MDxHealth SA (MDXH) 2025 Q3 法說會逐字稿

Good morning ladies and gentlemen, and welcome to the MDxHealth third quarter 2025 earnings conference call. [Operator Instructions] I would now like to hand over the conference to John Francis from LifeSci Advisors. Thank you and over to you.

Before we begin, I would like to remind everyone that the company will make forward-looking statements during today's call, whether in prepared remarks or during the Q&A session. These forward-looking statements are subject to inherent risks and uncertainties. These risks and uncertainties are detailed in the risk factors section of the company's filings with the Securities and Exchange Commission, specifically in the company's annual report on Form 20. I'll now turn the call over to Michael McGarrity, Chief Executive Officer.

Thanks, John. And thank you all for joining us for our third quarter 2025 earnings conference call from MDX Health. With me today is Scott McMahon, interim Chief Financial Officer. We have been very consistent in our message and mission that MDX Health is driven by 3 core operating principles focus, execution, and growth.

We are excited to report results that are consistent with that internal mandate. From a focus perspective, we continue to identify high value differentiated assets as demonstrated by a recent acquisition of the exosome diagnostics business. Further positioning MDX Health with the most comprehensive industry leading menu of precision diagnostics in urology.

From an initial elevated PSA to and through each point along the diagnostic pathway of prostate cancer, MDX Health can deliver a clinically actionable diagnostics for clinicians and patients. With respect to execution.

Every operating group within our company has supported our growth with an uncommon discipline, as evidenced by the following. Our sales organization has delivered a compound annual growth rate of 45% over the last 4 years.

While significantly reducing our sales and marketing expenses as a percentage of revenue. This reflects our team's steadfast commitment to building trust and accountability with our urology customers. Allowing us to confidently invest in additional growth opportunities.

Our laboratory operations group has also kept pace with the increasing scale of our business while improving our gross margin profile through optimal efficiency and productivity. From a customer experience perspective, our entire team knows that we are only as good as our customers think we are.

The emphasis we place on the customer experience has in fact become foundational to our culture. There is nothing we do not metric and manage to help improve upon the customer experience. And through these efforts, I believe we are now resetting the industry gold standard for turnaround time from sample to result.

Which is clearly one of the most important patient and clinician-driven metrics. And finally, as it relates to growth, We are confident that MDX Health will continue to deliver market leading growth driven by focus and execution.

Coupled with a very sound and disciplined new product and acquisition strategy. As we go forward, we also expect to achieve sustained top-line growth while advancing operating profitability following our first adjusted EBITDA profitable quarter in Q2, delivered again in Q3, as well as achieving positive adjusted EBITDA on a year-to-date basis.

I would now like to highlight the results from our 3rd quarter that we believe reflect our focus, execution, and growth. Q3 revenue of $27.4 million represents 18% growth over 2024. Even with our decision to forego focus on our previously planned germline offering, an adjusted EBITDA came in at $1 million.

Our total OpEx is essentially flat for Q3 in year-to-date over 2024, up a mere 1% on 20% year-to-date top-line growth. While absorbing material acquisition related expenses.

We successfully closed on the transformative exoDX acquisition. And at the end of Q3 we began the integration from an operational and sales force perspective. In this process will be our highest priority throughout Q4.

We strengthen our laboratory operation with now 3 labs, and we'll focus on installing and advancing our quality and operating discipline goals with the team from exoDX in the Massachusetts facility. Finally, our total use of cash for Q3 was less than a million dollars.

We are confident in completing the integration of the exoDX acquisition in this 4th quarter. The integration will be focused on the following key operational areas of the business. For the commercial operation, our diligence of the exoDX opportunity led us to execute a strategic expansion of our sales organization.

From 50 direct sales reps among 6 geographic regions to now 60 direct sales reps across 8 regions. This expansion was informed by a detailed review of the customer base and ordering patterns by urologists and large urology groups. It was specifically designed to optimize cross-selling opportunities of our combined customer base.

As I noticed when we announced the acquisition, this strategy mirrors the growth thesis of our GPS acquisition, leveraging the potential to drive growth through our now expanded menu and customer base. We are conducting cross training of sales reps and integrating into the newly formed regions. Through this acquisition, we are confident that our best in class sales team will continue to execute on our growth strategy demonstrated by our track record of consistent and sustainable sales rep productivity.

And fortified by the high performing and high-quality sales reps we retained from exoDX.

Slotting them opportunistically to further drive growth and customer engagement.

