Veracyte (VCYT) Q4 2025 Earnings Call Transcript

The Motley Fool

by newsfeedback@fool.com (Motley Fool Transcribing)

February 25, 2026

AI-Generated Deep Dive Summary

Veracyte (VCYT) delivered strong financial results for its Q4 2025 earnings period, showcasing robust revenue growth and operational efficiency. The company reported total revenue of $140.6 million, a significant 19% year-over-year increase driven by its core testing business. Testing revenue alone reached $135.8 million, up 21%, with standout performances from Decipher (up 27%) and Afirma (up 16%). This growth was further supported by a 16% rise in total test volume, reaching approximately 45,500 tests. The average selling price (ASP) also increased to $2,984, a 4% year-over-year gain, though normalized ASP showed a modest 1% uptick after accounting for prior period collections. Veracyte’s profitability improved significantly, with non-GAAP gross margin expanding to 75.1%, an impressive 580 basis point increase compared to the previous year. Adjusted EBITDA for the quarter was $42.3 million, yielding a 30.1% margin—a figure that exceeded internal targets and highlighted the company’s operational efficiency. The strong cash flow generation of $52.6 million further solidified its financial position, ending the period with $412.9 million in cash and cash equivalents. Looking ahead, Veracyte provided guidance for 2026, forecasting total revenue between $570 million and $582 million, representing 10%-13% growth. Testing revenue is expected to grow at a faster pace of 14%-16%, with Decipher leading the charge at around 20% growth and Afirma following in the mid- to high-single digits. Adjusted EBITDA margin is targeted at approximately 25%. The company also emphasized its strategic initiatives, including two major product launches by summer: TRUE MRD for muscle-invasive bladder cancer and Prosigna as a laboratory developed test (LDT) for early-stage breast cancer. Veracyte’s leadership highlighted the importance of market penetration, with Decipher at 33% and Afirma at 38%. The company is poised to further expand its presence in these core segments. Additionally

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Originally published on The Motley Fool on 2/25/2026