Operational maturity is evident in the company's cash generation, with a 23.2% free cash flow margin in 2026Q1 and an OCF/NI ratio of 1.23, indicating high-quality earnings conversion.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Cash from Operations | 166.16M | 136.31M | 75.1M | 44.22M | 7.54M | -31.62M | -9.71M | -3.23M | -13.52M | -23.91M | -27.98M | -26.96M | -27.63M | -19.16M | -7.17M | -13.52M |
| Operating CF Margin % | - | 26.36% | 16.85% | 12.25% | 2.54% | -14.41% | -8.27% | -2.69% | -14.7% | -33.24% | -42.99% | -54.47% | -72.35% | -87.55% | -61.64% | -511.3% |
| Operating CF Growth % | 734.17% | 81.51% | 69.82% | 486.89% | 123.83% | -225.62% | -200.46% | 76.1% | 43.46% | 14.53% | -3.77% | 2.41% | -44.22% | -167.32% | 47.01% | - |
| Net Income | 88.01M | 66.35M | 24.14M | -74.4M | -36.56M | -75.56M | -34.91M | -12.6M | -23M | -31M | -31.36M | -33.7M | -29.37M | -25.58M | -18.65M | -14.45M |
| Depreciation & Amortization | 21.48M | 21.41M | 23.46M | 27.19M | 25.93M | 19.59M | 7.94M | 4.12M | 3.92M | 3.84M | 3.51M | 2.25M | 1.18M | 999K | 706K | 611K |
| Stock-Based Compensation | 45.4M | 43.6M | 36.25M | 33.14M | 26.73M | 22.52M | 12.99M | 9.81M | 5.96M | 6.62M | 6.38M | 5.6M | 3.55M | 1.25M | 934K | 659K |
| Deferred Taxes | -606K | -581K | -233K | -3.84M | 133K | -6.26M | 0 | -23K | 0 | 12K | 80K | 105K | 54K | 195K | 225K | 450K |
| Other Non-Cash Items | -9.24M | 7.82M | 12.8M | 66.3M | 7.68M | 3.87M | 4.74M | 312K | 251K | 2.06M | -184K | -1.77M | -2.09M | -332K | -2.66M | -719K |
| Working Capital Changes | 13.08M | -2.3M | -21.32M | -4.16M | -16.38M | 4.22M | -481K | -4.85M | -651K | -5.44M | -6.41M | 550K | -945K | 4.31M | 12.28M | -80K |
| Change in Receivables | 778K | -708K | -6.41M | 3.89M | -4.5M | -8.57M | 955K | -6.16M | -452K | -3.96M | -5.32M | -558K | -1.96M | -683K | -565K | -463K |
| Change in Inventory | -563K | -2.86M | -5.87M | -1.69M | -3.01M | -1.46M | 1.06M | -3.4M | 1.92M | -1.85M | 292K | -71K | -1.13M | -1.52M | -771K | -143K |
| Change in Payables | -5.57M | -1.04M | -4.3M | -134K | 152K | 5.16M | 711K | -141K | -1.57M | 1.73M | -1.44M | -3.55M | 1.87M | 3.35M | 1.35M | 116K |
| Cash from Investing | -85.35M | -9.21M | -56.27M | 15.11M | -29.39M | -739.21M | -3.84M | -42.73M | -1.87M | -1.2M | -4.21M | -6.7M | -9.01M | -1.28M | -1.46M | -331K |
| Capital Expenditures | -10.82M | -9.68M | -11.29M | -9.96M | -8.55M | -5.38M | -2.84M | -2.76M | -1.87M | -1.75M | -4.21M | -6.17M | -2.02M | -1.33M | -1.46M | -276K |
| CapEx % of Revenue | 2% | 1.87% | 2.53% | 2.76% | 2.88% | 2.45% | 2.41% | 2.29% | 2.04% | 2.44% | 6.47% | 12.45% | 5.3% | 6.09% | 12.57% | 10.43% |
| Acquisitions | -2.85M | -2.85M | 5.01M | 0 | 0 | -736.83M | 0 | -40M | 0 | 440K | 0 | 0 | -6.92M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 51.06M | 0 | 0 | 0 | 0 | -162.42M | 0 | 23K | 0 | 560K | -2K | -533K | -70K | 50K | 0 | -55K |
| Cash from Financing | -4.37M | -4.22M | 4.9M | 2.84M | 3.49M | 596.32M | 203.59M | 127.29M | 59.5M | -218K | 52.33M | 37.73M | 436K | 77.66M | 15.06M | 18.65M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | -1.28M | 0 | -100K | -25.21M | -292K | -2.31M | 19.16M | 0 | -110K | 4.88M | 0 | 0 |
| Equity Issued (Net) | 9.3M | 14.08M | 19.99M | 0 | 0 | 593.82M | 193.83M | 137.85M | 55.04M | 200K | 31.95M | 37.26M | 0 | 79.25M | 14.99M | 18.62M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -129K | 0 | 0 | 0 |
| Other Financing | -13.67M | -18.3M | -15.09M | 2.84M | 4.78M | 2.5M | 9.86M | 14.65M | 4.75M | 1.9M | 1.22M | 475K | 546K | -6.47M | 76K | 24K |
| Net Change in Cash | 77.05M | 123.59M | 23.3M | 62.33M | -18.95M | -176.02M | 190.05M | 81.32M | 44.1M | -25.33M | 20.14M | 4.07M | -36.21M | 57.22M | 6.44M | 4.79M |
| Free Cash Flow | 154.81M | 126.63M | 63.81M | 34.26M | -1.01M | -37M | -12.55M | -5.99M | -15.39M | -25.67M | -32.19M | -33.13M | -29.66M | -20.49M | -8.63M | -13.8M |
| FCF Margin % | 28.58% | 24.49% | 14.31% | 9.49% | -0.34% | -16.85% | -10.68% | -4.97% | -16.73% | -35.68% | -49.46% | -66.93% | -77.65% | -93.63% | -74.21% | -521.74% |
| FCF Growth % | 97.33% | 98.45% | 86.24% | 3478.8% | 97.26% | -194.84% | -109.55% | 61.1% | 40.03% | 20.26% | 2.83% | -11.71% | -44.73% | -137.47% | 37.47% | - |
