CareDx Announces Third Quarter 2026 Financial Results
Third Quarter Revenue Growth of 39% to $139 Million
Raises 2026 Revenue Guidance to $520 Million to $530 Million and Adjusted EBITDA Guidance to $90 Million to $100 Million
BRISBANE, Calif. — (BUSINESS WIRE) — CareDx, Inc. (Nasdaq: CDNA) — a leading precision medicine diagnostics company in transplant, specialty oncology, and cell therapy, today reported financial results for the third quarter ended September 30, 2026.
Third Quarter 2026 Financial Highlights
• Revenue of $139 million, an increase of 39% year-over-year
• Testing Services revenue of $119 million, an increase of 65% year-over-year
• Testing Services volume of approximately 75,900, an increase of 51% year-over-year, including contributions following our acquisition of NavDx
• Patient and Digital Solutions revenue of $20 million, an increase of 31% year-over-year
• GAAP net income of $19 million, compared with GAAP net income of $2 million for the third quarter of 2025
• Closed the acquisition of Naveris, Inc. on July 1, 2026 for $160 million in cash consideration and up to $100 million in contingent consideration
• Adjusted EBITDA of $30 million, compared with $15 million for the third quarter of 2025
• Cash flow from operations of $13 million
Recent Business Highlights
• Advanced AlloHeme toward a planned first-quarter 2027 commercial launch and HistoMap Kidney toward broader commercial availability in 2027, with both programs targeting CLIA readiness before year-end
• Published new HistoMap data in Transplantation demonstrating its potential to identify clinically meaningful risk beyond conventional pathology
• Broadened the clinical evidence for NavDx across multiple contexts of use, including a newly published eight-center study of 332 patients evaluating molecular results during the first three months after treatment and two independent Phase II studies exploring radiation de-escalation after surgery and during definitive treatment
• Presented new KOAR registry data demonstrating the potential for AlloSure Kidney to identify patients at greater risk of graft loss or declining kidney function when biopsy findings are difficult to interpret
• Advanced commercial and workflow execution across the portfolio, including continued Epic Aura adoption, more than 5,000 transplant patients registered for the new CareDx patient portal, and the migration of NavDx to the CareDx billing platform
“We delivered another strong quarter of solid execution, with continued growth in Transplant, progress scaling Specialty Oncology, and important advances across our pipeline and clinical evidence, including in Cell Therapy,” said John Hanna, President and Chief Executive Officer of CareDx. “We see significant clinical interest in how molecular information can inform more decisions across a patient’s care journey, while continuing to make our solutions easier for providers to adopt and patients to access. We believe these dynamics create meaningful opportunities for continued profitable growth.”
Third Quarter 2026 Financial Results
Total revenue was $139 million, compared with $100 million in the third quarter of 2025, an increase of 39% year-over-year, driven primarily by growth in Testing Services and Patient and Digital Solutions revenue, including the addition of Specialty Oncology revenue following our acquisition of NavDx.
Testing Services revenue was $119 million, compared with $72 million in the third quarter of 2025, an increase of 65% year-over-year, including $12 million in Specialty Oncology revenue. Testing Services revenue includes $15 million in prior period revenue, compared with $6 million in the third quarter of 2025. Testing Services volume was approximately 75,900, an increase of 51% year-over-year, including contributions from Specialty Oncology. Excluding revenue recognized for tests performed in prior periods, Testing Services revenue increased approximately 58% year-over-year.
Patient and Digital Solutions revenue was $20 million, compared with $15 million in the third quarter of 2025, an increase of 31% year-over-year, driven primarily by continued growth in CareDx Pharmacy services.
As a reminder, the Company completed the divestiture of its Lab Products business on June 30, 2026. Accordingly, the Company’s third quarter 2026 results do not include Lab Products revenue.
GAAP net income was $19 million, compared with GAAP net income of $2 million in the third quarter of 2025. Basic and diluted GAAP net income per share were $0.37 and $0.35, respectively, compared with basic and diluted GAAP net income per share of $0.03 in the third quarter of 2025. GAAP net income margin was approximately 14%, compared with approximately 2% in the third quarter of 2025.
Adjusted EBITDA was $30 million, compared with $15 million in the third quarter of 2025, driven by revenue growth, higher gross profit and disciplined operating expense management. Adjusted EBITDA margin was approximately 22%, compared with approximately 15% in the third quarter of 2025.
