Veracyte Announces Second Quarter 2026 Financial Results
Rhea-AI Summary
Veracyte (Nasdaq: VCYT) reported second quarter 2026 total revenue of $150.3 million, up 15% year-over-year, with testing revenue up 19% to $145.7 million. Growth was driven by Decipher revenue of $91.9 million (+20%) and Afirma revenue of $51.2 million (+18%), on testing volume growth of 14% to 48,389 tests.
The company generated GAAP net income of $25.5 million (17.0% margin) and adjusted EBITDA of $44.0 million (29.2% margin), and ended June 30, 2026 with $485.2 million in cash, cash equivalents and short-term investments. Veracyte launched the Prosigna Breast Test in the U.S. and the TrueMRD Monitoring Test for MIBC, and obtained Medicare coverage for TrueMRD. Total gross margin increased to 72% (non-GAAP 75%), while operating expenses declined on a GAAP basis to $85.6 million.
For full-year 2026, Veracyte raised total revenue guidance to $590–$596 million (14–15% growth) and testing revenue guidance to $576–$582 million (17–18% growth), and continues to expect adjusted EBITDA margin to exceed 26%.
Positive
- Total revenue $150.3M, up 15% year-over-year in Q2 2026
- Testing revenue $145.7M, up 19% year-over-year
- Decipher revenue $91.9M, up 20%; Afirma $51.2M, up 18%
- GAAP net income $25.5M vs prior-year loss; 17.0% margin
- Adjusted EBITDA $44.0M, 29.2% of revenue, up 23% year-over-year
- Raised 2026 revenue guidance to $590–$596M and testing revenue to $576–$582M
Negative
- Biopharmaceutical and other revenue fell to $0.8M from $4.3M year-over-year
- Non-GAAP operating expenses increased 16% to $70.0M year-over-year
- Cash and cash equivalents plus short-term investments $485.2M, down from $512.9M at December 31, 2025
Market reaction after 2Q26 earnings report: VCYT -11.34%
Following this news, VCYT has declined 11.34%, reflecting a significant negative market reaction. Our momentum scanner has triggered 45 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $53.00. Trading volume is above average at 1.5x the average, suggesting increased trading activity.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 05 | First-quarter earnings | Positive | +24.9% | Revenue growth, profitability, and raised guidance preceded a 24.93% 24-hour gain. |
| Feb 25 | Fourth-quarter earnings | Positive | +8.5% | Strong quarterly and annual results preceded an 8.48% 24-hour gain. |
| Nov 04 | Third-quarter earnings | Positive | +27.5% | Revenue growth and raised full-year guidance preceded a 27.46% 24-hour gain. |
| Aug 06 | Second-quarter earnings | Positive | +15.5% | Revenue growth and improved guidance preceded a 15.48% 24-hour gain. |
| May 07 | First-quarter earnings | Positive | +1.2% | Revenue growth and higher EBITDA guidance preceded a 1.2% 24-hour gain. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
All five tag-matched earnings events had positive 24-hour reactions, including 24.93%, 8.48%, 27.46%, 15.48%, and 1.2%.
Key Terms
gaap financial
adjusted ebitda financial
mibc medical
whole-genome sequencing technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Grew total revenue to
Conference call and webcast today at 4:30 p.m. ET
SOUTH SAN FRANCISCO, Calif., July 30, 2026 (GLOBE NEWSWIRE) -- Veracyte, Inc. (Nasdaq: VCYT), a leading cancer diagnostics company, today announced financial results for the second quarter ended June 30, 2026.
“Q2 was a milestone quarter for Veracyte as we launched two new products, Prosigna LDT and TrueMRD for MIBC, while also delivering strong double-digit revenue growth, profitability and cash generation,” said Marc Stapley, Veracyte’s chief executive officer. “These launches meaningfully expand our ability to serve more patients across the cancer care continuum and, combined with the strength of our core business, position us well to deliver durable double-digit growth.”
