Myriad Genetics Plunges to $358M Loss on Massive Goodwill Impairment

TL;DR

**MYGN is bleeding cash and its core assets are worth less than they thought – stay away until they prove a turnaround.**

AI Summary

MYRIAD GENETICS INC (MYGN) reported a significant net loss of $358.0 million for the nine months ended September 30, 2025, a substantial increase from the $84.8 million loss in the prior year period. This was primarily driven by a goodwill impairment charge of $234.7 million, with $91.2 million attributed to the Pharmacogenomics reporting unit and $143.5 million to the Women's Health reporting unit. Total revenue for the nine months decreased slightly to $614.7 million from $627.0 million, a 1.96% decline. Quarterly revenue for the three months ended September 30, 2025, also saw a decrease to $205.7 million from $213.3 million, a 3.56% drop. Despite the revenue decline, the company's cash and cash equivalents increased to $145.4 million as of September 30, 2025, from $102.4 million at December 31, 2024, largely due to $125.0 million in proceeds from a secured long-term credit facility. Long-term debt significantly increased to $119.5 million from $39.6 million. The company's total assets decreased from $1,027.6 million to $728.1 million, primarily due to the goodwill impairment.

Why It Matters

This filing reveals a significant deterioration in MYGN's financial health, marked by a substantial net loss and a goodwill impairment that signals a re-evaluation of its Pharmacogenomics and Women's Health segments. For investors, the increased long-term debt and declining revenue across key product lines like Pharmacogenomics and Tumor Profiling raise concerns about future profitability and growth prospects in a competitive molecular diagnostics market. Employees might face uncertainty given the operational challenges, while customers could see impacts on product development or service offerings if financial pressures persist. The broader market will watch how MYGN navigates these headwinds, especially as it competes with other diagnostic companies for market share and reimbursement.

Risk Assessment

Risk Level: high — The company reported a net loss of $358.0 million for the nine months ended September 30, 2025, a significant increase from $84.8 million in the prior year, primarily due to a $234.7 million goodwill impairment charge. This impairment, coupled with a 1.96% decline in revenue to $614.7 million for the nine-month period and a substantial increase in long-term debt to $119.5 million, indicates severe financial distress and operational challenges.

Analyst Insight

Investors should exercise extreme caution and consider reducing exposure to MYGN given the substantial net loss, significant goodwill impairment, and declining revenue. Await clear evidence of a strategic turnaround, sustained revenue growth, and improved profitability before considering investment.

Financial Highlights

debt To Equity

0.32

revenue

614.7M

operating Margin

-62.1%

total Assets

728.1M

total Debt

119.5M

net Income

-358.0M

eps

-3.88

gross Margin

69.9%

cash Position

145.4M

revenue Growth

-1.96%

Revenue Breakdown

Key Numbers

• $358.0M — Net Loss (for the nine months ended September 30, 2025, up from $84.8M in 2024)
• $234.7M — Goodwill Impairment Charge (recognized during the nine months ended September 30, 2025)
• $614.7M — Total Revenue (for the nine months ended September 30, 2025, down from $627.0M in 2024)
• $119.5M — Long-term Debt (as of September 30, 2025, up from $39.6M at December 31, 2024)
• $145.4M — Cash and Cash Equivalents (as of September 30, 2025, up from $102.4M at December 31, 2024)
• $0.29 — Net Loss Per Share (Basic and Diluted) (for the three months ended September 30, 2025, up from $0.24 in 2024)
• $3.88 — Net Loss Per Share (Basic and Diluted) (for the nine months ended September 30, 2025, up from $0.94 in 2024)
• 93.2M — Shares Outstanding (as of October 31, 2025)

Key Players & Entities

• MYRIAD GENETICS INC (company) — registrant
• Salt Lake City, Utah (location) — principal executive office
• Securities and Exchange Commission (regulator) — filing oversight
• Financial Accounting Standards Board (regulator) — accounting standards issuer
• Pharmacogenomics (company) — reporting unit with goodwill impairment
• Women's Health (company) — reporting unit with goodwill impairment

