VERACYTE, INC.

Previous wording

The following is a non-exhaustive list of Veracyte and its affiliates’ trademarks and/or registered trademarks in the United States and certain other countries: Afirma, Decipher, Envisia, GenomeDx, GRID, Percepta, Prosigna, TrueMRD, Veracyte, and the Veracyte logo. nCounter is the registered trademark of Bruker Spatial Biology, Inc. and used by Veracyte under license.

Current wording

The following is a non-exhaustive list of Veracyte and its affiliates’ trademarks and/or registered trademarks in the United States and certain other countries: Afirma, Decipher, Envisia, GenomeDx, GRID, Percepta, Prosigna, TrueMRD, UroAmp, Veracyte, and the Veracyte logo. nCounter is the registered trademark of Bruker Spatial Biology, Inc. and used by Veracyte under license.

Previous wording

We serve global markets with two complementary models. In the United States, we offer laboratory developed tests, or LDTs, through our centralized CLIA certified laboratories in South San Francisco and San Diego, California, supported by our cytopathology lab in Austin, Texas. Additionally, outside of the United States, we provide in vitro diagnostic, or IVD, tests to patients through diagnostic kits sold to laboratories and hospitals that can perform the tests locally. Our international distribution of IVDs is currently focused on breast cancer with our Prosigna Breast Cancer Assay kits and, in the future, we intend to offer Decipher Prostate as an IVD test. In the United States, we currently offer tests in prostate cancer (Decipher Prostate), thyroid cancer (Afirma), breast cancer (Prosigna) and bladder cancer (Decipher Bladder and TrueMRD for MIBC).

Current wording

We serve global markets with two complementary models. In the United States, we offer laboratory developed tests, or LDTs, through our centralized CLIA certified laboratories in South San Francisco and San Diego, California, supported by our cytopathology lab in Austin, Texas. Additionally, outside of the United States, we provide in vitro diagnostic, or IVD, tests to patients through diagnostic kits sold to laboratories and hospitals that can perform the tests locally. Our international distribution of IVDs is focused on breast cancer with our Prosigna Breast Cancer Assay kits. In the United States, we currently offer tests in prostate cancer (Decipher Prostate), thyroid cancer (Afirma), breast cancer (Prosigna) and bladder cancer (Decipher Bladder and TrueMRD for MIBC).

Previous wording

A significant aspect of our business is our investment in development activities, including activities related to the development of new tests, as well as modifications and enhancements to our current tests, including the ongoing development of our TrueMRD platform. In addition to these development activities, we also perform clinical evidence studies which are critical to gaining clinician adoption of our tests, driving favorable coverage decisions by payers, as well as gaining guideline inclusion for such tests.

Current wording

A significant aspect of our business is our investment in development activities, including activities related to the development of new tests, such as the development of our TrueMRD platform in additional indications and UroAmp, as well as modifications and enhancements to our current tests, including Decipher Prostate. In addition to these development activities, we also perform clinical evidence studies which are critical to gaining clinician adoption of our tests, driving favorable coverage decisions by payers, as well as gaining guideline inclusion for such tests.

Previous wording

Our finite-lived intangible assets, acquired in business combinations, are being amortized over 5 to 15 years, using the straight-line method. Intangible asset amortization - cost of revenue includes amortization of finite-lived intangible assets related to developed and product technology utilized in our current product and service offerings and customer backlog.

Current wording

Our finite-lived intangible assets, acquired in business combinations, are being amortized over 3 to 15 years, using the straight-line method. Intangible asset amortization - cost of revenue includes amortization of finite-lived intangible assets related to developed and product technology utilized in our current product and service offerings and customer backlog.

Previous wording

Research and development expenses primarily include compensation expense, direct research and development expenses such as laboratory supplies and costs associated with setting up and conducting clinical studies at domestic and international sites, software development expenses, professional fees, depreciation and amortization, other miscellaneous expenses and allocation of facility and information technology expenses. Further, research and development expenses include costs to collect clinical samples and conduct clinical studies to develop and support our products and pipeline, as well as develop future technology. We expense all research and development costs in the periods in which they are incurred. We incurred a majority of our research and development expenses in the six months ended June 30, 2026 and the year ended December 31, 2025 in support of our early-stage products, including support for the development and validation of our TrueMRD platform, as well as our Prosigna LDT test, the development of new IVD products and discovery. Going forward, we expect to incur significant expense as we invest in the continued development of our innovation engine, early-stage products including our TrueMRD platform, required clinical studies and the development of current IVD tests.

