Veracyte has demonstrated significant operational leverage, with gross margins expanding to 72.7% in 2026Q1 from 64.5% in 2024Q1 as revenue growth reached 21.5% year-over-year.
| 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 |
|---|
| Sales/Revenue | 541.74M | 517.14M | 445.76M | 361.05M | 296.54M | 219.51M | 117.48M | 120.37M | 92.01M | 71.95M | 65.08M | 49.5M | 38.19M | 21.88M | 11.63M | 2.65M |
| Revenue Growth % | 16.91% | 16.01% | 23.46% | 21.76% | 35.09% | 86.85% | -2.4% | 30.82% | 27.87% | 10.55% | 31.48% | 29.62% | 74.51% | 88.2% | 339.62% | - |
| Cost of Goods Sold | 154.85M | 157.1M | 147.62M | 112.9M | 101.58M | 74.4M | 41.45M | 36.52M | 33.08M | 28.2M | 25.46M | 21.5M | 16.61M | 12.61M | 7.58M | 2.92M |
| COGS % of Revenue | - | 30.38% | 33.12% | 31.27% | 34.26% | 33.89% | 35.29% | 30.34% | 35.95% | 39.19% | 39.12% | 43.43% | 43.48% | 57.61% | 65.22% | 110.59% |
| Gross Profit | 386.89M | 360.05M | 298.14M | 248.15M | 194.95M | 145.11M | 76.03M | 83.84M | 58.93M | 43.76M | 39.62M | 28.01M | 21.58M | 9.28M | 4.04M | -280K |
| Gross Margin % | 71.42% | 69.62% | 66.88% | 68.73% | 65.74% | 66.11% | 64.71% | 69.66% | 64.05% | 60.81% | 60.88% | 56.57% | 56.52% | 42.39% | 34.78% | -10.59% |
| Gross Profit Growth % | - | 20.76% | 20.15% | 27.29% | 34.35% | 90.87% | -9.32% | 42.28% | 34.67% | 10.44% | 41.48% | 29.75% | 132.66% | 129.4% | 1544.29% | - |
| Operating Expenses | 320.05M | 285.89M | 282M | 333.94M | 236.03M | 227.02M | 111.42M | 98.97M | 81.16M | 70.3M | 68.43M | 61.47M | 50.59M | 32.45M | 22.97M | 14.99M |
| OpEx % of Revenue | - | 55.28% | 63.26% | 92.49% | 79.6% | 103.42% | 94.84% | 82.22% | 88.21% | 97.7% | 105.13% | 124.18% | 132.47% | 148.28% | 197.57% | 566.58% |
| Selling, General & Admin | 202.62M | 210.95M | 206.04M | 184.23M | 174.08M | 181.19M | 89.12M | 82.72M | 65.28M | 55.35M | 52.03M | 47.88M | 40.79M | 24.64M | 16.36M | 8.31M |
| SG&A % of Revenue | - | 40.79% | 46.22% | 51.03% | 58.7% | 82.54% | 75.86% | 68.72% | 70.95% | 76.92% | 79.95% | 96.71% | 106.8% | 112.59% | 140.74% | 314.03% |
| Research & Development | 80.19M | 70.81M | 69.29M | 57.3M | 40.6M | 29.84M | 17.2M | 14.85M | 14.82M | 13.88M | 15.32M | 12.8M | 9.8M | 7.81M | 6.61M | 6.68M |
| R&D % of Revenue | - | 13.69% | 15.54% | 15.87% | 13.69% | 13.59% | 14.64% | 12.34% | 16.11% | 19.29% | 23.54% | 25.85% | 25.67% | 35.69% | 56.83% | 252.55% |
| Other Operating Expenses | 3M | 4.13M | 6.67M | 92.41M | 21.35M | 15.98M | 5.09M | 1.4M | 1.2M | 476K | 202K | 140K | 72K | 0 | 0 | 0 |
| Operating Income | 66.26M | 74.15M | 16.14M | -85.8M | -41.08M | -81.9M | -35.39M | -15.13M | -22.23M | -26.54M | -28.8M | -33.47M | -29.01M | -23.17M | -18.93M | -15.27M |
| Operating Margin % | 12.23% | 14.34% | 3.62% | -23.76% | -13.85% | -37.31% | -30.12% | -12.57% | -24.16% | -36.88% | -44.25% | -67.6% | -75.95% | -105.89% | -162.79% | -577.16% |
| Operating Income Growth % | - | 359.36% | 118.81% | -108.84% | 49.84% | -131.44% | -133.95% | 31.96% | 16.22% | 7.86% | 13.93% | -15.38% | -25.17% | -22.42% | -23.99% | - |
| EBITDA | 82.32M | 95.56M | 39.6M | -58.61M | -11.83M | -60.68M | -27.45M | -11.01M | -18.31M | -22.7M | -25.29M | -32.67M | -27.83M | -22.17M | -18.22M | -14.65M |
| EBITDA Margin % | 15.19% | 18.48% | 8.88% | -16.23% | -3.99% | -27.64% | -23.36% | -9.15% | -19.9% | -31.54% | -38.86% | -65.99% | -72.88% | -101.33% | -156.72% | -554.06% |
