Veracyte (NASDAQ: VCYT) boosts Q1 profit and raises 2026 outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Veracyte reported strong first-quarter 2026 results with higher growth and profitability. Total revenue rose 21% to $139.1 million, led by testing revenue of $135.1 million, up 26%, driven by Decipher revenue of $86.5 million and Afirma revenue of $46.4 million.
Profitability improved significantly. GAAP net income was $28.7 million, or 20.6% of revenue, compared with $7.0 million a year earlier, and adjusted EBITDA reached $42.8 million, or 30.8% of revenue. Cash from operations was $35.2 million, and Veracyte ended March 31, 2026 with $439.1 million in cash, cash equivalents and short-term investments.
Management also raised its 2026 outlook. The company now guides total revenue to $582 million–$592 million and testing revenue to $570 million–$580 million, and expects adjusted EBITDA margin to exceed 26%, reflecting confidence in growth from its cancer diagnostic tests and upcoming product launches.
Positive
- Strong revenue and volume growth: Q1 2026 total revenue rose 21% to $139.1 million, with testing revenue up 26% to $135.1 million, supported by 24% Decipher and 12% Afirma volume growth.
- Sharp profitability improvement: GAAP net income reached $28.7 million (20.6% margin), up 307% year-over-year, while adjusted EBITDA increased 73% to $42.8 million, or 30.8% of revenue.
- Raised 2026 guidance: Veracyte increased 2026 total revenue guidance to $582–$592 million and testing revenue guidance to $570–$580 million, and now expects adjusted EBITDA margin above 26%.
- Solid cash generation and liquidity: Net cash from operating activities was $35.2 million in the first quarter, and cash, cash equivalents and short-term investments totaled $439.1 million as of March 31, 2026.
Negative
- None.
Insights
Veracyte posted strong Q1 growth, expanding margins and raised its 2026 outlook.
Revenue growth was broad-based and profitable. Total revenue grew 21% to $139.1 million, with testing revenue up 26% to $135.1 million, driven by Decipher at $86.5 million and Afirma at $46.4 million. GAAP net income increased to $28.7 million, and adjusted EBITDA margin improved to 30.8%.
Non-GAAP discipline and cash generation strengthened the balance sheet. Non-GAAP total operating expenses rose modestly to $64.6 million, while adjusted EBITDA climbed 73% to $42.8 million. Net cash from operations of $35.2 million supported total cash, cash equivalents and short-term investments of $439.1 million as of March 31, 2026.
Raised guidance underscores management confidence. For 2026, Veracyte now targets total revenue of $582 million–$592 million (13%–14% growth) and testing revenue of $570 million–$580 million (16%–18% growth), with adjusted EBITDA margin expected above 26%. Actual performance will depend on execution in Decipher, Afirma and planned launches.
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
Total revenue: $139.1 million
Testing revenue: $135.1 million
GAAP net income: $28.7 million
+5 more
8 metrics
Total revenue
$139.1 million
Q1 2026, up 21% year-over-year
Testing revenue
$135.1 million
Q1 2026, up 26% year-over-year
GAAP net income
$28.7 million
Q1 2026, 20.6% of revenue
Adjusted EBITDA
$42.8 million
Q1 2026, 30.8% of revenue
Cash, cash equivalents and short-term investments
$439.1 million
As of March 31, 2026
2026 total revenue guidance
$582–$592 million
Full-year 2026 outlook, 13%–14% growth
2026 testing revenue guidance
$570–$580 million
Full-year 2026 outlook, 16%–18% growth
Adjusted EBITDA margin guidance
>26%
Full-year 2026 outlook
Key Terms
adjusted EBITDA, non-GAAP gross margin, stock-based compensation, contingent consideration, +1 more
5 terms
adjusted EBITDA financial
"Adjusted EBITDA for the first quarter of 2026 was $42.8 million, an improvement of 73%..."
