Veracyte (VCYT) delivers 16% revenue growth and higher margins in 2025
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Veracyte reported strong fourth quarter and full-year 2025 results with double-digit growth and higher profitability. Q4 total revenue rose 19% to $140.6 million, with testing revenue up 21% to $135.8 million and Decipher and Afirma driving growth. Q4 GAAP net income reached $41.1 million, or 29.3% of revenue, and adjusted EBITDA was $42.3 million, or 30.1% of revenue, while operating cash flow was $52.6 million.
For 2025, total revenue increased 16% to $517.1 million and testing revenue grew 18% to $493.2 million. Full-year GAAP net income grew 175% to $66.4 million, with adjusted EBITDA up 55% to $142.5 million, or 27.6% of revenue, and operating cash flow of $136.3 million, ending the year with $412.9 million in cash, cash equivalents and short-term investments. Veracyte reiterated 2026 guidance for 10%–13% total revenue growth to $570–$582 million and expects adjusted EBITDA margin of approximately 25%.
Positive
- Profitability and cash flow surged in 2025. GAAP net income increased 175% to $66.4 million, adjusted EBITDA rose 55% to $142.5 million (27.6% margin), and operating cash flow reached $136.3 million, supporting a year-end cash, cash equivalents and short-term investment balance of $412.9 million.
- Strong double-digit growth in core testing business. 2025 testing revenue grew 18% to $493.2 million, with Decipher revenue up 27% to $310.7 million and Afirma revenue up 9% to $172.9 million, reinforcing momentum in the company’s key cancer diagnostics franchises.
Negative
- None.
Insights
Veracyte posted strong 2025 growth, major margin expansion, and solid 2026 guidance.
Veracyte delivered 2025 total revenue of
Profitability inflected meaningfully: GAAP net income rose 175% to
Management reiterated
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 25, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | Commission File Number | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices) | (Zip Code) | |||||||
Registrant’s telephone number, including area code: (650 ) 243-6300
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |||||
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934. | ||
Emerging growth company | ||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | ||
Item 2.02. Results of Operations and Financial Condition.
On February 25, 2026, Veracyte, Inc. issued a press release announcing its financial results for the quarter and year ended December 31, 2025. The full text of the press release is furnished as Exhibit 99.1 to this report.
The information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
| 99.1 | Press release issued by Veracyte, Inc. dated February 25, 2026. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: | February 25, 2026 | ||||||||||
VERACYTE, INC. | |||||||||||
By: | /s/ Rebecca Chambers | ||||||||||
Name: | Rebecca Chambers | ||||||||||
Title: | Chief Financial Officer | ||||||||||
| Principal Financial Officer | |||||||||||
Exhibit 99.1
Veracyte Announces Fourth Quarter and Full Year 2025 Financial Results
Grew fourth quarter total revenue to $140.6 million, an increase of 19%
Grew fourth quarter testing revenue to $135.8 million, an increase of 21%
Conference call and webcast today at 4:30 p.m. ET
SOUTH SAN FRANCISCO, Calif., February 25, 2026 --- Veracyte, Inc. (Nasdaq: VCYT), a leading cancer diagnostics company, today announced financial results for the fourth quarter and full year ended December 31, 2025.
“We delivered an exceptional finish to 2025, with strong double-digit growth across both Decipher and Afirma and more than 45,000 patients served with our core testing business in the quarter,” said Marc Stapley, Veracyte’s chief executive officer. “We are achieving this growth while maintaining best-in-class profitability, with more than $50 million of cash generated from operations in the quarter. Looking ahead, 2026 will be an exciting year as we launch Prosigna as an LDT and TrueMRD, expanding our reach to more patients across the continuum of care while also continuing to invest in clinical evidence that reinforces the value and utility of our portfolio.”
Key Fourth Quarter 2025 Financial Highlights
For the three-month period ended December 31, 2025, as compared to the same period in 2024:
•Increased total revenue by 19% to $140.6 million and testing revenue by 21% to $135.8 million.
•Increased total volume by 16% to 48,019 tests and testing volume by 16% to 45,516 tests.
•Grew Decipher revenue by 27% to $85.6 million and Afirma revenue by 16% to $47.9 million.
•Grew Decipher volume by 21% to approximately 27,200 tests and Afirma volume by 12% to approximately 18,250 tests.
•Recorded GAAP net income of $41.1 million, or 29.3% of revenue, and delivered adjusted EBITDA of $42.3 million, or 30.1% of revenue.
•Generated $52.6 million of cash from operations.
Key Full Year 2025 Financial Highlights
For the twelve-month period ended December 31, 2025, as compared to the same period in 2024:
•Increased total revenue by 16% to $517.1 million and testing revenue by 18% to $493.2 million.
•Increased total volume by 18% to 179,528 tests and testing volume by 19% to 169,714 tests.
