Veracyte Announces Second Quarter 2025 Financial Results
Grew total revenue to
Conference call and webcast today at 4:30 p.m. ET
“Testing growth continues to exceed our expectations, driven by Decipher which achieved its thirteenth consecutive quarter of over
Key Financial Highlights
For the three-month period ended June 30, 2025, as compared to the same period in 2024:
-
Increased total revenue by
14% to and testing revenue by$130.2 million 14% to .$122.3 million -
Increased total volume by
15% to 44,966 tests and testing volume by18% to 42,441 tests. -
Grew Decipher revenue by
24% to and Afirma revenue by$76.3 million 5% to .$43.4 million -
Grew Decipher volume by
28% to approximately 25,500 tests and Afirma volume by8% to approximately 16,950 tests. -
Recorded GAAP net loss of
, or ($1.0 million 0.8% ) of revenue, including of one-time impairment charges, and adjusted EBITDA of$20.5 million , or$35.8 million 27.5% of revenue. -
Generated
of cash from operations to end the quarter with$33.6 million of cash, cash equivalents, and short-term investments as of June 30, 2025.$320.7 million -
Provided full year revenue guidance of
to$496 million ; raised testing revenue guidance to$504 million to$477 million or$483 million 14% to15% year-over-year growth.
Key Business Highlights
- Kicked off our high risk and metastatic growth strategy with the full launch of Decipher for use in the metastatic population in June, engaging physicians in understanding the utility of Decipher in aiding decision making on treatment intensification.
- Demonstrated utility of Decipher Prostate and Decipher Bladder Genomic Classifiers as well as the Decipher GRID research capabilities through 29 abstracts presented and nine new publications.
- Supported the presentation of seven different abstracts covering clinical Afirma GSC data and research with Afirma GRID at scientific and medical conferences, and saw the publication of the first study detailing the development and validation of tumor behavior classifiers offered on the Afirma GRID research report, in Frontiers in Endocrinology.
- Added to the clinical data demonstrating that Prosigna accurately classifies patients� risk of recurrence with the presentation of 10-year clinical outcomes data from the OPTIMA Prelim study at ESMO Breast Cancer Annual Congress.
- Completed the French entity restructuring process as it relates to the sale of the Veracyte SAS product manufacturing business and deconsolidation of the Veracyte SAS operations (see below).
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 2025 Financial Results
Total revenue for the second quarter of 2025 was
Total gross margin for the second quarter of 2025 was
Operating expenses were
Net loss for the second quarter of 2025 was
Adjusted EBITDA for the second quarter of 2025 was
Update on Marseille Operations
As previously communicated, on May 7, 2025, the Commercial Court of
On July 16, 2025, the Marseille Commercial Court published a decision approving the sale of the manufacturing operations of Veracyte SAS to Helio Diagnostics SAS. The sale closed on August 1, 2025. Following the sale, the remaining Veracyte SAS assets will continue to be managed by the court-appointed administration until formal liquidation proceedings are opened, at which point the proceeding will be managed solely by a court-appointed judicial liquidator. Given the sale and subsequent liquidation proceedings we took a
Management will provide further details on the potential impact to Veracyte’s 2025 financial outlook during the conference call this afternoon.
2025 Financial Outlook
The company is raising full-year 2025 testing revenue guidance to
Additionally, the company is raising guidance for adjusted EBITDA as a percentage of revenue in 2025 to
The company is unable to provide a quantitative reconciliation of expected adjusted EBITDA as a percentage of revenue 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: . 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 .
The conference call dial-in can be accessed by registering at the following link: .
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 or follow us on or .
