Business
CareDx Reports First Quarter 2025 Results
First Quarter Revenue of $84.7 Million, Increased 18% Year-Over-Year Grew Testing Services Volume to Approximately 47,100, Marking Seventh Consecutive
About this update from Caredx, Inc.
First Quarter Revenue of $84.7 Million , Increased 18% Year-Over-Year Grew Testing Services Volume to Approximately 47,100, Marking Seventh Consecutive Quarter of Sequential Testing Services Volume Growth BRISBANE, Calif. --(BUSINESS WIRE)-- CareDx, Inc. (Nasdaq: CDNA) today reported financial results for the first quarter ended March 31, 2025 . First Quarter Financial Highlights Reported first quarter revenue of $84.7 million , increased 18% year-over-year Testing services revenue of $61.9 million , increased 15% year-over-year, and testing services volume of approximately 47,100, increased 12% year-over-year GAAP net loss of $10.4 million , non-GAAP net income of $5.4 million , and positive adjusted EBITDA of $4.6 million , a significant improvement from the first quarter 2024 Cash, cash equivalents and marketable securities of $231 million , with no debt, as of March 31, 2025 Reaffirms full-year 2025 guidance of $365 million to $375 million in revenue and adjusted EBITDA of $29 million to $33 million , and 2027 target of $500 million in revenue and adjusted EBITDA of $100 million First Quarter Business Highlights Seventh consecutive quarter of sequential testing services volume growth Launched two expanded indications for AlloSure® Testing Services – AlloSure Heart for pediatric heart transplant patients under age 15, and AlloSure Kidney for simultaneous pancreas-kidney transplant (SPK) patients Submitted second manuscript of the SHORE (Surveillance HeartCare Outcomes Registry) study for publication to further build our evidence for coverage Presented AlloHeme™ data at TANDEM and EBMT conferences advancing our pipeline Completed the restructuring of our Revenue Cycle Management team to drive ASP growth Launched a strategic operations initiative to accelerate growth through enhanced integration with EPIC AURA EMR systems “We had another strong quarter marked by growth across all organs, led by kidney surveillance testing. Our increased sales footprint had a clear impact, and we saw continued progress in surveillance testing protocol adoption that we anticipate will have an impact in Q2,” said John W. Hanna , CareDx President and CEO. “I am pleased with the progress we continue to make with our pipeline, including the launch of two expanded indications for AlloSure and advancements in our AlloHeme trial for patients with hematologic malignancies presented at two conferences.” Q1 2025 Financial Results Total revenue for the three months ended March 31, 2025 , was $84.7 million , an increase of 18% compared to $72.0 million for the first quarter of 2024. Testing Services revenue for the first quarter 2025 was $61.9 million , including $1.1 million in write-off for aged receivable, an increase of 15% compared to $53.8 million for the first quarter of 2024. Excluding these aged receivable write-off, non-GAAP adjusted testing services revenue for the first quarter of 2025 was $63.0 million . Patient and Digital Solutions revenue for the first quarter of 2025 was $12.0 million , an increase of 24% compared to $9.6 million for the first quarter of 2024. Product revenue for the first quarter of 2025 was $10.8 million , an increase of 26% compared to $8.6 million for the first quarter of 2024. For the first quarter of 2025 GAAP net loss was $10.4 million compared to a GAAP net loss of $19.9 million in the first quarter of 2024. Basic and diluted GAAP net loss per share in the first quarter of 2025 was $0.19 , compared to basic and diluted GAAP net loss per share of $0.38 in the first quarter of 2024. Non-GAAP net income was $5.4 million in the first quarter of 2025 compared to a non-GAAP net loss of $1.4 million in the first quarter of 2024. Diluted non-GAAP net income per share was $0.09 in the first quarter of 2025 compared to a diluted non-GAAP net loss per share of $0.03 in the first quarter of 2024. Adjusted EBITDA income for the first quarter of 2025 was $4.6 million compared to an adjusted EBITDA loss of $1.9 million for the first quarter of 2024. 