Key Financial Highlights
For the three-month period ended June 30, 2026, as compared to the same period in 2025:
- Increased total revenue by
15% to$150.3 million and testing revenue by19% to$145.7 million , driven by Decipher growth of20% to$91.9 million and Afirma growth of18% to$51.2 million . - Increased total volume by
13% to 50,967 tests and testing volume by14% to 48,389 tests, driven by Decipher growth of17% to approximately 29,700 tests and Afirma growth of10% to approximately 18,600 tests. - Recorded GAAP net income of
$25.5 million , or17.0% of revenue, and delivered adjusted EBITDA of$44.0 million , or29.2% of revenue. - Generated
$45.8 million of cash from operations to end the quarter with$485.2 million of cash, cash equivalents, and short-term investments as of June 30, 2026.
Key Business Highlights
- Launched the Prosigna Breast Test in the U.S. for patients diagnosed with early-stage hormone-receptor positive (HR+) breast cancer.
- Launched the TrueMRD Monitoring Test for patients with muscle-invasive bladder cancer (MIBC).
- Secured Medicare coverage for the TrueMRD Monitoring Test, representing the first Medicare coverage decision for the whole-genome sequencing-based TrueMRD platform.
- Further expanded the clinical evidence of our testing portfolio, including new predictive evidence from the OPTIMA trial supporting the clinical utility of Prosigna and the ENZAMET trial expanding the Decipher clinical evidence base. Together, Decipher and Afirma were featured in nearly 60 abstracts and presentations during the quarter.
A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading "Note Regarding Use of Non-GAAP Financial Measures."
Second Quarter 2026 Financial Results
Total revenue for the second quarter of 2026 was
Total gross margin for the second quarter of 2026 was
Operating expenses were
Net income for the second quarter of 2026 was
Adjusted EBITDA for the second quarter of 2026 was
2026 Financial Outlook
The company is raising 2026 total revenue guidance to
The company continues to expect adjusted EBITDA margin to be greater than
The company is unable to provide a quantitative reconciliation of expected adjusted EBITDA margin to expected GAAP net income margin, the most directly comparable forward-looking GAAP measure without unreasonable effort, because of the inherent difficulty in accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliations that have not yet occurred, that are dependent on various factors, are out of the company’s control, or that cannot be reasonably predicted. Such adjustments include, but are not limited to, acquisition-related expenses, and other adjustments. Any associated estimate of these items and their impact on GAAP performance for the guidance period could vary materially. For more information on the non-GAAP financial measures, please refer to the section titled “Note Regarding Use of Non-GAAP Financial Measures” at the end of this press release.
Conference Call and Webcast Details
Veracyte will host a conference call and webcast today at 4:30 p.m. Eastern Time to discuss the company's financial results and provide a general business update. The conference call will be webcast live from the company’s website and will be available via the following link: https://edge.media-server.com/mmc/p/wwu2pyd7. The webcast should be accessed 10 minutes prior to the conference call start time. A replay of the webcast will be available for one year following the conclusion of the live broadcast and will be accessible on the company’s website at https://investor.veracyte.com/events-presentations.
About Veracyte
Veracyte (Nasdaq: VCYT) is a global diagnostics company with a vision to transform cancer care for patients around the world. The company’s molecular tests assess the unique biology of each patient’s tumor to help clinicians answer essential questions about cancer care. Veracyte’s Diagnostics Platform combines broad genomic and clinical data, advanced bioinformatics and AI, and a powerful evidence-generation engine to support continued innovation and pipeline development. The company’s portfolio includes the Afirma® Genomic Sequencing Classifier test, Decipher® Bladder Genomic Classifier test, Decipher® Prostate Genomic Classifier test, Prosigna® Breast Risk of Recurrence test, and the TrueMRD™ Monitoring Test for MIBC. For more information, visit Veracyte’s website or follow the company on LinkedIn or X (Twitter).