2026 Guidance
For the full year 2026, CareDx now expects revenue to be in the range of $520 million to $530 million, compared with its previously disclosed range of $490 million to $500 million. The Company now expects full-year 2026 Adjusted EBITDA to be in the range of $90 million to $100 million, compared with its previously disclosed range of $66 million to $78 million.
About CareDx
CareDx is a leading precision medicine diagnostics company advancing care in transplant, specialty oncology, and cell therapy. Through non-invasive longitudinal molecular biomarker testing, digital health, and patient support solutions, CareDx is dedicated to improving patient outcomes. 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 2026 and beyond. 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, 2025 filed by CareDx with the SEC on February 25, 2026, 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 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 net income, non-GAAP basic and diluted net income per share, adjusted EBITDA and adjusted EBITDA margin. These non-GAAP financial measures are not meant to be considered superior to or a substitute for financial measures calculated in accordance with GAAP, and investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool.
We define non-GAAP net income and per share results as the GAAP net income (loss) and per share results excluding the impacts of stock-based compensation expense; acquisition-related amortization of purchased intangible assets and related tax effects; changes in estimated fair value of contingent consideration; litigation settlement expense; business development and portfolio optimization expense; gain on sale of lab product business; and certain other charges presented in the reconciliation in this release. We define adjusted EBITDA as non-GAAP net income before interest income, income tax expense, depreciation expense and other (income) expense, net. We define non-GAAP gross profit and non-GAAP gross margin as GAAP gross profit and GAAP gross margin excluding the impacts of stock-based compensation expense, and acquisition-related amortization of purchased intangible assets included in cost of sales. Non-GAAP gross margin is calculated as non-GAAP gross profit divided by total revenue. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by total revenue. Corporate free cash flow is defined as Cash from Operations less Capital Expenditures.
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 where certain items may vary independent of business performance. 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. A reconciliation of the forecasted range for adjusted EBITDA for 2026 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.
CareDx, Inc.
Media Relations
Natasha Moshirian Wagner
nwagner@CareDx.com
Investor Relations
Nina Deka
investor@CareDx.com
CareDx, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per share data)
| | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | |
| 2026 | | 2025 | | | | |
| Revenue: | | | | | | | |
| Testing services revenue | $ | 119,191 | | | $ | 72,168 | | | | | |
| Product revenue | — | | | 12,478 | | | | | |
Patient and digital solutions revenue | 20,171 | | | 15,409 | | | | | |
| Total revenue | 139,362 | | | 100,055 | | | | | |
| Operating expenses: | | | | | | | |
| Cost of testing services | 24,683 | | | 14,705 | | | | | |
| Cost of product | — | | | 5,629 | | | | | |
| Cost of patient and digital solutions | 15,604 | | | 10,320 | | | | | |
| Research and development | 21,324 | | | 16,769 | | | | | |
| Sales and marketing | 31,650 | | | 24,449 | | | | | |
| General and administrative | 37,989 | | | 28,429 | | | | | |
| | | | | | | |
| | | | | | | |
| Total operating expenses | 131,250 | | | 100,301 | | | | | |
| Income (loss) from operations | 8,112 | | | (246) | | | | | |
Other income: | | | | | | | |
| Interest income, net | 2,208 | | | 2,013 | | | | | |
| | | | | | | |
| Other income (expense), net | 372 | | | (107) | | | | | |
| Total other income | 2,580 | | | 1,906 | | | | | |
| Income before income taxes | 10,692 | | | 1,660 | | | | | |
| Income tax benefit | 8,600 | | | 15 | | | | | |
| Net income | $ | 19,292 | | | $ | 1,675 | | | | | |
| Net income per share: | | | | | | | |
| Basic | $ | 0.37 | | | $ | 0.03 | | | | | |
