Castle Biosciences Reports Fourth Quarter and Full–Year 2025 Results
Rhea-AI Summary
Castle Biosciences (Nasdaq: CSTL) reported full-year 2025 revenue of $344.2M, exceeding guidance, with core test report volumes up sharply. Core tests (DecisionDx-Melanoma, TissueCypher) grew 37% year-over-year; TissueCypher test reports rose 86% in 2025. The company ended 2025 with $299.5M in cash and marketable securities and provided 2026 revenue guidance of $340M–$350M.
Notable items include a one-time $20.1M accelerated amortization adjustment, the discontinuation of IDgenetix in May 2025, and a Medicare coverage change for DecisionDx-SCC effective April 24, 2025.
Positive
- Core test reports +37% year-over-year (2025)
- TissueCypher test reports +86% year-over-year (2025)
- Cash and marketable securities of $299.5M at Dec 31, 2025
- Revenue excluding DecisionDx-SCC and IDgenetix +34% year-over-year (2025)
Negative
- Net loss of $24.2M in 2025 versus net income of $18.2M in 2024
- Adjusted EBITDA declined to $44.0M in 2025 from $75.0M in 2024
- Discontinued IDgenetix (May 2025) reduced test volumes and revenue
Key Figures
Market Reality Check
Peers on Argus
CSTL’s 2.97% gain occurred alongside mixed peer moves: CDNA and MYGN showed notable strength, while PSNL traded lower. Momentum scanners only flagged 1 sector peer (OPK), reinforcing this as a stock-specific move tied to the earnings print rather than a broad diagnostics rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 19 | AdvanceAD-Tx validation | Positive | -6.8% | Prospective JAAD study showed AdvanceAD-Tx predicts JAK inhibitor responders in dermatitis. |
| Feb 05 | Earnings date notice | Neutral | -7.3% | Announcement of timing for Q4 and full-year 2025 earnings release and call. |
| Jan 11 | Preliminary 2025 results | Positive | +0.8% | Preliminary 2025 revenue seen above prior guidance with strong core test growth. |
| Dec 19 | Inducement equity grants | Neutral | -0.4% | RSU inducement grants for new employees under Nasdaq Listing Rule 5635(c)(4). |
| Dec 17 | Uveal melanoma study | Positive | +1.6% | Large COOG study showed DecisionDx-UM + PRAME outperform NGS mutation analysis for UM outcomes. |
Recent news has often been positive scientifically, but price reactions have been mixed, with some selloffs on favorable clinical updates and modest gains on financial milestones.
Over the past few months, Castle Biosciences has highlighted multiple clinical and operational milestones. Preliminary 2025 results on Jan 11, 2026 signaled revenue above prior guidance and strong core test growth, with shares edging up. Earlier, a landmark uveal melanoma study published on Dec 17, 2025 and new AdvanceAD-Tx data on Feb 19, 2026 underscored the depth of the pipeline but drew uneven price reactions. Today’s full-year 2025 earnings formalize those preliminary figures, adding detailed margin, cash and test-volume context to that trajectory.
Market Pulse Summary
This announcement details Castle’s 2025 performance, including revenue of $344.2M, expanding non-dermatologic revenue of $127.9M, and a year-end cash and securities balance of $299.5M. At the same time, gross margin compressed to 69% and results shifted to a $24.2M net loss, with adjusted metrics used to frame underlying trends. The $340–350M 2026 revenue outlook, core test volume growth, and ongoing clinical validation work are key metrics and milestones to watch against this backdrop.
Key Terms
adjusted ebitda financial
non-gaap financial
gene expression profiling medical
systematic review and meta-analysis medical
janus kinase inhibitor medical
next-generation sequencing medical
performance-based stock units financial
medicare coverage regulatory
AI-generated analysis. Not financial advice.
2025 total test reports for our core revenue drivers (DecisionDx®-Melanoma, TissueCypher®) increased
Exceeded 2025 guidance with full-year revenue of
Conference call and webcast today at 4:30 p.m. ET
FRIENDSWOOD, Texas, Feb. 26, 2026 (GLOBE NEWSWIRE) -- Castle Biosciences, Inc. (Nasdaq: CSTL), a company improving health through innovative tests that guide patient care, today announced its financial results for the fourth quarter and year ended Dec. 31, 2025.
