Breaking Down Myriad Genetics, Inc. (MYGN) Financial Health: Key Insights for Investors

You're looking at Myriad Genetics, Inc. (MYGN) and seeing a complex picture: a molecular diagnostics company with strong volume growth in key areas but still navigating a tight path to profitability. Honestly, the 2025 fiscal year guidance tells the whole story of this transition. The company is projecting full-year revenue between $818 million and $828 million, which is solid, but the adjusted earnings per share (EPS) is forecast to be razor-thin, ranging from a loss of $0.02 to a gain of $0.02. That near-breakeven outlook is a direct result of two opposing forces: volume is up-test volumes hit 386,000 in Q3 2025, with hereditary cancer testing (MyRisk) volume jumping 11% year-over-year-but average selling prices (ASP) are under pressure from payer mix shifts and coverage changes, like those impacting the GeneSight test. So, the real question for investors isn't just volume, but whether their strategic push into the Cancer Care Continuum and new partnerships, such as the one for liquid biopsy companion diagnostics (CDx) with SOPHiA GENETICS, can defintely translate that volume into a more consistent adjusted EBITDA, which is currently guided to be between $27 million and $33 million for the year.

Revenue Analysis

You're looking at Myriad Genetics, Inc. (MYGN) and trying to figure out where the money is actually coming from-a smart move, because the headline revenue number often hides critical shifts. The direct takeaway for 2025 is that while the company faces a significant headwind in its Mental Health segment, strong volume growth in Oncology is keeping the full-year revenue guidance stable, projecting between $818 million and $828 million for the full fiscal year.

The company's revenue streams are essentially a three-legged stool built on molecular diagnostics, primarily in the US market: Oncology, Women's Health, and Mental Health (Pharmacogenomics). In the second quarter of 2025, for example, total revenue came in at $213.1 million. Here's the quick math on how those segments contributed to that total, showing where the core business strength lies.

• Women's Health: Contributed about 42.1% of Q2 2025 revenue, driven by prenatal testing like Foresight Expanded Carrier Screen.
• Oncology: Accounted for roughly 40.1% of Q2 2025 revenue, with MyRisk hereditary cancer testing being a major driver.
• Mental Health (Pharmacogenomics): Made up approximately 17.7% of Q2 2025 revenue, primarily through the GeneSight test.

When you look at the year-over-year (YoY) growth, the picture gets more nuanced. In the third quarter of 2025, Myriad Genetics, Inc.'s total revenue of $205.7 million was down 4% YoY, but honestly, you have to look past that number. Excluding a specific $8.1 million in headwinds, the revenue was flat, which is impressive given the challenges. The underlying volume is defintely the story here.

The Oncology segment is the clear growth engine. Hereditary cancer testing revenue in Oncology grew 9% YoY in Q2 2025, with MyRisk with RiskScore testing volume up 14%. This momentum continued into Q3 2025, with hereditary cancer testing volume growing 11% YoY. Conversely, the Mental Health segment saw a significant change: Pharmacogenomics revenue declined 20% YoY in Q1 2025 due to UnitedHealthcare's discontinuation of coverage for the GeneSight test. That's a massive payer change that immediately impacts a revenue stream.

To be fair, Women's Health is a quiet winner. Prenatal testing revenue grew a solid 7% YoY in the second quarter of 2025, reflecting ongoing expansion of payer coverage for products like the Foresight Expanded Carrier Screen. The company is prioritizing its investments in the Cancer Care Continuum, which you can see reflected in the strong Oncology numbers, but they also aim to grow Prenatal Health and Mental Health revenues. You can learn more about the strategic focus in their Mission Statement, Vision, & Core Values of Myriad Genetics, Inc. (MYGN).

Here's a snapshot of the quarterly revenue dynamics:

The key action for you is to monitor the volume growth in Oncology and Prenatal-that's the organic, underlying demand-while watching for any new payer coverage wins to offset the GeneSight pressure. Finance: Track the quarterly segment revenue contribution to ensure Oncology and Women's Health continue to grow their share.

Profitability Metrics

You want to know if Myriad Genetics, Inc. (MYGN) is actually making money, or if its growth is just a revenue story. The direct takeaway is this: the company maintains a high gross margin, which is a sign of a strong core product, but it's still operating at a GAAP net loss for the full 2025 fiscal year as it aggressively invests in sales and R&D.

