Myriad Cuts Outlook as Pricing Pressure Deepens Losses
The genetic-testing company lowered its 2026 revenue forecast to $770 million-$790 million.
Myriad Genetics (MYGN) reported an 11% decline in second-quarter revenue as weaker reimbursement outweighed largely stable testing demand. The genetic-testing company’s performance reversed the 2% growth recorded in the first quarter.
The downturn reflected a pricing inflection more than a broad volume contraction. Average revenue per test fell 9% from a year earlier, while total test volume slipped 1% to 379,000. Revenue also included an $11.0 million reduction tied to revised cash-collection estimates for tests completed in prior periods amid increased payer friction.
Revenue totaled $190.7 million, down from $200.4 million in the first quarter. The adjusted loss widened to $0.25 a share from $0.09 a share sequentially and adjusted earnings of $0.04 a share in the fourth quarter of 2024.
Cancer Care Continuum revenue fell 11% to $114.1 million even as volume rose 6%. Within the business, hereditary-cancer testing revenue declined 13% despite 8% volume growth as lower reimbursement and unfavorable estimate changes tied mainly to first-quarter orders weighed on results.
Prenatal Health remained the weakest volume category, with revenue down 16% to $39.8 million and volume off 9%. Mental Health revenue fell 3% to $36.8 million even as GeneSight volume rose 4%, after an aged-receivables write-off contributed to a 6% decline in average revenue per test.
Lower pricing also compressed profitability. GAAP gross margin fell to 66.6% from 68.7% in the first quarter, while adjusted EBITDA deteriorated to a $16.9 million loss from a $4.5 million loss. Adjusted operating expenses rose to $150.5 million as Myriad continued strategic investment and absorbed a full quarter of costs from its expanded commercial team.
Myriad now expects full-year revenue of $770 million to $790 million and an adjusted gross margin of 66% to 67%. The company suspended its previous adjusted EBITDA guidance due to second-quarter performance, lower Prenatal Health volumes, more conservative revenue-per-test assumptions and strategic initiatives.
The company launched Prolaris + AI during the quarter and introduced the FirstGene prenatal screening offering in July. Myriad also began an efficiency and scalability program called Ascend, bringing in an outside professional-services firm and starting a portfolio review aimed at reallocating capital and improving profitability and liquidity.