“We closed out an outstanding year with a strong fourth quarter, reflecting the strength of our innovative test portfolio, disciplined execution and the dedication of the entire Castle team who continue to deliver meaningful impact for patients and clinicians every day,” said Derek Maetzold, president and chief executive officer of Castle Biosciences. “We exited 2025 with clear leadership across our core dermatologic and gastrointestinal franchises, highlighted by continued momentum in TissueCypher, which achieved
“In 2025, we also delivered an important milestone with the limited access launch of AdvanceAD-Tx™, which materially expanded our total addressable market and reinforced our commitment to providing clinical answers to dermatology clinicians and their patients. As we look ahead to 2026 and beyond, we believe we are well positioned to continue delivering stockholder value and capitalize on our near- and long-term opportunities, supported by continued test adoption growth for our core tests, a robust pipeline and a strong balance sheet.”
Twelve Months Ended Dec. 31, 2025, Financial and Operational Highlights
- Revenues were
$344.2 million , compared to$332.1 million in 2024, growth of4% over 2024. Excluding DecisionDx-SCC and IDgenetix revenue, growth of34% over 2024. Affecting year ended Dec. 31, 2025, revenue was the change in DecisionDx-SCC Medicare coverage effective April 24, 2025, the re-focus of our commercial efforts, as well as the discontinuation of IDgenetix in May 2025.- Revenues for our non-dermatologic tests were
$127.9 million , compared to$75.1 million in 2024.
- Revenues for our non-dermatologic tests were
Core revenue drivers:
- 2025 total test reports for our core revenue drivers (DecisionDx-Melanoma, TissueCypher) increased
37% over 2024:- DecisionDx-Melanoma test reports delivered in 2025 were 39,083, compared to 36,008 in 2024.
- TissueCypher Barrett’s Esophagus test reports delivered in 2025 were 39,014, compared to 20,956 in 2024.
Additional tests:
-
- DecisionDx-SCC test reports delivered in 2025 were 17,294, compared to 16,348 in 2024. Affecting twelve-month test report volume was the change in Medicare coverage effective April 24, 2025, and the re-focus of our commercial efforts.
- MyPath® Melanoma test reports delivered in 2025 were 4,288, compared to 3,909 in 2024.
- DecisionDx®-UM test reports delivered in 2025 were 1,769, compared to 1,699 in 2024.
Discontinued tests:
-
- IDgenetix test reports delivered in 2025 were 3,605, compared to 17,151 in 2024. The Company discontinued its IDgenetix test offering effective May 2025.
- Gross margin for 2025 was
69% , and Adjusted Gross Margin was80% , compared to79% and82% , respectively, for the same periods in 2024. Affecting 2025 gross margin was the loss of revenues from DecisionDx-SCC and the one-time adjustment of an acceleration of amortization expense of approximately$20.1 million during the three months ended March 31, 2025. - Net cash provided by operations was
$64.3 million , compared to$64.9 million in 2024. - Net loss for 2025, which includes non-cash stock-based compensation expense of
$45.9 million , was$24.2 million , compared to net income of$18.2 million in 2024. - Net loss per share, Basic and Diluted, was
$0.83 and Adjusted Net Loss per Share, Basic and Diluted, was$0.14 , compared to net income per share and Adjusted Net Income per Share, Basic and Diluted, of$0.66 and$0.62 , respectively, for 2024. - Adjusted EBITDA for 2025 was
$44.0 million , compared to$75.0 million in 2024.
Cash, Cash Equivalents and Marketable Investment Securities
As of Dec. 31, 2025, the Company’s cash, cash equivalents and marketable investment securities totaled
Fourth Quarter Ended Dec. 31, 2025, Financial and Operational Highlights
- Revenues were
$87.0 million , compared to$86.3 million during the same period in 2024, growth of1% over the fourth quarter of 2024. Excluding DecisionDx-SCC and IDgenetix, revenue growth was43% over the fourth quarter of 2024. Affecting fourth quarter 2025 revenue was the change in DecisionDx-SCC Medicare coverage effective April 24, 2025, the re-focus of our commercial efforts, as well as the discontinuation of IDgenetix in May 2025. -
- Revenues for our non-dermatologic tests were
$38.4 million , compared to$22.5 million during the same period in 2024.
- Revenues for our non-dermatologic tests were
Core revenue drivers:
- Fourth quarter 2025 total test reports for our core revenue drivers (DecisionDx-Melanoma, TissueCypher) increased
42% over the fourth quarter of 2024: -
- DecisionDx-Melanoma test reports delivered in the quarter were 10,022, compared to 8,672 in the fourth quarter of 2024.