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
Veracyte, the Veracyte logo, Decipher, C2i Genomics, and Afirma are registered trademarks of Veracyte, Inc., and its subsidiaries in the
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, 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
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, |
||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
Testing revenue |
$ |
122,263 |
|
|
$ |
106,970 |
|
$ |
229,572 |
|
|
$ |
197,273 |
|
|
Product revenue |
|
3,598 |
|
|
|
3,906 |
|
|
|
7,178 |
|
|
|
7,443 |
|
Biopharmaceutical and other revenue |
|
4,303 |
|
|
|
3,552 |
|
|
|
7,887 |
|
|
|
6,556 |
|
Total revenue |
|
130,164 |
|
|
|
114,428 |
|
|
|
244,637 |
|
|
|
211,272 |
|
|
|
|
|
|
|
|
|
||||||||
Cost of revenue: (1) |
|
|
|
|
|
|
|
||||||||
Cost of testing revenue |
|
32,407 |
|
|
|
27,920 |
|
|
|
60,667 |
|
|
|
53,899 |
|
Cost of product revenue |
|
1,749 |
|
|
|
1,874 |
|
|
|
3,171 |
|
|
|
4,518 |
|
Cost of biopharmaceutical and other revenue |
|
3,572 |
|
|
|
3,812 |
|
|
|
6,270 |
|
|
|
6,650 |
|
Intangible asset amortization - cost of revenue |
|
2,667 |
|
|
|
2,909 |
|
|
|
5,252 |
|
|
|
5,824 |
|
Total cost of revenue |
|
40,395 |
|
|
|
36,515 |
|
|
|
75,360 |
|
|
|
70,891 |
|
Gross profit |
|
89,769 |
|
|
|
77,913 |
|
|
|
169,277 |
|
|
|
140,381 |
|
Operating expenses: (1) |
|
|
|
|
|
|
|
||||||||
Research and development |
|
16,264 |
|
|
|
16,465 |
|
|
|
33,984 |
|
|
|
32,430 |
|
Selling and marketing |
|
25,316 |
|
|
|
24,216 |
|
|
|
49,770 |
|
|
|
47,998 |
|
General and administrative |
|
32,331 |
|
|
|
31,745 |
|
|
|
66,139 |
|
|
|
57,955 |
|
Impairment of assets |
|
20,505 |
|
|
|
� |
|
|
|
20,505 |
|
|
|
429 |
|
Intangible asset amortization - operating expenses |
|
621 |
|
|
|
881 |
|
|
|
1,243 |
|
|
|
1,619 |
|
Total operating expenses |
|
95,037 |
|
|
|
73,307 |
|
|
|
171,641 |
|
|
|
140,431 |
|
Income (loss) from operations |
|
(5,268 |
) |
|
|
4,606 |
|
|
|
(2,364 |
) |
|
|
(50 |
) |
Other income, net |
|
6,518 |
|
|
|
2,755 |
|
|
|
11,042 |
|
|
|
5,503 |
|
Income (loss) before income taxes |
|
1,250 |
|
|
|
7,361 |
|
|
|
8,678 |
|
|
|
5,453 |
|
Income tax provision |
|
2,230 |
|
|
|
1,627 |
|
|
|
2,611 |
|
|
|
1,583 |
|
Net income (loss) |
$ |
(980 |
) |
|
$ |
5,734 |
|
|
$ |
6,067 |
|
|
$ |
3,870 |
|
Earnings (loss) per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.01 |
) |
|
$ |
0.07 |
|
|
$ |
0.08 |
|
|
$ |
0.05 |
|
Diluted |
$ |
(0.01 |
) |
|
$ |
0.07 |
|
|
$ |
0.08 |
|
|
$ |
0.05 |
|
Shares used to compute earnings (loss) per common share: |
|
|
|
|
|
|
|
||||||||
Basic |
|
78,391,502 |
|
|
|
76,538,325 |
|
|
|
78,210,881 |
|
|
|
75,649,057 |
|
Diluted |
|
78,391,502 |
|
|
|
77,163,149 |
|
|
|
79,905,121 |
|
|
|
76,600,079 |
|
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, |
||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Cost of revenue |
$ |
608 |
|
$ |
604 |
|
$ |
1,128 |
|
$ |
1,091 |
||||
Research and development |
|
2,008 |
|
|
|
1,895 |
|
|
|
4,074 |
|
|
|
3,658 |
