VCYT · Veracyte, Inc.

Veracyte delivered a robust start to 2026 with total revenue reaching $139.1 million, a 21% increase from $114.5 million in Q1 2025, primarily propelled by strong performances in its core testing segments. Decipher Prostate revenue surged 30% to $86.5 million on 24% volume growth to approximately 28,000 tests, while Afirma grew 21% to $46.4 million with 12% higher volume at about 17,200 tests. Total testing volume expanded 19% to 45,248 tests, underscoring robust demand in prostate and thyroid cancer diagnostics. Gross margins improved to 73% GAAP and 76% non-GAAP, reflecting operational efficiencies amid scale. GAAP operating expenses edged up to $78.5 million from $76.6 million, but non-GAAP opex grew more modestly at 7% to $64.6 million, enabling income from operations of $22.6 million versus $2.9 million last year. This drove GAAP net income to $28.7 million, or $0.35 diluted EPS, a sharp turnaround from $7.0 million and $0.09 EPS in the prior period. Adjusted EBITDA of $42.8 million represented 30.8% of revenue, up 73% year-over-year. CEO Marc Stapley highlighted Decipher and Afirma volume growth exceeding expectations and profitability targets, bolstered by advancing clinical evidence including completed enrollments for GUIDANCE and G-MAJOR phase III trials and upcoming AUA presentations. The company strengthened leadership with Kevin Haas as Chief Development and Technology Officer and Tracy Ward as Chief Human Resources Officer. Cash generation was strong at $35.2 million from operations, building liquidity to $439.1 million. Reflecting confidence, Veracyte raised full-year 2026 guidance: total revenue to $582-$592 million (13-14% growth from prior $570-$582 million outlook) and testing revenue to $570-$580 million (16-18% growth, excluding new tests), with adjusted EBITDA margin now above 26% versus prior ~25%. Upcoming launches of Prosigna LDT and TrueMRD signal expansion into breast, bladder, and other cancers.