Veracyte Announces Fourth Quarter and Full Year 2025 Financial Results

SOUTH SAN FRANCISCO, Calif.--( BUSINESS WIRE)--Veracyte, Inc. (Nasdaq: VCYT), a leading cancer diagnostics company, today announced financial results for the fourth quarter and full year ended December 31, 2025.

“We delivered an exceptional finish to 2025, with strong double-digit growth across both Decipher and Afirma and more than 45,000 patients served with our core testing business in the quarter,” said Marc Stapley, Veracyte’s chief executive officer. “We are achieving this growth while maintaining best-in-class profitability, with more than $50 million of cash generated from operations in the quarter. Looking ahead, 2026 will be an exciting year as we launch Prosigna as an LDT and TrueMRD, expanding our reach to more patients across the continuum of care while also continuing to invest in clinical evidence that reinforces the value and utility of our portfolio.”

Key Fourth Quarter 2025 Financial Highlights

For the three-month period ended December 31, 2025, as compared to the same period in 2024:

Key Full Year 2025 Financial Highlights

For the twelve-month period ended December 31, 2025, as compared to the same period in 2024:

Key Business Highlights

A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading "Note Regarding Use of Non-GAAP Financial Measures."

Fourth Quarter 2025 Financial Results

Total revenue for the fourth quarter of 2025 was $140.6 million, an increase of 19% compared to $118.6 million reported in the fourth quarter of 2024. Testing revenue was $135.8 million, an increase of 21% compared to $112.2 million in the fourth quarter of 2024, driven by growth in our Decipher Prostate and Afirma tests. Product revenue was $3.8 million, an increase of 27% compared to $3.0 million in the fourth quarter of 2024. Biopharmaceutical and other revenue was $1.0 million, a decrease compared to $3.5 million in the fourth quarter of 2024 given the restructuring and liquidation proceedings of Veracyte SAS.

Total gross margin for the fourth quarter of 2025 was 72.5%, compared to 66.4% in the fourth quarter of 2024. Non-GAAP gross margin was 75.1%, compared to 69.3% in the fourth quarter of 2024.

Operating expenses were $64.8 million for the fourth quarter of 2025. Non-GAAP operating expenses grew 12% to $65.1 million compared to $57.9 million in the fourth quarter of 2024.

Net income for the fourth quarter of 2025 was $41.1 million, an improvement of 705% compared to the fourth quarter of 2024, representing 29.3% of revenue compared to 4.3% in the same period in 2024. Diluted net earnings per common share was $0.51, an improvement of $0.45 compared to the fourth quarter of 2024. Non-GAAP diluted net earnings per common share was $0.53, an improvement of $0.17 compared to the fourth quarter of 2024. Net cash provided by operating activities in the fourth quarter of 2025 was $52.6 million, an improvement of $28.1 million compared to the same period in 2024.

Adjusted EBITDA for the fourth quarter of 2025 was $42.3 million, an improvement of 62% compared to the fourth quarter of 2024, representing 30.1% of revenue compared to 22.0% of revenue in the same period of 2024.

Full Year 2025 Financial Results

Total revenue for 2025 was $517.1 million, an increase of 16% compared to $445.8 million reported in 2024. Testing revenue was $493.2 million, an increase of 18% compared to $419.0 million in 2024, driven by growth in our Decipher Prostate and Afirma tests. Product revenue was $14.3 million, an increase of 5% compared to $13.7 million in 2024. Biopharmaceutical and other revenue was $9.7 million, a decrease compared to $13.2 million in 2024 given the restructuring and liquidation proceedings of Veracyte SAS.

Total gross margin for the full year 2025 was 70.1%, compared to 66.9% in 2024. Non-GAAP gross margin was 72.9%, compared to 70.0% in 2024.

Operating expenses were $304.8 million for the full year 2025. Non-GAAP operating expenses grew 7% to $244.6 million compared to $227.6 million in 2024.