Lastly, on the commercial customer front, we will be converting our select customers over to exoDX throughout Q4. And would expect to discontinue select by year end. We are confident, as we have noted, that the exoDX test provides optimal and clinically actionable results for patients and clinicians.

While providing additional ease of use. We will strive for seamless integration and provide an update at the beginning of the year on our progress and what we expect to be a successful transition. We are also focused on our laboratory operational integration. With our expanded laboratories operations in California, Texas, and now Massachusetts.

We will focus on efficiencies designed to advance our continuously improving gross margin. As well as advancing our information systems to drive additional operational efficiency. All while maintaining our relentless focus on performance metrics that achieve operating excellence and improve customer experience.

Finally, We are integrating our client service and revenue cycle management teams to best serve our patients, customers, and payers. As we strive for world-class service standards within the industry. Based on prioritizing the successful integration and customer engagement, as well as conversion of select to exoDX, we have set aside our entry into the germline market.

While we had expected material revenue contribution from ermline in the second half of this year, we are maintaining our 2025 revenue guidance of $108 million to $110 million. And we'll revisit and reevaluate the germline opportunity as we enter 2026.

Finally, as part of the exoDX acquisition, we commented on the broad IP and clinical scientific data in multiple cancers, including prostate. We will be actively evaluating strategic opportunities from this platform, both within MDX Health as they apply to our urology focus and through partnering opportunities as they may present themselves.

We now believe and are confident that no other company is better positioned to improve the patient journey through prostate cancer diagnosis and treatment. And that our results continue to reflect our success in bringing value to this patient population. I will follow-up with closing comments and a view forward, but first, let me turn the call over to Scott McMahon for a review of our financial and operating results for our 3rd quarter. Scott?

Thank you, Mike.

To follow on Mike's remarks, we are very pleased to report strong performance in the 3rd quarter of 2025.

Q3 total billable volume was approximately 33,000 tests, of which approximately 13,000 were tissue-based and 20,000 were liquid-based tests, representing total unit growth of 37% versus the prior year quarter.

Volumes for tissue-based tests, which include confirm MDX and GPS, increased approximately 18% over the prior year period.

Volumes for liquid-based tests, which include Select MDX, Resolve MDX, ermline, and the newly acquired XDX, increased approximately 65% over the prior year quarter.

Revenues for the third quarter ended September 30, 2025 increased by 18% to 27.4 million versus 23.3 million for the prior year quarter.

Issue-based tests made up 76% of revenues for Q3.

Moving below the revenue line, our gross profit for the quarter was 17.9 million, an increase of 25% as compared to 14.3 million for the third quarter of 2024.

Gross margins were 65.2% compared to 61.2% for Q324. An increase of 4% points are primarily attributed to our test mix and improved efficiencies in our operations.

Our operating loss for the quarter declined 57% to 2.6 million compared to 6.1 million for the third quarter of 2024, primarily driven by our growth in sales and gross profit.

Our net loss decreased 20% to 8 million compared to 11.2 million for the prior year.

Adjusted EBITDA for the quarter was a positive 1 million compared to a negative 3.8 million for the third quarter of 2024.

Note that a reconciliation of IRS to non-IRS financial measures has been provided in the tables included in this press release.

Cash and cash equivalents as of September 30, 2025 were 32 million. This concludes my overview of the results. I will now turn the call back to Mike.

Thanks, Scott.

We believe our Q3 results reflect the reputation we are building for excellence and focus, execution and growth.

And so as we look forward, we are committed to excellence in the following operating principles.

Discipline in our capital allocation as reflected in the linear decline in cash used in operations, with Q3 almost breaking even with respect to total use of cash.

Absolute dedication to the patient and customer experience by every single part of our organization.

The highest expectations for continued growth driven by our sales channel to meet or exceed expectations defined by performance over time.

With a culture of recognizing execution through an incentive compensation plan that rewards sustainable growth.

Our culture of quality first and customers always will ensure our building reputation for excellence in operating discipline, commercial execution.

And most importantly, the patient and customer experience will continue to fuel our growth in a sustainable way.

We are very proud of our growing reputation for meeting our exceeding expectations and delivering on our commitments to patients, customers, and the market.

Whether in the sales force, laboratory operations, revenue cycle management, client services, patient advocacy, quality and regulatory.

Our entire MDX health team operates under the mission that there is a patient and family on the other side of every sample we receive.

That is what drives our customer base to trust MDX Health as their laboratory partner for critical diagnostic tests that inform patient pathways.

