The stock gained 5.4% after reporting better-than-expected growth in the clinical business, driven by strong 23.8% sequential growth in Transplant Clinical revenue and expanding gross margins, which outweighed softness in the Logistics segment.
- Clinical revenue increased 15.1% sequentially on an organic basis, fueled by 23.8% growth in Transplant Clinical services.
- Clinical gross margins improved to 26.1% in Q2 from 25% in Q1, enhancing overall profitability.
- Logistics revenue faced headwinds due to significantly reduced flying volumes with one nonexclusive customer, impacting about 3% of segment revenue; volume reduction expected to impact full Q3 before recovery.
- Operating cash flow was $5.7 million with free cash flow of $2.9 million, marking the second consecutive quarter of positive cash generation.
- Closed three bolt-on acquisitions expanding clinical capabilities and geographic reach, strengthening future growth and margin profile while advancing capital deployment ahead of plan.
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