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 76%, compared to 72% in the first 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.
stock-based compensation financial
"Cost of revenue, research and development, sales and marketing and general and administrative expenses include the following stock-based compensation related expenses"
Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.
contingent consideration financial
"transaction-related expenses associated with contingent consideration related to the NanoString transaction"
Contingent consideration is an additional payment agreed when one company buys another that will be paid later only if specific future targets are met, such as revenue, profit, or regulatory milestones. It matters to investors because it shifts risk between buyer and seller and affects the acquiring company's future cash flow and reported value — like promising a bonus after results are proven.
restructuring and liquidation proceedings financial
"given the restructuring and liquidation proceedings of Veracyte SAS."
Earnings Snapshot
Total revenue: $139.1 million · Guidance included
Q1 2026
Total revenue
$139.1 million
+21% year-over-year
Testing revenue
$135.1 million
+26% year-over-year
GAAP net income
$28.7 million
+307% year-over-year
Adjusted EBITDA
$42.8 million
+73% year-over-year
Guidance
For 2026, Veracyte guides total revenue to $582–$592 million (13%–14% growth), testing revenue to $570–$580 million (16%–18% growth), and expects adjusted EBITDA margin greater than 26%.
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): May 5, 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
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 May 5, 2026, Veracyte, Inc. issued a press release announcing its financial results for the quarter ended March 31, 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 May 5, 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: | May 5, 2026 | ||||||||||
VERACYTE, INC. | |||||||||||
By: | /s/ Rebecca Chambers | ||||||||||
Name: | Rebecca Chambers | ||||||||||
Title: | Chief Financial Officer | ||||||||||
| Principal Financial Officer | |||||||||||
Exhibit 99.1
Veracyte Announces First Quarter 2026 Financial Results
Grew total revenue to $139.1 million and testing revenue to $135.1 million, representing increases of 21% and 26% year-over-year, respectively
Conference call and webcast today at 4:30 p.m. ET
SOUTH SAN FRANCISCO, Calif., May 5, 2026 --- Veracyte, Inc. (Nasdaq: VCYT), a leading cancer diagnostics company, today announced financial results for the first quarter ended March 31, 2026.
“We had a strong start to the year, with Decipher and Afirma volume growth surpassing expectations and exceeding our profitability targets,” said Marc Stapley, Veracyte’s CEO. “Our growing clinical evidence continues to set us apart, and this quarter strengthened it even further. We believe we are approaching an inflection point with the upcoming launches of Prosigna LDT and TrueMRD, two of the most significant new products in our history, creating meaningful opportunities for market expansion in Breast, Bladder and other cancers, alongside continued growth in our Prostate and Thyroid businesses.”
Key Financial Highlights
For the three-month period ended March 31, 2026, as compared to the same period in 2025:
•Increased total revenue by 21% to $139.1 million and testing revenue by 26% to $135.1 million, driven by Decipher growth of 30% to $86.5 million and Afirma growth of 21% to $46.4 million.
•Increased total volume by 17% to 47,615 tests and testing volume by 19% to 45,248 tests, driven by Decipher growth of 24% to approximately 28,000 tests and Afirma growth of 12% to approximately 17,200 tests.
•Recorded GAAP net income of $28.7 million, or 20.6% of revenue, and delivered adjusted EBITDA of $42.8 million, or 30.8% of revenue.
•Generated $35.2 million of cash from operations to end the quarter with $439.1 million of cash, cash equivalents, and short-term investments as of March 31, 2026.
Key Business Highlights
•Advanced the evidence pipeline for Decipher with enrollment completed for GUIDANCE and G-MAJOR phase III trials.
•Announced data published in European Urology Oncology showing Decipher’s ability to stratify risk among patients undergoing active surveillance.
•Announced more than 15 studies featuring Decipher Prostate and Decipher Bladder will be presented at the AUA Annual Meeting next week, including the expanding impact of Decipher Prostate in studies using real-world data.
•Strengthened the leadership team with the appointments of Kevin Haas as Chief Development and Technology Officer and Tracy Ward as Chief Human Resources Officer.
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."