- TissueCypher Barrett’s Esophagus test reports delivered in the quarter were 11,803, compared to 6,672 in the fourth quarter of 2024.
Additional tests:
- DecisionDx-SCC test reports delivered in the quarter were 3,971, compared to 4,299 in the fourth quarter of 2024. Affecting fourth quarter test report volume was the change in Medicare coverage effective April 24, 2025, and the re-focus of our commercial efforts.
- MyPath Melanoma test reports delivered in the quarter were 1,045, compared to 879 in the fourth quarter of 2024.
- DecisionDx-UM test reports delivered in the quarter were 395, compared to 424 in the fourth quarter of 2024.
- Gross margin was
76% , and Adjusted Gross Margin was78% , compared to76% and81% , respectively, for the same periods in 2024. - Net cash provided by operations was
$26.9 million , compared to$24.4 million for the same period in 2024. - Net loss, which includes non-cash stock-based compensation expense of
$11.4 million , was$2.3 million , compared to net income of$9.6 million for the same period in 2024. - Net loss per share and Adjusted Net Loss per Share, Basic and Diluted, was
$0.08 , compared to net income per share and Adjusted Net Income per Share, Basic and Diluted, of$0.34 and$0.32 , respectively, for the same period in 2024. - Adjusted EBITDA was
$11.5 million , compared to$21.3 million for the same period in 2024.
2026 Outlook
The Company anticipates generating between
Fourth Quarter and Recent Accomplishments and Highlights
Dermatology - Skin Cancer
- The Company announced the publication of an independent expert consensus paper titled “31-Gene Expression Profiling for Cutaneous Melanoma: An Expert Consensus Panel,” which endorsed the Company’s DecisionDx-Melanoma test. Authored by a panel of ten melanoma experts from leading academic and clinical institutions, the paper presented evidence-based recommendations supporting DecisionDx-Melanoma as a best-practice tool for guiding management decisions in patients with cutaneous melanoma (CM). The panel concluded that the test provides prognostic information independent of traditional clinicopathologic factors and can be integrated with existing staging systems to improve patient risk assessment and help optimize clinical decision-making. Drawing on a comprehensive review of 26 published studies encompassing more than 7,500 patients, the panel used a modified Delphi process to reach unanimous agreement on nine consensus statements defining the test’s role in risk stratification, sentinel lymph node biopsy (SLNB) decision making and long-term patient management. See the Company’s news release from Dec. 9, 2025, for more information.
- The Company also announced new data demonstrating the clinical value of its DecisionDx-Melanoma test in improving SLNB decision making and enhancing recurrence risk prediction in patients with CM. The data was featured in two oral presentations at the 2nd European Congress on Dermato-Oncology. By combining the biologic information of a patient’s tumor with traditional staging, DecisionDx-Melanoma is designed to enhance five-year prognostic accuracy in SLN-negative patients and potentially provide additional clarity for identifying those at higher risk of recurrence. These findings support the test’s potential to help clinicians make more risk-aligned therapeutic decisions and tailor follow-up care according to a patient’s individual risk. See the Company’s news release from Nov. 14, 2025, for more information.
Gastroenterology
- The Company announced the publication of a new systematic review and meta-analysis (SRMA) demonstrating that the TissueCypher Barrett’s Esophagus test provides clinically validated risk stratification for patients with Barrett’s esophagus (BE). The findings confirm that TissueCypher can outperform traditional pathology or clinical factors alone to identify patients at increased risk of developing esophageal cancer. The paper, titled “The Tissue Systems Pathology Test Predicts Risk of Progression in Patients With Barrett’s Esophagus: Systematic Review and Meta-Analysis,” was published in the Journal of Clinical Gastroenterology. The analysis consolidated data from six previously published studies and found that TissueCypher consistently identifies patients at greater risk of progression to high-grade dysplasia (HGD) or esophageal adenocarcinoma (EAC), a key step toward enabling personalized, risk-aligned patient management aimed at preventing cancer. See the Company’s news release from Dec. 12, 2025, for more information.
