Myriad(US:MYGN)2025-11-04 11:18Revenue Performance - Total revenue for the three months ended September 30, 2025, was $205.7 million, a decrease of $7.6 million compared to $213.3 million in the same period of 2024[93] - For the nine months ended September 30, 2025, total revenue decreased by $12.3 million to $614.7 million compared to $627.0 million in the same period of 2024[103] - Hereditary Cancer revenue increased by $2.5 million to $93.0 million, representing 45% of total revenue, up from 43% in 2024[93] - Hereditary Cancer revenue increased by $5.5 million to $275.6 million, representing 45% of total revenue, while Prenatal revenue increased by $9.2 million to $141.4 million, representing 23% of total revenue[103] - Pharmacogenomics revenue decreased by $9.0 million to $38.7 million, with a 25% year-over-year decrease in average revenue per test[94] - Pharmacogenomics revenue decreased by $22.1 million to $107.5 million, primarily due to a 21% decrease in average revenue per test and changes in coverage by UnitedHealthcare[104] Cost and Expenses - Cost of revenue decreased by $1.6 million to $61.9 million, representing 30.1% of total revenue, compared to 29.8% in 2024[96] - Cost of revenue decreased by $7.6 million to $184.9 million, representing 30.1% of total revenue, driven by a reduction in the cost per test[105] - Total operating expenses remained stable at $167.1 million, with operating expenses as a percentage of total revenue increasing to 81.2% from 78.6%[97] - General and administrative expenses decreased by $10.7 million to $201.2 million, representing 32.7% of total revenue, primarily due to a decrease in amortization and consulting fees[108] - Goodwill and long-lived asset impairment charges increased significantly to $316.7 million, representing 51.5% of total revenue, including $234.7 million in goodwill impairment[109] Cash Flow and Financing - As of September 30, 2025, cash and cash equivalents were $145.4 million, an increase of $43.0 million from December 31, 2024, primarily due to $76.1 million in cash proceeds from borrowings[123] - Cash flows used in operating activities decreased by $6.5 million for the nine months ended September 30, 2025, compared to the same period in 2024[125] - Cash flows from investing activities increased by $15.4 million for the nine months ended September 30, 2025, due to the absence of cash inflows from the sale of the EndoPredict business[126] - Cash flows from financing activities increased by $81.9 million for the nine months ended September 30, 2025, primarily due to $76.1 million from the new Credit Facility[127] - The company entered into a $200 million credit agreement, with an initial loan of $125 million, to support working capital needs and general corporate purposes[114] - The interest rate for borrowings under the credit agreement as of September 30, 2025, was 10.8%[116] Strategic Initiatives - The company plans to enhance its focus on the Cancer Care Continuum market and leverage strategic partnerships to drive growth[90] - The company plans to invest in research and development and new product development to support its business strategy[113] - In October 2025, the company announced the addition of two genes to the Foresight Carrier Screen Universal Plus Panel, indicating ongoing product development[95] Market and Economic Factors - Approximately 7% of revenue for the three and nine months ended September 30, 2025, was denominated in currencies other than U.S. dollars, primarily Japanese yen[131] - The company is subject to coverage limitations and denials from third-party payors, negatively impacting Pharmacogenomics revenue and cash flow in 2025[122] - The company believes existing capital resources will meet projected operating requirements for at least the next 12 months, but operational cash needs may impact this[120] - Inflation may negatively impact profitability and borrowing rates, affecting the company's financial condition and results of operations[128] - An incremental change in the borrowing rate of 100 basis points would increase or decrease annual interest expense by $1.3 million based on a Credit Facility balance of $125.0 million[132] Impairment and Tax - No goodwill and long-lived asset impairment charges were recorded in the three months ended September 30, 2025, compared to $2.2 million in the prior year[98] - Income tax benefit for the nine months ended September 30, 2025, was $28.2 million, with an effective tax rate of 7.3%[112]