Download PDF

1. Company Snapshot

1.a. Company Description

Veracyte, Inc.operates as a diagnostics company worldwide.The company offers Afirma Genomic Sequencing Classifier and Xpression Atlas, which are used to determine patients with indeterminate results are benign to avoid unnecessary surgery; Decipher Prostate Biopsy and Radical Prostatectomy for prostate cancer diagnosis; Prosigna Breast Cancer Assay for breast cancer diagnosis; Percepta Genomic Sequencing Classifier and Percepta Nasal Swab Test for lung cancer diagnosis; Envisia Genomic Classifier for diagnosing interstitial lung disease, including idiopathic pulmonary fibrosis; and Immunoscore Colon Cancer test for colon cancer diagnosis.


It is also developing Percepta Genomic Atlas to help inform lung cancer treatment decisions; Envisia Classifier, the nCounter analysis system; and LymphMark for lymphoma subtyping test.Veracyte, Inc.has technology licensing and collaboration arrangements with Johnson & Johnson; Acerta Pharma; and CareDx. The company was formerly known as Calderome, Inc.


and changed its name to Veracyte, Inc.in March 2008.Veracyte, Inc.


was incorporated in 2006 and is headquartered in South San Francisco, California.

Show Full description

1.b. Last Insights on VCYT

Veracyte's recent performance was driven by strong Q2 earnings and revenue growth, fueled by the company's Decipher and Afirma products. The company's testing growth exceeded expectations, with Decipher achieving its 13th consecutive quarter of over 25% year-over-year volume growth. Q2 revenue jumped 14%, and earnings of $0.44 per share beat estimates. A strong cash position and growth prospects in cancer diagnostics also contributed to the positive outlook. (Source: Veracyte's Q2 2025 Financial Results)

1.c. Company Highlights

2. Exceeding Expectations: A Deep Dive into the Earnings Report

The company's financial performance was impressive, with revenues and adjusted EBITDA exceeding expectations. The reported EPS was $0.51, beating estimates of $0.32. Testing revenue guidance was raised to $484 million to $487 million, representing a 16% increase, driven by continued strength in Decipher and Afirma volume. The adjusted EBITDA margin guidance for the year was also raised to exceed 25%, reflecting year-to-date profitability outperformance. According to Rebecca Chambers, "We're raising our total revenue guidance to $506 million to $510 million, reflecting our strong year-to-date performance."

Publication Date: Nov -25

📋 Highlights
  • 2025 Revenue Guidance Raised: to $506–$510M, with testing revenue of $484–$487M (+16% increase from prior guidance)
  • Decipher Volume Growth: exceeds 25% and expected to deliver double-digit growth in 2026, driven by NCCN guideline adoption
  • Adjusted EBITDA Margin Target: set to exceed 25% in 2025, with 2026 guidance aligned at 25% despite incremental investments
  • Prosigna Expansion: plans include a breast cancer LDT launch by mid-2026, supported by OPTIMA trial results and a dedicated sales team
  • Discordant Result Strategy: favors Decipher’s molecular data as the gold standard over emerging tech, leveraging its clinical validation and digital pathology complementarity

Revenue Growth Drivers

The company's revenue growth is driven by the success of its Decipher and Afirma tests. Decipher's molecular signature has been extensively validated in clinical trials and has demonstrated a strong correlation with patient outcomes. The company is also making progress on its MRD, Prosigna, and IVD products, which are expected to drive long-term growth. As Marc Stapley noted, "We're seeing significant momentum in our business, driven by the success of our Decipher and Afirma tests."

Valuation Metrics

To understand what's priced into the stock, we can look at various valuation metrics. The current P/E Ratio is 121.27, indicating that the stock may be overvalued. The P/S Ratio is 7.46, which is relatively high. However, the EV/EBITDA ratio is 72.51, suggesting that the company's enterprise value is high relative to its EBITDA. The ROE is 2.5%, and the ROIC is 1.86%, indicating that the company's profitability is relatively low.

Future Outlook

The company expects to deliver durable double-digit growth and continue to execute on its mission of improving cancer care for patients worldwide. The analysts estimate next year's revenue growth at 11.2%. With a strong pipeline and commercial capabilities, the company is well-positioned for future growth. As John Leite stated, "We're providing signatures in a consolidated report with predictive biomarkers, which will drive long-term growth."

Key Takeaways

The company's financial performance was strong, with revenues and adjusted EBITDA exceeding expectations. The company's revenue growth is driven by the success of its Decipher and Afirma tests, and it is making progress on its MRD, Prosigna, and IVD products. While the valuation metrics suggest that the stock may be overvalued, the company's strong pipeline and commercial capabilities position it for future growth.

