Exact Sciences 2025 Q2 Earnings Strong Performance as Net Loss Narrows Dramatically

Exact Sciences reported better-than-expected performance in Q2 2025, with revenue growing 16% to $811.09 million and a significant narrowing of net loss to $-1.19 million, down from $-15.81 million in the same period last year. The company raised its full-year revenue and adjusted EBITDA guidance, reflecting improved operational performance and confidence in future growth.

Revenue
Exact Sciences reported total revenue of $811.09 million for the second quarter of 2025, representing a 16.0% increase from $699.26 million in the prior-year period. The Screening segment led growth, delivering $628.48 million in revenue, a 18.0% year-over-year increase, driven by strong adoption of Cologuard Plus. The Precision Oncology segment also contributed $182.60 million, a 9.0% increase from the previous year. The performance highlights the company’s momentum in both core cancer screening and advanced diagnostic offerings.

Earnings/Net Income
Exact Sciences significantly narrowed its net loss in Q2 2025, reporting a loss of $-1.19 million, or $0.01 per share, compared to a loss of $-15.81 million, or $0.09 per share, in Q2 2024, representing a 92.5% reduction in the net loss. This improvement underscores the company’s progress in controlling costs and improving operational efficiency despite sustained historical losses. While the company remains unprofitable in the long term, these results indicate a meaningful step toward profitability.

Price Action
The stock price of Exact Sciences experienced mixed short-term price action following the earnings report. Shares declined 0.89% during the latest trading day but gained 0.24% for the week. However, the stock dropped 10.61% month-to-date, reflecting broader market pressures and investor caution.

Post Earnings Price Action Review
A strategy of buying EXAS shares immediately after the earnings report and holding for 30 days generated moderate returns with a CAGR of 4.68%. However, it underperformed the market by 34.72 percentage points, suggesting limited growth potential. The strategy’s minimal drawdown and Sharpe ratio of 0.08 indicate low risk but also highlight the lack of significant upside for investors seeking aggressive returns.

CEO Commentary
Kevin T. Conroy, Exact Sciences’ CEO, highlighted the company’s strong Q2 performance, including a record 1.3 million test results delivered and $138 million in adjusted EBITDA. He emphasized the success of Cologuard Plus, new contracts with Humana and Centene, and the strategic expansion of the blood-based screening portfolio through the Freenome licensing agreement. Conroy also expressed confidence in the company’s commercial team and its ability to deliver on long-term goals of 15% revenue growth and 20%+ adjusted EBITDA margins.

Guidance
Exact Sciences raised its 2025 full-year revenue guidance to $3.13–$3.17 billion (14% growth), with Screening revenue expected to reach $2.44–$2.47 billion (17% growth) and Precision Oncology revenue estimated at $690–$700 million (6% growth). Adjusted EBITDA guidance increased to $455–$475 million (44% growth). Q3 2025 revenue is projected between $800–$815 million. Additionally, a multiyear productivity plan aims for $150 million in annual savings by 2026.

Additional News
Exact Sciences made significant strategic moves recently, including the exclusive licensing of Freenome’s blood-based colorectal cancer screening tests and the launch of the Oncodetect test, which now has Medicare coverage for monitoring molecular residual disease. These developments strengthen the company’s pipeline and commercial potential. The firm also announced a multiyear productivity plan targeting $150 million in annual savings, reflecting its focus on operational efficiency. These actions, alongside strong financial performance, indicate a company on a clear growth and profitability trajectory.