MYRIAD GENETICS INC 10-K

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA MYRIAD GENETICS, INC. Index to Financial Statements Page Report of Independent Registered Public Accounting Firm (PCAOB ID: 42 ) 77 Consolidated Balance Sheets as of December 31, 2025 and 2024 79 Consolidated Statements of Operations for the Years Ended December 31, 2025 , 2024 and 2023 80 Consolidated Statements of Comprehensive Loss for the Years Ended December 31, 2025 , 2024 and 2023 81 Consolidated Statements of Stockholders' Equity for the Years Ended December 31, 2025 , 2024 and 2023 82 Consolidated Statements of Cash Flows for the Years Ended December 31, 2025 , 2024 and 2023 83 Notes to Consolidated Financial Statements 84 76 Table of Contents Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of Myriad Genetics, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Myriad Genetics, Inc. and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive loss, stockholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 24, 2026 expressed an unqualified opinion thereon. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Measurement of revenue Description of the Matter During the year ended December 31, 2025, the Company’s revenue was $824.5 million. As discussed in Note 1 of the consolidated financial statements, management estimates the expected amount of consideration to be received as revenue and revenue is recognized when the performance obligation is complete. Auditing the measurement of the Company’s revenue was complex and judgmental due to the significant estimation required in determining the amount that will be collected for each test. In particular, the estimate of revenue is affected by assumptions related to payors such as changes in payor mix, historical and current payment trends and other changes in payor behavior. 77 Table of Contents How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of internal controls that address the risks of material misstatement relating to the measurement of revenue related to tests performed. Our procedures included testing controls over management’s review of the significant assumptions and inputs used in calculating the estimated amounts to be collected for tests performed. We also tested controls used by management to evaluate the current and historical data used in making the estimates for completeness and accuracy. Our audit procedures over the Company’s revenue included, among others, assessing the methodologies used to estimate consideration expected to be received for tests performed and testing the significant assumptions and the underlying data used by the Company in its analysis. We assessed the reasonableness of adjustments to estimates of future cash collections as a result of changes in historical and current collection trends and changes in payor behavior. Additionally, we tested management’s supporting calculations. We also performed an evaluation of actual cash collections versus expectations to assess the accuracy of prior estimates. Goodwill Impairment Assessment – Women’s Health and Mental Health Reporting Units Description of the Matter As described in Notes 1 and 4 to the consolidated financial statements, the Company performs an annual goodwill impairment assessment as of the first day of the fourth quarter, or more frequently if indicators of impairment are present or circumstances suggest that impairment may exist. The Company’s consolidated goodwill balance was $51.6 million as of December 31, 2025, and the goodwill allocated to the Women’s Health and Mental Health reporting units was $4.5 million and $29.8 million, respectively. In the second quarter of 2025, primarily due to sustained declines in the Company’s share price, management performed an interim quantitative goodwill impairment assessment. This assessment involved the comparison of the fair value of each reporting unit to its carrying value. In estimating the fair value of the reporting units, the Company used a combination of an income approach (discounted cash flow model) and a market approach (multiples of revenue derived from guideline public companies). The fair value estimates required the Company to make several business and valuation assumptions and estimates, including, but not limited to, those related to the discount rates. Changes in the discount rates could have a material effect on either the reporting units’ fair values, the amount of any goodwill impairment charge, or both. The Company determined that the Women’s Health and Mental Health reporting units’ carrying values exceeded their respective fair values, resulting in a goodwill impairment charge of $234.7 million. Auditing the discount rates used in the Company’s interim quantitative goodwill impairment assessment specific to the Women’s Health and Mental Health reporting units was complex because it required a high degree of auditor judgement and an increased extent of effort, including the need to involve professionals with specialized skill and knowledge. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over management’s interim goodwill impairment assessment review process, including the determination of the discount rates used in the discounted cash flow models to estimate the fair value of each reporting unit. To test the reasonableness of the discount rates used in estimating the fair values of the Company’s reporting units, we performed audit procedures with the assistance of professionals with specialized skill and knowledge that included sensitivity analyses, testing applicable source information underlying the determination of the discount rates, testing the mathematical accuracy of the calculations, and developing independent estimates which were compared to the discount rates selected by management. /s/ Ernst & Young LLP We have served as the Company’s auditor since 2006. Salt Lake City, Utah February 24, 2026 78 Table of Contents MYRIAD GENETICS, INC. AND SUBSIDIARIES Consolidated Balance Sheets (in millions, except per share amounts) December 31, 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 149.6 $ 102.4 Trade accounts receivable 115.3 121.2 Inventory 30.6 27.5 Prepaid taxes 12.0 16.4 Prepaid expenses and other current assets 25.1 30.5 Total current assets 332.6 298.0 Operating lease right-of-use assets 49.4 55.0 Property, plant and equipment, net 114.0 117.4 Intangible assets, net 153.4 262.4 Goodwill 51.6 286.3 Other assets 5.6 8.5 Total assets $ 706.6 $ 1,027.6 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 30.0 $ 32.3 Accrued liabilities 96.9 119.0 Current maturities of operating lease liabilities 6.9 12.8 Total current liabilities 133.8 164.1 Unrecognized tax benefits 0.2 32.7 Long-term debt 119.9 39.6 Noncurrent operating lease liabilities 83.0 87.9 Other long-term liabilities 1.7 2.2 Total liabilities 338.6 326.5 Commitments and contingencies Stockholders’ equity: Common stock, $ 0.01 par value, 93.5 and 91.3 shares outstanding at December 31, 2025, and 2024, respectively 0.9 0.9 Additional paid-in capital 1,489.0 1,457.8 Accumulated other comprehensive income (loss) 0.8 ( 0.8 ) Accumulated deficit ( 1,122.7 ) ( 756.8 ) Total stockholders' equity 368.0 701.1 Total liabilities and stockholders’ equity $ 706.6 $ 1,027.6 See accompanying notes to consolidated financial statements. 79 Table of Contents MYRIAD GENETICS, INC. AND SUBSIDIARIES Consolidated Statements of Operations (in millions, except per share amounts) Years Ended December 31, 2025 2024 2023 Revenue $ 824.5 $ 837.6 $ 753.2 Cost of revenue 247.9 252.2 236.2 Gross profit 576.6 585.4 517.0 Operating expenses: Research and development expense 106.8 113.4 88.7 Sales and marketing expense 280.8 284.1 289.2 General and administrative expense 256.8 275.9 283.7 Legal settlements — ( 21.3 ) 112.8 Goodwill and long-lived asset impairment charges 319.4 56.8 — Total operating expenses 963.8 708.9 774.4 Operating loss ( 387.2 ) ( 123.5 ) ( 257.4 ) Other income (expense): Interest income 1.8 1.7 2.5 Interest expense ( 10.5 ) ( 2.8 ) ( 2.9 ) Other 0.8 1.1 ( 4.4 ) Total other expense ( 7.9 ) — ( 4.8 ) Loss before income tax ( 395.1 ) ( 123.5 ) ( 262.2 ) Income tax (benefit) expense ( 29.2 ) 3.8 1.1 Net loss $ ( 365.9 ) $ ( 127.3 ) $ ( 263.3 ) Net loss per share: Basic and diluted $ ( 3.95 ) $ ( 1.41 ) $ ( 3.18 ) Weighted average shares outstanding: Basic and diluted 92.6 90.6 82.8 See accompanying notes to consolidated financial statements. 80 Table of Contents MYRIAD GENETICS, INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Loss (in millions) Years Ended December 31, 2025 2024 2023 Net loss attributable to Myriad Genetics, Inc. stockholders $ ( 365.9 ) $ ( 127.3 ) $ ( 263.3 ) Change in unrealized loss on available-for-sale debt securities, net of tax — 0.1 1.2 Change in foreign currency translation adjustment, net of tax 0.8 ( 3.0 ) 2.1 Reclassification adjustments for losses included in net loss, net of tax — — 1.5 Reclassification of cumulative translation adjustment to income upon sale or liquidation of certain foreign entities, net of tax 0.8 5.8 0.4 Comprehensive loss $ ( 364.3 ) $ ( 124.4 ) $ ( 258.1 ) See accompanying notes to consolidated financial statements. 