Net income for the full year 2025 was $66.4 million, an improvement of 175% compared to 2024, representing 12.8% of revenue compared to 5.4% in 2024. Diluted net earnings per common share was $0.82, an improvement of $0.51 compared to 2024. Non-GAAP diluted net earnings per common share was $1.78, an improvement of $0.59 compared to 2024. Net cash provided by operating activities in 2025 was $136.3 million, an improvement of $61.2 million compared to 2024.

Adjusted EBITDA for the full year of 2025 was $142.5 million, an improvement of 55% compared to 2024, representing 27.6% of revenue compared to 20.6% of revenue in 2024.

2026 Financial Outlook

The company is reiterating 2026 total revenue guidance of 10% to 13% growth, or $570 million to $582 million, driven by testing revenue guidance of 14% to 16% growth, or $560 million to $570 million, excluding the contribution from new tests.

Further, adjusted EBITDA margin is expected to be approximately 25%.

The company is unable to provide a quantitative reconciliation of expected adjusted EBITDA margin to the most directly comparable forward-looking GAAP measure without unreasonable effort, because of the inherent difficulty in accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliations that have not yet occurred, that are dependent on various factors, are out of the company’s control, or that cannot be reasonably predicted. Such adjustments include, but are not limited to, acquisition-related expenses, and other adjustments. Any associated estimate of these items and their impact on GAAP performance for the guidance period could vary materially. For more information on the non-GAAP financial measures, please refer to the section titled “Note Regarding Use of Non-GAAP Financial Measures” at the end of this press release.

Conference Call and Webcast Details

Veracyte will host a conference call and webcast today at 4:30 p.m. Eastern Time to discuss the company's financial results and provide a general business update. The conference call will be webcast live from the company’s website and will be available via the following link: https://edge.media-server.com/mmc/p/motsphxv/. The webcast should be accessed 10 minutes prior to the conference call start time. A replay of the webcast will be available for one year following the conclusion of the live broadcast and will be accessible on the company’s website at https://investor.veracyte.com/events-presentations.

The conference call dial-in can be accessed by registering via the following link:

https://register-conf.media-server.com/register/BI4553e156b9684d869faee6cbab4cb045

About Veracyte

Veracyte (Nasdaq: VCYT) is a global diagnostics company whose vision is to transform cancer care for patients all over the world. We empower clinicians with the high-value insights they need to guide and assure patients at pivotal moments in the race to diagnose and treat cancer. Our Veracyte Diagnostics Platform delivers high-performing cancer tests that are fueled by broad genomic and clinical data, deep bioinformatic and AI capabilities, and a powerful evidence-generation engine, which ultimately drives durable reimbursement and guideline inclusion for our tests, along with new insights to support continued innovation and pipeline development. For more information, please visit www.veracyte.com or follow us on LinkedIn or X (Twitter).

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements, including, but not limited to our statements related to our plans, objectives, and expectations (financial and otherwise), including with respect to our 2026 financial and operating results; and our intentions with respect to our tests and products, including upcoming product launches. Forward-looking statements can be identified by words such as: “appears,” “anticipate,” “intend,” “plan,” “expect,” “believe,” “should,” “may,” “could,” “would,” “will,” “enable,” “positioned,” “offers,” “designed,” “ultimately,” “strategic,” “outlook,” “guidance,” and similar references to future periods. Actual results may differ materially from those projected or suggested in any forward-looking statements. These statements involve risks and uncertainties, which could cause actual results to differ materially from our predictions, and include, but are not limited to: our ability to launch, commercialize and receive reimbursement for our products; our ability to execute on our business strategies relating to the C2i Genomics acquisition, integration of the business and the realization of expected benefits and synergies; our ability to demonstrate the validity and utility of our genomic tests and biopharma and other offerings; our ability to continue executing on our business plan; our ability to continue to scale our global operations and enhance our internal control environment; the impact of the war in Ukraine and other regional conflicts on European economies; the impact of foreign currency fluctuations, volatile interest rates, inflation, the impact of legislation and policies enacted by the current U.S. administration; turmoil in the global banking and finance system; the ongoing conflict in the Middle East; and the performance and utility of our tests in the clinical environment. Additional factors that may impact these forward-looking statements can be found under the caption “Risk Factors” in our Annual Report on Form 10-K filed on February 28, 2025, as well as in other documents that we may file from time to time with the Securities and Exchange Commission. Copies of these documents, when available, may be found in the Investors section of our website at investor.veracyte.com. These forward-looking statements speak only as of the date hereof and, except as required by law, we specifically disclaim any obligation to update these forward-looking statements or reasons why actual results might differ, whether as a result of new information, future events or otherwise.

