Caris Life Sciences Reports Second Quarter 2025 Financial Results
Rhea-AI Summary
Caris Life Sciences (NASDAQ: CAI) reported strong Q2 2025 financial results, with total revenue reaching $181.4 million, up 81.3% year-over-year. The company completed 50,032 clinical therapy selection cases, a 22% increase from Q2 2024. Notable improvements include a gross margin of 62.7% and positive Adjusted EBITDA of $16.7 million.
The company achieved significant milestones, surpassing 900,000+ profiles and 600,000+ total matched profiles. Despite reporting a net loss of $71.8 million (including $37.1 million in one-time IPO-related expenses), Caris generated positive operating cash flow of $7.3 million and free cash flow of $5.9 million.
Looking ahead, Caris projects full-year 2025 revenue between $675-685 million, representing 64-66% growth, with clinical therapy selection volume expected to grow 19-21% compared to 2024.
Positive
- Revenue grew 81.3% year-over-year to $181.4 million
- Gross margin improved significantly to 62.7%, up 2,514 basis points
- Achieved positive Adjusted EBITDA of $16.7 million
- Generated positive operating cash flow of $7.3 million and free cash flow of $5.9 million
- Successfully raised $678.9 million through pre-IPO financing and IPO
- Clinical case volume increased 22% to 50,032 cases
- Strong projected full-year revenue growth of 64-66%
Negative
- Net loss of $71.8 million, including $37.1 million in one-time IPO-related expenses
- Operating expenses increased 25.9% to $131.7 million
- Net loss per share widened to $7.97 from $2.54 year-over-year
- Total outstanding debt remains significant at $373.7 million
News Market Reaction
On the day this news was published, CAI gained 5.61%, reflecting a notable positive market reaction. Argus tracked a peak move of +22.6% during that session. Our momentum scanner triggered 20 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $495M to the company's valuation, bringing the market cap to $9.31B at that time. Trading volume was elevated at 2.2x the daily average, suggesting notable buying interest.
Data tracked by StockTitan Argus on the day of publication.
Second Quarter 2025 Financial Highlights
- Reported total revenue of
$181.4 million 81.3% over the corresponding prior year period. - Completed 50,032 clinical therapy selection cases, an increase of
22.0% over corresponding prior year period. - Reported gross margin of
62.7% , a 2,514 bps improvement over corresponding prior year period. - Reported net loss of
$71.8 million $37.1 million - Achieved positive Adjusted EBITDA of
$16.7 million - Achieved positive net cash flow from operating activities of
$7.3 million $5.9 million
"Our second quarter results show the strength of our comprehensive approach and we look forward to continuing to build on this momentum into the second half of 2025," said David D. Halbert, Founder, Chairman and CEO of Caris Life Sciences.
Recent Operating Highlights
- Surpassed 900,000+ profiles and 600,000+ total matched profiles.
- 529,000+ Whole Exome and 580,000+ Whole Transcriptome profiles.
- Welcomed LSU LCMC Health Cancer Center as the 97th member of the Caris Precision Oncology Alliance.
- Published landmark Caris Assure platform paper:
- Validation of an AI-enabled exome/transcriptome liquid biopsy platform for early detection, MRD, disease monitoring, and therapy selection for solid tumors
- Published a study evaluating the largest real-world cohort of tissue-agnostic indications:
- Real-world evidence provides clinical insights into tissue-agnostic therapeutic approvals
- Published original data in the New England Journal of Medicine independently validating findings on tumor-infiltrating clonal hematopoiesis (TI-CH).
- Published manuscript on development and validation of proprietary GPSai.
