Just been going through my watchlist and noticed Exact Sciences had their Q4 earnings drop. Stock barely moved on the news, up just 0.07% after the announcement, which is interesting given the mixed results.

So here's what stood out to me: revenues actually beat expectations. Q4 hit $878.4 million, up 23% year over year, and full year came in at $3.25 billion with 17.7% growth. The Screening segment pulled in $695.1 million (up 26%), and Precision Oncology did $183.2 million (up 14%). Those are solid top-line numbers.

But here's where it gets messier. They posted a net loss of 21 cents per share in Q4, worse than the 6 cent loss last year. Full year EPS was 7 cents versus a 23 cent loss in 2024, so at least they improved year over year. Gross margins expanded 106 basis points to 70.1%, which is positive. Problem is operating expenses are climbing hard - R&D jumped 96%, and adjusted operating loss widened to $82.2 million from $40.8 million.

They're sitting on $964.7 million in cash, down from $1.04 billion a year ago. The big story is they're being acquired by Abbott, deal supposed to close Q2 2026 pending regulatory approval.

Not sure why the stock didn't react more. Revenues beating is usually good news, but the expanding losses are hard to ignore. Worth keeping on my watchlist to see how the Abbott merger plays out.