Genetic testing company Myriad Genetics (NASDAQ: MYGN) met Wall Streets revenue expectations in Q3 CY2025, but sales fell by 3.6% year on year to $205.7 million. The company’s outlook for the full year was close to analysts’ estimates with revenue guided to $823 million at the midpoint. Its non-GAAP profit of $0 per share was $0.01 above analysts’ consensus estimates.
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Myriad Genetics (MYGN) Q3 CY2025 Highlights:
- Revenue: $205.7 million vs analyst estimates of $204.8 million (3.6% year-on-year decline, in line)
- Adjusted EPS: $0 vs analyst estimates of -$0.01 ($0.01 beat)
- Adjusted EBITDA: $9.67 million vs analyst estimates of $5.57 million (4.7% margin, 73.5% beat)
- The company reconfirmed its revenue guidance for the full year of $823 million at the midpoint
- EBITDA guidance for the full year is $30 million at the midpoint, above analyst estimates of $27.52 million
- Operating Margin: -11.3%, down from -9.4% in the same quarter last year
- Market Capitalization: $761.1 million
StockStory’s Take
Myriad Genetics’ third quarter saw revenue and adjusted profit in line with Wall Street expectations, but the market reacted negatively due to ongoing challenges in average revenue per test and operational headwinds. Management cited continued strong volume growth in the oncology segment, particularly for its MyRisk hereditary cancer test, as a positive. CEO Samraat Raha noted, “MyRisk continues to see positive demand in the market and supports our profitable growth journey,” while also acknowledging the impact of payer mix and policy changes. The company faced pressure from reduced coverage for its GeneSight mental health test and a divested European business, but highlighted improved execution and stabilization in core test volumes.
Looking ahead, Myriad Genetics’ guidance is anchored by plans to expand its presence in cancer care, invest in commercial capabilities, and launch new products such as the updated MyRisk panel and FirstGene prenatal screening. Management believes that increased funding for oncology R&D and targeted commercial investments will accelerate growth in 2026 and beyond. CFO Ben Wheeler emphasized the company’s focus on balancing investment with disciplined capital allocation, stating, “We remain focused on maintaining the right balance between investing for future growth and driving profitability.” The company is also prioritizing efficiency improvements and reallocation of resources to support upcoming product launches and market activation programs.
Key Insights from Management’s Remarks
Management attributed the quarter’s performance to oncology testing strength, offset by payer and product mix challenges, and highlighted recent product development and partnership activity as foundational for future growth.
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Oncology test volume growth: The MyRisk hereditary cancer test saw 16% volume growth in affected patients and 11% in unaffected, driven by workflow improvements and better integration with electronic medical records (EMRs), contributing meaningfully to overall test demand.
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GeneSight and payer headwinds: GeneSight, Myriad’s mental health test, posted 8% volume growth, but the impact of UnitedHealthcare’s policy change and shifts in payer mix resulted in lower average revenue per test. Management emphasized continued expansion of payer coverage, including new state biomarker laws and Medicaid additions, to mitigate these headwinds.
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Prenatal segment stabilization: The company’s legacy prenatal tests, Prequel and Foresight, experienced flat volume year-over-year, with management noting operational issues from earlier in the year have been addressed. Introduction of FirstGene, a combined prenatal screening product, is expected to support future segment growth.
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Strategic partnerships: Myriad entered collaborations with SOPHiA GENETICS for liquid biopsy-based therapy selection assays and PATHOMIQ for AI-enabled prostate cancer testing, aiming to broaden its oncology portfolio and speed up product development.
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Operational efficiency and organizational redesign: Management implemented organizational changes to prioritize commercial growth, reallocating resources to expand the sales force and support new product launches, while reducing management layers to control expenses and support profitability.
Drivers of Future Performance
Myriad Genetics expects oncology product launches, commercial investment, and reimbursement trends to shape revenue growth and margin performance in the coming quarters.
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Expanded oncology offerings: The upcoming launch of the expanded MyRisk panel and future introduction of the Precise MRD (minimal residual disease) test are expected to drive volume growth in cancer care, with management targeting both established and high-growth applications such as therapy selection and monitoring.
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Commercial capability investments: Management is increasing investment in salesforce expansion and commercial tools, particularly in oncology, to capture market share and support new product launches. The company expects these changes to allow revenue to grow faster than operating expenses, supporting margin improvement over time.
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Reimbursement and competitive dynamics: The company sees risk in payer policy changes and competitive new market entrants, especially in prenatal testing. Management is optimistic about continued improvements in reimbursement for expanded carrier screening and mental health tests, but acknowledges that payer mix and policy shifts could create volatility in average selling price and margins.
Catalysts in Upcoming Quarters
Going forward, our team will be watching (1) the commercial uptake and clinical impact of the expanded MyRisk hereditary cancer panel, (2) the pace and success of the FirstGene prenatal screening launch and associated market share shifts, and (3) the effect of new strategic partnerships on the breadth and adoption of Myriad’s oncology portfolio. Monitoring reimbursement trends and payer policy changes will also be important for assessing revenue and margin stability.
Myriad Genetics currently trades at $7.50, down from $8.14 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).
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