Veracyte Inc. reported fourth‑quarter and full‑year 2025 results that surpassed analyst expectations, delivering total revenue of $140.6 million and a non‑GAAP diluted earnings per share of $0.53, a beat of $0.12 or 29% over the consensus estimate of $0.41.
Testing revenue, the company’s core business, rose 21% year‑over‑year to $135.8 million, driven by strong demand for its Decipher prostate test, which generated $85.6 million, and its Afirma thyroid test, which produced $47.9 million. Compared with Q4 2024 revenue of $118.6 million, the current quarter represents a 18% increase, while full‑year 2024 revenue of $445.8 million provides context for the 2025 growth trajectory.
Operating cash flow climbed to $52.6 million, reflecting the company’s ability to generate cash from its high‑margin testing portfolio. Gross margin improved to 75.1% on a non‑GAAP basis, a lift of 580 basis points from the prior year, largely attributable to the v2 transcriptome transition that lowered costs and the benefit of prior‑period collections. Adjusted EBITDA margin reached 27%, exceeding the 25% target set for 2025 and underscoring effective cost management.
Veracyte reaffirmed its 2026 guidance, projecting total revenue of $570 million to $582 million and an adjusted EBITDA margin of roughly 25%. The company also confirmed plans to launch its Prosigna breast cancer LDT and TrueMRD minimal residual disease platform later in 2026, positioning it to expand its footprint in breast and bladder cancer diagnostics.
Management highlighted the results, with CEO Marc Stapley stating, "Q4 capped off another outstanding year of strong execution for Veracyte, with performance across our core businesses that reinforces both the durability of our growth model and the opportunities ahead." CFO Rebecca Chambers added, "Q4 was another exceptional quarter with $140.6 million in revenue, an increase of 19% over the prior year period." Stapley also noted, "Adjusted EBITDA margin exceeded 27% in 2025, not only reaching but surpassing our 25% target more than a year ahead of plan." These comments signal confidence in the company’s execution and its ability to sustain growth while investing in new product launches.
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