NEOGENOMICS INC

Previous wording

•Molecular testing – a rapidly growing field which includes a broad range of laboratory techniques utilized in cancer testing. Most molecular techniques rely on the analysis of DNA and/or RNA, as well as the structure and function of genes at the molecular level. Common molecular testing technologies include DNA fragment length analysis; polymerase chain reaction (“PCR”) analysis; reverse transcriptase polymerase chain reaction (“RT-PCR”) analysis, real-time (or quantitative) polymerase chain reaction (“qPCR”) analysis; bi-directional Sanger sequencing analysis; and next-generation sequencing (“NGS”) analysis.

Current wording

•Molecular testing – a rapidly growing field which includes a broad range of laboratory techniques utilized in cancer testing. Most molecular techniques rely on the analysis of DNA and/or RNA, in order to identify genetic alterations associated with disease. Common molecular testing technologies include DNA fragment length analysis; polymerase chain reaction (“PCR”) analysis; reverse transcriptase polymerase chain reaction (“RT-PCR”) analysis, real-time (or quantitative) polymerase chain reaction (“qPCR”) analysis; Sanger sequencing analysis; and next-generation sequencing (“NGS”) analysis.

Previous wording

In 2024, we simplified our operational approach, bringing Clinical Services and Advanced Diagnostics under a single segment. This decision was driven by an analysis of our reporting structure, the information available to our Chief Operating Decision Maker (“CODM”), and the strategic decisions being made to manage the business. This decision aims to streamline our operations and enhance our service offerings to our diverse client base, which includes community-based pathology and oncology practices, hospital pathology labs, reference labs, academic centers, and pharmaceutical companies.

Current wording

We operate under a single segment based on an analysis of our reporting structure, the information available to our Chief Operating Decision Maker (“CODM”), and the strategic decisions being made to manage the business. This approach aims to streamline our operations and enhance our service offerings to our diverse client base, which includes community-based pathology and oncology practices, hospital pathology labs, reference labs, academic centers, and pharmaceutical companies.

Previous wording

Our single operating segment now encompasses a comprehensive range of services previously categorized under Clinical Services and Advanced Diagnostics. The revenue streams include:

Current wording

Our single operating segment encompasses a comprehensive range of services. The revenue streams include:

Previous wording

By streamlining our segments, we aim to provide a seamless and integrated service offering to our clients. This approach allows us to leverage our expertise in oncology and molecular diagnostics to support both clinical and pharmaceutical clients more effectively. Our commitment to connecting patients with life-altering therapies and trials remains a core focus. We have invested in leading technologies to secure data and maintain transparency and choice for patients through our Notice of Privacy Practices.

Current wording

We aim to provide a seamless and integrated service offering to our clients. Our operating approach allows us to leverage our expertise in oncology and molecular diagnostics to support both clinical and pharmaceutical clients more effectively. Our commitment to connecting patients with life-altering therapies and trials remains a core focus. We have invested in leading technologies to secure data and maintain transparency and choice for patients through our Notice of Privacy Practices.

Previous wording

Our direct sales force has been trained extensively in cancer genetic testing and consultative selling skills to service the needs of clients. Our clinical services sales team is organized into nine regions in the United States – Northeast, Northwest, Mid-Atlantic, South, Southeast, North Central, West, Great Lakes, and South Central. Our sales team is focused on value-based care solutions and end-to-end client experience as a growth driver. For our pharmaceutical development services, we have a dedicated team of business development specialists who are experienced in working with sponsors and helping them with the testing needs of their research and development projects as well as Phase I, II and III studies. These sales representatives utilize our custom Customer Relationship Management System (“CRM”) to manage their territories, and we have integrated the key customer care functionality within our LIMS into the CRM so that our sales representatives can stay informed of emerging issues and opportunities within their regions. Our in-house customer care team is aligned with our field sales team to serve the needs of our clients by utilizing the same LIMS and CRM. Our field teams can see in real time when a client calls the laboratory, the reason for the call and the resolution, and determine if face-to-face interaction is needed for follow-up. Our sales force educates clients on new test offerings and their proper utilization, and our representatives are often seen as trusted advisors by our clients.

