Veracyte Announces Third Quarter 2025 Financial Results

Grew total revenue to $131.9 million and testing revenue to $127.8 million, representing increases of 14% and 17% year-over-year, respectively

Conference call and webcast today at 4:30 p.m. ET

Veracyte, Inc. (NASDAQ:VCYT), a leading cancer diagnostics company, today announced financial results for the third quarter ended September 30, 2025.

"We delivered another outstanding quarter of testing revenue growth and adjusted EBITDA margin expansion, enabling us to raise both our revenue and profitability guidance," said Marc Stapley, Veracyte's chief executive officer. "We continue to advance our mission of transforming cancer care by generating high-quality evidence and clinical insights that reinforce the value of our tests and our market leadership. The strong momentum we have seen this year, combined with our upcoming TrueMRD and Prosigna LDT launches, gives us confidence in delivering durable, long-term growth from our broad portfolio of tests covering the care continuum in multiple indications."

Key Financial Highlights

For the three-month period ended September 30, 2025, as compared to the same period in 2024:

• Increased total revenue by 14% to $131.9 million and testing revenue by 17% to $127.8 million.
• Increased total volume by 18% to 45,888 tests and testing volume by 19% to 43,679 tests.
• Grew Decipher revenue by 26% to $82.2 million and Afirma revenue by 7% to $43.2 million.
• Grew Decipher volume by 26% to approximately 26,700 tests and Afirma volume by 13% to approximately 17,000 tests.
• Recorded GAAP net income of $19.1 million, or 15% of revenue, including $6.7 million of loss related to the deconsolidation of the SAS entity.
• Delivered adjusted EBITDA of $39.7 million, or 30% of revenue.
• Generated $44.8 million of cash from operations to end the quarter with $366.4 million of cash, cash equivalents, and short-term investments as of September 30, 2025.
• Raised full year revenue guidance to $506 million to $510 million, including raising testing revenue guidance to $484 million to $487 million or 16% year-over-year growth.

Key Business Highlights

• Presented at ASTRO 2025 nine Decipher-focused abstracts, including the first validation data from the BALANCE trial that demonstrated the PAM50 molecular signature predicts hormone therapy benefit in men with recurrent prostate cancer using Decipher GRID.
• Announced data published online in Cell from the STAMPEDE trial showing that the Decipher Prostate Genomic Classifier predicts chemotherapy benefit in patients with metastatic prostate cancer in an effort to help patients avoid unnecessary toxicity.
• Launched the Afirma v2 transcriptome to improve the efficiency of the Afirma testing business, while providing a platform for future product launches, such as Prosigna LDT.
• Supported the presentation of twelve abstracts covering clinical Afirma GSC data and research with Afirma GRID at the 2025 American Thyroid Association Annual Meeting.
• Completed NIGHTINGALE clinical utility trial enrollment for the Percepta Nasal Swab test.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading "Note Regarding Use of Non-GAAP Financial Measures."

Third Quarter 2025 Financial Results

Total revenue for the third quarter of 2025 was $131.9 million, an increase of 14% compared to $115.9 million reported in the third quarter of 2024. Testing revenue was $127.8 million, an increase of 17% compared to $109.5 million in the third quarter of 2024, driven by growth in our Decipher Prostate and Afirma tests. Product revenue was $3.3 million, an increase of 4% compared to $3.2 million in the third quarter of 2024. Biopharmaceutical and other revenue was $0.8 million, a decrease compared to $3.1 million in the third quarter of 2024 given the restructuring and liquidation proceedings of Veracyte SAS.

Total gross margin for the third quarter of 2025 was 69%, compared to 68% in the third quarter of 2024. Non-GAAP gross margin was 73%, compared to 71% in the third quarter of 2024.

Operating expenses were $68.3 million for the third quarter of 2025. Non-GAAP operating expenses grew 2% to $58.6 million compared to $57.6 million in the third quarter of 2024.

Net income for the third quarter of 2025 was $19.1 million, an improvement of 26% compared to the third quarter of 2024, including a $6.7 million loss from the deconsolidation of the Veracyte SAS entity. Diluted net earnings per common share was $0.24, an improvement of $0.05 compared to the third quarter of 2024. Non-GAAP diluted net earnings per common share was $0.51, an increase of $0.18 compared to the third quarter of 2024. Net cash provided by operating activities in the first nine months of 2025 was $83.7 million, an improvement of $33.2 million compared to the same period in 2024.

Adjusted EBITDA for the third quarter of 2025 was $39.7 million, an improvement of 45% compared to the third quarter of 2024, representing 30.1% of revenue compared to 23.6% of revenue in the same period of 2024.

2025 Financial Outlook

The company is raising full-year 2025 testing revenue guidance to $484 million to $487 million, or 16% year-over-year growth, from prior guidance of $477 million to $483 million. Adjusting for the impact of the paused Envisia test, the guidance implies 17% to 18% year-over-year testing revenue growth. The company is also raising full-year 2025 total revenue guidance to $506 million to $510 million, or 14% year-over-year growth, from prior guidance of $496 million to $504 million.

Additionally, the company is raising guidance for 2025 adjusted EBITDA as a percentage of revenue to over 25% from the 23.5% prior guidance.

