Carlos

Carlos asked about Veracyte's adjusted EBITDA margin guidance for 2026, which is set at 25% after exceeding 27% in 2025, seeking clarification on the factors influencing this adjustment, including potential increases in OpEx. He also requested an update on the competitive landscape for Decipher, given its strong Q4 growth and increased investment from competing assays.

Answer

CEO Marc Stapley explained the 25% margin target provides flexibility for faster investment in two new product launches and clinical evidence development, especially for MRD. CFO Rebecca Chambers clarified that the 2025 margin included $10 million in prior period collections not factored into 2026 guidance, and highlighted significant high-ROI investments in new products, software, commercial resources, and customer support. Regarding Decipher, Marc Stapley stated that the market is growing at about 6%, with Decipher's penetration at approximately 33%, and that no change in competitive dynamics has been observed. Rebecca Chambers added that Decipher's 2025 test growth was substantial, suggesting market share shifts among competitors rather than a direct impact on Veracyte.