- GPSai: A clinically validated AI tool for tissue of origin prediction during routine tumor profiling
- Raised
$159.4 million $519.5 million
Second Quarter 2025 Summary Financial Results
(amounts in thousands, except case volume, average selling price ("ASP") and per share data) | |||||||
Q2 2025 | Q2 2024 | % Change Y/Y | |||||
| |||||||
Total revenue | $ 181,398 | $ 100,049 | 81.3 | % | |||
Molecular profiling services | 162,924 | 87,656 | 85.9 | % | |||
Pharma research & developmental services | 18,474 | 12,393 | 49.1 | % | |||
| |||||||
Total clinical case volume | 50,032 | 40,998 | 22.0 | % | |||
MI Profile for therapy selection volume | 42,886 | 36,426 | 17.7 | % | |||
Caris Assure for therapy selection volume | 7,146 | 4,572 | 56.3 | % | |||
| |||||||
Total clinical ASP | $ 3,256 | $ 2,138 | 52.3 | % | |||
MI Profile for therapy selection ASP | 3,379 | 2,207 | 53.1 | % | |||
Caris Assure for therapy selection ASP | 2,519 | 1,587 | 58.7 | % | |||
| |||||||
Total gross margin | 62.7 | % | 37.5 | % | 25.2 | % | |
Total operating expenses | $ 131,674 | $ 104,565 | 25.9 | % | |||
Total loss from operations | $ (17,989) | $ (67,011) | 73.2 | % | |||
Net loss | $ (71,790) | $ (66,186) | (8.5) | % | |||
Net loss per share attributable to common shareholders, basic and diluted | $ (7.97) | $ (2.54) | (213.8) | % | |||
Net cash provided by (used in) operating activities | $ 7,288 | $ (62,926) | 111.6 | % | |||
| |||||||
Non-GAAP measures(1) | |||||||
Adjusted EBITDA | $ 16,713 | $ (50,916) | 132.8 | % | |||
Free cash flow | $ 5,902 | $ (65,514) | 109.0 | % | |||
| |||||||
| |||||||
Consolidated balance sheet data | June 30, 2025 | December 31, 2024 | Change | ||||
Cash, cash equivalents, restricted cash, and marketable securities | $ 724,936 | $ 70,229 | $ 654,707 | ||||
Total outstanding debt, net of debt discounts | $ 373,706 | $ 379,528 | $ (5,822) | ||||
| |
(1) | See "Non-GAAP Measures" below. |
Second Quarter 2025 Financial Results
Total revenue was
The increase in total revenue was driven primarily by an
Gross profit, calculated as total revenue less cost of services, for the three months ended June 30, 2025, and 2024, was
Operating expenses were
Net loss was
Net cash provided by operating activities was
2025 Financial Outlook and Guidance
Caris Life Sciences expects full year 2025 revenue to be in the range of
Conference Call Information
Event: Caris Second Quarter 2025 Financial Results Conference Call
Date: Tuesday, August 12, 2025
Time: 3:30 p.m. CT (4:30 p.m. ET)
Webcast Link: https://edge.media-server.com/mmc/p/hfsyg967
Accompanying materials will be posted on our investor relations website at https://investor.carislifesciences.com prior to the conference call. A replay of the conference call will be available on our investor relations website shortly after the conclusion of the call.
About Caris Life Sciences
Caris Life Sciences® (Caris) is a leading, patient-centric, next-generation AI TechBio company and precision medicine pioneer that is actively developing and commercializing innovative solutions to transform healthcare. Through comprehensive molecular profiling (Whole Exome and Whole Transcriptome Sequencing) and the application of advanced AI and machine learning algorithms at scale, Caris has created the large-scale, multimodal clinico-genomic database and computing capability needed to analyze and further unravel the molecular complexity of disease. This convergence of next-generation sequencing, AI and machine learning technologies, and high-performance computing provides a differentiated platform to develop the latest generation of advanced precision medicine diagnostic solutions for early detection, diagnosis, monitoring, therapy selection and drug development.
We intend to use the investor page of our website, https://investor.carislifesciences.com, as a distribution channel of material information about the Company and for complying with our disclosure obligations under Regulation FD. The information we post on our investor webpage may be deemed material. Accordingly, investors should subscribe to our investor alerts, in addition to following our press releases, SEC filings, public conference calls and webcasts.
Forward-Looking Statements
This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. All statements other than statements of historical facts contained in this press release are forward-looking statements, including statements regarding our business, solutions, plans, objectives, goals, industry trends, financial outlook and guidance. In some cases forward-looking statements can be identified by words such as "may," "will," "should," "would," "expect," "plan," "anticipate," "could," "intend," "target," "project," "potential," "contemplate," "believe," "estimate," "predict," "potential" or "continue" or similar expressions.