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to our statements related to our plans, objectives, and expectations (financial and otherwise), including with respect to our 2026 financial and operating results; and our intentions with respect to the development, launch, commercialization, adoption, and reimbursement of our tests and products. Forward-looking statements can be identified by words such as: “appears,” “anticipate,” “intend,” “plan,” “expect,” “believe,” “should,” “may,” “could,” “would,” “will,” “enable,” “positioned,” “offers,” “designed,” “ultimately,” “strategic,” “outlook,” “guidance,” and similar references to future periods. Actual results may differ materially from those projected or suggested in any forward-looking statements. These statements involve risks and uncertainties, which could cause actual results to differ materially from our predictions, and include, but are not limited to: our ability to launch, commercialize and receive reimbursement for our products; our ability to execute on our business strategies relating to the C2i Genomics acquisition, integration of the business and the realization of expected benefits and synergies; our ability to demonstrate the validity and utility of our genomic tests and biopharma and other offerings; our ability to continue executing on our business plan; our ability to continue to scale our global operations and enhance our internal control environment; the impact of the war in Ukraine and other regional conflicts on European economies; the impact of foreign currency fluctuations, volatile interest rates, inflation, the impact of legislation and policies enacted by the current U.S. administration; turmoil in the global banking and finance system; the ongoing conflict in the Middle East; and the performance and utility of our tests in the clinical environment. Additional factors that may impact these forward-looking statements can be found under the caption “Risk Factors” in our Annual Report on Form 10-K filed on February 26, 2026, as well as in other documents that we may file from time to time with the Securities and Exchange Commission. Copies of these documents, when available, may be found in the Investors section of our website at investor.veracyte.com. These forward-looking statements speak only as of the date hereof and, except as required by law, we specifically disclaim any obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise.
Note Regarding Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release and the accompanying tables contain, and reference certain non‐GAAP results including non-GAAP gross margin, non-GAAP operating expenses, adjusted EBITDA, adjusted EBITDA as a percentage of revenue (also referred to as adjusted EBITDA margin), non-GAAP net income, and non-GAAP earnings per share (EPS) and non-GAAP weighted average shares outstanding. These non-GAAP financial measures are not meant to be considered superior to or a substitute for financial measures calculated in accordance with GAAP, and investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool.
We use non-GAAP financial measures to internally evaluate and analyze financial results. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies, many of which present similar non-GAAP financial measures. However, the non-GAAP financial measures we present may be different from those used by other companies, including similarly titled measures.
We compute these non-GAAP measures by adjusting the applicable GAAP measure to remove the impact of certain recurring and non-recurring charges and gains and to adjust for the impact of income tax items related to such adjustments to our GAAP financial statements. In particular, we exclude amortization of acquired intangible assets, acquisition-related expenses relating to our acquisitions of Decipher Biosciences, HalioDx and C2i Genomics, impairment charges associated with the nCounter license and other biopharmaceutical services related to HalioDx intangible assets, all stock-based compensation and certain costs related to restructuring from all of our non-GAAP financial measures as well as depreciation and income tax items from our adjusted EBITDA and adjusted EBITDA as a percentage of revenue. Beginning in the second quarter of 2024, we changed our non-GAAP policy to exclude all stock-based compensation to align with our peers and we have also excluded all stock-based compensation from our prior period non-GAAP financial measures. Management has excluded the effects of these items in non-GAAP financial measures to help investors gain a better understanding of the core operating results and future prospects of the company, consistent with how management measures and forecasts the company's performance, especially when comparing such results to previous periods or forecasts. The company encourages investors to carefully consider its results under GAAP, together with its supplemental non‐GAAP information and the reconciliation between these presentations. See “Reconciliation of U.S. GAAP to Non-GAAP Financial Measures” for a reconciliation of each non-GAAP measure presented to the comparable GAAP financial measure.
