10-K: Myriad Genetics Reports $365.9M Loss Amid Revenue Dip

Myriad Genetics reported a significant net loss of $365.9 million in 2025, driven by substantial impairment charges and a 2% revenue decrease, despite strategic advancements in its testing portfolio.

Summary

• Myriad Genetics reported a net loss of $365.9 million for the year ended December 31, 2025, a significant increase from the $127.3 million net loss in 2024.
• Total revenue decreased by 2% year-over-year to $824.5 million in 2025, primarily due to a 15% decline in Mental Health revenue and a 3% decrease in Tumor Profiling revenue.
• The decrease in Mental Health revenue was largely attributed to UnitedHealthcare's discontinuation of GeneSight test coverage under certain plans, leading to a 20% decrease in average revenue per test.
• Goodwill and long-lived asset impairment charges totaled $319.4 million in 2025, including $234.7 million in goodwill impairment for Women's Health and Mental Health reporting units, and $82.0 million in intangible asset impairment.
• Overall testing volumes increased by approximately 1% in 2025, with Hereditary Cancer volumes up 7% and Mental Health volumes up 6%, partially offsetting revenue declines.
• The company completed the transition to next-generation laboratory facilities in 2025, aiming for enhanced automation, reduced turnaround time, and improved cost efficiency.
• Cash and cash equivalents increased to $149.6 million as of December 31, 2025, from $102.4 million in 2024, partly due to a new $125 million secured term debt facility with OrbiMed.
• Operating cash flow improved to a positive $1.8 million in 2025, compared to a negative $8.7 million in 2024.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing with a negative sentiment due to the substantial increase in net loss, significant impairment charges, and a decline in overall revenue, particularly in the Mental Health segment. While there are positive strategic developments and an improved operating cash flow, the financial performance indicates considerable challenges.

Positives

• Operating cash flow improved significantly, moving from a negative $8.7 million in 2024 to a positive $1.8 million in 2025.
• Completed the transition of laboratory operations to next-generation facilities in 2025, designed to enhance automation, reduce turnaround time, and improve cost efficiency.
• Expanded the MyRisk Hereditary Cancer Test in November 2025 to include 63 genes across 11+ cancer types, strengthening the comprehensive hereditary cancer offering.
• Initiated early access to the FirstGene Multiple Prenatal Screen in June 2025 through a multi-site study, with a full commercial launch expected in 2026.
• Began offering the Prequel prenatal cell-free DNA screen at eight weeks gestational age, an earlier availability compared to the previous 10 weeks.
• Received six new U.S. patents in 2025 covering technological innovations related to the Precise MRD assay.
• New clinical data supporting the performance and potential clinical utility of the Precise MRD test was presented at major scientific conferences in 2025.
• Entered into a strategic collaboration with SOPHiA GENETICS S.A. in September 2025 to co-develop a global liquid biopsy companion diagnostic solution.
• Advanced development of an AI-enabled prostate cancer diagnostic test in collaboration with PATHOMIQ Inc., with an anticipated commercial launch in the first half of 2026.
• Earned the Great Place to Work Certification for the third consecutive year in July 2025, with 84% of employees rating it as a Great Place to Work in 2025.
• Maintained a strong Net Promoter Score (NPS) above 70 since 2022, indicating high user satisfaction and advocacy.

Negatives

• Reported a substantial net loss of $365.9 million in 2025, significantly wider than the $127.3 million loss in 2024.
• Total revenue decreased by 2% year-over-year to $824.5 million in 2025.
• Incurred significant goodwill and long-lived asset impairment charges of $319.4 million in 2025, primarily affecting the Women's Health and Mental Health reporting units.
• Mental Health revenue decreased by 15% ($26.1 million) due to UnitedHealthcare's discontinuation of GeneSight test coverage, which is expected to continue negatively impacting revenue in future periods.
• Tumor Profiling revenue decreased by 3% ($4.1 million), partly due to the divestiture of the European EndoPredict business in August 2024.
• Expects to discontinue sales of the EndoPredict test in the United States during the first half of 2026.
• The company's stock price was highly volatile in 2025, ranging from $3.76 to $15.47 per share, and its cumulative total stockholder return significantly underperformed the Nasdaq Composite and Nasdaq Biotechnology Total Return indices from 2020-2025.
• Long-term debt increased to $119.9 million in 2025 from $39.6 million in 2024 due to the new credit facility, introducing new debt covenants and interest expenses.

