VERACYTE, INC. Q1 FY2026 earnings call

• Mark Stapley mentioned strong double-digit revenue and volume growth in Q1, exceeded profitability expectations, and advanced key catalysts. • Discussed Decipher's consistent growth over 20% quarter after quarter, strong performance in Q1 with 24% volume growth, traction in advanced disease, upcoming trial results, and enhancements in clinical offerings. • Talked about Affirma's 12% volume growth, transition to V2 transcriptome workflow improving no result rate, expanding clinical evidence, and real-world impact. • Highlighted Procigna LDT as a major upcoming launch with significant market opportunity and upcoming Optima trial results, and TrueMRD as a whole genome sequence-based MRD platform with planned launch in MIBC and broader applications. • Welcomed new executives to support growth.

In the first quarter, Decipher delivered approximately 28,000 tests with 24% year-over-year volume growth. Revenue growth was strong. Affirma delivered approximately 17,200 tests with 12% year-over-year volume growth. Procigna LDT and TrueMRD are upcoming product launches. Decipher's revenue growth is expected to be approximately 20%, Affirma's revenue growth is in the high single-digit to low double-digit range. Decipher contributes significantly to revenue with its strong growth and extensive clinical evidence, Affirma also contributes with its improving operational performance and expanding clinical evidence.

• Raised full-year total revenue guidance to $582 million to $592 million, representing 13 to 14% year-over-year growth. • Expected testing revenue growth of 16 to 18% excluding new tests, with Decipher revenue growth of approximately 20% and Affirma revenue growth in high single-digit to low double-digit range. • Increased full-year adjusted EBITDA guidance to greater than 26%.

Q: Puneet Sudha asked about no result rate improvement and ceiling.

A: Mark Stapley talked about transition to new workflow and Rebecca Chambers discussed financial impact and assumptions.

Q: Tycho Peterson asked about momentum in testing revenue and Decipher's competitive mode.

A: Mark Stapley and John Light discussed new product launches, ramp, and Decipher's competitive strategy.

Q: Doug Schenkel asked about Decipher's multi-year growth sustainability and Optima's ASCO readout.

A: Mark Stapley and John Light discussed Decipher's growth drivers and Optima's requirements.

Q: Subbu Nambi asked about Decipher's volume, ASPs and TrueMRD's next indication.

A: Rebecca Chambers discussed Decipher's trends and Mark Stapley discussed TrueMRD's strategic planning.

Q: Mason Carrico asked about ProSigna LDT and Decipher's volume impact from weather.

A: John Light and Mark Stapley discussed ProSigna LDT's publication and Decipher's volume impact.

Q: Kyle Mixon asked about capital allocation and M&A.

A: Mark Stapley discussed capital allocation philosophy and M&A considerations.

Q: Keith Hinton's question was the last one, no answer provided as no further questions.