MYGN Q2 Deep Dive: Oncology Strategy Shift and Product Execution Shape Guidance

Genetic testing company Myriad Genetics (NASDAQ:MYGN) reported Q2 CY2025 results beating Wall Street’s revenue expectations, but sales were flat year on year at $213.1 million. The company’s full-year revenue guidance of $823 million at the midpoint came in 1.4% above analysts’ estimates. Its non-GAAP profit of $0.05 per share was significantly above analysts’ consensus estimates.

Is now the time to buy MYGN? Find out in our full research report (it’s free).

StockStory’s Take

Myriad Genetics reported flat year-over-year sales in Q2, but the market responded positively due to results that surpassed Wall Street’s revenue and profitability expectations. Management attributed the quarter’s outcome to improved average revenue per test and operational execution, particularly in hereditary cancer testing and the GeneSight mental health assay. CEO Sam Raha highlighted that workflow improvements and expanded payer coverage enabled gains, noting, “Growth in average revenue per test during the second quarter, up 2% year-over-year...was a leading contributor to our strong Q2 results.”

Looking ahead, Myriad Genetics’ guidance reflects management’s emphasis on expanding their oncology portfolio, further investment in the Cancer Care Continuum, and disciplined resource allocation. CEO Sam Raha outlined a focus on new cancer-related tests, including partnerships in AI and molecular diagnostics, and stated, “Execution of this updated strategy will enable us to grow revenue in the high single-digit to low double-digit range and increased profitability over the next 5 years.” The company also anticipates near-term growth from resolving prenatal product ordering system issues and continued expansion in mental health diagnostics.

Key Insights from Management’s Remarks

Management identified operational improvements, payer coverage wins, and a strategic shift toward oncology as key drivers of the quarter and future outlook.

• Hereditary cancer testing momentum: Operational changes, especially in electronic medical record (EMR) workflows, improved hereditary cancer test volumes, with oncology channel growth at 14% year-over-year.
• GeneSight recovery and growth: The GeneSight mental health test returned to mid-single-digit volume growth after commercial team realignment, helped by new payer coverage and targeted account focus.
• Prenatal system resolution: A temporary decline in prenatal test volumes was attributed to order management system issues, which have now been resolved, positioning the segment for recovery in the second half.
• Gross margin improvement: Adjusted gross margin increased 140 basis points to 71.5%, driven by favorable test mix, expanding payer coverage, and lab efficiencies, highlighting the company’s scalable business model.
• Strategic oncology expansion: Management announced a pivot to focus investment on the Cancer Care Continuum, including new partnerships (such as with PATHOMIQ for prostate cancer), and upcoming launches of expanded hereditary cancer and MRD (minimal residual disease) assays, aiming to diversify beyond core hereditary cancer testing.

Drivers of Future Performance

Myriad Genetics’ updated outlook centers on oncology portfolio expansion, operational efficiencies, and targeted growth in prenatal and mental health segments.

• Cancer Care Continuum focus: Management plans to leverage market leadership in hereditary cancer and expand into new oncology segments, such as therapy selection and MRD, through both in-house development and strategic partnerships, which they believe will enable sustained revenue growth.
• Prenatal and mental health growth: The company expects above-market growth in prenatal testing (bolstered by new product launches and system improvements) and continued mid-single-digit expansion in mental health diagnostics as coverage expands and clinician adoption rises.
• Financial discipline and resource allocation: Myriad aims to increase profitability by growing revenue faster than operating expenses, maintaining industry-leading gross margins, and prioritizing R&D spend on high-impact oncology projects while limiting broader investments in lower-growth areas.

Catalysts in Upcoming Quarters

In the upcoming quarters, our team will be monitoring (1) the successful launch and adoption of new oncology assays, particularly in MRD and expanded hereditary cancer panels; (2) the ramp-up of prenatal testing volumes following system fixes and new product introductions; and (3) progress on securing broader payer coverage, notably for GeneSight and expanded carrier screening. Developments in strategic partnerships and resource allocation will also be critical markers for execution.

Myriad Genetics currently trades at $6.03, up from $3.86 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

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