| VERACYTE, INC. | |||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||
| (Unaudited) | |||||||||||||
| (In thousands, except share and per share amounts) | |||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||
| Revenue: | |||||||||||||
| Testing revenue | $ | 145,661 | $ | 122,263 | $ | 280,752 | $ | 229,572 | |||||
| Product revenue | 3,858 | 3,598 | 7,537 | 7,178 | |||||||||
| Biopharmaceutical and other revenue | 802 | 4,303 | 1,103 | 7,887 | |||||||||
| Total revenue | 150,321 | 130,164 | 289,392 | 244,637 | |||||||||
| Cost of revenue: (1) | |||||||||||||
| Cost of testing revenue | 36,309 | 32,407 | 69,615 | 60,667 | |||||||||
| Cost of product revenue | 2,515 | 1,749 | 4,406 | 3,171 | |||||||||
| Cost of biopharmaceutical and other revenue | 207 | 3,572 | 215 | 6,270 | |||||||||
| Intangible asset amortization - cost of revenue | 2,741 | 2,667 | 5,448 | 5,252 | |||||||||
| Total cost of revenue | 41,772 | 40,395 | 79,684 | 75,360 | |||||||||
| Gross profit | 108,549 | 89,769 | 209,708 | 169,277 | |||||||||
| Operating expenses: (1) | |||||||||||||
| Research and development | 29,442 | 16,264 | 56,540 | 33,984 | |||||||||
| Selling and marketing | 28,263 | 25,316 | 55,419 | 49,770 | |||||||||
| General and administrative | 27,443 | 32,331 | 51,123 | 66,139 | |||||||||
| Impairment of assets | — | 20,505 | — | 20,505 | |||||||||
| Intangible asset amortization - operating expenses | 421 | 621 | 1,000 | 1,243 | |||||||||
| Total operating expenses | 85,569 | 95,037 | 164,082 | 171,641 | |||||||||
| Income (loss) from operations | 22,980 | (5,268 | ) | 45,626 | (2,364 | ) | |||||||
| Other income, net | 3,543 | 6,518 | 10,871 | 11,042 | |||||||||
| Income before income taxes | 26,523 | 1,250 | 56,497 | 8,678 | |||||||||
| Income tax provision | 1,033 | 2,230 | 2,300 | 2,611 | |||||||||
| Net income (loss) | $ | 25,490 | $ | (980 | ) | $ | 54,197 | $ | 6,067 | ||||
| Earnings (loss) per share: | |||||||||||||
| Basic | $ | 0.32 | $ | (0.01 | ) | $ | 0.68 | $ | 0.08 | ||||
| Diluted | $ | 0.31 | $ | (0.01 | ) | $ | 0.66 | $ | 0.08 | ||||
| Shares used to compute earnings (loss) per common share: | |||||||||||||
| Basic | 79,972,389 | 78,391,502 | 79,755,699 | 78,210,881 | |||||||||
| Diluted | 82,059,442 | 78,391,502 | 81,753,292 | 79,905,121 | |||||||||
1. Cost of revenue, research and development, sales and marketing and general and administrative expenses include the following stock-based compensation related expenses:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||
| Cost of revenue | $ | 960 | $ | 608 | $ | 2,059 | $ | 1,128 | |||
| Research and development | 2,917 | 2,008 | 5,597 | 4,074 | |||||||
| Selling and marketing | 2,706 | 2,198 | 5,105 | 4,156 | |||||||
| General and administrative | 7,503 | 6,171 | 14,086 | 12,585 | |||||||
| Total stock-based compensation expense | $ | 14,086 | $ | 10,985 | $ | 26,847 | $ | 21,943 | |||
| VERACYTE, INC. | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||
| (Unaudited) | ||||||||||||
| (In thousands) | ||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Net income (loss) | $ | 25,490 | $ | (980 | ) | $ | 54,197 | $ | 6,067 | |||
| Other comprehensive income (loss): | ||||||||||||
| Change in currency translation adjustments | 282 | 16,682 | 273 | 24,131 | ||||||||
| Net comprehensive income | $ | 25,772 | $ | 15,702 | $ | 54,470 | $ | 30,198 | ||||
