Myriad Genetics, Inc. Q4 FY2025 earnings call

Sam is satisfied with the progress made in 2025. The business ended 2025 well with strong revenue. MyRisk shows positive growth in oncology, Prolaris has accelerated volume growth. Prenatal is in a rebuild phase. Mental health's GeneSight continues to grow. Profitability in Q4 was strong with good adjusted gross margin and EBITDA. The company is advancing its cancer care continuum strategy, including launching the expanded MyRisk panel, preparing for Precise MRD commercial testing, and planning multiple product launches in 2026 such as AI-enabled Prolaris, Precise MRD for other indications, and FirstGene. The company is also investing over $35 million in initiatives to accelerate growth.

Fourth quarter revenue was $210 million, surpassing the high end of the pre-announced range. Excluding the impact from UnitedHealthcare's decision on GeneSight, the business grew approximately 4% compared to Q4 2024. For MyRisk in oncology, testing volume saw 14% year-over-year growth for the affected segment and 11% for the unaffected segment. Prolaris test volume experienced 12% year-over-year growth in the fourth quarter. Prenatal volume declined year-over-year, mainly due to Q2 order management disruption but is in a rebuild phase. In the mental health business, GeneSight volume grew 9% year-over-year, and full-year 2025 revenue was $824.5 million with over 1.5 million test reports served to over 55,000 healthcare providers.

The management reaffirmed 2026 financial guidance. The revenue range is $860 million to $880 million, adjusted gross margin is between 68% and 69%, and adjusted EBITDA is between $37 million and $49 million. Q1 revenue is expected to be between $200 million and $203 million, representing 2% to 4% growth over the year-ago period. Prenatal volume is expected to face unfavorable year-over-year comparisons in Q1 but is anticipated to return to positive growth in Q2. Revenue in the second half of the year is typically stronger than the first half.

Potential risk of MolDX approval timing affecting the rollout of Precise MRD. Prenatal order management issues that previously impacted volume. Uncertainty regarding payer mix impact on average revenue per test.

Q: Given the momentum, confidence in returning to high single-digit long-term growth?

A: For 2026, driven by current products and launches, and for 2027 and beyond, there are multiple levers in place like new products which will be growth drivers.

Q: Risks to the MRD road map?

A: MolDX approval timing is out of the company's complete control.

Q: Prenatal growth in Q1?

A: Unfavorable year-over-year comparison, but expected to recover in subsequent quarters.

Q: Drivers of Prolaris volume growth?

A: A combination of factors including comp benefit, sales team efforts, and investments in the commercial channel.

Q: Barriers to FirstGene adoption?

A: Getting the product in front of providers, clinical adoption, and ensuring proper sales execution.

Q: Early metrics for MRD Alpha launch?

A: User experience, repeat orders, order volume, and operational efficiency are among the metrics to be tracked.