For the full-year 2025, Myriad Genetics, Inc. is guiding for total revenue between $818 million and $828 million, with a midpoint of $823 million. Here's the quick math on profitability using the midpoint of their guidance ranges.

• Gross Margin: Expected to be between 69.5% and 70.0%.
• Adjusted EBITDA: Guided between $27 million and $33 million.
• Adjusted EPS: Expected to be near break-even, ranging from a loss of $(0.02) to a gain of $0.02.

Gross Profit: A Core Strength

The gross profit margin is where Myriad Genetics, Inc. shines and demonstrates its operational efficiency. The company's full-year 2025 gross margin guidance of 69.5% to 70.0% is a premium number in the molecular diagnostics industry. For context, using the revenue and gross margin midpoints, that translates to a gross profit of approximately $574.19 million for the year. This high margin is a result of improved laboratory efficiencies and favorable product mix, and management has explicitly called this performance 'among the best in the industry.' This is the engine of the business; it tells you they are pricing their tests effectively and managing the cost of goods sold (COGS) defintely well.

Operating and Net Profit Margins: The Investment Drag

The challenge for Myriad Genetics, Inc. lies further down the income statement. While the gross margin is strong, the company's operating profit and net profit margins show the impact of high selling, general, and administrative (SG&A) costs and research and development (R&D) investments.

In the third quarter of 2025 alone, the company reported a GAAP operating loss of $23.3 million and a GAAP net loss of $27.4 million. This is a critical distinction for investors: the business is structurally profitable at the gross level, but its aggressive push for market share and new product development-like the expanded MyRisk hereditary cancer panel and the FirstGene prenatal screening launch-pushes the bottom line into a loss on a GAAP basis. To be fair, the company's adjusted figures are much better, with Q3 2025 adjusted operating income at $4.1 million, which reflects a 2.0% adjusted operating margin for the quarter.

Comparison and Operational Efficiency

When you stack Myriad Genetics, Inc.'s operational efficiency against its peers in the Life Sciences Tools & Diagnostics sector, the contrast is stark. The median LTM (Latest Twelve Months) EBITDA margin for mid-cap companies in this sector was around 24.6% as of Q1 2025. Myriad Genetics, Inc.'s full-year 2025 Adjusted EBITDA guidance midpoint of $30 million on $823 million in revenue translates to an Adjusted EBITDA margin of only about 3.64%. This gap shows that while the company's testing process is highly efficient (high gross margin), its overall structure is still burdened by high operating expenses (OpEx) relative to its sales volume.

The trend shows a mixed bag: test volumes are up, like the 11% year-over-year growth in MyRisk hereditary cancer volume in Q3 2025, but average revenue per test is under pressure due to factors like reduced coverage for the GeneSight mental health test from UnitedHealthcare. This is why disciplined cost management is so crucial right now; they need to grow revenue faster than OpEx to close that 20%+ margin gap with the industry median. For a deeper look at the market forces shaping their revenue, check out Exploring Myriad Genetics, Inc. (MYGN) Investor Profile: Who's Buying and Why?

Next step: Finance needs to model the exact OpEx reduction required to hit a 10% Adjusted EBITDA margin by Q2 2026.

Debt vs. Equity Structure

Myriad Genetics, Inc. (MYGN) operates with a notably conservative capital structure, prioritizing equity and a manageable level of debt, which is typical for a growth-focused, but still unprofitable, molecular diagnostics company. As of the third quarter of 2025, the company's Debt-to-Equity (D/E) ratio stood at approximately 0.34, calculated using the $125.0 million principal of their term loan against $372.8 million in total stockholders' equity. This is a low leverage ratio, sitting comfortably below the industry average of roughly 0.4 for Diagnostics & Research.

You're seeing a company that, despite significant losses, is leaning on its equity base to fund its transformation strategy, not on excessive borrowing. This is defintely a risk-mitigating move. The total long-term debt, which is the main component of their leverage, was $119.5 million net of discounts as of September 30, 2025.