Current wording

Our direct sales force has been trained extensively in cancer genetic testing and consultative selling skills to service the needs of clients. Our clinical services sales team is organized into ten regions in the United States – Northeast, Pacific North, South Central, South East, West, Mid-Atlantic, Mountain, Central, Great Lakes and Florida. Our sales team is focused on value-based care solutions and end-to-end client experience as a growth driver. For our pharmaceutical development services, we have a dedicated team of business development specialists who are experienced in working with sponsors and helping them with the testing needs of their research and development projects as well as Phase I, II and III studies. These sales representatives utilize our custom Customer Relationship Management System (“CRM”) to manage their territories, and we have integrated the key customer care functionality within our LIMS into the CRM so that our sales representatives can stay informed of emerging issues and opportunities within their regions. Our in-house customer care team is aligned with our field sales team to serve the needs of our clients by utilizing the same LIMS and CRM. Our field teams can see in real time when a client calls the laboratory, the reason for the call and the resolution, and determine if face-to-face interaction is needed for follow-up. Our sales force educates clients on new test offerings and their proper utilization, and our representatives are often seen as trusted advisors by our clients.

Previous wording

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA includes significant changes to federal tax law and other regulatory provisions that may impact the Company. The Company is currently assessing the impact of the OBBBA on its business, outlook, and financial statements.

Current wording

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA includes significant changes to federal tax law and other regulatory provisions that may impact the Company. Based on the Company’s evaluation, the OBBBA will have immaterial impacts to the Company’s financial results.

Previous wording

Results of Operations for the Three and Six Months Ended June 30, 2025 as Compared to the Three and Six Months Ended June 30, 2024

Current wording

Results of Operations for the Three and Nine Months Ended September 30, 2025 as Compared to the Three and Nine Months Ended September 30, 2024

Previous wording

The Company has historically reported its activities in two reportable segments, (1) Clinical Services and (2) Advanced Diagnostics. In 2024, we simplified our operational approach, bringing Clinical Services and Advanced Diagnostics under a single segment. The consolidated revenue for the three and six months ended June 30, 2025 and 2024, are as follows:

Current wording

The consolidated revenue for the three and nine months ended September 30, 2025 and 2024, are as follows:

Previous wording

Revenue for the three and six months ended June 30, 2025 increased $16.8 million or 10.2%, and increased $28.6 million or 8.9%, respectively, as compared to 2024. Increases in revenue primarily reflect an increase in test volume, an increase in average unit price due to strategic reimbursement initiatives, and revenue from the acquisition of Pathline partially offset by lower non-clinical revenue due to macro clinical trial trends in the pharmaceutical industry and a less favorable test mix.

Current wording

Revenue for the three and nine months ended September 30, 2025 increased $20.0 million or 11.9%, and increased $48.6 million or 9.9%, respectively, as compared to 2024. Increases in revenue primarily reflect an increase in test volumes, a shift to higher value tests, and the positive impact of strategic reimbursement initiatives. Revenues from the Pathline acquisition also contributed to revenue growth, which was partially offset by lower non-clinical revenue due to macro clinical trial trends in the pharmaceutical industry, and a less favorable test mix.

Previous wording

The consolidated cost of revenue and gross profit metrics for the three and six months ended June 30, 2025 and 2024 are as follows:

Current wording

The consolidated cost of revenue and gross profit metrics for the three and nine months ended September 30, 2025 and 2024 are as follows:

Previous wording

(1) Cost of revenue for the three months ended June 30, 2025 includes $4.8 million of amortization of acquired intangible assets and $0.3 million of stock-based compensation. Cost of revenue for the three months ended June 30, 2024 includes $4.9 million of amortization of acquired intangible assets and $0.3 million of stock-based compensation. Cost of revenue for the six months ended June 30, 2025 includes $9.7 million of amortization of acquired intangible assets and $0.7 million of stock-based compensation. Cost of revenue for the six months ended June 30, 2024 includes $9.8 million of amortization of acquired intangible assets and $0.7 million of stock-based compensation.

Current wording

(1) Cost of revenue for the three months ended September 30, 2025 includes $4.6 million of amortization of acquired intangible assets and $0.3 million of stock-based compensation. Cost of revenue for the three months ended September 30, 2024 includes $4.9 million of amortization of acquired intangible assets and $0.3 million of stock-based compensation. Cost of revenue for the nine months ended September 30, 2025 includes $14.3 million of amortization of acquired intangible assets and $1.1 million of stock-based compensation. Cost of revenue for the nine months ended September 30, 2024 includes $14.8 million of amortization of acquired intangible assets and $1.0 million of stock-based compensation.

