Myriad(US:MYGN)2025-11-03 21:07Revenue Performance - Third quarter 2025 revenue was $205.7 million, a decrease of 4% year-over-year, but flat when excluding headwinds of $8.1 million[4] - Total revenue for the three months ended September 30, 2025, was $205.7 million, a decrease of 4% compared to $213.3 million in the same period of 2024[26] - Total revenue for the nine months ended September 30, 2025, was $614.7 million, a decrease of 2% from $627.0 million in the same period of 2024[26] - Total revenue for the nine months ended September 30, 2025, was $429.8 million, compared to $434.5 million for the same period in 2024, showing a slight decline[39] Segment Performance - Hereditary cancer testing revenue grew 3% year-over-year to $93.0 million, with volume increasing by 11%[5] - GeneSight test revenue was $38.7 million in the third quarter 2025, despite a decrease in coverage impacting overall performance[12] - Hereditary Cancer revenue increased by 3% to $93.0 million in Q3 2025, compared to $90.5 million in Q3 2024[23] - Tumor Profiling revenue decreased by 7% to $29.5 million in Q3 2025, down from $31.6 million in Q3 2024[23] Financial Metrics - Gross margin for the third quarter 2025 was 69.9%[4] - Adjusted EBITDA for the third quarter 2025 was $10.3 million, while GAAP net loss was $27.4 million, or $0.29 per share[4] - Adjusted Gross Profit for Q3 2025 was $144.1 million, compared to $150.5 million in Q3 2024, reflecting a decrease of 4.5%[39] - Adjusted Gross Margin for Q3 2025 was 70.1%, slightly down from 70.6% in Q3 2024[39] - Adjusted Operating Income for Q3 2025 was $4.1 million, down from $9.5 million in Q3 2024, indicating a decline of 56.8%[45] - Adjusted EBITDA for the three months ended September 30, 2025, was $10.3 million, down from $14.1 million in the same period of 2024[57] Cash Flow and Expenses - Cash flow from operations in the third quarter 2025 was $21.1 million, with adjusted operating cash flow at $24.8 million[6] - Operating expenses decreased by $2.7 million year-over-year to $167.1 million, reflecting disciplined cost management[9] - Operating expenses for Q3 2025 totaled $167.1 million, slightly down from $169.8 million in Q3 2024[26] - Research and development expenses for Q3 2025 were $28.2 million, consistent with $28.5 million in Q3 2024[26] - The company reported net cash used in operating activities of $8.8 million for the nine months ended September 30, 2025, compared to $15.3 million for the same period in 2024[65] Strategic Initiatives - The company entered a strategic collaboration with SOPHiA GENETICS to develop a global liquid biopsy companion diagnostic testing solution[4] - The company’s partnership with SOPHiA GENETICS aims to enhance its capabilities in clinical trials and companion diagnostic test development[32] - Myriad Genetics plans to launch its first AI-enabled prostate cancer test in partnership with PATHOMIQ in the first half of 2026[13] - The company plans to commercially launch its first AI-driven prostate cancer test in partnership with PATHOMIQ in the first half of 2026[32] - The company is actively managing its strategic realignment and transformation initiatives to improve operational efficiency and market positioning[49] Impairment and Losses - The company reported a net loss of $27.4 million for Q3 2025, compared to a net loss of $22.1 million in Q3 2024[26] - The company incurred $316.7 million in impairment expenses related to goodwill and long-lived assets for the nine months ended September 30, 2025[59] - The company reported a significant impairment expense of $316.7 million for the nine months ended September 30, 2025, primarily related to its Pharmacogenomics and Women's Health units[46] Management Commentary - The company has faced risks related to competition and the ability to launch new tests profitably, which may impact future revenue growth[33] - The company does not provide forecasts for GAAP operating expenses or net income due to unpredictability in certain elements of reported results[37] - Management emphasizes the importance of non-GAAP financial measures for understanding core operating results and comparisons across periods[35] Shareholder Information - The weighted average diluted shares outstanding for the three months ended September 30, 2025, was 93.8 million, compared to 92.6 million for the same period in 2024[51] - The company recognized $12.2 million in equity compensation for the three months ended September 30, 2025, consistent with $12.3 million in the same period of 2024[57] - The company’s total depreciation expense for the three months ended September 30, 2025, was $4.8 million, compared to $4.4 million for the same period in 2024[57]