•Grew Decipher revenue by 27% to $310.7 million and Afirma revenue by 9% to $172.9 million.
•Grew Decipher volume by 27% to approximately 102,000 tests and Afirma volume by 11% to approximately 67,700 tests.
•Recorded GAAP net income of $66.4 million, or 12.8% of revenue, and delivered adjusted EBITDA of $142.5 million, or 27.6% of revenue.
•Generated $136.3 million of cash from operations to end the year with $412.9 million of cash, cash equivalents, and short-term investments as of December 31, 2025.
Key Business Highlights
•Announced over 15 abstracts featuring Decipher Prostate and Decipher Bladder that will be presented at the ASCO GU meeting this week, including results for Decipher Bladder from the SURE-02, NURE-combo, and BLASST-01 trials.
•Highlighted the upcoming TrueMRD Muscle-Invasive Bladder Cancer (MIBC) test’s inclusion in the HCRN GU 20-444 response guided bladder-sparing trial, with data planned to be presented at ASCO GU.
•Completed the transition of all Afirma samples to the v2 transcriptome to improve the efficiency of the Afirma testing business and enable more patients to receive a result, while providing a platform for future product launches, such as Prosigna LDT.
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."
Fourth Quarter 2025 Financial Results
Total revenue for the fourth quarter of 2025 was $140.6 million, an increase of 19% compared to $118.6 million reported in the fourth quarter of 2024. Testing revenue was $135.8 million, an increase of 21% compared to $112.2 million in the fourth quarter of 2024, driven by growth in our Decipher Prostate and Afirma tests. Product revenue was $3.8 million, an increase of 27% compared to $3.0 million in the fourth quarter of 2024. Biopharmaceutical and other revenue was $1.0 million, a decrease compared to $3.5 million in the fourth quarter of 2024 given the restructuring and liquidation proceedings of Veracyte SAS.
Total gross margin for the fourth quarter of 2025 was 72.5%, compared to 66.4% in the fourth quarter of 2024. Non-GAAP gross margin was 75.1%, compared to 69.3% in the fourth quarter of 2024.
Operating expenses were $64.8 million for the fourth quarter of 2025. Non-GAAP operating expenses grew 12% to $65.1 million compared to $57.9 million in the fourth quarter of 2024.
Net income for the fourth quarter of 2025 was $41.1 million, an improvement of 705% compared to the fourth quarter of 2024, representing 29.3% of revenue compared to 4.3% in the same period in 2024. Diluted net earnings per common share was $0.51, an improvement of $0.45 compared to the fourth quarter of 2024. Non-GAAP diluted net earnings per common share was $0.53, an improvement of $0.17 compared to the fourth quarter of 2024. Net cash provided by operating activities in the fourth quarter of 2025 was $52.6 million, an improvement of $28.1 million compared to the same period in 2024.
Adjusted EBITDA for the fourth quarter of 2025 was $42.3 million, an improvement of 62% compared to the fourth quarter of 2024, representing 30.1% of revenue compared to 22.0% of revenue in the same period of 2024.
Full Year 2025 Financial Results
Total revenue for 2025 was $517.1 million, an increase of 16% compared to $445.8 million reported in 2024. Testing revenue was $493.2 million, an increase of 18% compared to $419.0 million in 2024, driven by growth in our Decipher Prostate and Afirma tests. Product revenue was $14.3 million, an increase of 5% compared to $13.7 million in 2024. Biopharmaceutical and other revenue was $9.7 million, a decrease compared to $13.2 million in 2024 given the restructuring and liquidation proceedings of Veracyte SAS.
Total gross margin for the full year 2025 was 70.1%, compared to 66.9% in 2024. Non-GAAP gross margin was 72.9%, compared to 70.0% in 2024.
Operating expenses were $304.8 million for the full year 2025. Non-GAAP operating expenses grew 7% to $244.6 million compared to $227.6 million in 2024.
Net income for the full year 2025 was $66.4 million, an improvement of 175% compared to 2024, representing 12.8% of revenue compared to 5.4% in 2024. Diluted net earnings per common share was $0.82, an improvement of $0.51 compared to 2024. Non-GAAP diluted net earnings per common share was $1.78, an improvement of $0.59 compared to 2024. Net cash provided by operating activities in 2025 was $136.3 million, an improvement of $61.2 million compared to 2024.
Adjusted EBITDA for the full year of 2025 was $142.5 million, an improvement of 55% compared to 2024, representing 27.6% of revenue compared to 20.6% of revenue in 2024.
2026 Financial Outlook
The company is reiterating 2026 total revenue guidance of 10% to 13% growth, or $570 million to $582 million, driven by testing revenue guidance of 14% to 16% growth, or $560 million to $570 million, excluding the contribution from new tests.
