Veracyte Inc (VCYT)

Pretax 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
Earnings before tax but after interest (EBT) (ttm) US$ in thousands 28,969 35,080 25,744 -8,171 -54,791 -70,429 -76,612 -49,581 -28,684 -30,054 -36,427 -44,303 -50,907 -50,450 -81,649 -78,376 -67,021 -68,856 -34,909 -34,323
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
Pretax margin 6.05% 7.57% 5.78% -1.92% -13.71% -18.76% -21.22% -14.45% -8.73% -9.66% -12.28% -15.62% -18.97% -20.13% -37.20% -41.98% -42.56% -55.95% -29.71% -30.46%

June 30, 2025 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $28,969K ÷ $479,129K
= 6.05%

The analysis of Veracyte Inc.'s pretax margin over the specified periods reveals a significant improvement trajectory. Initially, from September 2020 through early 2022, the company's pretax margin consistently remained negative, indicating ongoing losses relative to pre-tax income. During this period, the margins fluctuated between approximately -55.95% in March 2021 and -12.28% in December 2022, reflecting persistent challenges in achieving profitability before taxes.

However, starting in early 2023, there is a clear trend toward margin expansion. The negative pretax margin narrowed from -14.45% in September 2023 to -13.71% in June 2024, indicating improved operational efficiency or revenue growth outpacing expenses. A notable turning point occurs in December 2024, where the pretax margin transitions into positive territory at 5.78%, signaling a shift towards profitability before tax considerations. This positive trend continues into early 2025, with margins recorded at 7.57% for March 2025 and stabilizing around 6.05% in June 2025.

Overall, the data indicates that Veracyte Inc. has moved from a period of sustained pre-tax losses to achieving consistent profitability. The progressive narrowing of negative margins and subsequent return to positive margins suggest effective management of costs, successful revenue growth, or both, culminating in a significant turnaround by the end of the analyzed period.