Risks

• Inability to generate sufficient revenue from existing tests or develop new tests to be profitable.
• Strategic plan may not achieve anticipated results, revenue growth, or profitability.
• Government and other third-party payors may fail to provide coverage and adequate payment for existing and future tests.
• Inability to secure additional funding if cash flow from operations is insufficient.
• Subject to debt covenants that impose operating and financial restrictions, with potential for material adverse impact on operations and liquidity if not complied with.
• Potential for securities class action lawsuits, stockholder derivative actions, and product or professional liability claims, which could result in substantial losses.
• Inability to attract and retain experienced and qualified personnel, including key management personnel.
• Risks associated with acquisitions, including integration difficulties, failure to realize benefits, increased expenses, and assumption of liabilities.
• Adverse impact on business, results of operations, and financial condition from selling or discontinuing certain existing products or services (e.g., EndoPredict).
• Failure to comply with laws and regulations related to submission of claims for services could result in significant monetary damages and penalties.
• Security breaches, loss of data, cyberattacks, and other disruptions could compromise sensitive information or expose to liability.
• Significant disruption in information technology systems, or those of third-parties, could adversely affect business operations and financial condition.
• Artificial intelligence introduces emerging risks and challenges, including flawed algorithms, biased datasets, compliance violations, cybersecurity risks, and intellectual property threats.
• Reliance on single laboratory facilities for processing most tests, making the business vulnerable to loss or interruption of these facilities.
• Dependence on a limited number of third-party or single-source suppliers for equipment, reagents, and specimen collection services.
• International business exposes the company to business, regulatory, political, operational, financial, and economic risks.
• International trade disputes, including tariffs, could adversely impact business.
• Ethical, legal, and social concerns related to the use of genetic information could reduce demand for tests.
• Reliance on commercial courier delivery services to transport biological materials, with disruptions potentially harming the business.
• Adverse public health developments (e.g., pandemics) could adversely affect financial condition and results of operations.
• Risks associated with currency exchange rate fluctuations.
• Impairment in the value of goodwill or other intangible assets could have a material adverse effect on operating results and financial condition.
• Estimates of actionable market size and forecasts of market growth may prove to be inaccurate.
• Ability to use net operating loss carryforwards and certain other tax attributes may be limited.
• Changes in tax laws or their implementation or interpretation may adversely affect business and financial condition.
• Tests in development may not be clinically effective or achieve significant commercial market acceptance.
• Failure to compete effectively with scientific and commercial competitors.
• Termination of relationships with current research collaborators or scientific advisors.
• Failure to protect proprietary technology could lead to direct competition.
• Litigation or other proceedings arising from claims of intellectual property infringement.
• Failure to comply with obligations under license or technology agreements could lead to loss of critical license rights.
• Claims of wrongful use or disclosure of alleged trade secrets.
• Failure to adequately protect trademarks, service marks, trade names, and trade dress.
• Government investigations could have a material adverse effect on financial condition, results of operations, and cash flows.
• Changes in health care policy could increase costs and impact sales and reimbursement for tests.
• Loss, suspension, or restriction of a license, certification, or accreditation under CLIA or other laws.
• Planned or potential changes in FDA regulation of laboratory developed tests (LDTs) could result in delay and additional expense.
• FDA regulation of the GeneSight Psychotropic test could be disruptive to the business.
• Companion and complementary diagnostic tests require FDA approval, which may not be secured in a timely manner or at all.
• Ongoing regulatory compliance obligations for companion diagnostic tests.
• Environmental risks that may result in liability.
• Stock price is highly volatile and may lose all or a significant part of its value.
• Inability to achieve and maintain effective disclosure controls and procedures and internal control over financial reporting.
• Anti-takeover provisions of Delaware law, charter, and bylaws could make a third-party acquisition difficult.
• Shareholder activism can have a significant impact on operations, strategy, and overall performance.
• Future sales and issuances of common stock would result in dilution of percentage ownership.
• No intention to pay dividends, limiting returns to changes in common stock value.
• Increasing scrutiny and evolving expectations from stakeholders regarding ESG practices may impose additional costs or risks.
• Exclusive forum provisions in certificate of incorporation and bylaws could limit stockholders' ability to obtain a favorable judicial forum.

