Myriad Genetics Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 4 November 2026: press release. Guidance figures: 1 narrowed, 2 new, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue down 1% year-over-year: Revenue was $202.7 million, up 6% from the second quarter and down 1% year-over-year. Prior-year revenue was $205.7 million. Source
• Revenue per test rose, volume fell: Average revenue per test rose 7% sequentially and 1% year-over-year on Cancer Care Continuum product mix and payer and revenue cycle work; total test volume fell 1% sequentially and 2% year-over-year. Source
• Operating loss widened: Operating loss was $39.9 million, against $23.3 million a year earlier. Net loss was $43.9 million, or $0.46 per diluted share. Source
• Prenatal revenue down 12%: Prenatal Health revenue was $39.3 million, down 12% year-over-year, as volume decreased 11%. Source
• Gross margin down 200 basis points: Gross margin was 67.9%, down 200 basis points from the third quarter of 2025, reflecting lower overall test volumes and incremental investments in laboratory personnel. Source
• Closing expected early 2027: The sale is subject to customary closing conditions, including regulatory approvals, and is expected to close by early 2027. Source
• Operating cash flow was negative: Cash used in operations was $6.5 million in the third quarter; adjusted operating cash flow was $3.7 million. Source
• Adjusted free cash flow $1.6 million: Capital expenditures and capitalized software totaled $2.1 million, leaving adjusted free cash flow of $1.6 million for the quarter. Source

“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

Guidance

What changed from last quarter

• Guidance raised: Full-year 2026 revenue range moved from $770 - $790 million to $780 - $790 million; the mid-point was raised. Source
• New: Definitive agreement signed on October 19, 2026 to sell the Prenatal Health business to Labcorp for $210 million in cash. Source
• New guidance: Revenue guidance is now shown separately for the Cancer Care Continuum and Mental Health businesses and for Prenatal Health. Source
• Guidance kept: Full-year 2026 adjusted gross margin range of 66% - 67% is the same as in the second quarter release. Source

Results and growth drivers

• Revenue down 1% year-over-year: Revenue was $202.7 million, up 6% from the second quarter and down 1% year-over-year. Prior-year revenue was $205.7 million. Source
• Revenue per test rose, volume fell: Average revenue per test rose 7% sequentially and 1% year-over-year on Cancer Care Continuum product mix and payer and revenue cycle work; total test volume fell 1% sequentially and 2% year-over-year. Source
• Operating loss widened: Operating loss was $39.9 million, against $23.3 million a year earlier. Net loss was $43.9 million, or $0.46 per diluted share. Source
• Adjusted loss per share $0.11: Adjusted diluted loss per share was $0.11 for the third quarter of 2026; the prior-year figure is shown as a dash. Source
• Adjusted EBITDA was a loss: Adjusted EBITDA was a loss of $5.3 million, against income of $10.3 million in the third quarter of 2025. Source

Segments and product lines

• Cancer Care Continuum revenue up 1%: Cancer Care Continuum revenue was $123.9 million, up 1% year-over-year. Hereditary cancer revenue fell 1% on lower reimbursement, while hereditary volume rose 6%. Source
• Hereditary revenue per test rose 9%: Average revenue per hereditary cancer test improved 9% over the second quarter, which management ties to early progress with revenue cycle initiatives and other programs. Source
• Mental Health revenue up 2%: GeneSight revenue was $39.5 million, up 2% year-over-year on 3% volume growth. Average revenue per test fell 1%, which management attributes to general market dynamics. Source
• Prenatal revenue down 12%: Prenatal Health revenue was $39.3 million, down 12% year-over-year, as volume decreased 11%. Source
• Combined volume rose 3%: Cancer Care Continuum and Mental Health test volume rose 3% year-over-year to 239,000 tests. Source

“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

Products, clinical data and coverage

• MONSTAR-SCREEN-3 data presented: New MONSTAR-SCREEN-3 data presented at the ESMO Congress 2026 is described by management as supporting highly sensitive MRD testing after curative-intent surgery in resectable colorectal and pancreatic cancers. Source
• Precise MRD Medicare coverage pending: Engagement continues with the Molecular Diagnostics Program on a Local Coverage Determination for Medicare coverage of Precise MRD in breast cancer patients. Source
• SOPHiA GENETICS and AstraZeneca collaboration: In October 2026 the company announced a collaboration with SOPHiA GENETICS to advance a prostate cancer-specific genomic instability score with AstraZeneca, including potential companion diagnostic solutions. Source
• Germline testing publication: An October 2026 Memorial Sloan Kettering publication in Cancer Discovery is cited as supporting broad germline testing beyond age-based criteria. Source

Gross margin and operating expenses

• Gross margin down 200 basis points: Gross margin was 67.9%, down 200 basis points from the third quarter of 2025, reflecting lower overall test volumes and incremental investments in laboratory personnel. Source
• Adjusted gross margin 68.2%: Adjusted gross margin was 68.2% for the quarter, against 70.1% a year earlier; nine-month adjusted gross margin was 68.0%. Source
• Operating expenses rose to $177.6 million: Operating expenses were $177.6 million, against $167.1 million a year earlier. Source
• Adjusted expenses reflect multi-year investment: Adjusted operating expenses increased $9.9 million to $149.9 million, which management attributes to the company's multi-year investment in key strategic areas. Source
• Strategic realignment costs rose: Strategic realignment costs, including severance and consulting fees, were $12.2 million in operating expenses this quarter, against $8.3 million a year earlier. Source

“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

Prenatal Health sale and strategy

• Closing expected early 2027: The sale is subject to customary closing conditions, including regulatory approvals, and is expected to close by early 2027. Source
• Sale expected to be accretive: Management expects the sale to be accretive to revenue growth and profitability and to strengthen the balance sheet upon close. Source
• Focus on Cancer Care Continuum: Management says the sale is intended to benefit providers, patients, employees and shareholders, and to improve revenue growth rate, profitability and liquidity. Source
• Guidance timing tied to sale: The CEO says the modest mid-point increase in revenue guidance balances the third quarter result against the timing of the sale. Source

Cash, debt and liquidity

• Operating cash flow was negative: Cash used in operations was $6.5 million in the third quarter; adjusted operating cash flow was $3.7 million. Source
• Adjusted free cash flow $1.6 million: Capital expenditures and capitalized software totaled $2.1 million, leaving adjusted free cash flow of $1.6 million for the quarter. Source
• Cash balance $107.1 million: Cash and cash equivalents were $107.1 million at September 30, 2026. Source

Coming up, as management said on 4 November 2026

• Prenatal sale expected to close early 2027: Management expects the Prenatal Health sale to close by early 2027. Source
• Medicare coverage decision for Precise MRD: Engagement continues toward Medicare coverage of Precise MRD in breast cancer patients; no date for a decision is given. Source

Figures management reported

Risks management discussed

• Demand: Prenatal Health volume declines are described by management as ongoing trends in the business. Source
• Regulatory: Reimbursement level decreases reduced hereditary cancer testing revenue, partly offset by higher volume. Source
• Demand: Mental Health average revenue per test declined, which management attributes to general market dynamics. Source
• Regulatory: Completion of the Prenatal Health sale depends on customary closing conditions, including regulatory approvals. Source
• Operational: Gross margin declined on lower overall test volumes and higher investment in laboratory personnel. Source

Earlier plans management reported on

• Not stated: Management describes early progress on payer engagement and revenue cycle initiatives; no status against a target is given. Source
• Not stated: Management states the sale is expected to close by early 2027; no progress against that timing is reported. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.