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MG

MYRIAD GENETICS INC (MYGN)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $213.1M (+1% YoY; +8.8% QoQ) with underlying revenue +5% YoY excluding UNH GeneSight and EndoPredict divestiture headwinds; adjusted EPS was $0.05 and adjusted EBITDA $14.5M; GAAP EPS was $(3.57) driven by $316.7M non‑cash impairments .
  • Raised FY 2025 guidance: revenue to $818–$828M, gross margin to 69.5–70.0%, adjusted EBITDA to $27–$33M; adjusted EPS maintained at $(0.02)–$0.02 .
  • Operational momentum: oncology hereditary cancer revenue +9% YoY, MyRisk oncology volume +14% YoY; prenatal revenue +7% YoY despite temporary order management friction; GeneSight volume +5% YoY with expanded payer coverage tailwinds (biomarker laws) .
  • Liquidity enhanced via a new $200M OrbiMed term loan (SOFR+6.50%): $125M funded, $75M option, replacing ABL; quarter‑end cash and cash equivalents $74.4M .

What Went Well and What Went Wrong

  • What Went Well
    • Oncology hereditary cancer strength: “We generated revenue of $213M… growth in average revenue per test… enabled by great execution… Our MyRisk test continues to gain share in the affected market” .
    • Gross margin expansion: adjusted gross margin rose to 71.5% (+140 bps YoY) on mix, pricing, and lab efficiencies .
    • Guidance raise and financing: FY revenue and margin guidance increased; secured a $200M OrbiMed facility to “ensure multiple years of liquidity” .
  • What Went Wrong
    • Prenatal order management friction: volume down 8% YoY despite revenue +7% YoY; issue fixed but impacted Q2 .
    • UNH coverage headwind: Pharmacogenomics revenue declined 12% YoY; management proceeding assuming status quo while pursuing evidence with UNH .
    • Large GAAP impairment: $316.7M goodwill/intangibles impairment tied to market cap decline, non‑cash but drove GAAP loss .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$211.5 $195.9 $213.1
Adjusted Gross Margin %70.1% 69.0% 71.5%
GAAP Diluted EPS ($)$(0.41) $0.00 $(3.57)
Adjusted EPS ($)$0.05 $(0.03) $0.05
Operating Loss ($USD Millions)$(36.5) $(29.0) $(329.2)
Adjusted Operating Income ($USD Millions)$7.4 $(5.5) $8.6
Adjusted EBITDA ($USD Millions)$11.7 $(0.1) $14.5

Actual vs Consensus (Q2 2025)

MetricConsensusActual
Revenue ($USD Millions)$202.3M*$213.1M — bold beat
Primary EPS ($)$(0.008)*$0.05 — bold beat

Next Quarter Consensus (Q3 2025)

MetricConsensus
Revenue ($USD Millions)$205.1M*
Primary EPS ($)$(0.011)*

Values retrieved from S&P Global.*

Segment Revenue Breakdown

Product Category ($USD Millions)Q2 2024Q1 2025Q2 2025
Hereditary Cancer$91.5 $86.3 $96.3
Tumor Profiling$32.6 $29.3 $31.4
Prenatal$44.4 $49.3 $47.6
Pharmacogenomics (GeneSight)$43.0 $31.0 $37.8
Total$211.5 $195.9 $213.1

Key KPIs

KPIQ2 2024Q1 2025Q2 2025
Total Test Volumes (000s)389 385 384
Hereditary Cancer Volumes (000s)73 73 78
MyRisk Oncology Volume YoY—+11% +14%
GeneSight Ordering Clinicians——>36,000
Cash & Cash Equivalents ($M)—$101.0 (incl. restricted cash at end) $74.4 (cash & cash equivalents)
Adjusted Free Cash Flow ($M)$7.5 $(18.7) $(17.1)

Guidance Changes

MetricPeriodPrevious Guidance (May)Current Guidance (Aug)Change
Revenue ($USD Millions)FY 2025$807–$823 $818–$828 Raised
Gross Margin %FY 202568.5%–69.5% 69.5%–70.0% Raised
Adjusted Operating Expenses ($M)FY 2025$555–$565 $562–$568 Raised
Adjusted EBITDA ($M)FY 2025$19–$27 $27–$33 Raised
Adjusted EPS ($)FY 2025$(0.02)–$0.02 $(0.02)–$0.02 Maintained