| VERACYTE, INC. | |||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| (In thousands) | |||||
| June 30, | December 31, | ||||
| 2026 | 2025 | ||||
| (Unaudited) | (See Note 1) | ||||
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 299,521 | $ | 362,578 | |
| Short-term investments | 185,711 | 50,311 | |||
| Accounts receivable | 54,177 | 44,660 | |||
| Supplies | 22,656 | 20,546 | |||
| Prepaid expenses and other current assets | 12,710 | 10,281 | |||
| Total current assets | 574,775 | 488,376 | |||
| Property, plant and equipment, net | 21,933 | 22,192 | |||
| Right-of-use assets, operating leases | 35,163 | 36,599 | |||
| Intangible assets, net | 82,700 | 89,148 | |||
| Goodwill | 767,154 | 767,154 | |||
| Restricted cash | 1,666 | 1,648 | |||
| Other assets | 2,975 | 902 | |||
| Total assets | $ | 1,486,366 | $ | 1,406,019 | |
| Liabilities and Stockholders’ Equity | |||||
| Current liabilities: | |||||
| Accounts payable | $ | 8,024 | $ | 4,593 | |
| Accrued liabilities | 47,677 | 48,801 | |||
| Current portion of deferred revenue | 597 | 1,160 | |||
| Current portion of acquisition-related contingent consideration | 662 | 1,332 | |||
| Current portion of operating lease liabilities | 5,776 | 4,051 | |||
| Total current liabilities | 62,736 | 59,937 | |||
| Deferred tax liabilities | 637 | 646 | |||
| Acquisition-related contingent consideration, net of current portion | 259 | 257 | |||
| Operating lease liabilities, net of current portion | 34,331 | 35,603 | |||
| Total liabilities | 97,963 | 96,443 | |||
| Total stockholders’ equity | 1,388,403 | 1,309,576 | |||
| Total liabilities and stockholders’ equity | $ | 1,486,366 | $ | 1,406,019 | |
| 1. The condensed consolidated balance sheet at December 31, 2025 has been derived from the audited financial statements at that date included in the company's Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission on February 26, 2026. | |||||
| VERACYTE, INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (Unaudited) | |||||||
| (In thousands) | |||||||
| Six Months Ended June 30, | |||||||
| 2026 | 2025 | ||||||
| Operating activities | |||||||
| Net income | $ | 54,197 | $ | 6,067 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 10,268 | 10,851 | |||||
| Loss on disposal of property, plant and equipment | 367 | 15 | |||||
| Stock-based compensation | 26,847 | 21,943 | |||||
| Deferred income taxes | (9 | ) | 74 | ||||
| Noncash lease expense | 1,436 | 1,600 | |||||
| Revaluation of acquisition-related contingent consideration | (668 | ) | (2,879 | ) | |||
| Effect of foreign currency on operations | (69 | ) | (5,050 | ) | |||
| Amortization of discount on short-term investments | (1,337 | ) | (1,929 | ) | |||
| Impairment loss | — | 20,505 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (9,729 | ) | (4,283 | ) | |||
| Supplies | (2,110 | ) | (2,863 | ) | |||
| Prepaid expenses and other current assets | (2,429 | ) | (5,460 | ) | |||
| Other assets | (451 | ) | 540 | ||||
| Operating lease liabilities | 453 | (1,186 | ) | ||||
| Accounts payable | 3,758 | 3,113 | |||||
| Accrued liabilities and deferred revenue | 517 | (2,091 | ) | ||||
| Net cash provided by operating activities | 81,041 | 38,967 | |||||
| Investing activities | |||||||
| Purchase of short-term investments | (184,998 | ) | (99,998 | ) | |||
| Proceeds from maturity of short-term investments | 50,935 | 51,061 | |||||