First Quarter 2026 Financial Results
Total revenue for the first quarter of 2026 was $139.1 million, an increase of 21% compared to $114.5 million reported in the first quarter of 2025. Testing revenue was $135.1 million, an increase of 26% compared to $107.3 million in the first quarter of 2025, driven by growth in our Decipher Prostate and Afirma tests. Product revenue was $3.7 million, an increase of 3% compared to $3.6 million in the first quarter of 2025. Biopharmaceutical and other revenue was $0.3 million, an expected decrease compared to $3.6 million in the first quarter of 2025 given the restructuring and liquidation proceedings of Veracyte SAS.
Total gross margin for the first quarter of 2026 was 73%, compared to 69% in the first quarter of 2025. Non-GAAP gross margin was 76%, compared to 72% in the first quarter of 2025.
Operating expenses were $78.5 million for the first quarter of 2026 compared to $76.6 million in the first quarter of 2025. Non-GAAP operating expenses grew 7% to $64.6 million compared to $60.5 million in the first quarter of 2025.
Net income for the first quarter of 2026 was $28.7 million, an improvement of 307% compared to the first quarter of 2025. Diluted net earnings per common share was $0.35, an improvement of $0.26 compared to the first quarter of 2025. Non-GAAP diluted net earnings per common share was $0.52, an increase of $0.21 compared to the first quarter of 2025. Net cash provided by operating activities in the first three months of 2026 was $35.2 million, an improvement of $29.9 million compared to the same period in 2025.
Adjusted EBITDA for the first quarter of 2026 was $42.8 million, an improvement of 73% compared to the first quarter of 2025, representing 30.8% of revenue compared to 21.6% of revenue in the same period in 2025.
2026 Financial Outlook
The company is raising 2026 total revenue guidance to $582 million to $592 million, or 13% to 14% growth, from prior guidance of $570 to $582 million, or 10% to 13% growth. The company is also raising testing revenue guidance to $570 million to $580 million, or 16% to 18% growth, excluding the contribution from new tests.
Additionally, the company is raising guidance for adjusted EBITDA margin to greater than 26%, from approximately 25% prior.
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/293q6w6a. 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/BIe7dfa54183624bef85d5dea0e7c81024.
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 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 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 March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenue: | |||||||||||
| Testing revenue | $ | 135,091 | $ | 107,309 | |||||||
| Product revenue | 3,679 | 3,580 | |||||||||
| Biopharmaceutical and other revenue | 301 | 3,584 | |||||||||
| Total revenue | 139,071 | 114,473 | |||||||||
| Cost of revenue: (1) | |||||||||||
| Cost of testing revenue | 33,306 | 28,260 | |||||||||
| Cost of product revenue | 1,891 | 1,422 | |||||||||
| Cost of biopharmaceutical and other revenue | 8 | 2,698 | |||||||||
| Intangible asset amortization - cost of revenue | 2,707 | 2,585 | |||||||||
| Total cost of revenue | 37,912 | 34,965 | |||||||||
| Gross profit | 101,159 | 79,508 | |||||||||
| Operating expenses: (1) | |||||||||||
| Research and development | 27,098 | 17,720 | |||||||||
| Selling and marketing | 27,156 | 24,454 | |||||||||
| General and administrative | 23,680 | 33,808 | |||||||||
| Intangible asset amortization - operating expenses | 579 | 622 | |||||||||
| Total operating expenses | 78,513 | 76,604 | |||||||||
| Income from operations | 22,646 | 2,904 | |||||||||
| Other income, net | 7,328 | 4,524 | |||||||||
| Income before income taxes | 29,974 | 7,428 | |||||||||
| Income tax provision | 1,267 | 381 | |||||||||