Dermatology - Atopic Dermatitis
- The Company announced the limited access launch of AdvanceAD-Tx, a 487-gene expression profile test designed to guide systemic treatment decision making in patients ages 12 and older with moderate-to-severe atopic dermatitis, following a presentation of the prospective, multicenter development and validation study at the 25th Annual Fall Clinical Dermatology Conference (news release), which was recently published in the Journal of the American Academy of Dermatology (JAAD) (news release). AdvanceAD-Tx is designed to identify patients with a Janus kinase inhibitor (JAKi) responder profile who are more likely to achieve an Eczema Area and Severity Index improvement of
90% (EASI-90), more quickly and with reduced flares and itch by three months, when treated with a JAKi compared to a T helper type 2 (Th2)-targeted therapy. See the Company’s news release from Nov. 11, 2025, for more information.
Uveal Melanoma
- The Company announced new data from the largest prospective, multicenter study to date comparing next-generation sequencing (NGS)-based gene mutation analysis with the combination of DecisionDx-UM and Preferentially Expressed Antigen in Melanoma (PRAME) gene expression for predicting outcomes in patients with uveal melanoma (UM). The study, titled “Early Genetic Evolution of Driver Mutations in Uveal Melanoma,” was conducted by the Collaborative Ocular Oncology Group (COOG) and recently published in Nature Communications. See the Company’s news release from Dec. 17, 2025, for more information.
Corporate
- The Company announced that it was recognized by the Houston Chronicle as a Houston Top Workplace, which celebrates people-focused, standout workplace cultures. This marked the fifth consecutive year the Company had been ranked among the Houston metro area’s esteemed workplaces. Castle also earned three Culture Excellence awards in the areas of Employee Appreciation, Employee Well-Being and Professional Development. See the Company’s news release from Nov. 17, 2025, for more information.
Conference Call and Webcast Details
Castle Biosciences will hold a conference call on Thursday, Feb. 26, 2026, at 4:30 p.m. Eastern time to discuss its fourth quarter and full-year 2025 results and provide a corporate update.
A live webcast of the conference call can be accessed here: https://events.q4inc.com/attendee/483643109 or via the webcast link on the Investor Relations page of the Company’s website, https://ir.castlebiosciences.com/overview/default.aspx. Please access the webcast at least 10 minutes before the conference call start time. An archive of the webcast will be available on the Company’s website until March 19, 2026.
To access the live conference call via phone, please dial 833-470-1428 from the United States, or global dial-in numbers are available here: https://www.netroadshow.com/events/global-numbers?confId=94133, at least 10 minutes prior to the start of the call, using the conference ID 695618.
There will be a brief Question & Answer session following management commentary.
Use of Non-GAAP Financial Measures (UNAUDITED)
In this release, we use the metrics of Adjusted Revenues, Adjusted Gross Margin, Adjusted EBITDA and Adjusted Net (Loss) Income per Share, Basic and Diluted, which are non-GAAP financial measures and are not calculated in accordance with generally accepted accounting principles in the United States (GAAP). Adjusted Revenues and Adjusted Gross Margin reflect adjustments to GAAP net revenues to exclude net positive and/or net negative revenue adjustments recorded in the current period associated with changes in estimated variable consideration related to test reports delivered in previous periods. Adjusted Gross Margin further excludes acquisition-related intangible asset amortization. Adjusted EBITDA excludes from net (loss) income: interest income, interest expense, income tax benefit or expense, depreciation and amortization expense, stock-based compensation expense and change in fair value of equity securities. Adjusted Net (Loss) Income per Share, Basic and Diluted, excludes a one-time adjustment of an acceleration of amortization expense for our IDgenetix test from net (loss) income.
