third quarter 2026
Filed Nov 4, 2026Myriad Genetics Reports Third Quarter 2026 Financial Results; Raises Mid-Point of Full-Year 2026 Revenue Guidance Following Solid Execution
Third-quarter revenue was $202.7 million, down 1% year-over-year but up 6% sequentially, while gross margin declined 200 basis points and the company reported a GAAP operating loss of $39.9 million. Cancer Care Continuum and Mental Health volumes and revenue grew, but Prenatal Health declined and is being sold. The company raised the midpoint of full-year revenue guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30, 2026GAAP | $202.7M | 6% | (1) % |
| Revenue, nine months ended September 30, 2026GAAP | $593.8M | – | (3) % |
| Cost of revenue, three months ended September 30, 2026GAAP | $65M | – | – |
| Gross profit, three months ended September 30, 2026GAAP | $137.7M | – | – |
| Gross margin, third quarter 2026GAAP | 67.9% | – | down 200 basis points |
| Adjusted gross profit, three months ended September 30, 2026non-GAAP | $138.3M | – | – |
| Adjusted gross margin, three months ended September 30, 2026non-GAAP | 68.2 % | – | – |
| Research and development expense, three months ended September 30, 2026GAAP | $26.5M | – | – |
| Sales and marketing expense, three months ended September 30, 2026GAAP | $83.9M | – | – |
| General and administrative expense, three months ended September 30, 2026GAAP | $67.2M | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $177.6M | – | – |
| Adjusted operating expenses, three months ended September 30, 2026non-GAAP | $149.9M | – | increased $9.9 million year-over-year |
| Operating loss, three months ended September 30, 2026GAAP | $39.9M | – | – |
| Net loss, three months ended September 30, 2026GAAP | −$43.9M | – | – |
| Net loss per share, basic and diluted, three months ended September 30, 2026GAAP | $ (0.46) | – | – |
| Adjusted net loss, three months ended September 30, 2026non-GAAP | −$10.7M | – | – |
| Adjusted income (loss) per share diluted, three months ended September 30, 2026non-GAAP | $ (0.11) | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | −$5.3M | – | – |
| Net cash used in operating activities, three months ended September 30, 2026GAAP | −$6.5M | – | – |
| Adjusted operating cash flow, three months ended September 30, 2026non-GAAP | $3.7M | – | – |
| Capital expenditures, three months ended September 30, 2026other | −$1.8M | – | – |
| Capitalization of internal-use software costs, three months ended September 30, 2026other | −$300K | – | – |
| Adjusted free cash flow, three months ended September 30, 2026non-GAAP | $1.6M | – | – |
| Net cash used in operating activities, nine months ended September 30, 2026GAAP | −$30.5M | – | – |
| Adjusted operating cash flow, nine months ended September 30, 2026non-GAAP | −$17.4M | – | – |
| Adjusted free cash flow, nine months ended September 30, 2026non-GAAP | −$29.2M | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $107.1M | – | – |
| Long-term debt, September 30, 2026GAAP | $121.1M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Cancer Care ContinuumThird quarter 2026 hereditary cancer testing revenue decreased 1% year-over-year due to decreases in reimbursement levels, partially offset by a 6% year-over-year increase in volume. Average revenue per hereditary cancer test improved 9% over the second quarter 2026. | $123.9M | – | 1 % |
| Mental HealthThird quarter 2026 revenue increased 2% year-over-year reflecting 3% year-over-year GeneSight volume growth, partially offset by a 1% year-over-year decline in average revenue per test. | 39.5 | – | 2 % |
| Cancer Care Continuum and Mental HealthThird quarter 2026 volume increased 3% year-over-year to 239,000 tests. | 163.4M | – | 1 % |
| Prenatal HealthPrenatal testing revenue declined 12% year-over-year, as volume decreased 11% year-over-year. The company entered into a definitive agreement to sell the Prenatal Health testing business to Labcorp. | 39.3 | – | (12) % |
FY 2026 outlook
- Revenue$780 - $790
- Gross margin66% - 67%
- NoteCancer Care Continuum and Mental Health Revenue: $620 - $630
- NotePrenatal Health Revenue: ~$160
- NoteRevenue guidance midpoint was raised, reflecting Q3 results and current business trends.
- NoteAssumes currency rates as of November 4, 2026.
What drove it
- Total average revenue per test increased 7% sequentially and 1% year-over-year, driven by higher Cancer Care Continuum product mix and progress on payer engagement and revenue cycle management initiatives.
- Total test volume declined 1% sequentially and 2% year-over-year.
- Cancer Care Continuum and Mental Health volume increased 3% year-over-year to 239,000 tests, while Prenatal Health volume decreased 11% to 138,000 tests.
- Gross margin was affected by lower overall test volumes and incremental investments in laboratory personnel.
- Operating expenses reflected the company's multi-year investment in key strategic areas.
- On October 19, 2026, the company entered into a definitive agreement to sell certain assets and liabilities of its Prenatal Health business to Labcorp for $210 million in cash, plus the value of related inventory at closing.
Concerns
- Third-quarter GAAP revenue declined 1% year-over-year and total test volume declined 2% year-over-year.
- Third-quarter gross margin was 67.9%, down 200 basis points from the third quarter 2025.
