Myriad Genetics Raises 2026 Revenue Midpoint, Advances $210 Million Prenatal Sale

Myriad Genetics (NASDAQ: MYGN) raised the midpoint of its full-year 2026 revenue outlook after reporting sequential improvements in profitability and average test revenue in the third quarter, while advancing a planned $210 million sale of its Prenatal Health business to Labcorp.

The genetic-testing company now expects 2026 revenue of $780 million to $790 million, compared with its previous range of $770 million to $790 million. The updated outlook comprises $620 million to $630 million from Cancer Care Continuum and Mental Health, plus about $160 million from Prenatal Health. Myriad kept its adjusted gross-margin forecast unchanged at 66% to 67%.

The guidance includes Prenatal Health because the business will remain part of Myriad until the transaction closes, which is targeted for early 2027. The company said the outlook reflects current trends in Cancer Care Continuum and Mental Health, partially offset by dynamics related to the planned divestiture.

Quarterly profitability improves sequentially

Third-quarter revenue was $202.7 million. GAAP gross profit totaled $137.7 million, representing a 67.9% gross margin and an increase of 130 basis points from the second quarter. Adjusted gross profit was $138.3 million, or 68.2% of revenue.

Myriad recorded a GAAP net loss of $43.9 million, wider than the $27.4 million loss reported a year earlier. Its adjusted net loss was $10.7 million, or $0.11 per diluted share, compared with adjusted net income of $0.2 million a year ago. Adjusted EBITDA was negative $5.3 million, versus positive $10.3 million in the third quarter of 2025.

Sequentially, adjusted EBITDA improved from a $16.9 million loss in the second quarter, while the adjusted loss per share narrowed from $0.25. The company attributed part of the quarter’s progress to revenue-cycle management initiatives and changes in business mix and average test revenue.

Average revenue per hereditary cancer test declined 6% year over year but increased 9% from the second quarter. Myriad said prior-period collection adjustments were immaterial in both the third quarter of 2026 and the year-earlier period, while such adjustments reduced second-quarter 2026 revenue by $11 million.

Myriad generated $3.7 million of adjusted operating cash flow and $1.6 million of adjusted free cash flow during the quarter. GAAP operating cash flow was negative $6.5 million. As of September 30, the company had access to about $182 million of liquidity, consisting of $107 million in cash and cash equivalents and $75 million available under a term-loan facility.

Cancer testing volumes grow as prenatal demand declines

Cancer Care Continuum generated $124 million of revenue from approximately 98,000 tests. Overall segment test volume increased 4% year over year, while average revenue per test declined 3%.

Within the segment, hereditary cancer testing volume rose 6%, though revenue decreased 1%. Myriad reported another three-year record for quarterly hereditary cancer testing volume among unaffected patients and cited continued expansion of testing guidelines.

The company is also continuing early-access testing for its Precise MRD product. Myriad said it is awaiting reimbursement coverage, with the MolDX process on track, and reported positive user feedback. Colorectal cancer data from the MONSTAR3 study were presented in October.

Mental Health revenue rose 2% to $40 million, supported by a 3% increase in GeneSight test volume to approximately 141,000. Average revenue per test declined 1%. More than 40,000 clinicians ordered GeneSight during the quarter, and Myriad said it remains focused on expanding coverage and refining its go-to-market approach.

Prenatal Health revenue fell 12% to $39 million as test volume declined 11% to roughly 138,000. Average revenue per test decreased 1%.

Prenatal sale to sharpen cancer focus

Under the definitive agreement announced October 20, Labcorp will acquire Myriad’s Prenatal Health testing business for $210 million plus inventory in an all-cash transaction. The sale includes the related tests, inventory, several California facilities and associated employees.

The business generated $165 million of revenue and an approximately 40% gross margin during the 12 months ended September 30, with about 600,000 tests reported. Myriad expects the transaction to add roughly $200 million in cash and said potential uses include debt reduction, growth investments and general corporate purposes.

For the first 12 months after closing, the company estimates that the divestiture could add more than 100 basis points to revenue growth and more than 500 basis points to gross margin. Management expects the sale to simplify operations, improve liquidity and allow greater focus on the Cancer Care Continuum.

Myriad’s strategic priorities also include mitigating payer friction and improving organizational efficiency, productivity and scalability. Key uncertainties include the timing and completion of the Prenatal Health transaction, reimbursement coverage for newer products such as Precise MRD, and the company’s ability to stabilize test reimbursement and convert operating initiatives into sustained profitability.