We use Adjusted Revenues, Adjusted Gross Margin, Adjusted EBITDA and Adjusted Net (Loss) Income per Share, Basic and Diluted, internally because we believe these metrics provide useful supplemental information in assessing our revenue and operating performance reported in accordance with GAAP, respectively. We believe that Adjusted Revenues, when used in conjunction with our test report volume information, facilitates investors’ analysis of our current-period revenue performance and average selling price performance by excluding the effects of revenue adjustments related to test reports delivered in prior periods, since these adjustments may not be indicative of the current or future performance of our business. We believe that providing Adjusted Revenues may also help facilitate comparisons to our historical periods. Adjusted Gross Margin is calculated using Adjusted Revenues and therefore excludes the impact of revenue adjustments related to test reports delivered in prior periods, which we believe is useful to investors as described above. We further exclude acquisition-related intangible asset amortization in the calculation of Adjusted Gross Margin. We believe that excluding acquisition-related intangible asset amortization may facilitate gross margin comparisons to historical periods and may be useful in assessing current-period performance without regard to the historical accounting valuations of intangible assets, which are applicable only to tests we acquired rather than internally developed. Adjusted Net (Loss) Income per Share, Basic and Diluted, is calculated by excluding a one-time adjustment of an acceleration of amortization expense for our IDgenetix test from net loss. We believe that providing Adjusted (Loss) Net Income per Share, Basic and Diluted, may also help facilitate comparisons to our historical periods. We believe Adjusted EBITDA may enhance an evaluation of our operating performance because it excludes the impact of prior decisions made about capital investment, financing, investing and certain expenses we believe are not indicative of our ongoing performance. However, these non-GAAP financial measures may be different from non-GAAP financial measures used by other companies, even when the same or similarly titled terms are used to identify such measures, limiting their usefulness for comparative purposes.
These non-GAAP financial measures are not meant to be considered in isolation or used as substitutes for net revenues, gross margin, net (loss) income or net (loss) income per share reported in accordance with GAAP; should be considered in conjunction with our financial information presented in accordance with GAAP; have no standardized meaning prescribed by GAAP; are unaudited; and are not prepared under any comprehensive set of accounting rules or principles. In addition, from time to time in the future, there may be other items that we may exclude for purposes of these non-GAAP financial measures, and we may in the future cease to exclude items that we have historically excluded for purposes of these non-GAAP financial measures. Likewise, we may determine to modify the nature of adjustments to arrive at these non-GAAP financial measures. Because of the non-standardized definitions of non-GAAP financial measures, the non-GAAP financial measure as used by us in this press release and the accompanying reconciliation tables have limits in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. Accordingly, investors should not place undue reliance on non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the tables at the end of this release.
About Castle Biosciences
Castle Biosciences (Nasdaq: CSTL) is a leading diagnostics company improving health through innovative tests that guide patient care. With a primary focus in dermatologic and gastroenterological disease, we develop personalized, clinically actionable solutions that help improve disease management and patient outcomes.
We put people first—empowering patients and clinicians and informing care decisions through rigorous science and advanced molecular tests that support more confident treatment planning. To learn more, visit www.CastleBiosciences.com and connect with us on LinkedIn, Instagram, Facebook and X.