Earnings Call Themes & Trends

TopicQ-2 (Q4 2024)Q-1 (Q1 2025)Current (Q2 2025)Trend
AI/technology initiativesAnnounced exclusive PATHOMIQ AI partnership; plan comprehensive prostate continuum offering “Intend to commercially launch… first AI-driven prostate cancer test… by end of 2025” Target launch Q1 2026 for AI-driven prostate test; CCC focus with partnerships Timeline extended; scope broadened
MRD (ultra-sensitive)Highlighted MRD pipeline and evidence generation Additional AACR/ASCO data anticipated ASCO data: 100% baseline detection; 60% positive post‑surgery only detectable by ultra‑sensitive MRD; early access launch 1H26 Evidence strengthening; early access plan clarified
EMR/workflowsDoubling EMR investment; >4,500 new clinic locations EMR friction in unaffected HCT; remediation underway Improving unaffected volumes; breast cancer risk program ramp; prenatal order system issue fixed Execution improving
Payer coverage/biomarker lawsStable rates; biomarker legislation tailwinds UNH headwind; continued payer wins 49 YTD payer wins; Med‑Cal covering GeneSight (Sept. 25); ongoing UNH evidence submissions Accretive coverage; UNH unresolved
Prenatal productsLaunch of Prequel at 8 weeks; strong reception Prenatal +11% YoY; early adoption Prenatal +7% YoY; order system friction temporarily hurt volume; FirstGene early access in CONNECTOR Continued growth, ops fix in place
Prolaris/NCCNClarified inclusion; investing to regain share Expect growth; pursuing Level 1 evidence Prolaris rev +4% YoY; aiming Q1 2026 launch with PATHOMIQ integration Stabilizing with growth initiatives

Management Commentary

  • “We delivered solid second-quarter results… favorable pricing trends supported by mix and our ongoing efforts to expand payer coverage… confident in our ability to achieve sustained value creation” — Sam Raha, CEO .
  • “We are raising our full year revenue range to $818–$828M… increasing our gross margin range… and adjusted EBITDA… third quarter is seasonally slower” — Scott Leffler, CFO .
  • “We have fixed the prenatal ordering system issue… expect improving trends in prenatal volume growth starting in Q3” — Sam Raha, CEO .
  • “This agreement provides Myriad an initial tranche of $125M… option to draw an incremental $75M… blended rate ~7% for $200M committed capital” — Scott Leffler, CFO .

Q&A Highlights

  • UNH/GeneSight: Company submitted three publications (economic utility with Optum; meta‑analysis; VA sub‑analysis) for UNH’s fall review; expects status update around November and any change effective 2026; meanwhile, focusing on high‑value accounts and biomarker law‑driven coverage expansion (e.g., Medi‑Cal) .
  • MRD timing: Early access launch planned in 1H 2026; MolDX submission targeted Q1 with potential year‑end decision; continued multi‑cancer studies (~20) .
  • Guidance context: Raised FY guide reflecting Q2 momentum and improving rate environment; noted Q3 seasonality and unusual 2024 comp .
  • Oncology strategy/right to win: Leverage market leadership in HCT/HRD, trusted relationships, unified reporting, and focus on low‑shedding tumors for MRD; broaden portfolio via partnerships .
  • Prenatal friction quantified: Year‑to‑date prenatal volumes down ~4% vs expected high single‑digit to low double‑digit growth; operational fix completed .

Estimates Context

  • Q2 2025 revenue beat: $213.1M vs $202.3M consensus — bold beat; adjusted EPS beat: $0.05 vs $(0.008) consensus — bold beat .
  • Forward look: Q3 2025 consensus revenue $205.1M; EPS $(0.011); company reiterates typical Q3 seasonality and stronger H2 volume trajectory (EMR and prenatal fix) .
    Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Underlying growth intact despite UNH headwind: excluding UNH and EndoPredict divestiture, revenue grew 5% YoY; oncology and prenatal are the near‑term growth engines .
  • Margin quality improving: adjusted gross margin 71.5% and adjusted EBITDA $14.5M underscore scalable model; expect sustained rate tailwinds via payer wins and biomarker laws .
  • Strategy sharpened on Cancer Care Continuum: expanding into therapy selection, IO response monitoring, and MRD with a pragmatic partnership approach (e.g., PATHOMIQ), supporting medium‑term acceleration .
  • Liquidity secured: $200M OrbiMed facility de‑risks funding and enables R&D and commercial investments; watch interest expense impacts captured in maintained EPS guide .
  • Execution watch‑items: prenatal volume rebound post order system fix, unaffected HCT ramp via EMR integrations, GeneSight payer policy trajectory (UNH review this fall) .
  • Potential catalysts: additional MRD clinical data and MolDX submission, FirstGene CONNECTOR study updates, incremental payer coverage announcements, and oncology portfolio expansions .
  • Near‑term trading setup: positive guide revision and margin beat versus consensus are supportive; monitor Q3 seasonal dip and any signals on UNH reversal timing .