You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in these forward-looking statements are reasonable based on information currently available to us, we cannot guarantee that the future results, discoveries, levels of activity, performance or events and circumstances reflected in forward-looking statements will be achieved or occur. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond our control. Risks and uncertainties that could cause our actual results to differ materially from those indicated or implied by the forward-looking statements in this press release include, among other things: developments in the precision medicine industry; our future financial performance, results of operations or other operational results or metrics; development, validation and timing of future solutions; commercial market acceptance for our solutions and our ability to meet resulting demand; the rapidly evolving competitive environment in which we operate; third-party payer reimbursement and coverage decisions related to our solutions; our ability to protect and enhance our intellectual property; regulatory requirements, decisions or approvals (including the timing and conditions thereof) related to our solutions; reliance on third-party suppliers; our compliance with laws and regulations; the outcome of government investigations and litigation; risks related to our substantial indebtedness; and our ability to hire and retain key personnel as well as risks, uncertainties, and other factors described in the section titled "Risk Factors" and elsewhere in the prospectus filed with the Securities and Exchange Commission on June 20, 2025 in connection with our initial public offering, as updated in our Quarterly Report on Form 10-Q filed on or about August 12, 2025, and in our other filings we make with the SEC from time to time. We undertake no obligation to update any forward-looking statements to reflect changes in events, circumstances or our beliefs after the date of this press release, except as required by law.
Non-GAAP Measures
We use Adjusted EBITDA and free cash flow, financial measures not calculated in accordance with generally accepted accounting principles in
We define Adjusted EBITDA as net loss, adjusted to exclude interest income, interest expense, changes in fair value of financial instruments, other expense, net, the provision for (benefit from) income taxes, depreciation and amortization, and stock-based compensation expense. We use Adjusted EBITDA in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance. We believe Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors. Adjusted EBITDA provides a useful measure for period-to-period comparisons of our business, as it removes the effect of certain non-cash expenses and certain variable charges.
We define free cash flow as net cash used in operating activities less purchases of property and equipment. We believe free cash flow is a useful measure of liquidity that provides an additional basis for assessing our ability to generate cash. A reconciliation of the non-GAAP financial measures used in this press release to the respective comparable GAAP financial measures, can be found below.
Caris Life Sciences, Inc. Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited)
| |||||||
(amounts in thousands, except share and per share data) | Three Months Ended June 30, | Six Months Ended June 30, | |||||
2025 | 2024 | 2025 | 2024 | ||||
| |||||||
Revenue: | |||||||
Molecular profiling services | $ 162,924 | $ 87,656 | $ 277,006 | $ 160,890 | |||
Pharma research and development services | 18,474 | 12,393 | 25,308 | 19,837 | |||
Total revenue | 181,398 | 100,049 | 302,314 | 180,727 | |||
Costs and operating expenses: | |||||||
Cost of Services - Molecular profiling services | 65,321 | 59,431 | 126,215 | 112,324 | |||
Cost of Services - Pharma research and development services | 2,392 | 3,064 | 5,350 | 4,732 | |||
Selling and marketing expense | 42,260 | 38,710 | 82,089 | 78,319 | |||
General and administrative expense | 64,367 | 41,068 | 116,486 | 85,422 | |||
Research and development expense | 25,047 | 24,787 | 48,114 | 59,164 | |||
Total costs and operating expenses | 199,387 | 167,060 | 378,254 | 339,961 | |||
Loss from operations | (17,989) | (67,011) | (75,940) | (159,234) | |||
Other income (expense), net: | |||||||
Interest income | 1,618 | 2,640 | 2,121 | 4,408 | |||
Interest expense | (19,208) | (13,674) | (31,990) | (22,964) | |||