Further, adjusted EBITDA margin is expected to be approximately 25%.
The company is unable to provide a quantitative reconciliation of expected adjusted EBITDA margin to 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/motsphxv/. 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.
The conference call dial-in can be accessed by registering via the following link:
https://register-conf.media-server.com/register/BI4553e156b9684d869faee6cbab4cb045
About Veracyte
Veracyte (Nasdaq: VCYT) is a global diagnostics company whose vision is to transform cancer care for patients all over the world. We empower clinicians with the high-value insights they need to guide and assure patients at pivotal moments in the race to diagnose and treat cancer. Our Veracyte Diagnostics Platform delivers high-performing cancer tests that are fueled by broad genomic and clinical data, deep bioinformatic and AI capabilities, and a powerful evidence-generation engine, which ultimately drives durable reimbursement and guideline inclusion for our tests, along with new insights to support continued innovation and pipeline development. For more information, please visit www.veracyte.com or follow us 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 our tests and products, including upcoming product launches. 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 28, 2025, 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 or reasons why actual results might differ, 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 December 31 | Twelve Months Ended December 31 | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Testing revenue | $ | 135,826 | $ | 112,152 | $ | 493,154 | $ | 418,961 | |||||||||||||||
| Product revenue | 3,848 | 3,019 | 14,327 | 13,650 | |||||||||||||||||||
| Biopharmaceutical and other revenue | 962 | 3,461 | 9,664 | 13,153 | |||||||||||||||||||
| Total revenue | 140,636 | 118,632 | 517,145 | 445,764 | |||||||||||||||||||
| Cost of revenue: (1) | |||||||||||||||||||||||
| Cost of testing revenue | 33,118 | 31,645 | 127,562 | 114,573 | |||||||||||||||||||
| Cost of product revenue | 2,621 | 2,800 | 8,807 | 9,110 | |||||||||||||||||||
| Cost of biopharmaceutical and other revenue | 217 | 2,622 | 7,578 | 12,384 | |||||||||||||||||||
| Intangible asset amortization - cost of revenue | 2,707 | 2,811 | 10,666 | 11,552 | |||||||||||||||||||
| Total cost of revenue | 38,663 | 39,878 | 154,613 | 147,619 | |||||||||||||||||||
| Gross profit | 101,973 | 78,754 | 362,532 | 298,145 | |||||||||||||||||||
| Operating expenses: (1) | |||||||||||||||||||||||
| Research and development | 20,849 | 19,290 | 70,814 | 69,294 | |||||||||||||||||||
| Selling and marketing | 25,940 | 24,824 | 100,165 | 95,434 | |||||||||||||||||||
| General and administrative | 17,367 | 26,913 | 110,784 | 110,610 | |||||||||||||||||||
| Impairment of assets | — | 2,754 | 20,505 | 3,368 | |||||||||||||||||||
| Intangible asset amortization - operating expenses | 622 | 798 | 2,487 | 3,297 | |||||||||||||||||||
| Total operating expenses | 64,778 | 74,579 | 304,755 | 282,003 | |||||||||||||||||||
| Income from operations | 37,195 | 4,175 | 57,777 | 16,142 | |||||||||||||||||||
| Other income (loss), net | 3,439 | (732) | 10,424 | 9,602 | |||||||||||||||||||
| Income before income taxes | 40,634 | 3,443 | 68,201 | 25,744 | |||||||||||||||||||
| Income tax provision (benefit) | (515) | (1,670) | 1,848 | 1,606 | |||||||||||||||||||
| Net income | $ | 41,149 | $ | 5,113 | $ | 66,353 | $ | 24,138 | |||||||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Basic | $ | 0.52 | $ | 0.07 | $ | 0.84 | $ | 0.32 | |||||||||||||||
| Diluted | $ | 0.51 | $ | 0.06 | $ | 0.82 | $ | 0.31 | |||||||||||||||
| Shares used to compute earnings per common share: | |||||||||||||||||||||||
| Basic | 79,178,087 | 77,608,924 | 78,584,291 | 76,484,759 | |||||||||||||||||||
| Diluted | 81,387,089 | 79,905,412 | 80,573,140 | 78,163,217 | |||||||||||||||||||
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 December 31 | Twelve Months Ended December 31 | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Cost of revenue | $ | 618 | $ | 641 | $ | 2,286 | $ | 2,319 | |||||||||||||||
| Research and development | 1,895 | 1,896 | 7,919 | 7,511 | |||||||||||||||||||
| Selling and marketing | 2,060 | 1,872 | 8,317 | 6,897 | |||||||||||||||||||
| General and administrative | 6,328 | 5,220 | 25,079 | 19,522 | |||||||||||||||||||
