Veracyte (VCYT) Q1 2026 earnings summary

Executive summary

• Achieved 21% year-over-year revenue growth in Q1 2026 to $139.1 million, with testing revenue up 26% and strong volume growth from Decipher and Afirma franchises.

• Net income rose to $28.7 million, a 307% increase from Q1 2025, with adjusted EBITDA of $42.8 million (30.8% of revenue).

• Decipher and Afirma test volumes grew 24% and 12% year-over-year, respectively, with Decipher showing nearly 30% growth in high-risk prostate cancer categories.

• Advanced clinical evidence pipeline and prepared for major product launches, including Prosigna LDT (breast cancer) and TrueMRD (minimal residual disease), expected to drive future growth.

• Continued investment in digital pathology, AI, and leadership to support scalability and innovation.

Financial highlights

• Total revenue reached $139.1 million, up 21% year-over-year; testing revenue was $135.1 million, up 26%; test volume grew to 47,600.

• Gross margin improved to 73% (non-GAAP 76%), up from 69% (non-GAAP 72%) year-over-year; GAAP net income margin was 20.6%.

• Adjusted EBITDA reached $42.8 million (30.8% of revenue), up 73% year-over-year.

• Cash and short-term investments at quarter-end were $439.1 million; operating cash flow was $35.2 million.

• Product revenue was $3.7 million (+3% YoY); biopharma and other revenue declined to $0.3 million due to Veracyte SAS restructuring.

Outlook and guidance

• Raised full-year 2026 revenue guidance to $582–$592 million (13–14% growth); testing revenue guidance increased to $570–$580 million (16–18% growth), excluding new product launches.

• Adjusted EBITDA margin guidance raised to greater than 26%.

• Decipher revenue projected to grow ~20%; Afirma in high single-digit to low double-digit range.

• Guidance excludes contributions from new product launches and prior period collections.

• Plans to expand Prosigna as an LDT in the US and introduce Decipher Prostate as an IVD internationally.