Myriad Genetics Inc.

05/06/2026 | Press release | Distributed by Public on 05/06/2026 04:09

Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations
The following Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and the related notes thereto included in this Quarterly Report on Form 10-Q and the audited Consolidated Financial Statements and related notes thereto and Management's Discussion and Analysis of Financial Condition and Results of Operations for the year ended December 31, 2025 included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, on February 24, 2026.
"We," "us," "our," "Myriad" and the "Company" as used in this Quarterly Report on Form 10-Q refer to Myriad Genetics, Inc., a Delaware corporation, and its subsidiaries.
Myriad, the Myriad logo, BRACAnalysis, BRACAnalysis CDx, Colaris, MyRisk, Myriad myRisk, MyRisk Hereditary Cancer, MyChoice, Tumor BRACAnalysis CDx, MyChoice CDx, Prequel, Prequel with Amplify, Amplify, Foresight, Foresight Universal Plus, Precise Tumor, Precise Oncology Solutions, Precise Liquid, Precise MRD, FirstGene, SneakPeek, SneakPeek Early Gender DNA Test, SneakPeek Snap, Urosuite, Mygenehistory, Health.Illuminated., RiskScore, Prolaris, and GeneSight are registered trademarks or trademarks of Myriad. Solely for convenience, trademarks, trade names and service marks referred to in this Quarterly Report on Form 10-Q may appear without the ®, ™ or SM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable licensor to these trademarks, trade names and service marks.
Cautionary Statement Regarding Forward-Looking Statements
The SEC encourages companies to disclose forward-looking information so that investors can better understand a company's future prospects and make informed investment decisions. This Quarterly Report on Form 10-Q contains such "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.
Words such as "may," "anticipate," "estimate," "expects," "projects," "intends," "plans," "believes," "seek," "could," "continue," "likely," "will," "strategy," and "goal" and words and terms of similar substance used in connection with any discussion of future operating or financial performance identify forward-looking statements. All forward-looking statements are management's present expectations of future events as of the date hereof and are subject to a number of known and unknown risks and uncertainties that could cause actual results, conditions, and events to differ materially and adversely from those anticipated. These risks include, but are not limited to:
•the risk that sales and profit margins of our existing tests may decline;
•the risk that we may not be able to operate our business on a profitable basis;
•risks related to our ability to achieve certain revenue growth targets and generate sufficient revenue from our existing product portfolio or in launching and commercializing new tests to be profitable;
•risks related to recent changes in our senior management team and the successful implementation of our strategic plan;
•risks related to changes in governmental or private insurers' coverage and reimbursement levels for our tests or our ability to obtain reimbursement for our new tests at comparable levels to our existing tests;
•risks related to increased competition and the development of new competing tests;
•the risk that we may be unable to develop or achieve commercial success for additional tests in a timely manner, or at all;
•the risk that we may not successfully develop new markets or channels for our tests;
•the risk that licenses to the technology underlying our tests and any future tests are terminated or cannot be maintained on satisfactory terms;
•risks related to delays or other problems with operating our laboratory testing facilities;
•risks related to public concern over genetic testing in general or our tests in particular;
•risks related to regulatory requirements or enforcement in the United States and foreign countries and changes in the structure of the healthcare system or healthcare payment systems;
•risks related to our ability to obtain new corporate partnerships and collaborations or licenses and acquire or develop new technologies or businesses on satisfactory terms, if at all;
•risks related to our ability to successfully integrate and derive benefits from any technologies or businesses that we license, acquire, or develop;
•the risk that we are not able to secure additional financing to fund our business, if needed, in a timely manner or on favorable terms, if at all;
•risks related to our projections or estimates about the potential market opportunity for our current and future products;
•the risk that we or our licensors may be unable to protect or that third parties will infringe the proprietary technologies underlying our tests;
•the risk of patent-infringement claims or challenges to the validity of our patents;
•risks related to changes in intellectual property laws covering our tests, or patents or enforcement, in the United States and foreign countries;
•risks related to security breaches, loss of data and other disruptions, including from cyberattacks and other cybersecurity incidents;
•risks of new, changing and competitive technologies in the United States and internationally, and that we may not be able to keep pace with the rapid technology changes in our industry, or properly leverage new technologies to achieve or sustain competitive advantages in our products;
•the risk that we may be unable to comply with financial or operating covenants under our credit or lending agreements;
•the risk that we may not be able to maintain effective disclosure controls and procedures and internal control over financial reporting;
•risks related to current and future investigations, claims or lawsuits, including derivative claims, product or professional liability claims, and risks related to the amount of our insurance coverage limits and scope of insurance coverage with respect thereto; and
•other factors discussed under the heading "Risk Factors" contained in Part I, Item 1A of our Annual Report on Form 10-K filed with the SEC on February 24, 2026, as updated in subsequent filings we make with the SEC.