Previous wording

Consolidated cost of revenue increased 13.1% for the three months ended June 30, 2025 as compared to 2024. This increase was primarily due to $7.3 million in higher compensation and benefit costs, a $3.9 million increase in supplies expense, and a $0.7 million increase in postage and shipping costs partially offset by $0.8 million decrease in depreciation expense.

Current wording

Consolidated cost of revenue increased 15.5% for the three months ended September 30, 2025 as compared to 2024. This increase was primarily due to $7.2 million in higher compensation and benefit costs, a $6.1 million increase in supplies expense, and a $0.6 million increase in postage and shipping costs partially offset by $1.0 million decrease in depreciation expense.

Previous wording

Consolidated cost of revenue increased 8.8% for the six months ended June 30, 2025 as compared to 2024. This increase was primarily due to $10.1 million in higher compensation and benefit costs, a $5.7 million increase in supplies expense, and a $1.1 million increase in postage and shipping costs partially offset by $1.8 million decrease in depreciation expense.

Current wording

Consolidated cost of revenue increased 11.1% for the nine months ended September 30, 2025 as compared to 2024. This increase was primarily due to $17.3 million in higher compensation and benefit costs, a $11.8 million increase in supplies expense, and a $1.7 million increase in postage and shipping costs partially offset by $2.8 million decrease in depreciation expense.

Previous wording

Gross profit margin for the three and six months ended June 30, 2025 was 42.6% and 43.1%, respectively, compared to 44.1% and 43.0% in the same period of 2024. For the three and six months ended June 30, 2025, the decrease of 1.5% and increase of 0.1%, respectively, was primarily related to the increase in revenue offset by higher compensation and benefit costs and an increase in supplies expense.

Current wording

Gross profit margin for the three and nine months ended September 30, 2025 was 42.8% and 43.0%, respectively, compared to 44.6% and 43.6% in the same period of 2024. For the three and nine months ended September 30, 2025, the decrease of 1.8% and 0.6%, respectively, was primarily related to higher compensation and benefit costs and an increase in supplies expense partially offset by the increase in revenue.

Previous wording

General and administrative expenses increased $8.4 million for the three months ended June 30, 2025, when compared to the same period in 2024. This increase was partially due to a $2.7 million increase in software and software development costs, a $2.4 million increase in compensation and benefit costs, a $2.2 million increase in professional fees, and an increase in transaction costs of $0.5 million. These increases were partially offset by a decrease of $0.5 million in equipment maintenance.

Current wording

General and administrative expenses increased $2.9 million for the three months ended September 30, 2025, when compared to the same period in 2024. This increase was partially due to a $3.1 million increase in compensation and benefit costs, a $1.7 million increase in software and software development costs, a $0.9 million increase in consulting costs, and a $0.4 million increase in recruiting costs. These increases were partially offset by a decrease of $2.3 million in legal fees.

Previous wording

General and administrative expenses increased $10.8 million for the six months ended June 30, 2025, when compared to the same period in 2024. This increase was partially due to a $6.9 million increase in compensation and benefit costs, a $4.2 million increase in software and software development costs, and a $1.7 million increase in transaction costs. These increases were partially offset by a decrease of $1.0 million in equipment maintenance, and a decrease of $0.7 million in facilities related expense.

Current wording

General and administrative expenses increased $13.7 million for the nine months ended September 30, 2025, when compared to the same period in 2024. This increase was partially due to a $10.0 million increase in compensation and benefit costs, a $5.9 million increase in software and software development costs, and a $1.9 million increase in transaction costs. These increases were partially offset by a decrease of $1.4 million in equipment maintenance, a decrease of $1.3 million in legal fees, and a decrease of $0.5 million in facilities related expense.

Previous wording

Research and development expenses increased $3.7 million for the six months ended June 30, 2025 when compared to the same period in 2024. This increase was primarily due to a $1.2 million increase in compensation and benefit costs, a $1.0 million decrease in U.K. research and development tax credits, a $0.6 million increase in supplies expense, and a $0.5 million increase in professional fees.

Current wording

Research and development expenses increased $1.0 million for the three months ended September 30, 2025 when compared to the same period in 2024. This increase was primarily due to a $0.5 million increase in supplies expense, a $0.5 million increase in compensation and benefit costs, and a $0.1 million increase in professional fees.

Previous wording

Sales and marketing expenses increased $2.4 million for the three months ended June 30, 2025 when compared to the same period in 2024. This increase was primarily due to a $1.7 million increase in compensation and benefit costs due to the expansion of our sales force, an increase in professional fees of $0.3 million, and an increase in conference and tradeshow costs of $0.2 million.