DecisionDx-Melanoma, DecisionDx-CMSeq, i31-SLNB, i31-ROR, DecisionDx-SCC, MyPath Melanoma, AdvanceAD-Tx, TissueCypher, DecisionDx-UM, DecisionDx-PRAME and DecisionDx-UMSeq are trademarks of Castle Biosciences, Inc.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. These forward-looking statements include, but are not limited to, statements concerning our expectations regarding: Castle’s 2026 total revenue guidance of
Investor Relations Contact:
Camilla Zuckero
czuckero@castlebiosciences.com
281-906-3868
Media Contact:
Allison Marshall
amarshall@castlebiosciences.com
CASTLE BIOSCIENCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (unaudited) | |||||||||||||||
| NET REVENUES | $ | 87,010 | $ | 86,311 | $ | 344,229 | $ | 332,069 | |||||||
| OPERATING EXPENSES | |||||||||||||||
| Cost of sales (exclusive of amortization of acquired intangible assets) | 18,315 | 16,183 | 71,028 | 60,205 | |||||||||||
| Research and development | 13,515 | 11,773 | 51,850 | 52,041 | |||||||||||
| Selling, general and administrative | 56,731 | 49,965 | 229,323 | 200,047 | |||||||||||
| Amortization of acquired intangible assets | 2,276 | 4,340 | 34,838 | 11,106 | |||||||||||
| Total operating expenses, net | 90,837 | 82,261 | 387,039 | 323,399 | |||||||||||
| Operating (loss) income | (3,827 | ) | 4,050 | (42,810 | ) | 8,670 | |||||||||
| Interest income | 2,896 | 3,372 | 11,772 | 12,916 | |||||||||||
| Net (losses) gains on equity securities | (1,855 | ) | 555 | 1,466 | 555 | ||||||||||
| Interest expense | (24 | ) | (92 | ) | (86 | ) | (577 | ) | |||||||
| Other income | 96 | — | 144 | — | |||||||||||
| (Loss) income before income taxes | (2,714 | ) | 7,885 | (29,514 | ) | 21,564 | |||||||||
| Income tax (benefit) expense | (382 | ) | (1,705 | ) | (5,356 | ) | 3,319 | ||||||||
| Net (loss) income | $ | (2,332 | ) | $ | 9,590 | $ | (24,158 | ) | $ | 18,245 | |||||
| (Loss) earnings per share: | |||||||||||||||
| Basic | $ | (0.08 | ) | $ | 0.34 | $ | (0.83 | ) | $ | 0.66 | |||||
| Diluted | $ | (0.08 | ) | $ | 0.32 | $ | (0.83 | ) | $ | 0.62 | |||||
| Weighted-average shares outstanding: | |||||||||||||||
| Basic | 29,333 | 28,126 | 28,986 | 27,776 | |||||||||||
| Diluted | 29,333 | 30,200 | 28,986 | 29,255 | |||||||||||
Stock-Based Compensation Expense
Stock-based compensation expense is included in the consolidated statements of operations as follows (in thousands):
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||
| (unaudited) | |||||||||||
| Cost of sales (exclusive of amortization of acquired intangible assets) | $ | 1,342 | $ | 1,350 | $ | 5,666 | $ | 5,529 | |||
| Research and development | 1,748 | 1,987 | 7,555 | 9,598 | |||||||
| Selling, general and administrative | 8,316 | 8,102 | 32,672 | 35,193 | |||||||
| Total stock-based compensation expense | $ | 11,406 | $ | 11,439 | $ | 45,893 | $ | 50,320 | |||
CASTLE BIOSCIENCES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(in thousands)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| (unaudited) | ||||||||||||||
| Net (loss) income | $ | (2,332 | ) | $ | 9,590 | $ | (24,158 | ) | $ | 18,245 | ||||
| Other comprehensive income (loss): | ||||||||||||||
| Net unrealized gain (loss) on marketable investment securities | 27 | (243 | ) | 37 | 94 | |||||||||
| Comprehensive (loss) income | $ | (2,305 | ) | $ | 9,347 | $ | (24,121 | ) | $ | 18,339 | ||||
CASTLE BIOSCIENCES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
| December 31, | |||||||
| 2025 | 2024 | ||||||
| ASSETS | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 116,729 | $ | 119,709 | |||
| Marketable investment securities | 182,776 | 173,421 | |||||
| Accounts receivable, net | 43,382 | 51,218 | |||||
| Inventory | 10,254 | 8,135 | |||||
| Prepaid expenses and other current assets | 7,956 | 7,671 | |||||
| Total current assets | 361,097 | 360,154 | |||||
| Long-term accounts receivable, net | 1,878 | 918 | |||||
| Property and equipment, net | 97,443 | 51,122 | |||||
| Operating lease assets | 14,795 | 11,584 | |||||
| Goodwill and other intangible assets, net | 99,574 | 106,229 | |||||
| Other assets – long-term | 3,769 | 1,228 | |||||