| Total stock-based compensation expense | $ | 10,901 | $ | 9,629 | $ | 43,601 | $ | 36,249 | |||||||||||||||
| VERACYTE, INC. | |||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Three Months Ended December 31 | Twelve Months Ended December 31 | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net income | $ | 41,149 | $ | 5,113 | $ | 66,353 | $ | 24,138 | |||||||||||||||
| Other comprehensive income (loss): | |||||||||||||||||||||||
| Change in currency translation adjustments | 8 | (14,808) | 19,583 | (12,072) | |||||||||||||||||||
| Release of accumulated translation adjustment | — | — | 8,295 | — | |||||||||||||||||||
| Other comprehensive income (loss) | 8 | (14,808) | 27,878 | (12,072) | |||||||||||||||||||
| Net comprehensive income (loss) | $ | 41,157 | $ | (9,695) | $ | 94,231 | $ | 12,066 | |||||||||||||||
| VERACYTE, INC. | |||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
| (In thousands) | |||||||||||
| December 31, | December 31, | ||||||||||
| 2025 | 2024 | ||||||||||
| (Unaudited) | (See Note 1) | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 362,578 | $ | 239,087 | |||||||
| Short-term investments | 50,311 | 50,354 | |||||||||
| Accounts receivable | 44,660 | 46,525 | |||||||||
| Supplies and inventory | 20,546 | 21,750 | |||||||||
| Prepaid expenses and other current assets | 10,281 | 14,551 | |||||||||
Total current assets | 488,376 | 372,267 | |||||||||
| Property, plant and equipment, net | 22,192 | 22,953 | |||||||||
| Right-of-use assets, operating leases | 36,599 | 48,189 | |||||||||
| Intangible assets, net | 89,148 | 102,301 | |||||||||
| Goodwill | 767,154 | 745,800 | |||||||||
| Restricted cash | 1,648 | 1,544 | |||||||||
| Other assets | 902 | 6,981 | |||||||||
| Total assets | $ | 1,406,019 | $ | 1,300,035 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 4,593 | $ | 8,634 | |||||||
| Accrued liabilities | 48,801 | 43,826 | |||||||||
| Current portion of deferred revenue | 1,160 | 1,673 | |||||||||
| Current portion of acquisition-related contingent consideration | 1,332 | 16,981 | |||||||||
| Current portion of operating lease liabilities | 4,051 | 7,500 | |||||||||
| Current portion of other liabilities | — | 19 | |||||||||
Total current liabilities | 59,937 | 78,633 | |||||||||
| Deferred tax liability | 646 | 1,227 | |||||||||
| Acquisition-related contingent consideration, net of current portion | 257 | 561 | |||||||||
| Operating lease liabilities, net of current portion | 35,603 | 43,237 | |||||||||
| Other liabilities | — | 411 | |||||||||
Total liabilities | 96,443 | 124,069 | |||||||||
| Total stockholders' equity | 1,309,576 | 1,175,966 | |||||||||
| Total liabilities and stockholders’ equity | $ | 1,406,019 | $ | 1,300,035 | |||||||
| 1. The condensed consolidated balance sheet at December 31, 2024 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, 2024, filed with the Securities and Exchange Commission on February 28, 2025. | |||||||||||
| VERACYTE, INC. | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| (Unaudited) | |||||||||||
| (In thousands) | |||||||||||
| Twelve Months Ended December 31 | |||||||||||
| 2025 | 2024 | ||||||||||
| Operating activities | |||||||||||
| Net income | $ | 66,353 | $ | 24,138 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 21,415 | 23,459 | |||||||||
| Loss on disposal of property, plant and equipment | 15 | 202 | |||||||||
| Stock-based compensation | 43,601 | 36,249 | |||||||||
| Deferred income taxes | (581) | (233) | |||||||||
| Non-cash lease expense | 2,991 | 4,955 | |||||||||
| Revaluation of acquisition-related contingent consideration | (15,295) | 2,167 | |||||||||
| Amortization of discount on short-term investments | (3,270) | (354) | |||||||||
| Impairment loss | 20,505 | 3,368 | |||||||||
| Non-cash loss on deconsolidation of subsidiary | 6,708 | — | |||||||||
| Effect of foreign currency on operations | (3,834) | 2,110 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | (708) | (6,405) | |||||||||
| Supplies and inventory | (2,861) | (5,871) | |||||||||
| Prepaid expenses and other current assets | (2,054) | (1,296) | |||||||||
| Other assets | 525 | (1,222) | |||||||||
| Operating lease liabilities | (2,480) | (5,407) | |||||||||
| Accounts payable | (1,039) | (4,305) | |||||||||
| Accrued liabilities and deferred revenue | 6,316 | 3,541 | |||||||||
| Net cash provided by operating activities | 136,307 | 75,096 | |||||||||
| Investing activities | |||||||||||
