CareDx Announces Fourth Quarter and Full Year 2025 Financial Results

About this update from Caredx, Inc.

Full Year 2025 Total Revenue of $380 Million Increased 14% Year-Over-Year Expects Full Year 2026 Revenue of $420 Million to $444 Million BRISBANE, Calif. --(BUSINESS WIRE)-- CareDx, Inc. (Nasdaq: CDNA) — The Transplant Company™, a leading precision medicine company focused on the discovery, development, and commercialization of clinically differentiated, high‑value healthcare solutions for transplant patients and caregivers, today reported financial results for the fourth quarter and full year ended December 31, 2025 . Fourth Quarter 2025 Financial Highlights Revenue of $108 million , an increase of 25% year-over-year Testing services revenue of $78 million , an increase of 23% year-over-year, and testing services volume of approximately 53,000, an increase of 17% year-over-year Patient and digital solutions revenue of $16.8 million and product revenue of $13.3 million , representing year-over-year growth of 47% and 17%, respectively Average revenue per test of approximately $1,480 including approximately $5 million in prior period revenue GAAP net loss of $4 million , compared to GAAP net income of $88 million for the fourth quarter of 2024 Adjusted EBITDA of $7 million , compared to $10 million for the fourth quarter of 2024; adjusted EBITDA includes approximately $7 million of operating expenses for compensation in lieu of equity grants for non-executives in the fourth quarter of 2025 Cash flow from operations of $21.4 million Share repurchases of $12 million during the quarter of 773,000 shares at an average price of $15.79 per share Recent Business Highlights Published the third SHORE registry manuscript in the Journal of Heart and Lung Transplantation , reinforcing the clinical evidence for HeartCare and the prognostic value of combined molecular testing Advanced Epic Aura integrations, with seven transplant centers live and approximately twenty implementations underway, supporting improved workflow integration across transplant programs Launched ImmuneScape™ through a strategic collaboration with 10x Genomics , establishing a multiomics discovery platform to inform next‑generation precision transplant diagnostics Announced pivotal validation data for AlloHeme™, advancing CareDx’s expansion beyond solid organ transplantation into cell therapy and hematologic malignancies Full Year 2025 Financial Highlights Revenue of $380 million , an increase of 14% year-over-year Testing services revenue of $275 million , an increase of 10% year-over-year, and testing services volume of approximately 200,000, an increase of 14% year-over-year Patient and digital solutions revenue of $57 million and product revenue of $48 million , representing year-over-year growth of 31% and 19%, respectively GAAP net loss of $21 million , non-GAAP net income of $32 million , and adjusted EBITDA of $32 million Cash flow from operations of $42 million Cash, cash equivalents and marketable securities of approximately $200 million as of December 31, 2025 Share repurchases of $88 million during the year of 5.8 million shares at an average price of $15.16 per share “We delivered a strong finish to 2025, reflecting disciplined execution across the business and continued momentum in our core testing services, patient and digital solutions, and lab products,” said John W. Hanna , President and CEO of CareDx . “As we enter 2026, we believe we are well positioned to build on this momentum and continue delivering meaningful value for transplant patients, clinicians, and shareholders.” Q4 2025 Financial Results Total revenue was $108 million , compared to $87 million in the fourth quarter of 2024, an increase of 25%. Testing services revenue was $78 million , compared to $64 million in the fourth quarter of 2024, an increase of 23%. Patient and digital solutions revenue was $17 million , compared to $11 million in the fourth quarter of 2024, an increase of 47%. Product revenue was $13 million , compared to $11 million in the fourth quarter of 2024, an increase of 17%. GAAP net loss was $4 million , compared to GAAP net income of $88 million in the fourth quarter 2024. Basic and diluted GAAP net loss per share was $0.08 , compared to diluted GAAP net income per share of $1.51 in the fourth quarter of 2024. Non-GAAP net income was $6 million , compared to $11 million in the fourth quarter of 2024. Diluted non-GAAP net income per share was $0.12 compared to $0.18 in the fourth