81 Table of Contents MYRIAD GENETICS, INC. AND SUBSIDIARIES Consolidated Statements of Stockholders’ Equity (in millions) Common stock Additional paid-in capital Accumulated other comprehensive income (loss) Accumulated deficit Myriad Genetics, Inc. Stockholders’ equity BALANCES AT DECEMBER 31, 2022 $ 0.8 $ 1,260.1 $ ( 8.9 ) $ ( 366.2 ) $ 885.8 Issuance of common stock under stock-based compensation plans, net of shares exchanged for withholding tax — ( 2.8 ) — — ( 2.8 ) Issuance of common stock for public offering, net 0.1 117.5 — — 117.6 Stock-based compensation expense — 40.7 — — 40.7 Net loss — — — ( 263.3 ) ( 263.3 ) Other comprehensive income, net of tax — — 5.2 — 5.2 BALANCES AT DECEMBER 31, 2023 $ 0.9 $ 1,415.5 $ ( 3.7 ) $ ( 629.5 ) $ 783.2 Issuance of common stock under stock-based compensation plans, net of shares exchanged for withholding tax — ( 7.5 ) — — ( 7.5 ) Stock-based compensation expense — 49.8 — — 49.8 Net loss — — — ( 127.3 ) ( 127.3 ) Other comprehensive income, net of tax — — 2.9 — 2.9 BALANCES AT DECEMBER 31, 2024 $ 0.9 $ 1,457.8 $ ( 0.8 ) $ ( 756.8 ) $ 701.1 Issuance of common stock under stock-based compensation plans, net of shares exchanged for withholding tax — ( 4.0 ) — — ( 4.0 ) Stock-based compensation expense — 35.2 — — 35.2 Net loss — — — ( 365.9 ) ( 365.9 ) Other comprehensive income, net of tax — — 1.6 — 1.6 BALANCES AT DECEMBER 31, 2025 $ 0.9 $ 1,489.0 $ 0.8 $ ( 1,122.7 ) $ 368.0 See accompanying notes to consolidated financial statements. 82 Table of Contents MYRIAD GENETICS, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (in millions) Years Ended December 31, 2025 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ ( 365.9 ) $ ( 127.3 ) $ ( 263.3 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 53.7 61.2 61.9 Non-cash lease expense 7.7 9.5 11.3 Stock-based compensation expense 35.2 49.8 40.7 Deferred income taxes 0.1 ( 2.8 ) ( 4.0 ) Unrecognized tax benefits ( 32.5 ) 2.5 3.4 Impairment of goodwill and long-lived assets 319.4 56.6 — (Gain) loss on termination of lease — ( 3.1 ) 7.7 Gain on acquisition — ( 2.2 ) — Other non-cash adjustments 3.4 1.5 4.4 Changes in assets and liabilities: Prepaid expenses and other current assets 0.2 ( 3.7 ) 0.2 Trade accounts receivable 6.2 ( 8.7 ) ( 12.5 ) Inventory ( 3.2 ) ( 6.2 ) ( 1.8 ) Prepaid taxes 4.4 0.5 0.7 Other assets 2.0 — 0.6 Tenant improvement allowance received — — 16.3 Accounts payable ( 1.4 ) 4.7 ( 3.7 ) Accrued liabilities ( 27.5 ) ( 41.0 ) 27.2 Net cash provided by (used in) operating activities 1.8 ( 8.7 ) ( 110.9 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures ( 15.6 ) ( 19.0 ) ( 63.2 ) Capitalization of intangible assets ( 11.8 ) ( 10.7 ) ( 10.1 ) Proceeds from the sale of business, net cash sold — 8.8 — Proceeds from maturities and sales of marketable investment securities — 9.0 105.2 Net cash (used in) provided by investing activities ( 27.4 ) ( 11.9 ) 31.9 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from common stock issued under stock-based compensation plans 3.3 5.9 6.0 Payment of tax withheld for common stock issued under stock-based compensation plans ( 7.3 ) ( 13.4 ) ( 8.8 ) Proceeds from underwritten public offering, net of costs and discounts — — 117.6 Proceeds from revolving credit facility 40.0 120.0 80.0 Repayment of revolving credit facility ( 80.5 ) ( 119.5 ) ( 40.0 ) Proceeds from the issuance of secured long-term credit facility 125.0 — — Fees associated with the issuance of secured long-term credit facility ( 8.6 ) — — Fees associated with issuance and refinancing of revolving credit facility — — ( 1.7 ) Release of cash held in escrow ( 7.5 ) — — Other financing activities ( 0.2 ) ( 0.4 ) ( 0.2 ) Net cash provided by (used in) financing activities 64.2 ( 7.4 ) 152.9 Effect of foreign exchange rates on cash, cash equivalents, and restricted cash 0.8 ( 1.0 ) 0.6 Net increase (decrease) in cash, cash equivalents, and restricted cash 39.4 ( 29.0 ) 74.5 Cash, cash equivalents, and restricted cash at beginning of the period 111.9 140.9 66.4 Cash, cash equivalents, and restricted cash at end of the period $ 151.3 $ 111.9 $ 140.9 See accompanying notes to the consolidated financial statements. 83 Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Financial Statement Presentation Myriad Genetics, Inc. (together with its subsidiaries, the "Company" or "Myriad") is a leading molecular diagnostics and precision medicine company committed to advancing health and well-being for all. Myriad develops and commercializes molecular tests that help patients and providers uncover genetic insights. Myriad tests assess the risk of developing disease or disease progression and guide treatment decisions across medical specialties where molecular insights can significantly improve patient care, support earlier detection, enable more precise treatment and contribute to lowering health care costs. The Company’s principal executive office is located in Salt Lake City, Utah. The accompanying consolidated financial statements for the Company have been prepared in accordance with United States ("U.S.") generally accepted accounting principles (“GAAP”) for financial information and pursuant to the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). All intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, the accompanying financial statements contain all adjustments (consisting of normal and recurring accruals) necessary to present fairly all financial statements in accordance with GAAP. Use of Estimates The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates and assumptions include revenue recognition estimates for the average expected reimbursement per test, valuation allowances for deferred income tax assets, our incremental borrowing rates used to calculate our lease balances, stock-based compensation, and impairment analysis of goodwill and long-lived assets. Actual results could differ from those estimates. Reclassifications Certain prior period amounts have been reclassified to conform with the current period presentation. The reclassifications have no impact on the total assets, total liabilities, stockholders' equity, or cash flows from operations. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company limits its exposure to loss by placing its cash in financial institutions with high credit ratings. The Company's cash consists of deposits held with banks that generally exceed federally insured limits of $250,000 per customer. Substantially all of the Company’s accounts receivable are with companies in the healthcare industry, U.S. and state governmental agencies, and individuals. The Company does not believe that receivables due from U.S. and state governmental agencies, such as Medicare, represent a credit risk since the related health care programs are funded by the U.S. and state governments. The Company does not require collateral from its customers. The Company has one payor, Medicare, that represents greater than 10% of its revenues. Revenues received from Medicare represented approximately 13 %, 12 %, and 12 % of total revenue for the years ended December 31, 2025, 2024, and 2023, respectively. Concentrations of credit risk are mitigated due to the number of the Company’s customers as well as their dispersion across many geographic regions. The Company has one payor that accounted for more than 10% of accounts receivable at December 31, 2025 and 2024. The balance of accounts receivable from the payor represented 13 % and 18 % of the total accounts receivable balance as of December 31, 2025 and 2024, respectively. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents primarily consist of cash and money market deposits with financial institutions. 84 Table of Contents Restricted Cash In certain circumstances, the Company is required to maintain cash deposits with certain banks with respect to contractual or other legal obligations, and therefore the use of these cash deposits for general operational purposes is restricted. Restricted cash is classified as current or noncurrent on the Consolidated Balance Sheets based on the nature and timing of the underlying restriction. Restricted cash is excluded from Cash and cash equivalents and is presented in Prepaid expenses and other current assets on the Consolidated Balance Sheets. For purposes of the Consolidated Statements of Cash Flows, changes in restricted cash are included in total cash, cash equivalents, and restricted cash. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Consolidated Balance Sheets that agrees to the amounts included in the Consolidated Statement of Cash Flows. December 31, (in millions) 2025 2024 2023 Cash and cash equivalents $ 149.6 $ 102.4 $ 132.1 Restricted cash 1.7 9.5 8.8 Total cash, cash equivalents, and restricted cash $ 151.3 $ 111.9 $ 140.9 Inventory Inventories consist of supplies such as reagents, plates, and testing kits, which are consumed when providing test results, and therefore the Company does not maintain finished goods inventory. Inventories are stated at the lower of cost or net realizable value. Cost is computed using standard cost, which approximates actual cost on a first-in first-out basis. The Company evaluates its inventories for excess quantities and obsolescence. Inventories that are considered excess or obsolete are expensed. In order to assess the ultimate realization of inventories, the Company is required to make judgments as to future demand requirements compared to current or committed inventory levels. Trade Accounts Receivable Trade accounts receivable represents estimated receivables from customers for revenue recognized related to the Company's tests. Property, Plant and Equipment Equipment and leasehold improvements are stated at cost less accumulated depreciation. Depreciation and amortization are computed using the straight-line method based on the lesser of estimated useful lives of the related assets or lease terms. Equipment items have depreciable lives of three to seven years . Leasehold improvements are depreciated over the shorter of the estimated useful lives or the associated lease terms, which range from three to 15 years. Repairs and maintenance costs are charged to expense as incurred. Leases The Company acts as the lessee in its lease agreements, which primarily include operating leases for corporate offices, laboratory space, warehouse space, and office equipment. The Company determines whether an arrangement is, or contains, a lease at inception and whether the lease should be classified as a finance or operating lease. For all leases, the Company records the present value of lease payments as right-of-use (“ROU”) assets and lease liabilities on the Consolidated Balance Sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments based on the present value of lease payments over the lease term. Classification of lease liabilities as either current or non-current is based on the expected timing of payments due under the Company’s obligations. 