Note Regarding Use of Non-GAAP Financial Measures

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release and the accompanying tables contain, and reference certain non‐GAAP results including non-GAAP gross margin, non-GAAP operating expenses, adjusted EBITDA, adjusted EBITDA as a percentage of revenue (also referred to as adjusted EBITDA margin), non-GAAP net income, and non-GAAP earnings per share (EPS) and non-GAAP weighted average shares outstanding. These non-GAAP financial measures are not meant to be considered superior to or a substitute for financial measures calculated in accordance with GAAP, and investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool.

We use non-GAAP financial measures to internally evaluate and analyze financial results. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies, many of which present similar non-GAAP financial measures. However, the non-GAAP financial measures we present may be different from those used by other companies, including similarly titled measures.

We compute these non-GAAP measures by adjusting the applicable GAAP measure to remove the impact of certain recurring and non-recurring charges and gains and to adjust for the impact of income tax items related to such adjustments to our GAAP financial statements. In particular, we exclude amortization of acquired intangible assets, acquisition-related expenses relating to our acquisitions of Decipher Biosciences, HalioDx and C2i Genomics, impairment charges associated with the nCounter license and other biopharmaceutical services related to HalioDx intangible assets, all stock-based compensation and certain costs related to restructuring from all of our non-GAAP financial measures as well as depreciation and income tax items from our adjusted EBITDA and adjusted EBITDA as a percentage of revenue. Beginning in the second quarter of 2024, we changed our non-GAAP policy to exclude all stock-based compensation to align with our peers and we have also excluded all stock-based compensation from our prior period non-GAAP financial measures. Management has excluded the effects of these items in non-GAAP financial measures to help investors gain a better understanding of the core operating results and future prospects of the company, consistent with how management measures and forecasts the company’s performance, especially when comparing such results to previous periods or forecasts. The company encourages investors to carefully consider its results under GAAP, together with its supplemental non‐GAAP information and the reconciliation between these presentations. See “Reconciliation of U.S. GAAP to Non-GAAP Financial Measures” for a reconciliation of each non-GAAP measure presented to the comparable GAAP financial measure.

VERACYTE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except share and per share amounts)

Three Months Ended

December 31

Twelve Months Ended

December 31

2025

2024

2025

2024

Revenue:

Testing revenue

135,826

112,152

493,154

418,961

Product revenue

3,848

3,019

14,327

13,650

Biopharmaceutical and other revenue

962

3,461

9,664

13,153

Total revenue

140,636

118,632

517,145

445,764

Cost of revenue: (1)

Cost of testing revenue

33,118

31,645

127,562

114,573

Cost of product revenue

2,621

2,800

8,807

9,110

Cost of biopharmaceutical and other revenue

217

2,622

7,578

12,384

Intangible asset amortization - cost of revenue

2,707

2,811

10,666

11,552

Total cost of revenue

38,663

39,878

154,613

147,619

Gross profit

101,973

78,754

362,532

298,145

Operating expenses: (1)

Research and development

20,849

19,290

70,814

69,294

Selling and marketing

25,940

24,824

100,165

95,434

General and administrative

17,367

26,913

110,784

110,610

Impairment of assets

—

2,754

20,505

3,368

Intangible asset amortization - operating expenses

622

798

2,487

3,297

Total operating expenses

64,778

74,579

304,755

282,003

Income from operations

37,195

4,175

57,777

16,142

Other income (loss), net

3,439

(732

)

10,424

9,602

Income before income taxes

40,634

3,443

68,201

25,744

Income tax provision (benefit)

(515

)

(1,670

)

1,848

1,606

Net income

41,149

5,113

66,353

24,138

Earnings per share:

Basic

0.52

0.07

0.84

0.32

Diluted

0.51

0.06

0.82

0.31

Shares used to compute earnings per common share:

