Veracyte outlook 2026 - continues to expect adjusted EBITDA margin to be greater than 26%

Veracyte, Inc. (Nasdaq: VCYT) has reaffirmed its 2026 financial outlook, with expectations that its adjusted EBITDA margin will exceed 26% for the year. This update follows the company’s strong first-quarter performance, which saw total revenue grow by 21% year-over-year to $139.1 million and testing revenue increase by 26% to $135.1 million. The company also raised its total revenue guidance for 2026 to a range of $582 million to $592 million, representing 13% to 14% growth compared to prior guidance.

The first quarter of 2026 demonstrated robust profitability, with adjusted EBITDA reaching $42.8 million, or 30.8% of revenue, a 73% improvement compared to the same period in 2025. This performance aligns with the company’s strategic focus on expanding its product portfolio and enhancing clinical evidence for its diagnostic tests. Veracyte’s CEO, Marc Stapley, highlighted the company’s progress in key areas, including completion of phase III trials for Decipher and the appointment of new leadership to support future growth.

The company’s updated guidance reflects confidence in its ability to maintain strong margins while scaling operations. Veracyte’s adjusted EBITDA margin for the first quarter of 2026 was 30.8%, significantly above its previous expectation of approximately 25% for the full year. This improvement is attributed to higher-than-expected volume growth in core testing services, particularly in the Decipher and Afirma product lines, as well as continued cost discipline and operational efficiency.

Looking ahead, Veracyte plans to launch two new products in 2026—Prosigna LDT and TrueMRD—which are expected to expand its market reach into breast, bladder, and other cancers. These launches are anticipated to drive further revenue growth and reinforce the company’s position in the cancer diagnostics sector. The company also emphasized its commitment to generating strong cash flow, with $35.2 million in operating cash flow reported for the first quarter of 2026.

Despite the positive outlook, Veracyte noted that it is unable to provide a quantitative reconciliation of its adjusted EBITDA margin guidance to the most directly comparable GAAP measure due to the uncertainty of future events and adjustments. Investors are encouraged to review the company’s reconciliation of non-GAAP financial measures for a detailed breakdown of adjustments and assumptions.

Overall, Veracyte’s 2026 outlook reflects a combination of strong operational performance, strategic product development, and disciplined financial management. With adjusted EBITDA margin expected to exceed 26%, the company is well positioned to deliver value to shareholders while advancing its mission to transform cancer care through innovative diagnostics.