Release Date: July 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Myriad Genetics Inc MYGN reported solid test volume growth in its cancer care continuum and mental health portfolios, with 6% and 4% year-over-year increases, respectively.
- Hereditary cancer testing volume grew 8% year-over-year, with MyRisk volume up 10%, driven by strong demand in the unaffected population, which saw its highest quarterly volume in three years.
- The company achieved key pipeline milestones, including the launch of Prolaris Plus AI, expansion of Precise MRD to colorectal and renal cancers, and submission of Precise MRD for breast cancer to MolDx for coverage determination.
- Myriad Genetics Inc (MYGN) successfully hired, trained, and placed over 100 new account executives to support cancer care continuum offerings, expected to drive volume growth in 2027 and beyond.
- The company launched FirstGene, a differentiated prenatal test offering simultaneous screening for carrier status, fetal single gene, chromosome, and RHD status, with positive early feedback and a competitive turnaround time.
- Mental health testing (GeneSight) saw record-high ordering provider base exceeding 40,000 clinicians, with improving reimbursement trends aided by biomarker legislation.
- The company maintains a strong liquidity position with approximately $190 million in available capital, providing financial flexibility to execute strategic priorities.
- Myriad Genetics Inc (MYGN) is advancing initiatives like the Ascend organizational efficiency program and a rigorous portfolio review, which are expected to materially improve profitability in 2027 and beyond.
Negative Points
- Myriad Genetics Inc (MYGN) reported a significant 11% year-over-year decline in total revenue for Q2 2026, with a 9% drop in average revenue per test.
- The company faced elevated payer friction, including higher denial rates and prior authorization requirements, leading to an $11 million headwind from lower prior-period collections and a $4 million write-off of aged receivables.
- Prenatal health revenue declined 16% year-over-year, with volume down 9%, reflecting competitive dynamics and slower-than-expected progress in this segment.
- The company lowered its full-year 2026 revenue guidance to $770-$790 million, a $90 million reduction from prior outlook, and suspended its adjusted EBITDA guidance due to uncertainty.
- Average revenue per test for hereditary cancer testing declined 15% year-over-year in the cancer care continuum, with continued reimbursement pressure expected through the second half of 2026.
- The company reported an adjusted EPS loss of $0.25 for the quarter, reflecting softer revenue and stable operating expenses amid ongoing investments.
- Myriad Genetics Inc (MYGN) acknowledged that it should have engaged earlier with payers to mitigate reimbursement issues, indicating a reactive approach to evolving conditions.
- The revised guidance assumes no improvement in average revenue per test from Q2 levels and no contribution from commercial team expansion or new product launches, reflecting a conservative outlook.
Q & A Highlights
Q: What are the key factors behind the lowered 2026 revenue guidance, and what are the assumptions for the second half of the year?
A: Ben Wheeler (CFO) explained that the revised guidance to $770-$790 million reflects three primary factors: weaker prenatal volume trends, lower-than-expected hereditary cancer reimbursement levels, and the final resolution of the HCT aged receivables. The guidance assumes second-half revenue will be approximately in line with the first half, with Q3 flat to slightly higher than Q2 and improvement in Q4. It also assumes no contribution from commercial team expansion or recent product launches.
Q: Can you provide more detail on the hereditary cancer testing reimbursement pressure and the specific action plan to mitigate it?
A: Sam Raha (CEO) detailed that the pressure stems from payer-initiated revenue cycle friction, including changing prior authorization requirements, more medical record requests, and higher denial rates—not changes in medical policy. The company is taking immediate actions: optimizing the end-to-end revenue cycle process, enhancing front-end coverage verification, integrating third-party medical record repositories, deploying AI-enabled workflows, and engaging in a policy-based approach with payers. The company believes many payer practices create unnecessary administrative burden and is pursuing industry organizations and policymakers to address these issues.
Q: What is the "Ascend" initiative, and what impact is it expected to have on the company's profitability?
A: Sam Raha (CEO) announced the activation of "Ascend," an initiative supported by a leading professional services firm to increase organizational efficiency, productivity, and scalability. The initiative is expected to produce meaningful, measurable benefits to profitability, including adjusted EBITDA, in 2027 and beyond. Due to uncertainty regarding the timing and impact of this initiative, the company has suspended its 2026 adjusted EBITDA guidance.
Q: How is the company's portfolio review progressing, and what is the expected outcome?
A: Ben Wheeler (CFO) stated that the company is conducting a rigorous portfolio review to ensure capital is deployed to the highest value opportunities and to maximize long-term shareholder value. This review, combined with the Ascend initiative and reimbursement performance improvements, is intended to simplify the business, improve execution, and enhance scalability. The company is confident these initiatives can have a material positive impact in 2027 and beyond, though no timeline has been provided.
Q: What are the latest developments with the new product launches, particularly Prolaris Plus AI and Precise MRD?
A: Brian Donnelly (CCO) reported that Prolaris Plus AI, launched at the end of Q2, has received positive early customer feedback, particularly for supporting decisions in the active surveillance segment. For Precise MRD, the company has moved into expanded availability for breast, colorectal, and renal cancers. Early access sites are providing actionable feedback, with growing clinician adoption and repeat orders. The MRD assay has performed well operationally, and the company remains on track for a full commercial launch in 2027, with a MolDx submission completed for the breast indication.
Q: Can you elaborate on the performance of the prenatal health business and the launch of FirstGene?
A: Brian Donnelly (CCO) noted that prenatal health revenue declined 16% year-over-year, reflecting a 9% volume decline and an 8% decline in average revenue per test. The company has not made as much progress as expected due to Salesforce expansion timing and competitive dynamics. However, the new dedicated prenatal sales team is now fully staffed. FirstGene, which offers a simultaneous screen of carrier status, fetal single gene, fetal chromosome, and fetal RHD status, launched commercially last week. Early feedback has been positive, particularly regarding the combination of single gene and RHD components and the industry-leading 14-day turnaround time.
Q: What are the trends in the mental health (GeneSight) business, and how is the company addressing reimbursement?
A: Brian Donnelly (CCO) reported that GeneSight revenue declined 3% year-over-year to $36.8 million, impacted by a $4 million AR write-off, which obscured improving reimbursement trends. Volume grew 4%, and the ordering provider base reached a record high of over 40,000 clinicians. The company is implementing new procedures, such as collecting credit card information at the time of billing, which may offset slight volume growth with improved revenue collection. Sam Raha (CEO) added that the company remains optimistic about the long-term opportunity, supported by biomarker legislation and high NPS scores.
Q: How is the company's commercial team expansion progressing, and what impact is expected?
A: Brian Donnelly (CCO) confirmed that the company has hired, trained, and placed over 100 new account executives in the field, primarily supporting cancer care continuum products. These new sales team members are expected to begin driving increased volume meaningfully in 2027 and beyond. The company is also seeing healthy cross-selling opportunities, with oncology sales teams promoting both MyRisk and Precise MRD to community-based oncologists and urologists.
Q: What is the company's outlook on average revenue per test (ARPT) trends for the remainder of 2026?
A: Ben Wheeler (CFO) stated that the company expects reimbursement friction to remain a headwind through the balance of 2026, and this has been incorporated into the revised revenue guidance. However, the company does not expect the magnitude of the Q2 impact to repeat. The updated guidance assumes no improvement in average revenue per test from Q2 levels. Sam Raha (CEO) added that even under scenarios with additional ARPT pressure, HCT remains a highly profitable business with attractive margins and strong cash generation.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