|
Selling and marketing |
|
2,198 |
|
|
|
2,142 |
|
|
|
4,156 |
|
|
|
3,235 |
|
General and administrative |
|
6,171 |
|
|
|
5,213 |
|
|
|
12,585 |
|
|
|
9,889 |
|
Total stock-based compensation expense |
$ |
10,985 |
|
|
$ |
9,854 |
|
|
$ |
21,943 |
|
|
$ |
17,873 |
|
VERACYTE, INC. |
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(In thousands) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Net income (loss) |
$ |
(980 |
) |
|
$ |
5,734 |
|
|
$ |
6,067 |
|
$ |
3,870 |
|
|
Other comprehensive income (loss): |
|
|
|
|
|
|
|
||||||||
Change in currency translation adjustments |
|
16,682 |
|
|
|
(1,703 |
) |
|
|
24,131 |
|
|
|
(6,592 |
) |
|
|
|
|
|
|
|
|
||||||||
Net comprehensive income (loss) |
$ |
15,702 |
|
|
$ |
4,031 |
|
|
$ |
30,198 |
|
|
$ |
(2,722 |
) |
VERACYTE, INC. |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(In thousands) |
|||||||
|
|
|
|
||||
|
June 30, |
|
December 31, |
||||
|
2025 |
|
2024 |
||||
|
(Unaudited) |
|
(See Note 1) |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
219,499 |
|
$ |
239,087 |
||
Short-term investments |
|
101,220 |
|
|
|
50,354 |
|
Accounts receivable |
|
50,814 |
|
|
|
46,525 |
|
Supplies and inventory |
|
25,020 |
|
|
|
21,750 |
|
Prepaid expenses and other current assets |
|
18,128 |
|
|
|
14,551 |
|
Total current assets |
|
414,681 |
|
|
|
372,267 |
|
Property, plant and equipment, net |
|
18,552 |
|
|
|
22,953 |
|
Right-of-use assets, operating leases |
|
38,679 |
|
|
|
48,189 |
|
Intangible assets, net |
|
95,806 |
|
|
|
102,301 |
|
Goodwill |
|
773,255 |
|
|
|
745,800 |
|
Restricted cash |
|
1,654 |
|
|
|
1,544 |
|
Other assets |
|
1,477 |
|
|
|
6,981 |
|
Total assets |
$ |
1,344,104 |
|
|
$ |
1,300,035 |
|
Liabilities and Stockholders� Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
11,447 |
|
|
$ |
8,634 |
|
Accrued liabilities |
|
43,707 |
|
|
|
43,826 |
|
Current portion of deferred revenue |
|
1,450 |
|
|
|
1,673 |
|
Current portion of acquisition-related contingent consideration |
|
13,415 |
|
|
|
16,981 |
|
Current portion of operating lease liabilities |
|
6,414 |
|
|
|
7,500 |
|
Current portion of other liabilities |
|
� |
|
|
|
19 |
|
Total current liabilities |
|
76,433 |
|
|
|
78,633 |
|
Deferred tax liabilities |
|
1,301 |
|
|
|
1,227 |
|
Acquisition-related contingent consideration, net of current portion |
|
573 |
|
|
|
561 |
|
Operating lease liabilities, net of current portion |
|
44,232 |
|
|
|
43,237 |
|
Other liabilities |
|
508 |
|
|
|
411 |
|
Total liabilities |
|
123,047 |
|
|
|
124,069 |
|
Total stockholders� equity |
|
1,221,057 |
|
|
|
1,175,966 |
|
Total liabilities and stockholders� equity |
$ |
1,344,104 |
|
|
$ |
1,300,035 |
|
1. |
The condensed consolidated balance sheet at December 31, 2024 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, 2024, filed with the Securities and Exchange Commission on February 28, 2025. |
VERACYTE, INC. |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(Unaudited) |
|||||||
(In thousands) |
|||||||
|
|
|
|
||||
|
Six Months Ended June 30, |