Current wording

Research and development expenses primarily include compensation expense, direct research and development expenses such as laboratory supplies and costs associated with setting up and conducting clinical studies at domestic and international sites, software development expenses, professional fees, depreciation and amortization, other miscellaneous expenses and allocation of facility and information technology expenses. Further, research and development expenses include costs to collect clinical samples and conduct clinical studies to develop and support our products and pipeline, as well as develop future technology. We expense all research and development costs in the periods in which they are incurred. We incurred a majority of our research and development expenses in the nine months ended September 30, 2026 and the year ended December 31, 2025 in support of the development and validation of additional TrueMRD indications, enhancements to our current tests, the development of new IVD products and discovery. Going forward, we expect to incur significant expense as we invest in the continued development of our innovation engine.

Previous wording

Selling and marketing expenses consist of compensation expenses, direct marketing expenses, professional fees, other expenses such as travel and communications costs, as well as allocation of facility and information technology expenses. Our sales team of approximately 130 representatives is organized by business unit in the U.S., with separate teams calling on thyroid cancer physicians, urologic cancer physicians and breast medical oncologists. The business units have dedicated marketing support, as well as a marketing operations team that serves the commercial organization broadly. Prosigna sales outside of the U.S. are led by country managers and sales teams that call on laboratories and breast cancer oncologists.

Current wording

Selling and marketing expenses consist of compensation expenses, direct marketing expenses, professional fees, other expenses such as travel and communications costs, as well as allocation of facility and information technology expenses. Our sales team of approximately 142 representatives is organized by business unit in the U.S., with separate teams calling on thyroid cancer physicians, urologic cancer physicians and breast medical oncologists. The business units have dedicated marketing support, as well as a marketing operations team that serves the commercial organization broadly. Prosigna sales outside of the U.S. are led by country managers and sales teams that call on laboratories and breast cancer oncologists.

Previous wording

General and administrative expenses include compensation expenses for executive officers and administrative, billing personnel, professional fees for legal and audit services, occupancy costs, depreciation and amortization, and other expenses such as information technology, acquisition related costs and miscellaneous expenses, offset by allocation of facility and information technology expenses to other functions. We expect general and administrative expenses to continue to increase in absolute terms as we build our infrastructure to scale revenue growth while declining as a percentage of revenue.

Current wording

General and administrative expenses include compensation expenses for executive officers and administrative, billing personnel, professional fees for legal and audit services, including costs related to acquisitions, occupancy costs, depreciation and amortization, and other expenses such as information technology, acquisition related costs and miscellaneous expenses, offset by allocation of facility and information technology expenses to other functions. We expect general and administrative expenses to continue to increase in absolute terms as we build our infrastructure to scale revenue growth while declining as a percentage of revenue.

Previous wording

Other income (loss), net consists primarily of interest income from our cash held in interest bearing accounts and our short-term investments, realized and unrealized gains and losses on foreign currency transactions, settlement of escrow claims and, prior to the restructuring proceedings affecting Veracyte SAS in August 2025, French tax credits.

Current wording

Other income (loss), net consists primarily of interest income from our cash held in interest bearing accounts and our short-term investments, realized and unrealized gains and losses on foreign currency transactions, settlement of escrow claims, loss on the deconsolidation of Veracyte SAS and, prior to the restructuring proceedings affecting Veracyte SAS in August 2025, French tax credits.

Previous wording

Comparison of the three and six months ended June 30, 2026 and 2025 (in thousands of dollars, except percentages and test volume):

Current wording

Comparison of the three and nine months ended September 30, 2026 and 2025 (in thousands of dollars, except percentages and test volume):

Previous wording

Revenue increased $20.2 million for the three months ended June 30, 2026 compared to the same period in 2025. This was primarily due to a $23.4 million increase in testing revenue, partially offset by a $3.5 million decrease in our biopharmaceutical and other revenue. The 19% growth in testing revenue was primarily driven by a 14% volume increase, as well as improved ASP and prior period collections. The Biopharmaceutical and other revenue decrease wasdue to the discontinuation of biopharmaceutical services, contract manufacturing or contract development services previously conducted in France, following the restructuring proceedings affecting Veracyte SAS, as of August 2025.