Basic

79,178,087

77,608,924

78,584,291

76,484,759

Diluted

81,387,089

79,905,412

80,573,140

78,163,217

Cost of revenue, research and development, sales and marketing and general and administrative expenses include the following stock-based compensation related expenses:

Three Months Ended

December 31

Twelve Months Ended

December 31

2025

2024

2025

2024

Cost of revenue

618

641

2,286

2,319

Research and development

1,895

1,896

7,919

7,511

Selling and marketing

2,060

1,872

8,317

6,897

General and administrative

6,328

5,220

25,079

19,522

Total stock-based compensation expense

10,901

9,629

43,601

36,249

VERACYTE, INC.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(In thousands)

Three Months Ended

December 31

Twelve Months Ended

December 31

2025

2024

2025

2024

Net income

41,149

5,113

66,353

24,138

Other comprehensive income (loss):

Change in currency translation adjustments

(14,808

)

19,583

(12,072

)

Release of accumulated translation adjustment

—

8,295

—

Other comprehensive income (loss)

(14,808

)

27,878

(12,072

)

Net comprehensive income (loss)

41,157

(9,695

)

94,231

12,066

VERACYTE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

December 31,

2025

2024

(Unaudited)

(See Note 1)

Assets

Current assets:

Cash and cash equivalents

362,578

239,087

Short-term investments

50,311

50,354

Accounts receivable

44,660

46,525

Supplies and inventory

20,546

21,750

Prepaid expenses and other current assets

10,281

14,551

Total current assets

488,376

372,267

Property, plant and equipment, net

22,192

22,953

Right-of-use assets, operating leases

36,599

48,189

Intangible assets, net

89,148

102,301

Goodwill

767,154

745,800

Restricted cash

1,648

1,544

Other assets

902

6,981

Total assets

1,406,019

1,300,035

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

4,593

8,634

Accrued liabilities

48,801

43,826

Current portion of deferred revenue

1,160

1,673

Current portion of acquisition-related contingent consideration

1,332

16,981

Current portion of operating lease liabilities

4,051

7,500

Current portion of other liabilities

—

Total current liabilities

59,937

78,633

Deferred tax liability

646

1,227

Acquisition-related contingent consideration, net of current portion

257

561

Operating lease liabilities, net of current portion

35,603

43,237

Other liabilities

—

411

Total liabilities

96,443

124,069

Total stockholders' equity

1,309,576

1,175,966

Total liabilities and stockholders’ equity

1,406,019

1,300,035

The condensed consolidated balance sheet at December 31, 2024 has been derived from the audited financial statements at that date included in the company's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission on February 28, 2025.

VERACYTE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

Twelve Months Ended

December 31

2025

2024

Operating activities

Net income

66,353

24,138

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

21,415

23,459

Loss on disposal of property, plant and equipment

202

Stock-based compensation

43,601

36,249

Deferred income taxes

(581

)

(233

)

Non-cash lease expense

2,991

4,955

Revaluation of acquisition-related contingent consideration

(15,295

)

2,167

Amortization of discount on short-term investments

(3,270

)

(354

)

Impairment loss

20,505

3,368

Non-cash loss on deconsolidation of subsidiary

6,708

—

Effect of foreign currency on operations

(3,834

)

2,110

Changes in operating assets and liabilities:

Accounts receivable

(708

)

(6,405

)

Supplies and inventory

(2,861

)

(5,871

)

Prepaid expenses and other current assets

(2,054

)

(1,296

)

Other assets

525

(1,222

)

Operating lease liabilities

(2,480

)

(5,407

)

Accounts payable

(1,039

)

(4,305

)

Accrued liabilities and deferred revenue

6,316

3,541

Net cash provided by operating activities

136,307

75,096

Investing activities

Purchase of short-term investments

(149,998

)

(50,000

)

Proceeds from maturity of short-term investments

153,311

—

Loss on deconsolidation of subsidiary - cash

(2,845

)

—

Acquisition of C2i, net of cash acquired

—

5,012

Purchases of property, plant and equipment

(9,677

)

(11,287

)

