Company: VCYT
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001384101-25-000060
Chunk: 47

Company: VERACYTE, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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,222)(46)%Cost of biopharmaceutical and other revenue:    Compensation expense$1,240 $1,462 $(222)(15)%License fees and royalties— 149 (149)(100)%Depreciation and amortization48 78 (30)(38)%Other expenses996 722 274 38 %Allocations414 427 (13)(3)%Total$2,698 $2,838 $(140)(5)%Intangible asset amortization - cost of revenue$2,585 $2,915 $(330)(11)%

Cost of testing revenue increased $2.3 million, or 9%, for the three months ended March 31, 2025 compared to the same period in 2024. The increase in cost of testing revenue was due to increased volume in testing, higher staffing to support testing performance and the build out of infrastructure related to current and future growth expectations, primarily related to Decipher Prostate and Afirma tests.

Cost of product revenue decreased $1.2 million, or 46%, for the three months ended March 31, 2025 compared to the same period in 2024, driven by lower costs associated with the transition of manufacturing our IVD kits to our Marseille, France facilities and lower consumption of inventory.

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 months ended March 31, 2025 decreased by $0.1 million compared to the same period in 2024, driven by reductions of staffing and variable expenses related to projects. 

26

Research and development

Comparison of the three months ended March 31, 2025 and 2024 is as follows (in thousands of dollars, except percentages):

 Three Months Ended March 31, 20252024Change%Research and development expense:    Compensation expense$9,748 $9,085 $663 7 %Direct research and development expense4,141 3,874 267 7 %Depreciation and amortization431 239 192 80 %Other expenses1,384 1,280 104 8 %Allocations2,016 1,487 529 36 %Total$17,720 $15,965 $1,755 11 %

Research and development expense increased