Current wording

Revenue increased $64.6 million for the nine months ended September 30, 2026 compared to the same period in 2025. This was primarily due to a $69.8 million increase in testing revenue partially offset by a $6.9 million decrease in our biopharmaceutical and other revenue. The 20% growth in testing revenue was primarily driven by a 15% volume increase, as well as improved ASP and PPCs. The Biopharmaceutical and other revenue decrease wasdue to the discontinuation of biopharmaceutical services, contract manufacturing or contract development services previously conducted in France, following the restructuring proceedings affecting Veracyte SAS, as of August 2025.

Previous wording

Product revenue increased $0.3 million and $0.4 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025.

Current wording

Product revenue increased $1.3 million and $1.7 million for the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025.

Previous wording

Comparison of the three and six months ended June 30, 2026 and 2025 is as follows (in thousands of dollars, except percentages):

Current wording

Comparison of the three and nine months ended September 30, 2026 and 2025 is as follows (in thousands of dollars, except percentages):

Previous wording

Cost of testing revenue increased $3.9 million, or 12%, for the three months ended June 30, 2026 compared to the same period in 2025. The increase in cost of testing revenue was due to increased volume in testing, higher staffing to support higher volume and new test launches and the build out of infrastructure related to current and future growth expectations, and the assignment of customer service expenses directly to cost of revenue. These increases were partially offset by lab efficiencies and lower allocated expenses.

Current wording

Cost of testing revenue increased $4.7 million, or 14%, for the three months ended September 30, 2026 compared to the same period in 2025. The assignment of customer service expenses directly to cost of revenue contributed to $2.2 million of the increase. The remainder was due to increased volume in testing, higher staffing to support higher volume and new test launches, and the build out of infrastructure related to current and future growth expectations. These increases were partially offset by lab efficiencies and lower allocated expenses.

Previous wording

Cost of testing revenue increased $8.9 million, or 15%, for the six months ended June 30, 2026 compared to the same period in 2025. The increase in cost of testing revenue was due to increased volume in testing, higher staffing to support higher volume, the build out of infrastructure related to current and future growth expectations, and the assignment of customer service expenses directly to cost of revenue. These increases were partially offset by lab efficiencies and lower allocated expenses.

Current wording

Cost of testing revenue increased $13.6 million, or 14%, for the nine months ended September 30, 2026 compared to the same period in 2025. The assignment of customer service expenses directly to cost of revenue contributed to $6.2 million of the increase. The remainder was due to increased volume in testing, higher staffing to support higher volume, and the build out of infrastructure related to current and future growth expectations. These increases were partially offset by lab efficiencies and lower allocated expenses.

Previous wording

Cost of product revenue increased $0.8 million, or 44%, for the three months ended June 30, 2026 and increased $1.2 million, or 39%, for the six months ended June 30, 2026 compared to the same periods in 2025. The increase for the three and six months ended June 30, 2026 is primarily related to the transition to contract manufacturing of Prosigna kits.

Current wording

Cost of product revenue decreased $0.2 million, or 8%, for the three months ended September 30, 2026 and increased $1.0 million, or 16%, for the nine months ended September 30, 2026 compared to the same periods in 2025. The decrease for the three months ended September 30, 2026 is related to start up costs associated with the transition to contract manufacturing for the Prosigna kits in August 2025. The increase for the nine months ended September 30, 2026 is primarily related to the transition to contract manufacturing.

Previous wording

Cost of biopharmaceutical and other revenue includes labor costs, laboratory supplies and pass-through expenses incurred. Cost of biopharmaceutical and other revenue for the three and six months ended June 30, 2026 decreased by $3.4 million and

Current wording

Cost of biopharmaceutical and other revenue includes labor costs, laboratory supplies and pass-through expenses incurred. Cost of biopharmaceutical and other revenue for the three and nine months ended September 30, 2026 decreased by

Previous wording

$6.1 million, respectively, compared to the same periods in 2025, driven primarily by a continued decline in biopharmaceutical services, as well as contract development and manufacturing services projects as a result of the restructuring proceedings affecting Veracyte SAS that were underway throughout 2025.

