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Exact Sciences shares plunge despite earnings beat

Published 06/08/2025, 22:00
Exact Sciences shares plunge despite earnings beat
EXAS
-0.95%

Investing.com -- Exact Sciences Corp. (NASDAQ:EXAS) shares tumbled 15.8% after the cancer screening company announced a licensing deal with Freenome, overshadowing strong second-quarter results that beat analyst expectations.

The company reported second-quarter revenue of $811.1 million, surpassing the analyst consensus of $773.8 million and representing a 16% increase YoY. Exact Sciences posted a narrower-than-expected loss of $0.01 per share, beating analyst estimates of a $0.13 loss. The company’s screening revenue, which includes its Cologuard tests, grew 18% to $628 million, while Precision Oncology revenue increased 9% to $183 million.

Despite the positive financial results, investors reacted negatively to Exact Sciences’ announcement that it would acquire exclusive U.S. rights to Freenome’s blood-based colorectal cancer screening tests for $75 million in cash, with potential additional payments of up to $700 million based on milestone achievements.

"The Exact Sciences team continues to build momentum, advancing our mission through earlier detection," said Kevin Conroy, chairman and CEO. "In the second quarter, we delivered answers to more patients than ever driven by strong momentum behind the successful launch of Cologuard Plus, powerful commercial execution, and exceptional customer satisfaction."

The company raised its full-year 2025 guidance, now expecting revenue between $3.13 billion and $3.17 billion, above the consensus estimate of $3.1 billion. Adjusted EBITDA guidance was also increased to between $455 million and $475 million, representing potential YoY growth of 44%.

Exact Sciences’ gross margin for the quarter was 69%, with adjusted gross margin at 72%. The company reported operating cash flow of $89 million and free cash flow of $47 million, ending the quarter with $858 million in cash, cash equivalents, and marketable securities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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