Future Outlook

The company expects R&D investment to increase in 2026, with a focus on the Cancer Care Continuum. It anticipates the commercial launch of its AI-enabled prostate cancer diagnostic test (PATHOMIQ_PRAD) and the full commercial launch of FirstGene in the first half of 2026. Sales of the EndoPredict test in the United States are expected to be discontinued during the first half of 2026. The negative impact on Mental Health revenue from UnitedHealthcare's coverage decision for GeneSight is expected to continue in future periods. The company believes its existing capital resources will be sufficient for at least the next 12 months and plans to improve its environmental footprint assessment with expanded public disclosures.

Management Comments

• Myriad Genetics is a leading molecular diagnostics and precision medicine company committed to advancing health and well-being for all.
• We believe that engaging with providers and patients throughout their consumer and patient journey will better enable us to execute our strategies and fulfill our mission.
• Our strategic intent is to accelerate profitable growth by focusing on (i) providing a comprehensive testing menu for the Cancer Care Continuum (CCC) market with a priority for high growth applications; (ii) growing our Prenatal Health and Mental Health revenues at or above market growth; and (iii) delivering sustained profitable growth through financial and operational discipline and leveraging our operating model.
• We believe Myriad's ultra-sensitive Precise MRD offering, combined with our growing portfolio of other relevant diagnostic tests that are a common part of cancer care and, our commercial leadership in serving community medicine, will enable us to establish and grow a meaningful MRD business over the coming years.
• We believe these improvements [in laboratory operations], combined with our ongoing operational initiatives, position us to achieve greater scalability and reduce operating expenses as a percentage of revenue over time.
• We are committed to making molecular testing accessible and actionable for patients and providers while driving long-term growth and profitability.
• We believe the success of our mission depends, in part, on our ability to attract, retain and motivate highly skilled and qualified personnel who share our values and commitment to innovation.
• We believe our most recent survey in 2025 shows how these intentional efforts are making a difference as 84% of our employees rated us as a Great Place to Work.
• We believe that our disciplined approach to R&D, coupled with strategic collaborations, will position us for sustainable growth and continued market leadership in the field of molecular diagnostic testing and precision medicine.
• We believe that our existing cash and cash equivalents, future cash flow from operations, and amounts available for borrowing under our Credit Facility... will be sufficient to meet our anticipated cash requirements for at least the next 12 months.

Industry Context

StockSavvy.ai notes that the healthcare industry is rapidly evolving towards patient-centered and value-based care, increasingly leveraging genetic insights, molecular diagnostics, and precision medicine. Key trends include the acceleration of personalized and home-based care, growing consumer demand for validated genetic testing, increased focus on health equity, broader use of data analytics, rapid adoption of low-cost sequencing and automation, and the integration of artificial intelligence. The market for clinical laboratory and genetic testing remains intensely competitive, characterized by rapid technological change, frequent new product introductions, and ongoing reimbursement challenges. Myriad Genetics operates within this dynamic environment, facing competition from major diagnostic companies, reference laboratories, and specialized molecular diagnostic firms.

Comparison to Industry Standards

• The company's Net Promoter Score (NPS) has consistently been above 70 since 2022, which is considered a strong indicator of high user satisfaction and advocacy, suggesting a competitive advantage in customer experience.
• Myriad Genetics' cumulative total stockholder return significantly underperformed the Nasdaq Composite Total Return Index (XCMP) and the Nasdaq Biotechnology Total Return Index (XNBI) over the five-year period ending December 31, 2025, indicating a weaker stock performance compared to broader market and biotechnology sector benchmarks.
• The company competes with major diagnostic players like Natera, Inc., Foundation Medicine, Inc., Caris Life Sciences, Tempus, Laboratory Corporation of America Holdings, and Quest Diagnostics Incorporated across its oncology, women's health, and mental health segments, many of whom possess larger customer bases, greater brand recognition, and more extensive resources.