||||||
|
2025 |
|
2024 |
||||
Operating activities |
|
|
|
||||
Net income |
$ |
6,067 |
|
|
$ |
3,870 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
10,851 |
|
|
|
11,328 |
|
Loss on disposal of property, plant and equipment |
|
15 |
|
|
|
68 |
|
Stock-based compensation |
|
21,943 |
|
|
|
17,873 |
|
Deferred income taxes |
|
74 |
|
|
|
23 |
|
Noncash lease expense |
|
1,600 |
|
|
|
2,287 |
|
Revaluation of acquisition-related contingent consideration |
|
(2,879 |
) |
|
|
863 |
|
Effect of foreign currency on operations |
|
(5,050 |
) |
|
|
896 |
|
Impairment loss |
|
20,505 |
|
|
|
429 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(4,283 |
) |
|
|
(10,086 |
) |
Supplies and inventory |
|
(2,863 |
) |
|
|
(3,266 |
) |
Prepaid expenses and other current assets |
|
(5,460 |
) |
|
|
(2,183 |
) |
Other assets |
|
(1,389 |
) |
|
|
(1,213 |
) |
Operating lease liabilities |
|
(1,186 |
) |
|
|
(2,446 |
) |
Accounts payable |
|
3,113 |
|
|
|
(1,706 |
) |
Accrued liabilities and deferred revenue |
|
(2,091 |
) |
|
|
3,872 |
|
Net cash provided by operating activities |
|
38,967 |
|
|
|
20,609 |
|
Investing activities |
|
|
|
||||
Acquisition of C2i, net of cash acquired |
|
� |
|
|
|
5,012 |
|
Purchase of short-term investments |
|
(99,998 |
) |
|
|
� |
|
Proceeds from maturity of short-term investments |
|
51,061 |
|
|
|
� |
|
Purchases of property, plant and equipment |
|
(3,105 |
) |
|
|
(4,904 |
) |
Net cash (used in) provided by investing activities |
|
(52,042 |
) |
|
|
108 |
|
Financing activities |
|
|
|
||||
Payment of taxes on vested restricted stock units |
|
(11,831 |
) |
|
|
(5,135 |
) |
Proceeds from the exercise of common stock options and employee stock purchases |
|
4,781 |
|
|
|
4,260 |
|
Net cash used in financing activities |
|
(7,050 |
) |
|
|
(875 |
) |
Increase (decrease) in cash, cash equivalents and restricted cash |
|
(20,125 |
) |
|
|
19,842 |
|
Effect of foreign currency on cash, cash equivalents and restricted cash |
|
647 |
|
|
|
(169 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
(19,478 |
) |
|
|
19,673 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
240,631 |
|
|
|
217,330 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
221,153 |
|
|
$ |
237,003 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
|||||||
(Unaudited) |
|||||||
(In thousands) |
|||||||
|
|
|
|
||||
|
June 30, |
|
December 31, |
||||
|
2025 |
|
2024 |
||||
Cash and cash equivalents |
$ |
219,499 |
|
$ |
239,087 |
||
Restricted cash |
|
1,654 |
|
|
|
1,544 |
|
Total cash, cash equivalents and restricted cash |
$ |
221,153 |
|
|
$ |
240,631 |
|
VERACYTE, INC. |
|||||||||||||||
RECONCILIATION OF |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(In thousands) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Reconciliation of Non-GAAP Cost of Revenue: |
|
|
|
|
|
|
|
||||||||
GAAP cost of testing revenue |
$ |
32,407 |
|
|
$ |
27,920 |
|
|
$ |
60,667 |
|
|
$ |
53,899 |
|
Stock-based compensation expense |
|
(542 |
) |
|
|
(497 |
) |
|
|
(988 |