Current wording

Sales and marketing expenses increased $1.4 million for the three months ended September 30, 2025 when compared to the same period in 2024. This increase was primarily due to a $1.2 million increase in compensation and benefit costs due to the expansion of our sales force, and an increase in professional fees of $0.1 million.

Previous wording

Sales and marketing expenses increased $4.9 million for the six months ended June 30, 2025 when compared to the same period in 2024. This increase was primarily due to a $3.0 million increase in compensation and benefit costs due to the expansion of our sales force, an increase in professional fees of $0.8 million, and an increase in travel fees of $0.4 million.

Current wording

Sales and marketing expenses increased $6.3 million for the nine months ended September 30, 2025 when compared to the same period in 2024. This increase was primarily due to a $4.2 million increase in compensation and benefit costs due to the expansion of our sales force, an increase in professional fees of $1.0 million, and an increase in travel fees of $0.3 million.

Previous wording

Restructuring charges decreased $1.5 million and $3.9 million for the three and six months ended June 30, 2025, respectively, when compared to the same period in 2024 due to the completion of restructuring activities as of December 31, 2024.

Current wording

Restructuring charges decreased $1.0 million and $5.0 million for the three and nine months ended September 30, 2025, respectively, when compared to the same period in 2024 due to the completion of restructuring activities as of December 31, 2024.

Previous wording

Impairment charges increased $20.0 million for each of the three and six months ended June 30, 2025, when compared to the same period in 2024. Impairment charges consisted of an $11.4 million impairment on InVisionFirst®-Lung intangible assets, a $8.2 million impairment on disposal groups held for sale, and a $0.4 million loss on InVisionFirst®-Lung inventory write-off.

Current wording

Impairment charges increased $7.1 million and $27.1 million for the three and nine months ended September 30, 2025, respectively, when compared to the same period in 2024. Impairment charges consisted of an $11.4 million impairment on InVisionFirst®-Lung intangible assets, a $15.3 million impairment on the disposal group held for sale, and a $0.4 million loss on InVisionFirst®-Lung inventory write-off.

Previous wording

Interest income for the three and six months ended June 30, 2025 and 2024 is as follows:

Current wording

Interest income for the three and nine months ended September 30, 2025 and 2024 is as follows:

Previous wording

Interest income was $2.3 million and $6.0 million for the three and six months ended June 30, 2025, respectively, compared to income of $4.6 million and $9.4 million for the same periods in 2024, respectively. Interest income includes interest earned on funds held in our cash equivalent and marketable securities accounts. The decrease in interest income for the three and six months ended June 30, 2025 was primarily due to a reduction in the average balance of invested cash and a lower interest rate environment when compared to the same periods in 2024.

Current wording

Interest income was $1.6 million and $7.5 million for the three and nine months ended September 30, 2025, respectively, compared to income of $4.7 million and $14.1 million for the same periods in 2024, respectively. Interest income includes interest earned on funds held in our cash equivalent and marketable securities accounts. The decrease in interest income for the three and nine months ended September 30, 2025 was primarily due to a reduction in the average balance of invested cash and a lower interest rate environment when compared to the same periods in 2024.

Previous wording

Interest expense for the three and six months ended June 30, 2025 and 2024 is as follows:

Current wording

Interest expense for the three and nine months ended September 30, 2025 and 2024 is as follows:

Previous wording

Interest expense was $0.9 million and $2.6 million for the three and six months ended June 30, 2025, respectively, compared to expense of $1.7 million and $3.4 million for the same periods in 2024. Interest expense for the three and six months ended June 30, 2025 and 2024 primarily reflects the effective interest rate on the 2028 Convertible Notes and the 2025 Convertible Notes which is 0.70% and 1.96%, respectively. Interest on the 2028 Convertible Notes and 2025 Convertible Notes began accruing upon issuance and is payable semi-annually. These decreases are primarily attributable to the maturity and settlement of the Company's 2025 Convertible Notes in the three months ended June 30, 2025.

Current wording

Interest expense was $0.6 million and $3.2 million for the three and nine months ended September 30, 2025, respectively, compared to expense of $1.6 million and $5.0 million for the same periods in 2024. Interest expense for the three and nine months ended September 30, 2025 and 2024 primarily reflects the effective interest rate on the 2028 Convertible Notes and the 2025 Convertible Notes which is 0.70% and 1.96%, respectively. Interest on the 2028 Convertible Notes and 2025 Convertible Notes began accruing upon issuance and is payable semi-annually. These decreases are primarily attributable to the maturity and settlement of the Company's 2025 Convertible Notes during the second quarter of 2025.

