Myriad Genetics (MYGN) Q3 2025: Oncology Volume Jumps 16% as Cancer Care Focus Drives Strategic Realignment
Myriad Genetics sharpened its focus on the cancer care continuum this quarter, driving double-digit volume growth in hereditary oncology testing despite a 4% revenue decline. The company is reallocating resources, expanding its commercial team, and preparing multiple product launches to accelerate profitable growth in 2026. Operational discipline, new partnerships, and targeted investment in oncology position Myriad to capture share in high-growth segments while navigating payer mix and reimbursement challenges.
Summary
- Cancer Care Bet Intensifies: Resource reallocation and new launches target oncology market share gains.
- Operational Restructuring Underway: Cost discipline and commercial expansion aim for profitable growth.
- 2026 Pipeline in Focus: Upcoming product launches and partnerships set stage for market acceleration.
Performance Analysis
Myriad Genetics reported revenue of $205.7 million for Q3 2025, down 4% year-over-year, but testing volumes rose 3% overall, led by 16% growth in MyRisk and Oncology. This divergence between volume and top-line reflects ongoing pressure on average revenue per test, which declined 7%. The revenue headwind was driven by several factors: the UnitedHealthcare GeneSight coverage change, divestiture of the EndoPredict business, and a prior-year accounting benefit that did not recur. Adjusting for these, underlying revenue growth was 5%.
Gross margin remained robust at 70.1%, underpinned by operational efficiency and favorable test mix. Adjusted EBITDA reached $10.3 million, and free cash flow was $18.6 million, with management noting that the latter was boosted by timing of collections and not expected to repeat in Q4. Segment-wise, Oncology revenue was $81.8 million, Women's Health $85.2 million, and Mental Health (GeneSight) $38.7 million, with Women's Health showing a modest rebound in prenatal volumes after prior operational challenges.
- Volume-Margin Disconnect: Strong hereditary cancer test demand offset by lower ASP from payer mix and policy changes.
- Women's Health Stabilizes: Prenatal volumes returned to flat after Q2 declines, with new product launches planned.
- GeneSight Navigates Payer Shifts: Volume up 8% despite UnitedHealthcare headwinds; new state biomarker wins support reimbursement outlook.
While revenue growth lags volume, Myriad’s cost structure and margin profile remain resilient, allowing for continued investment in strategic initiatives as the company pivots toward oncology-led growth.
Executive Commentary
"Our first strategic pillar is the focus on the cancer care continuum to accelerate growth. We will achieve this by leveraging and growing volume of our leading hereditary cancer test, MyRisk, and also by expanding our portfolio to include other cancer screening, diagnostic, and monitoring tests."
Sam Raha, President and Chief Executive Officer
"Even with these headwinds to third quarter revenue growth, we maintained adjusted gross margins of approximately 70%. This reflects a favorable test mix, continued operational efficiencies in our labs, and underscores the strength and scalability of our business model."
Ben Wheeler, Chief Financial Officer
Strategic Positioning
1. Oncology as Growth Engine
Myriad is doubling down on the cancer care continuum, prioritizing oncology for resource allocation and commercial investment. The company is launching an expanded MyRisk panel this month, adding 15 actionable gene targets and aligning with both NCCN and ASCO guidelines, which management highlights as a differentiator for provider adoption. Upcoming launches include an ultra-sensitive MRD (minimal residual disease) test for breast cancer and an AI-enabled Prolaris prostate cancer test, both slated for 2026.
2. Partnerships and Portfolio Expansion
Strategic collaborations are emerging as a core lever, with new deals such as the Sophia Genetics partnership for liquid biopsy and companion diagnostics. These alliances are designed to accelerate entry into high-growth applications like therapy selection and MRD monitoring, supplementing Myriad’s internal R&D and broadening its biopharma offering.
3. Commercial Realignment and Execution Rigor
The company is actively restructuring its organization to drive efficiency and direct investment to high-return areas. Headcount is being reallocated from management layers to customer-facing roles, with a planned expansion of the field sales team and increased funding for product launches and R&D. The goal: grow revenue faster than operating expenses, sustaining margin improvement as new products scale.