) |
|
|
(887 |
) |
Acquisition related expenses (1) |
|
� |
|
|
|
� |
|
|
|
� |
|
|
|
(60 |
) |
Other adjustments (2) |
|
� |
|
|
|
� |
|
|
|
� |
|
|
|
(6 |
) |
Non-GAAP cost of testing revenue |
$ |
31,865 |
|
|
$ |
27,423 |
|
|
$ |
59,679 |
|
|
$ |
52,946 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP cost of product revenue |
|
1,749 |
|
|
|
1,874 |
|
|
|
3,171 |
|
|
|
4,518 |
|
Stock-based compensation expense |
|
(1 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
Acquisition related expenses (1) |
|
� |
|
|
|
� |
|
|
|
� |
|
|
|
� |
|
Other adjustments (2) |
|
(32 |
) |
|
|
� |
|
|
|
(32 |
) |
|
|
� |
|
Non-GAAP cost of product revenue |
$ |
1,716 |
|
|
$ |
1,873 |
|
|
$ |
3,137 |
|
|
$ |
4,516 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP cost of biopharmaceutical and other revenue |
|
3,572 |
|
|
|
3,812 |
|
|
|
6,270 |
|
|
|
6,650 |
|
Stock-based compensation expense |
|
(65 |
) |
|
|
(106 |
) |
|
|
(138 |
) |
|
|
(202 |
) |
Acquisition related expenses (1) |
|
� |
|
|
|
� |
|
|
|
� |
|
|
|
� |
|
Other adjustments (2) |
|
� |
|
|
|
� |
|
|
|
� |
|
|
|
� |
|
Non-GAAP cost of biopharmaceutical and other revenue |
$ |
3,507 |
|
|
$ |
3,706 |
|
|
$ |
6,132 |
|
|
$ |
6,448 |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of Non-GAAP Gross Margin: |
|
|
|
|
|
|
|
||||||||
GAAP Gross Profit |
$ |
89,769 |
|
|
$ |
77,913 |
|
|
$ |
169,277 |
|
|
$ |
140,381 |
|
GAAP Gross Margin |
|
69.0 |
% |
|
|
68.1 |
% |
|
|
69.2 |
% |
|
|
66.4 |
% |
Amortization of intangible assets |
|
2,667 |
|
|
|
2,909 |
|
|
|
5,252 |
|
|
|
5,824 |
|
Stock-based compensation expense |
|
608 |
|
|
|
604 |
|
|
|
1,128 |
|
|
|
1,091 |
|
Acquisition related expenses (1) |
|
� |
|
|
|
� |
|
|
|
� |
|
|
|
60 |
|
Other adjustments (2) |
|
32 |
|
|
|
� |
|
|
|
32 |
|
|
|
6 |
|
Non-GAAP Gross Profit |
$ |
93,076 |
|
|
$ |
81,426 |
|
|
$ |
175,689 |
|
|
$ |
147,362 |
|
Non-GAAP Gross Margin |
|
71.5 |
% |
|
|
71.2 |
% |
|
|
71.8 |
% |
|
|
69.7 |
% |
1. |
Includes transaction-related expenses. For the six months ended June 30, 2024, adjustments consist primarily of transaction-related expenses associated with the acquisition of C2i Genomics. |
|
2. |
For the three months ended June 30, 2025, and six months ended June 30, 2025, adjustments include expenses related to Veracyte SAS investment review. For the six months ended June 30, 2024, adjustments include expenses related to restructuring cost associated with portfolio prioritization. |
VERACYTE, INC. |
|||||||||||||||
RECONCILIATION OF |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(In thousands) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Reconciliation of Non-GAAP Operating Expenses: |
|
|
|
|
|
|
|
||||||||
GAAP research and development |
$ |
16,264 |
|
|
$ |
16,465 |
|
|
$ |
33,984 |
|
|
$ |
32,430 |
|
Stock-based compensation expense |
|
(2,008 |
) |
|
|
(1,895 |
) |
|
|
(4,074 |
) |
|
|
(3,658 |
) |
Acquisition related expenses (1) |
|
� |
|
|
|
23 |
|
|
|
� |
|
|
|
(397 |
) |
Other adjustments (2) |
|
� |
|
|
|