| Purchase of short-term investments | (149,998) | (50,000) | |||||||||
| Proceeds from maturity of short-term investments | 153,311 | — | |||||||||
| Loss on deconsolidation of subsidiary - cash | (2,845) | — | |||||||||
| Acquisition of C2i, net of cash acquired | — | 5,012 | |||||||||
| Purchases of property, plant and equipment | (9,677) | (11,287) | |||||||||
| Net cash used in investing activities | (9,209) | (56,275) | |||||||||
| Financing activities | |||||||||||
| Payment of contingent consideration for acquisition | — | (4,500) | |||||||||
| Payment of taxes on vested restricted stock units | (18,304) | (10,589) | |||||||||
| Proceeds from the exercise of common stock options and employee stock purchases | 14,082 | 19,993 | |||||||||
| Net cash (used in) provided by financing activities | (4,222) | 4,904 | |||||||||
| Increase in cash, cash equivalents and restricted cash | 122,876 | 23,725 | |||||||||
| Effect of foreign currency on cash, cash equivalents and restricted cash | 719 | (424) | |||||||||
| Net increase in cash, cash equivalents and restricted cash | 123,595 | 23,301 | |||||||||
| Cash, cash equivalents and restricted cash at beginning of year | 240,631 | 217,330 | |||||||||
| Cash, cash equivalents and restricted cash at end of year | $ | 364,226 | $ | 240,631 | |||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||||||||||
| (Unaudited) | |||||||||||
| (In thousands) | |||||||||||
| December 31, | December 31, | ||||||||||
| 2025 | 2024 | ||||||||||
| Cash and cash equivalents | $ | 362,578 | $ | 239,087 | |||||||
| Restricted cash | 1,648 | 1,544 | |||||||||
| Total cash, cash equivalents and restricted cash | $ | 364,226 | $ | 240,631 | |||||||
| VERACYTE, INC. | |||||||||||||||||||||||
| RECONCILIATION OF U.S. GAAP to NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Three Months Ended December 31 | Twelve Months Ended December 31 | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Reconciliation of Non-GAAP Cost of Revenue: | |||||||||||||||||||||||
| GAAP cost of testing revenue | $ | 33,118 | $ | 31,645 | $ | 127,562 | $ | 114,573 | |||||||||||||||
| Stock-based compensation expense | (616) | (562) | (2,159) | (1,973) | |||||||||||||||||||
| Acquisition related expenses (1) | — | — | — | (60) | |||||||||||||||||||
| Other adjustments (2) | — | — | — | (6) | |||||||||||||||||||
| Non-GAAP cost of testing revenue | $ | 32,502 | $ | 31,083 | $ | 125,403 | $ | 112,534 | |||||||||||||||
| GAAP cost of product revenue | $ | 2,621 | $ | 2,800 | $ | 8,807 | $ | 9,110 | |||||||||||||||
| Stock-based compensation expense | — | (1) | (2) | (4) | |||||||||||||||||||
| Acquisition related expenses (1) | — | — | — | — | |||||||||||||||||||
| Other adjustments (2) | (281) | — | (1,731) | — | |||||||||||||||||||
| Non-GAAP cost of product revenue | $ | 2,340 | $ | 2,799 | $ | 7,074 | $ | 9,106 | |||||||||||||||
| GAAP cost of biopharmaceutical and other revenue | $ | 217 | $ | 2,622 | $ | 7,578 | $ | 12,384 | |||||||||||||||
| Stock-based compensation expense | (2) | (78) | (125) | (342) | |||||||||||||||||||
| Acquisition related expenses (1) | — | — | — | — | |||||||||||||||||||
| Other adjustments (2) | — | — | — | — | |||||||||||||||||||
| Non-GAAP cost of biopharmaceutical and other revenue | $ | 215 | $ | 2,544 | $ | 7,453 | $ | 12,042 | |||||||||||||||
| Reconciliation of Non-GAAP Gross Margin: | |||||||||||||||||||||||
| GAAP Gross Profit | $ | 101,973 | $ | 78,754 | $ | 362,532 | $ | 298,145 | |||||||||||||||
| GAAP Gross Margin | 72.5 | % | 66.4 | % | 70.1 | % | 66.9 | % | |||||||||||||||
| Amortization of intangible assets | 2,707 | 2,811 | 10,666 | 11,552 | |||||||||||||||||||
| Stock-based compensation expense | 618 | 641 | 2,286 | 2,319 | |||||||||||||||||||
| Acquisition related expenses (1) | — | — | — | 60 | |||||||||||||||||||
| Other adjustments (2) | 281 | — | 1,731 | 6 | |||||||||||||||||||
| Non-GAAP Gross Profit | $ | 105,579 | $ | 82,206 | $ | 377,215 | $ | 312,082 | |||||||||||||||
| Non-GAAP Gross Margin | 75.1 | % | 69.3 | % | 72.9 | % | 70.0 | % | |||||||||||||||
| 1.Includes transaction-related expenses and post-combination compensation expenses. For the twelve months ended December 31, 2024, adjustments consist primarily of transaction-related expenses associated with the acquisition of C2i Genomics Ltd. (“C2i Genomics”). | |||||||||||||||||||||||
