[Second Quarter 2025 Financial & Operational Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20%26%20Operational%20Highlights) Exact Sciences reported record Q2 2025 revenue of $811 million, a 16% year-over-year increase, driven by strong growth in Screening and Precision Oncology, significantly reducing net loss to $1 million and boosting adjusted EBITDA by 26% to $138 million, alongside key operational advancements Q2 2025 Financial Performance vs. Q2 2024 | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (Millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$811 million** | **$699 million** | **+$112 million** | **+16%** | | Screening Revenue | $628 million | - | - | +18% | | Precision Oncology Revenue | $183 million | - | - | +9% | | Net Loss | ($1 million) | ($16 million) | +$15 million | -94% | | Net Loss per Share | ($0.01) | ($0.09) | +$0.08 | -89% | | Adjusted EBITDA | $138 million | $110 million | +$28 million | +26% | | Operating Cash Flow | $89 million | - | - | - | | Free Cash Flow | $47 million | - | - | - | - The company raised its full-year 2025 revenue guidance midpoint by **$55 million** and its adjusted EBITDA guidance midpoint by **$25 million**[4](index=4&type=chunk) - Strategic initiatives in the quarter included an exclusive license agreement with Freenome for blood-based colorectal cancer screening tests and gaining Medicare coverage for the Oncodetect™ molecular residual disease test[4](index=4&type=chunk) - A multi-year productivity plan was announced, targeting **$150 million** in annual savings by 2026[4](index=4&type=chunk) [Platform and Pipeline Advancements](index=2&type=section&id=Platform%20and%20Pipeline%20Advancements) The company advanced its product pipeline with the April 2025 launch of the Oncodetect™ test, which gained Medicare coverage for colorectal cancer patients, and plans to launch the Cancerguard™ multi-cancer screening test in September 2025, alongside an exclusive licensing agreement with Freenome for blood-based colorectal cancer screening - Launched the Oncodetect™ test in April 2025 for molecular residual disease (MRD) and recurrence monitoring, which recently received Medicare coverage for stage II, III, and resectable stage IV colorectal cancer (CRC) patients[6](index=6&type=chunk) - Plans to launch the Cancerguard™ multi-cancer screening test as a laboratory-developed test in September 2025[7](index=7&type=chunk) - In August 2025, acquired exclusive rights to Freenome's current and future blood-based colorectal cancer screening tests and underlying technology[7](index=7&type=chunk) [2025 Outlook](index=2&type=section&id=2025%20Outlook) Exact Sciences raised its full-year 2025 guidance, now expecting total revenue between $3.13 billion and $3.17 billion, representing 14% year-over-year growth at the midpoint, and adjusted EBITDA between $455 million and $475 million, a 44% increase at the midpoint Updated Full-Year 2025 Guidance | Metric | Prior Guidance (Billions/Millions) | August 6 Update (Billions/Millions) | Change at Midpoint (Millions) | Y/Y Growth Rate | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$3.070 - $3.120 billion** | **$3.130 - $3.170 billion** | **+$55.0 million** | **14%** | | Screening Revenue | $2.390 - $2.425 billion | $2.440 - $2.470 billion | +$47.5 million | 17% | | Precision Oncology Revenue | $680 - $695 million | $690 - $700 million | +$7.5 million | 6% | | **Adjusted EBITDA** | **$425 - $455 million** | **$455 - $475 million** | **+$25.0 million** | **44%** | [Product Portfolio Overview](index=3&type=section&id=Product%20Portfolio%20Overview) The company's portfolio encompasses leading non-invasive screening tests like Cologuard® and Cologuard Plus™, advanced diagnostic tests such as Oncotype DX® and Oncodetect™ for therapy selection and recurrence monitoring, comprehensive genetic testing services via PreventionGenetics, and the upcoming Cancerguard™ multi-cancer screening test in its pipeline - **Cologuard® and Cologuard Plus™:** Non-invasive, stool-based colorectal cancer (CRC) screening tests for adults 45+, with the new Cologuard Plus test, launched in Q1 2025, expected to reduce false positives by nearly **40%**[16](index=16&type=chunk)[18](index=18&type=chunk) - **Oncodetect™:** A tumor-informed molecular residual disease (MRD) test that detects circulating tumor DNA (ctDNA) in the blood to guide therapy decisions and monitor for cancer recurrence[19](index=19&type=chunk) - **Cancerguard™:** A multi-cancer early detection test in development, designed to detect multiple cancers from a single blood draw with high specificity[20](index=20&type=chunk)[21](index=21&type=chunk) - **Precision Oncology Portfolio:** Includes the Oncotype DX Breast Recurrence Score® test, a standard of care for predicting chemotherapy benefit, and the OncoExTra® test for comprehensive tumor profiling to aid therapy selection in advanced cancers[22](index=22&type=chunk) - **PreventionGenetics:** An acquired CLIA-accredited laboratory providing clinical genetic testing for nearly all