CareDx — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue reached $139 million, a 39% year-over-year increase compared to $100 million in Q3 2025.
• Testing Services revenue was $119 million, up 65% year-over-year from $72 million, including $12 million in Specialty Oncology revenue.
• Testing Services volume increased 51% year-over-year to approximately 75,900 tests.
• Patient and Digital Solutions revenue was $20 million, a 31% year-over-year increase from $15 million.
• GAAP net income was $19 million, compared to $2 million in Q3 2025; GAAP net income margin was approximately 14% versus 2% in the prior year period.
• Adjusted EBITDA was $30 million, doubling from $15 million in Q3 2025; Adjusted EBITDA margin was approximately 22% compared to 15% in Q3 2025.
• Cash flow from operations was $13 million.
• GAAP operating expenses were $131.3 million, compared to $100.3 million in Q3 2025.
• Non-GAAP operating expenses were $75.3 million, compared to $57.9 million in Q3 2025.
• GAAP gross margin was 71%, while Non-GAAP gross margin was 74%.
• Cash and cash equivalents were $250.5 million as of September 30, 2026, up from $65.4 million as of December 31, 2025.
• Total assets were $641.5 million as of September 30, 2026, compared to $413.2 million as of December 31, 2025.

Guidance and Future Outlook:

• Full-year 2026 revenue guidance raised to $520 million to $530 million, up from the previous range of $490 million to $500 million.
• Full-year 2026 Adjusted EBITDA guidance raised to $90 million to $100 million, up from the previous range of $66 million to $78 million.
• Advanced AlloHeme toward a planned first-quarter 2027 commercial launch.
• Advanced HistoMap Kidney toward broader commercial availability in 2027, with both programs targeting CLIA readiness before year-end.

Business Segments and Product Lines:

• Specialty Oncology revenue was added following the acquisition of NavDx, contributing $12 million to Testing Services revenue in Q3 2026.
• CareDx Pharmacy services drove continued growth in Patient and Digital Solutions revenue.
• Epic Aura adoption continued across the portfolio.
• More than 5,000 transplant patients registered for the new CareDx patient portal.
• NavDx migration to the CareDx billing platform was completed.
• The Lab Products business was divested on June 30, 2026, and is excluded from Q3 2026 results.

Market and Competitive Landscape:

• Molecular information is seeing significant clinical interest for informing patient care decisions across the care journey.
• New HistoMap data published in Transplantation demonstrates potential to identify clinically meaningful risk beyond conventional pathology.
• NavDx clinical evidence broadened across multiple contexts of use, including an eight-center study of 332 patients evaluating molecular results during the first three months after treatment.
• Two independent Phase II studies explored radiation de-escalation for NavDx after surgery and during definitive treatment.
• KOAR registry data presented demonstrates AlloSure Kidney's potential to identify patients at greater risk of graft loss or declining kidney function when biopsy findings are difficult to interpret.

Risks and Challenges:

• Forward-looking statements are subject to numerous risks and uncertainties, including general economic and market factors, and global economic and marketplace uncertainties.
• Actual results may differ materially from projections due to factors discussed in filings with the SEC, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Management Commentary and Tone:

• John Hanna, President and CEO, described the quarter as "another strong quarter of solid execution" with continued growth in Transplant and progress scaling Specialty Oncology.
• Management highlighted advances across the pipeline and clinical evidence, including in Cell Therapy.
• The company believes dynamics regarding molecular information and solution adoption create opportunities for continued profitable growth.

Other Key Points:

• Closed the acquisition of Naveris, Inc. on July 1, 2026, for $160 million in cash consideration and up to $100 million in contingent consideration.
• Completed the divestiture of the Lab Products business on June 30, 2026.
• GAAP net income per share was $0.37 basic and $0.35 diluted, compared to $0.03 in Q3 2025.
• Non-GAAP net income was $38.4 million, compared to $14.9 million in Q3 2025.
• Non-GAAP basic net income per share was $0.74 and diluted was $0.70, compared to $0.28 in Q3 2025.
• Free cash flow (non-GAAP) was $11.1 million for the quarter, calculated as cash from operations less capital expenditures of $1.6 million.
• Contingent consideration liability increased to $14.0 million as of September 30, 2026, from $161,000 as of December 31, 2025.