Education
About Us
Working with TipRanks
Follow Us
Exact Sciences Corp. (EXAS)
NASDAQ:EXAS
Top Page
Exact Sciences
(NASDAQ:EXAS)
Select Model
Select Model
Rating:53Neutral
Price Target:
$52.00
▼(-3.13% Downside)
Exact Sciences' overall stock score reflects a mix of strong operational growth and significant profitability challenges. The earnings call provided positive guidance and growth potential, which is a major strength. However, financial performance and valuation concerns weigh heavily on the score. Technical analysis suggests bullish momentum, but caution is advised due to potential overbought conditions.
Positive Factors
Revenue Growth
The company's strong revenue growth indicates robust demand for its diagnostic tests, enhancing its market position and supporting long-term financial health.
Product Expansion
Expanding Cologuard Plus coverage with major payers increases market penetration, driving future revenue and strengthening competitive advantage.
New Product Launch
The launch of Cancerguard opens new revenue streams and positions the company in the growing multi-cancer detection market, enhancing long-term growth prospects.
Negative Factors
Profitability Challenges
Despite revenue growth, ongoing profitability issues could hinder investment in innovation and expansion, impacting long-term financial stability.
Rising Debt Levels
Increased leverage may strain financial flexibility, limiting the company's ability to invest in growth opportunities and manage economic downturns.
Internal R&D Challenges
Challenges in internal R&D may slow innovation and increase reliance on external partnerships, potentially impacting competitive positioning.
Exact Sciences (EXAS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.06B
Dividend YieldN/A
Average Volume (3M)2.89M
Price to Earnings (P/E)―
Beta (1Y)0.52
Revenue Growth12.56%
EPS Growth-464.28%
CountryUS
Employees6,900
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-0.01
Shares Outstanding189,319,100
10 Day Avg. Volume2,306,595
30 Day Avg. Volume2,891,489
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue3.99
Enterprise Value/Gross Profit5.84
Enterprise Value/Ebitda-14.31
Forecast
1Y Price Target
$64.88Price Target Upside20.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
Exact Sciences Business Overview & Revenue Model
Company DescriptionExact Sciences Corporation is a molecular diagnostics company based in Madison, Wisconsin, primarily focused on the early detection and prevention of cancer. The company operates in the healthcare sector, specializing in non-invasive screening tests for colorectal and other cancers. Its flagship product, Cologuard, is a stool-based DNA test designed to detect colorectal cancer and precursors to the disease, while the company is also involved in developing tests for other types of cancers, enhancing its portfolio of oncology-focused diagnostic solutions.
How the Company Makes MoneyExact Sciences generates revenue primarily through the sale of its diagnostic tests, particularly Cologuard, which is reimbursed by various healthcare payers, including Medicare and private insurance providers. The company also earns revenue from laboratory services and partnerships with other healthcare organizations to expand its test offerings and reach. Significant partnerships, such as collaborations with pharmaceutical companies and healthcare systems, help enhance its market presence and contribute to its earnings. Additionally, Exact Sciences invests in research and development to innovate and broaden its test portfolio, aiming to capture more market share in the oncology diagnostics space.
Exact Sciences Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong operational and financial performance with record-breaking results and increased guidance. However, the disappointment from the blood-based test results and reliance on external technology for CRC blood screening pose challenges. Nonetheless, the expansion of Cologuard Plus and new product launches demonstrate robust growth potential.Q2-2025 Updates
Positive Updates
Record Test Results and Revenue Growth
Exact Sciences delivered a record 1.3 million test results, with core revenue growth accelerating to 16% year-over-year. Adjusted EBITDA reached an all-time high of $138 million.
Increased Financial Guidance
Revenue guidance was raised by $55 million at midpoint, and adjusted EBITDA guidance was increased by $25 million.
Expansion of Cologuard Plus
The company expanded its agreement with two top payers, Humana and Centene, to include Cologuard Plus in-network, covering about 40 million members.
Medicare Coverage for Oncodetect
Gained Medicare reimbursement for Oncodetect, a molecular residual disease test, supporting its role in cancer treatment monitoring.
Launch of Cancerguard Test
Announced the launch of Cancerguard, a blood-based multi-cancer early detection test targeting a $25 billion addressable market.
Negative Updates
Disappointing Blood Test Results
The blood-based colorectal cancer screening test showed sensitivities of 73% for colon cancer and 14% for advanced precancerous lesions at 90% specificity, which was below expectations.
Negative GAAP Net Income
GAAP net income was negative $1 million, including $15 million in onetime costs related to increasing operational efficiency and productivity.
Challenges with Internal R&D
Internal R&D efforts faced challenges, as evidenced by the need to acquire blood-based CRC screening technology from Freenome.