Net cash used in investing activities

(9,209

)

(56,275

)

Financing activities

Payment of contingent consideration for acquisition

—

(4,500

)

Payment of taxes on vested restricted stock units

(18,304

)

(10,589

)

Proceeds from the exercise of common stock options and employee stock purchases

14,082

19,993

Net cash (used in) provided by financing activities

(4,222

)

4,904

Increase in cash, cash equivalents and restricted cash

122,876

23,725

Effect of foreign currency on cash, cash equivalents and restricted cash

719

(424

)

Net increase in cash, cash equivalents and restricted cash

123,595

23,301

Cash, cash equivalents and restricted cash at beginning of year

240,631

217,330

Cash, cash equivalents and restricted cash at end of year

364,226

240,631

CASH, CASH EQUIVALENTS AND RESTRICTED CASH

(Unaudited)

(In thousands)

December 31,

2025

2024

Cash and cash equivalents

362,578

239,087

Restricted cash

1,648

1,544

Total cash, cash equivalents and restricted cash

364,226

240,631

VERACYTE, INC.

RECONCILIATION OF U.S. GAAP to NON-GAAP FINANCIAL MEASURES

(Unaudited)

(In thousands)

Three Months Ended

December 31

Twelve Months Ended

December 31

2025

2024

2025

2024

Reconciliation of Non-GAAP Cost of Revenue:

GAAP cost of testing revenue

33,118

31,645

127,562

114,573

Stock-based compensation expense

(616

)

(562

)

(2,159

)

(1,973

)

Acquisition related expenses (1)

—

(60

)

Other adjustments (2)

—

)

Non-GAAP cost of testing revenue

32,502

31,083

125,403

112,534

GAAP cost of product revenue

2,621

2,800

8,807

9,110

Stock-based compensation expense

—

)

Acquisition related expenses (1)

—

Other adjustments (2)

(281

)

—

(1,731

)

—

Non-GAAP cost of product revenue

2,340

2,799

7,074

9,106

GAAP cost of biopharmaceutical and other revenue

217

2,622

7,578

12,384

Stock-based compensation expense

)

(78

)

(125

)

(342

)

Acquisition related expenses (1)

—

Other adjustments (2)

—

Non-GAAP cost of biopharmaceutical and other revenue

215

2,544

7,453

12,042

Reconciliation of Non-GAAP Gross Margin:

GAAP Gross Profit

101,973

78,754

362,532

298,145

GAAP Gross Margin

72.5

66.4

70.1

66.9

Amortization of intangible assets

2,707

2,811

10,666

11,552

Stock-based compensation expense

618

641

2,286

2,319

Acquisition related expenses (1)

—

Other adjustments (2)

281

—

1,731

Non-GAAP Gross Profit

105,579

82,206

377,215

312,082

Non-GAAP Gross Margin

75.1

69.3

72.9

70.0

Includes transaction-related expenses and post-combination compensation expenses. For the twelve months ended December 31, 2024, adjustments consist primarily of transaction-related expenses associated with the acquisition of C2i Genomics Ltd. (“C2i Genomics”).

For the three months ended December 31, 2025, adjustments primarily include expense related to the restructuring of Veracyte SAS ($0.3 million). For the twelve months ended December 31, 2025, adjustments include additional expenses related to the restructuring and liquidation proceedings of Veracyte SAS. For the twelve months ended December 31, 2024, adjustments primarily include expense related to restructuring costs associated with portfolio prioritization.

VERACYTE, INC.

RECONCILIATION OF U.S. GAAP to NON-GAAP FINANCIAL MEASURES

(Unaudited)

(In thousands)

Three Months Ended

December 31

Twelve Months Ended

December 31

2025

2024

2025

2024

Reconciliation of Non-GAAP Operating Expenses:

GAAP research and development

20,849

19,290

70,814

69,294

Stock-based compensation expense

(1,895

)

(1,896

)

(7,919

)

(7,511

)

Acquisition related expenses (1)

—

Other adjustments (2)

—

(271

)

Non-GAAP research and development

18,954

17,394

62,895

61,574

GAAP sales and marketing

25,940

24,824

100,165

95,434

Stock-based compensation expense

(2,060

)

