Myriad Genetics (MYGN) Q2 Revenue Up 6%

Myriad Genetics (MYGN -2.76%), a molecular diagnostics and precision medicine company known for genetic testing in oncology, women’s health, and mental health, released its Q2 2025 earnings on August 5, 2025. The most important news was that revenue (GAAP) reached $213.1 million, beating the consensus GAAP estimate of $201.9 million. Adjusted earnings per share (EPS, Non-GAAP) came in at $0.05, also above analyst expectations of $(0.01) non-GAAP EPS. However, the headline figures were overshadowed by a major impairment charge of $316.7 million (GAAP), resulting in a GAAP net loss. Overall, the quarter marked a modest return to revenue growth, as GAAP revenue grew 1% year-over-year. Gross margin of 71.2% increased over 160 basis points year-over-year, and optimism for new product lines, In Q1 2025, revenue declined by 3% year-over-year, but excluding headwinds of $16 million, revenue increased 5% year-over-year. In Q2 2025, revenue increased by 1% year-over-year, and excluding headwinds of $9.5 million, revenue increased 5% year-over-year. Cash flow used in operations was $16.3 million in Q1 2025 and $13.6 million in Q2 2025.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

Company Overview and Strategic Priorities

Myriad Genetics specializes in molecular diagnostic testing, offering genetic screening and analysis to help inform medical decisions in cancer, women’s health, and mental health. Its products are used by healthcare providers to identify hereditary risks, guide treatment options, and predict patient response to therapies. The company’s revenue model relies heavily on test volume, payer reimbursement, and ongoing innovation in test development.

Myriad Genetics has recently sharpened its focus on the so-called Cancer Care Continuum strategy, which emphasizes investment in oncology and next-generation diagnostic testing. The company is prioritizing research and development, partnerships with healthcare systems, and expanding its electronic medical records (EMR) integrations, especially in oncology and women's health. Key success factors include technological innovation, securing insurance reimbursement, market expansion, and maintaining a steady pipeline of new products for clinicians and patients.

Quarter in Review: Financial and Operational Highlights

Revenue (GAAP) increased to $213.1 million, exceeding consensus estimates by $11.2 million, or 5.6% (GAAP). The positive variance was driven by a combination of product mix, improving average revenue per test trends, greater laboratory efficiencies, favorable pricing, and expanded payer coverage, rather than higher test volumes. Adjusted operating income rose to $8.6 million, up approximately 16% from Q2 2024, as gross margin (GAAP) improved to 71.2%. This margin expansion was attributed to product mix and laboratory efficiencies. Adjusted EPS reached $0.05, and beating the average forecast on a non-GAAP basis.

The Oncology segment generated $85.5 million in revenue. Within this, hereditary cancer testing in oncology generated $54.1 million, with volume up 9% year-over-year, and test volumes increased by 10% year-over-year. The MyRisk with RiskScore, an advanced hereditary cancer test for oncology, saw its testing volume climb 14% year-over-year. Tumor Profiling, which assists doctors in understanding the genetic profile of a patient’s cancer, brought in $31.4 million (GAAP)—a decline, primarily due to the sale of the EndoPredict business.

Women's Health reported $89.8 million in revenue. Hereditary cancer testing for women who have not had a cancer diagnosis was up 1% to $42.2 million, while prenatal testing revenue rose 7% year-over-year to $47.6 million. However, there was a notable decline in prenatal test volume (down 8%) caused by workflow issues as the company rolled out a new order management system. The company also launched early access to FirstGene, a combined carrier and noninvasive prenatal screen, through a clinical study.

The Pharmacogenomics segment, which includes the GeneSight test that helps guide psychiatric medication selection based on a patient’s genetic makeup, posted $37.8 million in revenue—a decrease of 12% due to UnitedHealthcare dropping coverage. GeneSight test volume grew 5% year-over-year, and the loss of this payer caused revenue to fall sharply. The company recognized a $316.7 million non-cash impairment charge, mainly on its Women’s Health and Pharmacogenomics businesses (GAAP).

