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Veracyte, Inc. VCYT delivered first-quarter 2025 earnings of 31 cents per share, which marked a stupendous improvement of 63.2% from the year-ago period’s figure of 19 cents. The bottom line beat the Zacks Consensus Estimate by 55%.
The company-adjusted earnings per share (EPS) were 9 cents compared to the year-ago period’s loss of 2 cents per share.
Following the earnings announcement, VCYT’s share price gained 1.2% yesterday.
VCYT’s Q1 Revenues
Revenues increased 18.3% year over year to $114.5 million, which outpaced the Zacks Consensus Estimate by 3.2%. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
VCYT’s Q1 Segmental Details
Testing revenues totaled $107.3 million, up 19% year over year. This rise was mainly due to Decipher and Afirma revenue growth of 33% and 6%, respectively. Testing volume improved 23% year over year to 38,078 tests.
Product revenues rose 1% year over year to $3.6 million in the first quarter. Volume was approximately 2,570 tests, up 1% year over year.
Biopharmaceutical and other revenues of $3.6 million reflected a 19% increase from the prior-year quarter’s figure.
Margins
The total cost of revenues (product, testing, biopharmaceutical and other) was $35 million, up 1.7% year over year.
The gross profit rose 27.3% to $79.5 million. The gross margin expanded 495 basis points (bps) to 69.5%.
Selling and marketing expenses rose 2.8% to $24.4 million, while general and administrative expenses increased 29% to $33.8 million. R&D expenses totaled $17.7 million, up 11% year over year. The company delivered an operating profit of $3.5 million compared to a loss of $3.5 million in the year-ago period.
VCYT’s Cash, Capital Structure and Solvency
Veracyte exited first-quarter 2025 with cash and cash equivalents of $186.1 million compared with $239.1 million at the end of the fourth quarter of 2024.
The net cash provided from operating activities at the end of the reported quarter was $5.4 million against $9 million net cash used in operating activities a year ago.
Guidance
Veracyte reaffirmed its full-year 2025 testing revenue guidance. The company expects testing revenues to be in the range of $470-$480 million, implying 12-15% year-over-year growth.
Henry Schein, Inc. Price, Consensus and EPS Surprise
Henry Schein, Inc. price-consensus-eps-surprise-chart | Henry Schein, Inc. Quote
The company raised guidance for adjusted EBITDA as a percentage of revenues. It is anticipated to be approximately 22.5% (up from the previous guidance of 21.6%).
Our Take
Veracyte reported better-than-expected first-quarter results, with its earnings and revenues surpassing their respective estimates. The company registered robust growth from its market-leading Decipher Prostate and Afirma tests. Meanwhile, the growth in Product revenues and Biopharmaceutical and other revenues was encouraging. The gross margin expansion instills optimism among investors.