Veracyte (Nasdaq: VCYT) lifts 2026 outlook after strong Q2 results
Rhea-AI Filing Summary
Veracyte, Inc. reported total revenue of $150.3 million for the quarter ended June 30, 2026, up 15% from $130.2 million a year earlier. Testing revenue grew 19% to $145.7 million, driven by Decipher prostate testing revenue of $91.9 million and Afirma revenue of $51.2 million. Test volumes increased 13% to 50,967, including 17% growth in Decipher tests to about 29,700 and 10% growth in Afirma tests to about 18,600.
GAAP net income was $25.5 million, a 17.0% margin and an improvement from a prior-year loss, with diluted EPS of $0.31. Non-GAAP gross margin rose to 75% and adjusted EBITDA reached $44.0 million, or 29.2% of revenue. The company generated $45.8 million of operating cash flow and ended the quarter with $485.2 million in cash, cash equivalents and short-term investments.
Management highlighted launches of the Prosigna Breast Test and the TrueMRD Monitoring Test for muscle-invasive bladder cancer, along with Medicare coverage for TrueMRD. Veracyte raised its 2026 total revenue outlook to $590–$596 million and testing revenue guidance to $576–$582 million, and continues to expect adjusted EBITDA margin above 26%.
Positive
- Total revenue rose 15% year-over-year to $150.3 million in Q2 2026, with testing revenue up 19% to $145.7 million and growth in both Decipher and Afirma franchises.
- Profitability improved, as GAAP net income reached $25.5 million (17.0% margin) versus a prior-year loss, and non-GAAP diluted EPS increased to $0.54 with adjusted EBITDA of $44.0 million at a 29.2% margin.
- Outlook strengthened with 2026 total revenue guidance raised to $590–$596 million (14–15% growth) and testing revenue guidance to $576–$582 million (17–18% growth), while maintaining an expected adjusted EBITDA margin above 26%.
Negative
- None.
Filing Explained
This Form 8-K reports Veracyte’s second-quarter results and furnishes the press release as Exhibit 99.1; the results are not treated as filed under Section 18 or incorporated into other filings unless expressly referenced.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 Total Revenue: $150.3 million
Q2 2026 Testing Revenue: $145.7 million
Q2 2026 GAAP Net Income: $25.5 million
+5 more
8 metrics
Q2 2026 Total Revenue
$150.3 million
Quarter ended June 30, 2026; up 15% from $130.2 million in Q2 2025
Q2 2026 Testing Revenue
$145.7 million
Quarter ended June 30, 2026; up 19% from $122.3 million in Q2 2025
Q2 2026 GAAP Net Income
$25.5 million
Quarter ended June 30, 2026; 17.0% of revenue and improved from a prior-year net loss
Q2 2026 Adjusted EBITDA
$44.0 million
Quarter ended June 30, 2026; 29.2% of revenue and up 23% year-over-year
Q2 2026 Operating Cash Flow
$45.8 million
Cash generated from operations in the quarter, contributing to strong liquidity
Cash and Investments Balance
$485.2 million
Cash, cash equivalents and short-term investments as of June 30, 2026
2026 Revenue Guidance
$590–$596 million
Raised full-year 2026 total revenue outlook, implying 14–15% growth
2026 Testing Revenue Guidance
$576–$582 million
Raised full-year 2026 testing revenue outlook, implying 17–18% growth
Key Terms
adjusted EBITDA, non-GAAP gross margin, Medicare coverage, acquisition-related contingent consideration, +1 more
5 terms
adjusted EBITDA financial
"Adjusted EBITDA for the second quarter of 2026 was $44.0 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
non-GAAP gross margin financial
"Non-GAAP gross margin was 75%, compared to 72% in the second quarter of 2025"
Non-GAAP gross margin is a measure of a company's profitability that shows how much money it makes from sales after subtracting the direct costs of producing its products or services, but without applying certain accounting adjustments required by standard rules. It helps investors understand the company's core earning ability by excluding items like one-time expenses or accounting changes. This metric provides a clearer picture of ongoing business performance beyond official financial reports.
Medicare coverage regulatory
"Secured Medicare coverage for the TrueMRD Monitoring Test"
Medicare coverage is the set of health insurance benefits provided by the U.S. federal Medicare program that pays for hospital care, doctor services, prescription drugs and certain medical supplies for eligible beneficiaries. Investors pay attention because changes in what Medicare will cover, how much it reimburses, or who qualifies can materially affect revenue and pricing for hospitals, drugmakers, medical device manufacturers and insurers—like rewriting the rulebook for a very large, steady customer.
whole-genome sequencing-based technical
"the first Medicare coverage decision for the whole-genome sequencing-based TrueMRD platform"
Earnings Snapshot
Total revenue: $150.3 million · Guidance included
Quarter ended June 30, 2026
Total revenue
$150.3 million
up 15% from $130.2 million in Q2 2025
Testing revenue
$145.7 million
up 19% from $122.3 million in Q2 2025
GAAP net income
$25.5 million
improved from net loss of $0.98 million in Q2 2025
Diluted EPS, GAAP
$0.31
improved by $0.32 from $(0.01) in Q2 2025
Adjusted EBITDA
$44.0 million
up 23% year-over-year and 29.2% of revenue
Guidance
Veracyte raised 2026 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 greater than 26%.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Veracyte (VCYT) perform financially in Q2 2026?