Changes in fair value of financial instruments | (17,870) | 12,000 | (50,203) | 936 | |||
Other expense, net | (18,341) | (141) | (18,358) | (360) | |||
Total other income (expense), net | (53,801) | 825 | (98,430) | (17,980) | |||
Loss before income taxes and provision for income taxes | (71,790) | (66,186) | (174,370) | (177,214) | |||
Provision for income taxes | — | — | — | — | |||
Net loss | (71,790) | (66,186) | (174,370) | (177,214) | |||
Other comprehensive income, net of tax: | |||||||
Unrealized gain on available-for-sale securities | — | — | — | 7 | |||
Foreign currency translation adjustments | 424 | 92 | 459 | 100 | |||
Comprehensive loss | (71,366) | (66,094) | (173,911) | (177,107) | |||
| |||||||
Net loss attributable to common shareholders: | |||||||
Net loss | (71,790) | (66,186) | (174,370) | (177,214) | |||
Deemed dividend from Series D redeemable convertible preferred stock | (384,436) | — | (384,436) | — | |||
Adjustments of redeemable convertible preferred stock to redemption value | (60,971) | (23,594) | (85,433) | (46,707) | |||
Net loss attributable to common shareholders | $ (517,197) | $ (89,780) | $ (644,239) | $ (223,921) | |||
| |||||||
Net loss per share attributable to common shareholders, basic and diluted | $ (7.97) | $ (2.54) | $ (12.80) | $ (6.34) | |||
Weighted-average shares used in computing net loss per share attributable to common shareholders, basic and diluted | 64,918,988 | 35,371,424 | 50,348,947 | 35,342,180 | |||
Caris Life Sciences, Inc. Condensed Consolidated Balance Sheets (unaudited)
| |||
(amounts in thousands, except share data) | As of June 30, | As of December 31, | |
2025 | 2024 | ||
| |||
Assets | |||
Current assets: | |||
Cash, cash equivalents, and restricted cash | $ 720,444 | $ 65,442 | |
Short-term marketable securities | 2,249 | 2,201 | |
Accounts receivable | 50,889 | 88,244 | |
Supplies | 40,613 | 39,572 | |
Prepaid expenses and other current assets | 19,124 | 20,270 | |
Total current assets | 833,319 | 215,729 | |
Property and equipment, net | 61,315 | 67,817 | |
Goodwill | 19,344 | 19,344 | |
Other assets | 41,080 | 40,844 | |
Total assets | $ 955,058 | $ 343,734 | |
Liabilities, Redeemable Convertible Preferred Stock, and Shareholders' Equity (Deficit) | |||
Current liabilities: | |||
Accounts payable | $ 28,728 | $ 27,791 | |
Accrued expenses and other current liabilities | 61,357 | 77,542 | |
Current portion of indebtedness | 95 | 60,090 | |
Total current liabilities | 90,180 | 165,423 | |
Long-term indebtedness, net of debt discounts | 373,611 | 319,438 | |
Warrant liabilities | — | 91,642 | |
Other long-term liabilities | 38,363 | 44,418 | |
Total liabilities | 502,154 | 620,921 | |
Commitments and contingencies | |||
Redeemable convertible preferred stock: | |||
Series A preferred stock, par value 2024; no and 485,795,293 shares issued and outstanding as of June 30, 2025 and December 31, 2024; and aggregate liquidation preference as of December 31, 2024 | — | 709,261 | |
Series B preferred stock, par value 2024; no and 29,629,630 shares issued and outstanding as of June 30, 2025 and December 31, 2024; and aggregate liquidation preference as of December 31, 2024 | — | 42,963 | |
Series C preferred stock, par value 2024; no and 116,200,835 shares issued and outstanding as of June 30, 2025 and December 31, 2024; aggregate liquidation preference as of December 31, 2024 | — | 408,715 | |
Series D preferred stock, par value 2024; no and 102,516,283 shares issued and outstanding as of June 30, 2025 and December 31, 2024; and aggregate liquidation preference as of December 31, 2024 | — | 1,060,712 | |
Redeemable convertible preferred stock | — | 2,221,651 | |
Shareholders' equity (deficit): | |||
Preferred stock, 2024, respectively; no shares issued and outstanding as of June 30, 2025 and December 31, 2024 | — | — | |
Common stock December 31, 2024, respectively; 282,711,176 and 36,686,819 shares issued as of June 30, 2025 and December 31, 2024, respectively; 281,090,538 and 36,504,319 shares outstanding as of June 30, 2025 and December 31, 2024, respectively; shares issued and outstanding include 43,605 and 662,000 unvested shares subject to repurchase as of June 30, 2025 and December 31, 2024, respectively | 282 | 38 | |
Treasury stock at cost, 1,620,638 and 182,500 shares of common stock as of June 30, 2025 and December 31, 2024, respectively | (16,917) | (330) | |
Additional paid-in capital | 3,123,888 | — | |
