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Reportable Segments and Geographic Information | 6 Months Ended
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Jun. 30, 2026
Segment Reporting [Abstract] |
Reportable Segments and Geographic Information | Note 7. Reportable Segments and Geographic Information The Company has two distinct reportable segments. The laboratory services operating segment offers technical laboratory and testing services and professional interpretation of laboratory results by licensed physicians who specialize in pathology and oncology. The therapeutic development operating segment is a pharmaceutical research and development entity. The Company’s Chief Executive Officer serves as its CODM. The CODM oversees the Company’s operations and evaluates financial data for its two operating segments separately to make resource allocation decisions. The financial information regularly provided to the CODM includes various performance metrics by reportable segment, such as gross profit, operating income or loss, income or loss before income taxes, net income or loss from consolidated operations, and net income or loss attributable to the Company, all presented in accordance with U.S. GAAP. Although multiple financial metrics are provided, the CODM primarily relies on adjusted (non-GAAP) operating income or loss to evaluate segment performance and allocate resources. These adjusted metrics exclude the impact of equity-based compensation expenses, amortization of intangible assets, and acquisition-related costs including acquisition-related severance, if applicable as determined by management. Acquisition-related costs and acquisition-related severance are related to the acquisition of Bako (as defined below), which closed on March 17, 2026, see Note 15. Business Combinations for additional details. The balance sheet is presented on a consolidated basis, as the CODM does not use asset or liability information, including fixed assets, to assess segment performance. As a result, segment asset and liability details are not disclosed. The newly acquired entity, Bako, is considered part of the laboratory services segment as this acquisition was strategically undertaken to further strengthen the Company’s laboratory services business by adding new products and services and further expanding its national client base, national sales team, and team of expert pathologists. Consequently, Bako’s operations are integrated into the laboratory services segment, with shared resources and collaborative efforts, and the CODM evaluates Bako’s operations as part of the laboratory services segment’s consolidated financial information. Therefore, Bako’s financial results are grouped within the laboratory services segment’s reporting. There is no inter-segment allocation of interest expense and income taxes. There is no inter-segment revenue and operating income or loss. The Company did not allocate income tax by segment. Information regarding the Company’s operations and assets for its reportable segments as well as geographic information was as follows, all dollars are in thousands:
| Laboratory Services |  |  | Therapeutic Development |  |  | Total |
Three Months Ended June 30, 2026 |  |  |  |  |  |  |  |
Revenue | $ | 85,359 |  |  | $ | 30 |  |  | $ | 85,389 |
Less: |  |  |  |  |  |  |  |
Adjusted cost of revenue |  | 58,617 |  |  |  | 8 |  |  |  | 58,625 |
Adjusted research and development |  | 6,823 |  |  |  | 4,595 |  |  |  | 11,418 |
Adjusted selling and marketing |  | 14,663 |  |  |  | — |  |  |  | 14,663 |