| 2.For the three months ended December 31, 2025, adjustments primarily include expense related to the restructuring of Veracyte SAS ($0.3 million). For the twelve months ended December 31, 2025, adjustments include additional expenses related to the restructuring and liquidation proceedings of Veracyte SAS. For the twelve months ended December 31, 2024, adjustments primarily include expense related to restructuring costs associated with portfolio prioritization. | |||||||||||||||||||||||
| VERACYTE, INC. | |||||||||||||||||||||||
| RECONCILIATION OF U.S. GAAP to NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Three Months Ended December 31 | Twelve Months Ended December 31 | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Reconciliation of Non-GAAP Operating Expenses: | |||||||||||||||||||||||
| GAAP research and development | $ | 20,849 | $ | 19,290 | $ | 70,814 | $ | 69,294 | |||||||||||||||
| Stock-based compensation expense | (1,895) | (1,896) | (7,919) | (7,511) | |||||||||||||||||||
| Acquisition related expenses (1) | — | — | — | 62 | |||||||||||||||||||
| Other adjustments (2) | — | — | — | (271) | |||||||||||||||||||
| Non-GAAP research and development | $ | 18,954 | $ | 17,394 | $ | 62,895 | $ | 61,574 | |||||||||||||||
| GAAP sales and marketing | $ | 25,940 | $ | 24,824 | $ | 100,165 | $ | 95,434 | |||||||||||||||
| Stock-based compensation expense | (2,060) | (1,872) | (8,317) | (6,897) | |||||||||||||||||||
| Acquisition related expenses (1) | — | — | — | (124) | |||||||||||||||||||
| Other adjustments (2) | — | — | — | (1,087) | |||||||||||||||||||
| Non-GAAP sales and marketing | $ | 23,880 | $ | 22,952 | $ | 91,848 | $ | 87,326 | |||||||||||||||
| GAAP general and administrative | $ | 17,367 | $ | 26,913 | $ | 110,784 | $ | 110,610 | |||||||||||||||
| Stock-based compensation expense | (6,328) | (5,220) | (25,079) | (19,522) | |||||||||||||||||||
| Acquisition related expenses (1) | 12,564 | (928) | 11,971 | (5,862) | |||||||||||||||||||
| Other adjustments (2) | (1,309) | (3,196) | (7,839) | (6,564) | |||||||||||||||||||
| Non-GAAP general and administrative | $ | 22,294 | $ | 17,569 | $ | 89,837 | $ | 78,662 | |||||||||||||||
| GAAP total operating expenses | $ | 64,778 | $ | 74,579 | $ | 304,755 | $ | 282,003 | |||||||||||||||
| Amortization of intangible assets | (622) | (798) | (2,487) | (3,297) | |||||||||||||||||||
| Stock-based compensation expense | (10,283) | (8,988) | (41,315) | (33,930) | |||||||||||||||||||
| Acquisition related expenses (1) | 12,564 | (961) | 11,971 | (6,571) | |||||||||||||||||||
| Other adjustments (2) | (1,309) | (5,917) | (28,344) | (10,643) | |||||||||||||||||||
| Non-GAAP total operating expenses | $ | 65,128 | $ | 57,915 | $ | 244,580 | $ | 227,562 | |||||||||||||||
| 1.Includes transaction-related expenses and post-combination compensation expenses. For the three months ended December 31, 2025, adjustments consist primarily of transaction-related expenses associated with contingent consideration related to the NanoString Technologies, Inc. ("NanoString") transaction ($0.7 million) and contingent consideration associated with the C2i Genomics acquisition ($11.9 million). For the three months ended December 31, 2024, adjustments consist primarily of transaction-related expenses associated with the acquisition of C2i Genomics ($1.0 million). For the twelve months ended December 31, 2025, adjustments consist primarily of transaction-related expenses associated with the acquisition of C2i Genomics ($10.3 million) and NanoString contingent consideration ($1.7 million). For the twelve months ended December 31, 2024, adjustments consist primarily of transaction-related expenses associated with the acquisition of C2i Genomics. | |||||||||||||||||||||||
| 2.For the three months ended December 31, 2025, adjustments primarily include expenses related to the restructuring and liquidation proceedings of Veracyte SAS ($1.1 million) and other legal proceedings ($0.2 million). For the three months ended December 31, 2024, adjustments primarily include expense related to Veracyte SAS site investment review ($3.2 million) and expense related to the impairment charge associated with HalioDx ($2.7 million). For the twelve months ended December 31, 2025, adjustments include additional expenses related to Veracyte SAS impairment loss ($20.5 million), the restructuring and liquidation proceedings of Veracyte SAS ($8.7 million), and other legal proceedings ($0.8 million), partially offset by adjustments related to vendor legal settlement ($2.8 million) and restructuring costs ($0.1 million). For the twelve months ended December 31, 2024, adjustments primarily include expense related to restructuring costs associated with a reduction in our Biopharmaceutical and Other segment and with portfolio prioritization, expense related to Veracyte SAS site investment review and expense related to the impairment charge associated with HalioDx. | |||||||||||||||||||||||
