EXAS Stock Up on Q1 Earnings & Revenue Beat, 2025 Sales View Raised

Core Insights - Exact Sciences Corporation (EXAS) reported a narrower net loss of 21 cents in Q1 2025, compared to a loss of 50 cents in the same quarter last year, and better than the Zacks Consensus Estimate of a loss of 37 cents [1] - The company achieved consolidated revenues of $706.8 million, reflecting a 10.9% increase year-over-year, surpassing the Zacks Consensus Estimate by 2.5% [1][3] Revenue Breakdown - Screening revenues, including laboratory service revenues from Cologuard tests, increased by 14% year-over-year to $540 million, driven by strong Cologuard momentum [3] - Precision Oncology revenues reached $167 million, a 2% increase from the previous year, supported by the international adoption of Oncotype DX [3] Margin Performance - Gross profit rose by 12.2% year-over-year to $500.5 million, with gross margin expanding by 81 basis points to 70.8% despite a 7.9% increase in the cost of revenues [4] - Research and development expenses decreased by 5% to $105.3 million, while sales and marketing expenses surged by 21.4% to $264.3 million [4] Financial Update - The adjusted operating loss for Q1 totaled $89.8 million, an improvement from the operating loss of $102 million in the previous year [5] - The company ended the quarter with cash and cash equivalents of $786 million, down from $1.04 billion at the end of Q4 2024 [6] 2025 Outlook - For the full year 2025, EXAS anticipates total revenues between $3.070 billion and $3.120 billion, an increase from the previous estimate of $3.025 billion to $3.085 billion [7] - Screening revenues are expected to be between $2.390 billion and $2.425 billion, while Precision Oncology revenues are projected to be between $680 million and $695 million [7] EBITDA Forecast - The adjusted EBITDA forecast has been updated to a range of $425 million to $455 million, up from the earlier range of $410 million to $440 million [8] Overall Assessment - The company exited Q1 2025 with a narrower-than-expected loss and revenue beat, indicating strong performance amid challenging conditions [9] - The launch of Cologuard Plus, along with year-over-year gross margin expansion and reduced operating loss, reflects positively on the company's growth trajectory [10]