Veracyte, Inc. (NASDAQ: VCYT)

Veracyte Inc is a global diagnostics company that develops and commercializes molecular diagnostic tests to guide cancer care. The company’s portfolio includes tests for thyroid, prostate, bladder, breast and lung cancer that help clinicians personalize treatment avoid unnecessary procedures and improve patient outcomes. Veracyte serves patients worldwide through two complementary models: laboratory developed tests performed in its CLIA certified labs in the United States and in vitro diagnostic kits sold to hospitals and laboratories outside the United States. Veracyte aims to progress patient care from a standard approach to a more individualized strategy by leveraging each patient’s unique cancer biology. As of December 31 2025 the company employed 755 people and operated CLIA certified laboratories in South San Francisco, San Diego, and Austin.

Veracyte generates revenue primarily from sales of its laboratory developed tests performed in its CLIA certified laboratories in the United States and from the sale of in vitro diagnostic test kits to hospitals and laboratories outside the United States. The company also earns revenue from collaborations with biopharmaceutical partners that use data from its clinical tests to support drug development. In 2025 the majority of Veracyte’s revenue came from the Decipher Prostate and Afirma tests which together accounted for most of its testing revenue. According to its payer mix Medicare Fee For Service represented 34%, Medicare Advantage 18%, Medicaid 1%, and private commercial payers 47% of testing revenue. Biopharmaceutical and other revenue arises from partnerships that utilize data from Veracyte’s CLIA tests to provide insights into disease genetics.

The company operates through the following segments.

• United States Clinical Diagnostics: This segment provides laboratory developed tests such as Afirma for thyroid cancer, Decipher Prostate for prostate cancer, Decipher Bladder for bladder cancer, and Prosigna for breast cancer through Veracyte’s CLIA certified labs in South San Francisco, San Diego, and Austin.

• International In Vitro Diagnostic: This segment offers in vitro diagnostic versions of its tests including Prosigna and soon Decipher Prostate to hospitals and laboratories outside the United States where the tests are performed locally on platforms such as the nCounter Analysis System and the NextSeq 550Dx, and it generates revenue from sales of Prosigna IVD kits in Europe, the Middle East, Asia Pacific, and Latin America and from collaborations with Illumina to develop decentralized IVD tests on the NextSeq 550Dx platform.

Veracyte competes with companies such as Myriad Genetics, MDxHealth, Interpace Diagnostics, ThyroSeq, Natera, Guardant Health, Exact Sciences, and TempusAI in the cancer diagnostics market. The company’s competitive advantages stem from its Veracyte Diagnostics Platform which combines whole transcriptome data, bioinformatics, artificial intelligence, and a strong evidence generation engine to support reimbursement guideline adoption and continuous innovation. Veracyte’s strong relationships with key opinion leaders, broad publication record, and established payer coverage policies create barriers to entry and help sustain its market position.

Veracyte serves physicians, hospitals, and clinical laboratories that order its tests for patients suspected of having cancer. Its customers include endocrinologists, urologists, oncologists, and pathologists who use the Afirma Decipher Prostate, Decipher Bladder, and Prosigna assays to inform diagnosis prognosis and treatment decisions. The company also works with biopharmaceutical firms, public payers, and private payers that provide reimbursement for its tests and license its diagnostic data for drug development.