Exact Sciences 2025 Q2 Earnings Narrowed Losses and Raised Guidance

Exact Sciences (EXAS) delivered results that beat expectations and raised its full-year guidance. The company narrowed its net loss significantly and raised revenue and adjusted EBITDA guidance midpoints. These positive moves indicate improving financial performance and operational efficiency.

Revenue

Exact Sciences reported total revenue of $811.09 million for 2025 Q2, a 16.0% increase from $699.26 million in the same period in 2024. The Screening segment drove much of this growth, contributing $628.48 million, a 18.0% increase. The Precision Oncology segment also contributed robustly with revenue of $182.60 million, up 9.0% year-over-year. The strong performance in both segments highlights the company's successful commercial execution and growing market adoption of its tests.

Earnings/Net Income

Exact Sciences significantly narrowed its losses in Q2 2025, reporting a net loss of $-1.19 million, or $0.01 per share, compared to a net loss of $-15.81 million, or $0.09 per share, in Q2 2024. This represents an 88.9% improvement in EPS and a 92.5% reduction in net loss. Despite this improvement, the company has sustained losses for more than 20 years during the same fiscal quarter. While the narrowing losses are a positive sign, the company has not yet achieved profitability and continues to operate under a prolonged period of unprofitability.

Price Action

The stock price of Exact Sciences experienced volatility in the short term, with a 10.67% jump on the latest trading day, followed by an 8.07% drop during the subsequent full trading week. Over the month-to-date, the stock has fallen 19.39%. This volatility reflects investor sentiment and market reactions to the earnings report and broader market conditions.

Post Earnings Price Action Review

A strategy of buying EXAS when its earnings beat expectations and selling after 30 days yielded a 17.19% return, which was significantly lower than the benchmark return of 91.11%, resulting in a -73.92% excess return. The strategy's compound annual growth rate (CAGR) was 3.40%, with a maximum drawdown of 0.00% and a Sharpe ratio of 0.10. This indicates that while the strategy is relatively low-risk, it has modest performance compared to the broader market.

CEO Commentary

Kevin Conroy, Chairman and CEO of Exact Sciences, highlighted the company's strong business performance, noting record Q2 revenue of $811 million driven by the successful launch of Cologuard Plus, powerful commercial execution, and high customer satisfaction. He emphasized the progress in advancing the mission of earlier cancer detection and expressed confidence in the platform's ability to improve patient outcomes.

Guidance

Exact Sciences raised its full-year 2025 revenue guidance to $3.130–$3.170 billion, and adjusted EBITDA guidance to $455–$475 million. These updates reflect midpoints increased by $55 million and $25 million, respectively. The company expects 14% total revenue growth, 17% screening revenue growth, and 6% Precision Oncology revenue growth for 2025.

Additional News

Exact Sciences made significant non-earnings-related moves in the three weeks following its Q2 2025 report. Notably, it acquired exclusive rights to Freenome's blood-based colorectal cancer screening tests and underlying technology, subject to regulatory approval, marking a key M&A activity. Additionally, the company announced Medicare coverage for its Oncodetect™ test and launched a multi-year productivity plan targeting $150 million in annual savings by 2026. These strategic initiatives reflect the company’s focus on expanding its diagnostic offerings and improving operational efficiency.