Veracyte Announces Second Quarter 2025 Financial Results

Original from: Veracyte

Veracyte, Inc. (Nasdaq: VCYT), a leading cancer diagnostics company, today announced financial results for the second quarter ended June 30, 2025.

“Testing growth continues to exceed our expectations, driven by Decipher which achieved its thirteenth consecutive quarter of over 25% year-over-year volume growth,” said Marc Stapley, Veracyte’s chief executive officer. “This strong result, combined with Afirma volume meeting our expectations and the resolution of the French subsidiary proceedings, has positioned us for incremental investment in our strategic portfolio in the second half of 2025 and beyond, strengthening our confidence in delivering sustained long-term revenue growth. Backed by our differentiated platform and a growing body of clinical evidence, we are deeply committed to improving outcomes for patients around the world.”

Key Financial Highlights

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

· Increased total revenue by 14% to $130.2 million and testing revenue by 14% to $122.3 million.

· Increased total volume by 15% to 44,966 tests and testing volume by 18% to 42,441 tests.

· Grew Decipher revenue by 24% to $76.3 million and Afirma revenue by 5% to $43.4 million.

· Grew Decipher volume by 28% to approximately 25,500 tests and Afirma volume by 8% to approximately 16,950 tests.

· Recorded GAAP net loss of $1.0 million, or (0.8%) of revenue, including $20.5 million of one-time impairment charges, and adjusted EBITDA of $35.8 million, or 27.5% of revenue.

· Generated $33.6 million of cash from operations to end the quarter with $320.7 million of cash, cash equivalents, and short-term investments as of June 30, 2025.

· Provided full year revenue guidance of $496 million to $504 million; raised testing revenue guidance to $477 million to $483 million or 14% to 15% year-over-year growth.

Key Business Highlights

· Kicked off our high risk and metastatic growth strategy with the full launch of Decipher for use in the metastatic population in June, engaging physicians in understanding the utility of Decipher in aiding decision making on treatment intensification.

· Demonstrated utility of Decipher Prostate and Decipher Bladder Genomic Classifiers as well as the Decipher GRID research capabilities through 29 abstracts presented and nine new publications.

· Supported the presentation of seven different abstracts covering clinical Afirma GSC data and research with Afirma GRID at scientific and medical conferences, and saw the publication of the first study detailing the development and validation of tumor behavior classifiers offered on the Afirma GRID research report, in Frontiers in Endocrinology.

· Added to the clinical data demonstrating that Prosigna accurately classifies patients’ risk of recurrence with the presentation of 10-year clinical outcomes data from the OPTIMA Prelim study at ESMO Breast Cancer Annual Congress.

· Completed the French entity restructuring process as it relates to the sale of the Veracyte SAS product manufacturing business and deconsolidation of the Veracyte SAS operations (see below).

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."

Second Quarter 2025 Financial Results

Total revenue for the second quarter of 2025 was $130.2 million, an increase of 14% compared to $114.4 millionreported in the second quarter of 2024. Testing revenue was $122.3 million, an increase of 14% compared to $107.0 million in the second quarter of 2024, driven by our Decipher Prostate and Afirma tests. Product revenue was $3.6 million, a decrease of 8% compared to $3.9 million in the second quarter of 2024. Biopharmaceutical and other revenue was $4.3 million, an increase of 21% compared to $3.6 million in the second quarter of 2024.

Total gross margin for the second quarter of 2025 was 69%, compared to 68% in the second quarter of 2024. Non-GAAP gross margin was 72%, compared to 71% in the second quarter of 2024.

Operating expenses were $95.0 million for the second quarter of 2025 including $20.5 million of impairment given the partial sale and subsequent liquidation proceedings of our French subsidiary. Non-GAAP operating expenses grew 2% to $60.3 million compared to $59.0 million in the second quarter of 2024.

Net loss for the second quarter of 2025 was $1.0 million, a decrease of 117% compared to the second quarter of 2024. Diluted net loss per common share was $0.01, a decrease of $0.08 compared to the second quarter of 2024. Non-GAAP diluted net earnings per common share was $0.44, an increase of $0.14 compared to the second quarter of 2024. Net cash provided by operating activities in the first six months of 2025 was $39.0 million, an improvement of $18.4 million compared to the same period in 2024.

Adjusted EBITDA for the second quarter of 2025 was $35.8 million, an improvement of 49% compared to the second quarter of 2024, representing 27.5% of revenue compared to 21.0% of revenue in the same period of 2024.

Update on Marseille Operations

As previously communicated, on May 7, 2025, the Commercial Court of Marseille opened restructuring proceedings related to Veracyte SAS, Veracyte Inc.’s French subsidiary. These proceedings allowed the court-appointed representative to evaluate opportunities for sale of all or part of the Veracyte SAS business, including Veracyte’s immune-oncology biopharma business, contract IVD development and manufacturing and support for Veracyte’s IVD product development and manufacturing.

On July 16, 2025, the Marseille Commercial Court published a decision approving the sale of the manufacturing operations of Veracyte SAS to Helio Diagnostics SAS. The sale closed on August 1, 2025. Following the sale, the remaining Veracyte SAS assets will continue to be managed by the court-appointed administration until formal liquidation proceedings are opened, at which point the proceeding will be managed solely by a court-appointed judicial liquidator. Given the sale and subsequent liquidation proceedings we took a $20.5 million impairment charge on related assets in Q2 and have deconsolidated the entity as of August 1, 2025, the effective date of the sale.

Management will provide further details on the potential impact to Veracyte’s 2025 financial outlook during the conference call this afternoon.

2025 Financial Outlook

The company is raising full-year 2025 testing revenue guidance to $477 million to $483 million, or 14% to 15% year-over-year growth, from prior guidance of $470 million to $480 million. Adjusting for the impact of the paused Envisia test, the guidance implies 16% to 17% year-over-year testing revenue growth. Given the resolution of the French subsidiary proceedings, the company is initiating full-year 2025 total revenue guidance of $496 million to $504 million, or 11% to 13% year-over-year growth.

Additionally, the company is raising guidance for adjusted EBITDA as a percentage of revenue in 2025 to 23.5% from 22.5%.

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.

Source: Veracyte Announces Second Quarter 2025 Financial Results