Veracyte Reports $130.2 Million Revenue in Q2 2025, Faces Net Loss Due to Impairment Charge

Veracyte, Inc. reported a total revenue of $130.2 million for the second quarter of 2025, marking a 14% increase from $114.4 million in the same period of 2024. The growth was primarily driven by a $15.3 million rise in testing revenue, which reached $122.3 million, attributed to an 18% increase in test volume. However, the company experienced a net loss of $980,000 for the quarter, a significant decline from a net income of $5.7 million in the prior year, largely due to a $20.5 million impairment charge related to its French subsidiary, Veracyte SAS.

For the first half of 2025, Veracyte's revenue totaled $244.6 million, up 16% from $211.3 million in the same period last year. Testing revenue accounted for the majority of this increase, with a $32.3 million rise compared to the previous year. The company also reported a gross profit of $169.3 million for the six months ended June 30, 2025, reflecting a 21% increase from $140.4 million in the prior year. Despite the revenue growth, operating expenses surged by 30% to $95 million in the second quarter, driven by increased research and development costs and the impairment charge.

In terms of operational metrics, Veracyte reported a total test volume of 44,966 for the second quarter, an 18% increase from 39,023 tests in the same quarter of 2024. The company also noted a decrease in product revenue, which fell to $3.6 million from $3.9 million year-over-year. The biopharmaceutical and other revenue segment saw a 21% increase, reaching $4.3 million, driven by an uptick in customer projects related to its U.S. CLIA test offerings.

Strategically, Veracyte completed the acquisition of C2i Genomics in February 2024, enhancing its capabilities in minimal residual disease detection. The company is also focusing on expanding its product offerings, including the Percepta Nasal Swab test for early lung cancer classification. However, the company faces challenges from macroeconomic factors, including inflation and fluctuating interest rates, which could impact its future performance. Looking ahead, Veracyte anticipates continued revenue growth driven by increased test volume and product adoption, while also managing its operational costs and integration of recent acquisitions.