Shares dropped 16.8% following the quarter, reflecting investor disappointment with margin compression and cautious outlook despite steady revenue growth and reaffirmed guidance.

• Q1 revenue of just over $200 million came within guided range, driven by 10% and 16% growth in hereditary cancer testing volumes in affected and unaffected populations, respectively.
• GeneSight mental health test volume grew 7% year-over-year, marking the fourth consecutive quarter of mid-to-high single-digit growth.
• Prenatal testing volumes declined year-over-year but management targets a recovery in the second half of 2026.
• Gross margin held at 69%, consistent with full-year expectations, but adjusted EBITDA loss of $4.5 million and EPS loss of $0.09 signal margin pressure amid significant commercial and R&D investments.
• The company reaffirmed 2026 guidance, expecting low single-digit sequential revenue growth and positive adjusted EBITDA, but cautious outlook and ongoing investments weighed on investor sentiment.