(1,872

)

(8,317

)

(6,897

)

Acquisition related expenses (1)

—

(124

)

Other adjustments (2)

—

(1,087

)

Non-GAAP sales and marketing

23,880

22,952

91,848

87,326

GAAP general and administrative

17,367

26,913

110,784

110,610

Stock-based compensation expense

(6,328

)

(5,220

)

(25,079

)

(19,522

)

Acquisition related expenses (1)

12,564

(928

)

11,971

(5,862

)

Other adjustments (2)

(1,309

)

(3,196

)

(7,839

)

(6,564

)

Non-GAAP general and administrative

22,294

17,569

89,837

78,662

GAAP total operating expenses

64,778

74,579

304,755

282,003

Amortization of intangible assets

(622

)

(798

)

(2,487

)

(3,297

)

Stock-based compensation expense

(10,283

)

(8,988

)

(41,315

)

(33,930

)

Acquisition related expenses (1)

12,564

(961

)

11,971

(6,571

)

Other adjustments (2)

(1,309

)

(5,917

)

(28,344

)

(10,643

)

Non-GAAP total operating expenses

65,128

57,915

244,580

227,562

Includes transaction-related expenses and post-combination compensation expenses. For the three months ended December 31, 2025, adjustments consist primarily of transaction-related expenses associated with contingent consideration related to the NanoString Technologies, Inc. ("NanoString") transaction ($0.7 million) and contingent consideration associated with the C2i Genomics acquisition ($11.9 million). For the three months ended December 31, 2024, adjustments consist primarily of transaction-related expenses associated with the acquisition of C2i Genomics ($1.0 million). For the twelve months ended December 31, 2025, adjustments consist primarily of transaction-related expenses associated with the acquisition of C2i Genomics ($10.3 million) and NanoString contingent consideration ($1.7 million). For the twelve months ended December 31, 2024, adjustments consist primarily of transaction-related expenses associated with the acquisition of C2i Genomics.

For the three months ended December 31, 2025, adjustments primarily include expenses related to the restructuring and liquidation proceedings of Veracyte SAS ($1.1 million) and other legal proceedings ($0.2 million). For the three months ended December 31, 2024, adjustments primarily include expense related to Veracyte SAS site investment review ($3.2 million) and expense related to the impairment charge associated with HalioDx ($2.7 million). For the twelve months ended December 31, 2025, adjustments include additional expenses related to Veracyte SAS impairment loss ($20.5 million), the restructuring and liquidation proceedings of Veracyte SAS ($8.7 million), and other legal proceedings ($0.8 million), partially offset by adjustments related to vendor legal settlement ($2.8 million) and restructuring costs ($0.1 million). For the twelve months ended December 31, 2024, adjustments primarily include expense related to restructuring costs associated with a reduction in our Biopharmaceutical and Other segment and with portfolio prioritization, expense related to Veracyte SAS site investment review and expense related to the impairment charge associated with HalioDx.

VERACYTE, INC.

RECONCILIATION OF U.S. GAAP to NON-GAAP FINANCIAL MEASURES

(Unaudited)

(In thousands)

Three Months Ended

December 31

Twelve Months Ended

December 31

2025

2024

2025

2024

Reconciliation of Adjusted EBITDA:

GAAP Net Income (Loss)

41,149

5,113

66,353

24,138

GAAP Net Income (Loss) as a % of Revenue

29.3

4.3

12.8

5.4

Amortization of intangible assets

3,329

3,609

13,153

14,849

Depreciation expense

1,968

2,643

8,262

8,610

Stock-based compensation expense

10,901

9,629

43,601

36,249

Acquisition related expenses (1)

(12,564

)

961

(11,971

)

6,631

Other expense (income), net (2)

(3,546

)

(1,967

)

(13,176

)

(11,647

)

Other adjustments (3)

1,590

7,807

34,466

11,450

Income tax expense (benefit)

(515

)

(1,670

)

1,848

1,606

Adjusted EBITDA

42,312

26,125

142,536

91,886

Adjusted EBITDA as a % of Revenue

30.1

22.0

27.6

20.6

Reconciliation of Non-GAAP Net Income (Loss)