| Net income | $ | 28,707 | $ | 7,047 | |||||||
| Earnings per share: | |||||||||||
| Basic | $ | 0.36 | $ | 0.09 | |||||||
| Diluted | $ | 0.35 | $ | 0.09 | |||||||
| Shares used to compute earnings per common share: | |||||||||||
| Basic | 79,536,601 | 78,028,254 | |||||||||
| Diluted | 81,313,588 | 80,056,024 | |||||||||
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 March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cost of revenue | $ | 1,099 | $ | 520 | |||||||
| Research and development | 2,680 | 2,066 | |||||||||
| Selling and marketing | 2,399 | 1,958 | |||||||||
| General and administrative | 6,583 | 6,414 | |||||||||
| Total stock-based compensation expense | $ | 12,761 | $ | 10,958 | |||||||
| VERACYTE, INC. | |||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | |||||||||||
| (Unaudited) | |||||||||||
| (In thousands) | |||||||||||
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net income | $ | 28,707 | $ | 7,047 | |||||||
| Other comprehensive income (loss): | |||||||||||
| Change in currency translation adjustments | (9) | 7,449 | |||||||||
| Net comprehensive income | $ | 28,698 | $ | 14,496 | |||||||
| VERACYTE, INC. | |||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
| (In thousands) | |||||||||||
| March 31, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| (Unaudited) | (See Note 1) | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 263,136 | $ | 362,578 | |||||||
| Short-term investments | 175,924 | 50,311 | |||||||||
| Accounts receivable | 50,112 | 44,660 | |||||||||
| Supplies | 21,416 | 20,546 | |||||||||
| Prepaid expenses and other current assets | 11,587 | 10,281 | |||||||||
Total current assets | 522,175 | 488,376 | |||||||||
| Property, plant and equipment, net | 22,652 | 22,192 | |||||||||
| Right-of-use assets, operating leases | 35,865 | 36,599 | |||||||||
| Intangible assets, net | 85,863 | 89,148 | |||||||||
| Goodwill | 767,154 | 767,154 | |||||||||
| Restricted cash | 1,657 | 1,648 | |||||||||
| Other assets | 1,034 | 902 | |||||||||
| Total assets | $ | 1,436,400 | $ | 1,406,019 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 6,908 | $ | 4,593 | |||||||
| Accrued liabilities | 43,129 | 48,801 | |||||||||
| Current portion of deferred revenue | 749 | 1,160 | |||||||||
| Current portion of acquisition-related contingent consideration | 982 | 1,332 | |||||||||
| Current portion of operating lease liabilities | 4,347 | 4,051 | |||||||||
Total current liabilities | 56,115 | 59,937 | |||||||||
| Deferred tax liabilities | 636 | 646 | |||||||||
| Acquisition-related contingent consideration, net of current portion | 257 | 257 | |||||||||
| Operating lease liabilities, net of current portion | 34,986 | 35,603 | |||||||||
Total liabilities | 91,994 | 96,443 | |||||||||
| Total stockholders’ equity | 1,344,406 | 1,309,576 | |||||||||
| Total liabilities and stockholders’ equity | $ | 1,436,400 | $ | 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) | |||||||||||
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Operating activities | |||||||||||
| Net income | $ | 28,707 | $ | 7,047 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 5,430 | 5,362 | |||||||||
| Loss on disposal of property, plant and equipment | 366 | — | |||||||||
| Stock-based compensation | 12,761 | 10,958 | |||||||||
| Deferred income taxes | (10) | 15 | |||||||||
| Noncash lease expense | 732 | 904 | |||||||||
| Revaluation of acquisition-related contingent consideration | (350) | (1,954) | |||||||||
| Effect of foreign currency on operations | (80) | (1,585) | |||||||||
| Amortization of discount on short-term investments | (614) | (882) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | (5,567) | (7,053) | |||||||||
| Supplies | (870) | (2,298) | |||||||||
| Prepaid expenses and other current assets | (1,306) | (2,928) | |||||||||