Total test volume was 384,000, a slight decline from the previous year. Most test volume increases were offset by declines in tumor profiling and prenatal tests.

In terms of cash flow, the company reported negative adjusted free cash flow of $(17.1) million compared to a positive figure last year. Cash and equivalents at period end stood at $74.4 million, and the company secured a new $200 million credit facility on July 31, 2025, replacing its previous asset-based loan and bolstering short-term liquidity. No dividend was declared. MYGN does not currently pay a dividend.

Product Lines and Segment Updates

The company's portfolio spans several major categories. Oncology includes hereditary cancer tests like MyRisk with RiskScore, prostate cancer tests like Prolaris, and future molecular residual disease (MRD) tests which track cancer recurrence at a molecular level. Women's Health features hereditary cancer screens for women, as well as prenatal screening solutions such as Prequel and FirstGene. In Pharmacogenomics, the focus is on GeneSight, a test that helps psychiatrists tailor medication for depression and related conditions. Tumor profiling tests analyze genetic mutations within tumors to guide cancer treatment.

This period saw strong hereditary cancer performance in the Oncology and Women's Health segments, helping offset lower volumes elsewhere. Progress in product innovation included positive data for the MRD test announced at the recent American Society of Clinical Oncology (ASCO) meeting and plans to launch both MRD and the AI-enabled Prolaris prostate cancer test in 2026. Despite technological advances, The pharmacogenomics business remains challenged by payer headwinds, with UnitedHealthcare’s exit causing a sizable revenue decline; specifically, pharmacogenomics revenue declined by 20% year-over-year in Q1 2025 due to UnitedHealthcare’s reduced coverage of GeneSight.

Payer and pricing trends were generally constructive in oncology and prenatal health. The company worked to expand digital payer initiatives and streamline provider integration. However, Total prenatal test volumes fell 8% year-over-year, primarily blamed on system changes, not on weakening demand, according to management. In addition, new digital workflow integrations and EMR partnerships have been highlighted as crucial to support growth.

Expense discipline was evident, with adjusted operating expenses rising modestly to $143.8 million. The company targeted discretionary spending cuts, increased efficiency, and redirected investment toward high-priority product development. The $316.7 million impairment recognized mainly reflects a reduction in recorded asset values for Women’s Health and Pharmacogenomics, prompted by a decrease in market capitalization and updated estimates for longer-term profitability, but it does undermine confidence in the trajectory of some parts of the business. No one-time dividends or changes to shareholder distributions were announced.

To support its liquidity, the company closed a new $200 million credit facility on July 31, 2025, providing additional flexibility and replacing its previous lending arrangement. Adjusted free cash flow turned negative, while ending cash balances (GAAP) declined by about 27.3% since the previous fiscal year-end (from $102.4 million at December 31, 2024, to $74.4 million at June 30, 2025).

Outlook and What to Watch For

Following the quarter, management raised full-year FY2025 revenue guidance to a range of $818 million to $828 million, up $8 million at the midpoint from the previous forecast. Gross margin guidance moved higher as well, now expected to be between 69.5% and 70.0% for full-year 2025, up from the prior range of 68.5% to 69.5%. The company reaffirmed its expectation for adjusted EPS to be between $(0.02) and $0.02 for full-year 2025. Adjusted EPS guidance reflects second quarter results, interest expense from the new credit facility, and the current business outlook. Adjusted EBITDA guidance was raised to a range of $27 million to $33 million for full-year 2025. Management cited second quarter results, an updated outlook, and average revenue per test trends as the basis for the increased 2025 outlook.

Investors should monitor ongoing cash utilization, volume trends in prenatal and hereditary cancer screening, the sustainability of pricing gains, and whether payer pressure remains contained, especially in the mental health product line.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.