85 Table of Contents As most of the Company’s leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU asset also consists of any lease incentives received. The lease terms used to calculate the ROU asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The leases have remaining lease terms of one year to 13 years, some of which include options to extend the lease term for up to 10 years. The Company has taken advantage of certain practical expedients offered to registrants at adoption of Accounting Standards Codification ("ASC") 842, Leases . Lease expense for leases with a term of 12 months or less is recognized on a straight-line basis and is not included in the recognized ROU assets and lease liabilities. Further, as a practical expedient, all lease contracts are accounted for as one single lease component, as opposed to separating lease and non-lease components to allocate the consideration within a single lease contract. Operating leases are included in Operating lease right-of-use assets, Current maturities of operating lease liabilities, and Noncurrent operating lease liabilities in the Consolidated Balance Sheets. Finance leases are included in Other assets, Accrued liabilities, and Other long-term liabilities in the Consolidated Balance Sheets. Intangible Assets Intangible assets are primarily comprised of acquired licenses and technology. Acquired intangible assets are recorded at fair value and amortized over the shorter of the contractual life or the estimated useful life. The Company capitalizes certain costs incurred to develop internal-use software. Implementation and development costs for internal-use software are capitalized as part of Intangible assets in the Consolidated Balance Sheets. After the implementation of the internal-use software, the capitalized costs are amortized on a straight-line basis over the estimated useful life of the asset. Costs incurred during the post implementation stage of the project are expensed as incurred. As of December 31, 2025 and 2024, the Company had unamortized internal-use software costs of $ 25.1 million and $ 22.7 million, respectively. For the years ended December 31, 2025, 2024, and 2023, amortization expense for these capitalized software costs was immaterial. Other Long-Lived Assets The Company continually reviews and monitors long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such indicators are present, the Company performs a recoverability test by comparing the estimated undiscounted future cash flows expected to be generated by the asset or asset group to its carrying amount. If the carrying amount of an asset or asset group exceeds its estimated future undiscounted cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset or asset group. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Goodwill Goodwill is tested for impairment by reporting unit on an annual basis as of October 1 and in the interim if events and circumstances indicate that goodwill may be impaired. The events and circumstances that are considered include business climate and market conditions, legal factors, operating performance indicators, and competition. Impairment of goodwill is first assessed using a qualitative approach. If the qualitative assessment suggests that impairment is more likely than not, a quantitative analysis is performed. The quantitative analysis involves a comparison of the fair value of the reporting unit with its carrying amount. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. If an event occurs that would cause a revision to the estimates and assumptions used in analyzing the value of the goodwill, the revision could result in a non-cash impairment charge that could have a material impact on the financial results. Revenue Recognition The Company primarily generates revenue by performing molecular testing, primarily derived from the following categories of products: Hereditary Cancer (MyRisk and BRACAnalysis CDx), Tumor Profiling (MyChoice CDx, Prolaris, Precise Tumor, and EndoPredict), Prenatal (Foresight, Prequel, FirstGene and SneakPeek), and Mental Health (GeneSight). Revenue is recorded at the estimated transaction price. Control is transferred, and revenue is recognized, once test results are released to the healthcare provider and/or patient. 86 Table of Contents The following table presents details regarding the composition of the Company’s total revenue by product type for the years ended December 31, 2025, 2024, and 2023: Years Ended December 31, (In millions) 2025 2024 2023 Hereditary Cancer $ 372.4 $ 364.5 $ 327.8 Tumor Profiling 121.7 125.8 135.6 Prenatal 186.3 177.1 151.3 Mental Health 144.1 170.2 138.5 Total revenue $ 824.5 $ 837.6 $ 753.2 In addition, the following tables reconcile revenue by geographical region, either U.S. or rest of world ("RoW"), to total revenue: Years Ended December 31, 2025 2024 2023 (in millions) U.S. RoW Total U.S. RoW Total U.S. RoW Total Hereditary Cancer $ 327.8 $ 44.6 $ 372.4 $ 318.6 $ 45.9 $ 364.5 $ 280.5 $ 47.3 $ 327.8 Tumor Profiling 109.8 11.9 121.7 104.2 21.6 125.8 102.1 33.5 135.6 Prenatal 186.3 — 186.3 176.5 0.6 177.1 150.6 0.7 151.3 Mental Health 144.1 — 144.1 170.2 — 170.2 138.5 — 138.5 Total revenue $ 768.0 $ 56.5 $ 824.5 $ 769.5 $ 68.1 $ 837.6 $ 671.7 $ 81.5 $ 753.2 Under ASC 606, Revenue from Contracts with Customers (“ASC 606”), an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company performs its obligation under a contract with a customer by processing tests and releasing the test results to customers, in exchange for consideration from the customer. The Company has the right to bill its customers upon the completion of performance obligations and thus does not record contract assets. In accordance with ASC 606, the Company has elected not to disclose the aggregate amount of the transaction price allocated to remaining performance obligations for its contracts that are one year or less, as the revenue is expected to be recognized within the next year. Furthermore, the Company has elected not to disclose the aggregate amount of the transaction price allocated to remaining performance obligations for its agreements wherein the Company’s right to payment is in an amount that directly corresponds with the value of the Company’s performance to date. In determining the transaction price, the Company includes an estimate of the expected amount of consideration to be received. The Company applies this method consistently for similar contracts when estimating the effect of any uncertainty on an amount of variable consideration to which it will be entitled. An estimate of transaction price does not include any estimated amount of variable consideration that is constrained. In addition, the Company considers all the information (historical, current, and forecast) that is reasonably available to identify possible consideration amounts. The Company also has significant experience with historical discount patterns and uses this experience to estimate transaction prices. The estimate of revenue is affected by, among other factors, assumptions for changes in payor mix, payor collections, current customer contractual requirements, experience with collections from third-party payors, and changes in medical policies. When assessing the total consideration for insurance carriers and patients, revenues are further constrained for estimated refunds. The Company reserves certain amounts in Accrued liabilities in the Consolidated Balance Sheets in anticipation of requests for refunds of payments made previously by insurance carriers, which are accounted for as reductions in revenue in the Consolidated Statements of Operations and Comprehensive Loss. 87 Table of Contents Cash collections for certain tests delivered may differ from rates estimated due to changes in the estimated transaction price for contractual adjustments, obtaining updated information from payors and patients that was unknown at the time the performance obligation was met, settlements with third-party payors, or as a result of third-party payors disputing our bills or denying payment for tests that we have performed, among other reasons. As a result of this new information, the Company updates its estimate of the amounts to be recognized for previously delivered tests. For the year ended December 31, 2025, revenue for tests in which the performance obligation was met in a prior period was immaterial . For the year ended December 31, 2024, the Company recognized $ 21.5 million in revenue for tests in which the performance obligation of delivering the test results was met in prior periods, including $ 3.0 million in revenue in the first quarter of 2024 due to a retroactive coverage change by a payor for one of its prenatal products. For the year ended December 31, 2023, the Company recognized $ 7.2 million in revenue for tests in which the performance obligation of delivering the test results was met in prior periods. The changes for all periods presented were primarily driven by changes in the estimated transaction price. In accordance with ASC 606, the Company has elected to exclude from the measurement of transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer for sales tax, value added tax, and certain other taxes. The Company applies the practical expedient related to costs to obtain or fulfill a contract since the amortization period for such costs will be one year or less. Accordingly, no costs incurred to obtain or fulfill a contract have been capitalized. Advertising Costs The Company expenses advertising costs as incurred. The Company incurred advertising costs of $ 10.1 million, $ 10.3 million, and $ 8.5 million for the years ended December 31, 2025, 2024, and 2023, respectively. Stock-based Payment Expense We recognize the fair value compensation cost relating to stock-based payment transactions in accordance with ASC 718, Compensation – Stock Compensation ("ASC 718"). Under the provisions of ASC 718, stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized over the employee’s requisite service period, which is generally the vesting period. Compensation cost for awards with only service conditions are recognized on a straight-line basis over the requisite service period. The fair value of restricted stock units ("RSUs") and performance restricted stock units ("PSUs") that do not have market conditions is based on the number of shares granted and the quoted price of the Company’s common stock on the grant date. The fair value of PSU awards that have market conditions is determined using the Monte Carlo Method. For PSUs, t he Company estimates the likelihood of achievement of the performance conditions at the end of each period. Forfeitures are recognized as a reduction of compensation expense in earnings in the period in which they occur. The fair value of shares issued under the Company's Employee Stock Purchase Plan is calculated using the Black-Scholes option-pricing model, based on assumptions including the risk-free interest rate, expected life, expected dividend yield and expected volatility. The average risk-free interest rate is determined using the U.S. Treasury rate. We determine the expected life based on the offering period of the Employee Stock Purchase Plan. The expected volatility is determined using the weighted average of daily historical volatility of the price of the Company's common stock. Income Taxes The Company recognizes income taxes under the asset and liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. The provision for income taxes, including the effective tax rate and analysis of potential tax exposure items requires significant judgment and expertise in federal, state, and foreign income tax laws, regulations and strategies, including the determination of deferred tax assets and liabilities and any estimated valuation allowances deemed necessary to recognize deferred tax assets at an amount that is more likely than not to be realized. The Company’s filings, including the positions taken therein, are subject to audit by various taxing authorities. While the Company believes it has provided adequately for its income tax liabilities in the Consolidated Financial Statements, adverse determinations by these taxing authorities could have a material adverse effect on the Company's consolidated financial condition, results of operations, or cash flows. 88 Table of Contents Earnings Per Share Basic earnings per share ("EPS") is computed based on the weighted-average number of shares of common stock outstanding. Diluted earnings per share is computed based on the weighted-average number of shares of common stock, including the dilutive effect of common stock equivalents, outstanding. The following is a reconciliation of the denominators of the basic and diluted earnings per share computations: Years Ended December 31, (in millions) 2025 2024 2023 Denominator: Weighted-average shares outstanding used to compute basic EPS 92.6 90.6 82.8 Effect of dilutive stock options and RSUs — — — Weighted-average shares outstanding and dilutive securities used to compute diluted EPS 92.6 90.6 82.8 Certain outstanding options and RSUs were excluded from the computation of diluted earnings per share because the effect would have been anti-dilutive. These potential dilutive shares of common stock, which may be dilutive to future diluted earnings per share, are as follows: Years Ended December 31, (in millions) 2025 2024 2023 Anti-dilutive options and RSUs excluded from EPS computation 7.8 6.0 5.1 Recent Accounting Pronouncements Recently Adopted Standards In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 amends ASC 740, Income Taxes to expand income tax disclosures and requires that the Company disclose (i) the income tax rate reconciliation using both percentages and reporting currency amounts; (ii) specific categories within the income tax rate reconciliation; (iii) additional information for reconciling items that meet a quantitative threshold; (iv) the composition of state and local income taxes by jurisdiction; and (v) the amount of income taxes paid disaggregated by jurisdiction. The Company adopted ASU 2023-09 for the year ended December 31, 2025 on a prospective basis. See Note 9. Income Taxes for additional information. Standards Effective in Future Years and Not Yet Adopted In September 2025, the FASB issued ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract. The guidance in ASU 2025-07 refines the scope of derivative accounting under ASC 815 by expanding an existing scope exception to exclude certain non-exchange traded contracts with underlyings based on the operations or activities of one of the contract parties from derivative classification. The ASU also provides guidance under Topic 606 on the accounting for share-based noncash consideration received from a customer in a revenue contract, including measurement and timing considerations. ASU 2025-07 is effective for annual and interim periods beginning after December 15, 2026, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-07. In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software , which amends certain aspects of the accounting for and disclosure of software costs under ASC 350-40, Internal-Use Software Accounting & Capitalization . ASU 2025-06 makes targeted improvements to ASC 350-40 by changing the cost capitalization threshold, eliminating accounting consideration of software project development stages and enhancing the guidance around the "probable-to-complete" threshold. It also modifies the website development costs guidance by eliminating Subtopic 350-50 and relocating any remaining relevant guidance into Subtopic 350-40. ASU 2025-06 is effective for annual and interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-06. 89 Table of Contents In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses , requiring public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2024-03. 2. FAIR VALUE MEASUREMENTS The fair value of the Company’s financial instruments reflects the amounts that the Company estimates it will receive in connection with the sale of an asset or pay in connection with the transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). The fair value hierarchy prioritizes the use of inputs used in valuation techniques into the following three levels: Level 1—quoted prices in active markets for identical assets and liabilities. Level 2—observable inputs other than quoted prices in active markets for identical assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—unobservable inputs. The carrying amounts of certain financial instruments—including Cash and cash equivalents, Trade accounts receivable, Accounts payable, and Accrued expenses—approximate their fair values due to their short-term maturities. Additionally, the carrying value of the Company's Long-term debt as of December 31, 2025, approximates its fair value as the debt’s floating interest rate is consistent with prevailing market rates. The Company's fair value measurements related to impairment testing for goodwill and certain intangible assets were determined using Level 3 unobservable inputs; see Note 4. Goodwill and Intangible assets for further discussion. 3. PROPERTY, PLANT AND EQUIPMENT, NET The property, plant and equipment were as follows: December 31, (in millions) 2025 2024 Leasehold improvements $ 80.4 $ 78.5 Equipment 121.5 148.5 Property, plant and equipment, gross 201.9 227.0 Less accumulated depreciation ( 87.9 ) ( 109.6 ) Property, plant and equipment, net $ 114.0 $ 117.4 The Company recorded depreciation during the respective periods as follows: Years Ended December 31, (in millions) 2025 2024 2023 Depreciation expense $ 19.5 $ 19.5 $ 19.1 90 Table of Contents 4. GOODWILL AND INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill for the year ended December 31, 2025 are as follows: December 31, (in millions) 2025 Beginning balance $ 286.3 Goodwill impairment ( 234.7 ) Ending balance $ 51.6 During the quarter ended June 30, 2025, the Company identified a triggering event that required an interim goodwill impairment assessment. The Company experienced a sustained decline in its market capitalization, due in part to downward revisions to the Company's forecasts. In response to the triggering event, the Company estimated the fair values of each of its reporting units using both the market approach, applying an observable multiple of revenue based on guideline public companies, and the income approach, as of May 2025. The income approach considered projected revenue and profitability of each reporting unit and a discount rate reflective of the risk-adjusted cost of capital of 17.0 % and 16.0 % for the Mental Health and the Women's Health reporting units, respectively. The Company corroborated the reasonableness of the estimated reporting unit fair values by reconciling the values to its enterprise value and market capitalization, including the consideration of a control premium. Accordingly, this