbing to $19.8 million, driven by a 13% growth in test volumes and a 16% increase in revenue.

Improved Gross Margins

The company’s gross margin percentage saw a substantial improvement, rising to 81% in the third quarter of 2025, up from 77% in the same period of 2024. This 400 basis point increase underscores Biodesix’s operational efficiency and cost management.

Adjusted EBITDA Improvement

Biodesix reported an adjusted EBITDA loss of $4.6 million, reflecting an 18% improvement year-over-year and a 36% improvement over the second quarter. This progress indicates the company’s efforts to enhance its financial performance.

Development Services Growth

The development services segment experienced significant growth, with revenue reaching $1.9 million in the quarter, representing a remarkable 97% increase year-over-year. This growth highlights the expanding demand for Biodesix’s development services.

Expansion of Sales Force

Biodesix expanded its sales force to an average of 85 sales representatives in the field, with plans to further increase this number to 93-97 reps in the fourth quarter. This expansion aims to bolster the company’s market presence and drive future growth.

Progress in Lung Diagnostics

The Nodify Lung testing program saw increased adoption, with primary care test orders growing by 75% over the third quarter of 2024. Additionally, digital ordering surged by 43% compared to the previous year, indicating a strong uptake of Biodesix’s lung diagnostic solutions.

Pipeline and Partnerships

Biodesix expanded its product development partnership with Bio-Rad Laboratories and presented multiple studies supporting its product pipeline. These collaborations and research efforts are expected to enhance the company’s product offerings and market position.

Increased Revenue Guidance

Biodesix raised its full-year 2025 revenue guidance to a range of $84 million to $86 million, reflecting confidence in its growth trajectory. The company anticipates achieving adjusted EBITDA positivity in the fourth quarter, supported by strong gross margins and an expanding sales team.

Medicare Advantage Payment Issues

While Biodesix successfully resumed payments from one of the largest Medicare Advantage plans for current claims, challenges remain with the collection of older claims. This issue highlights ongoing hurdles in the reimbursement landscape.

Net Loss

The company reported a net loss of $8.7 million for the third quarter of 2025, although this represents a 15% improvement year-over-year. The reduction in net loss indicates Biodesix’s efforts to improve its financial health.

Forward-Looking Guidance

Biodesix provided an optimistic outlook for the fiscal year 2025, raising its revenue expectations to between $84 million and $86 million. The company is on track to achieve adjusted EBITDA positivity in the fourth quarter, driven by strong gross margins and an expanding sales team. The growth in primary care test orders and the expansion of its sales force are expected to support this positive trajectory.

In conclusion, Biodesix’s recent earnings call painted a positive picture of the company’s financial health and strategic direction. Despite challenges with Medicare Advantage payments and a net loss, the strong revenue growth, improved gross margins, and advancements in lung diagnostics and development services suggest a promising future. Investors and stakeholders can look forward to Biodesix’s continued progress and potential for growth in the coming quarters.