GAAP Net Income (Loss)

41,149

5,113

66,353

24,138

Amortization of intangible assets

3,329

3,609

13,153

14,849

Stock-based compensation expense

10,901

9,629

43,601

36,249

Acquisition related expenses (1)

(12,564

)

961

(11,971

)

6,631

Other adjustments (3)

1,590

7,807

34,466

11,450

Tax adjustments (4)

(1,590

)

1,830

(2,397

)

(349

)

Non-GAAP Net Income

42,815

28,949

143,205

92,968

Reconciliation of Non-GAAP Earnings per Share

Diluted earnings per share, GAAP

0.51

0.06

0.82

0.31

Amortization of intangible assets

0.04

0.05

0.16

0.19

Stock-based compensation expense

0.13

0.12

0.54

0.46

Acquisition related expenses (1)

(0.15

)

0.01

(0.15

)

0.08

Other adjustments (3)

0.02

0.10

0.43

0.15

Tax adjustments (4)

(0.02

)

0.02

(0.03

)

—

Rounding and impact of dilutive shares

—

0.01

—

Diluted earnings per share, non-GAAP

0.53

0.36

1.78

1.19

Weighted average shares outstanding used in computing diluted earnings per share

Diluted, GAAP

81,387,089

79,905,412

80,573,140

78,163,217

Dilutive effect of equity awards (5)

—

Diluted, non-GAAP

81,387,089

79,905,412

80,573,140

78,163,217

Includes transaction-related expenses and post-combination compensation expenses. For the three months ended December 31, 2025, adjustments consist primarily of transaction-related expenses associated with contingent consideration related to NanoString ($0.7 million) and contingent consideration associated with the acquisition of C2i Genomics ($11.9 million). For the three months ended December 31, 2024, adjustments consist primarily of transaction-related expenses associated with the acquisition of C2i Genomics ($1.0 million). For the twelve months ended December 31, 2025, adjustments consist primarily of additional transaction-related expenses associated with the NanoString contingent consideration ($1.0 million) partially offset by expenses associated with the acquisition of C2i Genomics ($1.6 million). For the twelve months ended December 31, 2024, adjustments consist primarily of transaction-related expenses associated with the acquisition of C2i Genomics.

Includes interest income and income related to research tax credits.

For the three months ended December 31, 2025, adjustments primarily include expenses related to the restructuring and liquidation proceedings of Veracyte SAS ($1.4 million) and other legal proceedings ($0.2 million). For the three months ended December 31, 2024, adjustments primarily include the exclusion of unrealized losses associated with foreign exchange impacts on stock-based compensation and intercompany loans ($1.9 million), expense related to Veracyte SAS site investment review ($3.2 million) and expense related to the impairment charge associated with HalioDx ($2.7 million). For the twelve months ended December 31, 2025, adjustments primarily include additional expense related to Veracyte SAS impairment loss ($20.5 million), Veracyte SAS investment review ($7.7 million), the exclusion of unrealized loss related to Veracyte SAS deconsolidation ($6.7 million), the restructuring and liquidation proceedings of Veracyte SAS ($2.4 million), and other legal proceedings ($0.8 million), partially offset by adjustments related to restructuring costs ($0.1 million), vendor legal settlement ($2.8 million), and the exclusion of unrealized gains associated with foreign exchange impacts on stock-based compensation and intercompany loans ($2.3 million). For the twelve months ended December 31, 2024, adjustments primarily include expense related to restructuring costs associated with a reduction in our Biopharmaceutical and Other segment and with portfolio prioritization, expense related to Veracyte SAS site investment review, expense related to the impairment charge associated with HalioDx and the exclusion of unrealized losses associated with foreign exchange impacts on stock-based compensation and intercompany loans.

Incremental non-GAAP tax expense reflects the tax impact of the non-GAAP adjustments listed.

In those periods in which GAAP net (loss) income is negative and non-GAAP net (loss) income is positive, non-GAAP diluted weighted average shares outstanding includes potentially dilutive common shares from equity awards as determined using the treasury stock method.