Myriad Genetics, Inc.

Good day and thank you for standing by. Welcome to the Myriad Genetics Third Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Matt Skylow. Please go ahead.

Good afternoon, and welcome to the MIRI Genetics third quarter 2025 earnings call. During the call, we will review the financial results we released today, and afterwards, we will host a Q&A session. Our quarterly earnings release was issued this afternoon on Form 8K and can be found on our website at investor.myriad.com. I'm Matt Scalise, Senior Vice President of Investor Relations. On the call with me today are Sam Raha, our President and Chief Executive Officer, Ben Wheeler, our Chief Financial Officer, and Mark Verratti, our Chief Operating Officer. This call can be heard live via webcast at investor.myriad.com and a recording will be archived in our investor section of our website along with this slide presentation. Please note that some of the information presented today contains projections or other forward-looking statements regarding future events or the future financial performance of the company. These statements are based on management's current expectations, and the actual events or results may differ materially and adversely from these expectations for a variety of reasons. We refer you to the documents the company files from time to time with the Securities and Exchange Commission, specifically the company's annual report on Form 10-K, its quarterly reports on Form 10-Q, and its current reports on Form 8-K. These documents identify important risk factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements. I will now turn the call over to Sam.

Thanks, Matt. Good afternoon, everyone, and thank you for joining us today. I'm pleased with our results, the actions we're taking to execute against our updated strategy, the stepped-up urgency and rigor, and how we operate, leading to growing momentum as we head into Q4 and 2026. Let me start with our results. We generated revenue of $206 million, which decreased 4% year-over-year, When you exclude previously discussed headwinds, including UnitedHealthcare's decision on GeneSight and the divested European EndoPredict business, our business was stable with Q3 of 2024. In addition, there was a material 8.6 million prior period contribution in the third quarter of 2024 that did not repeat. Factoring in these previously discussed headwinds and the prior period change of estimates, year-over-year growth was 5%. In terms of testing volume, our solid results were supported by continued strong volume growth for MyRisk and Oncology at 16% over the year-ago quarter. We also saw volume growth for MyRisk for unaffected at 11%. This is a meaningful improvement from past quarters and reflects our ongoing efforts to enhance the customer workflow, including EMR functionality. Mark will provide additional color in his section, but certainly MyRisk continues to see positive demand in the market and supports our profitable growth journey. Gene site volume grew 8% year-over-year, accelerating from the first half of 2025 as our commercial organization continued to focus on medium and higher volume accounts. Prolaris demand continues to be stable and test volume growth up modestly year-over-year. As expected, volume growth for our legacy prenatal products, Prequel and Foresight, while flat year over year, showed improvement from second quarter as we continue to increase the volume of testing customers affected in Q2 challenges and add new customers. Turning now to profitability. We generated strong adjusted gross margin of 70.1% in third quarter and closely managed our discretionary spend as reflected in our adjusted OPEX fund. Ultimately, we reported a healthy adjusted EBITDA of $10.3 million. I'll talk about our growth strategy in a moment, and Ben will talk later about our reiteration of the 2025 financial guidance. Moving to the next slide, I want to spend a few minutes reviewing our updated strategy and why we believe we will be able to deliver accelerated profitable growth in the years to come. Our first strategic pillar is the focus on the cancer care continuum to accelerate growth. We will achieve this by leveraging and growing volume of our leading hereditary cancer test, MyRisk, and also by expanding our portfolio to include other cancer screening, diagnostic, and monitoring tests. Our second strategic pillar reflects our recognition of the opportunity to meaningfully grow prenatal health and mental health revenues at or above market growth. We believe we can achieve this by leveraging recently launched products and strengthening our commercial execution while maintaining a disciplined level of investment and resources in these areas. Our third strategic pillar is about our focus and commitment to delivering sustained profitable growth by continuing to leverage our industry-leading gross margin profile and maintaining financial discipline. Now, one can say, what's different about this strategy from before? Well, there are five primary differences. First, it's about intentional focus and prioritization of funding and resources on the cancer care continuum opportunity. Second, for our cancer care portfolio, it's about going beyond our strong hereditary cancer and HRD positions and also offering tests for other relevant high-growth applications, including therapy selection and MRD. Third, it's about strategic partnerships. Unlike before, we see an increasing opportunity to serve attractive market applications in a timely manner by complementing Myriad's differentiated capabilities by leveraging select partnerships. Next, it's about having the right team with deep domain knowledge and proven experience in cancer, diagnostics, genomics, and commercial execution to win in a dynamic market. And with the leaders that have joined Myriad, like Lou Welabaugh from Biopharma and CDX Services, Hussein Korsmar for Oncology R&D, Vishal Sikri for Product, and Brian Donley as our Chief Commercial Officer, I'm confident in the strength of our overall team. Finally, it's about strengthening execution excellence. Thinking and acting with elevated urgency, leveraging industry best practices for key processes, and executing with rigor and discipline. On the next slide, let me provide updates on the progress we're making on the cancer care continuum strategy, many of which will be important catalysts for accelerating growth in 2026 and beyond. We're on track to launch our updated MyRisk test this month in November, and we expect this to support strong MyRisk growth in 2026 and beyond. In terms of offerings for other attractive high-growth cancer care applications, in September, we entered into a collaboration with Sophia Genetics that enables us to provide pharma customers with biomarker validation and CDX development services using a leading liquid biopsy-based therapy selection assay. We're making steady progress on our ultra-sensitive tumor-informed precise MRD test. We're on track to start offering the test for clinical use in the first half of 2026. The first indication will be stage 2, stage 3 breast cancer in the neoadjuvant setting. In addition, Myriad will present three MRD studies at the San Antonio Breast Cancer Symposium next month, two of which were just accepted this past week as late-breaking abstracts. We'll also be presenting six additional abstracts and other oncology-related studies for a total of nine abstracts at SABCS. We're also on track to launch our first Polaris prostate cancer test that combines the power of molecular and AI, based on our partnership with Cathomic in the first half of 2026. I expect to have more exciting news regarding strategic partnerships to share with you over the coming months. Also, I want to take a moment to share that we are making changes in our organizational design and investments to help improve customer experience, gain market share and reduce operating expenses as a percentage of revenue going forward. The actions we are taking will in part result in the reallocation of headcount and funding to support growth in the cancer care continuum. This will include the meaningful expansion of our commercial team and increased funding for commercial launch and market activation programs to support the exciting new products that I just updated you on, as well as increased funding for MRD R&D. On the next slide, let me provide brief updates on our second and third strategic pillars. In June, we commenced early access for our first gene multiple prenatal screen that we believe will support growth in our prenatal portfolio volume profitability and has significant potential to expand the prenatal market over time. Mark will provide more details on our experience during our early access and how this supports our optimism for strong commercial launch in 2026. Regarding mental health, we expect to continue growing revenue for our market-leading gene site test by concentrating high-value accounts, leveraging state biomarker laws, and building on the success we've seen over the past two quarters. In alignment with our overall strategy, we will achieve this growth for both of these businesses while maintaining disciplined capital deployment. The third strategic pillar is about our focus and commitment to delivering sustained profitable growth. The organizational redesign and efficiency actions that I shared with you earlier will support our ability to accelerate top-line growth while ensuring we grow operating expenses less than revenue. Before I turn the call over to Mark, I want to welcome our new CFO, Ben Wheeler. Ben certainly isn't new to many of you, and with 14 years of experience at Myriad, he has the knowledge, skills, and demeanor that make him our ideal CFO. Personally, I'm thrilled to partner with Ben in this important time for the company. Now, let me hand it over to our COO, Mark Verratti. Mark.