FAQ

Risk Factors

• Significant Goodwill Impairment [high — financial]: The company recognized a substantial goodwill impairment charge of $234.7 million for the nine months ended September 30, 2025. This charge was primarily driven by impairments in the Pharmacogenomics ($91.2 million) and Women's Health ($143.5 million) reporting units, indicating a significant decline in the value of acquired assets.
• Increased Indebtedness [high — financial]: Long-term debt has significantly increased to $119.5 million as of September 30, 2025, up from $39.6 million at December 31, 2024. This increase is largely attributed to proceeds from a secured long-term credit facility, raising concerns about the company's leverage.
• Declining Revenue [medium — financial]: Total revenue for the nine months ended September 30, 2025, declined by 1.96% to $614.7 million from $627.0 million in the prior year. The most recent quarter also showed a 3.56% decrease in revenue.
• Substantial Net Loss [high — financial]: The company reported a net loss of $358.0 million for the nine months ended September 30, 2025, a significant increase from the $84.8 million loss in the prior year period. This is heavily influenced by the goodwill impairment.
• Asset Value Reduction [medium — operational]: Total assets decreased from $1,027.6 million to $728.1 million primarily due to the goodwill impairment charge of $234.7 million. This reduction in asset base could impact future operational capacity.
• Uncertainty in Healthcare Reimbursement [medium — regulatory]: Changes in healthcare policies, reimbursement rates, and regulatory approvals for diagnostic tests can significantly impact Myriad's revenue streams and profitability. The company operates in a highly regulated industry.
• Competitive Landscape [medium — market]: The genetic testing and diagnostics market is highly competitive, with numerous players offering a wide range of services. Myriad faces competition from both established companies and emerging players, which can pressure pricing and market share.
• Dependence on Key Products [medium — operational]: The company's financial performance may be heavily reliant on the success and adoption of its key diagnostic tests. Any decline in demand or emergence of superior alternatives for these tests could adversely affect results.

Industry Context

Myriad Genetics operates in the highly competitive and rapidly evolving molecular diagnostics and precision medicine industry. Key trends include the increasing demand for genetic testing for disease risk assessment, companion diagnostics, and pharmacogenomics. However, the industry faces challenges related to reimbursement policies, regulatory hurdles, and the need for continuous innovation to stay ahead of technological advancements and competitor offerings.

Regulatory Implications

The company is subject to stringent regulatory oversight from bodies like the FDA and CMS, impacting its ability to develop, market, and receive reimbursement for its tests. Changes in healthcare legislation and reimbursement policies can significantly affect revenue and profitability, requiring ongoing compliance efforts and strategic adaptation.

What Investors Should Do

1. Monitor the impact of goodwill impairment on future operations and asset utilization.
2. Analyze the drivers behind the revenue decline and assess the sustainability of current revenue streams.
3. Evaluate the company's debt management strategy and its ability to service increased long-term debt.
4. Assess the company's strategy for addressing the underperformance in the Pharmacogenomics and Women's Health segments.
5. Track developments in reimbursement policies and regulatory approvals within the genetic testing industry.

Key Dates

• 2025-09-30: End of Nine Months Reporting Period — Reported a net loss of $358.0 million and total assets of $728.1 million. Cash and cash equivalents stood at $145.4 million, with long-term debt at $119.5 million.
• 2025-09-30: Goodwill Impairment Charge Recognized — A significant goodwill impairment of $234.7 million was recorded, impacting the company's net loss and asset base.
• 2025-12-31: Prior Year End Balance Sheet Date — Total assets were $1,027.6 million and long-term debt was $39.6 million, providing a baseline for comparison.

Glossary

Goodwill Impairment Charge

A reduction in the carrying value of goodwill on the balance sheet when its fair value is determined to be less than its carrying amount. This often occurs after an acquisition if the acquired business underperforms expectations. (A significant $234.7 million charge was recognized, heavily impacting the company's net loss and total assets.)

Pharmacogenomics

The study of how genes affect a person's response to drugs. It is used to personalize medicine and optimize drug selection and dosage. (This reporting unit experienced a $91.2 million goodwill impairment, suggesting underperformance in this segment.)

Women's Health

A segment of healthcare focused on the diagnosis, treatment, and prevention of diseases and conditions affecting women. (This reporting unit accounted for a $143.5 million goodwill impairment, indicating significant challenges in this area.)

Secured Long-Term Credit Facility

A type of loan that is backed by collateral, providing lenders with a claim on specific assets if the borrower defaults. It is typically used for long-term financing needs. (The company raised $125.0 million through this facility, which contributed to the increase in cash but also increased long-term debt.)

Accumulated Deficit

The cumulative net losses of a company that have not been offset by net income. It represents the total losses incurred since the company's inception. (The accumulated deficit increased significantly to $1,114.8 million, reflecting the substantial net losses reported.)

Operating Lease Right-of-Use Assets

Assets recognized under accounting standards for leases, representing the right to use an underlying asset for the lease term. (These assets decreased from $55.0 million to $50.6 million, indicating a reduction in leased assets.)

Intangibles, net

Non-physical assets that have value, such as patents, trademarks, and customer lists, net of accumulated amortization. (These decreased from $262.4 million to $163.1 million, likely due to amortization and potential impairments.)