In light of these assumptions, risks and uncertainties, the results and events discussed in the forward-looking statements contained in this Quarterly Report on Form 10-Q, or in any document incorporated by reference might not occur. Stockholders are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q. We are not under any obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise except as required by applicable law. All forward-looking statements in this Quarterly Report on Form 10-Q attributable to us or to any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section.
General
Myriad Genetics is a leading molecular diagnostics and precision medicine company committed to advancing health and well-being for all. We develop and commercialize molecular tests that help patients and providers uncover genetic insights. Our tests assess the risk of developing disease or disease progression and guide treatment decisions across medical specialties where molecular insights can significantly improve patient care, support earlier detection, enable more precise treatment and contribute to lowering healthcare costs.
We believe there are significant growth opportunities in addressing the pressing healthcare needs of patient populations through innovative molecular diagnostic testing and precision medicine solutions and services. Our long-term growth strategy is built on leveraging our differentiated strengths, including our reputation for trusted high-quality tests and customer service, and our established, extensive commercial reach in community medicine. Our strategy also leverages investments in science and innovation, technology-enabled operations, an enhanced customer experience, strong commercial execution, and scalable operations. Our strategic intent is to accelerate profitable growth by focusing on (i) providing a comprehensive testing menu for the Cancer Care Continuum 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. Under this strategy, we plan to leverage our strong scientific foundation, deep clinical partnerships, and technology-enabled capabilities to expand adoption of our testing portfolio and integrate our precision medicine solutions more deeply into clinical workflows across the Cancer Care Continuum, Prenatal Health, and Mental Health. We are committed to making molecular testing accessible and actionable for patients and providers while driving long-term growth and profitability.
Business Updates
Our recent significant business updates include the following:
•In April 2026, we announced our commitment to present four abstracts at the Society of Gynecologic Oncology (SGO) Annual Meeting highlighting new Precise MRD data in ovarian cancer and we announced expanded access to our MyChoice test to prostate cancer patients in Japan.
•In March 2026, we launched the Precise MRD test at a select number of oncology practices. Our ultrasensitive assay represents meaningful progress toward earlier insight, more informed decisions, and better outcomes for cancer patients.
•In March 2026, we received FDA approval of the MyChoice CDx test as the companion diagnostic for Zejula (niraparib) for patients with ovarian cancer and announced the commercial launch of Precise MRD with select community oncologists, marking an important milestone in advancing minimal residual disease, or MRD, testing into clinical practice.
•In February 2026, we announced that six abstracts presented at American Society of Clinical Oncology (ASCO) 2026 Genitourinary (GU) Cancers Symposium reinforced the clinical impact of our Precise MRD, Prolaris, and MyRisk tests, and also announced results from a study of FirstGene that demonstrated high analytical sensitivity and specificity for each component of the Precise MRD test. FirstGene continues to be used in the CONNECTOR study, a multi-site, prospective clinical study designed to evaluate test performance in real-world clinical practice and generate evidence to support clinical validity and clinical utility across the multiple components of the assay as FirstGene advances toward full commercial launch.
•In January 2026, we announced advancement of the Precise MRD commercialization timeline, supported by new clinical study data that we believe further validates the performance and utility of Precise MRD.
Results of Operations for the Three Months Ended March 31, 2026 and 2025
The results of operations for the three months ended March 31, 2026 and 2025 are discussed below.
Revenue
The following table summarizes revenue changes in our core product categories:
Three months ended March 31, % of Total Revenue
(in millions) 2026 2025 Change 2026 2025
Cancer Care Continuum $ 120.2 $ 115.6 $ 4.6 60% 59%
Prenatal Health 41.9 49.3 (7.4) 21% 25%
Mental Health 38.3 31.0 7.3 19% 16%
Total revenue $ 200.4 $ 195.9 $ 4.5 100% 100%
The following table summarizes volume changes in our core product categories:
Three months ended March 31,
(in thousands) 2026 2025 % Change
Volume:
Cancer Care Continuum 96 85 13%
Prenatal Health 153 173 (12)%
Mental Health 136 127 7%
Total
385 385 -%
Revenue increased $4.5 million for the three months ended March 31, 2026 compared to the same period in the prior year. Mental Health revenue increased $7.3 million due to a 15% increase in revenue per test and a 7% increase in volume. Cancer Care Continuum revenue increased $4.6 million due to a 13% increase in volume that was partially offset by a 8% decrease in revenue per test. These increases in revenue were partially offset by a decrease in Prenatal Health revenue. Prenatal Health revenue decreased $7.4 million due to a 12% decrease in volume and a 4% decrease in revenue per test.