Current wording

$0.9 million and $7.0 million, respectively, compared to the same periods in 2025, driven primarily by a continued decline in biopharmaceutical services, as well as contract development and manufacturing services projects as a result of the restructuring proceedings affecting Veracyte SAS that were underway throughout 2025.

Previous wording

Research and development expense increased $13.2 million, or 81%, for the three months ended June 30, 2026 compared to the same period in 2025. The increase was primarily due to a $6.5 million increase from the assignment of research and development related software expenses previously accounted for in general and administrative which had been partially allocated. This was due to these expenses now being fully dedicated to product development objectives. General and administrative expense allocations and compensation expense associated with added headcount and annual merit increases also increased. Spend supporting direct research and product development expense related to our ongoing development costs for our CLIA tests increased but was partially offset by the impact of the deconsolidation of Veracyte SAS in August 2025.

Current wording

Research and development expense increased $16.2 million, or 101%, for the three months ended September 30, 2026 compared to the same period in 2025. The increase was primarily due to a $6.5 million increase from the assignment of research and development related software expenses previously accounted for in general and administrative which had been partially allocated. This was due to these expenses now being fully dedicated to product development objectives. Compensation expense associated with added headcount and annual merit increases also increased as did spend supporting direct research and product development expense related to our ongoing development costs for our IVD and CLIA tests.

Previous wording

Research and development expense increased $22.6 million, or 66%, for the six months ended June 30, 2026 compared to the same period in 2025. The increase was primarily due to a $12.5 million increase from the assignment of research and development related software expenses previously accounted for in general and administrative which had been partially allocated. Spend supporting direct research and product development expense related to our ongoing development costs for our CLIA tests and MRD strategies increased but was partially offset by the impact of the deconsolidation of Veracyte SAS in August 2025.

Current wording

Research and development expense increased $38.7 million, or 78%, for the nine months ended September 30, 2026 compared to the same period in 2025. The increase was primarily due to a $19.0 million increase from the assignment of research and development related software expenses previously accounted for in general and administrative which had been partially allocated. Spend supporting direct research and product development expense related to our ongoing development costs for our CLIA tests and MRD strategies increased but was partially offset by the impact of the deconsolidation of Veracyte SAS in August 2025.

Previous wording

Selling and marketing expense increased $2.9 million, or 12%, for the three months ended June 30, 2026 compared to the same period in 2025. The increase was primarily due to annual compensation increases and headcount additions. Direct marketing expense increased primarily due to tradeshow costs and expenses related to the launch of new tests.

Current wording

Selling and marketing expense increased $4.2 million, or 17%, for the three months ended September 30, 2026 compared to the same period in 2025. The increase was primarily due to annual compensation increases and headcount additions. Direct marketing expense increased primarily due to expenses related to the launch of new tests and conference timing.

Previous wording

Selling and marketing expense increased $5.6 million, or 11%, for the six months ended June 30, 2026 compared to the same period in 2025. The increase was primarily due to annual merit increases and headcount additions. Direct marketing expense increased primarily due to website design costs and expenses related to the launch of Prosigna as an LDT.

Current wording

Selling and marketing expense increased $9.8 million, or 13%, for the nine months ended September 30, 2026 compared to the same period in 2025. The increase was primarily due to annual merit increases and headcount additions. Direct marketing expense increased primarily due to website design costs and expenses related to the launch of Prosigna as an LDT.

Previous wording

General and administrative expense decreased by $4.9 million for the three months ended June 30, 2026, compared to the same period in 2025. The results were impacted primarily by a $6.5 million decrease related to the assignment of software development expenses, previously included in General and administrative expense allocations, directly to research and development, the assignment of customer service expenses directly to cost of revenue, as well as a decline in professional fees related to lower legal, audit and tax fees in the quarter. These decreases were offset by hiring across billing and support functions to enable the growth and fewer allocations compared to the prior year.

Current wording

General and administrative expense increased by $2.0 million for the three months ended September 30, 2026, compared to the same period in 2025. The results were impacted primarily by a $6.5 million decrease related to the assignment of software development expenses, previously included in General and administrative expense allocations, directly to research and development and the assignment of customer service expenses directly to cost of revenue. These decreases were offset by hiring across billing and support functions, higher professional fees associated with the acquisitions of Convergent and certain assets, and fewer allocations compared to the prior year.

