Lucid Diagnostics (LUCD) Q2 FY26 earnings call: guidance and Q&A

How did the VA contribute to test volume, and what are the plans for accelerating SG&A given the potential timing of LCDs?

The VA has not yet contributed meaningfully to test volume, as it's in the contracting phase for the new fiscal year. SG&A will increase with headcount and programs post-reimbursement, but the high 90% margin of the $2,000 test will mitigate the cash burn rate.

“Yes, we are going to increase our OPEX, but it won't have the direct correlation to the burn that otherwise it might have.”

asked by Alex Cicchese · answered by Dennis McGrath

Can you elaborate on the Concert LBM policy and its potential to bring on additional LBMs?

Concert's policy is a significant first step, validating EsoGuard's medical necessity and clinical evidence. It covers nearly 10 million lives across client plans, concentrated regionally. This precedent will positively impact ongoing discussions with other LBMs.

“Having Concert on board will certainly help us, and it's been positive, has had a positive impact on our ongoing discussions with other LBMs.”

asked by Alex Cicchese · answered by Lishan Aklog

Will personnel changes at Palmetto GBA impact the Medicare LCD wait? How many plans look to Concert, and what are the total covered lives if all converted?

No expected impact from personnel changes; the company is confident in the late stages of the LCD process. Concert has numerous client plans, leading to just under 10 million covered lives in total. More client plans are expected to adopt the policy.

“Under Concert, there are numerous plans under Concert leading to just under 10 million covered lives.”

asked by Mark Massaro · answered by Lishan Aklog

Is the company still targeting 2,500-3,000 tests per quarter? What is the update on firefighter activity and primary care clinics?

Yes, the company is still targeting that test volume range. The commercial strategy is shifting to 'MVAC' (Medicare, VA, and contracted revenue) with an emphasis on getting paid. Firefighter events are now more focused on contracted plans, and progress is seen in primary care and GI engagements.

“Our comp plans are now more heavily weighted towards what the team's calling MVAC, Medicare, VA, and contracted revenue. The contracted revenue would include firefighters and self-insured employers. It's an emphasis on getting paid.”

asked by Mark Massaro · answered by Dennis McGrath

Has the number of denials of coverage started to trend down? What else is being done to prevent initial denials?

Denials are 'choppy' with no clear trend. The company is aggressive in providing medical information and meticulous with requisition forms. However, fundamental change requires securing coverage policies, not just appeals, to reduce patient responsibility and improve collection rates.

“As far as the denials, there's really no trends that we can make headway out of it.”

asked by Anthony Vendetti · answered by Dennis McGrath

Any update on concierge medicine? Have most COGS savings been unlocked, or are there future automation opportunities?

Concierge medicine was explored but found to have high hurdles and insufficient payoff for resources, so it's no longer a major emphasis. Current COGS are efficient, with EsoCheck device at ~$60 and lab processing at ~$125. Future automation opportunities exist as volume grows to further reduce costs.

“EsoCheck device costs around $60, and to process a test through the lab is about $125 or so.”

asked by Kyle Mikson · answered by Dennis McGrath