| Diluted | $ | 0.35 | | | $ | 0.03 | | | | | |
| Weighted-average shares used to compute net income (loss) per share: | | | | | | | |
| Basic | 52,116,051 | | | 52,507,582 | | | | | |
| Diluted | 54,984,989 | | | 53,736,790 | | | | | |
CareDx, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
| | | | | | | | | | | |
| As of |
| September 30, 2026 | | December 31, 2025 |
| Assets | | | |
| Current assets: | | | |
| Cash and cash equivalents | $ | 250,480 | | | $ | 65,429 | |
| Marketable securities | — | | | 111,779 | |
| Accounts receivable | 47,730 | | | 42,628 | |
| Inventory | 9,144 | | | 26,705 | |
| Prepaid and other current assets | 13,943 | | | 10,591 | |
| Total current assets | 321,297 | | | 257,132 | |
| Property and equipment, net | 27,011 | | | 32,971 | |
| Operating lease right-of-use assets | 23,541 | | | 22,760 | |
| Marketable securities, non-current | — | | | 24,165 | |
| Intangible assets, net | 139,781 | | | 31,960 | |
| Goodwill | 121,709 | | | 40,336 | |
| Restricted cash | 1,410 | | | 551 | |
| Other assets | 6,708 | | | 3,353 | |
| Total assets | $ | 641,457 | | | $ | 413,228 | |
| Liabilities and stockholders’ equity | | | |
| Current liabilities: | | | |
| Accounts payable | $ | 10,808 | | | $ | 9,988 | |
| Accrued compensation | 40,564 | | | 38,107 | |
| Accrued and other liabilities | 87,603 | | | 41,754 | |
| Total current liabilities | 138,975 | | | 89,849 | |
| Deferred tax liability | 536 | | | 181 | |
| | | |
| | | |
| Contingent consideration, non-current | 14,035 | | | 161 | |
| Operating lease liabilities, less current portion | 20,316 | | | 19,679 | |
| Other liabilities | 139 | | | 257 | |
| Total liabilities | 174,001 | | | 110,127 | |
| Commitments and contingencies | | | |
| Stockholders’ equity: | | | |
Common stock | 52 | | | 50 | |
| Additional paid-in capital | 953,558 | | | 927,457 | |
| Accumulated other comprehensive loss | — | | | (5,515) | |
| Accumulated deficit | (486,154) | | | (618,891) | |
| Total stockholders’ equity | 467,456 | | | 303,101 | |
| Total liabilities and stockholders’ equity | $ | 641,457 | | | $ | 413,228 | |
CareDx, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In thousands)
| | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | | | |
| 2026 | | 2025 | | | | | | | | |
| Cost of testing services reconciliation: | | | | | | | | | | | |
| GAAP cost of testing services | $ | 24,683 | | | $ | 14,705 | | | | | | | | | |
| Stock-based compensation expense | (213) | | | (299) | | | | | | | | | |
| Restructuring costs | — | | | (120) | | | | | | | | | |
| Acquisition related-amortization of purchased intangibles | (2,925) | | | (348) | | | | | | | | | |
| Non-GAAP cost of testing services | $ | 21,545 | | | $ | 13,938 | | | | | | | | | |
| Cost of product reconciliation: | | | | | | | | | | | |
| GAAP cost of product | $ | — | | | $ | 5,629 | | | | | | | | | |
| Stock-based compensation expense | — | | | (51) | | | | | | | | | |
| Acquisition related-amortization of purchased intangibles | — | | | (447) | | | | | | | | | |
| | | | | | | | | | | |
| Restructuring costs | — | | | (11) | | | | | | | | | |
| Non-GAAP cost of product | $ | — | | | $ | 5,120 | | | | | | | | | |
| Cost of patient and digital solutions reconciliation: | | | | | | | | | | | |
| GAAP cost of patient and digital solutions | $ | 15,604 | | | $ | 10,320 | | | | | | | | | |
| Stock-based compensation expense | (96) | | | (118) | | | | | | | | | |
| Acquisition related-amortization of purchased intangibles | (152) | | | (152) | | | | | | | | | |
| Restructuring costs | — | | | 8 | | | | | | | | | |
| | | | | | | | | | | |
| Non-GAAP cost of patient and digital solutions | $ | 15,356 | | | $ | 10,058 | | | | | | | | | |
| Research and development expenses reconciliation: | | | | | | | | | | | |
| GAAP research and development expenses | $ | 21,324 | | | $ | 16,769 | | | | | | | | | |
| Stock-based compensation expense | (1,197) | | | (1,146) | | | | | | | | | |
| | | | | | | | | | | |
| Restructuring costs | — | | | (174) | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Non-GAAP research and development expenses | $ | 20,127 | | | $ | 15,449 | | | | | | | | | |
| Sales and marketing expenses reconciliation: | | | | | | | | | | | |
| GAAP sales and marketing expenses | $ | 31,650 | | | $ | 24,449 | | | | | | | | | |
