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Investing.com -- Veracyte Inc (NASDAQ:VCYT) shares jumped 6% after the cancer diagnostics company reported second-quarter earnings that far exceeded analyst expectations, with adjusted earnings per share of $0.44 compared to the $0.11 consensus estimate.
The company posted revenue of $130.2 million for the quarter ended June 30, 2025, a 14% increase YoY and well above the analyst consensus of $121.1 million. Testing revenue, which comprises the bulk of Veracyte’s business, grew 14% to $122.3 million, driven primarily by its Decipher prostate cancer test, which saw revenue surge 24% to $76.3 million.
"Testing growth continues to exceed our expectations, driven by Decipher which achieved its thirteenth consecutive quarter of over 25% year-over-year volume growth," said Marc Stapley, Veracyte’s chief executive officer.
Total (EPA:TTEF) test volume increased 15% to 44,966 tests, with Decipher volume growing 28% to approximately 25,500 tests and Afirma thyroid test volume rising 8% to approximately 16,950 tests.
The company reported a GAAP net loss of $1.0 million, which included $20.5 million in one-time impairment charges related to the sale and liquidation proceedings of its French subsidiary. Adjusted EBITDA reached $35.8 million, representing 27.5% of revenue, a significant improvement from 21.0% in the same period last year.
Following these strong results, Veracyte raised its full-year 2025 testing revenue guidance to $477-483 million, representing 14-15% YoY growth, and initiated total revenue guidance of $496-504 million, above the analyst consensus of $491.9 million. The company also increased its adjusted EBITDA margin guidance to 23.5% from 22.5%.
Veracyte generated $33.6 million in cash from operations during the quarter, ending with $320.7 million in cash, cash equivalents, and short-term investments.
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