We will continue to strive to deliver on our commitments of growth and value while positioning MDX Health as the leading growth precision diagnostics company focused solely into our high growth target urology market.

And as always we carry a great deal of responsibility.

Provide value to all of our stakeholders, including patients, customers, payers, and shareholders.

Thank you for your interest in and support of MDX Health. Now I'll turn the call back over to the operator for questions.

We will now begin the question-and-answer session [Operator Instructions] we have the first question on the line of Tan Brennan from TD Carbon. Please go ahead.

Great, thank you. Thanks for the questions. Maybe just the first one, just on X and the quarter, it looks like, given the liquid volumes really had a strong liquid quarter, just wondering if you can give us any color on the contribution of X in the quarter.

And then be related to that, there's some moving pieces obviously with your product portfolio as we move as we exit the year you're exiting germline.

You're de-emphasizing select, but now you have exo in there. We would net those all out to still be a positive contributor such that like you should see upside to revenues. You guys aren't baking anything in right now, maintaining the guide. Is there conservatism in that or anything you can help on that would be really great.

Yeah, Dan, I get the question. So just to be clear, to take a step.Back, we had, as we had discussed, not expected material contribution from ermline in the first half of this year. We did, however, signal and expect material contribution from ermline in Q3 and Q4.

As we entered into the process on the exo DX acquisition, it became clear that that would likely lead to a successful outcome. We adjusted that focus knowing that we would need to require all of our resources, focus, and attention on the closing of the deal which happened at the end of Q3. So part of your question is not no material contribution from exo.

And that is an offset. So without any contribution, from what we expected from germline and a Q4 contribution from exo. We're confident that we can meet or exceed our revenue guidance, that informs our view there and hopefully answers your question which I understand, so we are.

Very clear that the transition, the liquid growth in Q3 was candidly. Driven our germ, I'm sorry, our resolve business continues to accelerate. And you know we did see we announced the deal in August we didn't close till the end of September, so we really were focused on managing. I communicated when we announced the acquisition that I wasn't going to comment on.

Our strategy for select an exo in the market out of respect for our customers and sales reps that we're working that and we're confident that we navigated through that, weird period for lack of a better term with a lot of competitive competitors running around and and making assumptions that we held off so we we believe that our results for the year. And Q4 will reflect our original thesis on The opportunity ahead of us with the exo acquisition.

And the offset of germline we believe is the right strategy to ensure. Very successful integration of an expanded sales organization with territory adjustments, cross training. And maintaining the customer base while we move customers away from select and onto excel.

So hopefully that answered your question and yeah we think it's a we think we made the right decisions there and obviously we'll look forward to reporting support for those.

Okay, and then maybe any color just on GPS obviously such a big driver of revenue for the company just given the ASP you realize on that just wondering how what you could characterize.

How GPS did in the quarter, We were tracking volumes up, significantly over the last couple quarters. Just any color, how it came in, any color on price or volume or just what the environment's like, and then, what do you have kind of baked in as we think about GPS for the 4th quarter.

Yeah, so we, our tissue reported 18% growth, we feel that that's significantly, ahead of the market, growth, and we're very confident that our performance continues there with no material change to the economics and that remember that is confirmed in GPS, and Q3 we do, I usually don't comment on seasonality we did in our customer channel checks throughout the quarter.

See a little bit of a patient flow, directed slowdown in number of biopsies, but again, we wouldn't tend to apologize for 18% growth on the tissue side. So, business is going as we anticipated. And feel confident in both. I think the comment I would make is the mixed shift that you saw with tissue and liquid we view as very encouraging. In other words, our Tissue as a weighting of revenue had been running about 80%. The last two quarters, it was up to about 85% of revenue.

And what you saw in Q3 was a little bit of flip of that really driven by the strength of the resolve growth, and yet the margin held at at the 65% which is I've said in the last couple of calls is ahead of our expectations. I've been reluctant to set that as the the view forward, but obviously it shows confidence that we're seeing. Really good execution and efficiencies in our COGS and gross margin margin profile across our menu, both liquid and tissue. So we believe that's sustainable as well.

Great, and maybe just a final one just back to like the first point, so presumably. Whatever the exo contribution is, given the fact you're holding the guide, is the assumption that That contribution is around the same level. Is around the same level as the germline test and the select test, or has something changed in your underlying assumptions for the rest of the business? Thank you.

The the former, not the latter. We're still very confident in not only the core exo business that we acquired, it's early. And as we go forward over the next, 2 or 3 quarters. We'll comment on what we see as a real opportunity there with the expanded sales organization.

