Key Highlights

  • Revenue of USD 151.75 million compares with an estimate of USD 147.13 million and USD 131.9 million a year earlier.
  • Adjusted EPS of USD 0.51 compares with an estimate of USD 0.41, while GAAP diluted EPS was USD 0.38.
  • Adjusted EBITDA was USD 41.2 million, or 27.2% of revenue, and GAAP Net Income was USD 31.5 million.
  • 2026 Revenue guidance stands at USD 590 million to USD 593 million; the prior upper bound was USD 596 million.

Veracyte (NASDAQ:VCYT) reported third quarter revenue of USD 151.75 million, compared with an estimate of USD 147.13 million and USD 131.9 million a year earlier. Adjusted EPS was USD 0.51 against an estimate of USD 0.41, and GAAP diluted EPS was USD 0.38. Chief executive Marc Stapley said Afirma outperformed while Decipher Prostate Volume was below management's own projections. The cancer diagnostics company paired the results with a USD 100 million share repurchase authorization.

Revenue, Volume and Margins

Testing revenue was USD 146.4 million, up 15% from USD 127.8 million, with Decipher Prostate at USD 92.3 million, up 12%, and Afirma at USD 51.5 million, up 19%. Product revenue was USD 4.6 million, up 40%, which the company attributed to adoption of Prosigna IVD after Phase III OPTIMA trial results were released at ASCO.

Total volume rose 15% to 52,744 tests, and testing volume rose 13% to 49,498 tests. That included approximately 29,900 Decipher Prostate tests and approximately 19,100 Afirma tests, with volume for each test up 12%.

GAAP gross Margin was 71%, against 69% a year earlier, and non-GAAP gross margin was 74%, against 73%. Operating expenses were USD 90.5 million against USD 68.3 million, and non-GAAP operating expenses were USD 72.9 million, up 24% from USD 58.6 million.

Earnings and Business Developments

GAAP net income was USD 31.5 million, or 20.8% of revenue, an increase of USD 12.4 million from the prior-year quarter. Non-GAAP diluted EPS of USD 0.51 was flat. Adjusted EBITDA of USD 41.2 million was up 4%.

Alongside the numbers, management listed several commercial developments. It acquired Convergent Genomics, adding a urinary tumor DNA testing platform for bladder cancer care. It secured Medicare reimbursement for the Prosigna Breast Risk of Recurrence test in eligible patients with early-stage hormone-receptor positive breast cancer. It also reported new predictive evidence for Decipher Prostate in treatment intensification decisions and said more than 1 million patients have been served by its tests.

Cash, Buyback and 2026 Guidance

Operating cash flow was USD 40.3 million in the quarter and USD 121.3 million for the first nine months. Cash, cash equivalents and short-term investments were USD 370.5 million at September 30.

The Board authorized a repurchase program for up to USD 100 million of common stock, running 12 months from the November 4 announcement. The company said it intends to fund the program from available cash, and the program does not obligate it to buy any set number of shares.

For 2026, management now guides to total revenue of USD 590 million to USD 593 million, described as 14% to 15% growth, against prior guidance of USD 590 million to USD 596 million. Testing revenue guidance is USD 571 million to USD 573 million, described as 16% growth, against prior guidance of USD 576 million to USD 582 million, with minimal contribution from recently launched tests. Adjusted EBITDA margin guidance remains greater than 26%.

Numbers in Context

Revenue of USD 151.75 million sits alongside adjusted EPS of USD 0.51, GAAP EPS of USD 0.38 and cash and short-term investments of USD 370.5 million.

Management named the Convergent Genomics urology platform, Prosigna Medicare coverage and further Decipher Prostate evidence as priorities for core Franchise growth, together with its breast and bladder strategies. It also pointed to the 12-month repurchase window and the revised 2026 revenue range as reference markers for the rest of the year.