Veracyte Inc (VCYT)

Operating profit margin

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Operating income (ttm) US$ in thousands 13,828 23,802 16,671 11,072 -32,684 -45,441 -51,712 -55,708 -33,649 -36,331 -40,189 -47,102 -54,103 -50,844 -81,903 -77,642 -65,027 -68,604 -35,389 -35,514
Revenue (ttm) US$ in thousands 479,129 463,393 445,764 425,331 399,579 375,473 361,051 343,149 328,633 311,175 296,536 283,575 268,353 250,594 219,514 186,714 157,465 123,064 117,483 112,677
Operating profit margin 2.89% 5.14% 3.74% 2.60% -8.18% -12.10% -14.32% -16.23% -10.24% -11.68% -13.55% -16.61% -20.16% -20.29% -37.31% -41.58% -41.30% -55.75% -30.12% -31.52%

June 30, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $13,828K ÷ $479,129K
= 2.89%

The operating profit margin of Veracyte Inc. has exhibited a notable oscillation over the period from September 2020 through June 2025. During the initial fiscal quarters, the company experienced significant negative operating profit margins, indicative of operating losses. Specifically, as of September 30, 2020, the margin stood at -31.52%, slightly improving but remaining negative through the end of 2020. The negative trend persisted into March 2021, with a steep decline to -55.75%, reflecting heightened operating losses relative to revenues.

Throughout 2021, the operating margin exhibited some improvement, albeit remaining in negative territory, fluctuating between approximately -41.58% and -37.31%. In 2022, the company continued its positive trajectory, reducing operating losses as the margin improved from -20.29% in March to -16.61% in September. The trend further persisted into late 2022 and early 2023, with margins moving closer to breakeven, reaching as high as -11.68% in March 2023 and -10.24% in June 2023.

The first signs of a turnaround appeared between late 2023 and mid-2024, with the operating profit margin crossing from negative into positive territory. Notably, by September 2024, the margin reached 2.60%, and continued to improve, hitting 3.74% in December 2024. This positive trend persisted into early 2025, with the margin reaching 5.14% in March 2025 before slightly declining to 2.89% by June 2025.

Overall, the data depict a transition from substantial operating losses experienced in the early phases of the period towards gradual profitability starting in late 2023. This indicates an improving operational efficiency and potentially successful strategic initiatives to reduce costs and increase revenues, although the margin remains modest in the latter periods.