MYRIAD GENETICS INC (MYGN)·Q3 2025 Earnings Summary

Executive Summary

• Q3 2025 revenue was $205.7M, down 4% YoY, but essentially flat when excluding $8.1M headwinds from UNH’s GeneSight coverage changes and the EndoPredict divestiture; gross margin was 69.9% and adjusted EPS was $0.00, while adjusted EBITDA was $10.3M .
• Versus Wall Street, revenue slightly beat consensus ($205.7M vs $205.1M*) and EPS was better than expected ($0.00 vs -$0.011*); prior quarters showed Q2 beat on both revenue and EPS and Q1 miss on revenue with better-than-feared EPS* (Values retrieved from S&P Global).
• MYGN reiterated FY 2025 guidance (Revenue: $818–$828M; Gross Margin: 69.5–70.0%; Adj. OpEx: $562–$568M; Adj. EBITDA: $27–$33M; Adj. EPS: -$0.02–$0.02), signaling confidence in execution despite payer-mix/ASP headwinds .
• Execution catalysts: accelerating MyRisk growth (11% YoY volume), SOPHiA GENETICS CDx collaboration, and progress towards ultrasensitive Precise MRD clinical launch in 1H 2026; management highlighted a multi-year ~$35M commercial capability investment focused on the Cancer Care Continuum .

What Went Well and What Went Wrong

• What Went Well

  • MyRisk hereditary cancer testing strength: revenue +3% YoY and volume +11% YoY; CEO: “gross margin [was] among the best in the industry and again yielded positive adjusted EBITDA” .
  • Oncology resilience: oncology revenue $81.8M; continued progress on Prolaris and intent to commercially launch AI-enabled prostate test in 1H 2026 .
  • Strategic progress in MRD: Lancet Oncology publication demonstrated Precise MRD sensitivity in oligometastatic ccRCC and potential treatment de-escalation benefit .

• What Went Wrong

  • Pharmacogenomics revenue fell 19% YoY (GeneSight $38.7M) due to UNH coverage discontinuation; volumes improved (+8% YoY), but revenue pressure persisted .
  • ASP headwinds: CFO cited lapping an $8.6M prior-period estimate in Q3’24, UNH impact, and payer mix shifts as key drivers of lower average revenue per test .
  • Prenatal volume softness (-3% YoY) tied partly to lower demand for SneakPeek, offset by payer coverage progress for Foresight ECS; prenatal revenue +2% YoY .

Financial Results

Notes: *Values retrieved from S&P Global.

Segment/Product Revenue (YoY)

Business Unit Revenue

KPIs (Volumes)

Guidance Changes

Management does not provide GAAP guidance reconciliation due to variability of adjusting items .

Earnings Call Themes & Trends

Management Commentary

• “Stable year-over-year revenue performance excluding previously noted headwinds, and 13% year-over-year volume growth for our MyRisk hereditary cancer test… gross margin [is] among the best in the industry and again yielded positive adjusted EBITDA” — Sam Raha, President & CEO .
• “Underlying third quarter revenue growth rate [was] 5% after… UnitedHealthcare’s net impact on GeneSight ($7M), EndoPredict divestiture ($1M), and the $8.6M prior-period change in estimate in Q3’24” — CFO .
• “We intend to commercially launch our first AI-driven prostate cancer test… in the first half of 2026” — Management .
• MRD study: “Median systemic therapy-free survival nearly doubled… 94% of patients had ctDNA <100 ppm… ultrasensitive test can identify patients who can delay systemic therapy without compromising OS” — Lancet Oncology / MDACC/Myriad .

Q&A Highlights

• Prenatal/NIPT friction: Ordering-system issues from Q2 resolved; providers value 8-week visit alignment; FirstGene targeted to 8 weeks at commercial launch with competitive TAT .
• ASP dynamics: Q3 ASP pressured by prior-period comp ($8.6M in Q3’24), UNH’s GeneSight policy, and payer mix shifts; Q4 assumptions incorporate these dynamics .
• GeneSight trajectory: Record ordering clinicians (>37k); nine states added coverage under biomarker laws; UNH review expected November for 2026 effective date .
• Commercial investment: ~$35M multi-year program to expand field sales, launch tools, and fund MRD clinicals while reducing management layers to grow revenue faster than OpEx .

Estimates Context

• Revenue: Q3 actual $205.7M vs consensus $205.1M — slight beat; Q2 actual $213.1M vs $202.3M — beat; Q1 actual $195.9M vs $200.5M — miss* (Values retrieved from S&P Global).
• EPS: Q3 adjusted EPS $0.00 vs consensus -$0.011 — beat; Q2 $0.05 vs -$0.008 — beat; Q1 -$0.03 vs -$0.054 — better than expected* (Values retrieved from S&P Global).
• Estimate breadth: Q3 EPS (13 estimates) and revenue (12 estimates)* (Values retrieved from S&P Global).

Key Takeaways for Investors

• Mixed headline with underlying improvement: Solid MyRisk volume (+11% YoY), resilient gross margin (69.9%), and positive adjusted EBITDA despite headwinds and tough comp; management quantifies underlying +5% revenue growth adjusting for prior-period and divestiture effects .
• Pharmacogenomics remains pressured by UNH, yet volumes and state coverage are improving; watch for UNH policy review outcome (Nov, potential 2026 effective change) as a medium-term catalyst .
• Oncology pipeline breadth expanding: SOPHiA GENETICS CDx collaboration, AI-enabled Prolaris (1H26), and ultrasensitive MRD headed to 1H26 clinical use—multi-year growth drivers within the Cancer Care Continuum .
• FY 2025 guidance reaffirmed—signals confidence in H2 execution and OpEx discipline; near-term variability likely reflects payer mix and ASP, but structural margin profile remains strong .
• Tactical focus: Monitor MyRisk adoption in the unaffected market (EMR integration programs, breast cancer risk assessment), prenatal FirstGene development and payer coverage for ECS, and MRD dataflow/publications to de-risk launch .
• Capital and liquidity improved via OrbiMed $200M term loan, replacing ABL and supporting CCC-focused investments .
• Near-term trading lens: modest revenue/EPS beats vs consensus, reiterated FY guide, and visible 2026 catalysts (MRD, AI Prolaris) can support sentiment; ASP/payer mix variability remains a watch item .

All consensus values marked with * are retrieved from S&P Global.