Veracyte delivered Q2 2026 revenue of $150.3 million, up 15% year-over-year, and generated GAAP net income of $25.5 million. Diluted EPS was $0.31, while adjusted EBITDA reached $44.0 million, representing 29.2% of revenue.
What drove Veracyte (VCYT) revenue growth in Q2 2026?
Growth was led by testing, with testing revenue up 19% to $145.7 million. Decipher prostate testing revenue rose 20% to $91.9 million and Afirma revenue grew 18% to $51.2 million, supported by higher test volumes across both franchises.
What is Veracyte (VCYT) 2026 revenue and EBITDA guidance?
Veracyte raised 2026 total revenue guidance to $590–$596 million, implying 14–15% growth, and testing revenue guidance to $576–$582 million, or 17–18% growth. The company continues to expect adjusted EBITDA margin above 26% for 2026.
How strong is Veracyte (VCYT) cash position after Q2 2026?
Veracyte generated $45.8 million of cash from operations in Q2 and ended the quarter with $485.2 million in cash, cash equivalents and short-term investments, providing substantial liquidity to support ongoing operations and product development.
What new products and coverage did Veracyte (VCYT) add in Q2 2026?
The company launched the Prosigna Breast Test in the U.S. and the TrueMRD Monitoring Test for muscle-invasive bladder cancer, and secured Medicare coverage for the TrueMRD Monitoring Test, the first coverage decision for its whole-genome sequencing-based TrueMRD platform.
What were Veracyte (VCYT) test volumes in Q2 2026?
Total test volume grew to 50,967 tests, up 13% year-over-year, with testing volume of 48,389 tests. Decipher volume increased 17% to approximately 29,700 tests and Afirma volume grew 10% to approximately 18,600 tests during the quarter.
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): July 30, 2026
(Exact name of registrant as specified in its charter)
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(Address of principal executive offices) | (Zip Code) | |||||||
Registrant’s telephone number, including area code: (650 ) 243-6300
N/A
(Former name or former address, if changed since last report.)
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 July 30, 2026, Veracyte, Inc. issued a press release announcing its financial results for the quarter ended June 30, 2026. 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 July 30, 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: | July 30, 2026 | ||||||||||
VERACYTE, INC. | |||||||||||
By: | /s/ Rebecca Chambers | ||||||||||
Name: | Rebecca Chambers | ||||||||||
Title: | Chief Financial Officer | ||||||||||
| Principal Financial Officer | |||||||||||
Exhibit 99.1
Veracyte Announces Second Quarter 2026 Financial Results
Grew total revenue to $150.3 million and testing revenue to $145.7 million, representing increases of 15% and 19% year-over-year, respectively
Conference call and webcast today at 4:30 p.m. ET
SOUTH SAN FRANCISCO, Calif., July 30, 2026 --- 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 by 19% to $145.7 million, driven by Decipher growth of 20% to $91.9 million and Afirma growth of 18% to $51.2 million.
•Increased total volume by 13% to 50,967 tests and testing volume by 14% to 48,389 tests, driven by Decipher growth of 17% to approximately 29,700 tests and Afirma growth of 10% to approximately 18,600 tests.
•Recorded GAAP net income of $25.5 million, or 17.0% of revenue, and delivered adjusted EBITDA of $44.0 million, or 29.2% 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 $150.3 million, an increase of 15% compared to $130.2 million reported in the second quarter of 2025. Testing revenue was $145.7 million, an increase of 19% compared to $122.3 million in the second quarter of 2025, driven by growth in our Decipher Prostate and Afirma tests. Product revenue was $3.9 million, an increase of 7% compared to $3.6 million in the second quarter of 2025. Biopharmaceutical and other revenue was $0.8 million, an expected decrease compared to $4.3 million in the second quarter of 2025 given the restructuring and liquidation proceedings of Veracyte SAS.
Total gross margin for the second quarter of 2026 was 72%, compared to 69% in the second quarter of 2025. Non-GAAP gross margin was 75%, compared to 72% in the second quarter of 2025.
Operating expenses were $85.6 million for the second quarter of 2026 compared to $95.0 million in the second quarter of 2025. Non-GAAP operating expenses grew 16% to $70.0 million compared to $60.3 million in the second quarter of 2025.
Net income for the second quarter of 2026 was $25.5 million, an increase of $26.5 million compared to the second quarter of 2025. Diluted net earnings per common share was $0.31, an improvement of $0.32 compared to the second quarter of 2025. Non-GAAP diluted net earnings per common share was $0.54, an increase of $0.10 compared to the second quarter of 2025. Net cash provided by operating activities in the first six months of 2026 was $81.0 million, an improvement of $42.1 million compared to the same period in 2025.