| VERACYTE, INC. | |||||||||||||||||||||||
| RECONCILIATION OF U.S. GAAP to NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Three Months Ended December 31 | Twelve Months Ended December 31 | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Reconciliation of Adjusted EBITDA: | |||||||||||||||||||||||
| GAAP Net Income (Loss) | $ | 41,149 | $ | 5,113 | $ | 66,353 | $ | 24,138 | |||||||||||||||
| GAAP Net Income (Loss) as a % of Revenue | 29.3 | % | 4.3 | % | 12.8 | % | 5.4 | % | |||||||||||||||
| Amortization of intangible assets | 3,329 | 3,609 | 13,153 | 14,849 | |||||||||||||||||||
| Depreciation expense | 1,968 | 2,643 | 8,262 | 8,610 | |||||||||||||||||||
| Stock-based compensation expense | 10,901 | 9,629 | 43,601 | 36,249 | |||||||||||||||||||
| Acquisition related expenses (1) | (12,564) | 961 | (11,971) | 6,631 | |||||||||||||||||||
| Other expense (income), net (2) | (3,546) | (1,967) | (13,176) | (11,647) | |||||||||||||||||||
| Other adjustments (3) | 1,590 | 7,807 | 34,466 | 11,450 | |||||||||||||||||||
| Income tax expense (benefit) | (515) | (1,670) | 1,848 | 1,606 | |||||||||||||||||||
| Adjusted EBITDA | $ | 42,312 | $ | 26,125 | $ | 142,536 | $ | 91,886 | |||||||||||||||
| Adjusted EBITDA as a % of Revenue | 30.1 | % | 22.0 | % | 27.6 | % | 20.6 | % | |||||||||||||||
| Reconciliation of Non-GAAP Net Income (Loss) | |||||||||||||||||||||||
| GAAP Net Income (Loss) | $ | 41,149 | $ | 5,113 | $ | 66,353 | $ | 24,138 | |||||||||||||||
| Amortization of intangible assets | 3,329 | 3,609 | 13,153 | 14,849 | |||||||||||||||||||
| Stock-based compensation expense | 10,901 | 9,629 | 43,601 | 36,249 | |||||||||||||||||||
| Acquisition related expenses (1) | (12,564) | 961 | (11,971) | 6,631 | |||||||||||||||||||
| Other adjustments (3) | 1,590 | 7,807 | 34,466 | 11,450 | |||||||||||||||||||
| Tax adjustments (4) | (1,590) | 1,830 | (2,397) | (349) | |||||||||||||||||||
| Non-GAAP Net Income | $ | 42,815 | $ | 28,949 | $ | 143,205 | $ | 92,968 | |||||||||||||||
| Reconciliation of Non-GAAP Earnings per Share | |||||||||||||||||||||||
| Diluted earnings per share, GAAP | $ | 0.51 | $ | 0.06 | $ | 0.82 | $ | 0.31 | |||||||||||||||
| Amortization of intangible assets | 0.04 | 0.05 | 0.16 | 0.19 | |||||||||||||||||||
| Stock-based compensation expense | 0.13 | 0.12 | 0.54 | 0.46 | |||||||||||||||||||
| Acquisition related expenses (1) | (0.15) | 0.01 | (0.15) | 0.08 | |||||||||||||||||||
| Other adjustments (3) | 0.02 | 0.10 | 0.43 | 0.15 | |||||||||||||||||||
| Tax adjustments (4) | (0.02) | 0.02 | (0.03) | — | |||||||||||||||||||
| Rounding and impact of dilutive shares | — | — | 0.01 | — | |||||||||||||||||||
| Diluted earnings per share, non-GAAP | $ | 0.53 | $ | 0.36 | $ | 1.78 | $ | 1.19 | |||||||||||||||
| Weighted average shares outstanding used in computing diluted earnings per share | |||||||||||||||||||||||
| Diluted, GAAP | 81,387,089 | 79,905,412 | 80,573,140 | 78,163,217 | |||||||||||||||||||
| Dilutive effect of equity awards (5) | — | — | — | — | |||||||||||||||||||
| Diluted, non-GAAP | 81,387,089 | 79,905,412 | 80,573,140 | 78,163,217 | |||||||||||||||||||
| 1.Includes transaction-related expenses and post-combination compensation expenses. For the three months ended December 31, 2025, adjustments consist primarily of transaction-related expenses associated with contingent consideration related to NanoString ($0.7 million) and contingent consideration associated with the acquisition of C2i Genomics ($11.9 million). For the three months ended December 31, 2024, adjustments consist primarily of transaction-related expenses associated with the acquisition of C2i Genomics ($1.0 million). For the twelve months ended December 31, 2025, adjustments consist primarily of additional transaction-related expenses associated with the NanoString contingent consideration ($1.0 million) partially offset by expenses associated with the acquisition of C2i Genomics ($1.6 million). For the twelve months ended December 31, 2024, adjustments consist primarily of transaction-related expenses associated with the acquisition of C2i Genomics. | |||||||||||||||||||||||