clinically relevant genes, including whole genome and exome sequencing[23](index=23&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) The unaudited financial statements for the three and six months ended June 30, 2025, detail a significant reduction in net loss, a stable asset base with total equity of $2.47 billion, and positive operating and free cash flow for the quarter [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, revenue increased to $811.1 million, gross profit grew to $562.5 million, and the company significantly narrowed its loss from operations to $2.1 million, resulting in a net loss of just $1.2 million Q2 2025 vs Q2 2024 Statement of Operations (in thousands) | Line Item | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | | :--- | :--- | :--- | | Revenue | $811,085 | $699,264 | | Gross Profit | $562,453 | $488,316 | | Total Operating Expenses | $564,601 | $518,373 | | Loss from Operations | $(2,148) | $(26,257) | | Net Loss | $(1,185) | $(15,808) | | Net Loss per Share | $(0.01) | $(0.09) | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, the company held $858.4 million in cash and marketable securities, with total assets at $5.80 billion, total liabilities at $3.33 billion, and total stockholders' equity increasing to $2.47 billion Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (Thousands) | December 31, 2024 (Thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $657,099 | $600,889 | | Marketable securities | $201,336 | $437,137 | | Total Assets | $5,797,365 | $5,928,139 | | Total Liabilities | $3,327,951 | $3,525,890 | | Total Stockholders' Equity | $2,469,414 | $2,402,249 | [Cash Flow Statement](index=15&type=section&id=Cash%20Flow%20Statement) For Q2 2025, net cash provided by operating activities was $89.0 million, resulting in positive free cash flow of $46.7 million after capital expenditures, a decrease from $71.2 million in the prior year period Cash Flow Summary (in thousands) | Metric | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $89,017 | $107,065 | | Purchases of property, plant and equipment | $(42,342) | $(35,866) | | **Free Cash Flow** | **$46,675** | **$71,199** | [Non-GAAP Financial Measures & Reconciliations](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) The company provides non-GAAP measures like Core Revenue and Adjusted EBITDA for supplemental performance insights, with Q2 2025 core revenue growth at 16% and Adjusted EBITDA increasing 26% to $138.2 million, alongside detailed reconciliations for various adjustments [Core Revenue Reconciliation](index=8&type=section&id=Core%20Revenue%20Reconciliation) The core revenue reconciliation, adjusting for divestitures and foreign currency impacts, shows Q2 2025 total core revenue of $807.8 million, representing 16% year-over-year growth consistent with reported GAAP revenue Q2 2025 Core Revenue Reconciliation (in thousands) | Segment | GAAP Revenue (Thousands) | Non-GAAP 2024 Base (Thousands) | Foreign Currency Impact (Thousands) | Core Revenue (Thousands) | Core % Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Screening | $628,481 | $531,606 | $0 | $628,481 | 18% | | Precision Oncology | $182,604 | $165,111 | $(3,278) | $179,326 | 9% | | **Total** | **$811,085** | **$696,717** | **$(3,278)** | **$807,807** | **16%** | [Adjusted EBITDA Reconciliation](index=9&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA for Q2 2025 was $138.2 million, an increase from $110.1 million in Q2 2024, with the reconciliation from net loss of $1.2 million including major adjustments for stock-based compensation, depreciation, amortization, and restructuring costs Q2 2025 Adjusted EBITDA Reconciliation (in thousands) | Line Item | Amount (Thousands) | | :--- | :--- | | Net loss | $(1,185) | | Interest, Tax, Depreciation & Amortization | $65,118 | | Stock-based compensation | $64,939 | | Acquisition and integration costs | $4,910 | | Restructuring and business transformation | $15,240 | | Other adjustments | $(11,926) | | **Adjusted EBITDA** | **$138,224** | [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section contains standard safe harbor language, cautioning investors that forward-looking statements regarding future operating results, product development, and strategic initiatives are subject to material risks and uncertainties, directing readers to SEC filings for detailed risk discussions - The report contains forward-looking statements about future operating results, product launches (new or improved), commercialization efforts, and benefits from acquisitions and licensing deals[25](index=25&type=chunk) - Investors are cautioned not to place undue reliance on these statements as they are subject to known and unknown risks, including market acceptance of products, competition, reimbursement rates, and regulatory changes[25](index=25&type=chunk)[26](index=26&type=chunk) - A comprehensive list of risks is available in the Risk Factors sections of the company's Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q[27](index=27&type=chunk)