Cost of Revenue
Three months ended March 31,
(in millions) 2026 2025 Change % Change
Cost of revenue
$ 62.8 $ 61.7 $ 1.1 2 %
Cost of revenue as a % of total revenue
31.3 % 31.5 %
Cost of revenue for the three months ended March 31, 2026 approximated the expenses incurred in the same period in the prior year, which is consistent with total volume remaining at a consistent level each period on a consolidated basis.
Research and Development Expense
Three months ended March 31,
(in millions) 2026 2025 Change
% Change
Research and development expense $ 27.1 $ 27.5 $ (0.4) (1) %
Research and development expense as a % of total revenue 13.5 % 14.0 %
Research and development expense for the three months ended March 31, 2026 was relatively consistent with research and development expenses incurred in the same period of the prior year.
Sales and Marketing Expense
Three months ended March 31,
(in millions) 2026 2025 Change % Change
Sales and marketing expense $ 73.6 69.2 $ 4.4 6 %
Sales and marketing expense as a % of total revenue 36.7 % 35.3 %
Sales and marketing expense increased by $4.4 million for the three months ended March 31, 2026 compared to the prior year period primarily due to a $2.4 million increase in marketing costs, along with a $1.2 million increase in sales related events.
General and Administrative Expense
Three months ended March 31,
(in millions) 2026 2025 Change % Change
General and administrative expense $ 62.2 66.5 $ (4.3) (6) %
General and administrative expense as a % of total revenue 31.0 % 33.9 %
General and administrative expense decreased by $4.3 million for the three months ended March 31, 2026 compared to the prior year period primarily due to a $2.3 million decrease in amortization for previously impaired intangible assets, and a decrease of $2.0 million in rent expense.
Goodwill and Long-lived Asset Impairment Charges
Three months ended March 31,
(in millions) 2026 2025
Change
% Change
Goodwill and long-lived asset impairment charges
$ 5.4 $ - $ 5.4 - %
Goodwill and long-lived asset impairment charges as a % of total revenue
2.7 % - %
Goodwill and long-lived asset impairment charges in the three months ended March 31, 2026 included impairment charges of $5.4 million related to our Women's Health reporting unit and certain intangible assets. There were no goodwill and long-lived asset impairment charges in the three months ended March 31, 2025.
Other Expense, Net
Three months ended March 31,
(in millions) 2026 2025 Change % Change
Other expense, net
$ (3.4) $ (0.4) $ (3.0) 750%
Other expense, net for the three months ended March 31, 2026 increased $3.0 million as compared to the same period in the prior year primarily due to an increase in interest expense for the current period related to our $125 million term loan secured in July 2025.
Income Tax Benefit
Three months ended March 31,
(in millions) 2026 2025 Change % Change
Income tax benefit
$ - $ 29.3 $ (29.3) (100)%
Effective tax rate - % 99.7 %
Our tax rate is the product of a blended U.S. statutory federal income tax rate of 21.0% and a blended state income tax rate of approximately 3.4%. Certain significant or unusual items are separately recognized during the period in which they occur and can be a source of variability in the effective tax rates from period to period.
Income tax expense for the three months ended March 31, 2026 was insignificant, resulting in our effective tax rate of approximately 0.0%. Income tax benefit for the three months ended March 31, 2025 was $29.3 million and our effective tax rate was 99.7%. For the three months ended March 31, 2026, our recognized effective tax rate differs from the U.S. federal statutory rate primarily due to the recognition of valuation allowances. For the three months ended March 31, 2025, our recognized effective tax rate differs from the U.S. federal statutory rate primarily due to the release of unrecognized tax benefits and the recognition of valuation allowances. The unrecognized tax benefits released were primarily related to tax refund claims following the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act. Following the success of these claims, we remeasured or released the unrecognized benefits resulting in a discrete tax benefit of $29.6 million during the three months ended March 31, 2025. Due to our cumulative loss and the exhaustion of future taxable income from the reversal of taxable temporary differences, our estimated annual effective tax rate for the current year includes a valuation allowance against the current year increase in deferred tax assets.
Liquidity and Capital Resources
Our primary sources of liquidity are our cash and cash equivalents, our expected cash flows from operations, and, in certain circumstances, amounts available for borrowing under our credit facility discussed below. Our capital deployment strategy focuses on use of resources in the key areas of research and development, technology, and investments in partnerships and collaborations. We believe that investing organically through research and development and new product development to support our business strategy provides the best return on invested capital.
