Core Insights - Veracyte has experienced significant growth in 2025, with Decipher growing by 32% year-to-date and Afirma by 9% year-to-date, indicating strong performance across its core business segments [2]. Business Performance - The company has achieved numerous accomplishments in 2025, feeling positive about its current position compared to the beginning of the year [2]. - The growth in the core business is described as encouraging and impressive, reflecting the company's successful strategies and market positioning [2].

Veracyte (NasdaqGM:VCYT) FY Conference September 09, 2025 04:50 PM ET Company ParticipantsMarc Stapley - CEO & DirectorRebecca Chambers - CFOConference Call ParticipantsKallum Titchmarsh - VP & Equity AnalystKallum TitchmarshI think we can get started. Callum Tichmarsh here from the Life Sciences team at Morgan Stanley. Really pleased to be joined by the team from Veracyte. We have Marc Stapley, CEO, and Rebecca Chambers, CFO. Before we get started, the good stuff, the disclosures. Please see the Morgan Sta ...

Group 1 - The article discusses the author's previous positive assessment of Veracyte (NASDAQ: VCYT) nearly five years ago, highlighting the company's ability to navigate the challenges posed by the pandemic [1] - The author expresses a long position in VCYT shares, indicating a personal investment interest in the company [2] - The article emphasizes the author's focus on innovative companies in the biotech sector that are developing breakthrough therapies and pharmaceuticals [1]

Group 1 - The stock of Veracyte, Inc. (VCYT) is experiencing significant attention due to high implied volatility in the options market, particularly the Sep 19, 2025 $45.00 Put option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in Veracyte's stock price, potentially due to an upcoming event [2] - Currently, Veracyte holds a Zacks Rank 3 (Hold) in the Medical - Instruments industry, which is in the bottom 36% of the Zacks Industry Rank, with recent earnings estimates being revised downward [3] Group 2 - The high implied volatility surrounding Veracyte may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capitalize on decay [4]

Core Insights - Veracyte, Inc. (VCYT) reported second-quarter 2025 adjusted earnings of 44 cents per share, a significant increase of 46.7% from 30 cents in the same period last year, exceeding the Zacks Consensus Estimate by 41.9% [1][7] - The company's revenues rose 13.8% year over year to $130.2 million, surpassing the Zacks Consensus Estimate by 7.1% [2][7] Revenue Breakdown - Testing revenues reached $122.3 million, reflecting a 14% year-over-year increase, driven by Decipher and Afirma revenue growth of 24% and 5%, respectively [3] - Product revenues decreased by 8% year over year to $3.6 million [3] - Biopharmaceutical and other revenues increased by 21% to $4.3 million compared to the prior-year quarter [3] Margins and Expenses - Total cost of revenues was $37.7 million, up 12.3% year over year [4] - Gross profit increased by 14.4% to $92.4 million, with gross margin expanding by 38 basis points to 71% [4] - Selling and marketing expenses rose 4.5% to $25.3 million, while general and administrative expenses increased by 1.8% to $32.3 million [4] - R&D expenses totaled $16.3 million, down 1.2% year over year [4] - Adjusted operating margin improved by 689 basis points to 14.2% [4] Cash and Capital Structure - Veracyte ended Q2 2025 with cash and cash equivalents of $219.5 million, up from $186.1 million at the end of Q1 [5] - Cumulative net cash from operating activities was $39 million, compared to $20.6 million a year ago [5] Guidance - The company raised its full-year 2025 testing revenue guidance to a range of $477-$483 million, indicating a year-over-year growth of 14% to 15% [6] - Total revenue guidance for 2025 was also increased to $496-$504 million, implying 11% to 13% year-over-year growth [8] - Adjusted EBITDA as a percentage of revenues is anticipated to be approximately 23.5%, up from the previous guidance of 22.5% [8] Notable Developments - The launch of Decipher Prostate Metastatic Genomic Classifier for patients with advanced prostate cancer was a significant development in Q2 [10]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-36156 VERACYTE, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I. ...