Previous wording

General and administrative expense decreased by $15.0 million for the six months ended June 30, 2026, compared to the same period in 2025. The results were impacted primarily by a $12.5 million decrease related to the assignment of software development expenses, previously included in General and administrative expense allocations, directly to research and development, the assignment of customer service expenses directly to cost of revenue, as well as a decline in professional fees related to lower legal, audit and tax fees. These decreases were offset by fewer allocations and reductions in the revaluation of contingent consideration related to the acquisition of C2i recognized in the prior year. General and administrative expenses related to occupancy costs and information technology costs, excluding software development, are allocated to general and administrative expense, selling and marketing expense, research and development expense, and cost of revenue based on the headcount and employee location.

Current wording

General and administrative expense decreased by $13.0 million for the nine months ended September 30, 2026, compared to the same period in 2025. The results were impacted primarily by a $19.0 million decrease related to the assignment of software development expenses, previously included in General and administrative expense allocations, directly to research and development, the assignment of customer service expenses directly to cost of revenue, as well as a decline in professional fees related to lower legal, audit and tax fees. These decreases were offset by fewer allocations and reductions in the revaluation of contingent consideration related to the acquisition of C2i recognized in the prior year. General and administrative expenses related to occupancy costs and information technology costs, excluding software development, are allocated to general and administrative expense, selling and marketing expense, research and development expense, and cost of revenue based on the headcount and employee location.

Previous wording

Other income, net, decreased $3.0 million for the three months ended June 30, 2026 compared to the same period in 2025, primarily due to a decrease of $3.7 million due to foreign currency revaluation, partially offset by an increase of $0.9 million from interest income.

Current wording

Other income, net, increased $8.6 million for the three months ended September 30, 2026 compared to the same period in 2025, primarily due to a loss in 2025 of $6.7 million due to the deconsolidation of Veracyte SAS, an increase of $1.0 million from interest income and an increase of $0.9 million due to foreign currency revaluation.

Previous wording

Other income, net, decreased $0.2 million for the six months ended June 30, 2026 compared to the same period in 2025, primarily due to a decrease of $5.2 million due to foreign currency revaluation, partially offset by the settlement of escrow claims of $4.2 million and an increase of $1.7 million from interest income.

Current wording

Other income, net, increased $8.4 million for the nine months ended September 30, 2026 compared to the same period in 2025, primarily due to a loss in 2025 of $6.7 million due to the deconsolidation of Veracyte SAS, the settlement of escrow claims of $4.2 million and an increase of $2.7 million from interest income, partially offset by a decrease of $4.3 million due to foreign currency revaluation.

Previous wording

As of June 30, 2026, we had cash and cash equivalents and short-term investments of $485.2 million. During the six months ended June 30, 2026, our cash and cash equivalents and short-term investments increased by $72.3 million. Historically, we have obtained financing primarily through sales of our equity securities. Beginning in 2023, our operations have been financed primarily by cash flows generated by our revenue. For the six months ended June 30, 2026, we had net income of $54.2 million, but we may not sustain profitability in the future. As of June 30, 2026, we had an accumulated deficit of $323.4 million.

Current wording

As of September 30, 2026, we had cash and cash equivalents and short-term investments of $370.5 million. During the nine months ended September 30, 2026, our cash and cash equivalents and short-term investments decreased by $42.4 million. Historically, we have obtained financing primarily through sales of our equity securities. Beginning in 2023, our operations have been financed primarily by cash flows generated by our revenue. For the nine months ended September 30, 2026, we had net income of $85.7 million. As of September 30, 2026, we had an accumulated deficit of $291.9 million.

Previous wording

We expect to continue to generate cash and our near- and longer-term liquidity requirements will continue to consist of costs to run our laboratories, research and development expenses, selling and marketing expenses, general and administrative expenses, working capital, capital expenditures, lease obligations, and general corporate expenses associated with the growth of our business. However, we may also use cash to acquire or invest in complementary businesses, technologies, services or products that would change our cash requirements. If we are not able to generate cash flows from our revenue to finance our cash requirements, we will need to finance future cash needs primarily through public or private equity offerings, debt financings, borrowings or strategic collaborations or licensing arrangements. If we are not able to secure additional financing when needed, or on terms that are favorable to us, we may have to delay, reduce the scope of or eliminate one or more research and development programs or selling and marketing initiatives, or forgo potential acquisitions or investments. In addition, we may have to work with a partner on one or more of our products or development programs, which could lower the economic value of those programs to us. Moreover, ongoing instability in the global credit markets or the banking system may impact our liquidity both in the short term and long term.