The company is unable to provide a quantitative reconciliation of expected adjusted EBITDA as a percentage of revenue to the most directly comparable forward-looking GAAP measure without unreasonable effort, because of the inherent difficulty in accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliations that have not yet occurred, that are dependent on various factors, are out of the company's control, or that cannot be reasonably predicted. Such adjustments include, but are not limited to, acquisition-related expenses, and other adjustments. Any associated estimate of these items and their impact on GAAP performance for the guidance period could vary materially. For more information on the non-GAAP financial measures, please refer to the section titled "Note Regarding Use of Non-GAAP Financial Measures" at the end of this press release.

Conference Call and Webcast Details

Veracyte will host a conference call and webcast today at 4:30 p.m. Eastern Time to discuss the company's financial results and provide a general business update. The conference call will be webcast live from the company's website and will be available via the following link: https://edge.media-server.com/mmc/p/kcexjtb4. The webcast should be accessed 10 minutes prior to the conference call start time. A replay of the webcast will be available for one year following the conclusion of the live broadcast and will be accessible on the company's website at https://investor.veracyte.com/events-presentations.

The conference call dial-in can be accessed by registering via the following link: https://register-conf.media-server.com/register/BIdae4aec5409542e898e39e3944b8a094.

About Veracyte

Veracyte (NASDAQ:VCYT) is a global diagnostics company whose vision is to transform cancer care for patients all over the world. We empower clinicians with the high-value insights they need to guide and assure patients at pivotal moments in the race to diagnose and treat cancer. Our Veracyte Diagnostics Platform delivers high-performing cancer tests that are fueled by broad genomic and clinical data, deep bioinformatic and AI capabilities, and a powerful evidence-generation engine, which ultimately drives durable reimbursement and guideline inclusion for our tests, along with new insights to support continued innovation and pipeline development. For more information, please visit www.veracyte.com or follow us on LinkedIn or X (Twitter).

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements, including, but not limited to our statements related to our plans, objectives, and expectations (financial and otherwise), including with respect to our 2025 financial and operating results; and our intentions with respect to our tests and products, including upcoming product launches. Forward-looking statements can be identified by words such as: "appears," "anticipate," "intend," "plan," "expect," "believe," "should," "may," "could," "would," "will," "enable," "positioned," "offers," "designed," "ultimately," "strategic," "outlook," "guidance," and similar references to future periods. Actual results may differ materially from those projected or suggested in any forward-looking statements. These statements involve risks and uncertainties, which could cause actual results to differ materially from our predictions, and include, but are not limited to: our ability to launch, commercialize and receive reimbursement for our products; our ability to execute on our business strategies relating to the C2i Genomics acquisition, integration of the business and the realization of expected benefits and synergies; our ability to demonstrate the validity and utility of our genomic tests and biopharma and other offerings; our ability to continue executing on our business plan; our ability to continue to scale our global operations and enhance our internal control environment; the impact of the war in Ukraine and other regional conflicts on European economies; the impact of foreign currency fluctuations, volatile interest rates, inflation, the impact of legislation and policies enacted by the current U.S. administration; turmoil in the global banking and finance system; the ongoing conflict in the Middle East; and the performance and utility of our tests in the clinical environment. Additional factors that may impact these forward-looking statements can be found under the caption "Risk Factors" in our Annual Report on Form 10-K filed on February 28, 2025, as well as in other documents that we may file from time to time with the Securities and Exchange Commission. Copies of these documents, when available, may be found in the Investors section of our website at investor.veracyte.com. These forward-looking statements speak only as of the date hereof and, except as required by law, we specifically disclaim any obligation to update these forward-looking statements or reasons why actual results might differ, whether as a result of new information, future events or otherwise.

Note Regarding Use of Non-GAAP Financial Measures

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release and the accompanying tables contain, and reference certain non‐GAAP results including non-GAAP gross margin, non-GAAP operating expenses, adjusted EBITDA, adjusted EBITDA as a percentage of revenue (also referred to as adjusted EBITDA margin), non-GAAP net income, and non-GAAP earnings per share (EPS) and non-GAAP weighted average shares outstanding. These non-GAAP financial measures are not meant to be considered superior to or a substitute for financial measures calculated in accordance with GAAP, and investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool.

We use non-GAAP financial measures to internally evaluate and analyze financial results. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies, many of which present similar non-GAAP financial measures. However, the non-GAAP financial measures we present may be different from those used by other companies, including similarly titled measures.

We compute these non-GAAP measures by adjusting the applicable GAAP measure to remove the impact of certain recurring and non-recurring charges and gains and to adjust for the impact of income tax items related to such adjustments to our GAAP financial statements. In particular, we exclude amortization of acquired intangible assets, acquisition-related expenses relating to our acquisitions of Decipher Biosciences, HalioDx and C2i Genomics, impairment charges associated with the nCounter license and other biopharmaceutical services related to HalioDx intangible assets, all stock-based compensation and certain costs related to restructuring from all of our non-GAAP financial measures as well as depreciation and income tax items from our adjusted EBITDA and adjusted EBITDA as a percentage of revenue. Beginning in the second quarter of 2024, we changed our non-GAAP policy to exclude all stock-based compensation to align with our peers and we have also excluded all stock-based compensation from our prior period non-GAAP financial measures. Management has excluded the effects of these items in non-GAAP financial measures to help investors gain a better understanding of the core operating results and future prospects of the company, consistent with how management measures and forecasts the company's performance, especially when comparing such results to previous periods or forecasts. The company encourages investors to carefully consider its results under GAAP, together with its supplemental non‐GAAP information and the reconciliation between these presentations. See "Reconciliation of U.S. GAAP to Non-GAAP Financial Measures" for a reconciliation of each non-GAAP measure presented to the comparable GAAP financial measure.

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