Veracyte (VCYT)
NASDAQ:VCYT
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Veracyte
(NASDAQ:VCYT)
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Rating:71Outperform
Price Target:
$33.00
▲(1.01% Upside)
Action:UpgradedDate:03/17/26
The score is driven primarily by strengthened fundamentals (profitability and accelerating free cash flow with a low-leverage balance sheet) and supportive 2026 guidance with solid testing growth targets. Offsetting these positives, technical signals are bearish (below key moving averages with negative MACD), and valuation looks rich (P/E ~49.9) while 2026 margins are guided lower due to investment and PPC comparability headwinds.
Positive Factors
Sustained High Gross Margins
Consistently high testing and overall gross margins provide durable operating leverage, insulating profits from modest reimbursement pressure. Strong margins support reinvestment in R&D and launches, sustain EBITDA targets and make cash generation less sensitive to volume swings over the next 2–6 months.
Negative Factors
Reimbursement & Timing Risk for New Products
Regulatory and payer review uncertainty for MRD and long follow-up needs for NIGHTINGALE mean commercial revenue from these strategic launches may be delayed or limited in 2026. Payer decisions and evidence timelines materially affect near-term revenue visibility and ROI on launch investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained High Gross Margins
Consistently high testing and overall gross margins provide durable operating leverage, insulating profits from modest reimbursement pressure. Strong margins support reinvestment in R&D and launches, sustain EBITDA targets and make cash generation less sensitive to volume swings over the next 2–6 months.
Read all positive factors
Veracyte (VCYT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.60B
Dividend YieldN/A
Average Volume (3M)994.67K
Price to Earnings (P/E)49.9
Beta (1Y)1.25
Revenue Growth16.41%
EPS GrowthN/A
CountryUS
Employees824
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)0.53
Shares Outstanding79,458,430
10 Day Avg. Volume783,755
30 Day Avg. Volume994,668
Financial Highlights & Ratios
PEG Ratio0.31
Price to Book (P/B)2.53
Price to Sales (P/S)6.40
P/FCF Ratio26.13
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue4.40
Enterprise Value/Gross Profit6.22
Enterprise Value/Ebitda27.27
Forecast
1Y Price Target
$43.25Price Target Upside32.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)1.66
Revenue Forecast (FY)$575.50M
Veracyte Business Overview & Revenue Model
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; Decip...
How the Company Makes Money
Veracyte primarily makes money by providing diagnostic testing services and recognizing revenue when its tests are ordered by clinicians and performed on patient samples. The main revenue stream is test revenue: the company performs proprietary ge...
Veracyte Key Performance Indicators (KPIs)
Any
Revenue By Segment
Breaks down revenue by different business segments, highlighting which areas are driving growth and profitability, and indicating where the company is focusing its strategic efforts.
Breaks down revenue by different business segments, highlighting which areas are driving growth and profitability, and indicating where the company is focusing its strategic efforts.
Data provided by:
The Fly
The FlyVeracyte Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a largely positive operational and financial story: robust revenue and volume growth, strong margins and cash generation, successful transition to a lower-cost transcriptome platform, substantial clinical evidence and data assets, and a clear product launch roadmap (TrueMRD and Prosigna) that sets up multi-year growth. Headwinds and risks were acknowledged—one-time prior-period collections (PPCs) amplified 2025 results and complicate comparability; planned investments and launch-related spending will temper margins in 2026; reimbursement timelines and near-term revenue contribution for new products (MRD, Prosigna, Percepta/NIGHTINGALE) remain uncertain. On balance, the highlights (top-line momentum, margins, cash, platform readiness, evidence generation, and pipeline) significantly outweigh the lowlights, which are mostly timing, one-time, or investment-related risks.Positive Updates
Strong Revenue Growth
Q4 total revenue of $140.6M (management also cited ~$141M) representing 19% year-over-year growth; full-year 2025 revenue of $517M, up 16% year-over-year and at the high end of preliminary range.
Negative Updates
PPCs and One-Time Collection Effects
Prior period collections (PPCs) materially benefited 2025 results (~$10M recognized in 2025); management excluded PPCs from 2026 guidance and cited a headwind (~$10M) vs. prior-year, creating comparability noise and contributing to guidance conservatism.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue Growth
Q4 total revenue of $140.6M (management also cited ~$141M) representing 19% year-over-year growth; full-year 2025 revenue of $517M, up 16% year-over-year and at the high end of preliminary range.