quarter of 2024. Adjusted EBITDA was $7 million , compared to $10 million in the fourth quarter of 2024. Adjusted EBITDA includes approximately $7 million of operating expenses for compensation in lieu of equity grants for non-executives in the fourth quarter of 2025. Full Year 2025 Financial Results Total revenue for the full year ended December 31, 2025 , was $380 million , an increase of 14% compared to $334 million in 2024. Testing services revenue for the full year 2025 was $275 million , an increase of 10% compared with $249 million in 2024. Patient and digital solutions revenue for the full year 2025 was $57 million , an increase of 31% compared to $44 million in 2024. Product revenue for the full year 2025 was $48 million , an increase of 19% compared to $41 million in 2024. GAAP net loss for the full year 2025 was $21 million , compared to GAAP net income of $53 million in 2024, which included a $96 million reversal of a litigation accrual associated with damages related to the alleged infringement of patent '544 accrued in 2023. Diluted GAAP net loss per share for the full year 2025 was $0.40 , compared to diluted GAAP net income per share of $0.93 in the full year 2024. Non-GAAP net income was $32 million for the full year 2025, compared to a non-GAAP net income of $31 million for the full year ended 2024. Diluted non-GAAP net income per share was $0.58 in the full year of 2025, compared to a diluted non-GAAP net income per share of $0.55 in the full year of 2024. Adjusted EBITDA for the full year of 2025 was $32 million , compared to adjusted EBITDA of $28 million for the full year of 2024. Cash and cash equivalents and marketable securities were $201 million as of December 31, 2025 , net of $88 million in share repurchases carried out during the year. For additional information regarding non-GAAP financial measures discussed herein, please see “Use of Non-GAAP Financial Measures,” “Reconciliation of GAAP to Non-GAAP Financial Measures,” “GAAP and Non-GAAP Operating Expenses”, “Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin,” and “Reconciliation of Non-GAAP to Adjusted EBITDA” below. 2026 Guidance For the full year 2026, CareDx expects revenue to be in the range of $420 million to $444 million , which includes an estimated 6-month impact of the Medicare LCD of approximately $7.5 million . The Company expects full year 2026 adjusted EBITDA to be in the range of $30 million to $45 million . About CareDx CareDx is a precision medicine company dedicated to improving outcomes for transplant patients and advancing organ health. The Company’s integrated solutions include non‑invasive molecular testing for heart, kidney, and lung transplants; laboratory products; digital health technologies; and patient solutions that support care before and after transplant. CareDx is the leading provider of genomics‑based information for transplant patients. For more information, please visit www.caredx.com . Forward Looking Statements This press release includes forward-looking statements, including expectations regarding the achievement of CareDx’s financial and operational goals and its expectations and prospects for 2026. These forward-looking statements are based upon information that is currently available to CareDx and its current expectations, speak only as of the date hereof, and are subject to numerous risks and uncertainties, all of which are difficult to predict and many of which are beyond CareDx’s control, that could cause the actual results to differ materially from those projected, including general economic and market factors, and global economic and marketplace uncertainties, among others discussed in CareDx’s filings with the Securities and Exchange Commission (the “SEC”), including, but not limited to, the Annual Report on Form 10-K for the fiscal year ended December 31, 2025 to be filed by CareDx with the SEC on February 25, 2026 , and other reports that CareDx has filed with the SEC . Any of these may cause CareDx’s actual results, performance, or achievements to differ materially and adversely from those anticipated or implied by CareDx’s forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements. CareDx expressly disclaims any obligation, except as required by law, or undertaking to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise. Use of Non-GAAP Financial Measures CareDx has presented in this release certain financial information in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) and also on a non-GAAP