On July 31, 2025 (the "Closing Date"), we entered into a Credit Agreement (the "Credit Agreement") with the lenders from time to time party thereto, and OrbiMed Royalty & Credit Opportunities IV, LP., as administrative agent (the "Administrative Agent") and as initial lender. The Credit Agreement consists of a $200.0 million term loan credit facility with an initial term loan of $125.0 million (the "Initial Loan"), which amount was funded on the Closing Date, and delayed draw term loans (the "Delayed Draw Loans" and together with the Initial Loan, the "Loans"), at our election on or prior to June 30, 2027, in a maximum principal amount of $75.0 million (the "Credit Facility"). We incurred debt discounts and issuance costs totaling $9.4 million. These costs are being amortized using the effective interest method. The proceeds of the Credit Facility were used to repay and terminate the Company's previous borrowing, with the remainder designated for working capital needs and general corporate purposes. On January 5, 2026, we and the Administrative Agent entered into the First Amendment to Credit Agreement for certain cash management matters.
The Credit Facility matures on July 31, 2030 (the "Maturity Date"). Loans outstanding under the Credit Facility bear interest at a rate per annum equal to (x) the greater of the one-month Secured Overnight Financing Rate ("SOFR") Rate and 2.5% plus (y) an applicable margin of 6.5%. All repayments are subject to the accrued exit fee. Commencing on September 30, 2029, and on the last business day of each fiscal quarter thereafter, we are required to make a scheduled principal payment equal to 2.5% of the unpaid principal amount of the Loans outstanding on the fourth anniversary of the Closing Date, together with any applicable exit fee. We may elect to prepay all or a portion of the amounts owed prior to the Maturity Date subject to a repayment premium, in addition to the exit fee. Any undrawn portion of the Delayed Draw Loans is subject to a fee of 0.5% per annum, payable each interest period based on the amount that remains undrawn through June 30, 2027. The interest rate for borrowings under the Credit Agreement as of March 31, 2026 was 10.2%.
The Credit Facility is also subject to customary mandatory prepayments with the proceeds of indebtedness and certain asset sales and casualty events. In addition to the exit fee and repayment premium referenced above, voluntary and mandatory prepayments and all other payments of the Credit Facility must also be accompanied by payment of accrued interest on the principal amount repaid or prepaid. The Credit Facility is also subject to other customary fee arrangements.
Our obligations are guaranteed by certain of our material subsidiaries (the "Credit Facility Guarantors") pursuant to a Guarantee. Our obligations and the Credit Facility Guarantors under the Credit Agreement and Guarantee are secured by substantially all of our assets and the Credit Facility Guarantors under a Pledge and Security Agreement entered into with the Administrative Agent.
The Credit Facility requires us and our subsidiaries, on a consolidated basis, to comply with a minimum trailing twelve-month revenue test as of the end of each month, commencing with the month ending December 31, 2025 at $615.0 million and increasing quarterly to $974.0 million beginning on December 31, 2029 and thereafter. In addition, the Credit Facility contains customary representations and warranties and affirmative and negative covenants, including covenants that limit or restrict us and our subsidiaries' ability to incur liens, incur indebtedness, dispose of assets, make investments, make certain restricted payments, merge or consolidate and enter into certain speculative hedging arrangements. The Credit Facility includes a number of customary events of default, including, among other things, nonpayment defaults, covenant defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency defaults, material judgment defaults and the occurrence of a change of control. If any event of default occurs (subject, in certain instances, to specified grace periods), the principal, premium, if any, interest and any other monetary obligations on all the then outstanding amounts under the Credit Facility may become due and payable immediately. As of March 31, 2026, we were in compliance with all covenants under the Credit Agreement.
We believe that our existing capital resources will be sufficient to meet our projected operating requirements for at least the next 12 months. Our available capital resources, however, may be consumed more rapidly than currently expected, or may be insufficient for our business needs for many reasons, including as a result of our operational cash needs or capital expenditures. In addition, we are subject to covenants under our Credit Facility which could limit our ability to incur additional indebtedness or impact our ability to pursue other financing. If we do not generate sufficient cash from operations, if our capital resources are consumed more rapidly than expected, or if we no longer have access to additional funds under our Credit Facility and we are unable to secure additional funds on acceptable terms, or at all, we may be forced to delay, scale back or eliminate some of our sales and marketing efforts, research and development activities, or other operations or delay development of our tests in an effort to provide sufficient funds to continue our operations. If any of these events occur, our ability to achieve our development and commercialization goals could be adversely affected.