| Issuance of loan receivable | (1,622 | ) | — | ||||
| Purchases of property, plant and equipment | (5,821 | ) | (3,105 | ) | |||
| Net cash used in investing activities | (141,506 | ) | (52,042 | ) | |||
| Financing activities | |||||||
| Payment of taxes on vested restricted stock units | (13,658 | ) | (11,831 | ) | |||
| Proceeds from the exercise of common stock options and employee stock purchases | 11,168 | 4,781 | |||||
| Net cash used in financing activities | (2,490 | ) | (7,050 | ) | |||
| Decrease in cash, cash equivalents and restricted cash | (62,955 | ) | (20,125 | ) | |||
| Effect of foreign currency on cash, cash equivalents and restricted cash | (84 | ) | 647 | ||||
| Net decrease in cash, cash equivalents and restricted cash | (63,039 | ) | (19,478 | ) | |||
| Cash, cash equivalents and restricted cash at beginning of period | 364,226 | 240,631 | |||||
| Cash, cash equivalents and restricted cash at end of period | $ | 301,187 | $ | 221,153 | |||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||||
| (Unaudited) | |||||
| (In thousands) | |||||
| June 30, | December 31, | ||||
| 2026 | 2025 | ||||
| Cash and cash equivalents | $ | 299,521 | $ | 362,578 | |
| Restricted cash | 1,666 | 1,648 | |||
| Total cash, cash equivalents and restricted cash | $ | 301,187 | $ | 364,226 | |
| VERACYTE, INC. | |||||||||||||||
| RECONCILIATION OF U.S. GAAP to NON-GAAP FINANCIAL MEASURES | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (In thousands) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Reconciliation of Non-GAAP Cost of Revenue: | |||||||||||||||
| GAAP cost of testing revenue | $ | 36,309 | $ | 32,407 | $ | 69,615 | $ | 60,667 | |||||||
| Stock-based compensation expense | (959 | ) | (542 | ) | (2,058 | ) | (988 | ) | |||||||
| Acquisition related expenses | — | — | — | — | |||||||||||
| Other adjustments (1) | (338 | ) | — | (638 | ) | — | |||||||||
| Non-GAAP cost of testing revenue | $ | 35,012 | $ | 31,865 | $ | 66,919 | $ | 59,679 | |||||||
| GAAP cost of product revenue | 2,515 | 1,749 | 4,406 | 3,171 | |||||||||||
| Stock-based compensation expense | (1 | ) | (1 | ) | (1 | ) | (2 | ) | |||||||
| Acquisition related expenses | — | — | — | — | |||||||||||
| Other adjustments (1) | — | (32 | ) | 11 | (32 | ) | |||||||||
| Non-GAAP cost of product revenue | $ | 2,514 | $ | 1,716 | $ | 4,416 | $ | 3,137 | |||||||
| GAAP cost of biopharmaceutical and other revenue | 207 | 3,572 | 215 | 6,270 | |||||||||||
| Stock-based compensation expense | — | (65 | ) | — | (138 | ) | |||||||||
| Acquisition related expenses | — | — | — | — | |||||||||||
| Other adjustments (1) | — | — | — | — | |||||||||||
| Non-GAAP cost of biopharmaceutical and other revenue | $ | 207 | $ | 3,507 | $ | 215 | $ | 6,132 | |||||||
| Reconciliation of Non-GAAP Gross Margin: | |||||||||||||||
| GAAP Gross Profit | $ | 108,549 | $ | 89,769 | $ | 209,708 | $ | 169,277 | |||||||
| GAAP Gross Margin | 72.2 | % | 69.0 | % | 72.5 | % | 69.2 | % | |||||||
| Amortization of intangible assets | 2,741 | 2,667 | 5,448 | 5,252 | |||||||||||
| Stock-based compensation expense | 960 | 608 | 2,059 | 1,128 | |||||||||||
| Acquisition related expenses | — | — | — | — | |||||||||||
| Other adjustments (1) | 338 | 32 | 627 | 32 | |||||||||||
| Non-GAAP Gross Profit | $ | 112,588 | $ | 93,076 | $ | 217,842 | $ | 175,689 | |||||||