4. Women’s and Mental Health: Disciplined Growth
While oncology is the clear strategic focus, Myriad remains committed to growing its prenatal and mental health franchises at or above market, leveraging new products like the First Gene combined prenatal screen and ongoing state-level reimbursement wins for GeneSight. However, investment in these segments will remain disciplined, supporting profitability goals.
5. Operational Leverage and Margin Focus
Management is emphasizing operational discipline, with SG&A reductions and a focus on revenue cycle management (RCM) to improve reimbursement and lower no-pay rates. Even mature products like hereditary cancer testing have room for improvement, with current no-pay rates around 30%, suggesting a multi-year margin tailwind as collections improve.
Key Considerations
This quarter marks a visible strategic pivot as Myriad concentrates its resources and organizational energy on oncology, leveraging both internal innovation and external partnerships to capture share in underpenetrated, high-value markets. The company’s ability to balance commercial expansion with cost discipline, while navigating reimbursement complexity, will define its trajectory heading into 2026.
Key Considerations:
- Oncology Launch Cadence: Timely execution of the expanded MyRisk, MRD, and Prolaris launches is critical for 2026 acceleration.
- Payer Mix Volatility: Ongoing shifts in payer mix and policy, especially around GeneSight, remain a swing factor for ASP and revenue.
- Commercial Team Effectiveness: Success of the expanded sales force and new commercial programs will determine share gains in oncology.
- Operational Efficiencies: Sustained margin improvement depends on continued SG&A discipline and RCM enhancements.
- Strategic Partnership Leverage: Ability to integrate and monetize new partnerships will shape Myriad’s competitive positioning in diagnostics.
Risks
Reimbursement uncertainty, especially around new tests and payer policies, poses a persistent risk to both ASP and volume growth. Competitive intensity in prenatal and oncology testing, operational execution on multiple concurrent product launches, and the pace of adoption for new panels and MRD assays are all material uncertainties. Management’s ability to deliver on commercial realignment and partnership integration will be tested as new products come to market.
Forward Outlook
For Q4 2025, Myriad expects:
- Revenue to remain within the $818 to $828 million full-year guidance range
- Gross margin between 69.5% and 70%
- Adjusted OpEx between $562 and $568 million
- Adjusted EBITDA of $27 to $33 million for the year
Management reiterated its commitment to growing revenue faster than operating expenses and highlighted upcoming launches of expanded MyRisk, MRD, and Prolaris tests as key growth drivers for 2026. Continued investment in the commercial organization and R&D, funded by organizational efficiencies, is expected to support this acceleration.
- Oncology launch execution and commercial team ramp-up will be closely watched.
- Payer policy developments, especially for GeneSight and prenatal, are critical for ASP stability.
Takeaways
Myriad’s Q3 signals a decisive pivot toward oncology-led growth, underpinned by commercial realignment and a robust product pipeline.
- Oncology Momentum: Double-digit volume growth and new product launches position Myriad to capitalize on underpenetrated cancer testing markets.
- Operational Discipline: Margin strength and SG&A control provide a foundation for disciplined investment in commercial and R&D priorities.
- 2026 Watchpoints: Execution on product launches, partnership integration, and payer dynamics will determine the pace and durability of growth inflection.
Conclusion
Myriad Genetics is executing a clear pivot toward oncology, investing in commercial scale and innovation while maintaining margin discipline. The company’s ability to deliver on its product pipeline and commercial transformation will be the primary determinant of sustained profitable growth as it enters 2026.
Industry Read-Through
Myriad’s results underscore the growing importance of the cancer care continuum as the next frontier for clinical diagnostics. The company’s focus on guideline-driven panels, MRD, and AI-enabled testing reflects a broader industry shift toward comprehensive, multi-modal cancer solutions. Partnerships with technology and biopharma players are becoming essential for competitive differentiation and speed to market. For the diagnostics sector, margin resilience and operational discipline are increasingly critical as payer scrutiny intensifies and ASP volatility persists. Myriad’s experience suggests that commercial execution and workflow integration remain key levers for share capture in both oncology and women’s health.