| 2.Includes interest income and income related to research tax credits. | |||||||||||||||||||||||
| 3.For the three months ended December 31, 2025, adjustments primarily include expenses related to the restructuring and liquidation proceedings of Veracyte SAS ($1.4 million) and other legal proceedings ($0.2 million). For the three months ended December 31, 2024, adjustments primarily include the exclusion of unrealized losses associated with foreign exchange impacts on stock-based compensation and intercompany loans ($1.9 million), expense related to Veracyte SAS site investment review ($3.2 million) and expense related to the impairment charge associated with HalioDx ($2.7 million). For the twelve months ended December 31, 2025, adjustments primarily include additional expense related to Veracyte SAS impairment loss ($20.5 million), Veracyte SAS investment review ($7.7 million), the exclusion of unrealized loss related to Veracyte SAS deconsolidation ($6.7 million), the restructuring and liquidation proceedings of Veracyte SAS ($2.4 million), and other legal proceedings ($0.8 million), partially offset by adjustments related to restructuring costs ($0.1 million), vendor legal settlement ($2.8 million), and the exclusion of unrealized gains associated with foreign exchange impacts on stock-based compensation and intercompany loans ($2.3 million). For the twelve months ended December 31, 2024, adjustments primarily include expense related to restructuring costs associated with a reduction in our Biopharmaceutical and Other segment and with portfolio prioritization, expense related to Veracyte SAS site investment review, expense related to the impairment charge associated with HalioDx and the exclusion of unrealized losses associated with foreign exchange impacts on stock-based compensation and intercompany loans. | |||||||||||||||||||||||
| 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:
Shayla Gorman
investors@veracyte.com
Media:
Molly Cornbleet
media@veracyte.com
FAQ
How did Veracyte (VCYT) perform financially in the fourth quarter of 2025?
Veracyte’s Q4 2025 results were strong, with revenue and profits sharply higher year over year. Total revenue rose 19% to $140.6 million, testing revenue grew 21% to $135.8 million, GAAP net income reached $41.1 million, and adjusted EBITDA was $42.3 million, or 30.1% of revenue.
What were Veracyte’s full-year 2025 revenue and profit results?
For 2025, Veracyte delivered solid double-digit revenue growth and much higher earnings. Total revenue increased 16% to $517.1 million, testing revenue grew 18% to $493.2 million, GAAP net income rose 175% to $66.4 million, and adjusted EBITDA was $142.5 million, representing 27.6% of revenue.
What guidance did Veracyte (VCYT) provide for its 2026 financial outlook?
Veracyte reiterated 2026 guidance for continued growth and strong margins. The company expects total revenue to increase 10%–13% to $570–$582 million, driven by testing revenue growth of 14%–16% to $560–$570 million, and targets an adjusted EBITDA margin of approximately 25% for the year.
How strong is Veracyte’s cash position after its 2025 results?
Veracyte ended 2025 with a robust cash and investment balance. Net cash provided by operating activities was $136.3 million, and the company closed the year with $412.9 million in cash, cash equivalents and short-term investments, enhancing financial flexibility for investment and operations.
Which product lines drove Veracyte’s testing revenue growth in 2025?
Decipher and Afirma were key drivers of Veracyte’s 2025 testing revenue. Decipher revenue increased 27% to $310.7 million and Afirma revenue rose 9% to $172.9 million, supported by higher test volumes across both portfolios during the year.
How did Veracyte’s margins change in 2025 compared with 2024?
Veracyte achieved notable margin expansion in 2025. GAAP gross margin improved to 70.1% from 66.9%, non-GAAP gross margin rose to 72.9% from 70.0%, and adjusted EBITDA margin increased to 27.6% of revenue from 20.6% the prior year.
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Dec 17, 2025
[Form 4] VERACYTE, INC. Insider Trading Activity
VCYT Stock Data
2.82B
78.72M
Diagnostics & Research
Services-medical Laboratories
United States
SOUTH SAN FRANCISCO