Myriad Genetics’ third quarter saw revenue and adjusted profit in line with Wall Street expectations, but the market reacted negatively due to ongoing challenges in average revenue per test and operational headwinds. Management cited continued strong volume growth in the oncology segment, particularly for its MyRisk hereditary cancer test, as a positive. CEO Samraat Raha noted, “MyRisk continues to see positive demand in the market and supports our profitable growth journey,” while also acknowledging the impact of payer mix and policy changes. The company faced pressure from reduced coverage for its GeneSight mental health test and a divested European business, but highlighted improved execution and stabilization in core test volumes.
Is now the time to buy MYGN? Find out in our full research report (it’s free for active Edge members).
Myriad Genetics (MYGN) Q3 CY2025 Highlights:
- Revenue: $205.7 million vs analyst estimates of $204.8 million (3.6% year-on-year decline, in line)
- Adjusted EPS: $0 vs analyst estimates of -$0.01 ($0.01 beat)
- Adjusted EBITDA: $10.3 million vs analyst estimates of $5.57 million (5% margin, 84.8% beat)
- The company reconfirmed its revenue guidance for the full year of $823 million at the midpoint
- EBITDA guidance for the full year is $30 million at the midpoint, above analyst estimates of $27.52 million
- Operating Margin: -11.3%, down from -9.4% in the same quarter last year
- Market Capitalization: $587.2 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Myriad Genetics’s Q3 Earnings Call
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Puneet Souda (Leerink Partners) asked about balancing commercial investment with profitability. CEO Samraat Raha and CFO Ben Wheeler reiterated that organizational redesign will fund growth in cancer care while maintaining a focus on profit improvement.
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David Westenberg (TD Cowen) inquired about prenatal market share and operational improvements. Raha explained that while prenatal volumes were flat, customer losses from earlier operational issues are being addressed, and FirstGene is expected to support future growth.
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Kyle Boucher (TD Cowen) questioned whether hereditary cancer testing volume growth was due to catch-up from prior workflow issues. Raha clarified improvements came from better customer workflows and EMR integration, not a temporary rebound.
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Lauren Timmins (Jefferies) sought clarification on average selling price declines in hereditary cancer tests and future KPIs. CFO Ben Wheeler cited payer mix, biopharma revenue lumpiness, and UnitedHealthcare’s policy as primary ASP drivers, while Mark Verratti highlighted plans to track expanded provider base and multi-product adoption.
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Ricki Levitus (Guggenheim) asked about turnaround times for Prequel and FirstGene. COO Mark Verratti confirmed both tests offer competitive turnaround times, with FirstGene expected to align with Prequel at launch.
Catalysts in Upcoming Quarters
Going forward, our team will be watching (1) the commercial uptake and clinical impact of the expanded MyRisk hereditary cancer panel, (2) the pace and success of the FirstGene prenatal screening launch and associated market share shifts, and (3) the effect of new strategic partnerships on the breadth and adoption of Myriad’s oncology portfolio. Monitoring reimbursement trends and payer policy changes will also be important for assessing revenue and margin stability.
Myriad Genetics currently trades at $6.18, down from $8.14 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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