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SEC filingQ1 revenue grew modestly 2.3% to $200.4M as Cancer and Mental Health gains offset Prenatal declines, while operating and net losses widened due to elevated expenses including goodwill impairment.
Gross profit climbed 2.5% to $137.6 million from $134.2 million, sustaining a 68.7% margin versus the prior period. This stability reflects Myriad's pricing discipline and operational efficiencies in core genomics testing, even as segment mix shifted unfavorably with Prenatal's relative decline. The consistent margin supports long-term scalability, provided volume stabilization occurs across high-margin offerings.
Operating income deteriorated to -$30.7 million, a 5.9% widening from -$29.0 million, yielding a -15.3% margin. The expansion in losses aligns with audit-noted pressures including goodwill impairment and elevated operating expenses, consistent with removed claims on spend levels. Management's focus on R&D, technology, and partnerships as capital priorities contextualizes investment-driven cost dynamics, though they pressured near-term profitability.
Net income swung to -$34.1 million from -$0.1 million, with diluted EPS at -$0.36 versus $0.00. This sharp deterioration primarily traces to non-cash impairment charges and operating expense growth, amplifying prior-year near-breakeven results into a meaningful loss.
Net cash used in operating activities improved slightly to -$15.7 million from -$16.3 million. This modest enhancement occurred despite the larger net loss, likely aided by working capital management such as receivables collection, demonstrating operational resilience.
Management notes ongoing monitoring of reporting units for impairment triggers, with risks from higher capital costs or revenue declines potentially altering assumptions. The capital strategy emphasizes organic R&D investments for optimal returns, balancing growth pursuits against profitability volatility.