Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was approximately $132 million, representing a 14% year-over-year increase [5][21] - Adjusted EBITDA margin reached a record 30%, a 650 basis points improvement from the prior year [6][7] - Testing revenue was $127.8 million, up 17% year-over-year, driven by Decipher and Affirma revenue growth of 26% and 7% respectively [22][25] - GAAP net income was $19.1 million, including a one-time loss of $6.7 million from the deconsolidation of Veracyte SAS [24] Business Line Data and Key Metrics Changes - Decipher achieved 26% volume growth year-over-year, with approximately 26,700 tests delivered in Q3 [7][13] - Affirma saw a 13% volume growth in Q3, driven by new account wins and increased utilization [13][14] - Product revenue was $3.3 million, up 4% year-over-year, with product volume at approximately 2,200 tests [22] Market Data and Key Metrics Changes - The volume of tests in the high-risk localized group for Decipher grew more than 30% [8] - The company reported 23 new abstracts and publications on Decipher prostate and grid, bringing the total to 240 publications [11] Company Strategy and Development Direction - The company aims to maintain a best-in-class profitability profile while investing in strategic growth drivers [20] - Plans to launch Prosigna as an LDT for the U.S. breast cancer market in mid-2026, with a focus on precision medicine [17][18] - The company is expanding its MRD platform with multiple studies in various cancers, aiming to capture a significant share of the pan-cancer market [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining double-digit growth driven by Decipher and Affirma, alongside new product launches [20][25] - The outlook for 2025 has been raised to $506 million-$510 million in total revenue, reflecting strong year-to-date performance [25][26] - Management highlighted the importance of clinical evidence in driving adoption and market share for Decipher [31][32] Other Important Information - The company is transitioning to a contract manufacturing model, which may impact product gross margins [23] - The digital pathology services and associated AI models have been made available to research collaborators [12] Q&A Session Summary Question: How do clinicians manage discordant results between Decipher and DPAI? - Management indicated that physicians tend to prioritize Decipher results as the gold standard when faced with discordant results [31][32] Question: What is the strategy for balancing margin trajectory with investment opportunities? - Management plans to maintain a target of approximately 25% adjusted EBITDA while accelerating investments in strategic areas [46][47] Question: What are the growth expectations for Decipher in 2026? - Management expressed confidence in achieving double-digit growth for Decipher in 2026, supported by market penetration and evidence generation [52][58] Question: How does the company differentiate its MRD test in a competitive landscape? - Management emphasized the strength of their clinical evidence and existing channels as key differentiators for their MRD test [56][100]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was approximately $132 million, representing a 14% year-over-year increase [4][18] - Adjusted EBITDA margin reached a record 30%, a 650 basis points improvement from the prior year [4][5] - GAAP net income was $19.1 million, including a one-time loss of $6.7 million due to the deconsolidation of Veracyte SAS [21] - Cash generated from operations was $44.8 million, with cash and cash equivalents at $366 million at the end of the quarter [22] Business Line Data and Key Metrics Changes - Core testing business revenue grew 18% year-over-year, driven by Decipher's 26% volume growth and Affirma's 13% growth [4][19] - Decipher tests delivered approximately 26,700 in Q3, marking the 14th consecutive quarter of over 25% year-over-year volume growth [5][12] - Affirma tests totaled 17,000, contributing to a 13% volume growth in Q3 [12][19] - Product revenue was $3.3 million, up 4% year-over-year, with product volume at approximately 2,200 tests [19] Market Data and Key Metrics Changes - Decipher's clinical utility is increasingly recognized, especially in high-risk localized and metastatic patients, with over 30% growth in high-risk localized group tests [6][12] - The company is expanding its MRD platform with multiple studies in various cancers, indicating a robust pipeline [14][15] Company Strategy and Development Direction - The company aims to maintain a best-in-class profitability profile while investing in strategic growth drivers [5][18] - Plans to launch Prosigna as an LDT for the U.S. breast cancer market in mid-2026, leveraging clinical outcomes data to support its efficacy [16][54] - The focus remains on expanding Decipher's application across indications and enhancing clinical insights through additional molecular features [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving durable double-digit growth, supported by strong momentum and upcoming product launches [18][22] - The outlook for 2025 has been raised, with total revenue guidance now between $506 million and $510 million, reflecting strong year-to-date performance [22][23] - The company anticipates continued investment in critical projects while managing to an approximate 25% adjusted EBITDA target [35][51] Other Important Information - The company has scanned over 115,000 slides from more than 80,000 de-identified patients, building a significant digital image repository [12][11] - The transition to the V2 Transcriptome for Affirma is progressing, with expectations for full transition by year-end [13][50] Q&A Session Summary Question: How do clinicians manage discordant results between Decipher and DPAI? - Management indicated that physicians focus on Decipher as the gold standard when faced with discordant results, emphasizing the importance of clinical evidence [27][29] Question: What is the strategy for balancing margin trajectory with investment opportunities? - The company plans to manage to a 25% adjusted EBITDA target while accelerating investments in clinical trials and product development [34][35] Question: What are the growth expectations for Decipher in 2026? - Management expressed confidence in achieving double-digit growth for Decipher in 2026, supported by market penetration and evidence generation [38][42] Question: How does Veracyte differentiate its MRD test in a competitive landscape? - The company aims to leverage its existing channels and clinical evidence to position its MRD test as a leading competitor in muscle-invasive bladder cancer [40][59] Question: What is the timeline for the commercial launch of Prosigna? - The company expects to launch Prosigna as an LDT in mid-2026, pending the release of key clinical data [54][53]