Balance Sheet Components

9 Months Ended

Sep. 30, 2025

Balance Sheet Related Disclosures [Abstract]

Goodwill

Goodwill was $767.2 million and $745.8 million as of September 30, 2025 and December 31, 2024, respectively. The changes in the carrying amounts of goodwill during the three and nine months ended September 30, 2025 were due to foreign currency translation. The Company has not recorded any impairment related to goodwill.

Intangible Assets, Net

Intangible assets include finite-lived product technology, customer relationships, licenses and trade names and indefinite-lived in-process research and development. Intangible assets consisted of the following (in thousands of dollars):


	September 30, 2025						December 31, 2024						Weighted Average Remaining Amortization Period (Years)
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Percepta product technology	$	16,000	$	(11,200)	$	4,800	$	16,000	$	(10,400)	$	5,600	4.5
Prosigna product technology	4,120		(1,602)		2,518		4,120		(1,396)		2,724		9.2
Decipher product technology	97,300		(41,187)		56,113		90,000		(34,234)		55,766		6.6
Decipher trade names	4,000		(3,643)		357		4,000		(3,043)		957		0.5
C2i developed technology	25,300		(2,811)		22,489		25,300		(1,546)		23,754		13.3
Total finite-lived intangibles	146,720		(60,443)		86,277		139,420		(50,619)		88,801		8.3
In-process research and development	6,200		—		6,200		13,500		—		13,500
Total intangible assets	$	152,920	$	(60,443)	$	92,477	$	152,920	$	(50,619)	$	102,301

Acquisition-related intangibles are generally finite-lived and are carried at cost less accumulated amortization. Amortization of the finite-lived intangible assets is recognized on a straight-line basis over their estimated lives, which approximates the pattern in which the economic benefits of the intangible assets are expected to be realized.

Amortization expense of $3.3 million and $3.8 million was recognized for the three months ended September 30, 2025 and 2024, respectively, and an expense of $9.8 million and $11.2 million was recognized for the nine months ended September 30, 2025 and 2024, respectively.

The estimated future aggregate amortization expense as of September 30, 2025 is as follows (in thousands of dollars):


Year Ending December 31,	Amounts
2025 remainder of year	$	3,329
2026	12,672
2027	12,515
2028	12,515
2029	12,515
Thereafter	32,731
Total	$	86,277

Supplies and Inventory

Supplies consisted of lab supplies and reagents to be used in the performance of testing services. Inventory related to finished and semi-finished goods used in the assembly of diagnostic kits related to product sales as well as raw materials consumed in the contract manufacturing process. Subsequent to the restructuring proceedings affecting Veracyte SAS in August 2025, the Company no longer maintains inventory associated with product sales or contract manufacturing.

As of September 30, 2025 and December 31, 2024, supplies and inventory consisted of the following (in thousands of dollars):


	September 30, 2025		December 31, 2024
Supplies	$	20,327	$	17,876
Inventory	—		3,874
Total supplies and inventory	$	20,327	$	21,750

Impairment of Assets

On July 16, 2025, the Marseille Commercial Court published a decision approving the divestiture of the contract manufacturing portion of the Company's French subsidiary, Veracyte SAS, to Helio Diagnostics SAS, effective August 1, 2025. The remaining assets of Veracyte SAS will be managed by the judicial administrator until such time that the Marseille Commercial Court appoints a judicial liquidator to solely initiate and manage liquidation proceedings. Effective August 1, 2025, the Company ceased to have a controlling interest in Veracyte SAS. As the Company began judicial restructuring proceedings affecting Veracyte SAS with the Marseille Commercial Court in the second quarter of 2025, the Company evaluated whether the associated assets of Veracyte SAS were impaired. The Company concluded, during the second quarter of 2025, that the long-lived assets of the Veracyte SAS asset group were not recoverable. As a result, the Company recorded a $20.5 million non-cash impairment charge during the three months ended June 30, 2025. The impairment related primarily to the Company's right-of-use assets; property, plant, and equipment; and certain tax credits. The impairment is included within the impairment of assets in the condensed consolidated statement of operations. The divestiture did not meet the criteria for discontinued operations under ASC 205-20 as the Company concluded it does not represent a strategic shift in the Company’s operations.

Deconsolidation of Wholly-Owned Subsidiary

Effective August 1, 2025, the Company ceased to have a controlling interest in its wholly-owned French subsidiary, Veracyte SAS. Accordingly, the Company derecognized the related assets and liabilities from its condensed consolidated financial statements. Prior to deconsolidation, the operating results and cash flows of Veracyte SAS were included in the Company’s condensed consolidated financial statements. The Company has no continuing involvement with Veracyte SAS and has entered into a contract manufacturing agreement with Helio Diagnostics SAS, an unrelated party, for the manufacture of certain IVD products.

In accordance with ASC 810, Consolidation, the Company recognized a loss on deconsolidation of approximately $6.7 million, which is included in other income, net in the condensed consolidated statements of operations for the three months ended September 30, 2025. The Company recognized outstanding accounts payable to the subsidiary at the time of deconsolidation for intercompany purchases from the subsidiary. The functional currency of Veracyte SAS is the Euro. With the deconsolidation of Veracyte SAS, the Company released the related accumulated foreign currency translation adjustment from accumulated other comprehensive income into earnings. The loss on deconsolidation was calculated as the carrying amount of the former subsidiary’s net liabilities as of the deconsolidation date less the release of the accumulated foreign currency translation, recording of accounts payable and other expenses. The deconsolidation did not have a material effect on the Company’s ongoing operations or liquidity. The fair market value of Veracyte SAS was deemed to be zero consequently no goodwill was allocated.

The following table summarizes the major classes of assets and liabilities of Veracyte SAS that were deconsolidated as of August 1, 2025 (in thousands of dollars):


	Amounts
Current assets:
Cash and cash equivalents	$	2,845
Accounts receivable	2,087
Supplies and inventory	4,318
Prepaid expenses and other current assets	3,751
Total current assets	13,001
Property, plant and equipment, net	804
Right-of-use assets, operating leases	673
Total assets deconsolidated	14,478
Current liabilities:
Accounts payable	(3,171)
Accrued Liabilities	(6,004)
Total current liabilities	(9,175)
Operating lease liabilities	(9,459)
Total liabilities deconsolidated	(18,634)
Net liabilities deconsolidated	$	(4,156)

The loss on deconsolidation was calculated as follows (in thousands of dollars):


	Nine Months Ended September 30,
Net liabilities deconsolidated	$	(4,156)
Release of accumulated translation adjustment	8,295
Recording of accounts payable to subsidiary	769
Other expenses	1,800
Net loss on deconsolidation	$	6,708

Net cash outflows arising from the deconsolidation of the subsidiary was $2.9 million during the nine months ended September 30, 2025 related to the balance of cash and cash equivalents deconsolidated.

Accrued Liabilities

Accrued liabilities consisted of the following (in thousands of dollars):


	September 30, 2025		December 31, 2024
Accrued compensation expenses	$	26,952	$	30,595
Accrued other	21,421		13,231
Total accrued liabilities	$	48,373	$	43,826