VolitionRx Q3 2025: Contradictions Emerge on Werfen Partnership Revenue, Cost-Cutting Strategy, and Lung Cancer Study Progress

Date of Call: November 14, 2025

Financials Results

• Revenue: $0.6M, up 32% YOY (Q3 2025)

Guidance:

• Company will not provide formal revenue guidance at this time.
• Expect additional human-diagnostics licensing deals in 2026 (ongoing discussions with ~10 partners).
• Werfen and Hologic partnerships anticipated to contribute to top-line growth going into 2026 (Hologic has made first sale; Werfen validating on clinical samples).
• Nu.Q Vet automation (IDS-i10 validated) expected to enable centralized labs and potential inclusion in wellness panels, driving 2026 vet revenue.
• Multiple peer-reviewed publications and first clinical uses expected in the near term; feline milestone payment expected after paper publication.

Business Commentary:

* Revenue Growth and Partnerships: - VolitionRx Limited reported revenue growth of 32% for Q3 2025 compared to the same quarter last year, with $0.6 million in revenue. - This growth was driven by partnerships with multibillion-dollar companies like Werfen and Hologic, which gained access to Volition's Nu.Q assets for research and commercial purposes.

• Operational Efficiency and Cost Management:
• Operating expenses were down 10% year-on-year and 18% for the first three quarters, with net cash used in operating activities decreasing by 33% over the previous year.

• This was due to lower personnel costs and research and development expenses, reflecting strong cost management efforts.

• Scientific Advancements and Technology Pipeline:

• Volition submitted a paper on the Capture-Seq technology, which targets a new class of cancer biomarkers, allowing the concentration of chromatin fragments and tumor DNA.

• The company expects this breakthrough to have significant implications for liquid biopsy diagnostics and is actively pursuing licensing discussions for this new method.

• Commercialization and Market Expansion:

• Two agreements were signed with Werfen and Hologic for commercialization of Volition's Nu.Q platform, contributing to a broader strategy that aims to leverage installed machine bases and customer reach of partners.
• The company is in active discussions with over ten leading diagnostic companies, anticipating further licensing deals to expand its presence in the human diagnostics market.
  
  

  Sentiment Analysis:

  Overall Tone: Positive

  • Management highlighted Q3 revenue up 32% to $0.6M, operating costs down 10% Y/Y, net cash used in operations down 33% to $3.6M; announced two strategic deals with Werfen and Hologic; received ~$6.1M net proceeds after quarter-end offering; management called the next few quarters "transformative" and expects multiple licensing deals and near-term clinical publications.

Q&A:

• Question from Justin Walsh (JonesTrading Institutional Services, LLC, Research Division): Can you provide some additional color on the size of the antiphospholipid syndrome market and how it compares to other potential Nu.Q NET applications you guys are looking at?
  Response: APS affects ~4 million people with a TAM of ~$85–$90M; APS is a good initial NETs target though larger NET markets (e.g., sepsis, AKI) are substantially bigger.

• Question from Yi Chen (H.C. Wainwright & Co, LLC, Research Division): Could you tell us whether the Werfen partnership has made any contribution to the third quarter revenue? And also, how do you expect the Werfen and the Hologic partnerships to shape the top line revenue trend in 2026?
  Response: Werfen did not contribute to Q3 revenue (still validating); Hologic has already made a first sale and will contribute going forward; both deals are expected to be important growth drivers and catalyze further licensing.

• Question from Yi Chen (H.C. Wainwright & Co, LLC, Research Division): With respect to those ongoing discussions with additional partnerships, how many do you expect to close in 2026?
  Response: Management cannot specify a number but expects a range of additional deals in 2026; timing is uncertain as large partners vary in pace.

• Question from Steven Ralston (Zacks Investment Research, Inc.): Can you give some sort of breakdown of the product revenues? I know it consists of the Nu.Q Vet test and the Discover kits. In the vet, was there any like stocking for Fuji? Or was there some lumpiness in the Discover side?
  Response: Revenue remains lumpy; Discover is project-based and fluctuates; both services and product revenue had a strong quarter but no pillar-level breakdown provided.

• Question from Steven Ralston (Zacks Investment Research, Inc.): Do you think there will be a time where you'll actually break it down that we'll see product lines like in the vet space and Discovery each have a separate revenue line?
  Response: When individual pillars become material and consistently sizable, the company will consider breaking out pillar-level reporting; currently each pillar is too small and lumpy.