And a renewed focus on that part of our market opportunity because I don't want to say we had. Walked away from it, but we were clearly challenged and as I've commented, our focus, for the first half of the year was really leading toward the tissue.

I think our our resolve business is just really going based on, our sales rep focus but also a little bit of peer to peer help help there, we're probably on our 5th generation of that test, it's the best test we believe on the market unequivocally. So we really see balanced growth throughout the menu with just an adjustment in our strategy that lines us up where we expect it to be for the year.

Okay, great, thank you.

Thank you. We have the next question from the line of Andrew Brackman from William Blair. Please go ahead.

Hey guys, good afternoon. Thanks for taking the questions. Mike, you mentioned the analysis that you did of your customer bases, and that's informing some of the sales team expansion here. Any additional color you can maybe give on that analysis, how you're viewing the opportunity across the combined customer bases here and how we should be thinking about the total opportunity size? Thanks.

Yeah Andrew, so probably what you would expect, right? I mean we TRY not to overcomplicate it, but what we did was we looked at their customer base and we had pretty good information I'll just say a little bit different than the GPS that was a carve out asset acquisition this was an acquisition of the business so between signing and closing we got we got a lot of work on. The customer base, the crossover and what we really looked at was growth trends within an area of the business.

And then also looking at where there was exo business where we saw our opportunity to build our tissue side GPS and confirm. And vice versa the second comment I would make on that is that you know we know a lot of those customers because candidly they're former select customers over the past few years as the market has moved on us.

So we really looked, took a composite view of a. Sales talent, the historical ordering trends and then crossover mix of our menu within our target customer base and that informed the expansion which we think was the right number prudent it strengthens our focus so we expect.

To drive that same productivity now over a little bit larger sales organization while still being able to carry our P&L forward with all the progress we've made you know the full P&L from a from an Outbacks. Absorption and productivity across the sales organization.

That all that's great color, and then just on the integrating client service and RCM initiatives here just on the operations front, can you maybe just sort of talk to us about the opportunity that that's there on the RCM, why did you choose to do this now and how we should sort of think about the potential downstream effects? Thanks.

Yeah I guess I called that out just because you know what we retained and crossed over from the business with the key operating parts of the business, right? Salesforce set aside, we were, we saw we'll recognize synergies there based on the size of the sales organization they were carrying and what we elected to take over.

And we ran a really high-quality which was important to us, to me, really looking at each rep, each territory, each customer base, my comment there is just the three key parts of the business that we have to be in plan to be very successful integrating to our operating business is the laboratory operation which is with us now.

The client services group and the revenue cycle management group, so my comment, stands to be integrating those so that we're all working the same.

Process, focus and execution and expectations so that we can predict and protect the business as well as we have over the last number of quarters and years, and that's, that'll be the sole focus in Q4. So when we come back at the beginning of the year and provide guidance for 2026, it will be informed across all of the aspects.

To drive the P&L, right? The top-line unit growth, our coverage in cash collections. And then how we support our customers through our client service group with a menu that is more advanced than some of our competitors with you know 4 tests being ordered in a different mix set by certain customers as well so all that is what we're focused on for for Q4 and that.

That constitutes The new people in parts of the organization that are coming over that we expect in a quarter or two to be fully integrated, just as we've made progress over the last couple of years with our group that I hope I pointed to with the growth not being linearly offset by our spend on the X side and that's what we anticipated over the last number of quarters.

And we've had 1% OpEx expansion over the last year on 20% top-line growth that we expect to continue, and those are the groups that we got to make sure that we integrate so they're operating at the same efficiency, so efficiency levels that we have.

Okay, all helpful thanks guys.

Thanks.

We have the next question from the line of Bill Bonello from Craig Halem. Please go ahead.

Hey guys, thanks a lot. A few follow-up questions here. So first of all, if we're doing our math right, it looks like maybe on the tissue side that the ASP was down about 7% or so sequentially, I guess, does that sound about right? And, if so, is that a function of mix between the tests and it, it's not a function of mix sort of what's driving that move.

Yeah, I mean, Bill, we don't report our ASP by test, and we see variability each quarter. So as we go forward we don't see a material change in our view of really, our entire menu consolidated. Or how we think about our our payer mix and we'll continue to report on that each quarter but I don't view that as. Is anything notable.