Related party promissory note receivable | — | (26,456) | |
Accumulated deficit | (2,655,018) | (2,472,300) | |
Accumulated other comprehensive income | 669 | 210 | |
Total shareholders' equity (deficit) | 452,904 | (2,498,838) | |
Total liabilities, redeemable convertible preferred stock, and shareholders' equity (deficit) | $ 955,058 | $ 343,734 | |
Caris Life Sciences, Inc. Condensed Consolidated Statement of Cash Flows (unaudited)
| |||
(amounts in thousands) | Six Months Ended June 30, | ||
2025 | 2024 | ||
| |||
Cash flows from operating activities | |||
Net loss | $ (174,370) | $ (177,214) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 13,454 | 29,315 | |
Stock-based compensation expense | 42,984 | 8,943 | |
Non-cash operating lease expense | 2,936 | 2,888 | |
Amortization of debt discounts | 9,700 | 3,322 | |
Changes in fair value of financial instruments | 50,203 | (937) | |
Loss on debt extinguishment | 17,930 | — | |
Other | 1,231 | 2,133 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 37,040 | (16,904) | |
Supplies | (2,621) | 7,504 | |
Prepaid expenses and other current assets | (2,265) | (1,383) | |
Other assets | 334 | 430 | |
Accounts payable | (1,925) | 2,623 | |
Accrued expenses and other liabilities | (18,681) | 2,429 | |
Net cash used in operating activities | (24,050) | (136,851) | |
| |||
Cash flows from investing activities | |||
Maturities of marketable securities | — | 61,376 | |
Purchases of property and equipment | (4,075) | (4,326) | |
Net cash provided by (used in) investing activities | (4,075) | 57,050 | |
| |||
Cash flows from financing activities | |||
Payments made on finance lease obligations | (44) | (110) | |
Proceeds from exercise of stock options | 2,624 | 603 | |
Payment of taxes withheld from net settlement of exercised options | (1,658) | — | |
Payment of deferred offering costs | (2,045) | (492) | |
Proceeds from the 2023 term loan, net of issuance costs | — | 199,978 | |
Purchase of treasury stock | (22) | — | |
Issuance of Series E Preferred Stock, net of issuance costs | 87,637 | — | |
Issuance of Series F Preferred Stock, net of issuance costs | 33,601 | — | |
Issuance of the 2025 Convertible Notes, net of issuance costs | 27,865 | — | |
Issuance of the 2025 Warrants | 10,270 | — | |
Payments from 2023 term loan amendment fee | (4,000) | — | |
Proceeds from initial public offering, net of underwriting discounts and commissions | 528,459 | — | |
Net cash provided by financing activities | 682,687 | 199,979 | |
| |||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 97 | 13 | |
Net increase in cash, cash equivalents, and restricted cash | 654,659 | 120,191 | |
| |||
Cash, cash equivalents, and restricted cash at beginning of period | 68,028 | 60,007 | |
Cash, cash equivalents, and restricted cash at end of period | $ 722,687 | $ 180,198 | |
Reconciliation of GAAP Net Loss to Adjusted EBITDA (unaudited)
| |||||||
(amounts in thousands) | Three Months Ended June 30, | Six Months Ended June 30, | |||||
2025 | 2024 | 2025 | 2024 | ||||
| |||||||
Net loss | $ (71,790) | $ (66,186) | $ (174,370) | $ (177,214) | |||
Interest income | (1,618) | (2,640) | (2,121) | (4,408) | |||
Interest expense | 19,208 | 13,674 | 31,990 | 22,964 | |||
Changes in fair value of financial instruments | 17,870 | (12,000) | 50,203 | (936) | |||
Other expense, net | 18,341 | 141 | 18,358 | 360 | |||
Provision for income taxes | — | — | — | — | |||
Depreciation and amortization expense | 6,409 | 11,610 | 13,454 | 29,315 | |||
Stock-based compensation expense | 28,293 | 4,485 | 42,984 | 8,943 | |||
Adjusted EBITDA | $ 16,713 | $ (50,916) | $ (19,502) | $ (120,976) | |||
Reconciliation of Net Cash Used in Operating Activities to Free Cash Flow (unaudited)
| |||||||
(amounts in thousands) | Three Months Ended June 30, | Six Months Ended June 30, | |||||
2025 | 2024 | 2025 | 2024 | ||||
Net cash provided by (used in) operating activities | $ 7,288 | $ (62,926) | $ (24,050) | $ (136,851) | |||
Less: purchases of property and equipment | (1,386) | (2,588) | (4,075) | (4,326) | |||
Free cash flow | $ 5,902 | $ (65,514) | $ (28,125) | $ (141,177) | |||
Caris Life Sciences Media:
Corporate Communications
CorpComm@CarisLS.com
214.294.5606
Investor Relations:
Narendra Chokshi
Senior Vice President, Corporate Development
nchokshi@carisls.com
917.689.3511
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SOURCE Caris Life Sciences
FAQ
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