Veracyte Inc (VCYT)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 67.31% | 66.58% | 64.95% | 65.47% | 65.56% | 65.73% | 67.16% | 67.84% | 66.91% | 66.55% | 65.74% | 65.57% | 65.24% | 65.80% | 66.11% | 66.42% | 67.34% | 66.18% | 64.71% | 64.16% |
| 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% |
| 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% |
| Net profit margin | 5.50% | 7.13% | 5.41% | -2.18% | -13.52% | -18.16% | -19.94% | -13.86% | -8.11% | -8.93% | -12.33% | -15.25% | -18.13% | -19.22% | -34.42% | -39.14% | -40.06% | -52.87% | -29.71% | -30.46% |
The profitability ratios of Veracyte Inc. from September 2020 through June 2025 demonstrate a notable trajectory of improvement, transitioning from substantial losses to consistent positive margins in recent periods.
Gross Profit Margin:
The gross profit margin consistently increased over the analyzed period, starting at 64.16% as of September 2020 and gradually rising to a peak of approximately 67.31% in June 2025. This progression indicates enhanced efficiency in cost of goods sold management and stronger pricing strategies, resulting in an improved ability to retain revenue after covering direct costs.
Operating Profit Margin:
Initially exhibiting significant negative values, the operating profit margin showed a trend of gradual recovery. From September 2020’s -31.52%, the margin improved progressively, reaching near breakeven at around -8.18% in June 2023. Notably, by September 2024, the operating margin turned positive at 2.60%, and continued to strengthen, reaching 5.14% in March 2025. This shift suggests operational efficiency improvements and potential scaling benefits, enabling the company to manage operating expenses more effectively relative to revenue.
Pre-tax Margin:
Mirroring the operating profit trend, the pre-tax margin also moved from large negative figures—such as -30.46% in September 2020—to positive territory by September 2024 (at 5.78%). The significant swing reflects better control over interest, taxes, and other pre-tax expenses, contributing to overall profitability.
Net Profit Margin:
The net profit margin followed a similar upward trend, starting at -30.46% in September 2020 and gradually improving toward near breakeven at 5.41% by December 2024. A notable achievement is the transition from consistent losses to small net profits in March 2025 (7.13%). This indicates effective cost management, revenue growth, and possibly improved operational efficiencies, culminating in actual profitability.
Summary:
Overall, the profitability ratios of Veracyte Inc. signal a considerable turnaround from years of operating losses. The steady improvement in gross, operating, pre-tax, and net profit margins reflects successful strategic initiatives, cost containment, and revenue enhancement efforts. The company’s progression toward sustainable profitability appears robust, with positive margins achieved in the most recent periods.
Return on investment
| 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 return on assets (Operating ROA) | 1.03% | 1.81% | 1.28% | 0.87% | -2.65% | -3.79% | -4.54% | -4.95% | -2.90% | -3.14% | -3.48% | -4.18% | -4.73% | -4.33% | -6.90% | -6.54% | -6.33% | -6.69% | -7.74% | -7.82% |
| Return on assets (ROA) | 1.96% | 2.51% | 1.86% | -0.73% | -4.38% | -5.68% | -6.33% | -4.23% | -2.30% | -2.40% | -3.16% | -3.84% | -4.25% | -4.10% | -6.36% | -6.16% | -6.14% | -6.35% | -7.64% | -7.56% |
| Return on total capital | 2.93% | 2.25% | 2.02% | -0.86% | -5.01% | -6.39% | -7.44% | -4.88% | -2.82% | -2.84% | -3.45% | -4.19% | -4.75% | -4.62% | -7.42% | -7.04% | -6.85% | -7.03% | -8.18% | -8.06% |
| Return on equity (ROE) | 2.16% | 2.77% | 2.05% | -0.79% | -4.77% | -6.09% | -6.90% | -4.51% | -2.46% | -2.57% | -3.40% | -4.13% | -4.57% | -4.44% | -6.89% | -6.60% | -6.49% | -6.68% | -8.29% | -8.12% |
The profitability ratios of Veracyte Inc. from September 2020 through June 2025 illustrate a trajectory from significant negative returns towards a potential recovery and positive profitability in the most recent periods.
Initially, the company's operating return on assets (Operating ROA) consistently exhibited substantial negative values, beginning at -7.82% in September 2020 and gradually improving over time. By June 2024, the Operating ROA approached near zero at -2.65%, and notably turned positive at 0.87% in September 2024. This upward trend persisted, with the ratio reaching 1.28% at the end of 2024, and further advancing to 1.81% by March 2025, indicating a significant enhancement in operational efficiency relative to assets.
Similarly, the overall return on assets (ROA), which considers net income relative to total assets, reflected persistent losses, starting at -7.56% in September 2020. Over time, this ratio also improved, with notable positive figures emerging in late 2024—specifically reaching 1.86% at the end of December 2024 and progressing to 2.51% by March 2025. The trend suggests that the company has moved from losses toward profitability.
Return on total capital (ROTC) showcased a similar pattern: large negative values around -8% in the early periods, with gradual improvement. By December 2024, ROTC turned positive at 2.02%, and continued upward to 2.93% in June 2025, reflecting better utilization of overall capital.
The return on equity (ROE), which measures profitability from shareholders' perspective, was also negative through most of the period, with -8.12% in September 2020 and reaching a low of -6.90% in December 2023. In line with other ratios, ROE improved markedly in late 2024, crossing into positive territory at 2.05% in December 2024 and climbing further to 2.77% in March 2025, indicating that the company is generating returns for shareholders after several periods of losses.
Overall, the data depicts a trajectory of recovery for Veracyte Inc., culminating in positive profitability metrics toward the end of the observed period. The transition from substantial negative ratios to positive figures in late 2024 and early 2025 suggests improved operational performance, effective utilization of assets and capital, and enhanced profitability margins, signaling a potential turnaround in financial health.