Okay, because Mike, even if I, just look at the total tests and total revenue, the ASP was down, quite a bit year over year and sequentially as well, and so it's just, it, it's a little confusing there's that much fluctuation from quarter to quarter.

Yeah but, we are very conservative on our revenue cycle management estimates, as you run in the lab model, so we just, we don't, I don't have any additional comment on that.

Okay, and then I guess it just sort of want to come back to the to the guidance again because. I much like Dan, I think we had sort of assumed that the guidance would go up when you close the acquisition and, shame on us for not realizing you had that much, germline baked into the initial guidance, but, at the time you announced the XODX acquisition, you talked about, you know. Assuming it would add, at least 20 million of revenue, next year, has anything changed on that front thus far?

Nothing has changed and if you view that offset as that we expected 5 million or a little bit more in germline in the second half, that would be a good assumption because we don't guide to products but we. We wouldn't have communicated. We saw an opportunity there if we didn't intend to focus on it and execute and deliver. We don't feel that's the right use of our focus, particularly over the next couple quarters. So you're reading it right and absolutely zero change on our view of the opportunity of the contribution from exo as we go forward.

That that's that that's helpful and I know you're not going to give 2026 guidance and you know you might not even answer this but I'll I'll ask it anyway you know when we when you first sort of put that out there the way we had thought about this was gosh you're sort of a 20% grower and and we tag, 20 million or whatever you know the actual number is on on. On top of that from the acquisition, it sounds like maybe that's the wrong way to be thinking about it and we should sort of be thinking 20 million and we net out 10 million of kind of lost germline and so net net maybe you know the real ad is sort of 10 million to whatever the basic growth rate is or or you know how are you kind of thinking about that?

Well, I think I had a really smart analyst once telling me don't guide to the following year until it's time to guide to the following year, but I think what I said was we expected must have been Dan. That's a, I think.

I think I stand by our view, that we made that we expected the exo business. Could contribute $20 million or more in 2026. That was a view, not guidance, not intended to be guidance, I should say. And that view is unchanged, and I also said that I expected it to accelerate our revenue growth from 20% to close to 30%.

Again, that was our view. It wasn't intended to be guidance, so when we provide guidance at the beginning of 2026. I think our our view from today is that that those are reasonable in the ballpark assumptions of how our business builds.

That is particularly, helpful. I appreciate that and, as always, we appreciate your prudence.

Thank you, Bill.

We have the next question from the line of Mark Massaro from BTIG. Please go ahead.

Thanks guys. I enjoyed that, discourse in the last round of questions, but, I think, I'd like to, Maybe ask this one which is, Mike, I understand that the Xo test is certainly, an attractive test. You've got many other attractive tests in your bag, and.

I wanted to just get your temperature on the germline test. I recognize that you'll reevaluate that, next year, but, my sense is that you saw something in the marketplace, whether it was the competitive environment or just demand, but yeah, I mean, can you just maybe give us a little more, why are you sort of setting this test aside?

Yeah, I got the question for sure Mark.So just to be clear, we see that as a market opportunity that makes sense. For our business are offering right we have. Competitors, non-competitors, partners, if you look at, you can name them probably better than I, but everybody from exact Sciences to a couple of our competitors off of that. So having that, but candidly, in a non-materially differentiated way.

The way we anticipated, which we have I think a good track record for is when we have our sales organizations, our sales organization, and I'll speak to it individually, our sales reps that I think have built access influence and sway.

Please take that as a as a respectful term, but that's how you build and everything I say about our organization being focused on the customer experience, that's how we've built that. So our assumption and thesis on that was, it's an offering that makes sense. If you look at our resolve test, I mean, everybody's got a resolve, or I'm sorry, the, a UTI test is not unique. What we've been able to do with that business is driven by, yes, we think the best test, for complex infections in our patient population within urology.

We've continued to innovate that test. I think we're on our 4th or 5th generation. But when that started to go is when we really pushed it into our sales organization. We elected not to push that into our sales organization, so our view of what we could accomplish and achieve in that was somewhat extrapolated by our experience.

And the way we see customer adoption go from 0 to material contribution and growth of a product that is not maybe as proprietary as confirmed GPS and exo. So that was our view. We just chose not to have our reps spend time on that in the first half, as I noted for the reasons I stated.

And we made a late decision to forego it in the second half, but, for the math. The implied math question, if you made the assumption that we expected it to contribute the delta between where you might have thought we'd be with $5 million in exo and Q4 and not taking enough guidance to be clear, that's the question, I get it.