| Other assets | (132) | 122 | |||||||||
| Operating lease liabilities | (319) | (577) | |||||||||
| Accounts payable | 2,587 | 7,120 | |||||||||
| Accrued liabilities and deferred revenue | (6,120) | (8,889) | |||||||||
| Net cash provided by operating activities | 35,215 | 5,362 | |||||||||
| Investing activities | |||||||||||
| Purchase of short-term investments | (124,999) | (49,999) | |||||||||
| Purchases of property, plant and equipment | (2,962) | (1,819) | |||||||||
| Net cash used in investing activities | (127,961) | (51,818) | |||||||||
| Financing activities | |||||||||||
| Payment of taxes on vested restricted stock units | (9,364) | (9,451) | |||||||||
| Proceeds from the exercise of common stock options and employee stock purchases | 2,735 | 2,967 | |||||||||
| Net cash used in financing activities | (6,629) | (6,484) | |||||||||
| Decrease in cash, cash equivalents and restricted cash | (99,375) | (52,940) | |||||||||
| Effect of foreign currency on cash, cash equivalents and restricted cash | (58) | 74 | |||||||||
| Net decrease in cash, cash equivalents and restricted cash | (99,433) | (52,866) | |||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 364,226 | 240,631 | |||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 264,793 | $ | 187,765 | |||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||||||||||
| (Unaudited) | |||||||||||
| (In thousands) | |||||||||||
| March 31, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Cash and cash equivalents | $ | 263,136 | $ | 362,578 | |||||||
| Restricted cash | 1,657 | 1,648 | |||||||||
| Total cash, cash equivalents and restricted cash | $ | 264,793 | $ | 364,226 | |||||||
| VERACYTE, INC. | |||||||||||
| RECONCILIATION OF U.S. GAAP to NON-GAAP FINANCIAL MEASURES | |||||||||||
| (Unaudited) | |||||||||||
| (In thousands) | |||||||||||
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Reconciliation of Non-GAAP Cost of Revenue: | |||||||||||
| GAAP cost of testing revenue | $ | 33,306 | $ | 28,260 | |||||||
| Stock-based compensation expense | (1,099) | (446) | |||||||||
| Acquisition related expenses | — | — | |||||||||
| Other adjustments (1) | (300) | — | |||||||||
| Non-GAAP cost of testing revenue | $ | 31,907 | $ | 27,814 | |||||||
| GAAP cost of product revenue | 1,891 | 1,422 | |||||||||
| Stock-based compensation expense | — | (1) | |||||||||
| Acquisition related expenses | — | — | |||||||||
| Other adjustments (1) | 11 | — | |||||||||
| Non-GAAP cost of product revenue | $ | 1,902 | $ | 1,421 | |||||||
| GAAP cost of biopharmaceutical and other revenue | 8 | 2,698 | |||||||||
| Stock-based compensation expense | — | (73) | |||||||||
| Acquisition related expenses | — | — | |||||||||
| Other adjustments (1) | — | — | |||||||||
| Non-GAAP cost of biopharmaceutical and other revenue | $ | 8 | $ | 2,625 | |||||||
| Reconciliation of Non-GAAP Gross Margin: | |||||||||||
| GAAP Gross Profit | $ | 101,159 | $ | 79,508 | |||||||
| GAAP Gross Margin | 72.7 | % | 69.5 | % | |||||||
| Amortization of intangible assets | 2,707 | 2,585 | |||||||||
| Stock-based compensation expense | 1,099 | 520 | |||||||||
| Acquisition related expenses | — | — | |||||||||
| Other adjustments (1) | 289 | — | |||||||||
| Non-GAAP Gross Profit | $ | 105,254 | $ | 82,613 | |||||||
| Non-GAAP Gross Margin | 75.7 | % | 72.2 | % | |||||||
| 1.For the three months ended March 31, 2026, adjustments include the impact of Non-GAAP adjustments on IT/Facilities allocations ($0.3 million), partially offset by expense related to the restructuring of Veracyte SAS. | |||||||||||
| VERACYTE, INC. | |||||||||||
| RECONCILIATION OF U.S. GAAP to NON-GAAP FINANCIAL MEASURES | |||||||||||
| (Unaudited) | |||||||||||
| (In thousands) | |||||||||||
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Reconciliation of Non-GAAP Operating Expenses: | |||||||||||