Veracyte specializes in advanced genomic testing for cancer diagnosis and treatment guidance. Its main business is providing diagnostic tests that help clinicians more accurately diagnose and manage diseases such as thyroid, prostate, lung, and breast cancer. The company's revenue comes primarily from its testing business, where physicians order genomic classifiers that aid treatment decisions. Veracyte (VCYT -4.16%), a leader in advanced cancer diagnostics, reported results for Q2 2025 on August 6, 2025. T ...

Company Performance - Veracyte reported quarterly earnings of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.31 per share, and up from $0.30 per share a year ago, representing an earnings surprise of +41.94% [1] - The company achieved revenues of $130.16 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 7.06%, compared to $114.43 million in the same quarter last year [2] - Over the last four quarters, Veracyte has consistently surpassed consensus EPS and revenue estimates [2] Stock Performance - Veracyte shares have declined approximately 36.8% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The current Zacks Rank for Veracyte is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.33 on revenues of $125.73 million, and for the current fiscal year, it is $1.32 on revenues of $493.72 million [7] - The outlook for the Medical - Instruments industry, where Veracyte operates, is currently in the bottom 41% of over 250 Zacks industries, which may impact the stock's performance [8]

Financial Data and Key Metrics Changes - The company reported total revenue of $130 million for Q2 2025, reflecting a 14% year-over-year growth [8][31] - Testing revenue also grew by 14% year-over-year, amounting to $122.3 million, driven by significant growth in Decipher and Afirma [31] - Adjusted EBITDA margin reached 27.5%, significantly exceeding expectations [9][35] - Non-GAAP gross margin was 71.5%, up approximately 30 basis points compared to the prior year [33] Business Line Data and Key Metrics Changes - Decipher tests delivered approximately 25,500 tests, achieving a year-over-year volume growth of 28% [10][11] - Afirma volume growth increased by 8% year-over-year, resulting in approximately 16,950 tests [17] - Prosigna is set to launch as an LDT in the U.S. breast cancer market in mid-2026, targeting a large patient population [21][22] Market Data and Key Metrics Changes - The company believes it holds a 65% market share in the prostate testing market, with Decipher positioned as the leading brand among clinicians [16] - The NCCN high-risk patient population is estimated to be approximately 25% of the incidence population, indicating a significant growth opportunity [13] Company Strategy and Development Direction - The company aims to transform cancer care globally through strategic initiatives focused on short-term, mid-term, and long-term growth drivers [9][29] - Plans include expanding the MRD testing platform and launching innovative products like the Percepta nasal swab for lung cancer [23][28] - The company is committed to geographic expansion and enhancing its research and development capabilities [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Decipher's long-term growth trajectory, anticipating sustained double-digit growth driven by market penetration and share gains [16][55] - The company expects to generate approximately $13 million in savings compared to 2024 results, which will be reinvested in growth drivers [37] - The updated 2025 total revenue guidance is set at $496 million to $500 million, reflecting strong performance in the first half of the year [38] Other Important Information - The company has scanned over 90,000 slides from over 50,000 de-identified patients to support ongoing research in digital pathology [15][104] - The sale of the Veracyte SaaS manufacturing business was completed on August 1, allowing for continuity of supply for the Prosigna IVD [26][36] Q&A Session Summary Question: What are the key drivers for maintaining Decipher's growth? - Management highlighted market penetration, share gains, and digital pathology integration as key drivers for sustaining growth [45][49] Question: What is the expected growth contribution from the metastatic population for Decipher? - Management indicated that while the metastatic launch is promising, it is not expected to have a significant impact in 2025, with more substantial contributions anticipated in 2026 and beyond [58][65] Question: What milestones will drive greater adoption and revenue growth for Prosigna? - Key milestones include the mid-2026 launch, pivotal study results, and ongoing clinical studies to support the test [67][68] Question: How is the company approaching MRD testing? - The company plans to leverage its existing Decipher sales channel and cross-train sales representatives to target both academic and community oncology [79][80] Question: What feedback has been received regarding the digital pathology offering? - Initial feedback has been positive, with a focus on ensuring that digital pathology complements existing molecular diagnostics [100][102]

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