| Non-GAAP Gross Margin | 74.9 | % | 71.5 | % | 75.3 | % | 71.8 | % | |||||||
| 1. For the three months ended June 30, 2026, adjustments include the impact of Non-GAAP adjustments on IT/Facilities allocations ( | |||||||||||||||
| VERACYTE, INC. | |||||||||||||||
| RECONCILIATION OF U.S. GAAP to NON-GAAP FINANCIAL MEASURES | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (In thousands) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Reconciliation of Non-GAAP Operating Expenses: | |||||||||||||||
| GAAP research and development | $ | 29,442 | $ | 16,264 | $ | 56,540 | $ | 33,984 | |||||||
| Stock-based compensation expense | (2,917 | ) | (2,008 | ) | (5,597 | ) | (4,074 | ) | |||||||
| Acquisition related expenses (1) | — | — | — | — | |||||||||||
| Other adjustments (2) | (199 | ) | — | (476 | ) | — | |||||||||
| Non-GAAP research and development | $ | 26,326 | $ | 14,256 | $ | 50,467 | $ | 29,910 | |||||||
| GAAP sales and marketing | $ | 28,263 | $ | 25,316 | $ | 55,419 | $ | 49,770 | |||||||
| Stock-based compensation expense | (2,706 | ) | (2,198 | ) | (5,105 | ) | (4,156 | ) | |||||||
| Acquisition related expenses (1) | — | — | — | — | |||||||||||
| Other adjustments (2) | (48 | ) | — | (79 | ) | — | |||||||||
| Non-GAAP sales and marketing | $ | 25,509 | $ | 23,118 | $ | 50,235 | $ | 45,614 | |||||||
| GAAP general and administrative | $ | 27,443 | $ | 32,331 | $ | 51,123 | $ | 66,139 | |||||||
| Stock-based compensation expense | (7,503 | ) | (6,171 | ) | (14,086 | ) | (12,585 | ) | |||||||
| Acquisition related expenses (1) | 319 | 925 | 686 | (427 | ) | ||||||||||
| Other adjustments (2) | (2,127 | ) | (4,144 | ) | (3,822 | ) | (7,838 | ) | |||||||
| Non-GAAP general and administrative | $ | 18,132 | $ | 22,941 | $ | 33,901 | $ | 45,289 | |||||||
| GAAP total operating expenses | $ | 85,569 | $ | 95,037 | $ | 164,082 | $ | 171,641 | |||||||
| Amortization of intangible assets | (421 | ) | (621 | ) | (1,000 | ) | (1,243 | ) | |||||||
| Stock-based compensation expense | (13,126 | ) | (10,377 | ) | (24,788 | ) | (20,815 | ) | |||||||
| Acquisition related expenses (1) | 319 | 925 | 686 | (427 | ) | ||||||||||
| Other adjustments (2) | (2,374 | ) | (24,649 | ) | (4,377 | ) | (28,343 | ) | |||||||
| Non-GAAP total operating expenses | $ | 69,967 | $ | 60,315 | $ | 134,603 | $ | 120,813 | |||||||
| 1. Includes transaction-related expenses as well as post-combination compensation expenses. For the three months ended June 30, 2026, adjustments consist primarily of transaction-related expenses associated with contingent consideration related to the NanoString Technologies, Inc. ("NanoString") transaction ( | |||||||||||||||
| 2. For the three months ended June 30, 2026, adjustments consist primarily of expenses related to the assessment of licensing and strategic investments ( | |||||||||||||||
| VERACYTE, INC. | |||||||||||||||
| RECONCILIATION OF U.S. GAAP to NON-GAAP FINANCIAL MEASURES | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (In thousands) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Reconciliation of Adjusted EBITDA: | |||||||||||||||
| GAAP Net Income (Loss) | $ | 25,490 | $ | (980 | ) | $ | 54,197 | $ | 6,067 | ||||||
| GAAP Net Income (Loss) as a % of Revenue | 17.0 | % | (0.8 | %) | 18.7 | % | 2.5 | % | |||||||
| Amortization of intangible assets | 3,163 | 3,288 | 6,449 | 6,495 | |||||||||||
