Myriad Genetics 2025 Q2 Earnings Misses Targets as Net Loss Widens 800.5%

Myriad Genetics reported mixed results for fiscal 2025 Q2, with revenue growth narrowly above prior expectations but a significantly wider net loss. The company raised full-year revenue guidance but adjusted for the new $200 million credit facility and ongoing challenges in the pharmacogenomics segment.

Revenue

Total revenue for Myriad Genetics in Q2 2025 reached $213.10 million, representing a 0.8% increase compared to $211.50 million in the same period in 2024. This growth was primarily driven by strong performance in the Hereditary Cancer segment, which contributed $96.30 million in revenue, a 5% increase from the previous year. Despite this, Tumor Profiling revenue declined slightly to $31.40 million, impacted by the sale of the international EndoPredict business in 2024. Prenatal services showed positive momentum, with revenue climbing to $47.60 million, while Pharmacogenomics revenue remained at $37.80 million.

Earnings/Net Income

Myriad Genetics reported a significant net loss in Q2 2025, with losses widening to $3.57 per share, or a total of $330.50 million, compared to a loss of $0.41 per share, or $36.70 million, in Q2 2024. This represents a 770.7% increase in the per-share loss and an 800.5% increase in total net loss. The losses were largely attributed to non-cash impairment charges of $316.7 million, primarily due to a decline in Myriad's market capitalization year-to-date. Despite these challenges, adjusted EPS for Q2 2025 stood at $0.05, indicating some level of operational resilience.

Price Action

The stock of Myriad Genetics experienced a positive price reaction following the earnings report, with a 9.35% gain on the latest trading day. Over the past week, the stock surged 40.00%, and it has climbed 7.18% month-to-date. However, the post-earnings price action did not follow a typical positive trajectory. A strategy of buying shares after the revenue raise quarter-over-quarter on the financial report release date and holding for 30 days underperformed significantly. This strategy yielded a return of -77.99% over the past three years, lagging the benchmark by 126.57%. The Sharpe ratio was negative at -0.68, and the maximum drawdown was 0%, indicating no room for loss during the backtest period.

Post-Earnings Price Action Review

The recent earnings report did not translate into a favorable price performance for investors. Despite the company's revenue increase and guidance revision, the stock failed to sustain positive momentum in the short term. The underperformance of the strategy highlights the challenges investors face when relying solely on quarterly revenue growth as a buy signal. The lack of a positive risk-adjusted return, as indicated by the Sharpe ratio, and the absence of room for loss further underscore the limitations of this strategy. Investors should consider a more nuanced approach to evaluating Myriad Genetics, factoring in both financial performance and broader market conditions.

CEO Commentary

Sam Raha, President and CEO of Myriad Genetics, highlighted strong second-quarter results, particularly in the oncology segment, where hereditary cancer testing revenue and volume grew by 9% and 10% year-over-year, respectively. He emphasized the company's focus on the Cancer Care Continuum, noting favorable pricing trends and disciplined expense management. Raha outlined the company’s updated strategy, including new investments in R&D and commercial capabilities, such as an early 2026 launch of an MRD test. He expressed confidence in sustained value creation through strategic partnerships, disciplined growth, and long-term financial discipline.

Guidance

Myriad Genetics raised its 2025 revenue guidance to $818–$828 million from $807–$823 million. The company reiterated its adjusted EPS range of $(0.02)–$0.02, factoring in the new $200 million credit facility and current business outlook. It expects revenue growth in high single-digit to low double-digit ranges over five years, driven by the Cancer Care Continuum focus, prenatal and mental health offerings, and disciplined operating expense management.

Additional News

In Q2 2025, Myriad Genetics initiated a review of its long-range growth strategy, with a focus on the Cancer Care Continuum to accelerate growth. The company plans to expand its test portfolio into other cancer segments, including therapy selection, immuno-oncology response monitoring, and Molecular Residual Disease (MRD), with an early access launch of its proprietary MRD test in the first half of 2026. The Women’s Health segment delivered revenue of $89.8 million in Q2, with hereditary cancer testing revenue and volume for the unaffected population growing by 1% and 3% year-over-year, respectively. Prenatal testing revenue increased by 7% year-over-year, while GeneSight test revenue was $37.8 million, reflecting a 5% year-over-year growth in test volume. The company also announced a new $200 million term loan facility to enhance financial flexibility and support its growth strategy.