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Reportable Segments and Geographic Information
 6 Months Ended
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