| FCF per Share | 1.90 | 1.57 | 0.82 | 0.47 | -0.01 | -0.54 | -0.24 | -0.13 | -0.42 | -0.76 | -1.12 | -1.28 | -1.37 | -4.93 | -0.61 | -0.97 |
| FCF Conversion (FCF/Net Income) | 1.76x | 2.05x | 3.11x | -0.59x | -0.21x | 0.42x | 0.28x | 0.26x | 0.59x | 0.77x | 0.89x | 0.80x | 0.94x | 0.75x | 0.38x | 0.94x |
| Interest Paid | 0 | 0 | 0 | 0 | 9K | 9K | 13K | 332K | 1.55M | 2.72M | 2.15M | 278K | 0 | 0 | 0 | 0 |
| Taxes Paid | 1.43M | 0 | 2.24M | 1.7M | 570K | 112K | 112K | 35K | 79K | 21K | 7K | 22K | 0 | 0 | 0 | 0 |
Regulatory reimbursement pricing pressure
According to recent financial statements, Veracyte's operating cash flow has consistently exceeded net income, with an OCF/NI ratio of 1.23 in 2026Q1, suggesting that the company's reported profitability is supported by actual cash generation rather than aggressive accounting accruals or non-cash adjustments.
The consistent ability to generate operating cash flow in excess of net income indicates a high quality of earnings, likely driven by the efficient collection of testing service revenues. Investors should monitor whether this conversion efficiency persists as the company scales its newer diagnostic indications, as any divergence could signal a buildup of uncollected receivables.
As reported in quarterly filings, Veracyte has demonstrated a positive free cash flow trajectory, achieving a 23.2% FCF margin in 2026Q1, which highlights the company's successful transition from a cash-burning growth phase to a self-sustaining business model capable of funding its own operational requirements.
The upward trend in FCF margins suggests that the company's fixed-cost laboratory infrastructure is now operating at a scale where incremental revenue flows directly to cash reserves. This trajectory appears sustainable provided that the company maintains its current discipline regarding capital expenditures and avoids excessive investment in non-core R&D projects.
Based on the provided financial data, Veracyte maintains a low capital intensity, with CapEx/Revenue ratios consistently hovering between 1.0% and 3.5% over the last ten quarters, indicating that the company's core diagnostic platform does not require heavy, recurring investment to maintain its existing laboratory capacity.
The low capital intensity suggests that the company's primary assets are its clinical data and established physician relationships rather than heavy machinery. This allows for significant operational leverage, as the company can expand its testing volume without a proportional increase in capital expenditure, thereby preserving cash for potential strategic acquisitions.
As evidenced by the $15.4M working capital outflow in 2025Q1 followed by a $6.4M inflow in 2025Q3, Veracyte's cash flow is subject to periodic working capital fluctuations that appear linked to the timing of payer reimbursements and the management of accounts receivable within the diagnostic testing cycle.
These fluctuations suggest that while the underlying business is profitable, cash flow remains sensitive to the payment cycles of private and public insurers. Investors should investigate whether these swings are merely timing differences or if they indicate a lengthening of the collection cycle for newer, less-established diagnostic tests.
Analysis of recent filings reveals that stock-based compensation, which reached $12.8M in 2026Q1, consistently offsets a significant portion of reported net income, suggesting that the company's cash flow statement obscures the true economic cost of talent retention required to maintain its competitive clinical moat.
While SBC is a non-cash expense, it represents a real economic dilution to shareholders that is not fully captured in the operating cash flow figures. Analysts should adjust for this expense to determine the true cash-generating capability of the business, as reliance on equity-based incentives may increase if the company faces future talent competition.
Quick answers to the most common questions about buying VCYT stock.
Veracyte, Inc. (VCYT) generated $136.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Veracyte, Inc. (VCYT) generated $126.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Veracyte, Inc. (VCYT) spent $9.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.