2 |
|
|
|
� |
|
|
|
(276 |
) |
Non-GAAP research and development |
$ |
14,256 |
|
|
$ |
14,595 |
|
|
$ |
29,910 |
|
|
$ |
28,099 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP sales and marketing |
$ |
25,316 |
|
|
$ |
24,216 |
|
|
$ |
49,770 |
|
|
$ |
47,998 |
|
Stock-based compensation expense |
|
(2,198 |
) |
|
|
(2,142 |
) |
|
|
(4,156 |
) |
|
|
(3,235 |
) |
Acquisition related expenses (1) |
|
� |
|
|
|
� |
|
|
|
� |
|
|
|
(124 |
) |
Other adjustments (2) |
|
� |
|
|
|
(194 |
) |
|
|
� |
|
|
|
(1,094 |
) |
Non-GAAP sales and marketing |
$ |
23,118 |
|
|
$ |
21,880 |
|
|
$ |
45,614 |
|
|
$ |
43,545 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP general and administrative |
$ |
32,331 |
|
|
$ |
31,745 |
|
|
$ |
66,139 |
|
|
$ |
57,955 |
|
Stock-based compensation expense |
|
(6,171 |
) |
|
|
(5,213 |
) |
|
|
(12,585 |
) |
|
|
(9,889 |
) |
Acquisition related expenses (1) |
|
925 |
|
|
|
(1,116 |
) |
|
|
(427 |
) |
|
|
(4,585 |
) |
Other adjustments (2) |
|
(4,144 |
) |
|
|
(2,854 |
) |
|
|
(7,838 |
) |
|
|
(3,120 |
) |
Non-GAAP general and administrative |
$ |
22,941 |
|
|
$ |
22,562 |
|
|
$ |
45,289 |
|
|
$ |
40,361 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP total operating expenses |
$ |
95,037 |
|
|
$ |
73,307 |
|
|
$ |
171,641 |
|
|
$ |
140,431 |
|
Amortization of intangible assets |
|
(621 |
) |
|
|
(881 |
) |
|
|
(1,243 |
) |
|
|
(1,619 |
) |
Stock-based compensation expense |
|
(10,377 |
) |
|
|
(9,250 |
) |
|
|
(20,815 |
) |
|
|
(16,782 |
) |
Acquisition related expenses (1) |
|
925 |
|
|
|
(1,093 |
) |
|
|
(427 |
) |
|
|
(5,536 |
) |
Other adjustments (2) |
|
(24,649 |
) |
|
|
(3,046 |
) |
|
|
(28,343 |
) |
|
|
(4,490 |
) |
Non-GAAP total operating expenses |
$ |
60,315 |
|
|
$ |
59,037 |
|
|
$ |
120,813 |
|
|
$ |
112,004 |
|
1. |
Includes transaction-related expenses as well as post-combination compensation expenses. For the three months ended June 30, 2025, adjustments consist primarily of transaction-related expenses associated with contingent consideration related to the NanoString Technologies, Inc. (“NanoString�) transaction ( |
|
2. |
For the three months ended June 30, 2025, adjustments primarily include expenses related to Veracyte SAS impairment loss ( |
VERACYTE, INC. |
|||||||||||||||
RECONCILIATION OF |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(In thousands) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Reconciliation of Adjusted EBITDA: |
|
|
|
|
|
|
|
||||||||
GAAP Net Income (Loss) |
$ |
(980 |
) |
|
$ |
5,734 |
|
|
$ |
6,067 |
|
|
$ |
3,870 |
|
GAAP Net Income (Loss) as a % of Revenue |
|
(0.8 |
%) |
|
|
5.0 |
% |
|
|
2.5 |
% |
|
|
1.8 |
% |
Amortization of intangible assets |
|
3,288 |
|
|
|
3,790 |
|
|
|
6,495 |
|
|
|
7,443 |
|
Depreciation expense |
|
2,201 |
|
|
|
1,948 |
|
|
|
4,356 |
|
|
|
3,885 |
|
Stock-based compensation expense |
|
10,985 |
|
|
|
9,854 |
|
|
|
21,943 |
|
|
|
17,873 |
|
Acquisition related expenses (1) |
|
(925 |
) |
|
|
1,093 |
|
|
|
427 |
|
|
|
5,596 |
|
Other expense (income), net (2) |