| Stock-based compensation expense | (831) | | | (1,782) | | | | | | | | | |
| Acquisition related-amortization of purchased intangibles | (817) | | | (655) | | | | | | | | | |
| | | | | | | | | | | |
| Transformational initiative costs | — | | | (183) | | | | | | | | | |
| Restructuring costs | — | | | (233) | | | | | | | | | |
| | | | | | | | | | | |
| Non-GAAP sales and marketing expenses | $ | 30,002 | | | $ | 21,596 | | | | | | | | | |
| General and administrative expenses reconciliation: | | | | | | | | | | | |
| GAAP general and administrative expenses | $ | 37,989 | | | $ | 28,429 | | | | | | | | | |
Business development and portfolio optimization expense* | (5,527) | | | — | | | | | | | | | |
| Stock-based compensation expense | (7,318) | | | (5,022) | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Impairment of intangible asset | — | | | (2,258) | | | | | | | | | |
| | | | | | | | | | | |
| Transformational initiative costs | — | | | (341) | | | | | | | | | |
| | | | | | | | | | | |
| Non-GAAP general and administrative expenses | $ | 25,144 | | | $ | 20,808 | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Total other income reconciliation: | | | | | | | | | | | |
| GAAP other income | $ | 2,580 | | | $ | 1,906 | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Non-GAAP other income | $ | 2,580 | | | $ | 1,906 | | | | | | | | | |
| Income tax benefit (expense) reconciliation: | | | | | | | | | | | |
| GAAP income tax benefit | $ | 8,600 | | | $ | 15 | | | | | | | | | |
| Tax effect related to amortization of purchased intangibles | — | | | (111) | | | | | | | | | |
| Non-GAAP income tax benefit (expense) | $ | 8,600 | | | $ | (96) | | | | | | | | | |
* Business development and portfolio optimization expense primarily includes legal, consulting, financial advisory, due diligence, and other transaction-related costs incurred in connection with business development activities, including the sale of our lab products business and acquisition of Naveris, Inc.
CareDx, Inc.
GAAP and Non-GAAP Operating Expenses
(Unaudited)
(In thousands)
| | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | | | |
| 2026 | | 2025 | | | | | | | | |
| GAAP operating expenses: | | | | | | | | | | | |
| Research and development | $ | 21,324 | | | $ | 16,769 | | | | | | | | | |
| Sales and marketing | 31,650 | | | 24,449 | | | | | | | | | |
| General and administrative | 37,989 | | | 28,429 | | | | | | | | | |
| Total GAAP operating expenses | $ | 90,963 | | | $ | 69,647 | | | | | | | | | |
| | | | | | | | | | | |
| Non-GAAP operating expenses: | | | | | | | | | | | |
| Research and development | $ | 20,127 | | | $ | 15,449 | | | | | | | | | |
| Sales and marketing | 30,002 | | | 21,596 | | | | | | | | | |
| General and administrative | 25,144 | | | 20,808 | | | | | | | | | |
| Total Non-GAAP operating expenses | $ | 75,273 | | | $ | 57,853 | | | | | | | | | |
CareDx, Inc.
Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin
(Unaudited)
(In thousands, except percentages)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | | | |
| September 30, 2026 | | June 30, 2026 | | September 30, 2025 | | | | | | | | |
GAAP total revenue | $ | 139,362 | | | $ | 131,948 | | | $ | 100,055 | | | | | | | | | |
| GAAP cost of sales | 40,287 | | | 34,966 | | | 30,654 | | | | | | | | | |
| GAAP gross profit | 99,075 | | | 96,982 | | | 69,401 | | | | | | | | | |
GAAP gross margin % | 71 | % | | 74 | % | | 69 | % | | | | | | | | |
| Stock-based compensation expense | 309 | | | 321 | | | 468 | | | | | | | | | |
Restructuring costs | — | | | — | | | 123 | | | | | | | | | |
| | | | | | | | | | | | | |
| Business development and portfolio optimization expense* | — | | | 311 | | | — | | | | | | | | | |
| Acquisition related-amortization of purchased intangibles | 3,077 | | | 355 | | | 947 | | | | | | | | | |
| Non-GAAP gross profit | $ | 102,461 | | | $ | 97,969 | | | $ | 70,939 | | | | | | | | | |
| Non-GAAP gross margin % | 74 | % | | 74 | % | | 71 | % | | | | | | | | |
| | | | | | | | | | | | | |
* Business development and portfolio optimization expense primarily includes legal, consulting, financial advisory, due diligence, and other transaction-related costs incurred in connection with business development activities, including the sale of our lab products business and acquisition of Naveris, Inc.