Current wording

We expect to continue to generate cash and our near- and longer-term liquidity requirements will continue to consist of costs to run our laboratories, research and development expenses, selling and marketing expenses, general and administrative expenses, working capital, capital expenditures, lease obligations, potential milestones associated with the Convergent Acquisition, and general corporate expenses associated with the growth of our business. However, we may also use cash to acquire or invest in complementary businesses, technologies, services or products that would change our cash requirements. If we are not able to generate cash flows from our revenue to finance our cash requirements, we will need to finance future cash needs primarily through public or private equity offerings, debt financings, borrowings or strategic collaborations or licensing arrangements. If we are not able to secure additional financing when needed, or on terms that are favorable to us, we may have to delay, reduce the scope of or eliminate one or more research and development programs or selling and marketing initiatives, or forgo potential acquisitions or investments. In addition, we may have to work with a partner on one or more of our products or development programs, which could lower the economic value of those programs to us. Moreover, ongoing instability in the global credit markets or the banking system may impact our liquidity both in the short term and long term.

Previous wording

We lease office and laboratory facilities in the U.S., including in South San Francisco and San Diego, California and Austin, Texas. Effective August 2025, in connection with the restructuring proceeding in Veracyte SAS, we are no longer a party to the lease in Marseille, France. The lease terms of our leases as of June 30, 2026 extend to March 2040 and contain extension of lease term and expansion options. As of June 30, 2026, the leases have a weighted average remaining lease term of 10.9 years and total future minimum lease payments of $71.1 million.

Current wording

We lease office and laboratory facilities in the U.S., including in South San Francisco, San Diego and Morgan Hill, California and Austin, Texas. Effective August 2025, in connection with the restructuring proceeding in Veracyte SAS, we are no longer a party to the lease in Marseille, France. The lease terms of our leases as of September 30, 2026 extend to March 2040 and contain extension of lease term and expansion options. As of September 30, 2026, the leases have a weighted average remaining lease term of 10.6 years and total future minimum lease payments of $70.7 million.

Previous wording

The following table summarizes our cash flows for the six months ended June 30, 2026 and 2025 (in thousands of dollars):

Current wording

The following table summarizes our cash flows for the nine months ended September 30, 2026 and 2025 (in thousands of dollars):

Previous wording

Cash provided by operating activities for the six months ended June 30, 2026 was $81.0 million. Our net income of $54.2 million includes non-cash charges of $26.8 million of stock-based compensation expense, $10.3 million of depreciation and amortization, of which $6.4 million was related to intangible asset amortization, non-cash lease expense of $1.4 million, amortization of discount on short-term investments of $1.3 million, non-cash gains of $0.7 million from the revaluation of contingent consideration, loss of $0.4 million on the disposal of fixed assets, and $0.1 million from the effect of foreign currency changes on operations. Cash used as a result of changes in operating assets and liabilities was $10.0 million, primarily composed of an increase in accounts receivable of $9.7 million, an increase in prepaid expenses and other current assets of $2.4 million and an increase in supplies of $2.1 million, partially offset by an increase in accounts payable of $3.8 million.

Current wording

Cash provided by operating activities for the nine months ended September 30, 2026 was $121.3 million. Our net income of $85.7 million includes non-cash charges of $40.8 million of stock-based compensation expense, $16.2 million of depreciation and amortization, of which $10.1 million was related to intangible asset amortization, $11.6 million of release of valuation allowance on deferred tax assets, non-cash lease expense of $2.1 million, amortization of discount on short-term investments of $2.4 million, non-cash gains of $1.1 million from the revaluation of contingent consideration and loss of $0.4 million on the disposal of fixed assets. Cash used as a result of changes in operating assets and liabilities was $8.8 million, primarily composed of an increase in accounts receivable of $12.0 million, an increase in prepaid expenses and other current assets of $4.1 million and an increase in supplies of $3.4 million, partially offset by an increase in accounts payable of $5.5 million and an increase in accrued liabilities and deferred revenue of $5.5 million.

