Myriad(MYGN) - 2025 Q1 - Quarterly Report

Revenue Performance - Total revenue for the three months ended March 31, 2025, was $195.9 million, a decrease of$6.3 million (3.1%) compared to $202.2 million in the same period of 2024[90]. - Hereditary Cancer revenue decreased by$1.8 million (2.0%) to $86.3 million, while Prenatal revenue increased by$5.0 million (11.3%) to $49.3 million[90][94]. - Pharmacogenomics revenue fell by$7.9 million (20.3%) to $31.0 million, primarily due to a 22$2.9 million (4.5%) to $61.7 million, with cost of revenue as a percentage of total revenue slightly improving to 31.5$2.6 million (10.4%) to $27.5 million, reflecting the company's commitment to innovation[96]. - Total operating expenses were$163.2 million, a decrease of $2.3 million (1.4$165.5 million in the prior year[96]. Other Income and Tax - Other income (expense), net decreased by $2.4 million (120.0$(0.4) million, primarily due to a prior period gain from the Precise Tumor acquisition[97]. - Income tax benefit for Q1 2025 was $29.3 million, with an effective tax rate of 99.7$0.1 million and a rate of (0.4)% in Q1 2024[99]. - The effective tax rate for Q1 2025 was influenced by the release of unrecognized tax benefits related to tax refund claims[99]. Cash Flow and Financing - Cash and cash equivalents decreased by $10.6 million from$102.4 million as of December 31, 2024, to $91.8 million as of March 31, 2025, primarily due to$16.3 million used in operations[109]. - Cash flows used in operating activities improved by $2.3 million in Q1 2025, totaling$(16.3) million compared to $(18.6) million in Q1 2024[110]. - Cash flows from financing activities increased by$22.4 million in Q1 2025, primarily due to $19.5 million in incremental borrowings from the ABL Facility[113]. - As of March 31, 2025, the company had$60.0 million outstanding under the ABL Facility, with $41.9 million available for borrowing[105]. - The company expects to receive a tax refund of approximately$13 million during 2025, including interest, following the review of tax refund claims related to the CARES Act[103]. - The company experienced a decrease in cash flows from investing activities, which increased by $1.2 million to$(8.3) million in Q1 2025, primarily due to higher expenditures for internal-use software[112]. Leadership and Strategy - New leadership appointments include Samraat Raha as President and CEO, effective April 30, 2025[92]. - The company plans to continue investing in clinical evidence development to support existing products and the launch of new products like FirstGene and Precise Liquid[86]. - The company aims to enhance customer experience and expand sales channels, particularly into large health systems[86]. Risk Factors - The company is subject to covenants under the ABL Facility that may limit its ability to incur additional indebtedness[106]. - Approximately 7% of the company's revenue for Q1 2025 was denominated in currencies other than the U.S. dollar, primarily Japanese yen, exposing it to foreign currency exchange risks[117].