Myriad Genetics — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 revenue was $202.7 million, a 1% decrease year-over-year from $205.7 million, and a 6% increase sequentially.
• Nine months ended September 30, 2026 revenue was $593.8 million, a 3% decrease year-over-year from $614.7 million.
• Gross margin for the third quarter was 67.9%, down 200 basis points from 69.9% in the third quarter of 2025.
• Operating loss for the third quarter was $39.9 million, compared to an operating loss of $23.3 million in the third quarter of 2025.
• Net loss for the third quarter was $43.9 million ($0.46 per share), compared to a net loss of $27.4 million ($0.29 per share) in the third quarter of 2025.
• Net loss for the nine months ended September 30, 2026 was $121.2 million ($1.28 per share), compared to a net loss of $358.0 million ($3.88 per share) in the prior year period.
• Cash flow used in operations for the third quarter was $6.5 million, compared to cash provided by operations of $21.1 million in the third quarter of 2025.
• Adjusted operating cash flow for the third quarter was $3.7 million.
• Adjusted free cash flow for the third quarter was $1.6 million.
• Cash and cash equivalents as of September 30, 2026, were $107.1 million.
• Long-term debt was $121.1 million as of September 30, 2026, compared to $119.9 million as of December 31, 2025.

Guidance and Future Outlook:

• Raised the mid-point of full-year 2026 revenue guidance to $780–$790 million from a previous range, reflecting third quarter results and current business trends.
• Full-year 2026 guidance for Cancer Care Continuum and Mental Health revenue is $620–$630 million.
• Full-year 2026 guidance for Prenatal Health revenue is approximately $160 million.
• Full-year 2026 adjusted gross margin guidance is 66%–67%.
• The sale of the Prenatal Health business is expected to close by early 2027 and is anticipated to be accretive to revenue growth and profitability.

Business Segments and Product Lines:

• Cancer Care Continuum: Revenue was $123.9 million in the third quarter, a 1% increase year-over-year. Test volume increased 4% year-over-year to 98,000 tests. Hereditary cancer testing revenue decreased 1% year-over-year due to lower reimbursement levels, partially offset by a 6% volume increase. Average revenue per hereditary cancer test improved 9% sequentially.
• Mental Health: GeneSight revenue was $39.5 million in the third quarter, a 2% increase year-over-year. Test volume increased 3% year-over-year to 141,000 tests, partially offset by a 1% year-over-year decline in average revenue per test.
• Prenatal Health: Revenue was $39.3 million in the third quarter, a 12% decrease year-over-year. Test volume decreased 11% year-over-year to 138,000 tests.
• Combined Cancer Care Continuum and Mental Health volume increased 3% year-over-year to 239,000 tests; revenue increased 1% year-over-year to $163.4 million.
• New MONSTAR-SCREEN-3 data was presented at the European Society for Medical Oncology Congress 2026 in late October 2026 regarding molecular residual disease (MRD) testing.
• Myriad is engaging the Molecular Diagnostics Program (Palmetto GBA) for a Local Coverage Determination to establish Medicare coverage for the Precise MRD test for breast cancer patients.
• In October 2026, Myriad announced a collaboration with SOPHiA GENETICS and AstraZeneca to advance prostate cancer-specific genomic instability score (PrGIS) technology.

Market and Competitive Landscape:

• Average revenue per test increased 7% sequentially and 1% year-over-year, driven by product mix and payer engagement initiatives.
• Total test volume declined 1% sequentially and 2% year-over-year.
• The company continues to face market dynamics impacting average revenue per test in the Mental Health segment.

Risks and Challenges:

• Risks include potential declines in sales and profit margins of existing tests, inability to operate on a profitable basis, and failure to achieve revenue growth targets.
• Risks related to the sale of the Prenatal Health business include the possibility that the transaction may not close on anticipated terms, timeline, or at all, and the risk of retaining liabilities following the closing.
• Risks include changes in governmental or private insurer coverage and reimbursement levels, increased competition, and the inability to secure additional financing.
• Risks related to intellectual property, regulatory requirements, cybersecurity incidents, and compliance with financial covenants under credit agreements are noted.

Management Commentary and Tone:

• Sam Raha, President and CEO, stated that third quarter results exceeded expectations, driven by a focus on the Cancer Care Continuum.
• Management described the sale of the Prenatal Health business as a "decisive step" to support strategic intent to increase profitable growth by focusing on the Cancer Care Continuum.
• Management noted early progress with payer engagement and revenue cycle management initiatives contributing to higher average revenue per CCC test.
• The tone indicates a strategic shift to improve revenue growth rate, profitability, and liquidity through the divestiture and continued focus on core oncology and mental health segments.

Other Key Points:

• On October 19, 2026, Myriad entered into a definitive agreement to sell its Prenatal Health business to Labcorp for $210 million in cash, plus the value of related inventory at closing.
• The transaction is subject to customary closing conditions, including regulatory approvals.
• Operating expenses for the third quarter were $177.6 million, compared to $167.1 million in the third quarter of 2025.
• Adjusted operating expenses for the third quarter were $149.9 million, an increase of $9.9 million year-over-year, reflecting multi-year investments in strategic areas.
• Capital expenditures and capitalization of internal-use software costs totaled $2.1 million in the third quarter.
• A conference call to discuss results was held on November 4, 2026.