Management Changes

Corporate Governance

Legal Proceedings

• Settled a securities class action lawsuit for $77.5 million in cash, with the settlement approved on December 15, 2023.
• Settled stockholder derivative actions, agreeing to corporate governance reforms and paying $950,000 in attorneys' fees and expenses, with the settlement approved on November 26, 2024.
• A qui tam complaint, filed on November 3, 2022, alleging False Claims Act violations against Carolina Urology Partners, PLLC, and certain of its current or former physician partners, and the company and certain of its former employees, was unsealed on January 22, 2025. The government declined to intervene, and the company filed a motion to dismiss in June 2025.
• Settled a patent infringement lawsuit with Ravgen, Inc. for $12.75 million on October 23, 2023.

Stakeholder Impact

• **Shareholders**: Experienced significant dilution risk from past equity issuances and potential future ones, no cash dividends, and substantial stock price volatility. The significant net loss and impairment charges negatively impacted shareholder equity. Corporate governance reforms from derivative lawsuits aim to improve oversight.
• **Employees**: The company maintains a flexible work environment and competitive compensation and benefits. A 10% voluntary turnover rate in 2025 and 84% rating as a 'Great Place to Work' suggest generally positive employee relations. Management changes at the senior level could bring new strategic direction.
• **Customers/Patients**: Benefit from expanded test offerings (MyRisk, Foresight, FirstGene, Precise MRD) and earlier prenatal screening options (Prequel). However, the discontinuation of GeneSight coverage by UnitedHealthcare negatively impacts patient access to mental health pharmacogenomic testing.
• **Biopharma Partners**: New strategic collaborations with PATHOMIQ, Inc. and SOPHiA GENETICS S.A. indicate continued engagement in companion diagnostic and AI-enabled diagnostic development, potentially leading to new revenue streams and market opportunities.
• **Creditors**: The new $200 million Credit Facility with OrbiMed provides liquidity but also imposes debt covenants, which the company must comply with to avoid default.

Next Steps

• Increase R&D investment in 2026, with a focus on the Cancer Care Continuum, to support innovation, new product development, and clinical evidence generation.
• Discontinue sales of the EndoPredict test in the United States during the first half of 2026.
• Anticipate the commercial launch of the AI-enabled prostate cancer diagnostic test (PATHOMIQ_PRAD) in the first half of 2026.
• Expect a full commercial launch of the FirstGene Multiple Prenatal Screen in 2026, following its early access rollout in 2025.
• Continue engagement efforts with payors regarding GeneSight coverage to mitigate negative impacts on Mental Health revenue.
• Expand the Precise Oncology portfolio with new offerings, including Precise MRD, and invest in automation, digital workflows, and clinical evidence generation.
• Improve environmental footprint assessment and provide expanded public disclosures, including additional greenhouse gas information.
• Take possession of approximately 63,000 additional square feet of laboratory and office space at the corporate headquarters in 2026 to accommodate future operating needs.

Key Dates

Recommendation

The company reported a substantial net loss of $365.9 million in 2025, a significant increase from the prior year, primarily due to over $300 million in goodwill and intangible asset impairment charges. Revenue declined by 2%, with a notable 15% drop in Mental Health revenue due to a major insurer's coverage discontinuation for a key product. While there are strategic initiatives and an improved operating cash flow, the overall financial performance, coupled with significant asset write-downs and underperformance relative to industry benchmarks, suggests underlying operational and market challenges that warrant a cautious 'sell' recommendation for seasoned investors.

Keywords

Molecular Diagnostics, Precision Medicine, Genetic Testing, Oncology, Women's Health, Mental Health, Hereditary Cancer, Prenatal Screening, Pharmacogenomics, Companion Diagnostics, MRD Testing, SEC Filing, 10-K, Biotechnology, Healthcare, Genomics, AI Diagnostics, Laboratory Developed Tests, Reimbursement, Intellectual Property