| Depreciation expense | 1,676 | 2,201 | 3,820 | 4,356 | |||||||||||
| Stock-based compensation expense | 14,086 | 10,985 | 26,847 | 21,943 | |||||||||||
| Acquisition related expenses (1) | (319 | ) | (925 | ) | (686 | ) | 427 | ||||||||
| Other expense (income), net (2) | (3,884 | ) | (3,170 | ) | (7,362 | ) | (6,146 | ) | |||||||
| Other adjustments (3) | 2,712 | 22,147 | 1,192 | 24,738 | |||||||||||
| Income tax expense (benefit) | 1,033 | 2,230 | 2,300 | 2,611 | |||||||||||
| Adjusted EBITDA | $ | 43,957 | $ | 35,776 | $ | 86,757 | $ | 60,491 | |||||||
| Adjusted EBITDA as a % of Revenue | 29.2 | % | 27.5 | % | 30.0 | % | 24.7 | % | |||||||
| Reconciliation of Non-GAAP Net Income (Loss) | |||||||||||||||
| GAAP Net Income (Loss) | $ | 25,490 | $ | (980 | ) | $ | 54,197 | $ | 6,067 | ||||||
| Amortization of intangible assets | 3,163 | 3,288 | 6,449 | 6,495 | |||||||||||
| Stock-based compensation expense | 14,086 | 10,985 | 26,847 | 21,943 | |||||||||||
| Acquisition related expenses (1) | (319 | ) | (925 | ) | (686 | ) | 427 | ||||||||
| Other adjustments (3) | 2,712 | 22,147 | 1,192 | 24,738 | |||||||||||
| Tax adjustments (4) | (802 | ) | 437 | (1,555 | ) | (242 | ) | ||||||||
| Non-GAAP Net Income | $ | 44,330 | $ | 34,952 | $ | 86,444 | $ | 59,428 | |||||||
| Reconciliation of Non-GAAP Earnings per Share | |||||||||||||||
| Diluted earnings per share, GAAP | $ | 0.31 | $ | (0.01 | ) | $ | 0.66 | $ | 0.08 | ||||||
| Amortization of intangible assets | 0.04 | 0.04 | 0.08 | 0.08 | |||||||||||
| Stock-based compensation expense | 0.17 | 0.14 | 0.33 | 0.27 | |||||||||||
| Acquisition related expenses (1) | — | (0.01 | ) | (0.01 | ) | 0.01 | |||||||||
| Other adjustments (3) | 0.03 | 0.28 | 0.01 | 0.31 | |||||||||||
| Tax adjustments (4) | (0.01 | ) | 0.01 | (0.02 | ) | — | |||||||||
| Rounding and impact of dilutive shares | — | (0.01 | ) | 0.01 | (0.01 | ) | |||||||||
| Diluted earnings per share, non-GAAP | $ | 0.54 | $ | 0.44 | $ | 1.06 | $ | 0.74 | |||||||
| Weighted average shares outstanding used in computing diluted earnings per share | |||||||||||||||
| Diluted, GAAP | 82,059,442 | 78,391,502 | 81,753,292 | 79,905,121 | |||||||||||
| Dilutive effect of equity awards (5) | — | 1,057,711 | — | — | |||||||||||
| Diluted, non-GAAP | 82,059,442 | 79,449,213 | 81,753,292 | 79,905,121 | |||||||||||
| 1. Includes transaction-related expenses as well as post-combination compensation expenses. For the three months ended June 30, 2026, adjustments consist primarily of transaction-related expenses associated with contingent consideration related to the NanoString transaction ( | |||||||||||||||
| 2. Includes interest income and income related to research tax credits. | |||||||||||||||
| 3. For the three months ended June 30, 2026, adjustments consist primarily of expenses related to the assessment of licensing and strategic investments ( | |||||||||||||||
| 4. Incremental non-GAAP tax expense reflects the tax impact of the non-GAAP adjustments listed. | |||||||||||||||
| 5. In those periods in which GAAP net (loss) income is negative and non-GAAP net (loss) income is positive, non-GAAP diluted weighted average shares outstanding includes potentially dilutive common shares from equity awards as determined using the treasury stock method. | |||||||||||||||
Investors:
Kelly Gura
investors@veracyte.com
Media:
Molly Cornbleet
media@veracyte.com
+1-650-351-8780