basis, including non-GAAP cost of testing services, non-GAAP cost of product, non-GAAP cost of patient and digital solutions, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP other income, net, non-GAAP income tax expense, non-GAAP gross profit, non-GAAP gross margin (%), non-GAAP operating expenses, non-GAAP net income, non-GAAP basic and diluted net income per share and adjusted EBITDA. These non-GAAP financial measures are not meant to be considered superior to or a substitute for financial measures calculated in accordance with GAAP, and investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. We define non-GAAP net income and per share results as the GAAP net income (loss) and per share results excluding the impacts of stock-based compensation expense; acquisition-related amortization of purchased intangible assets and related tax effects; costs involved with completing an acquisition; changes in estimated fair value of contingent consideration; litigation settlement expense; transformational initiative costs; and certain other charges presented in the reconciliation in this release. We define adjusted EBITDA as non-GAAP net income before interest income, income tax expense, depreciation expense and other (income) expense, net. We are presenting these non-GAAP financial measures to assist investors in assessing our operating results through the eyes of management and because we believe that these measures provide an additional tool for investors to use in comparing our core business operating results over multiple periods where certain items may vary independent of business performance. Management believes this non-GAAP information is useful for investors, when considered in conjunction with CareDx’s GAAP financial statements, because management uses such information internally for its operating, budgeting and financial planning purposes. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of CareDx’s operating results as reported under GAAP. These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. These non-GAAP financial measures are not necessarily comparable to similarly titled measures presented by other companies. A reconciliation between GAAP and non-GAAP financial information is provided immediately following the financial tables. A reconciliation of the forecasted range for adjusted EBITDA for 2026 is not included in this release due to the number of variables in the projected range and because we are currently unable to quantify accurately certain amounts that would be required to be included in the U.S. GAAP measure or the individual adjustments for such reconciliation. CareDx, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except share and per share data) Three Months Ended December 31 , Twelve Months Ended December 31 , 2025 2024 2025 2024 Revenue: Testing services revenue $ 78,373 $ 63,819 $ 274,495 $ 249,381 Product revenue 13,256 11,367 48,377 40,783 Patient and digital solutions revenue 16,757 11,393 56,933 43,621 Total revenue 108,386 86,579 379,805 333,785 Operating expenses: Cost of testing services 16,821 14,224 62,045 55,611 Cost of product 6,757 5,580 22,953 23,381 Cost of patient and digital solutions 11,934 8,392 38,241 30,704 Research and development 19,306 16,614 71,429 72,510 Sales and marketing 30,924 21,341 102,643 81,975 General and administrative 28,684 32,349 107,565 125,139 Litigation settlement expense — (96,300) 5,710 (96,300) Total operating expenses 114,426 2,200 410,586 293,020 (Loss) income from operations (6,040) 84,379 (30,781) 40,765 Other income: Interest income, net 2,013 3,053 9,174 11,765 Other income, net 264 436 524 329 Total other income 2,277 3,489 9,698 12,094 (Loss) income before income taxes (3,763) 87,868 (21,083) 52,859 Income tax expense (345) (171) (271) (310) Net (loss) income $ (4,109) $ 87,697 $ (21,354) $ 52,549 Net (loss) income per share (Note 3): Basic $ (0.08) $ 1.62 $ (0.40) $ 1.00 Diluted $ (0.08) $ 1.51 $ (0.40) $ 0.93 Weighted-average shares used to compute net (loss) income per share: Basic 51,124,846 54,283,644 53,287,546 52,773,247 Diluted 51,124,846 58,221,755 53,287,546 56,620,590 CareDx, Inc. Condensed Consolidated Balance Sheets (Unaudited) (In thousands) As of December 31 , 2025 2024 Assets Current assets: Cash and cash equivalents $ 65,429 $ 114,689 Marketable securities 111,779 145,964 Accounts receivable 42,628 64,605 Inventory 26,705 19,503 Prepaid and other current assets 10,591 7,071 Total current assets 257,132 351,832 Property and equipment, net 