Core Viewpoint - Keros Therapeutics, Inc. (KROS) is currently more attractive to value investors compared to Exact Sciences (EXAS) based on various valuation metrics and analyst outlooks [1][3]. Valuation Metrics - KROS has a forward P/E ratio of 70.11, significantly lower than EXAS's forward P/E of 303.06 [5]. - The PEG ratio for KROS is 2.62, while EXAS has a much higher PEG ratio of 10.35, indicating KROS may be undervalued relative to its expected earnings growth [5]. - KROS's P/B ratio stands at 0.81, compared to EXAS's P/B of 3.82, further suggesting KROS is more favorably valued [6]. Analyst Ratings - KROS holds a Zacks Rank of 1 (Strong Buy), while EXAS has a Zacks Rank of 2 (Buy), indicating a stronger earnings estimate revision activity for KROS [3][7]. - The Value grade for KROS is B, whereas EXAS has a Value grade of C, reflecting KROS's superior valuation metrics [6].

Industry Overview - The cancer diagnostics market is experiencing steady growth due to increasing demand for early cancer detection, technological advancements, and the importance of personalized medicine [1] - Companies like Hologic and Exact Sciences are gaining investor attention for their strong positioning in the cancer diagnostics space [1] Hologic Analysis - Hologic's growth is driven by a combination of organic and inorganic innovation, particularly in its Diagnostics division led by the Molecular Diagnostics unit [3] - The company holds nearly 80% of the U.S. market share in Breast Health with its 3D Genius mammography machine [4] - Hologic's Surgical division is expanding internationally, supported by market development efforts and acquisitions [5] - The company reported a 30% operating margin in Q2 of fiscal 2025, despite challenges such as tariff-related inventory cost increases [7] - Hologic's revenue outlook for China has been trimmed to reduce geopolitical risk exposure [6] Exact Sciences Analysis - Exact Sciences is undergoing a transformative phase in 2025, with its Cologuard CRC screening test gaining momentum [8] - The company is advancing its innovation pipeline, including the launch of Cologuard Plus and Oncodetect, which have secured Medicare coverage [10] - Exact Sciences reported a 61% year-over-year increase in adjusted EBITDA, supported by productivity and cost-cutting initiatives [11] - The company is focused on boosting free cash flow, although high debt levels remain a concern [12] Financial Projections - Hologic's fiscal 2025 EPS is estimated to improve by 2.7% to $4.19, with estimates trending downward in the last 90 days [13] - Exact Sciences has a consensus EPS estimate of 16 cents for 2025, reflecting a 169.6% improvement, with bullish trends in analyst estimates [14] Price Performance & Valuation - Over the past year, Hologic shares have decreased by 15.9%, while Exact Sciences shares have increased by 7.4% [15] - Hologic's forward price-to-sales ratio is 3.47X, lower than the industry average of 4.34X, while Exact Sciences' ratio is 2.76X [16] Conclusion - Hologic's diversified business model and strong balance sheet support its long-term growth outlook, despite potential economic pressures [18] - Exact Sciences is benefiting from Cologuard adoption and a strong innovation pipeline, making it a more appealing investment option at present [19]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to complement the Zacks Rank, aiding investors in selecting stocks likely to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - Evaluates a company's financial health and future potential through projected earnings and sales growth [4] Momentum Score - Targets stocks with upward or downward price trends, utilizing recent price changes and earnings estimate shifts [5] VGM Score - Combines the three Style Scores to identify stocks with the best overall value, growth, and momentum [6] Zacks Rank Integration - The Zacks Rank leverages earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +23.62% since 1988 [8] Stock Selection Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks but high Style Scores may still present risks due to declining earnings forecasts [11] Company Spotlight: Exact Sciences (EXAS) - Exact Sciences is a molecular diagnostics firm specializing in cancer detection and prevention, focusing on colorectal cancer screening and multi-cancer tests [12] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong potential [12] - Forecasts suggest a remarkable year-over-year earnings growth of 169.6% for the current fiscal year, with a recent upward revision in earnings estimates [13]

Core Viewpoint - Exact Sciences (EXAS) shows potential for significant upside, with a mean price target of $68.55 indicating a 26.2% increase from the current price of $54.3 [1] Price Targets and Analyst Consensus - The average price target consists of 22 estimates ranging from $54.00 to $90.00, with a standard deviation of $7.85, indicating variability in analyst predictions [2] - The lowest estimate suggests a minor decline of 0.6%, while the highest indicates a potential upside of 65.8% [2] - A low standard deviation signifies strong agreement among analysts regarding the stock's price movement direction [9] Earnings Estimates and Market Sentiment - Analysts have shown increasing optimism about EXAS's earnings prospects, as evidenced by a strong consensus in revising EPS estimates higher [11] - Over the past 30 days, one estimate has increased, leading to a Zacks Consensus Estimate rise of 255.6% [12] - EXAS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors [13] Caution on Price Targets - Solely relying on price targets for investment decisions may not be prudent, as analysts' ability to set accurate targets has been questioned [3][7] - Analysts often set optimistic price targets due to business incentives, which can lead to inflated estimates [8] - While price targets should not be ignored, they should be approached with skepticism and not be the sole basis for investment decisions [10]

