MYGN

• Core Product & Pipeline Milestones • Launched Prolaris Plus AI, the company's first AI-enhanced prostate cancer test, at the end of Q2 2026; early clinician feedback has been positive, particularly for active surveillance patient decision support. • Expanded Precise MRD (minimal residual disease) testing clinical availability to colorectal and renal cancers, and submitted the breast cancer indication to MolDX for coverage determination. The product is in expanded early access ahead of a full 2027 commercial launch, with growing repeat ordering and strong assay performance reported. • Completed hiring, training, and field placement of over 100 new account executives primarily focused on Cancer Care Continuum offerings, with expected meaningful volume growth contributions starting in 2027. • Completed commercial launch of Firstgene, the company's new combined prenatal carrier and fetal screening test, in the week following the end of Q2; early customer feedback on the product's unique combined offering and industry-leading 8-week testing window and 14-day turnaround has been positive.

• Organizational & Operational Initiatives • Launched the Ascend initiative in partnership with a leading professional services firm to improve organizational efficiency, productivity, and scalability, with expected measurable adjusted EBITDA benefits starting in 2027. • Implemented a multi-pronged action plan to address elevated payer revenue cycle friction for hereditary cancer testing: optimizing end-to-end revenue cycle workflows with front-end coverage verification and automated medical record retrieval, deploying AI to reduce manual work and accelerate claim resolution, and increasing proactive policy and stakeholder engagement with payers, industry groups, and policymakers to reduce unnecessary administrative barriers. • Conducting a full rigorous portfolio review to optimize capital allocation and prioritize high-value opportunities aligned with the company's core cancer care continuum focus, to drive long-term shareholder value.

• Financial Performance Context • The 9% YoY overall decline in average revenue per test included an $11 million headwind from lower-than-expected prior period collections, including a $4 million aged receivables write-off; excluding this impact, average revenue per test was down 3% YoY, driven by elevated payer friction.

• Management revised 2026 full-year guidance downward, setting total revenue to a range of $770 to $790 million, representing a $90 million reduction to the midpoint of prior guidance. Gross margin guidance was also lowered to 66% to 67%.
• The downward revision reflects weaker-than-expected prenatal volume trends, lower hereditary cancer reimbursement levels, and the final resolution of aged GeneSight receivables. Guidance assumes no improvement in average revenue per test from the Q2 2026 level, and assumes second half 2026 revenue will be roughly in line with first half performance, a conservative outlook that does not include upside from recent product launches or sales team expansion.
• Management suspended 2026 adjusted EBITDA guidance due to uncertainty around the timing and magnitude of impact from the Ascend efficiency initiative and ongoing portfolio review.
• Management expects third quarter 2026 revenue to be flat to slightly higher than Q2, with gradual improvement expected in the fourth quarter.

Myriad Genetics reported total Q2 2026 revenue of $190.7 million, a 11% year-over-year (YoY) decline. The three product segments performed as follows: 1) Cancer Care Continuum: Generated $114.1 million in revenue, down 11% YoY. This represents 60% of total Q2 revenue. 6% YoY test volume growth was fully offset by a 15% YoY decline in average revenue per test. Hereditary cancer testing volume grew 8% YoY, with flagship MyRisk volume up 10% YoY. 2) Prenatal Health: Generated $40 million in revenue, down 16% YoY. This represents 21% of total Q2 revenue. Volume declined 9% YoY, while average revenue per test fell 8% YoY, driven by slower-than-expected sales expansion and competitive pressures. 3) Mental Health (GeneSight): Generated $36.8 million in revenue, down 3% YoY. This represents 19% of total Q2 revenue. Volume grew 4% YoY, but a $4 million write-off of aged receivables pulled total revenue down. The segment now has a record 40,000+ active ordering clinicians.

• Elevated payer revenue cycle friction (increasingly strict prior authorization requirements, higher denial rates, and additional documentation demands) from a small group of payers has created a significant step-down in realized average revenue per test for hereditary cancer testing, and this pressure is expected to remain a headwind for the remainder of 2026. This friction is a broader industry trend as payers use automated denials to control costs, not a reflection of changes to underlying clinical coverage policy.
• Prenatal health continues to face competitive pressures that have driven sharper-than-expected volume declines, limiting near-term segment performance.
• The timing and financial impact of the Ascend efficiency initiative and portfolio review are uncertain, creating near-term unpredictability for profitability.
• Long-term, modest headwinds to average revenue per test for hereditary cancer testing are expected to persist as reimbursement pressures continue across the molecular diagnostics industry.

Q: With revised guidance in place, what is the implied second half 2026 split of volume versus price growth for the cancer care continuum and overall business? / A: The updated full-year 2026 guidance assumes a 5% overall revenue decline YoY. By segment, mental health is expected to be modestly up, the cancer care continuum will be modestly down, and prenatal health will continue to see YoY declines as the company works to rebuild volume through the second half of the year. This outlook incorporates the sustained reimbursement pressure on hereditary cancer testing that the company experienced in Q2.

Q: How are GeneSight ordering trends split between new and existing clinicians, and what is the long-term growth outlook for the mental health segment, given recent mid-single-digit volume growth that is slower than prior years? / A: Management remains optimistic about the long-term GeneSight opportunity, as the product holds a leading market position with high provider and patient net promoter scores, and continues to expand its base of active ordering clinicians to new record highs. Mid-single-digit volume growth is in line with the company's expectations for 2026. New state-level biomarker legislation and improved collection processes (such as collecting payment information earlier in the ordering process) are expected to offset modest slower volume growth with improved revenue per test over time.

Q: Are new cancer continuum products driving cross-selling and changed customer behavior among accounts that previously only used one Myriad product? / A: The company's oncology and urology sales teams are structured to explicitly drive portfolio selling, introducing providers with existing relationships for one Myriad product to other relevant offerings. Management reports healthy cross-sell adoption across the portfolio, including MyRisk cross-selling to urology customers using the new Prolaris Plus AI, and Precise MRD adoption among existing hereditary cancer testing customers.

Q: Have the previously reported workflow improvements for Precise MRD resolved early operational issues, and what metrics is management tracking ahead of the 2027 full launch? / A: Early feedback identified digital ordering and workflow pain points, which have been addressed with new digital ordering capabilities rolled out in Q3. The product's underlying assay is robust and performing well. Management is tracking three core metrics: growing test utilization (which is showing positive early trends, with a growing base of clinicians placing repeat orders), improved provider and patient workflows, and ongoing customer experience refinement ahead of the full 2027 commercial launch.