32,971 33,552 Operating lease right-of-use assets 22,760 24,340 Marketable securities, non-current 24,165 — Intangible assets, net 31,960 38,184 Goodwill 40,336 40,336 Restricted cash 551 585 Other assets 3,353 2,221 Total assets $ 413,228 $ 491,050 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 9,988 $ 7,686 Accrued compensation 38,107 38,333 Accrued and other liabilities 41,754 43,352 Total current liabilities 89,849 89,371 Deferred tax liability 181 164 Contingent consideration 161 174 Operating lease liabilities, less current portion 19,679 22,263 Other liabilities 257 645 Total liabilities 110,127 112,617 Commitments and contingencies Stockholders’ equity: Common stock 50 51 Additional paid-in capital 1,043,925 1,013,193 Accumulated other comprehensive loss (5,515) (8,569) Accumulated deficit (735,359) (626,242) Total stockholders’ equity 303,101 378,433 Total liabilities and stockholders’ equity $ 413,228 $ 491,050 CareDx, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) (In thousands) Three Months Ended December 31 , Twelve Months Ended December 31 , 2025 2024 2025 2024 Cost of testing services reconciliation: GAAP cost of testing services $ 16,821 $ 14,224 $ 62,045 $ 55,611 Stock-based compensation expense (272) (328) (1,263) (1,560) Restructuring costs — — (120) — Acquisition related-amortization of purchased intangibles (347) (329) (1,386) (1,316) Non-GAAP cost of testing services $ 16,202 $ 13,567 $ 59,276 $ 52,735 Cost of product reconciliation: GAAP cost of product $ 6,757 $ 5,580 $ 22,953 $ 23,434 Stock-based compensation expense (73) (94) (464) (870) Acquisition related-amortization of purchased intangibles (451) (410) (1,751) (1,660) Restructuring costs — — (175) (53) Non-GAAP cost of product $ 6,233 $ 5,076 $ 20,563 $ 20,851 Cost of patient and digital solutions reconciliation: GAAP cost of patient and digital solutions $ 11,934 $ 8,392 $ 38,241 $ 30,656 Stock-based compensation expense (96) (228) (624) (1,276) Acquisition related-amortization of purchased intangibles (152) (171) (610) (850) Restructuring costs — (18) (166) (18) Other income — — — 5 Non-GAAP cost of patient and digital solutions $ 11,686 $ 7,975 $ 36,841 $ 28,517 Research and development expenses reconciliation: GAAP research and development expenses $ 19,306 $ 16,614 $ 71,429 $ 72,504 Stock-based compensation expense (1,131) (1,338) (5,043) (6,501) Restructuring costs — (84) (174) (99) Other charges — — — (25) Non-GAAP research and development expenses $ 18,175 $ 15,192 $ 66,212 $ 65,879 Sales and marketing expenses reconciliation: GAAP sales and marketing expenses $ 30,924 $ 21,341 $ 102,643 $ 81,975 Stock-based compensation expense (1,579) (2,278) (8,091) (11,035) Acquisition related-amortization of purchased intangibles (671) (625) (2,602) (2,520) Transformational initiative costs* (429) — (612) — Restructuring costs — (257) (221) (257) Other charges — — — (8) Non-GAAP sales and marketing expenses $ 28,245 $ 18,181 $ 91,117 $ 68,155 General and administrative expenses reconciliation: GAAP general and administrative expenses $ 28,684 $ (63,951) $ 113,275 $ 28,840 Stock-based compensation expense (4,939) (12,245) (19,380) (45,164) Change in estimated fair value of contingent consideration (156) (170) (703) (931) Acquisition related fees and expenses — — (204) (40) Litigation settlement expense — 96,300 (5,710) 96,300 Restructuring costs — (1,356) (34) (1,356) Transformational initiative costs* — — (2,212) — Impairment of intangible asset (2,258) — Other income (charges) $ — $ — $ — $ 22 Non-GAAP general and administrative expenses $ 23,589 $ 18,578 $ 82,774 $ 77,671 Total other income reconciliation: GAAP other income $ 2,277 $ 3,489 $ 9,698 $ 12,094 Other income — (500) — (500) Non-GAAP other income $ 2,277 $ 2,989 $ 9,698 $ 11,594 Income tax benefit (expense) reconciliation: GAAP income tax expense $ (345) $ (171) $ (271) $ (310) Tax effect related to amortization of purchased intangibles (112) (98) (431) (400) Non-GAAP income tax expense $ (457) $ (269) $ (702) $ (710) * Transformational initiative costs consist of consulting expenses which relate to our ongoing transformation strategy that we have undertaken as a series of initiatives focused on operational excellence, enterprise-wide efficiency, and long-term strategic growth, including rebranding costs. CareDx, Inc. GAAP and Non-GAAP Operating Expenses (Unaudited) (In thousands) Three Months Ended December 31 , Twelve Months Ended December 31 , 2025 2024 2025 2024 GAAP operating expenses: Research and development $ 19,306 $ 16,614 $ 71,429 $ 72,504 Sales and marketing 30,924 21,341 102,643 81,975 General and administrative 28,684 (63,951) 113,275 28,840 Total GAAP operating expenses $ 78,914 $ (25,996) $ 287,347 $ 183,319 Non-GAAP operating expenses: Research and development $ 18,175 $ 15,192 $ 66,212 $ 65,879 Sales and marketing 28,245 18,181 91,117 68,155 General and administrative 23,589 18,578 82,774 77,671 Total Non-GAAP operating expenses $ 70,009 $ 51,951 $ 240,103 $ 211,705 CareDx, Inc. Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin (Unaudited) (In thousands, except percentages) Three Months Ended December 31 , Twelve Months Ended December 31 , 2025 2024 2025 2024 GAAP total revenue $ 108,386 $ 86,579 $ 379,805 $ 333,785 GAAP cost of sales 35,512 28,196 123,239 109,696 GAAP gross profit 72,874 58,383 256,566 224,089 GAAP gross margin % 67% 67% 68% 67% Stock-based compensation expense 441 650 2,351 3,706 Restructuring costs — 18 461 71 Other income — — — (5) Acquisition related-amortization of purchased intangibles 950 910 3,747 3,826 Non-GAAP gross profit $ 74,265 $ 59,961 $ 263,125 $ 231,687 Non-GAAP gross margin % 69% 69% 69% 69% CareDx, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) (In thousands, except share and per share data) Three Months Ended December 31 , Twelve Months Ended December 31 , 2025 2024 2025 2024 GAAP net income (loss) $ (4,109) $ 87,697 $ (21,354) $ 52,549 Stock-based compensation expense 8,090 16,511 34,864 66,406 Acquisition related-amortization of purchased intangibles 1,621 1,535 6,349 6,346 Acquisition related fees and expenses — — 204 40 Change in estimated fair value of contingent consideration 156 170 703 931 Other income and charges — (500) — (494) Tax effect related to amortization of purchased intangibles (112) (98) (431) (400) Impairment of intangible asset — — 2,258 — Transformational initiative costs* 429 — 2,824 — Restructuring costs — 1,715 890 1,783 Litigation settlement expense — (96,300) 5,710 (96,300) Non-GAAP net income $ 6,075 $ 10,730 $ 32,017 $ 30,861 GAAP basic net income (loss) per share $ (0.08) $ 1.62 $ (0.40) $ 1.00 GAAP diluted net income (loss) per share $ (0.08) $ 1.51 $ (0.40) $ 0.93 Non-GAAP basic net income per share $ 0.12 $ 0.20 $ 0.60 $ 0.58 Non-GAAP diluted net income per share $ 0.12 $ 0.18 $ 0.58 $ 0.55 Shares used in computing non-GAAP basic net income per share 51,124,846 54,283,644 53,287,546 52,773,247 Shares used in computing non-GAAP diluted net income per share 52,772,780 58,221,755 55,413,710 56,620,590 * Transformational initiative costs consist of consulting expenses which relate to our ongoing transformation strategy that we have undertaken as a series of initiatives focused on operational excellence, enterprise-wide efficiency, and long-term strategic growth, including rebranding costs. CareDx, Inc. Reconciliation of Non-GAAP to Adjusted EBITDA (Unaudited) (In thousands) Three Months Ended December 31 , Twelve Months Ended December 31 , 2025 2024 2025 2024 GAAP net income (loss) $ (4,109) $ 87,697 $ (21,354) $ 52,549 Stock-based compensation expense 8,090 16,511 34,864 66,406 Acquisition related-amortization of purchased intangibles 1,621 1,535 6,349 6,346 Acquisition related fees and expenses — — 204 40 Change in estimated fair value of contingent consideration 156 170 703 931 Other income and charges — (500) — (494) Tax effect related to amortization of purchased intangibles (112) (98) (431) (400) Impairment of intangible asset — — 2,258 — Transformational initiative costs* 429 — 2,824 — Restructuring costs — 1,715 890 1,783 Litigation settlement expense — (96,300) 5,710 (96,300) Non-GAAP net income 6,075 10,730 32,017 30,861 Interest income (2,013) (3,053) (9,174) (11,765) Income tax expense 457 269 702 710 Depreciation expense 2,261 1,824 8,667 7,848 Other expense (income), net (264) 64 (524) 171 Adjusted EBITDA $ 6,517 $ 9,834 $ 31,689 $ 27,825 * Transformational initiative costs consist of consulting expenses which relate to our ongoing transformation strategy that we have undertaken as a series of initiatives focused on operational excellence, enterprise-wide efficiency, and long-term strategic growth, including rebranding costs. View source version on businesswire.com : https://www.businesswire.com/news/home/20260224132013/en/ CareDx, Inc. Media Relations Natasha Moshirian Wagner [email protected] Investor Relations Caroline Corner [email protected] Source: CareDx, Inc.

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