Biodesix's Q1 2025: Unraveling Contradictions in Sales Strategy, EBITDA Targets, and Revenue Growth

Sales force expansion and strategy, adjusted EBITDA breakeven target, territory size and resource allocation, sales force expansion and strategy, revenue growth and cost containment are the key contradictions discussed in Biodesix's latest 2025Q1 earnings call.



Revenue Growth and Sales Force Reconfiguration:
- Biodesix reported revenue of $18 million for Q1 2025, which is 21% higher than the previous year.
- Despite reducing the sales force from 71 to 65 reps in Q1, the growth was driven by a 18% increase in lung diagnostic revenue and cost discipline resulting in a year-over-year decrease in SG&A costs.

Development Services Expansion:
- Biodesix's development services revenue increased by 61% to $1.7 million in Q1 2025.
- This growth was supported by a strong pipeline with $10.9 million under contract but not yet recognized, indicating significant potential for future growth.

Operational Efficiency and Margin Improvements:
- The company achieved a gross margin of 79.4%, an improvement of 80 basis points from the previous year.
- Operational efficiencies and cost containment efforts led to a year-over-year decrease in SG&A expenses, enhancing operational leverage and contributing to a 11% improvement in adjusted EBITDA.

Pipeline Advancements:
- Significant progress was made in the pipeline with plans to commercialize a new combination MRD test using genomics and proteomics by the end of 2025.
- Presentations on VeriStrat's expanded use and data from prospective studies solidified its value in the market, broadened its indications, and supported a strategic focus on immunotherapy selection.