0001217234-26-000033
SEC filingRevenue grew 39% YoY to $118M, driven by 48% testing services growth; net income turned positive to $3M.
For the three months ended March 31, 2026, total revenue increased 39% to $117.7 million from $84.7 million in the same period of 2025. The growth was primarily driven by a 48% surge in testing services revenue, which reached $91.4 million. Testing volume grew 17% year-over-year to approximately 54,900 tests, and revenue outpaced volume due to $17.7 million in additional net collections from prior-period tests recognized under ASC 606, partly offset by a $3.4 million reserve for refunds to payors. Product revenue declined 4% to $10.3 million on lower NGS kit sales, while patient and digital solutions revenue rose 33% to $16.0 million, supported by pharmacy sales and digital adoption (Ottr).
Gross profit improved to $84.1 million (71.4% margin) from $56.3 million (66.4% margin) in the prior year, as revenue mix shifted toward higher-margin testing services and cost efficiencies were realized in product (cost down 13%) and testing services (cost up only 13% vs 48% revenue growth). Research and development expenses increased 16% to $21.4 million, reflecting higher personnel costs. Sales and marketing rose 32% to $30.4 million, and general and administrative expenses grew 34% to $30.5 million, both driven by staffing and stock-based compensation. Litigation settlement expense dropped to $0.6 million from $5.4 million. Operating income turned positive to $1.2 million versus a $13.4 million loss, and net income was $2.8 million compared to a $10.4 million net loss.
No explicit financial guidance was provided for future periods. Management highlighted a $250.0 million shelf registration for potential capital raises and two share repurchase programs: $50.0 million authorized May 2025 (with $12.2 million remaining) and a new $100.0 million program authorized April 2026, effective April 30. The company believes its $198.1 million cash and marketable securities balance, combined with expected cash from operations, will sustain operations for at least 12 months. Strategic priorities include expanding the transplant testing portfolio, growing patient and digital solutions, and investing in R&D for new offerings.
As of March 31, 2026, CareDx held $77.9M in cash and cash equivalents and $120.2M in marketable securities (held-to-maturity), totaling $198.1M in liquid assets. Total assets were $411.1M, while total liabilities were $97.5M, resulting in stockholders' equity of $313.5M. The company has no debt, with lease liabilities of $24.5M (current $6.7M, non-current $17.8M). Inventory stood at $26.4M, and deferred revenue was $5.6M.
CareDx has operating lease commitments of $27.6M, with maturities through 2033. The weighted-average remaining lease term is 3.82 years, and the discount rate is 7.0%. Additionally, the company has royalty commitments under license agreements ranging from low-single to low-double digits on net sales of covered products. A license and collaboration agreement for iBox software includes revenue sharing if revenues are generated. Contingent consideration liabilities total $0.3M as of March 31, 2026, down from $1.8M at year-end due to a $1.5M payment.
During Q1 2026, CareDx did not repurchase any shares. The remaining authorization under the May 2025 Repurchase Program is $12.2M. Subsequent to quarter-end, on April 24, 2026, the Board authorized a new $100.0M repurchase program over two years. Capital expenditures were $3.8M in Q1. The company also paid $1.5M in contingent consideration. There are no dividends.
CareDx operates as a single reportable segment. Total revenue for Q1 2026 was $117.7M, up 39% YoY. Testing services revenue was $91.4M, product revenue $10.3M, and patient & digital solutions $16.0M. Geographically, United States revenue was $113.6M (96.5% of total) and Rest of World $4.1M. Net income was $2.8M, compared to a loss of $10.4M in the prior year period.
CareDx's operating cash flow turned positive in Q1 2026, reaching $4,333K compared to a loss of $26,584K in Q1 2025. This improvement is driven by a net income of $2,809K and lower working capital outflows, particularly in accrued compensation. Capital expenditures increased to $3,819K from $1,630K, reflecting investment in property and equipment. Investing activities generated $11,059K as maturities of marketable securities ($54,728K) exceeded purchases ($39,850K). Financing activities used $2,911K, primarily for tax withholdings on stock awards and contingent consideration. Free cash flow is not explicitly stated but can be approximated as $514K (operating cash flow less capex). Overall, the cash flow statement indicates improved cash generation from operations and prudent management of marketable securities.