- The GAAP operating loss was $39.9 million, compared with $23.3 million in the third quarter of 2025.
- Adjusted EBITDA was $ (5.3) million, compared with $ 10.3 million in the third quarter of 2025.
- Prenatal Health revenue declined 12% year-over-year and volume declined 11% year-over-year.
- The Prenatal Health sale is subject to customary closing conditions, including regulatory approvals.
What to watch
- Closing of the Prenatal Health business sale, which is expected to close by early 2027.
- The effect of the sale on revenue growth rate, profitability, liquidity and the balance sheet.
- Cancer Care Continuum reimbursement levels, payer engagement and revenue cycle management initiatives.
- Progress toward Medicare coverage of Precise MRD for breast cancer patients through the Molecular Diagnostics Program.
- Quarter-to-quarter adjusted gross-margin fluctuation given product mix and pricing trends.
- Delivery against FY 2026 revenue guidance of $780 - $790 and adjusted gross margin guidance of 66% - 67%.
Balance sheet and cash flow
- Cash and cash equivalents were $ 107.1 million as of September 30, 2026, compared with $ 149.6 million as of December 31, 2025.
- Long-term debt was $ 121.1 million as of September 30, 2026, compared with $ 119.9 million as of December 31, 2025.
- Net cash used in investing activities was $ (2.1) million for the three months ended September 30, 2026, compared with $ (6.2) million in the prior-year period.
- Net cash used in financing activities was $ (0.3) million for the three months ended September 30, 2026, compared with net cash provided by financing activities of $ 56.2 million in the prior-year period.
- Cash, cash equivalents, and restricted cash at end of the period was $ 107.8 million.
Analysis
Myriad reported third-quarter 2026 revenue of $202.7 million, down 1% year-over-year from $205.7 million, while management reported a 6% sequential increase. The mix improved, with total average revenue per test up 7% sequentially and 1% year-over-year, but total test volume declined 1% sequentially and 2% year-over-year. Cancer Care Continuum and Mental Health together produced $163.4 million of revenue, up 1%, and their volume increased 3% to 239,000 tests. Prenatal Health revenue fell 12% to $39.3 million as volume fell 11%.
Profitability weakened year-over-year. GAAP gross margin was 67.9%, down 200 basis points, reflecting lower overall test volumes and incremental investments in laboratory personnel. Total operating expenses rose to $177.6 million from $167.1 million, and adjusted operating expenses increased $9.9 million year-over-year to $149.9 million, reflecting multi-year investment in strategic areas. The resulting GAAP operating loss was $39.9 million and adjusted EBITDA was $ (5.3) million, compared with adjusted EBITDA of $10.3 million in the prior-year quarter.
Cash generation also declined from the prior-year quarter. Net cash used in operating activities was $ (6.5) million, while adjusted operating cash flow was $3.7 million and adjusted free cash flow was $1.6 million. Cash and cash equivalents were $107.1 million at September 30, 2026, and long-term debt was $121.1 million. Management expects the proposed Prenatal Health transaction to strengthen the balance sheet, but the transaction remains subject to customary closing conditions, including regulatory approvals.
The company entered into an agreement on October 19, 2026 to sell its Prenatal Health business to Labcorp for $210 million in cash, plus the value of inventory at closing, with closing expected by early 2027. The divestiture follows persistent contraction in Prenatal Health and shifts the company toward Cancer Care Continuum and Mental Health. CCC hereditary cancer testing revenue decreased 1% year-over-year because of lower reimbursement levels, although volume rose 6% and average revenue per hereditary cancer test improved 9% over the second quarter 2026.
Management raised the midpoint of FY 2026 revenue guidance to $780 - $790 and guided to $620 - $630 of Cancer Care Continuum and Mental Health revenue, approximately $160 of Prenatal Health revenue, and adjusted gross margin of 66% - 67%. The release explicitly notes that gross margins are expected to fluctuate quarter to quarter with product mix and pricing trends. Execution on payer engagement, revenue cycle management, Cancer Care Continuum pricing, and the timing and completion of the Prenatal Health sale are the central reported items to monitor.
Management, verbatim
We have made meaningful progress on our path to accelerate profitable growth and strengthen the company’s financial profile. Our third quarter 2026 financial results exceeded our expectations, led by our on-going focus on the Cancer Care Continuum (CCC).
Sam Raha, President and CEO, Myriad Genetics
The sale of our Prenatal Health business is a decisive step to support our strategic intent to increase profitable growth by focusing on the Cancer Care Continuum including screening, treatment selection and monitoring along with remission surveillance.
Sam Raha, President and CEO, Myriad Genetics
Lastly, we are increasing the mid-point of our full-year 2026 revenue guidance modestly, as we balance the positive third quarter 2026 performance with the timing of the sale of the Prenatal Health business, which is expected to close by early 2027.
Sam Raha, President and CEO, Myriad Genetics
Not in the filing
stated, not guessed- Prior-quarter absolute revenue, gross-margin, operating-income, net-income, EPS and segment-revenue figures were not provided.
- GAAP tax rate was not provided.
- FY 2026 operating-expense guidance was not provided.
- FY 2026 tax-rate guidance was not provided.
- Share repurchases and dividends were not reported.
- Previous outlook was not provided, so comparison with prior guidance cannot be made.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.