| EBITDA Growth % | 75.39% | 141.32% | 167.57% | -395.28% | 80.5% | -121.09% | -149.27% | 39.88% | 19.32% | 10.26% | 22.57% | -17.37% | -25.51% | -21.68% | -24.35% | - |
| D&A (Non-Cash Add-back) | 16.05M | 21.41M | 23.46M | 27.19M | 29.25M | 21.23M | 7.94M | 4.12M | 3.92M | 3.84M | 3.51M | 800K | 1.18M | 999K | 706K | 611K |
| EBIT | 60.77M | 68.2M | 25.75M | -76.6M | -36.23M | -81.41M | -34.68M | -11.92M | -21.04M | -27.6M | -28.65M | -33.33M | -28.93M | -25.35M | -18.65M | -14.45M |
| Net Interest Income | 6.42M | 0 | 11.15M | 7.33M | 1.77M | -106K | 365K | 2.35M | -1.96M | -4.94M | -2.76M | -378K | -439K | -228K | 2K | 2K |
| Interest Income | 6.42M | 0 | 11.15M | 7.34M | 1.97M | 135K | 594K | 3.02M | 0 | 0 | 0 | 0 | 0 | 5K | 2K | 2K |
| Interest Expense | 0 | 0 | 2K | 15K | 198K | 241K | 229K | 677K | 1.96M | 4.94M | 2.76M | 378K | 439K | 233K | 0 | 0 |
| Other Income/Expense | 24.48M | -5.95M | 9.6M | 9.18M | 4.65M | 254K | 480K | 2.53M | -766K | -4.46M | -2.56M | -238K | -367K | -2.41M | 280K | 821K |
| Pretax Income | 90.75M | 68.2M | 25.74M | -76.61M | -36.43M | -81.65M | -34.91M | -12.6M | -23M | -31M | -31.36M | -33.7M | -29.37M | -25.58M | -18.65M | -14.45M |
| Pretax Margin % | 16.75% | 13.19% | 5.78% | -21.22% | -12.28% | -37.2% | -29.71% | -10.47% | -25% | -43.09% | -48.18% | -68.08% | -76.91% | -116.89% | -160.38% | -546.12% |
| Income Tax | 2.73M | 1.85M | 1.61M | -2.21M | 133K | -6.09M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2K | 0 |
| Effective Tax Rate % | 3.01% | 2.71% | 6.24% | 2.88% | -0.37% | 7.45% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0.01% | 0% |
| 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 |
| Net Margin % | 16.25% | 12.83% | 5.42% | -20.61% | -12.33% | -34.42% | -29.71% | -10.47% | -25% | -43.09% | -48.18% | -68.08% | -76.91% | -116.89% | -160.38% | -546.12% |
| Net Income Growth % | 166.31% | 174.89% | 132.44% | -103.51% | 51.62% | -116.46% | -177.08% | 45.22% | 25.82% | 1.13% | 6.96% | -14.74% | -14.83% | -37.17% | -29.1% | - |
| Net Income (Continuing) | 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 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.08 | 0.82 | 0.31 | -1.02 | -0.51 | -1.11 | -0.66 | -0.27 | -0.62 | -0.91 | -1.09 | -1.30 | -1.36 | -6.15 | -1.31 | -1.02 |
| EPS Growth % | 164.09% | 164.52% | 130.39% | -100% | 54.05% | -68.18% | -144.44% | 56.45% | 31.87% | 16.51% | 16.15% | 4.41% | 77.89% | -369.47% | -28.43% | - |
| EPS (Basic) | - | 0.84 | 0.32 | -1.02 | -0.51 | -1.11 | -0.66 | -0.27 | -0.62 | -0.91 | -1.09 | -1.30 | -1.36 | -6.15 | -1.31 | -1.02 |
| Diluted Shares Outstanding | 81.31M | 80.57M | 78.16M | 72.64M | 71.55M | 67.89M | 53.24M | 46.14M | 37.02M | 33.93M | 28.83M | 25.94M | 21.64M | 4.16M | 14.2M | 14.2M |
| Basic Shares Outstanding | 79.54M | 78.58M | 76.48M | 72.64M | 71.55M | 67.89M | 53.24M | 46.14M | 37.02M | 33.93M | 28.83M | 25.94M | 21.64M | 4.16M | 14.2M | 14.2M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Regulatory reimbursement pricing pressure
According to recent financial filings, Veracyte has maintained a consistent growth trajectory, with quarterly revenue reaching $139.1M in 2026Q1, representing a 21.5% year-over-year increase that suggests successful market penetration of the Decipher prostate franchise and continued adoption of the core Afirma testing platform.
The company's ability to sustain double-digit top-line growth indicates that its clinical utility data is effectively driving physician adoption. Investors should monitor whether this growth remains durable as the company attempts to scale newer pipeline products, which may face longer adoption cycles than the established oncology franchises.