Adjusted EBITDA for the second quarter of 2026 was $44.0 million, an improvement of 23% compared to the second quarter of 2025, representing 29.2% of revenue compared to 27.5% of revenue in the same period in 2025.
2026 Financial Outlook
The company is raising 2026 total revenue guidance to $590 million to $596 million, or 14% to 15% growth, from prior guidance of $582 to $592 million, or 13% to 14% growth. The company is also raising testing revenue guidance to $576 million to $582 million, or 17% to 18% growth, from prior guidance of $570 million to $580 million, excluding the contribution from recently launched tests.
The company continues to expect adjusted EBITDA margin to be greater than 26%.
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 ($0.3 million). For the three months ended June 30, 2025, adjustments include expenses related to Veracyte SAS investment review. For the six months ended June 30, 2026, adjustments include the impact of Non-GAAP adjustments on IT/Facilities allocations ($0.6 million), partially offset by expense related to the restructuring of Veracyte SAS. For the six months ended June 30, 2025, adjustments include expenses related to Veracyte SAS investment review. | |||||||||||||||||||||||
| 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 ($0.3 million). For the three months ended June 30, 2025, adjustments consist primarily of transaction-related expenses associated with contingent consideration related to the NanoString transaction ($1.0 million) partially offset by contingent consideration associated with the C2i Genomics Ltd (“C2i Genomics”) acquisition ($0.1 million). For the six months ended June 30, 2026, adjustments consist primarily of transaction-related expenses associated with contingent consideration related to the NanoString transaction ($0.7 million). For the six months ended June 30, 2025, adjustments consist primarily of transaction-related expenses associated with the acquisition of C2i Genomics ($1.4 million) partially offset by NanoString contingent consideration ($1.0 million). | |||||||||||||||||||||||
| 2.For the three months ended June 30, 2026, adjustments consist primarily of expenses related to the assessment of licensing and strategic investments ($1.3 million), expenses related to legal proceedings ($1.0 million), and expenses related to the liquidation proceedings of Veracyte SAS ($0.3 million), partially offset by the impact of Non-GAAP adjustments on IT/Facilities allocations ($0.3 million). For the three months ended June 30, 2025, adjustments primarily include expenses related to Veracyte SAS impairment loss ($20.5 million) and Veracyte SAS investment review ($4.2 million). For the six months ended June 30, 2026, adjustments consist primarily of expenses related to the assessment of licensing and strategic investments ($3.0 million), expenses related to legal proceedings ($1.7 million), and expenses related to the liquidation proceedings of Veracyte SAS ($0.3 million), partially offset by the impact of Non-GAAP adjustments on IT/Facilities allocations ($0.6 million). For the six months ended June 30, 2025, adjustments include additional expenses related to Veracyte SAS investment review ($3.8 million) partially offset by adjustments related to restructuring costs ($0.1 million). | |||||||||||||||||||||||
| 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 ($0.3 million). For the three months ended June 30, 2025, adjustments consist primarily of transaction-related expenses associated with contingent consideration related to NanoString ($1.0 million) partially offset by contingent consideration associated with the acquisition of C2i Genomics ($0.1 million). For the six months ended June 30, 2026, adjustments consist primarily of transaction-related expenses associated with contingent consideration related to the NanoString transaction ($0.7 million). For the six months ended June 30, 2025, adjustments consist primarily of transaction-related expenses associated with the acquisition of C2i Genomics ($1.4 million) partially offset by NanoString contingent consideration ($1.0 million). | |||||||||||||||||||||||
| 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 ($1.3 million), expenses related to legal proceedings ($1.0 million), and expenses related to the liquidation proceedings of Veracyte SAS ($0.3 million). For the three months ended June 30, 2025, adjustments primarily include expenses related to Veracyte SAS impairment loss ($20.5 million) and Veracyte SAS investment review ($4.2 million), partially offset by the exclusion of unrealized gains associated with foreign exchange impacts on stock-based compensation and intercompany loans ($2.5 million). For the six months ended June 30, 2026, adjustments primarily include expenses related to the assessment of licensing and strategic investments ($3.0 million), expenses related to legal proceedings ($1.7 million), expenses related to the liquidation proceedings of Veracyte SAS ($0.3 million), and losses related to asset disposition ($0.4 million), partially offset by adjustments related to the restructuring and liquidation proceedings of Veracyte SAS ($4.2 million). For the six months ended June 30, 2025, adjustments include additional expenses related to Veracyte SAS investment review ($3.8 million) partially offset by adjustments related to restructuring costs ($0.1 million) and additional exclusion of unrealized gains associated with foreign exchange impacts on stock-based compensation and intercompany loans ($1.1 million). | |||||||||||||||||||||||
| 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