Adjusted general and administrative |  | 22,698 |  |  |  | 391 |  |  |  | 23,089 |
Total adjusted operating loss | $ | (17,442 | ) |  | $ | (4,964 | ) |  | $ | (22,406 | )
| Laboratory Services |  |  | Therapeutic Development |  |  | Total |
Six Months Ended June 30, 2026 |  |  |  |  |  |  |  |
Revenue | $ | 156,410 |  |  | $ | 117 |  |  | $ | 156,527 |
Less: |  |  |  |  |  |  |  |
Adjusted cost of revenue |  | 106,797 |  |  |  | 15 |  |  |  | 106,812 |
Adjusted research and development |  | 13,284 |  |  |  | 8,773 |  |  |  | 22,057 |
Adjusted selling and marketing |  | 26,239 |  |  |  | — |  |  |  | 26,239 |
Adjusted general and administrative |  | 42,750 |  |  |  | 748 |  |  |  | 43,498 |
Total adjusted operating loss | $ | (32,660 | ) |  | $ | (9,419 | ) |  | $ | (42,079 | )
| Laboratory Services |  |  | Therapeutic Development |  |  | Total |
Three Months Ended June 30, 2025 |  |  |  |  |  |  |  |
Revenue | $ | 81,803 |  |  | $ | — |  |  | $ | 81,803 |
Less: |  |  |  |  |  |  |  |
Adjusted cost of revenue |  | 45,631 |  |  |  | — |  |  |  | 45,631 |
Adjusted research and development |  | 5,435 |  |  |  | 4,706 |  |  |  | 10,141 |
Adjusted selling and marketing |  | 11,575 |  |  |  | — |  |  |  | 11,575 |
Adjusted general and administrative |  | 21,970 |  |  |  | 170 |  |  |  | 22,140 |
Total adjusted operating loss | $ | (2,808 | ) |  | $ | (4,876 | ) |  | $ | (7,684 | )
| Laboratory Services |  |  | Therapeutic Development |  |  | Total |
Six Months Ended June 30, 2025 |  |  |  |  |  |  |  |
Revenue | $ | 155,266 |  |  | $ | — |  |  | $ | 155,266 |
Less: |  |  |  |  |  |  |  |
Adjusted cost of revenue |  | 88,968 |  |  |  | — |  |  |  | 88,968 |
Adjusted research and development |  | 10,366 |  |  |  | 8,696 |  |  |  | 19,062 |
Adjusted selling and marketing |  | 19,150 |  |  |  | — |  |  |  | 19,150 |
Adjusted general and administrative |  | 42,595 |  |  |  | 430 |  |  |  | 43,025 |
Total adjusted operating loss | $ | (5,813 | ) |  | $ | (9,126 | ) |  | $ | (14,939 | )
| Three Months Ended June 30, |  |  | Six Months Ended June 30, |
| 2026 |  |  | 2025 |  |  | 2026 |  |  | 2025 |
Reconciliation of “adjusted operating loss” to “loss before income taxes” |  |  |  |  |  |  |  |  |  |  |
Adjusted operating loss | $ | (22,406 | ) |  | $ | (7,684 | ) |  | $ | (42,079 | ) |  | $ | (14,939 | )
Less (add): |  |  |  |  |  |  |  |  |  |  |
Equity-based compensation |  | 8,624 |  |  |  | 10,039 |  |  |  | 18,514 |  |  |  | 20,589 |
Acquisition-related costs |  | 17 |  |  |  | — |  |  |  | 2,649 |  |  |  | — |
Acquisition-related severance |  | 251 |  |  |  | — |  |  |  | 647 |  |  |  | — |
Amortization of intangible assets |  | 2,603 |  |  |  | 1,990 |  |  |  | 4,634 |  |  |  | 3,980 |
Impairment of intangible assets |  | 2,172 |  |  |  | — |  |  |  | 2,172 |  |  |  | — |
Interest income |  | (6,404 | ) |  |  | (8,091 | ) |  |  | (15,055 | ) |  |  | (16,109 | )
Interest expense |  | 59 |  |  |  | 17 |  |  |  | 76 |  |  |  | 31 |
Impairment of equity securities |  | — |  |  |  | 9,926 |  |  |  | — |  |  |  | 9,926 |
Other income, net |  | (38 | ) |  |  | (46 | ) |  |  | (48 | ) |  |  | (114 | )
Total loss before income taxes | $ | (29,690 | ) |  | $ | (21,519 | ) |  | $ | (55,668 | ) |  | $ | (33,242 | )
Significant items by segment excluded from the adjusted operating (loss) income were as follows:
| Three Months Ended June 30, |  |  | Six Months Ended June 30, |
| 2026 |  |  | 2025 |  |  | 2026 |  |  | 2025 |
Equity-based compensation |  |  |  |  |  |  |  |  |  |  |