| Total assets | $ | 578,556 | $ | 531,235 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current Liabilities | |||||||
| Accounts payable | $ | 18,711 | $ | 6,901 | |||
| Accrued compensation | 38,287 | 32,555 | |||||
| Contingent consideration | 1,000 | — | |||||
| Operating lease liabilities | 1,325 | 1,665 | |||||
| Current portion of long-term debt | 417 | 278 | |||||
| Other accrued and current liabilities | 8,937 | 7,993 | |||||
| Total current liabilities | 68,677 | 49,392 | |||||
| Long-term debt | 9,640 | 9,745 | |||||
| Noncurrent portion of contingent consideration | 1,500 | — | |||||
| Noncurrent operating lease liabilities | 25,217 | 14,345 | |||||
| Noncurrent finance lease liabilities | 314 | 311 | |||||
| Deferred tax liability | 2,335 | 1,607 | |||||
| Total liabilities | 107,683 | 75,400 | |||||
| Stockholders’ Equity | |||||||
| Preferred stock | — | — | |||||
| Common stock | 30 | 28 | |||||
| Additional paid-in capital | 694,860 | 655,703 | |||||
| Accumulated deficit | (224,284 | ) | (200,126 | ) | |||
| Accumulated other comprehensive income | 267 | 230 | |||||
| Total stockholders’ equity | 470,873 | 455,835 | |||||
| Total liabilities and stockholders’ equity | $ | 578,556 | $ | 531,235 | |||
| Twelve Months Ended December 31, | |||||||
| 2025 | 2024 | ||||||
| OPERATING ACTIVITIES | |||||||
| Net (loss) income | $ | (24,158 | ) | $ | 18,245 | ||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 40,771 | 15,997 | |||||
| Stock-based compensation expense | 45,893 | 50,320 | |||||
| Net gains on equity securities | (1,466 | ) | (555 | ) | |||
| Deferred income taxes | (6,228 | ) | 1,401 | ||||
| Accretion of discounts on marketable investment securities | (4,219 | ) | (6,685 | ) | |||
| Other | 153 | 268 | |||||
| Change in operating assets and liabilities: | |||||||
| Accounts receivable | 6,876 | (12,643 | ) | ||||
| Prepaid expenses and other current assets | (544 | ) | (1,142 | ) | |||
| Inventory | (2,142 | ) | (193 | ) | |||
| Operating lease assets | 1,372 | 1,322 | |||||
| Other assets | (366 | ) | 262 | ||||
| Accounts payable | 3,078 | (4,372 | ) | ||||
| Operating lease liabilities | (1,275 | ) | (1,289 | ) | |||
| Accrued compensation | 5,732 | 3,610 | |||||
| Other accrued and current liabilities | 870 | 320 | |||||
| Net cash provided by operating activities | 64,347 | 64,866 | |||||
| INVESTING ACTIVITIES | |||||||
| Purchases of marketable investment securities | (188,714 | ) | (205,729 | ) | |||
| Proceeds from maturities of marketable investment securities | 189,200 | 183,900 | |||||
| Proceeds from sale of equity securities | 1,533 | — | |||||
| Purchases of debt securities classified as held-to-maturity | (5,569 | ) | — | ||||
| Asset acquisition, net of cash and cash equivalents acquired | (18,727 | ) | — | ||||
| Issuance of loan receivable | (2,114 | ) | — | ||||
| Purchases of property and equipment | (36,021 | ) | (28,326 | ) | |||
| Proceeds from sale of property and equipment | 45 | 18 | |||||
| Net cash used in investing activities | (60,367 | ) | (50,137 | ) | |||
| FINANCING ACTIVITIES | |||||||
| Proceeds from exercise of common stock options | 2,206 | 2,017 | |||||
| Payment of employees’ taxes on vested restricted stock units | (11,657 | ) | (8,762 | ) | |||
| Proceeds from contributions to the employee stock purchase plan | 2,416 | 2,981 | |||||
| Repayment of principal portion of finance lease liabilities | (115 | ) | (97 | ) | |||
| Proceeds from lease incentives received | 190 | — | |||||
| Proceeds from issuance of term debt | — | 10,000 | |||||
| Net cash (used in) provided by financing activities | (6,960 | ) | 6,139 | ||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | (2,980 | ) | 20,868 | ||||
| Beginning of year | 119,709 | 98,841 | |||||
| End of year | $ | 116,729 | $ | 119,709 | |||
CASTLE BIOSCIENCES, INC.
Reconciliation of Non-GAAP Financial Measures (UNAUDITED)
The table below presents the reconciliation of Adjusted Revenues, Adjusted Gross Margin and Adjusted Net (Loss) Income Per Share, Basic and Diluted, which are non-GAAP financial measures. See "Use of Non-GAAP Financial Measures (UNAUDITED)" above for further information regarding the Company's use of non-GAAP financial measures.
