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As communicated previously, I purchased this position only to play a likely earnings pop and expected to sell it immediately. My exit is not a judgement on the near- or long-term prospects of the business, which is objectively well-positioned to continue growing and earning a durably higher valuation.

Exact Sciences easily beat Wall Street expectations of $688 million in Q1 2025 revenue by delivering $707 million. Importantly, the business delivered positive operating cash flow in the first quarter of the calendar year for the first time in its history. Management increased the midpoint of full-year 2025 revenue guidance from $3.055 billion to $3.095 billion (+$40 million).

Note: I've only exited this short-term position. I maintain a long-term position, and all previous Finch Trades in Exact Sciences remain active positions.

The Trade

I sold 223.76 shares of Exact Sciences at $53.05 per share on May 2, 2025.

This position was closed, resulting in a gain of 18.7% and $1,871. The S&P 500 gained 3.8% while the position was active, resulting in a net outperformance of 14.9% compared to passive investing. This will help bolster the overall performance of Finch Trades and help to offset more volatile, long-term positions in precommercial drug developers.

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Margin of Safety & Allocation

Exact Sciences is considered an Anchor position. The estimated fair valuation based on my current model is below:

• Market close May 1: $47.16 per share
• Modeled Fair Valuation: $87.88 per share
• Allocation Range: Up to 15%

Exact Sciences reported 185.755 million shares outstanding as of February 18, 2025. The modeled fair valuation above assumes 187.613 million shares outstanding, which is equivalent to 1% dilution.

Further Reading

• April 2025 Member Digest previewing Q1 2025 earnings from the coverage ecosystem