Fubotv earnings beat by $0.10, revenue topped estimates
Introduction & Market Context
Veracyte Inc . (NASDAQ:VCYT) presented its Q1 2025 earnings results on May 7, 2025, showcasing strong revenue growth and a significant transition to profitability. The cancer diagnostics company reported total revenue of $114 million, representing an 18% year-over-year increase, while achieving positive GAAP net income for the quarter. The company’s stock responded positively, rising 4.47% in aftermarket trading to $32.22, following a 0.92% gain during regular trading hours.
Quarterly Performance Highlights
Veracyte delivered robust financial results across all key metrics in Q1 2025. Total (EPA:TTEF) revenue reached $114 million, an 18% increase from $97 million in Q1 2024. Testing revenue, which represents the company’s core business, grew 19% to $107 million, driven by a 23% increase in testing volume to 38,100 tests.
As shown in the following chart of quarterly revenue and volume growth:
The company achieved a significant milestone by posting a GAAP net income of $7.0 million, compared to a loss of $1.9 million in the same period last year. This transition to profitability was accompanied by substantial margin improvement, with adjusted EBITDA margin expanding to 21.6% from 14.9% in Q1 2024.
The following chart illustrates this profitability growth:
Cash and short-term investments increased to $287 million, up from $209 million in Q1 2024, strengthening the company’s financial position for future investments and strategic initiatives.
Strategic Growth Initiatives
Veracyte outlined four key strategic growth drivers to expand its platform reach, focusing on both near-term execution and long-term innovation. These strategies include growing US CLIA tests, serving more of the patient journey, expanding geographically, and solving new cancer challenges.
The company’s strategic roadmap is illustrated in this slide:
Decipher, Veracyte’s genomic test for prostate cancer, continued its strong performance with 37% year-over-year growth, reaching 22,600 tests in Q1 2025. The company reported a record number of ordering providers, up more than 20% year-over-year, with increased ordering per physician. The March 2025 NCCN guideline update has driven further momentum extending into April.
The following chart shows Decipher’s consistent growth trajectory:
Afirma, the company’s genomic test for thyroid cancer, also showed solid performance with 10% year-over-year growth to 15,500 tests in Q1 2025. The company noted increased utilization per account and plans to reduce costs by launching Afirma onto version 2 of its transcriptome platform this summer.
Afirma’s quarterly volume trend is shown here:
On the international front, Veracyte announced that its French subsidiary, Veracyte SAS, has filed for bankruptcy after the parent company decided to stop funding its operations. The company expressed confidence in resolving these proceedings by year-end 2025, while continuing to make progress on its IVD (in vitro diagnostic) product launches for international markets.
Product Pipeline and Future Catalysts
Veracyte presented a comprehensive timeline of product catalysts that will drive growth through 2026 and beyond. Key milestones include the full launch of Decipher for metastatic patients, the launch of Afirma on the v2 transcriptome platform in the second half of 2025, and the commercial launch of its MRD (minimal residual disease) test for muscle invasive bladder cancer in the first half of 2026.
The company’s product development timeline is illustrated in this comprehensive roadmap:
The company is also making progress on its nasal swab test for lung cancer detection, with approximately 95% of enrollment complete in the NIGHTINGALE pivotal trial. Enrollment is expected to be completed in Q3 2025.
Additionally, Veracyte is developing a Prosigna LDT (laboratory developed test) for breast cancer, targeting the approximately 225,000 patients eligible for testing annually in the US. This test is expected to be commercially available by mid-2026.
Financial Outlook and Guidance
Veracyte raised its financial guidance for 2025, projecting testing revenue between $470 million and $480 million, representing 12-15% year-over-year growth. When adjusting for the discontinuation of the Envisia test, which contributed approximately $6 million in 2024, the adjusted growth rate is 14-16%.
The company’s revenue outlook is presented in this chart:
Notably, Veracyte increased its 2025 adjusted EBITDA margin expectations to 22.5%, up from the previous guidance of 21.6%. This represents a nearly 200 basis point improvement from the 2024 adjusted EBITDA margin of 20.6%, reflecting the company’s focus on operational efficiency and financial discipline.
Looking beyond 2025, Veracyte outlined its expectations for 2026-2028, including the launch of multiple new products, expansion of its MRD platform to additional indications, and enhanced profitability with a 25% adjusted EBITDA margin goal.
Conclusion
Veracyte’s Q1 2025 results demonstrate strong execution across its core business segments, with significant improvements in financial performance and a clear strategic roadmap for future growth. The company’s transition to profitability, coupled with robust revenue and volume growth, positions it well for continued success in the cancer diagnostics market.
While challenges remain, particularly with the restructuring of its French operations, Veracyte’s strong cash position and expanding product portfolio provide a solid foundation for achieving its long-term growth and profitability targets. Investors will be closely watching the company’s execution on its product development timeline and international expansion strategy in the coming quarters.
Full presentation:
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