Myriad Genetics 2025 Q1 Earnings Misses Targets with Net Loss Reduction

Myriad Genetics (MYGN) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The company posted a revenue of $195.90 million, missing the anticipated $200.51 million. Despite a challenging quarter characterized by a 3% revenue decline, Myriad Genetics managed to significantly narrow its net loss from $26 million to $100,000. The company lowered its financial guidance for 2025, projecting revenue between $807 million and $823 million, with adjusted EPS ranging from $(0.02) to $0.02. This reflects ongoing pressures, particularly in the pharmacogenomics segment due to UnitedHealthcare's reduced coverage.

Revenue
In 2025 Q1, Myriad Genetics experienced a 3.1% decrease in total revenue, which fell to $195.90 million from $202.20 million in 2024 Q1. The hereditary cancer segment contributed $86.30 million, while tumor profiling generated $29.30 million. Prenatal revenue reached $49.30 million, and pharmacogenomics added $31 million, culminating in the total revenue of $195.90 million.

Earnings/Net Income
Myriad Genetics maintained stable EPS at $0.00 in 2025 Q1 compared to 2024 Q1, successfully narrowing its net loss to $100,000, a significant improvement from the $26 million net loss in 2024 Q1. This reduction in net loss indicates improved financial management.

Price Action
The stock price of Myriad Genetics has dropped 4.97% during the latest trading day, edged up 0.97% during the most recent full trading week, and tumbled 13.56% month-to-date.

Post-Earnings Price Action Review
Over the past five years, the strategy of buying MYGN shares after a revenue drop quarter-over-quarter and holding for 30 days yielded poor results. The strategy's return was -13.26%, significantly underperforming the benchmark return of 83.12%. The excess return stood at -96.38%, with a compound annual growth rate (CAGR) of -2.84%, reflecting substantial losses. Furthermore, the strategy suffered a high maximum drawdown of -28.52% and achieved a low Sharpe ratio of -0.22, indicating significant risk and negative returns. This historical performance suggests that investors should exercise caution when considering this strategy, as it may not yield favorable outcomes given the company's past trends.

CEO Commentary
Sam Raha, President and CEO of Myriad Genetics, remarked on the challenging first quarter of 2025, highlighting that growth in prenatal and oncology MyRisk tests was offset by declines in GeneSight and unaffected hereditary cancer tests. Raha emphasized ongoing efforts to re-accelerate testing volumes, acknowledging that this process will take time. To address current challenges, the company is implementing immediate steps to reduce expenditures while focusing on investments in new product development to drive revenue growth. The new leadership team is committed to unlocking the company's potential through a compelling strategy and improved execution.

Guidance
Myriad Genetics updated its 2025 financial guidance, projecting revenue between $807 million and $823 million and adjusted EPS ranging from $(0.02) to $0.02. This guidance reflects the first quarter 2025 results and the company's current business outlook. The company does not provide a forecast for GAAP EPS due to uncertainties associated with specific elements in GAAP results.

Additional News
Recently, Myriad Genetics announced an exclusive partnership with PATHOMIQ to enhance its oncology products using advanced AI technology. This collaboration aims to improve diagnostic precision and expand product capabilities. Furthermore, in April 2025, the company highlighted the clinical validity of its Precise MRD test at the American Association for Cancer Research Annual Meeting, showcasing advancements in oncology testing. Lastly, concerns around mental health medication side effects remain prevalent, as noted in the GeneSight Mental Health Monitor report released at the end of April, addressing barriers for those diagnosed with depression and anxiety.