Previous wording

Cash provided by operating activities for the six months ended June 30, 2025 was $39.0 million. Our net income of $6.1 million includes non-cash charges of $21.9 million of stock-based compensation expense, $10.9 million of depreciation and amortization, of which $6.5 million was related to intangible asset amortization, $20.5 million tied to the impairment of assets, non-cash lease expense of $1.6 million, non-cash gains of $2.9 million from the revaluation of contingent consideration, amortization of discount on short-term investments of $1.9 million and $5.1 million from the effect of foreign currency changes on operations. Cash used as a result of changes in operating assets and liabilities was $12.2 million, primarily composed of an increase in prepaid expenses and other current assets of $5.5 million, an increase in accounts receivable of $4.3 million, a decrease in accrued liabilities and deferred revenue of $2.1 million, and an increase in supplies and inventory of $2.9 million, partially offset by an increase in accounts payable of $3.1 million.

Current wording

Cash provided by operating activities for the nine months ended September 30, 2025 was $83.7 million. Our net income of $25.2 million includes non-cash charges of $32.7 million of stock-based compensation expense, $16.1 million of depreciation and amortization, of which $9.8 million was related to intangible asset amortization, $20.5 million tied to the impairment of assets, $3.9 million loss on the deconsolidation of Veracyte SAS, non-cash lease expense of $2.3 million, non-cash gains of $2.7 million from the revaluation of contingent consideration, $3.8 million from the effect of foreign currency changes on operations and amortization of discount on short-term investments of $2.6 million. Cash used as a result of changes in operating assets and liabilities was $7.8 million, primarily composed of an increase in prepaid expenses and other current assets of $6.4 million, an increase in accounts receivable of $3.9 million, an increase in supplies and inventory of $2.6 million, a decrease in operating lease liabilities of $1.7 million, and a decrease in accounts payable of $0.5 million, partially offset by an increase in accrued liabilities and deferred revenue of $7.0 million and a decrease in other assets of $0.3 million.

Previous wording

Cash used in investing activities for the six months ended June 30, 2026 was $141.5 million, primarily consisting of the purchase of $134.1 million of short-term investments and $5.8 million used in the purchase of property, plant and equipment.

Current wording

Cash used in investing activities for the nine months ended September 30, 2026 was $281.0 million, primarily consisting of business acquisitions for $153.2 million, the purchase of $118.0 million of short-term investments, and $8.2 million used in the purchase of property, plant and equipment.

Previous wording

Cash used in investing activities for the six months ended June 30, 2025 was $52.0 million, consisting of $48.9 million from the purchase and maturity of short-term investments and $3.1 million used in the purchase of property, plant and equipment.

Current wording

Cash used in investing activities for the nine months ended September 30, 2025 was $3.8 million, consisting of $5.9 million used in the purchase of property, plant and equipment, partially offset by net proceeds of $2.1 million from the purchase and maturity of short-term investments.

Previous wording

Cash used in financing activities for the six months ended June 30, 2026 was $2.5 million, consisting of $13.7 million in tax payments during the period related to the vesting of restricted stock units granted to employees, partially offset by $11.2 million in proceeds from the exercise of options to purchase our common stock and the purchase of stock under our Employee Stock Purchase Plan, or ESPP.

Current wording

Cash used in financing activities for the nine months ended September 30, 2026 was $3.0 million, consisting of $17.5 million in tax payments during the period related to the vesting of restricted stock units granted to employees, partially offset by $14.5 million in proceeds from the exercise of options to purchase our common stock and the purchase of stock under our Employee Stock Purchase Plan, or ESPP.

Previous wording

Cash used in financing activities for the six months ended June 30, 2025 was $7.1 million, consisting of $11.8 million in tax payments during the period related to the vesting of restricted stock units granted to employees, partially offset by $4.8 million in proceeds from the exercise of options to purchase our common stock and the purchase of stock under our ESPP.

Current wording

Cash used in financing activities for the nine months ended September 30, 2025 was $4.1 million, consisting of $14.6 million in tax payments during the period related to the vesting of restricted stock units granted to employees, partially offset by $10.6 million in proceeds from the exercise of options to purchase our common stock and the purchase of stock under our ESPP.