CareDx, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In thousands, except share and per share data)
| | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | | | |
| 2026 | | 2025 | | | | | | | | |
| GAAP net income | $ | 19,292 | | | $ | 1,675 | | | | | | | | | |
| | | | | | | | | | | |
| Stock-based compensation expense | 9,655 | | | 8,418 | | | | | | | | | |
Business development and portfolio optimization expense* | 5,527 | | | — | | | | | | | | | |
| Acquisition related-amortization of purchased intangibles | 3,894 | | | 1,602 | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Tax effect related to amortization of purchased intangibles | — | | | (111) | | | | | | | | | |
| Impairment of intangible asset | — | | | 2,258 | | | | | | | | | |
| Transformational initiative costs | — | | | 524 | | | | | | | | | |
| Restructuring costs | — | | | 530 | | | | | | | | | |
| | | | | | | | | | | |
| Non-GAAP net income | $ | 38,368 | | | $ | 14,896 | | | | | | | | | |
| | | | | | | | | | | |
| GAAP basic net income per share | $ | 0.37 | | | $ | 0.03 | | | | | | | | | |
| GAAP diluted net income per share | $ | 0.35 | | | $ | 0.03 | | | | | | | | | |
| | | | | | | | | | | |
| Non-GAAP basic net income per share | $ | 0.74 | | | $ | 0.28 | | | | | | | | | |
| Non-GAAP diluted net income per share | $ | 0.70 | | | $ | 0.28 | | | | | | | | | |
| | | | | | | | | | | |
| Shares used in computing non-GAAP basic net income per share | 52,116,051 | | | 52,507,582 | | | | | | | | | |
| Shares used in computing non-GAAP diluted net income per share | 54,984,989 | | | 53,736,790 | | | | | | | | | |
* Business development and portfolio optimization expense primarily includes legal, consulting, financial advisory, due diligence, and other transaction-related costs incurred in connection with business development activities, including the sale of our lab products business and acquisition of Naveris, Inc.
CareDx, Inc.
Reconciliation of Non-GAAP to Adjusted EBITDA
(Unaudited)
(In thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | | | |
| September 30, 2026 | | June 30, 2026 | | September 30, 2025 | | | | | | | | |
| GAAP net income | $ | 19,292 | | | $ | 110,636 | | | $ | 1,675 | | | | | | | | | |
| Gain on sale of lab products business | — | | | (112,966) | | | — | | | | | | | | | |
| Stock-based compensation expense | 9,655 | | | 10,654 | | | 8,418 | | | | | | | | | |
Business development and portfolio optimization expense* | 5,527 | | | 11,078 | | | — | | | | | | | | | |
| Acquisition related-amortization of purchased intangibles | 3,894 | | | 529 | | | 1,602 | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Tax effect related to amortization of purchased intangibles | — | | | 54 | | | (111) | | | | | | | | | |
| Impairment of intangible asset | — | | | — | | | 2,258 | | | | | | | | | |
| Transformational initiative costs | — | | | — | | | 524 | | | | | | | | | |
| Restructuring costs | — | | | — | | | 530 | | | | | | | | | |
| | | | | | | | | | | | | |
| Non-GAAP net income | 38,368 | | | 19,985 | | | 14,896 | | | | | | | | | |
| Interest income | (2,208) | | | (1,735) | | | (2,013) | | | | | | | | | |
| Income tax (income) expense | (8,600) | | | 3,828 | | | 96 | | | | | | | | | |
| Depreciation expense | 3,308 | | | 2,286 | | | 2,213 | | | | | | | | | |
| Other (income) expense, net | (372) | | | 440 | | | 107 | | | | | | | | | |
| Adjusted EBITDA | $ | 30,496 | | | $ | 24,804 | | | $ | 15,299 | | | | | | | | | |
* Business development and portfolio optimization expense primarily includes legal, consulting, financial advisory, due diligence, and other transaction-related costs incurred in connection with business development activities, including the sale of our lab products business and acquisition of Naveris, Inc.
CareDx, Inc.
