Myriad Genetics 2025 Q1 Earnings Misses Targets as Net Loss Narrows 99.6%

Myriad Genetics (MYGN) reported its fiscal 2025 Q1 earnings on May 7th, 2025. The total revenue of Myriad Genetics decreased by 3.1% to $195.90 million in 2025 Q1, down from $202.20 million in 2024 Q1. The company experienced a revenue shortfall, missing analyst expectations of $200.51 million. Consequently, Myriad adjusted its 2025 guidance downward, indicating a cautious outlook. Despite these challenges, Myriad’s leadership team remains committed to strategic investments aimed at driving future growth while managing current expenditures to stabilize finances.

Revenue
Myriad Genetics reported a total revenue decline of 3.1% to $195.90 million in Q1 2025 compared to the previous year. The hereditary cancer segment contributed $86.30 million, the tumor profiling segment brought in $29.30 million, prenatal testing generated $49.30 million, and pharmacogenomics revenue stood at $31 million. This cumulative revenue reflects the overall business performance across various segments.

Earnings/Net Income
Myriad Genetics maintained stable EPS at $0.00 for Q1 2025 as compared to Q1 2024. The company significantly narrowed its net loss to $100,000, representing a 99.6% improvement from the $26 million net loss of the previous year. Despite the neutral EPS, the reduction in net loss is a positive indicator for the company.

Post-Earnings Price Action Review
Over the past five years, the strategy of buying MYGN shares following a quarter-over-quarter revenue drop and holding for 30 days has yielded unsatisfactory results. This approach led to a negative return of 23.21%, which starkly underperformed compared to the benchmark return of 84.08%. The strategy demonstrated significant risk and volatility, as evidenced by a Sharpe ratio of -0.39 and a maximum drawdown of -28.52%. These figures underline the strategy's ineffectiveness during this period, indicating that investors faced considerable financial uncertainty when applying this method to MYGN stock.

CEO Commentary
"We had a challenging first quarter of 2025 with strength in our prenatal and oncology MyRisk tests offset by softness in GeneSight and unaffected hereditary cancer tests. While we are actively working on initiatives to re-accelerate testing volumes, this will take time; therefore, we are lowering our 2025 financial guidance. We are taking immediate steps to reduce overall expenditures while prioritizing investment in new product development and programs intended to drive revenue growth," said Sam Raha, President and CEO of Myriad Genetics. "As a new leadership team, we are focused on unlocking Myriad Genetics' potential by implementing a compelling strategy, strengthening our organizational capabilities, and improving execution."

Guidance
The company updated its 2025 financial guidance, projecting revenue in the range of $807 million to $823 million and an adjusted EPS range of $(0.02) to $0.02, reflecting first quarter 2025 results and the current business outlook. The guidance indicates a cautious approach in light of recent performance challenges, particularly in GeneSight and hereditary cancer tests, while acknowledging ongoing investment in strategic areas to foster future growth.

Additional News
In recent developments, Myriad Genetics announced a new strategic partnership with PATHOMIQ to enhance its oncology products using advanced AI technology. This collaboration aims to integrate cutting-edge AI capabilities into Myriad's existing product lines, potentially improving diagnostic accuracy and expanding the company's market reach. Additionally, Myriad Genetics has been actively engaging with the healthcare community through participation in upcoming investor healthcare conferences, including the BofA Securities 2025 Health Care Conference and the Goldman Sachs 46th Annual Global Healthcare Conference. These events provide platforms for Myriad to discuss its strategic initiatives and future growth plans with investors and industry stakeholders.