From time to time, we enter into purchase commitments or other agreements that may materially impact our liquidity position in future periods.
Third-party payors, including state and federal health-care programs such as Medicare, managed care organizations, and other private health insurers, are increasingly attempting to contain health-care costs by limiting or denying coverage for certain tests and reducing reimbursement rates for both new and existing tests. We have experienced and may continue to experience coverage limitations or denials for many of our products.
The following table represents the balances of cash and cash equivalents as of the dates set forth in the table below:
(in millions) March 31,
2026 		December 31,
2025 		Change
Cash and cash equivalents $ 124.4 $ 149.6 $ (25.2)
The decrease in cash and cash equivalents as of March 31, 2026 as compared to December 31, 2025 was primarily driven by $15.7 million in cash used for operating activities and $6.5 million in cash used for capital expenditures, as well as $3.0 million used in financing activities, primarily related to tax withholding payments on stock-based compensation.
The following table represents the Condensed Consolidated Statement of Cash Flows:
Three Months Ended March 31,
(in millions) 2026 2025 Change
Cash flows used in operating activities $ (15.7) $ (16.3) $ 0.6
Cash flows used in investing activities (6.5) (8.3) 1.8
Cash flows (used in) provided by financing activities
(3.0) 13.6 (16.6)
Effect of foreign exchange rates on cash, cash equivalents, and restricted cash (0.1) 0.1 (0.2)
Net decrease in cash, cash equivalents, and restricted cash
(25.3) (10.9) (14.4)
Cash, cash equivalents, and restricted cash at the beginning of the period 151.3 111.9 39.4
Cash, cash equivalents, and restricted cash at the end of the period $ 126.0 $ 101.0 $ 25.0
Cash Flows from Operating Activities
We used $0.6 million less cash for operating activities for the three months ended March 31, 2026 compared to the same period in the prior year. Net loss was lower in the previous period, the effect of which was largely offset by the change in unrecognized tax benefits in the period. The remaining fluctuation was largely consistent with the prior period.
Cash Flows from Investing Activities
We used $1.8 million less cash for investing activities for the three months ended March 31, 2026 compared to the same period in the prior year. The decrease in cash used in investing activities was primarily due to a decrease in the capitalization of intangible asset expenditures for software developed for internal use.
Cash Flows from Financing Activities
Cash flows from financing activities decreased $16.6 million for the three months ended March 31, 2026 compared to the same period in the prior year, primarily due to incremental borrowings of $19.5 million under the revolving credit facility in the prior year, partially offset by $2.9 million lower tax withholding payments on stock-based compensation plans.
Effects of Inflation
Inflation has not had a material impact on our results of operations or financial position for the periods presented. While we have experienced general cost increases consistent with broader inflationary trends, these increases have not significantly affected our operating results. If inflation were to increase, it may negatively impact our profitability and may adversely affect our business, financial condition and results of operations. In addition, higher inflationary pressures may contribute to higher interest rates, which could increase our borrowing costs or affect the terms and availability of future financing. Furthermore, to the extent tariffs imposed by the United States affect our costs, we may not be able to pass on any portion of the cost increase to our customers.
Critical Accounting Estimates
Critical accounting estimates are those estimates made in accordance with generally accepted accounting principles that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on a company's financial condition or results of operations. For a further discussion of our critical accounting estimates, see our Annual Report on Form 10-K filed with the SEC on February 24, 2026. No significant changes to our critical accounting estimates took place during the three months ended March 31, 2026, except as described below.
Goodwill is tested for impairment at least annually and more frequently if events or changes in circumstances indicate that the asset may be impaired. During the first quarter of 2026, we concluded that an impairment triggering event had occurred due to a sustained decline in our share price and market capitalization. As a result, we performed interim quantitative impairment testing on our goodwill and intangible assets for all reporting units and the Company recorded an immaterial goodwill impairment for one reporting unit. Additionally, we corroborated the reasonableness of the estimated reporting unit fair values by reconciling them to our enterprise value and market capitalization as of March 2026. The impairment did not have a material impact on the Company's financial condition or results of operations. Based on management's most recent impairment assessment, the fair values of the Company's remaining reporting units substantially exceed their respective carrying values. Certain future events and circumstances, including a higher cost of capital or a decline in actual and expected revenues or profitability, among others, could result in changes to these assumptions and judgments. A revision of these estimates and assumptions could cause the fair values of the reporting units to fall below their respective carrying values, resulting in impairment charges, which could have a material adverse effect on our results of operations. We will continue to monitor our reporting units for any triggering events or other signs of impairment which could result in impairment charges in the future.
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