Company Guidance
In the Exact Sciences second quarter 2025 earnings call, the company reported significant growth and updated guidance, highlighting several key metrics. Exact Sciences delivered a record 1.3 million test results, with core revenue growth accelerating to 16% year-over-year, leading to an all-time high of $138 million in adjusted EBITDA. Consequently, the company raised its revenue guidance midpoint by $55 million and adjusted EBITDA by $25 million. Screening revenue grew by 18% to $628 million, while precision oncology revenue increased by 9% to $179 million. The company also forecasted third-quarter revenue between $800 million and $815 million, and full-year total revenue between $3.13 billion and $3.17 billion, representing annual growth of 14%. Adjusted EBITDA guidance for the full year was increased to a range of $455 million to $475 million, implying a growth of over 44% and a margin expansion of about 300 basis points. Exact Sciences also announced a multiyear productivity plan targeting $150 million in annual savings by 2026, with $50 million of these savings reflected in the 2025 guidance.Exact Sciences Financial Statement Overview
Summary
Exact Sciences is experiencing steady revenue growth, but profitability remains a significant challenge. The balance sheet shows increased leverage, which could pose risks if not managed properly. Cash flow generation is weak, highlighting the need for improved operational efficiency. Overall, the company needs to focus on enhancing profitability and cash flow to strengthen its financial position.Income Statement
Exact Sciences shows a consistent revenue growth trend, with a TTM revenue growth rate of 3.95%. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins over the years. The gross profit margin remains strong at 68.19% in the TTM, but the persistent negative net income and EBIT margins highlight ongoing operational challenges.45
Neutral
Balance Sheet
The company's debt-to-equity ratio has increased to 1.02 in the TTM, indicating a higher reliance on debt financing. The return on equity is negative, reflecting the company's inability to generate positive returns for shareholders. However, the equity ratio remains stable, suggesting a balanced asset structure.50
Neutral
Cash Flow
Exact Sciences has shown a decline in free cash flow growth in the TTM, with a decrease of 12.63%. The operating cash flow to net income ratio is below 1, indicating that the company is not generating sufficient cash from operations to cover its net losses. The free cash flow to net income ratio is positive, but still reflects challenges in cash generation.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.94B | 2.76B | 2.50B | 2.08B | 1.77B | 1.49B |
| Gross Profit | 2.00B | 1.92B | 1.85B | 1.51B | 1.31B | 1.14B |
| EBITDA | -818.55M | -788.73M | 41.88M | -386.74M | -617.73M | -632.86M |
| Net Income | -1.01B | -1.03B | -204.15M | -623.51M | -595.63M | -848.53M |
Balance Sheet | ||||||
| Total Assets | 5.80B | 5.93B | 6.47B | 6.23B | 6.68B | 4.93B |
| Cash, Cash Equivalents and Short-Term Investments | 858.43M | 1.04B | 777.64M | 632.06M | 1.03B | 1.84B |
| Total Debt | 2.52B | 2.75B | 2.55B | 2.45B | 2.38B | 2.33B |
| Total Liabilities | 3.33B | 3.53B | 3.33B | 3.18B | 3.30B | 2.69B |
| Stockholders Equity | 2.47B | 2.40B | 3.15B | 3.04B | 3.39B | 2.24B |
Cash Flow | ||||||
| Free Cash Flow | 169.62M | 74.55M | 31.93M | -438.02M | -238.00M | 72.13M |
| Operating Cash Flow | 305.61M | 210.54M | 156.12M | -223.56M | -102.24M | 136.48M |
| Investing Cash Flow | 66.87M | -442.15M | 49.68M | 74.07M | -1.08B | -702.04M |
| Financing Cash Flow | -250.41M | 231.87M | 159.77M | 76.48M | 8.47M | 1.88B |
Exact Sciences Technical Analysis
Positive
53.68
Price Trends
48.93
Positive
51.64
Positive
51.18
Positive
Market Momentum
1.33
Positive
59.29
Neutral
33.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXAS, the sentiment is Positive. The current price of 53.68 is above the 20-day moving average (MA) of 52.47, above the 50-day MA of 48.93, and above the 200-day MA of 51.18, indicating a bullish trend. The MACD of 1.33 indicates Positive momentum. The RSI at 59.29 is Neutral, neither overbought nor oversold. The STOCH value of 33.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EXAS.
Exact Sciences Risk Analysis
Exact Sciences disclosed 54 risk factors in its most recent earnings report. Exact Sciences reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Exact Sciences Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | 9.76B | 26.38 | 10.65% | 2.85% | 5.15% | 412.41% | |
63 Neutral | 676.46M | -13.21 | -4.57% | ― | 4.31% | 69.57% | |
58 Neutral | 801.60M | 14.56 | 15.79% | ― | 14.72% | ― | |
57 Neutral | 7.19B | -17.99 | 135.47% | ― | 28.74% | 18.25% | |
53 Neutral | $10.06B | ― | -35.51% | ― | 12.56% | -464.28% | |
50 Neutral | 1.02B | -9.64 | -12.18% | ― | 9.70% | -30.94% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
EXAS
Exact Sciences
53.68
-12.28
-18.62%
QGEN
Qiagen
43.93
-1.07
-2.38%
NEO
NeoGenomics
7.86
-6.64
-45.79%
CDNA
CareDx
14.87
-14.83
-49.93%
FLGT
Fulgent Genetics
22.03
0.87
4.11%
GH
Guardant Health
60.18
37.30
163.02%
Exact Sciences Corporate Events
Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Exact Sciences Announces Collaboration with Freenome Holdings
Positive
Aug 6, 2025
On August 6, 2025, Exact Sciences announced a collaboration with Freenome Holdings to develop blood-based colorectal cancer screening products. The company reported record second-quarter revenue of $811 million, a 16% increase from the previous year, and raised its full-year revenue and adjusted EBITDA guidance. Key achievements included gaining Medicare coverage for its Oncodetect test and launching a multi-year productivity plan targeting $150 million in savings by 2026.
Executive/Board ChangesShareholder Meetings
Exact Sciences Shareholders Approve 2025 Incentive Plan
Neutral
Jun 16, 2025
On June 12, 2025, Exact Sciences Corporation held its annual meeting where shareholders approved the 2025 Omnibus Long-Term Incentive Plan and an amendment to the 2010 Employee Stock Purchase Plan. Additionally, the shareholders elected seven directors, ratified the appointment of PricewaterhouseCoopers as the company’s independent auditor for 2025, and approved executive compensation. However, a proposal for a director election resignation governance policy was not approved.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.