3. NewsRoom

Card image cap

Fisher Asset Management LLC Reduces Holdings in Veracyte, Inc. $VCYT

Dec -04

Source: defenseworld.net

Card image cap

Head to Head Review: Veracyte (NASDAQ:VCYT) vs. Nanovibronix (NASDAQ:NAOV)

Dec -02

Source: defenseworld.net

Card image cap

Advantage Alpha Capital Partners LP Sells 7,161 Shares of Veracyte, Inc. $VCYT

Nov -28

Source: defenseworld.net

Card image cap

AXQ Capital LP Buys New Shares in Veracyte, Inc. $VCYT

Nov -25

Source: defenseworld.net

Card image cap

VCYT Stock Gains on Q3 Earnings and Revenue Beat, '25 View Up

Nov -11

Source: zacks.com

Card image cap

Veracyte to Participate in Upcoming Investor Conferences

Nov -06

Source: businesswire.com

Card image cap

Veracyte, Inc. (VCYT) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

Card image cap

Veracyte (VCYT) Q3 Earnings and Revenues Beat Estimates

Nov -05

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.00%)

6. Segments

Diagnostic Products and Biopharmaceutical Services

Expected Growth: 9%

Veracyte's 9% growth in Diagnostic Products and Biopharmaceutical Services is driven by increasing adoption of genomic tests, expanding product portfolio, and growing demand for non-invasive testing solutions. Additionally, strategic partnerships, investments in AI-powered diagnostics, and a strong sales force contribute to the company's growth momentum.

7. Detailed Products

Afirma Thyroid FNA

A genomic test that helps doctors determine whether a thyroid nodule is benign or malignant, reducing unnecessary surgeries.

Percepta Bronchial Genomic Classifier

A genomic test that helps doctors determine whether a lung lesion is cancerous or benign, reducing the need for invasive procedures.

Envisia Genomic Classifier

A genomic test that helps doctors diagnose idiopathic pulmonary fibrosis (IPF) and other interstitial lung diseases, improving patient outcomes.

Provaira

A non-invasive, RNA-based test that helps doctors diagnose peripheral artery disease (PAD), improving patient outcomes.

8. Veracyte, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Veracyte, Inc. has a moderate threat of substitutes due to the presence of alternative diagnostic tests and procedures. However, the company's proprietary technology and strong brand recognition help to mitigate this threat.

Bargaining Power Of Customers

Veracyte, Inc. has a low bargaining power of customers due to the specialized nature of its products and services. The company's strong relationships with healthcare providers and payers also reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Veracyte, Inc. has a moderate bargaining power of suppliers due to the availability of alternative suppliers for certain components and materials. However, the company's strong relationships with key suppliers help to mitigate this risk.

Threat Of New Entrants

Veracyte, Inc. has a low threat of new entrants due to the high barriers to entry in the molecular diagnostics industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

Veracyte, Inc. operates in a highly competitive industry with several established players, leading to a high intensity of rivalry. The company must continually innovate and differentiate its products and services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.20%
Debt Cost 3.95%
Equity Weight 98.80%
Equity Cost 12.15%
WACC 12.05%
Leverage 1.21%

11. Quality Control: Veracyte, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
aTyr Pharma

A-Score: 4.6/10

Value: 7.6

Growth: 6.4

Quality: 6.8

Yield: 0.0

Momentum: 5.0

Volatility: 1.7

1-Year Total Return ->

View Full Report
Stock-Card
Veracyte

A-Score: 4.3/10

Value: 1.2

Growth: 8.4

Quality: 6.4

Yield: 0.0

Momentum: 6.0

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Taysha Gene Therapies

A-Score: 4.2/10

Value: 6.2

Growth: 4.9

Quality: 4.2

Yield: 0.0

Momentum: 9.0

Volatility: 0.7

1-Year Total Return ->

View Full Report
Stock-Card
Alector

A-Score: 2.8/10

Value: 7.8

Growth: 3.7

Quality: 3.7

Yield: 0.0

Momentum: 1.0

Volatility: 0.7

1-Year Total Return ->

View Full Report
Stock-Card
Recursion Pharmaceuticals

A-Score: 2.8/10

Value: 6.8

Growth: 3.9

Quality: 3.4

Yield: 0.0

Momentum: 2.0

Volatility: 0.7

1-Year Total Return ->

View Full Report
Stock-Card
Adverum Biotechnologies

A-Score: 2.6/10

Value: 8.0

Growth: 1.9

Quality: 3.6

Yield: 0.0

Momentum: 1.0

Volatility: 1.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

44.61$

Current Price

44.62$

Potential

-0.00%

Expected Cash-Flows