Myriad(MYGN) - 2025 Q1 - Quarterly Results

Financial Performance - First quarter 2025 revenue was $196 million, a decline of 3% year-over-year, but increased by 5% when excluding headwinds of $16 million[5]. - Revenue for the three months ended March 31, 2025, was $195.9 million, a decrease of 3.1% compared to $202.2 million in the same period of 2024[25]. - Prenatal revenue grew by 11% year-over-year, while Pharmacogenomics revenue declined by 20% due to UnitedHealthcare's reduced coverage of GeneSight[5]. - The Oncology business generated revenue of $77.7 million in the first quarter of 2025, with hereditary cancer testing volume growing by 5% year-over-year[11]. - The company reported a GAAP net loss of $0.1 million, or $0.00 EPS, with an adjusted EPS of $(0.03) for the first quarter 2025[5]. - The net loss for the three months ended March 31, 2025, was $0.1 million, a significant improvement compared to a net loss of $26.0 million in the prior year[25]. - Adjusted EBITDA for Q1 2025 was $(0.1) million, down from $4.0 million in Q1 2024, reflecting challenges in operational performance[58]. - Adjusted Free Cash Flow for Q1 2025 was $(18.7) million, slightly worse than $(17.9) million in Q1 2024, indicating ongoing cash flow pressures[64]. Margins and Expenses - First quarter 2025 gross margin was 69%, an increase of 40 basis points year-over-year, attributed to greater laboratory efficiencies[5]. - Gross profit for the same period was $134.2 million, down from $137.6 million, resulting in a gross margin of 68.4%[25]. - Adjusted gross profit for the period was $135.1 million, with an adjusted gross margin of 69.0%, compared to 68.5% in the previous year[40]. - Operating expenses for the first quarter of 2025 were $163.2 million, a decrease of $2.3 million year-over-year, while adjusted operating expenses increased to $140.6 million[8]. - Total operating expenses decreased to $163.2 million from $165.5 million year-over-year, with research and development expenses increasing to $27.5 million from $24.9 million[25]. - Real estate optimization costs for Q1 2025 were $4.0 million, down from $6.2 million in Q1 2024, showing improved cost management[64]. - Equity compensation expenses decreased to $9.5 million in Q1 2025 from $11.9 million in Q1 2024, indicating a reduction in non-cash compensation[53]. Cash Flow and Liquidity - Cash flow used in operations was $16.3 million, with adjusted cash flow used in operations at $10.4 million, a decrease of $1.1 million year-over-year[9]. - The company reported a net cash used in operating activities of $16.3 million, an improvement from $18.6 million in the same period last year[30]. - Cash and cash equivalents at the end of the period were $101.0 million, down from $105.6 million at the end of March 2024[30]. Debt and Assets - Long-term debt increased to $59.3 million from $39.6 million year-over-year, indicating a rise in financial leverage[28]. - Total assets decreased to $1,006.1 million from $1,027.6 million, reflecting a reduction in overall company resources[28]. Future Outlook - Updated financial guidance for 2025 includes revenue expectations of $807 - $823 million and adjusted EPS range of $(0.02) - $0.02[5][16]. - The company plans to commercially launch its first AI-driven prostate cancer test by the end of 2025, in partnership with PATHOMIQ[11][32]. Shareholder Impact - Weighted average shares outstanding increased to 91.4 million in Q1 2025 from 89.9 million in Q1 2024, reflecting potential dilution[53]. - The company recognized an uncertain tax benefit of $(28.7) million in Q1 2025, which was not present in Q1 2024, impacting net loss calculations[53]. Other Adjustments - The company reported $1.9 million in other adjustments for Q1 2025, compared to $1.2 million in Q1 2024, indicating increased one-time expenses[64]. - Capital expenditures for Q1 2025 were $5.3 million, down from $6.7 million in Q1 2024, reflecting a reduction in investment spending[64]. - Adjusted Operating Loss for Q1 2025 was $5.5 million, compared to $0.6 million in Q1 2024, indicating a significant increase in losses[48].