Core Insights - Investors in the Medical - Biomedical and Genetics sector should consider Qiagen (QGEN) and Exact Sciences (EXAS) for potential value opportunities [1] Valuation Metrics - Both QGEN and EXAS currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3] - QGEN has a forward P/E ratio of 20.46, significantly lower than EXAS's forward P/E of 345.69, suggesting QGEN may be undervalued [5] - The PEG ratio for QGEN is 2.44, while EXAS has a much higher PEG ratio of 11.81, indicating QGEN's expected earnings growth is more favorable [5] - QGEN's P/B ratio is 3.13 compared to EXAS's P/B of 4.35, further supporting QGEN as the more attractive value option [6] - Based on various valuation metrics, QGEN holds a Value grade of B, while EXAS has a Value grade of C, reinforcing QGEN's position as the superior value stock [6]

Core Viewpoint - Exact Sciences (EXAS) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook for the company's earnings potential and stock price movement [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is influenced by changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to institutional investors adjusting their valuations, resulting in buying or selling actions that affect stock prices [4]. Company Performance and Outlook - Exact Sciences is projected to earn $0.16 per share for the fiscal year ending December 2025, with no year-over-year change expected [8]. - Over the past three months, the Zacks Consensus Estimate for Exact Sciences has increased by 127%, reflecting a positive trend in earnings estimates [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating [9][10]. - The upgrade of Exact Sciences to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Financial Performance & Growth - Exact Sciences reported total revenue of $2.76 billion in 2024, a 10% year-over-year increase[7] - Adjusted EBITDA for 2024 was $323 million, up 48% year-over-year[7] - The company anticipates total revenue between $3.07 billion and $3.12 billion in 2025, representing a 12% increase at the midpoint[47] - Screening revenue in 2024 was $2.104 billion and is projected to be between $2.39 billion and $2.425 billion in 2025, a 14% increase at the midpoint[20, 47] - Precision Oncology revenue in 2024 was $655 million and is projected to be between $680 million and $695 million in 2025, a 5% increase at the midpoint[29, 47] - The company is targeting approximately 15% compounded annual revenue growth from 2022-2027 and over 20% adjusted EBITDA margin in 2027[50, 52] Product Development & Market Opportunity - Exact Sciences is launching three new advanced cancer tests in 2025: Oncodetect for molecular residual disease ($18 billion TAM), Cancerguard for multi-cancer screening ($25 billion TAM), and Cologuard Plus for colon cancer screening ($15 billion TAM)[4, 5] - Cologuard has saved the U S healthcare system $22 billion[16] - Cancerguard could reduce cancer mortality by 17%[41]

Core Insights - Investors are evaluating Qiagen (QGEN) and Exact Sciences (EXAS) for potential value investment opportunities [1] Group 1: Zacks Rank and Earnings Outlook - Qiagen has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend compared to Exact Sciences, which has a Zacks Rank of 3 (Hold) [3] - The improving earnings outlook for QGEN positions it as a more attractive option for investors [7] Group 2: Valuation Metrics - QGEN has a forward P/E ratio of 19.95, significantly lower than EXAS's forward P/E of 1,167.56, suggesting QGEN may be undervalued [5] - The PEG ratio for QGEN is 2.38, while EXAS has a PEG ratio of 39.89, indicating QGEN's expected earnings growth is more reasonably priced [5] - QGEN's P/B ratio is 3.05, compared to EXAS's P/B of 4.13, further supporting QGEN's valuation attractiveness [6] - Based on these metrics, QGEN has earned a Value grade of B, while EXAS has a Value grade of D [6]

Financial Data and Key Metrics Changes - The shareholders ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025 [18] - The proposal to approve the compensation paid to the company's named executive officers has been approved [19] - The Exact Sciences Corporation 2025 Omnibus long-term incentive plan has been approved [19] - The amendment to the Exact Sciences Corporation 2010 employee stock purchase plan has been approved [19] Business Line Data and Key Metrics Changes - No specific data on business line performance or key metrics was provided in the meeting [0] Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting [0] Company Strategy and Development Direction and Industry Competition - The board of directors recommended a vote against the shareholder proposal concerning the adoption of a director election resignation governance policy, indicating a preference for maintaining current governance structures [15][19] - The proposed resignation policy aimed to strengthen shareholder voting rights, which could influence future governance discussions [10][12] Management's Comments on Operating Environment and Future Outlook - No specific comments from management regarding the operating environment or future outlook were provided during the meeting [0] Other Important Information - The meeting was held virtually to increase access and participation for shareholders [2] - A quorum was declared present for the transaction of business [3] Q&A Session Summary - There were no questions submitted during the Q&A session [16][20]