Earnings

Veracyte Lowers Top Of 2026 Revenue Forecast To $593 Million, Adds $100 Million Buyback

The cancer diagnostics company's Decipher Prostate volume fell short of its expectations, while third-quarter revenue rose 15%.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

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Veracyte Lowers Top Of 2026 Revenue Forecast To $593 Million, Adds $100 Million Buyback

Veracyte, which makes genomic tests that help doctors diagnose and guide treatment for cancer, trimmed the top of its 2026 revenue outlook to $590 million to $593 million, from a prior range of $590 million to $596 million. The company also authorized a $100 million share buyback, according to its third-quarter results and an 8-K filing on Wednesday.

Testing guidance steps down

Testing revenue guidance for the year fell to $571 million to $573 million, from $576 million to $582 million. The company said that reflects 16% growth, with minimal contribution from recently launched tests. It kept its forecast for an adjusted EBITDA margin (a profit measure before interest, taxes, depreciation and certain other items) of more than 26%.

CEO Marc Stapley said in the release that Afirma outperformed, while Decipher Prostate volume was "below our expectations." He added that the company remains confident in its long-term outlook.

A 15% quarter with a prostate gap

Third-quarter total revenue rose 15% to $151.8 million from $131.9 million a year earlier. Testing revenue also rose 15%, to $146.4 million.

Decipher Prostate revenue grew 12% to $92.3 million on about 29,900 tests. Afirma, the thyroid test, grew 19% to $51.5 million on about 19,100 tests. Product revenue rose 40% to $4.6 million, which the company attributed to adoption of its Prosigna IVD breast cancer kit after trial results were released at ASCO.

Net income was $31.5 million, or $0.38 a share, up from $19.1 million a year earlier; the quarter included a $10.4 million income tax benefit. Adjusted EBITDA was $41.2 million, a 27.2% margin versus 30.1% a year earlier. Operating cash flow was $40.3 million.

The buyback and the cash behind it

The board authorized repurchases of up to $100 million of stock over 12 months, through open-market or private deals. The program does not obligate Veracyte to buy any set number of shares, and the company expects to fund it from available cash.

Veracyte held $370.5 million in cash, cash equivalents and short-term investments on September 30. During the quarter it also bought Convergent Genomics, adding a urinary tumor DNA platform for bladder cancer care, and secured Medicare reimbursement for its Prosigna breast test.

Veracyte holds its earnings call at 4:30 p.m. Eastern on Wednesday.

Veracyte says it has now served more than 1 million patients with its tests.

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