Read all positive updates
Company Guidance
Veracyte reiterated 2026 guidance of $570–$582 million in total revenue (10–13% year‑over‑year) with testing revenue growth of 14–16%; Afirma revenue is expected to grow in the mid‑ to high‑single digits and Decipher about 20%. The guide excludes revenue from planned 2026 launches (TrueMRD, Prosigna) and does not bake in prior‑period collections (there is a ~$10 million PPC headwind from 2025); upside to the high end could come from Afirma no‑result rate improvements, additional PPCs or Decipher volume/penetration outperformance. Management expects adjusted EBITDA margin of approximately 25% in 2026 (after achieving 27.6% in 2025 and 30.1% in Q4), with Q1 margin seasonally lower due to higher compensation/benefits/payroll taxes and lower PPCs; the company finished Q4 with $412.9 million cash and cash equivalents and generated $52.6 million of cash from operations in the quarter.Veracyte Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
82
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 517.14M | 445.76M | 361.05M | 296.54M | 219.51M |
| Gross Profit | 360.05M | 298.14M | 248.15M | 194.95M | 145.11M |
| EBITDA | 89.62M | 49.20M | -49.41M | -6.98M | -60.18M |
| Net Income | 66.35M | 24.14M | -74.40M | -36.56M | -75.56M |
Balance Sheet | |||||
| Total Assets | 1.41B | 1.30B | 1.11B | 1.16B | 1.19B |
| Cash, Cash Equivalents and Short-Term Investments | 412.89M | 289.44M | 216.45M | 178.85M | 177.16M |
| Total Debt | 39.65M | 50.74M | 12.63M | 14.72M | 18.85M |
| Total Liabilities | 96.44M | 124.07M | 70.80M | 81.22M | 91.31M |
| Stockholders Equity | 1.31B | 1.18B | 1.04B | 1.08B | 1.10B |
Cash Flow | |||||
| Free Cash Flow | 126.63M | 63.81M | 34.26M | -1.01M | -37.00M |
| Operating Cash Flow | 136.31M | 75.10M | 44.22M | 7.54M | -31.62M |
| Investing Cash Flow | -9.21M | -56.27M | 15.11M | -29.39M | -739.21M |
| Financing Cash Flow | -4.22M | 4.90M | 2.84M | 3.49M | 596.32M |
Veracyte Technical Analysis
Neutral
32.67
Price Trends
34.69
Negative
38.97
Negative
34.99
Negative
Market Momentum
-0.79
Negative
47.20
Neutral
62.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VCYT, the sentiment is Neutral. The current price of 32.67 is above the 20-day moving average (MA) of 32.32, below the 50-day MA of 34.69, and below the 200-day MA of 34.99, indicating a neutral trend. The MACD of -0.79 indicates Negative momentum. The RSI at 47.20 is Neutral, neither overbought nor oversold. The STOCH value of 62.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VCYT.
Veracyte Risk Analysis
Veracyte disclosed 56 risk factors in its most recent earnings report. Veracyte reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Veracyte Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.60B | 49.86 | 5.33% | ― | 16.41% | ― | |
63 Neutral | $3.05B | -228.91 | -10.26% | ― | 129.21% | 80.35% | |
62 Neutral | $5.65B | -29.60 | -203.17% | ― | ― | -40.75% | |
62 Neutral | $5.03B | -10.43 | -65.80% | ― | ― | -27.70% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $2.92B | -67.82 | -79.16% | ― | 114.22% | 77.02% | |
43 Neutral | $2.53B | -13.21 | -32.80% | ― | ― | -34.96% |
* Healthcare Sector Average
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Veracyte
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Veracyte Corporate Events
Business Operations and StrategyExecutive/Board Changes
Veracyte Appoints Kevin Haas as Chief Technology Leader
Positive
Mar 16, 2026
On March 16, 2026, Veracyte, Inc. announced it had appointed former Myriad Genetics executive Dr. Kevin Haas as Chief Development and Technology Officer, effective March 24, 2026, bringing extensive experience in technology, engineering and bioinf...
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.