Myriad Genetics, Inc. (MYGN) - Q2 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2026. Myriad Genetics, Inc. is a leading molecular diagnostics and precision medicine company operating as a single segment. The company develops and commercializes molecular tests across three core categories: Cancer Care Continuum, Prenatal Health, and Mental Health. As of July 28, 2026, the company had 95.6 million shares of common stock outstanding.
Key Financial Metrics
| Metric (in millions) | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 |
|---|---|---|---|---|
| Revenue | $190.7 | $213.1 | $391.1 | $409.0 |
| Gross Profit | $127.0 | $151.8 | $264.6 | $286.0 |
| Gross Margin | 66.6% | 71.2% | 67.7% | 70.0% |
| Operating Loss | $(38.9) | $(329.2) | $(69.6) | $(358.2) |
| Net Loss | $(43.2) | $(330.5) | $(77.3) | $(330.6) |
| Diluted EPS | $(0.46) | $(3.57) | $(0.82) | $(3.59) |
| Cash & Equivalents | $115.2 | $74.4 | $115.2 | $74.4 |
| Long-Term Debt | $120.7 | $119.9 | $120.7 | $119.9 |
Cash Flow (Six Months Ended June 30, 2026): Net cash used in operating activities was $24.0 million. Net cash used in investing activities was $9.7 million. Net cash used in financing activities was $0.8 million.
Material Changes vs. Prior Period
- Revenue Decline: Revenue decreased 10.5% year-over-year in Q2 2026 ($22.4 million decrease) and 4.4% year-over-year for the six-month period ($17.9 million decrease).
- Cancer Care Continuum: Revenue declined due to a 15% decrease in revenue per test (reimbursement declines and estimate adjustments), partially offset by a 6% volume increase.
- Prenatal Health: Revenue declined due to a 9% volume decrease and an 8% decrease in revenue per test.
- Mental Health: Revenue declined slightly in Q2 but increased 9.2% for the six-month period, driven by volume growth and increased reimbursement.
- Impairment Charges: The prior year period included a massive $316.7 million in goodwill and long-lived asset impairment charges. The current period included only $5.4 million in impairment charges (Q1 2026), resulting in a significantly lower operating loss compared to the prior year.
- Expense Trends: Sales and marketing expenses increased 16% in Q2 due to strategic investments in personnel and marketing. General and administrative expenses decreased 13% due to lower personnel costs and rent.
- Debt Interest: Interest expense increased significantly due to the new $125 million term loan secured in July 2025, which carries a variable interest rate (10.1% as of June 30, 2026).
Guidance, Outlook, and Risks
- Management Commentary: Management is focusing on accelerating profitable growth through the Cancer Care Continuum, growing Prenatal and Mental Health revenues, and maintaining financial discipline. Recent updates include the launch of Prolaris + AI and expanded availability of Precise MRD.
- Liquidity: The company believes existing capital resources are sufficient for the next 12 months. However, liquidity is constrained by operating losses and debt covenants.
- Debt Covenants: The Credit Facility requires a minimum trailing twelve-month revenue test, starting at $615.0 million (Dec 31, 2025) and increasing to $974.0 million by Dec 31, 2029. The company was in compliance as of June 30, 2026.
- Legal Proceedings: A qui tam lawsuit regarding the False Claims Act remains ongoing. The court denied the company's motion to dismiss on most counts in July 2026. The company has not recorded a material accrual for this contingency.
- Risks: Key risks include reimbursement declines, competition, the ability to achieve revenue growth targets to meet debt covenants, and potential adverse outcomes from litigation.
Investor Verification Checklist
- Debt Covenant Compliance: Verify the company's ability to meet the escalating minimum trailing twelve-month revenue covenants ($615M to $974M) given current revenue declines.
- Reimbursement Trends: Monitor the impact of reimbursement rate declines on revenue per test, particularly in the Cancer Care and Prenatal Health segments.
- Revenue Adjustments: Review the magnitude of revenue reductions due to changes in estimates for prior period tests ($11.0M in Q2, $8.0M YTD), which indicates collection uncertainty.
- Litigation Exposure: Track the status of the qui tam lawsuit and potential financial impact if insurance coverage is disclaimed or limits are exceeded.
- Cash Burn Rate: Assess the sustainability of the current operating cash burn ($24.0M used in six months) against the $115.2M cash balance and available credit facility.