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| (in thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Adjusted Revenues | |||||||||||||||
| Net revenues (GAAP) | $ | 87,010 | $ | 86,311 | $ | 344,229 | $ | 332,069 | |||||||
| Revenue associated with test reports delivered in prior periods | (5,134 | ) | (491 | ) | 7,592 | 1,751 | |||||||||
| Adjusted Revenues (Non-GAAP) | $ | 81,876 | $ | 85,820 | $ | 351,821 | $ | 333,820 | |||||||
| Adjusted Gross Margin | |||||||||||||||
| Gross margin (GAAP)1 | $ | 66,419 | $ | 65,788 | $ | 238,363 | $ | 260,758 | |||||||
| Amortization of acquired intangible assets | 2,276 | 4,340 | 34,838 | 11,106 | |||||||||||
| Revenue associated with test reports delivered in prior periods | (5,134 | ) | (491 | ) | 7,592 | 1,751 | |||||||||
| Adjusted Gross Margin (Non-GAAP) | $ | 63,561 | $ | 69,637 | $ | 280,793 | $ | 273,615 | |||||||
| Gross Margin percentage (GAAP)2 | 76.3 | % | 76.2 | % | 69.2 | % | 78.5 | % | |||||||
| Adjusted Gross Margin percentage (Non-GAAP)3 | 77.6 | % | 81.1 | % | 79.8 | % | 82.0 | % | |||||||
| Adjusted Net (Loss) Income per Share, Basic and Diluted | |||||||||||||||
| Net (loss) income (GAAP) | $ | (2,332 | ) | $ | 9,590 | $ | (24,158 | ) | $ | 18,245 | |||||
| Amortization of acquired intangible assets4 | — | — | 20,099 | — | |||||||||||
| Adjusted Net (Loss) Income (Non-GAAP) | $ | (2,332 | ) | $ | 9,590 | $ | (4,059 | ) | $ | 18,245 | |||||
| Weighted-average shares outstanding | |||||||||||||||
| Basic | 29,333 | 28,126 | 28,986 | 27,776 | |||||||||||
| Diluted | 29,333 | 30,200 | 28,986 | 29,255 | |||||||||||
| Net (loss) income per share (GAAP)5 | |||||||||||||||
| Basic | $ | (0.08 | ) | $ | 0.34 | $ | (0.83 | ) | $ | 0.66 | |||||
| Diluted | $ | (0.08 | ) | $ | 0.32 | $ | (0.83 | ) | $ | 0.62 | |||||
| Adjusted Net (Loss) Income per Share (Non-GAAP)6 | |||||||||||||||
| Basic | $ | (0.08 | ) | $ | 0.34 | $ | (0.14 | ) | $ | 0.66 | |||||
| Diluted | $ | (0.08 | ) | $ | 0.32 | $ | (0.14 | ) | $ | 0.62 | |||||
____________________________
1 Calculated as net revenues (GAAP) less the sum of cost of sales (exclusive of amortization of acquired intangible assets) and amortization of acquired intangible assets.
2 Calculated as gross margin (GAAP) divided by net revenues (GAAP).
3 Calculated as Adjusted Gross Margin (Non-GAAP) divided by Adjusted Revenues (Non-GAAP).
4 Represents a one-time adjustment of an acceleration of amortization expense for our IDgenetix test during the three months ended March 31,2025.
5 Calculated as net (loss) income (GAAP) divided by weighted-average shares outstanding, basic and diluted.
6 Calculated as Adjusted Net (Loss) Income (Non-GAAP) divided by weighted-average shares outstanding, basic and diluted.
The table below presents the reconciliation of Adjusted EBITDA, which is a non-GAAP financial measure. See "Use of Non-GAAP Financial Measures (UNAUDITED)" above for further information regarding the Company's use of non-GAAP financial measures.
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Adjusted EBITDA | |||||||||||||||
| Net (loss) income | $ | (2,332 | ) | $ | 9,590 | $ | (24,158 | ) | $ | 18,245 | |||||
| Interest income | (2,896 | ) | (3,372 | ) | (11,772 | ) | (12,916 | ) | |||||||
| Interest expense | 24 | 92 | 86 | 577 | |||||||||||
| Income tax (benefit) expense | (382 | ) | (1,705 | ) | (5,356 | ) | 3,319 | ||||||||
| Depreciation and amortization expense | 3,777 | 5,768 | 40,771 | 15,997 | |||||||||||
| Stock-based compensation expense | 11,406 | 11,439 | 45,893 | 50,320 | |||||||||||
| Net losses (gains) on equity securities | 1,855 | (555 | ) | (1,466 | ) | (555 | ) | ||||||||
| Adjusted EBITDA (Non-GAAP) | $ | 11,452 | $ | 21,257 | $ | 43,998 | $ | 74,987 | |||||||
FAQ
What were Castle Biosciences (CSTL) full-year 2025 revenues and guidance for 2026?
How much did Castle's core test volumes grow in 2025 for DecisionDx-Melanoma and TissueCypher?
Why did Castle Biosciences report a net loss in 2025 despite revenue growth?
What was the impact of discontinuing IDgenetix on Castle's 2025 results?
How strong is Castle's liquidity position at the end of 2025 (CSTL)?
What caused changes to DecisionDx-SCC volume and revenue in 2025 for CSTL?