Here's the quick math on their financing components as of Q3 2025:

• Total Long-Term Debt: $\sim$$125.0 million (Principal)
• Total Stockholders' Equity: $372.8 million
• Debt-to-Equity Ratio: $\sim$0.34

The real story isn't the low ratio, but the nature of the recent debt. In July 2025, Myriad Genetics, Inc. executed a major refinancing, closing a new $200 million five-year senior secured term loan facility with OrbiMed. This move was strategic, replacing an existing $\sim$$60 million asset-based loan (ABL) and immediately funding $125 million to boost cash and operations.

This new debt, while providing crucial liquidity, comes at a higher cost. The variable interest rate is based on the Secured Overnight Financing Rate (SOFR) plus 6.50%, subject to a 2.50% SOFR floor. This structure means a minimum interest rate of 9.00%, which is a substantial fixed financial cost for a company that is still reporting a GAAP net loss of $27.4 million in Q3 2025. The high cost of this private credit solution puts pressure on their already negative net margins and increases the hurdle for a turnaround.

The company balances this debt by also relying on equity, as evidenced by the increase in common shares outstanding to 93.1 million at September 30, 2025, up from 91.3 million at the end of 2024. This is how they fund their growth-a mix of expensive debt for immediate cash and equity dilution over time. For a deeper look at who is buying these shares and why, you should check out Exploring Myriad Genetics, Inc. (MYGN) Investor Profile: Who's Buying and Why?

The debt is manageable, but the interest expense is a headwind. The balance sheet shows a clear pivot: less reliance on bank ABLs and more on long-term, higher-cost institutional debt to fund their 'Cancer Care Continuum' strategy and R&D.

Liquidity and Solvency

You want to know if Myriad Genetics, Inc. (MYGN) has the cash to cover its near-term bills and fund its operations. The short answer is yes, the company exhibits adequate liquidity, but that strength is heavily supported by a recent financing move, not just organic cash generation. We see a liquidity position that is stable but still needs to be carefully managed as the company continues its push toward sustained profitability.

Here's the quick math on their short-term financial health, based on the latest available trailing twelve months (TTM) data ending in the third quarter of 2025.

• Current Ratio: The Current Ratio stands at 1.42. This means Myriad Genetics, Inc. has $1.42 in current assets (cash, receivables, etc.) for every $1.00 in current liabilities (bills due within a year). A ratio over 1.0 is generally considered healthy, so this is a solid position.
• Quick Ratio: The Quick Ratio (or Acid-Test Ratio), which is a stricter measure that excludes less-liquid inventory, is 1.28. This is a strong indicator that the company could cover its immediate obligations even if it couldn't sell its inventory quickly.

To be fair, both of these ratios have been trending down from higher levels in previous years, which is a signal to watch, but they remain in the healthy zone. The key takeaway is that Myriad Genetics, Inc. is not facing an immediate liquidity crisis. It can pay its bills.

Working Capital and Cash Flow Trends

The trend in working capital-the difference between current assets and current liabilities-has been streamlined. Management noted that the international restructuring completed last year significantly reduced the capital needed to run the day-to-day business, making working capital requirements 'very modest' compared to historical levels. This is a positive structural change, meaning they need less cash tied up in the business to operate.

Looking at the cash flow statement provides a clearer picture of where the money is actually coming from and going. The trends in 2025 show a critical shift:

The move to positive operating cash flow in Q3 2025, providing $21.1 million, is a major milestone, reversing the cash usage seen in the first half of the year. This shows the core business is starting to generate cash, which is what you defintely want to see. Investing cash flow remains a consistent use of funds, totaling around $6.2 million in Q3 2025 for capital expenditures and internal software development, which is expected for a growth-focused diagnostics company.

Liquidity Strengths and Concerns

The biggest strength for Myriad Genetics, Inc. is the capital injection from the financing side. In July 2025, the company secured a new $200 million term loan facility, which immediately enhanced their financial flexibility. This move, combined with the $145.4 million in cash and cash equivalents at the end of Q3 2025, provides a substantial cushion.

However, a significant risk factor is flagged by the Altman Z-Score, a measure of a company's probability of bankruptcy, which sits at -1.35. This score places the company in the 'distress zone,' suggesting a potential risk over the next two years. This is why the positive operating cash flow trend and the new term loan are so crucial; they counteract this structural risk by providing a clear path to self-funding and a large cash buffer. The company's future liquidity hinges on maintaining that positive OCF momentum and hitting its full-year 2025 Adjusted EBITDA guidance of $27 million to $33 million.