Previous wording

The following table provides consolidated net loss for each period along with the computation of basic and diluted net loss per share for the three and six months ended June 30, 2025 and 2024 (in thousands, except net loss per share data):

Current wording

The following table provides consolidated net loss for each period along with the computation of basic and diluted net loss per share for the three and nine months ended September 30, 2025 and 2024 (in thousands, except net loss per share data):

Previous wording

“Adjusted EBITDA” is defined by NeoGenomics as net (loss) income from continuing operations before: (i) interest income, (ii) interest expense, (iii) tax (benefit) or expense, (iv) depreciation and amortization expense, (v) stock-based compensation expense, and, if applicable in a reporting period, (vi) restructuring charges, (vii) CEO transition costs, (viii) impairment charges, (ix) intellectual property (“IP”) litigation costs, and (x) other significant or non-operating (income) or expenses, net.

Current wording

“Adjusted EBITDA” is defined by NeoGenomics as net (loss) income from continuing operations before: (i) interest income, (ii) interest expense, (iii) tax (benefit) or expense, (iv) depreciation and amortization expense, (v) stock-based compensation expense, and, if applicable in a reporting period, (vi) CEO transition costs, (vii) acquisition and integration related expenses, (viii) restructuring charges, (ix) impairment charges, (x) intellectual property (“IP”) litigation costs, and (xi) other significant or non-operating (income) or expenses, net.

Previous wording

The following is a reconciliation of GAAP net loss to Non-GAAP EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2025:

Current wording

The following is a reconciliation of GAAP net loss to Non-GAAP EBITDA and Adjusted EBITDA for the three and nine months ended September 30, 2025:

Previous wording

(1) For the three months ended June 30, 2025, CEO transition costs include executive retention costs. For the six months ended June 30, 2025, CEO transition costs include severance costs, executive retention costs, and executive search costs. There were no such costs for the three and six months ended June 30, 2024.

Current wording

(1) For the three months ended September 30, 2025, CEO transition costs include executive retention costs. For the nine months ended September 30, 2025, CEO transition costs include severance costs, executive retention costs, and executive search costs. There were no such costs for the three and nine months ended September 30, 2024.

Previous wording

(2)For the three and six months ended June 30, 2025, acquisition and integration related expenses include consulting and legal fees, severance costs, and employee retention costs.

Current wording

(2)For the three and nine months ended September 30, 2025, acquisition and integration related expenses include consulting and legal fees, severance costs, and employee retention costs. There were no such costs for the three and nine months ended September 30, 2024.

Previous wording

(3)For the three and six months ended June 30, 2025, impairment charges include losses from InVisionFirst®-Lung intangible asset impairment and inventory write-off, and impairment of disposal groups held for sale. There were no such costs for the three and six months ended June 30, 2024.

Current wording

(3)For the three months ended September 30, 2025, impairment charges include an impairment of a disposal group held for sale. For the nine months ended September 30, 2025, impairment charges include losses from InVisionFirst®-Lung intangible asset impairment and inventory write-off, and impairment of a disposal group held for sale. There were no such costs for the three and nine months ended September 30, 2024.

Previous wording

(4) For the three and six months ended June 30, 2025 and June 30, 2024, IP litigation costs include legal fees.

Current wording

(4) For the three and nine months ended September 30, 2025, IP litigation costs include legal fees. For the three and nine months ended September 30, 2024, IP litigation costs include a settlement payment and legal fees.

Previous wording

(5) For the three and six months ended June 30, 2024, other significant (income) expenses, net, includes site closure costs, severance costs, and fees related to non-recurring legal matters. There were no such costs for the three and six months ended June 30, 2025.

Current wording

(5) For the three and nine months ended September 30, 2024, other significant (income) expenses, net, includes site closure costs, severance costs, and fees related to non-recurring legal matters. There were no such costs for the three and nine months ended September 30, 2025.

