Law firm Levi & Korsinsky, LLP announced on Aug. 10, 2026, that it is investigating potential securities fraud claims against Myriad Genetics, Inc. (NASDAQ: MYGN) following a significant downgrade in financial outlook. The investigation centers on whether the company made materially false or misleading statements regarding its full-year 2026 performance between May 5, 2026, and early August 2026. Myriad Genetics reported Q2 2026 revenue of approximately $190.7 million, missing consensus estimates by 7% to 8%, and subsequently cut full-year revenue guidance by roughly $90 million at the midpoint while suspending adjusted EBITDA guidance entirely.

The core of the inquiry involves a stark divergence between management's public affirmations and subsequent actual results. On May 5, 2026, during its first-quarter earnings call, Chief Financial Officer Ben Wheeler reaffirmed the company's full-year 2026 financial guidance, projecting revenue of $860 million to $880 million and adjusted EBITDA of $37 million to $49 million. Chief Executive Officer Samraat Raha indicated that the company anticipated sequential revenue growth in the low single digits for the second quarter. However, actual performance fell short, with Q2 revenue declining from the prior quarter's $200.4 million.

Key Financial Discrepancies

Management attributed the shortfall to reimbursement pressure, collections issues, lower average revenue per test, and weaker prenatal performance. These operational headwinds were further highlighted by working capital metrics disclosed in the company's Form 10-Q for the quarter ended March 31, 2026, filed on May 6, 2026. The filing reported net cash used in operating activities of $15.7 million. Additionally, trade accounts receivable rose to $123.8 million, up from $115.3 million at December 31, 2025, suggesting potential collection pressures that may have preceded the revenue miss.

What the Numbers Show

The rapid reversal of guidance within a three-month window highlights significant volatility in Myriad Genetics' operational execution. The shift from reaffirming a $860-$880 million revenue band to cutting it to $770-$790 million suggests that the initial May 5 statements may not have accurately reflected the underlying business trajectory. Furthermore, the suspension of EBITDA guidance indicates that margin pressures or cost structures may have deteriorated more severely than disclosed during the Q1 earnings call. Investors are advised to gather brokerage records, including purchase dates, share quantities, and prices paid, to evaluate their potential eligibility for the ongoing investigation. Eligibility is determined by purchase date and documented losses, regardless of whether the investor still holds the shares.

Myriad Genetics Inc. (NASDAQ: MYGN) shares plunged 37.80% to $3.34 in after-hours trading on Thursday, reacting sharply to second-quarter 2026 results that featured an 11% revenue decline, a $38.9 million operating loss, and the suspension of full-year adjusted EBITDA guidance. The Salt Lake City-based molecular diagnostic company had closed regular session trading up 6.55% at $5.37 before the post-market sell-off. The steep discount reflects investor concern over persistent reimbursement pressures and volume declines in key segments, prompting the firm to lower its annual revenue outlook.

The market reaction underscores the severity of the headwinds facing Myriad Genetics, which reported Q2 revenue of $190.7 million, down from $214.1 million in the same period last year. CEO Sam Raha acknowledged that performance "fell short of expectations," citing increased payer friction and a 9% drop in average revenue per test as primary drivers. To address these challenges, the company is executing an efficiency program called Ascend, supported by a leading professional services firm, while maintaining strong laboratory operations.

Segment Performance Breakdown

The Cancer Care Continuum segment showed resilience with test volumes rising 6% year-over-year, yet revenue fell 11% to $114.1 million due to reimbursement decreases in hereditary cancer testing. Prenatal Health revenue dropped 16% to $39.8 million, driven by a 9% volume decline. Mental Health revenue, led by the GeneSight test, decreased 3% to $36.8 million despite a 4% volume increase, as aged receivable write-offs reduced average revenue per test by 6%.

Strategic Initiatives and Market Context

Despite the financial headwinds, Myriad Genetics advanced its precision oncology portfolio by launching Prolaris + AI, its first AI-enabled prostate cancer test, in partnership with PATHOMIQ. The company also expanded Precise MRD availability to colorectal and renal cancers and submitted a request to the Molecular Diagnostics Program (MolDX) for Medicare coverage of Precise MRD for breast cancer patients.

Trading metrics indicate a volatile period for MYGN shares, which have gained approximately 39.84% over the past 12 months but currently trade near their 52-week low of $3.53, against a high of $8.59. The company’s market capitalization stands at approximately $507.19 million. Benzinga Edge Stock Rankings note positive short- and medium-term price trends, though the long-term trend remains negative.

Revised Financial Outlook

Myriad Genetics has suspended its previous full-year 2026 Adjusted EBITDA guidance due to uncertainty in pricing trends. The updated guidance for the fiscal year is:

• Revenue: $770 million – $790 million (revised lower)
• Adjusted Gross Margin %: 66% – 67%

Gross margin for Q2 stood at 66.6%, down 460 basis points year-over-year. Operating expenses were $165.9 million, compared to $481.0 million in Q2 2025, which included non-cash impairment charges of $316.7 million. Cash and cash equivalents totaled $115.2 million at quarter-end.

What the Numbers Show

The divergence between flat test volumes (down only 1%) and an 11% revenue decline highlights severe pricing pressure rather than demand erosion. The 9% drop in average revenue per test is the critical metric driving the operating loss. While oncology volumes are growing, the inability to maintain reimbursement rates across hereditary cancer and mental health segments is compressing margins. The suspension of EBITDA guidance signals management’s caution regarding the trajectory of these reimbursement headwinds through the rest of FY26.