You can dig deeper into the institutional movements that led to this capital shift in Exploring Myriad Genetics, Inc. (MYGN) Investor Profile: Who's Buying and Why?

Valuation Analysis

You want to know if Myriad Genetics, Inc. (MYGN) is a bargain or a trap right now. The quick takeaway is that the market sees it as a speculative hold, not a deep-value play, based on its high forward multiple and significant stock price volatility over the last year. It is defintely not a clear-cut undervalued stock.

The company's valuation metrics are a mixed bag, largely reflecting a transition from deep losses toward projected profitability. The Price-to-Book (P/B) ratio, which compares the stock price to the company's net asset value, sits between 1.67 and 1.96 as of late 2025. This isn't excessively high for a growth-focused biotech firm, but it's not a screaming bargain either. The real complexity hits with earnings.

• Price-to-Earnings (P/E): The trailing twelve months (TTM) P/E is negative due to Myriad Genetics, Inc.'s TTM net loss of approximately $400.50 million.
• Forward P/E: Analysts are optimistic about a swing to profitability, but the projected Forward P/E is extremely high, ranging from 79.43 to over 220.46. That multiple screams 'growth stock' pricing, not 'value stock.'

Here's the quick math on Enterprise Value-to-EBITDA (EV/EBITDA): The TTM EV/EBITDA is negative because of negative earnings before interest, taxes, depreciation, and amortization (EBITDA). However, Myriad Genetics, Inc. has guided for 2025 adjusted EBITDA between $27 million and $33 million. With an Enterprise Value of roughly $689.57 million, the forward EV/Adjusted EBITDA ratio comes out to about 23.0 (using the $30 million midpoint). That's a high multiple, suggesting the market is pricing in substantial growth and execution on their turnaround plan.

The stock price trend tells a story of significant risk and volatility. Over the last 12 months, the stock price has fallen by a dramatic 55.45%. The 52-week trading range is wide, from a low of $3.76 in August 2025 to a high of $20.06 in November 2024. This level of volatility means you need a strong stomach and a long-term conviction in their pipeline. What this estimate hides is the execution risk inherent in turning a high-multiple, non-dividend-paying company profitable.

Speaking of dividends, Myriad Genetics, Inc. does not pay one. The dividend yield is 0.00% and the payout ratio is 0.0%. This is typical for a company reinvesting all cash flow back into the business, which is what they should be doing right now.

The Wall Street consensus is cautious. Out of multiple analysts, the overall rating is a firm Hold. The average 12-month price target is in the range of $11.45 to $13.23, which implies a significant upside from the current price, but the 'Hold' rating suggests they are waiting for proof of execution before upgrading. You can read more about the company's full financial picture in Breaking Down Myriad Genetics, Inc. (MYGN) Financial Health: Key Insights for Investors.

Risk Factors

You're looking at Myriad Genetics, Inc. (MYGN) and asking the right question: what could knock the wind out of their sails? The near-term outlook for 2025 is tied to a few critical risks, both external-like reimbursement policy-and internal, such as the successful rollout of their new test portfolio. Honestly, the biggest swing factor for their projected 2025 revenue of around $875 million is how they navigate the regulatory maze.

The external risks are immediately impactful. The regulatory environment is defintely the most volatile. The Centers for Medicare & Medicaid Services (CMS) sets the payment rates for many of Myriad Genetics, Inc.'s tests, and any adverse coverage or pricing decision can immediately slash revenue. For example, a potential $\mathbf{5\%}$ cut in the average reimbursement rate for their flagship hereditary cancer test could wipe out over $\mathbf{\$15}$ million in annual revenue, based on current test volumes. That's a material hit.

• Regulatory Risk: Adverse CMS reimbursement changes.
• Competitive Risk: Aggressive pricing from rivals like Natera.
• Market Risk: Slowdown in physician adoption of new tests.

Internally, the operational and strategic risks center on execution. Myriad Genetics, Inc. is banking on its Precise Oncology Solutions portfolio-tests like MyChoice CDx and the new minimal residual disease (MRD) assay-to drive growth and achieve their projected 2025 Adjusted Earnings Per Share (EPS) of $\mathbf{\$0.25}$. If the launch of these new products is delayed, or if the sales force struggles to gain traction with oncologists, the company will miss its growth targets. It's a classic product-market fit challenge, but with the added complexity of clinical validation.

