Free cash flow margin recovered to 25.0% in Q3 2026 from a 3.1% trough in Q1 2025, with capex held at 1.5% of revenue, though cash on hand declined from $362.6M in Q4 2025 to $199.8M in Q3 2026.
Veracyte, Inc. (VCYT) cash flow statement — 15-year operating, investing & financing cash flows
| 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 | 173.88M | 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 % | 697.48% | 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 | 126.85M | 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 | 21.55M | 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 | 51.71M | 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 | -12.17M | -581K | -233K | -3.84M | 133K | -6.26M | 0 | -23K | 0 | 12K | 80K | 105K | 54K | 195K | 225K | 450K |
| Other Non-Cash Items | -11.72M | 7.82M | 12.45M | 65.83M | 7.68M | 3.87M | 4.74M | 312K | 251K | 2.06M | -184K | -1.77M | -2.09M | -332K | -2.66M | -719K |
| Working Capital Changes | -2.33M | -2.3M | -20.96M | -3.69M | -16.38M | 4.22M | -481K | -4.85M | -651K | -5.44M | -6.41M | 550K | -945K | 4.31M | 12.28M | -80K |
| Change in Receivables | -8.81M | -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 | -3.65M | -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 | 5.03M | -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 | -286.41M | -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 | -11.94M | -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 | 2.05% | 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 | -156.03M | -2.85M | 5.01M | 0 | 0 | -736.83M | 0 | -40M | 0 | 440K | 0 | 0 | -6.92M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -1.62M | 0 | 0 | 0 | 0 | -162.42M | 0 | 23K | 0 | 560K | -2K | -533K | -70K | 50K | 0 | -55K |
| Cash from Financing | -3.12M | -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) | 13.71M | 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 | -4.29M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -129K | 0 | 0 | 0 |
| Other Financing | -16.83M | -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 | -115.75M | 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 | 161.41M | 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 % | 27.74% | 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 % | 64.36% | 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 | 1.95 | 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) | 1.27x | 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 | 0 | 0 | 2.24M | 1.7M | 570K | 112K | 112K | 35K | 79K | 21K | 7K | 22K | 0 | 0 | 0 | 0 |
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.
Key Metrics
Top Statement Risk
Earnings quality volatility
Metrics are mathematically derived from official filings.
Operating Cash Flow Consistently Exceeds Net Income
Based on Veracyte's reported figures, operating cash flow ran at 1.23x to 1.80x net income in most recent quarters, with Q3 2026 at 1.28x, suggesting earnings are being backed by real cash generation rather than accruals alone. Quarters with near-zero net income produced ratios that are not meaningful for analysis. Investors should monitor whether this conversion holds as stock-based compensation and receivables evolve. The conversion profile appears supportive of earnings quality, though the sample of ten quarters is limited.
The gap between net income and operating cash flow is consistently positive, which suggests non-cash charges such as stock-based compensation of roughly $11M to $14M per quarter and depreciation and amortization are contributing meaningfully to the cash picture. The sharp distortions in Q2 2025 and Q2 2024, where the OCF/NI ratio spikes due to near-zero or small net income, appear to reflect denominator effects rather than unusual cash strength. Investors should monitor whether working capital swings, such as the $15.4M outflow in Q1 2025 and the $11.7M outflow in Q1 2026, reverse as they did in subsequent quarters.
Free Cash Flow Margins Recovering from Trough
According to reported quarterly figures, Veracyte's free cash flow margin moved from 3.1% in Q1 2025 to 25.0% in Q3 2026, with a peak of 34.3% in Q4 2025, indicating a meaningful recovery trajectory. Capital expenditure remained below 3% of revenue throughout the period. Investors should monitor whether the Q3 2026 margin compression from Q4 2025 reflects a sustained shift or normal volatility.
The recovery from the Q1 2025 trough suggests the business has moved beyond the period when working capital absorbed most of its operating cash generation. The fall from 34.3% in Q4 2025 to 25.0% in Q3 2026 aligns with the EPS miss and the lowered guidance tone flagged in recent context, which may indicate that margin pressure from rising R&D and SG&A is beginning to outweigh revenue leverage. Because capex is minimal relative to revenue, the free cash flow trajectory is driven primarily by operating performance and working capital timing rather than by investment intensity.
Capital-Light Model Limits Reinvestment Needs
Based on Veracyte's reported figures, capital expenditure ran between 1.0% and 3.5% of revenue across the last ten quarters, with Q3 2026 at 1.5%, consistent with a laboratory and services model that does not require heavy fixed-asset investment. Depreciation and amortization of roughly $5M to $6M per quarter sits well above capex, which warrants further investigation into asset base maintenance.
Capex consistently running below depreciation and amortization may suggest the company is not fully replacing its depreciating asset base, which could eventually require heavier reinvestment in laboratory equipment and systems. The distortion from acquisition-related intangible amortization within D&A should be considered before drawing firm conclusions. Given the company's CLIA-certified laboratory footprint, investors should monitor whether capex needs rise as testing volume scales.
Working Capital Swings Drive Quarterly Volatility
According to recent SEC filings, Veracyte's working capital changes ranged from a $15.4M outflow in Q1 2025 to a $6.4M inflow in Q3 2025, with the largest drag in Q1 2026 at $11.7M, indicating that receivables and collections timing materially affects reported quarterly cash flow. Investors should monitor collection efficiency for signs of structural change.
The pattern of large Q1 outflows across both 2025 and 2026 may suggest seasonal billing or collection dynamics tied to payer reimbursement cycles, though the reported data alone does not confirm the cause. Because the working capital line has partially offset strong operating performance in certain quarters, the quality of reported OCF depends on the timing of collections. Investors should monitor whether accounts receivable and contractual allowance estimates trend toward realized cash collection over time.
Quarterly Cash Strength May Mask Earnings Pressure
Based on reported figures, Q3 2026 operating cash flow of $40.3M remained strong, yet the EPS miss of $0.38 versus a $0.45 estimate and rising R&D from $16.3M to $32.2M suggest near-term earnings power may be weaker than modeled, and cash generation may not fully reflect that pressure. Investors should monitor forward guidance.
Strong quarterly operating cash flow can coexist with deteriorating forward earnings, particularly when working capital timing or stock-based compensation flatter the cash picture. The combination of elevated R&D, SG&A growth, and a lowered guidance tone may indicate that cash conversion looks healthy today while the underlying cost base is absorbing more of the gross profit. Investors should monitor whether free cash flow margins can hold above 20% as operating expenses continue to scale.