fair value measurement is classified as Level 3 in the fair value hierarchy because it is based primarily upon unobservable inputs that reflect management's assumptions. As a result of the assessment, during the quarter ended June 30, 2025, the Company recognized a goodwill impairment charge of $ 234.7 million, with $ 91.2 million attributable to the Mental Health reporting unit and $ 143.5 million attributable to the Women’s Health reporting unit, reducing the carrying value of goodwill for these reporting units to their estimated fair values. The Company determined that the goodwill balance for the International reporting unit was not impaired. The goodwill impairment charges are reflected in Goodwill and long-lived asset impairment charges in the Consolidated Statements of Operations. The remaining goodwill value of $ 51.6 million consists of $ 29.8 million for the Mental Health, $ 17.3 million for the International and $ 4.5 million for the Women's Health reporting units. The Company recognized a goodwill impairment charge of $ 0.8 million for the year ended December 31, 2024 and did no t record an impairment of goodwill for the year ended December 31, 2023. Intangible Assets The following tables summarize the amounts reported as intangible assets: (in millions) Gross Carrying Amount (1) Accumulated Amortization Net Weighted-Average Useful Life (in Years) Weighted-Average Remaining Useful Life (in Years) At December 31, 2025 Developed technologies $ 475.9 $ ( 352.2 ) $ 123.7 11.6 4.7 Internal-use software 21.9 ( 4.3 ) 17.6 4.8 4.0 Trademarks 2.1 ( 1.6 ) 0.5 7.5 6.9 Licensed technologies 4.5 ( 0.4 ) 4.1 8.0 7.2 Internal-use software (in-process) 7.5 — 7.5 Total intangible assets $ 511.9 $ ( 358.5 ) $ 153.4 (1) Net of impairment expense recognized during the year ended December 31, 2025. See the discussion below for further details regarding the impairment of intangible assets. 91 Table of Contents (in millions) Gross Carrying Amount Accumulated Amortization Net Weighted-Average Useful Life (in Years) Weighted-Average Remaining Useful Life (in Years) At December 31, 2024 Developed technologies $ 560.1 $ ( 326.5 ) $ 233.6 10.6 3.6 Internal-use software 1.8 ( 0.7 ) 1.1 3.0 1.9 Customer relationships 1.6 ( 0.3 ) 1.3 10.0 7.8 Trademarks 6.1 ( 1.3 ) 4.8 10.0 7.8 Internal-use software (in-process) 21.6 — 21.6 Total intangible assets $ 591.2 $ ( 328.8 ) $ 262.4 As noted above, the Company experienced a sustained decline in its market capitalization during the quarter ended June 30, 2025, which triggered the Company to perform a recoverability test for certain of its asset groups . The Company performed the recoverability test by comparing the carrying value of each asset group to its estimated undiscounted future cash flows. The analysis indicated that the carrying value exceeded the recoverable amounts for the Company's Mental Health and Gateway asset groups, requiring the Company to determine the fair value of each asset group. As a result of the tests performed, the Company recognized impairment expense totaling $ 82.0 million related to the Mental Health and Gateway intangible asset groups. The fair value of the Mental Health developed technology was determined using a discounted cash flow model and the fair value of the Gateway intangible assets was determined using a discounted cash flow model and relief from royalty models. The primary assumptions used in the discounted cash flow models included projected revenue and profitability associated with the developed technology based on management's forecast and a discount rate reflective of the risk-adjusted cost of capital of 17 % and 16 % for the Mental Health and Gateway intangible asset groups, respectively. The primary assumptions used in the relief from royalty models were projected revenue and royalty rates. As the carrying value for the intangible assets exceeded the relative fair value, the Company recognized an impairment charge of $ 71.8 million and $ 10.2 million for the Mental Health and Gateway intangible asset groups, respectively, during the year ended December 31, 2025. These expenses are included in Goodwill and long-lived asset impairment charges in the Consolidated Statements of Operations. The fair value measurements for the impairment of intangible assets are classified as Level 3 in the fair value hierarchy because they are based primarily upon unobservable inputs that reflect management's assumptions. In recent years, the Company has invested in the development of internal-use software. As of December 31, 2025, the Company has capitalized $ 7.5 million related to projects under development. The Company expects the majority of the current in-process internal-use software projects to be completed in fiscal year 2026. As of December 31, 2025, the Company's developed technologies have estimated remaining useful lives ranging between four and eight years . The Company's acquired trademarks have an estimated remaining useful life of approximately seven years as of December 31, 2025. The Company's licensed technology has an estimated remaining useful life of approximately seven years as of December 31, 2025. The Company's internal-use software assets are amortized over the estimated useful life of the software, generally ranging between three and five years as of December 31, 2025. The Company recorded amortization during the respective periods for intangible assets as follows: Years Ended December 31, (in millions) 2025 2024 2023 Amortization of intangible assets $ 34.7 $ 42.1 $ 42.8 92 Table of Contents Future amortization expense of intangible assets as of December 31, 2025 is estimated to be as follows (in millions): Years Ended December 31, Amortization Expense 2026 $ 31.4 2027 30.9 2028 30.4 2029 30.3 2030 17.7 Thereafter 12.7 Total $ 153.4 5. ACCRUED LIABILITIES Accrued liabilities consist of the following: December 31, (in millions) 2025 2024 Employee compensation and benefits $ 51.2 $ 57.4 Accrued taxes payable 5.7 5.1 Refunds payable and reserves 19.9 19.9 Accrued royalties 4.7 6.5 Escrow liability — 7.5 Other accrued liabilities 15.4 22.6 Total accrued liabilities $ 96.9 $ 119.0 Revenue is constrained in anticipation of requests for refunds of payments made previously by insurance carriers. The following table summarizes the balance and activity of the refunds payable and reserves for the years ended December 31, 2025 and 2024: Years Ended December 31, (in millions) 2025 2024 Beginning balance $ 19.9 $ 20.1 Recoupments paid ( 7.3 ) ( 11.3 ) Additions to the reserve 7.3 11.1 Ending balance $ 19.9 $ 19.9 6. LONG-TERM DEBT The Company's long-term debt at December 31, 2025 consisted of the following amounts: Years Ended December 31, (in millions) 2025 2024 Long-term debt $ 125.0 $ 40.5 Accrued exit fee 3.8 — Unamortized debt discount and issuance costs ( 8.9 ) ( 0.9 ) Total Long-term debt, net $ 119.9 $ 39.6 93 Table of Contents On July 31, 2025 (the "Closing Date"), the Company entered into a Credit Agreement (the "Credit Agreement") with the lenders from time to time party thereto, and OrbiMed Royalty & Credit Opportunities IV, LP, as administrative agent (the "Administrative Agent") and as initial lender. The Credit Agreement consists of a $ 200 million term loan credit facility with an initial term loan of $ 125.0 million (the "Initial Loan"), which amount was funded on the Closing Date, and delayed draw term loans (the "Delayed Draw Loans" and together with the Initial Loan, the "Loans"), at the election of the Company, subject to the timing and terms specified in the Credit Agreement, on or prior to June 30, 2027, in a maximum principal amount of $ 75.0 million (the "Credit Facility"). The Company incurred debt discounts and issuance costs totaling $ 9.4 million. These costs are being amortized using the effective interest method. On January 5, 2026, the Company and the Administrative Agent entered into the First Amendment to Credit Agreement for certain cash management matters. The proceeds of the Credit Facility were or will be used for the working capital needs and general corporate purposes of the Company and its subsidiaries. Concurrent with the new Credit Facility, the Company used $ 60.2 million of the proceeds to repay its previous debt facility, an asset-based revolving credit facility (the “ABL Facility”), in full and terminated the ABL Facility agreement. The Credit Facility matures on July 31, 2030 (the "Maturity Date"). All repayments are subject to the accrued exit fee. The Company may also elect to prepay all or any portion of the amounts owed prior to the Maturity Date subject to a repayment premium, in addition to the exit fee. Loans outstanding under the Credit Facility bear interest at a rate per annum equal to (x) the greater of the one-month Secured Overnight Financing Rate (SOFR) Rate and 2.5 % plus (y) an applicable margin of 6.5 %. Commencing on September 30, 2029, and on the last business day of each fiscal quarter thereafter, the Company is required to make a scheduled principal payment equal to 2.5 % of the unpaid principal amount of the loans outstanding on the fourth anniversary of the Closing Date, together with any applicable exit fee and repayment premium. Any undrawn portion of the Delayed Draw Loans is subject to a fee of 0.5 % per annum, payable each interest period, through June 30, 2027. The interest rate for borrowings under the Credit Agreement as of December 31, 2025 was 10.4 %. The Credit Facility is also subject to customary mandatory prepayments with the proceeds of indebtedness and certain asset sales and casualty events. In addition to the exit fee and repayment premium referenced above, voluntary and mandatory prepayments and all other payments of the Credit Facility must also be accompanied by payment of