| GAAP research and development | $ | 27,098 | $ | 17,720 | |||||||
| Stock-based compensation expense | (2,680) | (2,066) | |||||||||
| Acquisition related expenses (1) | — | — | |||||||||
| Other adjustments (2) | (277) | — | |||||||||
| Non-GAAP research and development | $ | 24,141 | $ | 15,654 | |||||||
| GAAP sales and marketing | $ | 27,156 | $ | 24,454 | |||||||
| Stock-based compensation expense | (2,399) | (1,958) | |||||||||
| Acquisition related expenses (1) | — | — | |||||||||
| Other adjustments (2) | (31) | — | |||||||||
| Non-GAAP sales and marketing | $ | 24,726 | $ | 22,496 | |||||||
| GAAP general and administrative | $ | 23,680 | $ | 33,808 | |||||||
| Stock-based compensation expense | (6,583) | (6,414) | |||||||||
| Acquisition related expenses (1) | 367 | (1,352) | |||||||||
| Other adjustments (2) | (1,695) | (3,694) | |||||||||
| Non-GAAP general and administrative | $ | 15,769 | $ | 22,348 | |||||||
| GAAP total operating expenses | $ | 78,513 | $ | 76,604 | |||||||
| Amortization of intangible assets | (579) | (622) | |||||||||
| Stock-based compensation expense | (11,662) | (10,438) | |||||||||
| Acquisition related expenses (1) | 367 | (1,352) | |||||||||
| Other adjustments (2) | (2,003) | (3,694) | |||||||||
| Non-GAAP total operating expenses | $ | 64,636 | $ | 60,498 | |||||||
| 1.Includes transaction-related expenses as well as post-combination compensation expenses. For the three months ended March 31, 2026, adjustments consist primarily of transaction-related expenses associated with contingent consideration related to the NanoString Technologies, Inc. ("NanoString") transaction ($0.4 million). For the three months ended March 31, 2025, adjustments consist primarily of transaction-related expenses associated with the acquisition of C2i Genomics ($1.3 million). | |||||||||||
| 2.For the three months ended March 31, 2026, adjustments consist primarily of expenses related to the assessment of licensing and strategic investments ($1.7 million) and expenses related to legal proceedings ($0.6 million), partially offset by the impact of Non-GAAP adjustments on IT/Facilities allocations ($0.3 million). For the three months ended March 31, 2025, adjustments primarily include expense 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 March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Reconciliation of Adjusted EBITDA: | |||||||||||
| GAAP Net Income (Loss) | $ | 28,707 | $ | 7,047 | |||||||
| GAAP Net Income (Loss) as a % of Revenue | 20.6 | % | 6.2 | % | |||||||
| Amortization of intangible assets | 3,286 | 3,207 | |||||||||
| Depreciation expense | 2,144 | 2,155 | |||||||||
| Stock-based compensation expense | 12,761 | 10,958 | |||||||||
| Acquisition related expenses (1) | (367) | 1,352 | |||||||||
| Other expense (income), net (2) | (3,478) | (2,976) | |||||||||
| Other adjustments (3) | (1,520) | 2,591 | |||||||||
| Income tax expense (benefit) | 1,267 | 381 | |||||||||
| Adjusted EBITDA | $ | 42,800 | $ | 24,715 | |||||||
| Adjusted EBITDA as a % of Revenue | 30.8 | % | 21.6 | % | |||||||
| Reconciliation of Non-GAAP Net Income (Loss) | |||||||||||
| GAAP Net Income (Loss) | $ | 28,707 | $ | 7,047 | |||||||
| Amortization of intangible assets | 3,286 | 3,207 | |||||||||
| Stock-based compensation expense | 12,761 | 10,958 | |||||||||
| Acquisition related expenses (1) | (367) | 1,352 | |||||||||
| Other adjustments (3) | (1,520) | 2,591 | |||||||||
| Tax adjustments (4) | (753) | (679) | |||||||||
| Non-GAAP Net Income | $ | 42,114 | $ | 24,476 | |||||||
| Reconciliation of Non-GAAP Earnings per Share | |||||||||||
| Diluted earnings per share, GAAP | $ | 0.35 | $ | 0.09 | |||||||
| Amortization of intangible assets | 0.04 | 0.04 | |||||||||
| Stock-based compensation expense | 0.16 | 0.14 | |||||||||
