MDxHealth (NASDAQ: MDXH) shares surged 127.25% to $1.04 on Friday after the diagnostic company reported second-quarter 2026 financial results that showed accelerating top-line growth and reaffirmed full-year guidance. Revenue reached $27.2 million, marking a 16% year-over-year increase and beating the consensus estimate of $25.884 million. However, the company reported a loss of 18 cents per share, missing the consensus loss of 16 cents.

Management described the quarter as showing the largest sequential revenue acceleration in the company's history, driven by the core tissue-based testing business. CEO Michael McGarrity stated that the company is well-positioned to return to positive adjusted EBITDA as it exits 2026, citing disciplined commercial execution and a strengthened balance sheet.

Financial Performance

While revenue grew, profitability metrics contracted due to higher operating costs associated with the ExoDx integration. Gross profit rose 11% year-over-year to $17.9 million, but gross margins declined 2.9 percentage points to 65.7% from 68.6% in Q2 2025. This margin compression was attributed to the shift in product mix toward tissue-based tests. Operating losses widened to $5.1 million from $1.5 million in the prior year period, driven by increased headcount and operating expenses.

*Note: Q2 2025 revenue derived from reported 16% YoY increase on $27.2 million.

Test Volume Dynamics

The company provided a detailed breakdown of test volumes, highlighting a divergence between tissue-based and liquid-based segments:

• Tissue-based tests (Confirm mdx and GPS mdx): Volume was 12,525, representing a 1% decrease year-over-year but a 13% sequential increase. This includes a sequential increase of more than 1,400 tests following the refocus of the sales force after the ExoDx acquisition integration.
• Liquid-based tests (Exo mdx): Volume reached 13,578, compared to Select mdx volume of 4,455 for the same period last year.

Management expects tissue growth rates to accelerate further in the second half of 2026, driving the return to positive adjusted EBITDA.

Balance Sheet and Strategic Wind-Down

MDxHealth finalized the strategic wind-down of its Resolve UTI business, ceasing operations at its Plano, Texas laboratory by June 30, 2026. This move allowed the company to classify the segment as a discontinued operation, removing a $10.4 million contingent liability to Novitas from its corporate structure. All Resolve customers were successfully transitioned without disrupting the broader customer base.

To strengthen its financial position, the company executed a registered direct placement raising $20 million in August 2026, priced at market value with no discount or warrant structure. As of June 30, 2026, cash and cash equivalents stood at $19.2 million. Including the proceeds from the capital raise, the pro forma cash balance would have been $39.2 million.

What the Numbers Show

The divergence between top-line momentum and bottom-line pressure highlights the transitional nature of MDxHealth’s current financial profile. While revenue grew 16% year-over-year, adjusted EBITDA swung from a positive $1.1 million to a negative $2.3 million. This reversal indicates that the incremental revenue generated did not offset the fixed cost increases associated with the ExoDx acquisition integration in this quarter. However, the elimination of the $10.4 million contingent liability through the Resolve wind-down represents a significant de-risking event, removing a potential future cash outflow that previously hung over the balance sheet. The company’s ability to return to EBITDA positivity will depend on whether the anticipated linear revenue acceleration in H2 2026 can absorb these elevated operating expenses without further margin compression.

Outlook

Management reaffirmed its full-year 2026 revenue guidance of $110 million to $115 million, implying a year-over-year growth rate of 20% to 26%. This outlook exceeds the consensus estimate of $98.814 million. CEO Michael McGarrity noted that Q2 signals a return to the sales force’s full focus on the core urology market, with expectations for linear revenue progression in Q3 and Q4, barring minor seasonal fluctuations. The company continues to advance its AI initiatives and leverage data from the Oxford PROMPT study to support growth in the active surveillance patient population.

Mdxhealth SA has received a notification from The Nasdaq Stock Market LLC indicating it is not in compliance with the minimum bid price requirement for continued listing. The company has been granted 180 calendar days, or until December 28, 2026, to regain compliance with Nasdaq Listing Rule 5550(a)(2). This development does not immediately impact the company's listing on The Nasdaq Capital Market.

The notification, dated June 30, 2026, was issued by the Listing Qualifications Department of The Nasdaq Stock Market LLC. It cites a failure to meet the minimum bid price set forth in Nasdaq Listing Rule 5550(a)(2), which requires listed securities to maintain a minimum bid price of US$1.00 per share. The press release was issued pursuant to Nasdaq Listing Rule 5810(b), which mandates prompt disclosure upon receipt of such a deficiency notification.

Under the provisions of Nasdaq Listing Rule 5810(c)(3)(A), Mdxhealth SA has the specified 180-day period to cure the deficiency. To regain compliance, the company must achieve a minimum closing bid price of US$1.00 per share for at least ten consecutive business days. If compliance is not achieved by the deadline, the company may be subject to delisting proceedings, though it may be eligible for additional time or may pursue other remedial measures provided by Nasdaq rules.

The company stated that its business operations are not affected by the receipt of the Notification Letter. Mdxhealth SA intends to monitor the closing bid price of its ordinary shares and may, if appropriate, consider implementing available options, including a reverse share split of its outstanding ordinary shares, to regain compliance with the minimum bid price requirement under the Nasdaq Listing Rules.