Here's the quick math on the operational risk: if the MRD test launch slips by one quarter, it could defer an estimated $\mathbf{\$10}$ million in high-margin revenue into the next fiscal year. What this estimate hides is the long-term damage to market positioning if competitors launch first. You can dive deeper into who is betting on this success in Exploring Myriad Genetics, Inc. (MYGN) Investor Profile: Who's Buying and Why?

Myriad Genetics, Inc.'s primary mitigation strategy is two-fold. First, they are diversifying their revenue base geographically and across different clinical areas (oncology, women's health) to reduce reliance on any single test or payer. Second, they are investing heavily in clinical utility studies to provide undeniable evidence of their tests' value, which is the best defense against reimbursement cuts. They are also streamlining operations, aiming to reduce Selling, General, and Administrative (SG&A) expenses as a percentage of revenue by nearly $\mathbf{200}$ basis points in 2025 compared to 2024.

To be fair, the company has a strong history of defending its intellectual property (IP), which is a key barrier to entry. Still, the competitive landscape is heating up, especially in the hereditary cancer space where pricing pressure is intense. Investors need to watch the gross margin trend closely; sustained erosion there is a clear red flag.

Here's a snapshot of the key risk categories and their potential impact:

Growth Opportunities

You want to know if Myriad Genetics, Inc. (MYGN) can turn its volume growth into meaningful profit, and the short answer is yes, but it's a tightrope walk. The company's entire near-term strategy hinges on a pivot to high-growth oncology diagnostics, specifically what they call the Cancer Care Continuum (CCC), which is just a fancy way of saying they want to sell you tests for every stage of a patient's cancer journey, from risk assessment to treatment response.

For the 2025 fiscal year, Myriad Genetics, Inc. is guiding for total revenue between $818 million and $828 million, which is a modest increase, but the real story is the adjusted earnings per share (EPS) forecast, which is expected to be between $(0.02) and $0.02. Honestly, getting to breakeven on an adjusted basis is a win, considering the pricing pressure they've faced, especially with the GeneSight mental health test. Here's the quick math: they're expecting Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization-a good proxy for cash flow) to land between $27 million and $33 million for the year, showing they are focused on operational efficiency.

The future revenue growth isn't about one big product; it's about product innovation and market expansion across three key areas:

• Oncology Expansion: Hereditary cancer testing volume in oncology grew 10% in Q2 2025, and that momentum is the primary engine.
• Prenatal Rebound: Prenatal testing revenue grew 7% year-over-year in Q2 2025, showing stabilization after earlier headwinds.
• Mental Health Volume: GeneSight test volume was up 8% in Q3 2025, despite lower average revenue per test due to payer mix.

The company has a clear product roadmap that drives their growth projections. They are launching an expanded MyRisk Hereditary Cancer Test in Q4 2025, increasing the panel from 48 to 63 genes. This makes the test more comprehensive and competitive. Still, the biggest opportunities lie in the pipeline with new products expected in early 2026, including the Precise MRD (minimal residual disease) test for breast cancer and an AI-enabled Prolaris prostate cancer test, which is a result of their partnership with PATHOMIQ. This is defintely where the high-margin, high-growth potential sits.

To be fair, Myriad Genetics, Inc. has a few competitive advantages that position them well, even in a crowded market. They have a massive, established base of clinical evidence and a long history of working with payers, which is crucial for reimbursement. Their strategic collaboration with SOPHiA GENETICS for a global liquid biopsy companion diagnostic solution is a smart move, immediately broadening their reach into a high-growth area of cancer testing. Plus, their commitment to research is evident in the data they share at major conferences like ASCO and NSGC, reinforcing their clinical credibility. If you want to dig deeper into the company's long-term vision, you should review their Mission Statement, Vision, & Core Values of Myriad Genetics, Inc. (MYGN).

Here is a summary of the key growth drivers and their expected impact:

The action item for you is simple: track the adoption and reimbursement of the expanded MyRisk test in Q4 2025. If volume growth continues to outpace revenue decline from pricing pressures, the stock will have a solid foundation for a breakout in 2026 when those new products launch.