EXACT SCIENCES CORP SEC 10-Q Report

Exact Sciences Corp, a leading player in the molecular diagnostics industry, has released its Form 10-Q report for the third quarter, showcasing significant financial and operational achievements. The company's robust performance is driven by increased test volumes and strategic investments in new product launches and international expansion.

Financial Highlights

• Total Revenue: $850.7 million, increased by 20.0% year-over-year driven by higher volumes of Cologuard and Oncotype DX tests.
• Gross Profit: $583.9 million, representing a gross margin of 68.6%, slightly decreased from 69.4% due to increased volume from care gap programs.
• Cost of Sales: $266.8 million, increased by 22.9% due to higher production costs associated with increased test volumes.
• Research and Development Expenses: $117.3 million, representing 13.8% of revenue, increased by 15.6% due to support for pipeline tests approaching commercialization.
• Sales and Marketing Expenses: $250.2 million, representing 29.4% of revenue, increased by 13.6% due to continued investment in sales and marketing opportunities.
• General and Administrative Expenses: $241.4 million, representing 28.4% of revenue, increased by 24.7% due to restructuring and business transformation costs.
• Net Cash Provided by Operating Activities: $339.7 million, an improvement of $176.3 million compared to the previous year, driven by increased revenue and decreased operating expenses as a percentage of revenue.

Business Highlights

• Revenue Segments: The company reported a 22.3% increase in Screening revenue, primarily driven by a higher volume of completed Cologuard tests. Precision Oncology revenue increased by 12.7%, mainly due to a rise in the number of completed Oncotype DX breast cancer tests, particularly outside the U.S., with significant growth in Japan.
• New Product Launches: In 2025, the company launched several new tests, including Cologuard Plus, Oncodetect, and Cancerguard. Cologuard Plus, developed with Mayo Foundation, offers improved sensitivity and reduced false positives. Oncodetect is designed for monitoring minimal residual disease in colorectal cancer, and Cancerguard is a multi-cancer early detection blood test.
• Geographical Performance: The company expanded its international presence, particularly with the Oncotype DX tests, which are now available in approximately 120 countries. The growth in Japan is notable, driven by the adoption of the Oncotype DX test for breast cancer.
• Sales Units: The company achieved a record number of orders and shipments in its gap closure program, which aids payers in closing gaps in guideline-recommended preventive cancer screening.
• Future Outlook: The company plans to continue advancing its pipeline of screening and diagnostic products, focusing on colorectal cancer, MRD, and MCED tests. It aims to enhance its product portfolio, increase test adoption, and invest in clinical trials to support new diagnostics.
• Operational Efficiency: The company announced a multi-year productivity plan aimed at achieving over $150 million in expected annual savings by 2026 through general and administrative efficiencies, restructuring, and automation.
• Customer and Team Focus: The company is committed to enhancing customer experience, expanding screening access to underserved populations, and maintaining a positive workplace environment.
• Amplifying Impact: By expanding its portfolio and customer base, the company aims to increase revenue and profitability, enabling continued investment in cancer diagnostics.

SEC Filing: EXACT SCIENCES CORP [ EXAS ] - 10-Q - Nov. 03, 2025