|
(3,170 |
) |
|
|
(3,052 |
) |
|
|
(6,146 |
) |
|
|
(6,313 |
) |
Other adjustments (3) |
|
22,147 |
|
|
|
3,046 |
|
|
|
24,738 |
|
|
|
4,496 |
|
Income tax expense (benefit) |
|
2,230 |
|
|
|
1,627 |
|
|
|
2,611 |
|
|
|
1,583 |
|
Adjusted EBITDA |
$ |
35,776 |
|
|
$ |
24,040 |
|
|
$ |
60,491 |
|
|
$ |
38,433 |
|
Adjusted EBITDA as a % of Revenue |
|
27.5 |
% |
|
|
21.0 |
% |
|
|
24.7 |
% |
|
|
18.2 |
% |
|
|
|
|
|
|
|
|
||||||||
Reconciliation of Non-GAAP Net Income (Loss) |
|
|
|
|
|
|
|
||||||||
GAAP Net Income (Loss) |
$ |
(980 |
) |
|
$ |
5,734 |
|
|
$ |
6,067 |
|
|
$ |
3,870 |
|
Amortization of intangible assets |
|
3,288 |
|
|
|
3,790 |
|
|
|
6,495 |
|
|
|
7,443 |
|
Stock-based compensation expense |
|
10,985 |
|
|
|
9,854 |
|
|
|
21,943 |
|
|
|
17,873 |
|
Acquisition related expenses (1) |
|
(925 |
) |
|
|
1,093 |
|
|
|
427 |
|
|
|
5,596 |
|
Other adjustments (3) |
|
22,147 |
|
|
|
3,046 |
|
|
|
24,738 |
|
|
|
4,496 |
|
Tax adjustments (4) |
|
437 |
|
|
|
(114 |
) |
|
|
(242 |
) |
|
|
(1,246 |
) |
Non-GAAP Net Income |
$ |
34,952 |
|
|
$ |
23,403 |
|
|
$ |
59,428 |
|
|
$ |
38,032 |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of Non-GAAP Earnings per Share |
|
|
|
|
|
|
|
||||||||
Diluted earnings per share, GAAP |
$ |
(0.01 |
) |
|
$ |
0.07 |
|
|
$ |
0.08 |
|
|
$ |
0.05 |
|
Amortization of intangible assets |
|
0.04 |
|
|
|
0.05 |
|
|
|
0.08 |
|
|
|
0.10 |
|
Stock-based compensation expense |
|
0.14 |
|
|
|
0.13 |
|
|
|
0.27 |
|
|
|
0.23 |
|
Acquisition related expenses (1) |
|
(0.01 |
) |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.07 |
|
Other adjustments (3) |
|
0.28 |
|
|
|
0.04 |
|
|
|
0.31 |
|
|
|
0.06 |
|
Tax adjustments (4) |
|
0.01 |
|
|
|
� |
|
|
|
� |
|
|
|
(0.02 |
) |
Rounding and impact of dilutive shares |
|
(0.01 |
) |
|
|
� |
|
|
|
(0.01 | ) |
|
|
0.01 |
|
Diluted earnings per share, non-GAAP |
$ |
0.44 |
|
|
$ |
0.30 |
|
|
$ |
0.74 |
|
|
$ |
0.50 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding used in computing diluted earnings per share |
|
|
|
|
|
|
|
||||||||
Diluted, GAAP |
|
78,391,502 |
|
|
|
77,163,149 |
|
|
|
79,905,121 |
|
|
|
76,600,079 |
|
Dilutive effect of equity awards (5) |
|
1,057,711 |
|
|
|
� |
|
|
|
� |
|
|
|
� |
|
Diluted, non-GAAP |
|
79,449,213 |
|
|
|
77,163,149 |
|
|
|
79,905,121 |
|
|
|
76,600,079 |
|
1. |
Includes transaction-related expenses as well as post-combination compensation expenses. For the three months ended June 30, 2025, adjustments consist primarily of transaction-related expenses associated with contingent consideration related to NanoString ( |
|
2. |
Includes interest income and income related to research tax credits. |
|
3. |
For the three months ended June 30, 2025, adjustments primarily include expenses related to Veracyte SAS impairment loss ( |
|
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. |
View source version on businesswire.com:
Investors:
Shayla Gorman
[email protected]
619-393-1545
Media:
Tracy Morris
[email protected]
650-380-4413
Source: Veracyte, Inc.