Myriad Genetics Cuts Full-Year Guidance by $90 Million, Suspends EBITDA Target, and Launches Ascend Efficiency Initiative After Q2 Miss

Myriad Genetics, Inc. (NASDAQ: MYGN), a molecular diagnostics and precision medicine company, reported Q2 2026 financial results on July 30, 2026 that fell well short of expectations. Revenue of $190.7 million declined 11% year over year, missing the consensus estimate of $206 million. The company cut full-year 2026 revenue guidance to $770 to $790 million from $860 to $880 million, a reduction of approximately $90 million at the midpoint, and suspended adjusted EBITDA guidance entirely. Shares fell roughly 38% in after-hours trading.

Three Converging Pressures Drove the Revenue Shortfall

The Q2 miss reflected three distinct headwinds hitting simultaneously. First, prenatal health revenue fell 16% year over year, as volume declines outpaced management’s earlier projections. Second, lower-than-expected prior-period collections knocked approximately $11 million from average revenue per test, including a $4 million write-off of aged receivables tied to the resolution of GeneSight receivables. Third, hereditary cancer reimbursement came in below expectations. Excluding the collection timing impact, average revenue per test still declined 3% year over year, signaling underlying pricing pressure beyond the one-time items. The 460 basis point decline in gross margin to 66.6% and an operating loss of $38.9 million compounded the headline miss. Cancer Care Continuum and mental health test volumes grew 6% and 4% respectively, demonstrating that demand exists in key product lines, but pricing and reimbursement dynamics offset volume gains entirely.

Myriad Launches Ascend and a Strategic Portfolio Review to Stabilize the Business

In response, Myriad activated Ascend, an organizational efficiency initiative targeting productivity, revenue cycle management, and operating cost reduction. The company engaged a leading professional services firm to support the program and launched a rigorous evaluation of its product portfolio to identify optimal capital allocation. CEO Sam Raha framed the actions as steps toward identifying initiatives to increase growth, profitability, and liquidity. Management suspended adjusted EBITDA guidance specifically because Ascend’s financial impact remains uncertain in timing and magnitude. On the product side, Prolaris+ AI launched for prostate cancer at the end of Q2, Precise MRD expanded beyond early access to colorectal and renal cancers in June, and Myriad submitted Precise MRD breast to MolDX for a Local Coverage Determination, a step that could open Medicare reimbursement for the test. FirstGene, a prenatal screening product, also launched commercially during the quarter.

Guidance Reset and the Road to H2 Recovery

Management guided Q3 revenue to be flat to slightly higher than Q2’s $190.7 million, with Q4 improving from Q3 as Ascend efficiencies take hold and new products gain traction. The full-year $770 to $790 million range sits roughly $74 million below the consensus estimate of $863.6 million, implying analysts will need to reset models significantly. Myriad ended Q2 with $115.2 million in cash against $120.7 million in long-term debt, a balance sheet that provides limited cushion if the efficiency program takes longer to deliver than anticipated. Analyst price targets now range from $4 to $10, with TD Cowen cutting to $4 from $6 following the print while Piper Sandler maintained its Buy rating. The stock closed at $5.37 before the report and fell approximately 38% to roughly $3.34 in after-hours trading, breaking below its prior 52-week low of $3.53 and setting a new one on the print.

Strategic Investment Summary

• Q2 2026 Results: Myriad Genetics (NASDAQ: MYGN) reported Q2 revenue of $190.7 million, down 11% year over year and $15 million below the consensus estimate, with a net loss of $43.2 million and a gross margin of 66.6%, down 460 basis points.
• Guidance Cut: Full-year 2026 revenue guidance reset to $770 to $790 million from $860 to $880 million, a midpoint reduction of approximately $90 million, and adjusted EBITDA guidance was suspended pending the outcome of the Ascend efficiency initiative.
• Revenue Drivers of the Miss: Prenatal health revenue fell 16%, approximately $11 million in lower-than-expected prior-period collections (including a $4 million GeneSight receivables write-off) reduced average revenue per test, and hereditary cancer reimbursement came in below expectations.
• Ascend Initiative: Myriad launched Ascend to improve organizational efficiency and revenue cycle management, engaged a leading professional services firm, and initiated a strategic product portfolio review to optimize capital allocation and shareholder value.
• Product Progress: Prolaris+ AI launched for prostate cancer, Precise MRD expanded to colorectal and renal cancers with a MolDX submission for breast cancer coverage, and FirstGene launched commercially, providing product-level momentum despite the headline miss.
• Balance Sheet and Outlook: Myriad held $115.2 million in cash against $120.7 million in long-term debt at Q2 end; Q3 revenue is guided flat to slightly higher than Q2, with Q4 improvement expected as efficiency gains and new product adoption build.

Find out more about the latest corporate developments and financial reports at the Myriad Genetics investor portal.