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Jun 30
Veracyte Q2 2025 Earnings Report
Veracyte reported strong second quarter 2025 financial results, with significant revenue and volume growth across its key testing segments, particularly Decipher, and improved adjusted EBITDA.
Key Takeaways
Veracyte delivered a robust performance in the second quarter of 2025, with total revenue increasing by 14% year-over-year to $130.2 million, driven primarily by a 14% rise in testing revenue. The company achieved a GAAP net loss of $1.0 million, which included $20.5 million in one-time impairment charges related to its French subsidiary, but reported a strong adjusted EBITDA of $35.8 million, representing 27.5% of revenue. Volume growth was also significant, with total test volume up 15% and testing volume up 18%.
Total revenue increased by 14% year-over-year to $130.2 million, with testing revenue also growing by 14% to $122.3 million.
Decipher revenue surged by 24% to $76.3 million, and Decipher volume grew by 28% to approximately 25,500 tests, marking its thirteenth consecutive quarter of over 25% year-over-year volume growth.
The company reported a GAAP net loss of $1.0 million, impacted by $20.5 million in one-time impairment charges related to the French subsidiary proceedings.
Adjusted EBITDA significantly improved by 49% to $35.8 million, representing a healthy 27.5% of revenue, up from 21.0% in the same period last year.
Veracyte
Veracyte
Veracyte Revenue by Segment
Revenue by Segment
Testing Revenue
CapyFin.comProduct Revenue
CapyFin.comBiopharmaceutical and Other Revenue
CapyFin.com Forward Guidance
Veracyte is raising its full-year 2025 testing revenue guidance to $477 million to $483 million, representing 14% to 15% year-over-year growth. The company is also initiating full-year 2025 total revenue guidance of $496 million to $504 million, reflecting 11% to 13% year-over-year growth, and raising its adjusted EBITDA as a percentage of revenue guidance to 23.5% from 22.5%.
Positive Outlook
- Raised full-year 2025 testing revenue guidance to $477 million to $483 million, indicating strong confidence in continued testing growth.
- Testing revenue guidance implies 14% to 15% year-over-year growth, or 16% to 17% adjusting for the paused Envisia test.
- Initiated full-year 2025 total revenue guidance of $496 million to $504 million, reflecting 11% to 13% year-over-year growth.
- Raised guidance for adjusted EBITDA as a percentage of revenue in 2025 to 23.5% from 22.5%, indicating improved profitability expectations.
- Resolution of the French subsidiary proceedings provides clarity and allows for incremental investment in strategic portfolio.
Challenges Ahead
- The company is unable to provide a quantitative reconciliation of expected adjusted EBITDA to GAAP measures without unreasonable effort due to inherent difficulties in forecasting certain adjusting items.
- The guidance for total revenue and testing revenue, while raised, still represents a range, indicating some level of uncertainty.
- The impact of the paused Envisia test is noted as an adjustment to testing revenue growth, suggesting a drag on overall growth.
- Future financial performance is subject to various risks and uncertainties, including market acceptance of products, reimbursement, and global economic factors.
- The full impact of the French entity restructuring and liquidation proceedings on the 2025 financial outlook will be further detailed in the conference call.
Revenue & Expenses
Visualization of income flow from segment revenue to net income