As reported in quarterly income statements, Veracyte achieved a gross margin of 72.7% in 2026Q1, reflecting a notable improvement from the 64.5% level observed in 2024Q1, which implies that the company is successfully leveraging its centralized laboratory infrastructure to drive higher profitability per test performed.
This margin expansion suggests that the company is benefiting from economies of scale within its CLIA-certified facilities. However, the sustainability of these margins remains sensitive to potential shifts in payer reimbursement policies, which could compress the average selling price if regulatory bodies adjust coverage rates.
Based on the provided income statement data, Veracyte has successfully transitioned to positive operating income, reaching $22.6M in 2026Q1, which demonstrates that revenue growth is now outpacing the fixed costs associated with the company's specialized sales force and administrative infrastructure compared to previous periods of operating losses.
The shift from negative operating margins in 2025Q2 to 16.3% in 2026Q1 suggests that the business model is reaching a critical inflection point of operational efficiency. Analysts should evaluate whether this leverage can be maintained as the company continues to invest in R&D for its broader diagnostic pipeline.
Analysis of the company's financial disclosures reveals that stock-based compensation remains a consistent expense, totaling $12.8M in 2026Q1, which warrants careful consideration when evaluating the quality of the reported $28.7M net income and the underlying cash-generating capability of the core diagnostic testing business.
While the company has achieved GAAP profitability, the reliance on stock-based compensation as a significant operating expense suggests that true economic earnings may be lower than the headline figures. Investors should distinguish between operational cash flow improvements and the non-cash impact of equity-based incentives on the bottom line.
Despite recent profitability, the company faces potential headwinds as evidenced by the volatility in quarterly net income, which swung from a loss of $980K in 2025Q2 to a profit of $41.1M in 2025Q4, indicating that non-operating items and integration costs may obscure the underlying operational stability.
Short-term fluctuations in profitability suggest that the company's earnings profile is not yet fully stabilized. Furthermore, the reliance on a US-centric reimbursement model leaves the company vulnerable to any legislative changes in Medicare pricing, which could fundamentally alter the current margin structure.
Quick answers to the most common questions about buying VCYT stock.
For fiscal year 2025, Veracyte, Inc. (VCYT) reported total revenue of $517.1M. This represents a 19451.8% increase compared to $2.6M in 2011.
Veracyte, Inc. (VCYT) is profitable, generating $66.4M in net income for the fiscal year ending 2025 with a net profit margin of 12.8%.
Veracyte, Inc. (VCYT) reported an operating income of $74.2M, resulting in an operating profit margin of 14.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Veracyte, Inc. (VCYT) generated $360.0M in gross profit for the year, representing a gross profit margin of 69.6%. This demonstrates the company's core pricing power and production efficiency.