Genetic testing company Myriad Genetics (NASDAQ:MYGN) reported revenue ahead of Wall Street’s expectations in Q4 CY2025, but sales were flat year on year at $209.8 million. The company expects the full year’s revenue to be around $870 million, close to analysts’ estimates. Its non-GAAP profit of $0.04 per share was significantly above analysts’ consensus estimates.
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Myriad Genetics (MYGN) Q4 CY2025 Highlights:
- Revenue: $209.8 million vs analyst estimates of $207.4 million (flat year on year, 1.2% beat)
- Adjusted EPS: $0.04 vs analyst estimates of -$0.02 (significant beat)
- Adjusted EBITDA: $14.3 million vs analyst estimates of $6.46 million (6.8% margin, significant beat)
- EBITDA guidance for the upcoming financial year 2026 is $43 million at the midpoint, above analyst estimates of $41.33 million
- Operating Margin: -2.7%, up from -18.5% in the same quarter last year
- Free Cash Flow Margin: 2.2%, similar to the same quarter last year
- Market Capitalization: $399.9 million
"We ended 2025 with positive momentum in a number of key areas, including within the Cancer Care Continuum where we drove another quarter of high single-digit volume growth in Hereditary cancer testing year-over-year and recognized improving volume growth for our Prolaris prostate cancer test. I'm also pleased to report improving volume growth in our GeneSight mental health test. We attribute this momentum to strengthened execution across the commercial team and the enterprise overall. Prenatal testing has been uneven through 2025 but we continue to make progress and expect growth to reaccelerate in the coming quarters,” said Sam Raha, President and CEO, of Myriad Genetics.
Company Overview
Founded in 1991 as one of the pioneers in translating genetic discoveries into clinical applications, Myriad Genetics (NASDAQ:MYGN) develops genetic tests that assess disease risk, guide treatment decisions, and provide insights across oncology, women's health, and mental health.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, Myriad Genetics’s 8.2% annualized revenue growth over the last five years was decent. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers.
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Myriad Genetics’s recent performance shows its demand has slowed as its annualized revenue growth of 4.6% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. 
This quarter, Myriad Genetics’s $209.8 million of revenue was flat year on year but beat Wall Street’s estimates by 1.2%.
Looking ahead, sell-side analysts expect revenue to grow 4.9% over the next 12 months, similar to its two-year rate. This projection is underwhelming and indicates its newer products and services will not lead to better top-line performance yet.
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Operating Margin
Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.
Myriad Genetics’s high expenses have contributed to an average operating margin of negative 29% over the last five years. Unprofitable healthcare companies require extra attention because they could get caught swimming naked when the tide goes out. It’s hard to trust that the business can endure a full cycle.
Looking at the trend in its profitability, Myriad Genetics’s operating margin decreased by 19.4 percentage points over the last five years. The company’s two-year trajectory also shows it failed to get its profitability back to the peak as its margin fell by 12.8 percentage points. This performance was poor no matter how you look at it - it shows its expenses were rising and it couldn’t pass those costs onto its customers.
This quarter, Myriad Genetics generated a negative 2.7% operating margin.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Myriad Genetics’s full-year EPS flipped from negative to positive over the last five years. This is encouraging and shows it’s at a critical moment in its life.
In Q4, Myriad Genetics reported adjusted EPS of $0.04, up from $0.03 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Myriad Genetics’s full-year EPS of $0.06 to shrink by 19.3%.
Key Takeaways from Myriad Genetics’s Q4 Results
It was good to see Myriad Genetics beat analysts’ EPS expectations this quarter. We were also glad its full-year EBITDA guidance exceeded Wall Street’s estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 22% to $5.35 immediately after reporting.
Sure, Myriad Genetics had a solid quarter, but if we look at the bigger picture, is this stock a buy? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).