Yeah, that's a good assumption that we feel like if we roll that out at the beginning of Q3 to our sales team, that we'd be able to drive that type of adoption. We just, we, you have to remember we have sales reps now that need to be cross trained.

Adjusted to modest, but every time you adjust territories as a former sales rep they're always viewed as material, not like with the GPS when we doubled our sales organization but.

We deemed that that was the appropriate, way to cement our investment in this asset, and we don't see the germline market is going away, and as I noted, we'll revisit that.

Don't think that's a fair answer to your question.

Yeah, yes, that's great, so yeah, gross margins were really strong, over 65%, up about 400 bis in the quarter. I wanted to ask if we take Xo and just sort of like annualize it out, do you expect XO to be accretive to gross margins in 2026? And then another way to think about it is. Is 65% a level that you feel com comfortable with executing against, or are there some mixed factors that we should be thinking about for next year?

I anticipated that question coming from you, Mark, and I think we'd like a full quarter of exo. I had said that our expectation was that it would be neutral to a creative to gross margin. We have no reason to change that view. I think we want to see is a quarter or two of.

Mix. And as I referred, integrating, as we fully come over in Q4. There'll be all the financial integration as well, right? Working capital revenue cycle management, different payer mix.

Different collection profiles we are, we believe that maintaining our guidance reflects confidence that that all holds together. But again I'd probably wait till the beginning of the year so that I can give you a clear view, an informed fact-based view of 2026.

All I'm at, I'm just saying give us a quarter and a half or so to get this locked. I've said I did, we, that the gross margins running ahead of has run ahead of our expectations. I'm beginning to think that we can, see that continue, but we'll la that at the beginning of the year.

Okay, and that's helpful and then one last one for me, when we think about your new commercial team.

Was this as simple as, and just correct me if I'm wrong, was this as simple as taking your 50 direct reps and adding 10 from XO, or, was there some other, MDX reps that might have been impacted and perhaps you added more than 10 from XO? And then can you speak to the, experience and tenure of the XO reps, and just, what early indicators are you seeing, from those newer folks?

Too early to comment on the last part of your question. But the front part of your question, really no comment on that we wouldn't comment on specific people within our organization pre-acquisition or post acquisition. The net acquisition was. 1,010 direct reps and when we look at our. Our sales organization individually and collectively. We really went through that process. We analyzed and credit to our commercial team.

This I can share we put every one of their sales reps through our process as if we were hiring a new rep so I won't speak to them individually out of respect for those that came over those that didn't in our sitting sales organization going into the acquisition. But I will say that We were in a really tight process there so that's, that gives us confidence, and we learned a lot from the GPS acquisition. I was very open about that was.

More complicated than we anticipated. It took longer than we anticipated, so we're trying to take that experience and apply it here so that we really when we provide our view for the beginning of next year we'll be informed with granted only a quarter, but we're working on that right now. Great, thanks very much.

Thank you. We have the next question from the line of Thomas Flatton from Lake Street Capital. Please go ahead.

Hey, good afternoon. Appreciate you taking the question. Hey Mike, just to confirm, so with the new 10 reps coming over, was this a question of adding 2 new white space territories, or were you splitting and subsegmenting existing territories or maybe a combination of both?

Yeah, we really don't have white space, for pre-acquisition, right? We design our number of reps. Is designed to cover the full geography of the US I would say it was probably more a function of. Putting strength on strength right from my I want to wear you out with my striker experience, right, but add strength to strength and so we looked to do that but we're also opportunistic where we saw as you would expect strength in a customer base in a particular territory where maybe we hadn't been performing as well as we expected.

So that was all part of our calculus there. It's not complicated like you wouldn't understand it, but it was complicated to make sure that we went through the exercise. So that it didn't happen. So yes, the embedded question was did territories change? Yes, when you go from 50 to 60 and you're fully covered without white space, yeah, there were territory adjustments, not as, yes.

I'm, I realize this question is probably a lot early, given how early it is since the acquisition closed, but any negative feedback or pushback from Docs making the switch from select to Xo? I don't know how you've been messaging that to docs that you're in the process of doing that.

Too early to comment, but we're confident that that will not create friction or tension on our on our customer base. And again, please take this right way, but it's somewhat informed by the customers that already converted in voluntarily from select to exo. It's just a better test. Yeah, got it.

Appreciate it, thanks.

Thank you, Thomas.

Thank you. Ladies and gentlemen, this concludes our question answer session. The conference call is now concluded. Thank you for attending to this presentation. You may now disconnect.