• Question from Steven Ralston (Zacks Investment Research, Inc.): On expenses — have you come to the end of the cost cutting and is this the new baseline, or is there still more to come?
  Response: Major cost reductions have been achieved and further savings will be harder vs. tough comparatives, though management will continue to control expenses while balancing investment to deliver deals.

• Question from Steven Ralston (Zacks Investment Research, Inc.): I noticed that some preliminary results from the ongoing lung cancer study were presented — was there any new information there?
  Response: No new public results this call; significant new data will be presented at the Chicago conference in December and the company expects routine clinical use to begin in the short-to-medium term.

• Question from Bruce Jackson (The Benchmark Company, LLC, Research Division): Broad brush, were there any upfront payments in those agreements with Werfen and Hologic?
  Response: Werfen included upfront and ongoing payments (terms confidential); Hologic is a co-marketing arrangement without an upfront payment, and has already made a sale.

• Question from Bruce Jackson (The Benchmark Company, LLC, Research Division): The milestone for the feline cancer testing, where do you think that might hit?
  Response: The feline milestone is tied to publication of the paper; once the study is completed and the paper is published the payment is expected to follow shortly thereafter.

• Question from Bruce Jackson (The Benchmark Company, LLC, Research Division): There were some Series A warrants that were milestone-based. Has that milestone been met with the announcement of the agreements? What are the conditions for that?
  Response: The aggregate milestone payment threshold required to trigger the warrants has not been met, so the warrants have not been triggered.

Contradiction Point 1

Partnership Revenue Contributions

It directly impacts expectations regarding the financial contributions of partnership agreements, which are crucial for the company's revenue growth and investor confidence.

Has the Werfen partnership contributed to Q3 revenue? - Yi Chen(H.C. Wainwright & Co)

2025Q3: Werfen has not yet contributed to revenue as they are in the validation process. - Cameron Reynolds(CEO)

What operational collaborations exist with Texas A&M, IDEXX, and Heska Tech for Nu.Q Vet? - Steven Ralston(Zacks Investment Research, Inc.)

2025Q1: We are currently in consultation with Werfen to ensure all legal and regulatory compliance requirements are met. - Louise Batchelor Day(CMO)

Contradiction Point 2

Cost-cutting Strategy

It involves changes in the company's approach to cost management, which is critical for financial sustainability and investor confidence.

Are there further cost-cutting measures planned after the significant reduction? - Steven Ralston(Zacks Investment Research, Inc.)

2025Q3: The pace will be slower going forward because we've taken out about $5 million of that, and there's not a lot left to take out. We will continue to be mindful of our cost structure as we move forward. - Terig Hughes(CFO)

Is the current operating expenses level sustainable for the remainder of 2025? - Ilya Zubkov(Freedom Broker)

2025Q1: Maintaining a lean operation is crucial during commercialization, especially as we launch the Dayton, Ohio lab. - Cameron Reynolds(CEO)

Contradiction Point 3

Lung Cancer Study Update

It pertains to the progress and expected outcomes of the lung cancer study, which is instrumental for the company's research and development efforts.

Is there new information in the ongoing lung cancer study? - Steven Ralston (Zacks Investment Research, Inc.)

2025Q3: The basic Nu.Q platform is progressing well and anticipates routine use in humans soon. - Cameron Reynolds(CEO)

Which uses of the Nu.Q platform are most appealing to partners in human health? - Justin Howard Walsh (JonesTrading)

2025Q2: We have seen encouraging results. But I'll point out that we are still very early on in our work on this. - Cameron Reynolds(CEO)

Contradiction Point 4

Werfen Partnership Contribution to Revenue

It affects the expected timeline and financial impact of a key partnership, which could influence revenue projections and investor expectations.

Did the Werfen partnership contribute to Q3 revenue? How do you expect the Werfen and Hologic partnerships to impact top-line revenue growth by 2026? - Yi Chen(H.C. Wainwright & Co, LLC)

2025Q3: Werfen has not yet contributed to revenue as they are in the validation process. They are expected to have a broader partnership in the future. - Cameron Reynolds(CEO)

Can you provide an update on the sales or revenue contributions from the Werfen and Hologic partnerships in 2025 or 2026? - Steven Ralston(Zacks Investment Research)

2024Q4: Regarding the Werfen and the Hologic partnerships, you've had some good news there, but in terms of sales or revenue contributions in '25 or '26, could you give us a brief update? - Steven Ralston(Zacks Investment Research)