accrued interest on the principal amount repaid or prepaid. The Credit Facility is also subject to other customary fee arrangements. The obligations of the Company are guaranteed by certain of the Company’s material subsidiaries (the “Credit Facility Guarantors”) pursuant to a Guarantee. The obligations of the Company and the Credit Facility Guarantors under the Credit Agreement and Guarantee are secured by substantially all of the assets of the Company and the Credit Facility Guarantors under a Pledge and Security Agreement entered into with the Administrative Agent. The Credit Facility requires the Company and its subsidiaries, on a consolidated basis, to comply with a minimum trailing twelve-month revenue test as of the end of each month, commencing with the month ending December 31, 2025 at $ 615 million and increasing quarterly to $ 974 million beginning on December 31, 2029 and thereafter. In addition, the Credit Facility contains customary representations and warranties and affirmative and negative covenants, including covenants that limit or restrict the Company and its subsidiaries’ ability to incur liens, incur indebtedness, dispose of assets, make investments, make certain restricted payments, merge or consolidate and enter into certain speculative hedging arrangements. The Credit Facility includes a number of customary events of default, including, among other things, nonpayment defaults, covenant defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency defaults, material judgment defaults and the occurrence of a change of control. If any event of default occurs (subject, in certain instances, to specified grace periods), the principal, premium, if any, interest and any other monetary obligations on all the then outstanding amounts under the Credit Facility may become due and payable immediately. The Company was in compliance with all applicable covenants under the Credit Agreement for the year ended December 31, 2025. The Company had long-term debt of $ 39.6 million under the ABL Facility at December 31, 2024, net of $ 0.9 million of debt issuance costs. 7. PREFERRED AND COMMON STOCKHOLDERS' EQUITY The Company is authorized to issue up to 5.0 million shares of preferred stock, par value $ 0.01 per share. There were no shares of preferred stock outstanding at December 31, 2025, and December 31, 2024. The Company is authorized to issue up to 150.0 million shares of common stock, par value $ 0.01 per share. 94 Table of Contents In November 2023, the Company completed an underwritten public offering in which it sold 7.4 million shares of its common stock at a price of $ 17.00 per share, for gross proceeds of $ 126.5 million and net proceeds of $ 117.6 million. There were 93.5 million and 91.3 million shares of common stock issued and outstanding at December 31, 2025, and 2024, respectively. Shares of common stock issued and outstanding Years Ended December 31, (in millions) 2025 2024 2023 Beginning common stock issued and outstanding 91.3 89.9 81.2 Common stock issued upon exercise of options, vesting of restricted stock units, and purchases under employee stock purchase plans 2.2 1.4 1.3 Common stock issued for public offering — — 7.4 Common stock issued and outstanding at end of period 93.5 91.3 89.9 8. STOCK-BASED COMPENSATION On November 30, 2017, the Company’s stockholders approved the adoption of the 2017 Employee, Director and Consultant Equity Incentive Plan (as amended, the “2017 Plan”). The 2017 Plan allows the Company, under the direction of the Compensation and Human Capital Committee (the "CHCC") of the Board of Directors, to make grants of restricted and unrestricted stock and stock unit awards to employees, consultants and directors. Stockholders have subsequently approved amendments to the 2017 Plan increasing the shares available to grant thereunder, including most recently at the Company's annual meeting of stockholders held on June 5, 2025, when stockholders approved an amendment to the 2017 Plan to increase the aggregate number of shares of common stock available thereunder for the granting of awards by an additional 6.5 million shares. As of December 31, 2025, the Company had 5.3 million shares of common stock available for grant under the 2017 Plan. If an RSU awarded under the 2017 Plan is cancelled or forfeited without the issuance of shares of common stock, the unissued shares that were subject to the RSU will again be available for issuance pursuant to the 2017 Plan. The number of shares, terms, and vesting periods are generally determined by the Company’s Board of Directors or the CHCC on an award-by-award basis. RSUs granted to employees generally vest either ratably over three or four years or as cliff vesting after three years either on the anniversary of the date on which the RSUs were granted or during the month in which such anniversary dates occur. The number of PSUs awarded to certain employees may be increased or reduced based on certain additional performance and market metrics. RSUs granted to non-employee directors generally vest in full upon the earlier of the completion of one year of service following the date of the grant or the date of the next annual meeting of stockholders following such grant. The performance and market conditions associated with PSU awards granted during the year ended December 31, 2025 include vesting that is based on revenue targets ( 34 % weighting), adjusted earnings per share targets ( 33 % weighting), and relative total stockholder return ( 33 % weighting) measured against the Nasdaq Health Care Index (IXHC) using the 20 -trading day averages at the beginning and end of the measurement period. The measurement period for the relative total stockholder return metric is January 1, 2025 through December 31, 2027, and the revenue and adjusted earnings per share metrics will be measured based on fiscal year 2027 results. The Company estimates the likelihood of achievement of performance conditions for all PSU awards at the end of each period. To the extent those awards or portions thereof are considered probable of being achieved, such awards or portions thereof are expensed over the performance period. The portion of the awards pertaining to relative total stockholder return represent market conditions and, accordingly, the estimated fair value of such awards is recognized over the performance period. During the year ended December 31, 2025, the Company granted stock-based awards to the Company's new Chief Commercial Officer as an inducement material to his commencement of employment and entry into an employment agreement with the Company. The inducement awards were made in accordance with Nasdaq Stock Market rules and were not made under the 2017 Plan. The inducement awards are included in the tables below. 95 Table of Contents Stock Options A summary of the stock option activity under the Company's inducement awards for the year ended December 31, 2025 is as follows: (number of shares in millions) Number of shares Weighted average exercise price Weighted average remaining contractual life (years) Options outstanding at December 31, 2024 0.7 $ 13.38 Options outstanding at December 31, 2025 0.7 13.38 0.58 Options exercisable at December 31, 2025 0.5 13.38 0.58 Options vested and expected to vest 0.2 $ 13.38 0.58 There were no options granted during the years ended December 31, 2025, 2024, and 2023. Restricted Stock Units A summary of the RSU awards activity under the Company's equity plans and inducement awards, including PSU awards, for the year ended December 31, 2025 is as follows: (number of shares in millions) Number of shares Weighted average grant date fair value RSUs unvested and outstanding at December 31, 2024 5.3 $ 23.66 RSUs granted 4.9 $ 6.59 Less: RSUs vested ( 2.1 ) $ 23.72 RSUs canceled ( 1.0 ) $ 13.61 RSUs unvested and outstanding at December 31, 2025 7.1 $ 11.27 The weighted average grant-date fair value of RSUs granted during the years ended December 31, 2025, 2024, and 2023, was $ 6.59 , $ 22.09 , and $ 23.02 , respectively. The fair value of RSUs that vested during the years ended December 31, 2025, 2024, and 2023, was $ 49.1 million, $ 37.9 million, and $ 30.5 million, respectively. Stock-based compensation expense recognized and included in the Consolidated Statements of Operations was allocated as follows: Years Ended December 31, (in millions) 2025 2024 2023 Cost of revenue $ 1.2 $ 1.6 $ 1.4 Research and development expense 6.6 8.8 4.0 Sales and marketing expense 5.3 9.0 7.2 General and administrative expense 22.1 30.4 28.1 Total stock-based compensation expense $ 35.2 $ 49.8 $ 40.7 As of December 31, 2025, there was $ 38.1 million of total unrecognized stock-based compensation expense that will be recognized over a weighted-average period of 2.0 years. The Company recognizes forfeitures as they occur. 