Reconciliation of Non-GAAP to Adjusted EBITDA
(Unaudited)
(In thousands)
| | | | | | | | | | | | | | | |
| Year Ended December 31, 2025 | | | | |
| GAAP net loss | $ | (21,354) | | | | | | | | | | | |
| Stock-based compensation expense | 34,864 | | | | | | | | | | | |
| Acquisition related-amortization of purchased intangibles | 6,349 | | | | | | | | | | | |
| Acquisition related fees and expenses | 204 | | | | | | | | | | | |
| Change in estimated fair value of contingent consideration | 703 | | | | | | | | | | | |
| Tax effect related to amortization of purchased intangibles | (431) | | | | | | | | | | | |
| Impairment of intangible asset | 2,258 | | | | | | | | | | | |
| Transformational initiative costs | 2,824 | | | | | | | | | | | |
| Restructuring costs | 890 | | | | | | | | | | | |
| Litigation settlement expense | 5,710 | | | | | | | | | | | |
| Non-GAAP net income | 32,017 | | | | | | | | | | | |
| Interest income | (9,174) | | | | | | | | | | | |
| Income tax expense | 702 | | | | | | | | | | | |
| Depreciation expense | 8,667 | | | | | | | | | | | |
| Other (income) expense, net | (524) | | | | | | | | | | | |
| Adjusted EBITDA | $ | 31,688 | | | | | | | | | | | |
CareDx, Inc.
Reconciliation of GAAP Net Income Margin to Adjusted EBITDA Margin
(Unaudited)
(In thousands, except percentages)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | | | |
| September 30, 2026 | | June 30, 2026 | | September 30, 2025 | | | | | | | | |
| GAAP net income | $ | 19,292 | | | $ | 110,636 | | | $ | 1,675 | | | | | | | | | |
| GAAP net income margin | 14 | % | | 84 | % | | 2 | % | | | | | | | | |
| Gain on sale of lab products business | — | | | (112,966) | | | — | | | | | | | | | |
| Stock-based compensation expense | 9,655 | | | 10,654 | | | 8,418 | | | | | | | | | |
Business development and portfolio optimization expense* | 5,527 | | | 11,078 | | | — | | | | | | | | | |
| Acquisition related-amortization of purchased intangibles | 3,894 | | | 529 | | | 1,602 | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Tax effect related to amortization of purchased intangibles | — | | | 54 | | | (111) | | | | | | | | | |
| Impairment of intangible asset | — | | | — | | | 2,258 | | | | | | | | | |
| Transformational initiative costs | — | | | — | | | 524 | | | | | | | | | |
| Restructuring costs | — | | | — | | | 530 | | | | | | | | | |
| | | | | | | | | | | | | |
| Non-GAAP net income | 38,368 | | | 19,985 | | | 14,896 | | | | | | | | | |
| Interest income | (2,208) | | | (1,735) | | | (2,013) | | | | | | | | | |
| Income tax (income) expense | (8,600) | | | 3,828 | | | 96 | | | | | | | | | |
| Depreciation expense | 3,308 | | | 2,286 | | | 2,213 | | | | | | | | | |
| Other (income) expense, net | (372) | | | 440 | | | 107 | | | | | | | | | |
| Adjusted EBITDA | $ | 30,496 | | | $ | 24,804 | | | $ | 15,299 | | | | | | | | | |
| Revenue | $ | 139,362 | | | $ | 131,948 | | | $ | 100,055 | | | | | | | | | |
| Adjusted EBITDA margin | 22 | % | | 19 | % | | 15 | % | | | | | | | | |
* Business development and portfolio optimization expense primarily includes legal, consulting, financial advisory, due diligence, and other transaction-related costs incurred in connection with business development activities, including the sale of our lab products business and acquisition of Naveris, Inc.
CareDx, Inc.
Net Cash Provided by Operating Activities Reconciliation to Free Cash Flow
(Unaudited)
(In thousands)
| | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | |
| 2026 | | 2025 | | | | |
Net cash provided by operating activities (GAAP) | $ | 12,718 | | | $ | 37,358 | | | | | |
Less: item not included in free cash flows | | | | | | | |
Capital expenditures (GAAP) | $ | (1,615) | | | $ | (1,305) | | | | | |
| Free cash flow (non-GAAP) | $ | 11,103 | | | $ | 36,053 | | | | | |
