Revenue rose to $151.8M with gross margin near 70.6%, but operating margin fell from 18.4% in Q4 2025 to 10.9% in Q3 2026 as SG&A climbed to $58.0M, suggesting overhead is currently outpacing gross profit expansion.
Veracyte, Inc. (VCYT) annual income statement — 15-year revenue, gross profit & net income history
| 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 | 581.78M | 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 % | 17.5% | 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 | 160.86M | 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 | 420.92M | 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 % | 72.35% | 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 | 331.58M | 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 | 208.83M | 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 | 109.55M | 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 | 843K | 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 | 89.34M | 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 % | 15.36% | 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 | 110.89M | 95.56M | 39.6M | -58.61M | -15.15M | -62.31M | -27.45M | -11.01M | -18.31M | -22.7M | -25.29M | -32.67M | -27.83M | -22.17M | -18.22M | -14.65M |
| EBITDA Margin % | 19.06% | 18.48% | 8.88% | -16.23% | -5.11% | -28.39% | -23.36% | -9.15% | -19.9% | -31.54% | -38.86% | -65.99% | -72.88% | -101.33% | -156.72% | -554.06% |
| EBITDA Growth % | 135.29% | 141.32% | 167.57% | -286.77% | 75.68% | -127.04% | -149.27% | 39.88% | 19.32% | 10.26% | 22.57% | -17.37% | -25.51% | -21.68% | -24.35% | - |
| D&A (Non-Cash Add-back) | 21.55M | 21.41M | 23.46M | 27.19M | 25.93M | 19.59M | 7.94M | 4.12M | 3.92M | 3.84M | 3.51M | 800K | 1.18M | 999K | 706K | 611K |
| EBIT | 111.17M | 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 | 10.9M | 0 | 11.15M | 7.33M | 1.77M | -106K | 365K | 2.35M | -1.96M | -4.94M | -2.76M | -378K | -439K | -228K | 2K | 2K |
| Interest Income | 10.9M | 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 | 21.83M | -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 | 111.17M | 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 % | 19.11% | 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 | -15.68M | 1.85M | 1.61M | -2.21M | 133K | -6.09M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2K | 0 |
| Effective Tax Rate % | -14.1% | 2.71% | 6.24% | 2.88% | -0.37% | 7.45% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0.01% | 0% |
| 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 |
| Net Margin % | 21.8% | 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 % | 318.41% | 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) | 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 |
| 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) | 1.53 | 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 % | 310.12% | 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 | 82.78M | 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 | 80.5M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Q3 EPS miss and guidance tone
Metrics are mathematically derived from official filings.
Revenue Growth Sustained Near Fifteen Percent
Based on reported quarterly figures, Veracyte's revenue rose from $114.4M in Q2 2024 to $151.8M in Q3 2026, with year-over-year growth holding near 15% in the latest quarter, suggesting durable though no longer accelerating top-line momentum.
The shift from roughly 27% growth in mid-2024 to the mid-teens range in 2026 suggests the company is maturing from a rapid-expansion phase into steadier compounding. Growth appears to be increasingly driven by the Decipher prostate franchise, though the reported figures do not break out volume versus pricing contributions. Investors should monitor whether sequential revenue gains hold above the mid-teens rate as the base grows larger.
Gross Margin Holding Above Seventy Percent
As reported in financial statements, Veracyte's gross margin ranged between 69% and 74% across the last ten quarters, with the latest quarter at 70.6%, indicating a structurally scalable testing model with relatively stable pricing.
The gross margin band suggests the incremental cost of lab consumables is low relative to reimbursed test value, which supports the scalability thesis. The modest dip to 70.6% in Q3 2026 from 74.4% in Q4 2025 may reflect payer mix or cost timing, but the reported data does not isolate the cause. Sustained margins above 70% would support the view that reimbursement pressure has not yet materially eroded unit economics.
Operating Leverage Compressed by Rising Overhead
According to recent SEC filings, Veracyte's operating margin fell from 18.4% in Q4 2025 to 10.9% in Q3 2026 as SG&A climbed to $58.0M, indicating that overhead growth is currently outpacing gross profit expansion.
Gross profit grew modestly while SG&A rose faster in the most recent quarters, which reverses the operating leverage thesis that prevailed through 2025. This pattern may reflect integration costs or commercial investment tied to recent acquisitions, though the filings alone do not confirm the driver. Investors should watch whether SG&A growth moderates relative to revenue in subsequent quarters.
Net Income Volatility Obscures Underlying Earnings
Based on Veracyte's reported figures, quarterly net income swung from a loss of $980K in Q2 2025 to $41.1M in Q4 2025 and $31.5M in Q3 2026, with net margins fluctuating between -0.8% and 29.3%.
The wide swings in net margin indicate that reported earnings are sensitive to non-operating items and tax effects, not only operating performance. Q4 2025 net income exceeded operating income, which suggests non-operating gains or tax benefits contributed materially to that quarter. Analysts should normalize earnings for these items before extrapolating profitability trends.
R&D Spending Rising Alongside Commercial Build
As reported in financial statements, Veracyte's R&D expense increased from $16.3M in Q2 2025 to $32.2M in Q3 2026, roughly doubling, while stock-based compensation remained near $14M per quarter.
R&D roughly doubling over five quarters signals a deliberate pivot toward pipeline expansion, including the lung and additional indication programs. Stock-based compensation holding steady at around $14M per quarter represents a meaningful non-cash charge that dilutes the view of cash-based profitability. Management's discipline will be tested by whether this R&D intensity translates into approved, reimbursed products.
Margin Compression Risk Could Undermine Thesis
Based on reported figures, the combined pressure of rising R&D, elevated SG&A, and a Q3 2026 EPS miss of $0.38 versus a $0.45 estimate suggests near-term earnings power may be weaker than the market had modeled.
The bearish reading is that operating margin has contracted from 18.4% to 10.9% in three quarters while the company continues to absorb higher R&D costs, which may pressure margins further if revenue growth slows. The lowered guidance tone combined with the EPS miss warrants skepticism toward assumptions of sustained operating leverage. Investors should monitor whether the decline in operating margin proves transitory or structural.