Previous wording

The following table presents a summary of our consolidated cash flows for operating, investing and financing activities for the six months ended June 30, 2025 and 2024 as well as balances of cash and cash equivalents and working capital:

Current wording

The following table presents a summary of our consolidated cash flows for operating, investing and financing activities for the nine months ended September 30, 2025 and 2024 as well as balances of cash and cash equivalents and working capital:

Previous wording

Cash used in operating activities during the six months ended June 30, 2025 was $5.0 million compared to $12.0 million in the same period in 2024. This $7.0 million decrease was primarily driven by our operating results (net loss adjusted for depreciation, amortization of intangibles, and other non-cash charges), which resulted in $2.8 million of lower cash used in operating activities year-over-year and a $9.8 million decrease in cash used resulting from net changes in operating assets and liabilities. The decrease in cash used related to our operating activities was primarily driven by an improvement in gross profit of $12.5 million. In addition, timing of cash receipts and cash payments in the ordinary course of business caused operating cash flow to fluctuate from period to period.

Current wording

Cash provided by operating activities during the nine months ended September 30, 2025 was $3.9 million compared to cash used in operating activities of $2.8 million in the same period in 2024. This $6.7 million increase was primarily driven by our operating results (net loss adjusted for depreciation, amortization of intangibles, and other non-cash charges), which resulted in a $5.4 million decrease in cash provided by operating activities year-over-year and a $12.1 million increase in cash provided resulting from net changes in operating assets and liabilities. The increase in cash provided related to our operating activities was primarily driven by an improvement in gross profit of $18.1 million. In addition, timing of cash receipts and cash payments in the ordinary course of business caused operating cash flow to fluctuate from period to period.

Previous wording

During the six months ended June 30, 2025, cash used in investing activities was $5.8 million compared to cash provided by investing activities $21.8 million in the same period in 2024. This change was primarily due to a $29.4 million decrease in proceeds from maturities of marketable securities, a decrease in purchases of property and equipment of $7.8 million, and $6.0 million for the acquisition of Pathline.

Current wording

During the nine months ended September 30, 2025, cash used in investing activities was $6.0 million compared to cash provided by investing activities of $18.3 million in the same period in 2024. This change was primarily due to a $27.7 million decrease in proceeds from maturities of marketable securities, a decrease in purchases of property and equipment of $10.3 million, and $6.5 million for the acquisition of Pathline.

Previous wording

During the six months ended June 30, 2025, cash used in financing activities was $201.5 million compared to cash provided by financing activities of $2.8 million in the same period in 2024. This change was primarily due to $201.3 million cash used for the repayment of the convertible senior notes.

Current wording

During the nine months ended September 30, 2025, cash used in financing activities was $200.7 million compared to cash provided by financing activities of $4.0 million in the same period in 2024. This change was primarily due to $201.3 million cash used for the repayment of the convertible senior notes.

Previous wording

We had $154.7 million in unrestricted cash and cash equivalents as of June 30, 2025 in addition to $9.0 million of marketable securities available to support current operational liquidity needs. We anticipate that the cash on hand, marketable securities and cash collections are sufficient to fund our near-term capital, and operating needs for at least the next 12 months. Operating needs include, but are not limited to, the planned costs to operate our business, including amounts required to fund working capital, capital expenditures, continued research and development efforts, and potential strategic acquisitions and investments.

Current wording

We had $164.1 million in unrestricted cash and cash equivalents as of September 30, 2025 available to support current operational liquidity needs. We anticipate that the cash on hand and cash collections are sufficient to fund our near-term capital, and operating needs for at least the next 12 months. Operating needs include, but are not limited to, the planned costs to operate our business, including amounts required to fund working capital, capital expenditures, continued research and development efforts, and potential strategic acquisitions and investments.

Previous wording

We forecast capital expenditures in order to execute on our business plan and maintain growth; however, the actual amount and timing of such capital expenditures will ultimately be determined by the volume of business. We currently anticipate that our capital expenditures for the year ending December 31, 2025 will be in the range of $30.0 million to $35.0 million. During the six months ended June 30, 2025, we purchased, with cash, approximately $10.8 million of capital equipment, software and leasehold improvements. We have funded and plan to continue funding these capital expenditures with cash.

Current wording

We forecast capital expenditures in order to execute on our business plan and maintain growth; however, the actual amount and timing of such capital expenditures will ultimately be determined by the volume of business. We currently anticipate that our capital expenditures for the year ending December 31, 2025 will be in the range of $30.0 million to $35.0 million. During the nine months ended September 30, 2025, we purchased, with cash, approximately $19.1 million of capital equipment, software and leasehold improvements. We have funded and plan to continue funding these capital expenditures with cash.