CAI · Caris Life Sciences, Inc.

0002019410-26-000044

Summary

Caris Life Sciences reported Q1 2026 revenue of $216.2M and achieved operating income of $5.3M with a 2.4% margin, driven by gross profit growth primarily from molecular profiling services, while generating $22.5M in free cash flow amid capacity expansion.

Key takeaways

Operating income of $5.3M yielded a 2.4% margin, marking profitability from scaled revenue outpacing cost of services growth.
Net income was -$510K with diluted EPS of $0.00, reflecting controlled expenses despite investments in growth.
Operating cash flow of $32.9M generated $22.5M free cash flow after $10.3M capex, supporting lab capacity expansion.
Management believes existing cash and anticipated operating cash flows suffice for 12+ months of operating and capex needs.
Overhead allocation to cost of services and operating expenses reflects headcount and facility usage as capacity expands.

Full analysis

The company generated net cash provided by operating activities of $32.9 million, resulting in free cash flow of $22.5 million after $10.3 million in capital expenditures. These capex investments support ongoing efforts to expand laboratory capacity, as management notes that capital expenditures and cost of services may increase accordingly. Overhead expenses like rent, utilities, and depreciation are allocated to cost of services and operating categories based on headcount and facility usage, ensuring costs track operational scale.