Veracyte Narrows 2026 Testing Guidance After Slower Prostate Growth

The Tip Desk · November 10, 2026 · 2 min read

Third-quarter revenue reached $151.8 million, up 15%, as Decipher Prostate volume growth cooled and the company cut full-year testing revenue guidance.

Veracyte, Inc. (VCYT), a cancer diagnostics company, reported third-quarter revenue of $151.8 million, up 15% from a year earlier, as Decipher Prostate growth cooled and the company narrowed its 2026 testing outlook.

Testing revenue was $146.4 million, also up 15%, after 19% growth in the second quarter and 26% in the first. Decipher Prostate revenue rose 12% to $92.3 million, down from 20% growth in the second quarter and 30% in the first. Volume was about 29,900 tests, up 12% year over year. Chief executive Marc Stapley said Decipher Prostate volume was below the company’s expectations. Afirma revenue was $51.5 million, with volume of about 19,100 tests.

Product revenue rose 40% to $4.6 million, which the company attributed to adoption of Prosigna IVD after phase III OPTIMA trial results at ASCO. Biopharmaceutical and other revenue was $0.7 million. Total volume was 52,744 tests; testing volume was 49,498.

GAAP net income was $31.5 million, or 20.8% of revenue, up $12.4 million from the year-earlier quarter. Diluted GAAP earnings were $0.38 a share, up $0.14. Non-GAAP diluted earnings were $0.51 a share, unchanged. Adjusted EBITDA was $41.2 million, or 27.2% of revenue, after a 29.2% margin in the second quarter and 30.8% in the first. GAAP gross margin was 71%; non-GAAP gross margin was 74%.

GAAP operating expenses were $90.5 million, including research and development of $32.2 million versus $16.0 million a year earlier. Non-GAAP operating expenses grew 24% to $72.9 million. The company generated $40.3 million of cash from operations in the quarter and ended September 30 with $370.5 million of cash, cash equivalents and short-term investments.

Veracyte now expects 2026 total revenue of $590 million to $593 million, representing 14% to 15% growth, compared with prior guidance of $590 million to $596 million. Testing revenue guidance was cut to $571 million to $573 million, representing 16% growth, from $576 million to $582 million, with minimal contribution from recently launched tests. The company continues to expect adjusted EBITDA margin of greater than 26% for 2026.

The board authorized a share repurchase program for up to $100 million of common stock, to be funded from available cash and expiring after 12 months. Veracyte said it acquired Convergent Genomics to add a urinary tumor DNA platform for bladder cancer and secured U.S. Medicare reimbursement for Prosigna Breast Risk of Recurrence in eligible early-stage hormone-receptor positive breast cancer patients. The company said it has served more than 1 million patients to date.