96 Table of Contents The aggregate intrinsic value of options outstanding, aggregate intrinsic value of options that are fully vested and aggregate intrinsic value of RSUs vested and expected to vest is as follows: (in millions) December 31, 2025 Aggregate intrinsic value of options outstanding $ — Aggregate intrinsic value of options fully vested — Aggregate intrinsic value of RSUs outstanding 43.7 Employee Stock Purchase Plan The Company also has an Employee Stock Purchase Plan that was initially approved by stockholders in 2012 and was amended and approved by the Board of Directors of the Company on September 23, 2021 and the stockholders on June 2, 2022 (the “Amended and Restated 2012 Purchase Plan”), under which 4.0 million shares of common stock were authorized for issuance. Shares are issued under the Amended and Restated 2012 Purchase Plan twice yearly at the end of each offering period and the number of shares that may be purchased by any participant during an offering period is limited to 5,000 shares. The first offering period of 2025 started on December 1, 2024 and ended on May 31, 2025. The second offering period of 2025 began on June 1, 2025 and ended on November 30, 2025. As of December 31, 2025, no shares of common stock were available for issuance under the Amended and Restated 2012 Purchase Plan. Shares purchased under, and compensation expense associated with, the Amended and Restated 2012 Purchase Plan for the periods reported are as follows: Years Ended December 31, (in millions) 2025 2024 2023 Shares purchased under the plan 0.9 0.4 0.4 Plan compensation expense $ 1.0 $ 2.1 $ 2.2 The fair value of shares issued under the Amended and Restated 2012 Purchase Plan that was in effect for each period reported was calculated using the Black‑Scholes option-pricing model using the weighted-average assumptions below. Each of these inputs is subjective and its determination generally requires significant judgment. Years Ended December 31, 2025 2024 2023 Risk-free interest rate 4.3 % 5.3 % 5.1 % Expected dividend yield — % — % — % Expected life (in years) 0.5 0.5 0.5 Expected volatility 75 % 50 % 56 % 9. INCOME TAXES Income tax expense (benefit) consists of the following: Years Ended December 31, (in millions) 2025 2024 2023 Current: Federal $ ( 31.5 ) $ 3.4 $ 3.4 State 1.1 1.5 1.8 Foreign ( 0.2 ) 1.2 0.2 Total current ( 30.6 ) 6.1 5.4 Deferred: Federal ( 35.3 ) ( 15.5 ) ( 51.8 ) State ( 2.5 ) ( 5.5 ) ( 5.2 ) Foreign 0.4 3.1 0.1 Change in valuation allowance 38.8 15.6 52.6 Total deferred 1.4 ( 2.3 ) ( 4.3 ) Total income tax (benefit) expense $ ( 29.2 ) $ 3.8 $ 1.1 97 Table of Contents Loss before income taxes consists of the following: Years Ended December 31, (in millions) 2025 2024 2023 United States $ ( 394.6 ) $ ( 125.4 ) $ ( 263.2 ) Foreign ( 0.5 ) 1.9 1.0 Total $ ( 395.1 ) $ ( 123.5 ) $ ( 262.2 ) The table below provides the updated requirements of ASU 2023-09 for 2025. See Note 1 - Organization and Summary of Significant Accounting Policies - Recent accounting pronouncements for additional details on the adoption of ASU 2023-09. The effective income tax rate for the year ended December 31, 2025 differs from the statutory federal income tax rate as follows: Year Ended December 31, (in millions) 2025 Federal income tax benefit at the statutory rate ( 83.0 ) 21.0 % State and local income taxes, net of federal tax effect (1) 0.6 ( 0.1 ) % Foreign tax effects: Other foreign jurisdictions Statutory tax rate difference from United States 0.1 — % Change in valuation allowance ( 0.4 ) 0.1 % Tax credits ( 2.5 ) 0.6 % Changes in valuation allowance 35.0 ( 8.9 ) % Nontaxable/nondeductible items: Incentive stock option and ESPP Expense 3.5 ( 0.9 ) % Non-deductible officer compensation 3.0 ( 0.8 ) % Changes in unrecognized tax benefits ( 28.2 ) 7.2 % Impairments 39.1 ( 9.9 ) % Other, net 3.6 ( 0.9 ) % Total income tax benefit ( 29.2 ) 7.4 % (1) 2025 State taxes in Louisiana, North Carolina, Alabama, Tennessee, Illinois, and New York made up the majority (greater than 50%) of the tax effect in this category. 98 Table of Contents As previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the effective income tax rate differs from the statutory federal income tax rate as follows: (in millions) 2024 2023 Federal income tax benefit at the statutory rate $ ( 25.9 ) 21.0 % $ ( 54.9 ) 21.0 % State income taxes, net of federal benefit ( 2.4 ) 1.9 % ( 4.1 ) 1.6 % Research and development credits ( 0.4 ) 0.3 % ( 1.6 ) 0.6 % Uncertain tax positions 2.8 ( 2.3 ) % 3.7 ( 1.4 ) % Stock-based incentive awards 0.8 ( 0.6 ) % 1.2 ( 0.5 ) % Foreign rate differential 3.3 ( 2.7 ) % ( 0.4 ) 0.2 % Change in valuation allowance 15.7 ( 12.7 ) % 52.6 ( 20.1 ) % Non-deductible officer compensation 3.9 ( 3.2 ) % 3.0 ( 1.1 ) % Acquisitions and dispositions 5.1 ( 4.1 ) % 0.1 — % Other, net 0.9 ( 0.7 ) % 1.5 ( 0.7 ) % Total income tax expense $ 3.8 ( 3.1 ) % $ 1.1 - 0.4 % The significant components of the Company’s deferred tax assets and liabilities were comprised of the following: December 31, (in millions) 2025 2024 Deferred tax assets: Net operating loss carryforwards $ 82.5 $ 62.7 Stock compensation expense 5.6 6.6 Research and development credits 22.0 20.6 Lease liability 21.8 24.4 Capitalized research and development costs 37.1 54.3 Accrued expenses and liabilities 10.4 16.5 Other, net 3.8 — Total gross deferred tax assets 183.2 185.1 Less valuation allowance ( 150.8 ) ( 111.9 ) Total deferred tax assets 32.4 73.2 Deferred tax liabilities: Intangible assets 17.0 55.5 Lease right-of-use assets 11.9 13.3 Property, plant and equipment 3.2 3.2 Other, net — 0.8 Total deferred tax liabilities 32.1 72.8 Net deferred tax asset $ 0.3 $ 0.4 The Company incurred a loss in the current year and the two preceding years, resulting in a three-year cumulative loss. Pursuant to ASC 740, Income Taxes ("ASC 740"), a company that is in a cumulative loss position must consider the weight of this significant negative evidence together with the weight of other positive and negative evidence that is available to determine the realizability of deferred tax assets and that overcoming negative evidence such as cumulative losses in recent years is difficult. Due to significant negative evidence and the lack of sufficient positive evidence, the Company has applied a valuation allowance to the majority of its deferred tax assets, leaving a remaining deferred tax asset balance of $ 0.3 million. For those foreign entities for which an election has been made to be treated as disregarded for U.S. tax purposes, the appropriate U.S. jurisdiction deferred tax assets and liabilities have been recorded. 99 Table of Contents At December 31, 2025, the Company had the following net operating loss and research credit carryforwards (tax effected), with their respective expiration periods. Certain carryforwards are subject to the limitations of Section 382 and 383 of the Internal Revenue Code as indicated: Carryforwards (in millions) Amount Subject to Sections 382, 383 Expires beginning in year Through Federal net operating loss $ 60.9 Yes 2033 Indefinite Federal capital loss 13.8 No 2026 2029 Utah net operating loss 0.9 No Indefinite Indefinite California net operating loss 5.8 Yes 2029 2045 Other state net operating loss 6.8 Yes Various Various Foreign net operating losses (various jurisdictions) 4.0 No Various Various Federal research credit 12.5 Yes 2036 2045 Utah research credit 3.8 No 2025 2039 California research credit 5.8 No Indefinite Indefinite The Company provides for uncertain tax positions when such tax positions do not meet the recognition thresholds or measurement criteria as set forth in ASC 740. As of December 31, 2025, the Company had net unrecognized tax benefits of $ 22.1 million. The Company’s gross unrecognized tax benefits as of the years ended December 31, 2025, 2024, and 2023, and the changes in those balances are as follows: Years Ended December 31, (in millions) 2025 2024 2023 Unrecognized tax benefits at the beginning of period $ 51.7 $ 48.1 $ 43.9 Gross increases - current year tax positions 0.8 1.0 0.8 Gross increases - prior year tax positions 2.1 2.6 3.6 Gross decreases - prior year tax positions — — ( 0.2 ) Gross decreases - statute lapse ( 3.0 ) — — Gross decreases - settlements ( 29.5 ) — — Unrecognized tax benefits at end of year $ 22.1 $ 51.7 $ 48.1 In 2022, the Company filed a U.S. federal tax return reflecting an uncertain tax position that was not recorded as a tax benefit or deferred tax asset in the financial statements. The related unrecognized tax benefit of $ 12.5 million, however, has been included in the table above. Interest and penalties related to uncertain tax positions are included as a component of Income tax (benefit) expense and all other interest and penalties are included as a component of Other income (expense) in the Consolidated Statements of Operations. As of December 31, 2024, and 2023, the Company had accrued $ 8.8 million, and $ 6.4 million of interest and penalties, respectively, which are included in income tax expense. The Company had no accrual for interest and penalties as of December 31, 2025. For the year ended December 31, 2025, unrecognized tax benefits, if recognized, would have an immaterial effect on the effective tax rate, while for the years ended December 31, 2024, and 2023, $ 32.7 million and $ 30.2 million, respectively, of the unrecognized tax benefits, if recognized, would affect the effective tax rate. The Company is subject to taxation in the United States and various other state and foreign jurisdictions. As of December 31, 2025, the statutes of limitations for the assessment of federal, state, and foreign income taxes are closed for the years before 2016, 2008, and 2016, respectively. During the year ended December 31, 2025, the Company was notified by the Joint Committee on Taxation that it had concluded its review of these tax refund claims. The Company remeasured or released the unrecognized benefits, resulting in a discrete tax benefit of $ 32.5 million, of which $ 29.5 million related to a refund claim and $ 3.0 million related to the lapse of the statute of limitations. One Big Beautiful Bill Act On July 4, 2025, the “One Big Beautiful Bill Act” was signed into law, enacting significant changes to the U.S. federal tax code. The Company evaluated the potential effects of this legislation on its financial position and results of operations. Based on this assessment, the new law did not have a material impact on the Company's current or net deferred tax balances. 