Exact Sciences(EXAS) - 2025 Q1 - Quarterly Results

Financial Performance - Exact Sciences generated revenue of $707 million for Q1 2025, an 11% increase from $638 million in Q1 2024[2] - Screening revenue was $540 million, reflecting a 14% increase, while Precision Oncology revenue was $167 million, a 2% increase[6] - Adjusted EBITDA for Q1 2025 was $63 million, a 61% increase compared to the previous year, with an adjusted EBITDA margin of 9%[6] - Exact Sciences raised its full-year 2025 revenue guidance to $3.070 - $3.120 billion, representing a 12% year-over-year growth rate[9] - Revenue for Q1 2025 was $706,785, an increase of 11% compared to $637,524 in Q1 2024[27] - Gross profit for Q1 2025 was $500,547, up from $446,323 in Q1 2024, reflecting improved operational efficiency[27] - Adjusted EBITDA for Q1 2025 was $63,257, representing a margin of 9%, up from a margin of 6% in Q1 2024[34] - Screening revenue increased by 14% to $540,007 in Q1 2025 from $474,798 in Q1 2024[31] - Precision Oncology revenue grew by 4% to $166,778 in Q1 2025, compared to $162,726 in Q1 2024[31] Loss and Cash Flow - Exact Sciences improved its net loss to $101 million, or $0.54 per share, an improvement of $9 million year-over-year[6] - Net loss for Q1 2025 was $101,215, compared to a net loss of $110,228 in Q1 2024, indicating a reduction in losses[27] - Adjusted net loss for Q1 2025 was $38.9 million, or $0.21 per share, compared to an adjusted net loss of $67.9 million, or $0.37 per share in Q1 2024[36] - Net cash provided by operating activities in Q1 2025 was $30.8 million, a significant improvement from a net cash used of $82.3 million in Q1 2024[43] - Free cash flow for Q1 2025 was $(365) thousand, compared to $(119.96) million in Q1 2024, indicating a reduction in cash burn[43] Assets and Equity - Cash, cash equivalents, and marketable securities totaled $786 million at the end of Q1 2025[6] - Total assets decreased to $5,711,073 as of March 31, 2025, down from $5,928,139 at the end of 2024[29] - Cash and cash equivalents decreased to $347,127 from $600,889 at the end of 2024, indicating a significant reduction in liquidity[29] - Total stockholders' equity slightly decreased to $2,396,907 from $2,402,249 at the end of 2024[29] - Cash, cash equivalents, and restricted cash at the end of Q1 2025 were $347.1 million, down from $351.8 million at the end of Q1 2024[43] Expenses - Research and development expenses for Q1 2025 were $105.3 million, accounting for 15% of revenue, compared to $110.9 million and 17% in Q1 2024[36] - Sales and marketing expenses in Q1 2025 totaled $264.3 million, representing 37% of revenue, down from $217.8 million and 34% in Q1 2024[36] - The company incurred $8.3 million in integration-related costs for Q1 2025, primarily due to the remeasurement of contingent consideration liabilities[38] - Impairment charges for long-lived and indefinite-lived assets were $6.3 million in Q1 2025, reflecting ongoing adjustments to domestic facilities[39] Product Development and Future Outlook - The company launched the Cologuard Plus test, enhancing cancer screening sensitivity and reducing false positives by nearly 40%[7] - The company expects to obtain Medicare reimbursement for the Oncodetect test in colon cancer in Q2 2025[8] - The company is on track to launch the Cancerguard EX multi-cancer screening test in the second half of 2025[9] - The company continues to face risks related to product development, market acceptance, and regulatory approvals, which could impact future performance[25]