Weighted Average Shares Outstanding

The average number of shares outstanding over a period, used to calculate earnings per share. It accounts for changes in the number of shares during the period. (Used to calculate the reported net loss per share of $3.88 for the nine months and $0.29 for the quarter.)

Year-Over-Year Comparison

Compared to the prior year period, Myriad Genetics has experienced a notable increase in net loss, from $84.8 million to $358.0 million, largely driven by a significant goodwill impairment charge of $234.7 million. Total revenue has seen a slight decline, down 1.96% for the nine months. While cash reserves have increased due to new debt financing, long-term debt has also risen substantially, indicating a shift in the company's capital structure. Total assets have decreased significantly due to the impairment charges.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value MYGN Nasdaq Global Select Mar

Filing Documents

• mygn-20250930.htm (10-Q) — 1015KB
• ex104myriadwheeler-employm.htm (EX-10.4) — 62KB
• exhibit311-certificationof.htm (EX-31.1) — 10KB
• exhibit312-certificationof.htm (EX-31.2) — 10KB
• exhibit321-certificationpu.htm (EX-32.1) — 6KB
• 0000899923-25-000112.txt ( ) — 5545KB
• mygn-20250930.xsd (EX-101.SCH) — 38KB
• mygn-20250930_cal.xml (EX-101.CAL) — 62KB
• mygn-20250930_def.xml (EX-101.DEF) — 112KB
• mygn-20250930_lab.xml (EX-101.LAB) — 509KB
• mygn-20250930_pre.xml (EX-101.PRE) — 333KB
• mygn-20250930_htm.xml (XML) — 744KB

- Financial Information

PART I - Financial Information Item 1.

Financial Statements

Financial Statements Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 (unaudited) 4 Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 (unaudited) 5 Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2025 and 2024 (unaudited) 6 Condensed Consolidated Statements of Stockholders' Equity for the three and nine months ended September 30, 2025 and 2024 (unaudited) 7 Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 (unaudited) 8 Notes to Condensed Consolidated Financial Statements (unaudited) 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 30 Item 4.

Controls and Procedures

Controls and Procedures 30

- Other Information

PART II - Other Information Item 1.

Legal Proceedings

Legal Proceedings 31 Item 1A.

Risk Factors

Risk Factors 31 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 34 Item 3. Defaults Upon Senior Securities 34 Item 4. Mine Safety Disclosures 34 Item 5. Other Information 34 Item 6. Exhibits 35

Signatures

Signatures 36 3 Table of Contents

- Financial Information

PART I - Financial Information

Financial Statements

Item 1. Financial Statements. MYRIAD GENETICS, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (unaudited) (in millions) September 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 145.4 $ 102.4 Trade accounts receivable 118.0 121.2 Inventory 31.6 27.5 Prepaid taxes 13.8 16.4 Prepaid expenses and other current assets 36.0 30.5 Total current assets 344.8 298.0 Operating lease right-of-use assets 50.6 55.0 Property, plant, and equipment, net 111.4 117.4 Intangibles, net 163.1 262.4 Goodwill 51.6 286.3 Other assets 6.6 8.5 Total assets $ 728.1 $ 1,027.6 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 31.8 $ 32.3 Accrued liabilities 108.3 119.0 Current maturities of operating lease liabilities 7.9 12.8 Total current liabilities 148.0 164.1 Unrecognized tax benefits 1.2 32.7 Long-term debt 119.5 39.6 Noncurrent operating lease liabilities 84.9 87.9 Other long-term liabilities 1.7 2.2 Total liabilities 355.3 326.5 Commitments and contingencies Stockholders' equity: Common stock, 93.1 and 91.3 shares outstanding at September 30, 2025 and December 31, 2024, respectively 0.9 0.9 Additional paid-in capital 1,486.8 1,457.8 Accumulated other comprehensive loss ( 0.1 ) ( 0.8 ) Accumulated deficit ( 1,114.8 ) ( 756.8 ) Total stockholders' equity 372.8 701.1 Total liabilities and stockholders' equity $ 728.1 $ 1,027.6 See accompanying notes to Condensed Consolidated Financial Statements. 4 Table of Contents MYRIAD GENETICS, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (unaudited) (in millions, except per share amounts) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Revenue $ 205.7 $ 213.3 $ 614.7 $ 627.0 Cost of revenue 61.9 63.5 184.9 192.5 Gross profit 143.8 149.8 429.8 434.5 Costs and expenses: Research and development expense 28.2 28.5 81.3 81.2 Sales and marketing expense 71.0

View Full Filing

View this 10-Q filing on SEC EDGAR