2025 Guidance For the full year 2025, CareDx expects revenue to be in the range of $365 million to $375 million . CareDx expects full year 2025 adjusted EBITDA gain to be in the range of $29 million to $33 million . About CareDx – The Transplant Company CareDx, Inc. , headquartered in Brisbane, California , is a leading precision medicine solutions company focused on the discovery, development, and commercialization of clinically differentiated, high-value healthcare solutions for transplant patients and caregivers. CareDx offers testing services, products, and digital healthcare solutions along the pre- and post-transplant patient journey and 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 2025. 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, 2024 filed by CareDx with the SEC on February 28, 2025 , the Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 filed by CareDx with the SEC on April 30, 2025 , 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 adjusted testing services revenue, 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 income tax expense, non-GAAP net income (loss), non-GAAP basic and diluted net income (loss) per share and adjusted EBITDA. A reconciliation of the forecasted range for adjusted EBITDA for 2025 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. We define non-GAAP net income (loss) and per share results as the GAAP net loss and per share results excluding the impacts of stock-based compensation; 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 and certain other charges. We define adjusted EBITDA as non-GAAP net income (loss) 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. 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. CareDx, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except share and per share data) Three Months Ended March 31 , 2025 2024 Revenue: Testing services revenue $61,921 $53,837 Product revenue 10,810 8,594 Patient and digital solutions revenue 11,954 9,618 Total revenue 84,685 72,049 Operating expenses: Cost of testing services 15,113 13,632 Cost of product 5,586 5,344 Cost of patient and digital solutions 7,716 6,958 Research and development 18,524 18,711 Sales and marketing 22,991 19,830 General and administrative 22,769 30,140 Litigation settlement expense 5,360 — Total operating expenses 98,059 94,615 Loss from operations (13,374) (22,566) Other income: Interest income, net 2,784 2,885 Other income (expense), net 295 (290) Total other income 3,079 2,595 Loss before income taxes (10,295) (19,971) Income tax (expense) benefit (58) 83 Net loss $(10,353) $(19,888) Net loss per share: Basic $(0.19) $(0.38) Diluted $(0.19) $(0.38) Weighted-average shares used to compute net loss per share: Basic 55,262,459 51,692,358 Diluted 55,262,459 51,692,358 CareDx, Inc. Condensed Consolidated Balance Sheets (Unaudited) (In thousands) March 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $88,745 $114,689 Marketable securities 142,172 145,964 Accounts receivable 71,485 64,605 Inventory 22,929 19,503 Prepaid and other current assets 24,908 7,071 Total current assets 350,239 351,832 Property and equipment, net 32,729 33,552 Operating leases right-of-use assets 26,390 24,340 Intangible assets, net 37,247 38,184 Goodwill 40,336 40,336 Restricted cash 550 585 Other assets 2,147 2,221 Total assets $489,638 $491,050 Liabilities and stockholders’ equity Current liabilities: Accounts payable $8,072 $7,686 Accrued compensation 14,067 38,333 Accrued litigation settlement expense 20,250 — Accrued and other liabilities 42,895 43,352 Total current liabilities 85,284 89,371 Deferred tax liability 129 164 Contingent consideration 160 174 Operating lease liability, less current portion 24,072 22,263 Other liabilities 644 645 Total liabilities 110,289 112,617 Commitments and contingencies Stockholders’ equity: Common stock 51 51 Additional paid-in capital 1,022,982 1,013,193 Accumulated other comprehensive loss (7,089) (8,569) Accumulated deficit (636,595) (626,242) Total stockholders’ equity 379,349 378,433 Total liabilities and stockholders’ equity $489,638 $491,050 CareDx, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) (In thousands) Three Months Ended March 31 , 2025 2024 Cost of testing services reconciliation: GAAP cost of testing services $15,113 $13,632 Stock-based compensation expense (363) (457) Acquisition related-amortization of purchased intangibles (347) (329) Non-GAAP cost of testing services $14,403 $12,846 Cost of product reconciliation: GAAP cost of product $5,586 $5,344 Stock-based compensation expense (231) (317) Acquisition related-amortization of purchased intangibles (412) (420) Non-GAAP cost of product $4,943 $4,607 Cost of patient and digital solutions reconciliation: GAAP cost of patient and digital solutions $7,716 $6,958 Stock-based compensation expense (220) (372) Acquisition related-amortization of purchased intangibles (152) (271) Other income — 5 Non-GAAP cost of patient and digital solutions $7,344 $6,320 Research and development expenses reconciliation: GAAP research and development expenses $18,524 $18,711 Stock-based compensation expense (1,359) (1,760) Other charges — (25) Non-GAAP research and development expenses $17,165 $16,926 Sales and marketing expenses reconciliation: GAAP sales and marketing expenses $22,991 $19,830 Stock-based compensation expense (2,584) (3,044) Acquisition related-amortization of purchased intangibles (628) (633) Other charges — (8) Non-GAAP sales and marketing expenses $19,779 $16,145 General and administrative expenses reconciliation: GAAP general and administrative expenses $28,129 $30,140 Stock-based compensation expense (4,174) (10,623) Change in estimated fair value of contingent consideration (46) (319) Acquisition related fees and expenses — (35) Litigation settlement expense (5,360) — Other income — 66 Non-GAAP general and administrative expenses $18,549 $19,229 Total other income reconciliation: GAAP other income $3,079 $2,595 Non-GAAP other income $3,079 $2,595 Income tax (expense) benefit reconciliation: GAAP income tax (expense) benefit $(58) $83 Tax effect related to amortization of purchased intangibles (99) (102) Non-GAAP income tax expense $(157) $(19) CareDx, Inc. GAAP and Non-GAAP Operating Expenses (Unaudited) (In thousands) Three Months Ended March 31 , 2025 2024 GAAP operating expenses: Research and development $18,524 $18,711 Sales and marketing 22,991 19,830 General and administrative 22,769 30,140 Total GAAP operating expenses $64,284 $68,681 Non-GAAP operating expenses: Research and development $17,165 $16,926 Sales and marketing 19,779 16,145 General and administrative 18,549 19,229 Total Non-GAAP operating expenses $55,493 $52,300 CareDx, Inc. Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin (Unaudited) (In thousands, except percentages) Three Months Ended March 31 , 2025 2024 Total revenue $84,685 $72,049 GAAP cost of sales 28,415 25,934 GAAP gross profit 56,270 46,115 Stock-based compensation expense 814 1,146 Other income — (5) Acquisition related-amortization of purchased intangibles 911 1,020 Non-GAAP gross profit $57,995 $48,276 Non-GAAP gross margin % 68.5% 67.0% CareDx, Inc. Reconciliation of GAAP Testing Services Revenue to Non-GAAP Adjusted Testing Services Revenue (Unaudited) (In thousands) Three Months Ended March 31 , 2025 2024 Adjusted testing services revenue reconciliation: Testing services revenue (GAAP) $61,921 $53,837 Revenue associated with test reports delivered in prior periods 1,076 (3,746) Adjusted testing services revenue (Non-GAAP) $62,997 $50,091 CareDx, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) (In thousands, except share and per share data) Three Months Ended March 31 , 2025 2024 GAAP net loss $(10,353) $(19,888) Stock-based compensation expense 8,931 16,573 Acquisition related-amortization of purchased intangibles 1,539 1,653 Acquisition related fees and expenses — 35 Change in estimated fair value of contingent consideration 46 319 Other income and charges — (38) Tax effect related to amortization of purchased intangibles (99) (102) Litigation settlement expense 5,360 — Non-GAAP net income (loss) $5,424 $(1,448) GAAP basic and diluted net loss per share $(0.19) $(0.38) Non-GAAP basic net income (loss) per share $0.10 $(0.03) Non-GAAP diluted net income (loss) per share $0.09 $(0.03) Shares used in computing non-GAAP basic net income (loss) per share 55,262,459 51,692,358 Shares used in computing non-GAAP diluted net income (loss) per share 58,315,877 51,692,358 CareDx, Inc. Reconciliation of Non-GAAP to Adjusted EBITDA (Unaudited) (In thousands) Three Months Ended March 31 , 2025 2024 Non-GAAP net income (loss) $5,424 $(1,448) Interest income (2,784) (2,885) Income tax expense 157 19 Depreciation expense 2,061 2,168 Other (income) expense, net (295) 290 Adjusted EBITDA $4,563 $(1,856) View source version on businesswire.com : https://www.businesswire.com/news/home/20250430465612/en/ CareDx, Inc. Media Relations Anna Czene 818-731-2203 [email protected] Investor Relations Caroline Corner [email protected] Source: CareDx, Inc.