MYRIAD GENETICS INC
For the period ended Dec 31, 2025. Filed Feb 24, 2026.
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FY2025 · Filed Feb 24, 2026
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Item 8. Report of Independent Registered Public Accounting Firm
Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Directors of Myriad Genetics, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Myriad Genetics, Inc. and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive loss, stockholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 24, 2026 expressed an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
| Measurement of revenue | |
| Description of the Matter | During the year ended December 31, 2025, the Company’s revenue was $824.5 million. As discussed in Note 1 of the consolidated financial statements, management estimates the expected amount of consideration to be received as revenue and revenue is recognized when the performance obligation is complete. Auditing the measurement of the Company’s revenue was complex and judgmental due to the significant estimation required in determining the amount that will be collected for each test. In particular, the estimate of revenue is affected by assumptions related to payors such as changes in payor mix, historical and current payment trends and other changes in payor behavior. |
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| How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of internal controls that address the risks of material misstatement relating to the measurement of revenue related to tests performed. Our procedures included testing controls over management’s review of the significant assumptions and inputs used in calculating the estimated amounts to be collected for tests performed. We also tested controls used by management to evaluate the current and historical data used in making the estimates for completeness and accuracy.Our audit procedures over the Company’s revenue included, among others, assessing the methodologies used to estimate consideration expected to be received for tests performed and testing the significant assumptions and the underlying data used by the Company in its analysis. We assessed the reasonableness of adjustments to estimates of future cash collections as a result of changes in historical and current collection trends and changes in payor behavior. Additionally, we tested management’s supporting calculations. We also performed an evaluation of actual cash collections versus expectations to assess the accuracy of prior estimates. |
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| Goodwill Impairment Assessment – Women’s Health and Mental Health Reporting Units | |
| Description of the Matter | As described in Notes 1 and 4 to the consolidated financial statements, the Company performs an annual goodwill impairment assessment as of the first day of the fourth quarter, or more frequently if indicators of impairment are present or circumstances suggest that impairment may exist. The Company’s consolidated goodwill balance was $51.6 million as of December 31, 2025, and the goodwill allocated to the Women’s Health and Mental Health reporting units was $4.5 million and $29.8 million, respectively. In the second quarter of 2025, primarily due to sustained declines in the Company’s share price, management performed an interim quantitative goodwill impairment assessment. This assessment involved the comparison of the fair value of each reporting unit to its carrying value. In estimating the fair value of the reporting units, the Company used a combination of an income approach (discounted cash flow model) and a market approach (multiples of revenue derived from guideline public companies). The fair value estimates required the Company to make several business and valuation assumptions and estimates, including, but not limited to, those related to the discount rates. Changes in the discount rates could have a material effect on either the reporting units’ fair values, the amount of any goodwill impairment charge, or both. The Company determined that the Women’s Health and Mental Health reporting units’ carrying values exceeded their respective fair values, resulting in a goodwill impairment charge of $234.7 million. Auditing the discount rates used in the Company’s interim quantitative goodwill impairment assessment specific to the Women’s Health and Mental Health reporting units was complex because it required a high degree of auditor judgement and an increased extent of effort, including the need to involve professionals with specialized skill and knowledge. |
| How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over management’s interim goodwill impairment assessment review process, including the determination of the discount rates used in the discounted cash flow models to estimate the fair value of each reporting unit. To test the reasonableness of the discount rates used in estimating the fair values of the Company’s reporting units, we performed audit procedures with the assistance of professionals with specialized skill and knowledge that included sensitivity analyses, testing applicable source information underlying the determination of the discount rates, testing the mathematical accuracy of the calculations, and developing independent estimates which were compared to the discount rates selected by management. |
/s/Ernst & Young LLP
We have served as the Company’s auditor since 2006.
Salt Lake City, Utah
February 24, 2026
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