Laboratory services | $ | 6,501 |  |  | $ | 8,034 |  |  | $ | 14,142 |  |  | $ | 16,566 |
Therapeutic development |  | 2,123 |  |  |  | 2,005 |  |  |  | 4,372 |  |  |  | 4,023 |
Total | $ | 8,624 |  |  | $ | 10,039 |  |  | $ | 18,514 |  |  | $ | 20,589 |
Revenue by segment was as follows:
| Three Months Ended June 30, |  |  | Six Months Ended June 30, |
| 2026 |  |  | 2025 |  |  | 2026 |  |  | 2025 |
Laboratory services: |  |  |  |  |  |  |  |  |  |  |
Precision diagnostics | $ | 41,453 |  |  | $ | 47,428 |  |  | $ | 81,691 |  |  | $ | 91,525 |
Anatomic pathology |  | 37,497 |  |  |  | 28,122 |  |  |  | 62,577 |  |  |  | 53,422 |
BioPharma services |  | 6,409 |  |  |  | 6,253 |  |  |  | 12,142 |  |  |  | 10,319 |
Total laboratory services |  | 85,359 |  |  |  | 81,803 |  |  |  | 156,410 |  |  |  | 155,266 |
Therapeutic development: |  |  |  |  |  |  |  |  |  |  |
BioPharma services |  | 30 |  |  |  | — |  |  |  | 117 |  |  |  | — |
Total therapeutic development |  | 30 |  |  |  | — |  |  |  | 117 |  |  |  | — |
Total | $ | 85,389 |  |  | $ | 81,803 |  |  | $ | 156,527 |  |  | $ | 155,266 |
Depreciation and amortization by segment were as follows:
| Three Months Ended June 30, |  |  | Six Months Ended June 30, |
| 2026 |  |  | 2025 |  |  | 2026 |  |  | 2025 |
Laboratory services | $ | 7,528 |  |  | $ | 5,889 |  |  | $ | 13,385 |  |  | $ | 11,644 |
Therapeutic development |  | 148 |  |  |  | 165 |  |  |  | 291 |  |  |  | 329 |
Total | $ | 7,676 |  |  | $ | 6,054 |  |  | $ | 13,676 |  |  | $ | 11,973 |
Interest income and expense by segment were as follows:
| Three Months Ended June 30, |  |  | Six Months Ended June 30, |
| 2026 |  |  | 2025 |  |  | 2026 |  |  | 2025 |
Laboratory services |  |  |  |  |  |  |  |  |  |  |
Interest income | $ | 6,404 |  |  | $ | 8,091 |  |  | $ | 15,055 |  |  | $ | 16,109 |
Interest expense |  | (59 | ) |  |  | (17 | ) |  |  | (76 | ) |  |  | (31 | )
Therapeutic development |  |  |  |  |  |  |  |  |  |  |
Interest income |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Interest expense |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total | $ | 6,345 |  |  | $ | 8,074 |  |  | $ | 14,979 |  |  | $ | 16,078 |
Total assets by segment were as follows:
| June 30, 2026 |  |  | December 31, 2025 |
Laboratory services | $ | 982,893 |  |  | $ | 1,096,379 |
Therapeutic development |  | 106,330 |  |  |  | 117,146 |
Total | $ | 1,089,223 |  |  | $ | 1,213,525 |
Geographic distribution of revenue was as follows:
| Three Months Ended June 30, |  |  | Six Months Ended June 30, |
| 2026 |  |  | 2025 |  |  | 2026 |  |  | 2025 |
United States | $ | 78,293 |  |  | $ | 76,207 |  |  | $ | 143,369 |  |  | $ | 144,033 |
Foreign |  |  |  |  |  |  |  |  |  |  |
China |  | 3,081 |  |  |  | 2,407 |  |  |  | 5,640 |  |  |  | 5,018 |
Other countries |  | 4,045 |  |  |  | 3,189 |  |  |  | 7,518 |  |  |  | 6,215 |
Total foreign |  | 7,096 |  |  |  | 5,596 |  |  |  | 13,158 |  |  |  | 11,233 |
Total | $ | 85,389 |  |  | $ | 81,803 |  |  | $ | 156,527 |  |  | $ | 155,266 |
Geographic distribution of property, plant and equipment, net was as follows:
| June 30, 2026 |  |  | December 31, 2025 |
United States | $ | 106,991 |  |  | $ | 106,250 |
Foreign |  |  |  |  |
China |  | 4,603 |  |  |  | 4,692 |
Other countries |  | 1,474 |  |  |  | 1,607 |
Total foreign |  | 6,077 |  |  |  | 6,299 |
Total | $ | 113,068 |  |  | $ | 112,549 |

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- Definition The entire disclosure for reporting segments including data and tables. 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