| Acquisition related expenses (1) | — | 0.02 | |||||||||
| Other adjustments (3) | (0.02) | 0.03 | |||||||||
| Tax adjustments (4) | (0.01) | (0.01) | |||||||||
| Rounding and impact of dilutive shares | — | — | |||||||||
| Diluted earnings per share, non-GAAP | $ | 0.52 | $ | 0.31 | |||||||
| Weighted average shares outstanding used in computing diluted earnings per share | |||||||||||
| Diluted, GAAP | 81,313,588 | 80,056,024 | |||||||||
| Dilutive effect of equity awards (5) | — | — | |||||||||
| Diluted, non-GAAP | 81,313,588 | 80,056,024 | |||||||||
| 1.Includes transaction-related expenses as well as post-combination compensation expenses. For the three months ended March 31, 2026, adjustments consist primarily of transaction-related expenses associated with contingent consideration related to the NanoString transaction ($0.4 million). For the three months ended March 31, 2025, adjustments consist primarily of transaction-related expenses associated with the acquisition of C2i Genomics ($1.3 million). | |||||||||||
| 2.Includes interest income and income related to research tax credits. | |||||||||||
| 3.For the three months ended March 31, 2026, adjustments primarily include impacts from the restructuring and liquidation proceedings of Veracyte SAS ($4.2 million), partially offset by expenses related to the assessment of licensing and strategic investments ($1.7 million), other legal proceedings ($0.6 million) and losses related to asset disposition ($0.4 million). For the three months ended March 31, 2025, adjustments primarily include expense related to Veracyte SAS site investment review ($3.8 million), partially offset by adjustments related to restructuring costs ($0.1 million) and the 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
619-393-1545
Media:
Molly Cornbleet
media@veracyte.com
FAQ
How did Veracyte (VCYT) perform financially in Q1 2026?
Veracyte delivered strong Q1 2026 results, with total revenue rising 21% to $139.1 million. Testing revenue grew 26% to $135.1 million, while GAAP net income increased to $28.7 million and adjusted EBITDA reached $42.8 million, reflecting higher margins and earnings.
What drove Veracyte’s revenue growth in the first quarter of 2026?
Growth was driven mainly by Veracyte’s cancer tests. Decipher revenue increased 30% to $86.5 million, and Afirma revenue rose 21% to $46.4 million. Total testing volume grew 19% to 45,248 tests, showing greater clinical adoption of these genomic diagnostics.
How profitable was Veracyte in Q1 2026 on a GAAP and non-GAAP basis?
Veracyte generated GAAP net income of $28.7 million, representing 20.6% of revenue. Adjusted EBITDA was $42.8 million, a 73% year-over-year improvement, with adjusted EBITDA margin expanding to 30.8%, supported by higher gross margin and disciplined operating expenses.
What is Veracyte’s 2026 revenue and earnings outlook after this quarter?
Veracyte raised 2026 total revenue guidance to $582–$592 million, implying 13%–14% growth. Testing revenue guidance is now $570–$580 million, or 16%–18% growth. The company also increased its adjusted EBITDA margin outlook to greater than 26%.
How strong is Veracyte’s cash position following Q1 2026 results?
Veracyte generated $35.2 million of cash from operating activities in the first quarter. As of March 31, 2026, it held $439.1 million in cash, cash equivalents and short-term investments, providing substantial financial flexibility for operations and strategic initiatives.
What non-GAAP metrics does Veracyte highlight in its Q1 2026 results?
Veracyte emphasizes non-GAAP gross margin of 75.7%, non-GAAP total operating expenses of $64.6 million, adjusted EBITDA of $42.8 million and non-GAAP diluted EPS of $0.52. These exclude amortization, stock-based compensation, acquisition-related items and specified adjustments.