100 Table of Contents 10. COMMITMENTS AND CONTINGENCIES The Company is involved from time to time in various disputes, claims, and legal actions, including class actions and other litigation, including the matters described below, arising in the ordinary course of business. Such actions may include allegations of negligence, product or professional liability or other legal claims, and could involve claims for substantial compensatory and punitive damages or claims for indeterminate amounts of damages. The Company is also involved, from time to time, in investigations by governmental agencies regarding its business which may result in adverse judgments, settlements, fines, penalties, injunctions, or other relief. In addition, certain federal and state statutes, including the qui tam provisions of the federal False Claims Act, allow private individuals to bring lawsuits against healthcare companies on behalf of the government or private payors. The Company has received subpoenas from time to time related to billing or other practices based on the False Claims Act or other federal and state statutes, regulations, or other laws. The Company intends to defend its current litigation matters but cannot provide any assurance as to the ultimate outcome or that an adverse resolution would not have a material adverse effect on its financial condition, results of operations or cash flows. The Company assesses legal contingencies to determine the degree of probability and range of possible loss for potential accrual and disclosure in its financial statements. When evaluating legal contingencies, the Company may be unable to provide a meaningful estimate due to a number of factors, including the proceedings may be in early stages, there may be uncertainty as to the outcome of pending appeals or motions, there may be significant factual issues to be resolved, and there may be complex or novel legal theories to be presented. In addition, damages may not be specified or the damage amounts claimed may be unsupported, exaggerated or unrelated to possible outcomes, and therefore, such amounts are not a reliable indicator of potential liability. As of December 31, 2025, the Company has not recorded any material accrual for loss contingencies associated with legal proceedings or other matters or determined that an unfavorable outcome is probable and reasonably estimable in accordance with ASC 450, Contingencies . However, it is possible that the ultimate resolution of legal proceedings or other matters, if unfavorable, may be material to the Company's results of operations, financial condition or cash flows. Further, in the event that damages from an unfavorable resolution of one or more of these proceedings exceed the aggregate amount of the coverage limits of the Company’s insurance, or if the Company’s insurance carriers disclaim coverage, the amounts payable by the Company could also have a material adverse impact on the Company’s results of operations, financial condition or cash flows. From time to time, the Company receives recoupment requests from third-party payors for alleged overpayments. The Company disagrees with the contentions of the pending requests or has recorded an estimated reserve for the alleged overpayments. Qui Tam Lawsuit In June 2023, the Company received a civil investigative demand pursuant to the False Claims Act from the U.S. Department of Justice concerning whether the Company offered or paid remuneration to physicians at Carolina Urology Partners, PLLC, in exchange for referrals. The Department of Justice subsequently requested additional documentation and information during its investigation. The Company cooperated with the Department of Justice investigation, providing the documents and information requested. On January 22, 2025, the U.S. District Court for the Western District of North Carolina unsealed a qui tam complaint, filed on November 3, 2022, against Carolina Urology Partners, PLLC, and certain of its current or former physician partners, and the Company and certain of its former employees, alleging violations of the False Claims Act. The government declined to intervene in the case. The Company was not aware of the complaint until after it was unsealed. On April 16, 2025, the Company was served with the complaint. In June 2025, the Company filed a motion to dismiss the complaint. 11. LEASES The Company leases certain office spaces, research and development laboratory facilities, and office equipment with remaining lease terms ranging from approximately one to 13 years. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases also include renewal options, which allow the Company, at its election, to renew or extend the lease for a fixed period of time. These optional periods have not been considered in the determination of the ROU assets or lease liabilities associated with these leases when the Company did not consider it reasonably certain it would exercise the options. 101 Table of Contents The Company previously amended the lease for its West Salt Lake City facility to include approximately 63,000 additional square feet of laboratory space in anticipation of future operating needs. The lease has a term of 12 years and ends coterminous with the rest of the lease. The amendment commenced in fiscal year 2026 with future rent payments totaling $ 18.2 million. The majority of the Company's identified leases are operating leases. For the year ended December 31, 2025, the Company incurred $ 17.3 million in operating lease costs which are included in Operating expenses in the Consolidated Statements of Operations in relation to these operating leases. Of such lease costs, $ 3.5 million was variable lease expense, which was not included in the measurement of the Company's operating ROU assets and lease liabilities. The variable rent expense is comprised primarily of the Company's proportionate share of operating expenses, property taxes, and insurance and is classified as lease expense due to the Company's election to not separate lease and non-lease components. For the year ended December 31, 2024, the Company incurred $ 21.0 million in lease costs which are included in Operating expenses in the Consolidated Statements of Operations in relation to these operating leases. Of such lease costs, $ 5.0 million was variable lease expense, which was not included in the measurement of the Company's operating ROU assets and lease liabilities. The Company's finance leases are immaterial. As of December 31, 2025, the maturities of the Company’s operating lease liabilities were as follows: Year Ended (in millions) : 2026 $ 12.5 2027 12.8 2028 13.0 2029 12.7 2030 11.8 Thereafter 62.0 Total future lease payments 124.8 Less: amounts representing interest 34.9 Present value of future lease payments 89.9 Less: current maturities of operating lease liabilities ( 6.9 ) Noncurrent operating lease liabilities $ 83.0 As of December 31, 2025, the weighted average remaining lease term is 9.0 years and the weighted average discount rate used to determine the operating lease liability was 6.6 %. As the implicit rate in the Company's leases is generally unknown, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of future lease payments. When calculating the Company’s incremental borrowing rates, the Company gives consideration to its credit risk, term of the lease, total lease payments and adjusts for the impacts of collateral, as necessary. The lease term used may reflect any option to extend or terminate the lease when it is reasonably certain the Company will exercise such options. Lease expenses for the Company's operating leases are recognized on a straight-line basis over the lease term. 12. EMPLOYEE DEFERRED SAVINGS PLAN The Company has a deferred savings plan which qualifies under Section 401(k) of the Internal Revenue Code. Substantially all of the Company’s U.S. employees are covered by the plan. The Company makes matching contributions of 50.0 % of each employee’s contribution with the employer’s contribution not to exceed 4.0 % of the employee’s compensation. The Company’s recorded contributions to the plan are as follows: Years Ended December 31, (in millions) 2025 2024 2023 Deferred savings plan contributions $ 10.4 $ 10.3 $ 10.0 102 Table of Contents 13. SEGMENT AND RELATED INFORMATION The Company’s business is aligned with how the Chief Operating Decision Maker (the "CODM") reviews performance and makes decisions in managing the Company. The Company has identified the President and Chief Executive Officer as the CODM. The CODM regularly reviews consolidated financial information for the purposes of evaluating performance, allocating resources, setting incentive compensation targets, and planning and forecasting for future periods. Accordingly, the Company has determined that it operates as a single operating segment. The Company has identified consolidated net income (loss) as the measure of segment profitability. The significant expenses and other segment expenses presented to the CODM are at the same level as presented in Consolidated Statement Operations in these financial statements. Substantially all of the Company’s long-lived assets are located in the United States. Long-lived assets located outside the United States were not material for the periods presented. 14. SUPPLEMENTAL CASH FLOW INFORMATION The Company's supplemental cash flow information for the respective periods are as follows: December 31, (in millions) 2025 2024 2023 Cash paid for interest 8.4 1.9 1.4 Non-cash investing and financing activities: Change in operating lease right-of-use assets and lease liabilities Operating lease right-of-use assets $ 2.2 $ 3.1 $ ( 31.0 ) Operating lease liabilities ( 2.2 ) ( 3.1 ) 36.7 Purchases of Property, plant and equipment and capitalization of internal-use software in Accounts payable and Accrued liabilities 5.2 6.4 6.9 103 Table of Contents Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE Not applicable.