CareDx Announces Fourth Quarter and Full Year 2025 Financial Results

BRISBANE, Calif.--( BUSINESS WIRE)--CareDx, Inc. (Nasdaq: CDNA) — The Transplant Company™, a leading precision medicine company focused on the discovery, development, and commercialization of clinically differentiated, high‑value healthcare solutions for transplant patients and caregivers, today reported financial results for the fourth quarter and full year ended December 31, 2025.

Fourth Quarter 2025 Financial Highlights

Recent Business Highlights

Full Year 2025 Financial Highlights

“We delivered a strong finish to 2025, reflecting disciplined execution across the business and continued momentum in our core testing services, patient and digital solutions, and lab products,” said John W. Hanna, President and CEO of CareDx. “As we enter 2026, we believe we are well positioned to build on this momentum and continue delivering meaningful value for transplant patients, clinicians, and shareholders.”

Q4 2025 Financial Results

Total revenue was $108 million, compared to $87 million in the fourth quarter of 2024, an increase of 25%.

Testing services revenue was $78 million, compared to $64 million in the fourth quarter of 2024, an increase of 23%.

Patient and digital solutions revenue was $17 million, compared to $11 million in the fourth quarter of 2024, an increase of 47%.

Product revenue was $13 million, compared to $11 million in the fourth quarter of 2024, an increase of 17%.

GAAP net loss was $4 million, compared to GAAP net income of $88 million in the fourth quarter 2024. Basic and diluted GAAP net loss per share was $0.08, compared to diluted GAAP net income per share of $1.51 in the fourth quarter of 2024.

Non-GAAP net income was $6 million, compared to $11 million in the fourth quarter of 2024. Diluted non-GAAP net income per share was $0.12 compared to $0.18 in the fourth quarter of 2024.

Adjusted EBITDA was $7 million, compared to $10 million in the fourth quarter of 2024. Adjusted EBITDA includes approximately $7 million of operating expenses for compensation in lieu of equity grants for non-executives in the fourth quarter of 2025.

Full Year 2025 Financial Results

Total revenue for the full year ended December 31, 2025, was $380 million, an increase of 14% compared to $334 million in 2024.

Testing services revenue for the full year 2025 was $275 million, an increase of 10% compared with $249 million in 2024. Patient and digital solutions revenue for the full year 2025 was $57 million, an increase of 31% compared to $44 million in 2024. Product revenue for the full year 2025 was $48 million, an increase of 19% compared to $41 million in 2024.

GAAP net loss for the full year 2025 was $21 million, compared to GAAP net income of $53 million in 2024, which included a $96 million reversal of a litigation accrual associated with damages related to the alleged infringement of patent '544 accrued in 2023. Diluted GAAP net loss per share for the full year 2025 was $0.40, compared to diluted GAAP net income per share of $0.93 in the full year 2024.

Non-GAAP net income was $32 million for the full year 2025, compared to a non-GAAP net income of $31 million for the full year ended 2024. Diluted non-GAAP net income per share was $0.58 in the full year of 2025, compared to a diluted non-GAAP net income per share of $0.55 in the full year of 2024.

Adjusted EBITDA for the full year of 2025 was $32 million, compared to adjusted EBITDA of $28 million for the full year of 2024.

Cash and cash equivalents and marketable securities were $201 million as of December 31, 2025, net of $88 million in share repurchases carried out during the year.

For additional information regarding non-GAAP financial measures discussed herein, please see “Use of Non-GAAP Financial Measures,” “Reconciliation of GAAP to Non-GAAP Financial Measures,” “GAAP and Non-GAAP Operating Expenses”, “Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin,” and “Reconciliation of Non-GAAP to Adjusted EBITDA” below.

2026 Guidance

For the full year 2026, CareDx expects revenue to be in the range of $420 million to $444 million, which includes an estimated 6-month impact of the Medicare LCD of approximately $7.5 million. The Company expects full year 2026 adjusted EBITDA to be in the range of $30 million to $45 million.

About CareDx

CareDx is a precision medicine company dedicated to improving outcomes for transplant patients and advancing organ health. The Company’s integrated solutions include non‑invasive molecular testing for heart, kidney, and lung transplants; laboratory products; digital health technologies; and patient solutions that support care before and after transplant. CareDx is the leading provider of genomics‑based information for transplant patients. 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. 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 to be 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 and adjusted EBITDA. 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; costs involved with completing an acquisition; changes in estimated fair value of contingent consideration; litigation settlement expense; transformational initiative costs; 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 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.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except share and per share data)

Three Months Ended December 31,

Twelve Months Ended December 31,

2025

2024

2025

2024

Revenue:

Testing services revenue

$ 78,373

$ 63,819

$ 274,495

$ 249,381

Product revenue

13,256

11,367

48,377

40,783

Patient and digital solutions revenue

16,757

11,393

56,933

43,621

Total revenue

108,386

86,579

379,805

333,785

Operating expenses:

Cost of testing services

16,821

14,224

62,045

55,611

Cost of product

6,757

5,580

22,953

23,381

Cost of patient and digital solutions

11,934

8,392

38,241

30,704

Research and development

19,306

16,614

71,429

72,510

Sales and marketing

30,924

21,341

102,643

81,975

General and administrative

28,684

32,349

107,565

125,139

Litigation settlement expense

—

(96,300)

5,710

(96,300)

Total operating expenses

114,426

2,200

410,586

293,020

(Loss) income from operations

(6,040)

84,379

(30,781)

40,765

Other income:

Interest income, net

2,013

3,053

9,174

11,765

Other income, net

264

436

524

329

Total other income

2,277

3,489

9,698

12,094

(Loss) income before income taxes

(3,763)

87,868

(21,083)

52,859

Income tax expense

(345)

(171)

(271)

(310)

Net (loss) income

$ (4,109)

$ 87,697

$ (21,354)

$ 52,549

Net (loss) income per share (Note 3):

Basic

$ (0.08)

$ 1.62

$ (0.40)

$ 1.00

Diluted

$ (0.08)

$ 1.51

$ (0.40)

$ 0.93

Weighted-average shares used to compute net (loss) income per share:

Basic

51,124,846

54,283,644

53,287,546

52,773,247

Diluted

51,124,846

58,221,755

53,287,546

56,620,590

CareDx, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)

As of December 31,

2025

2024

Assets

Current assets:

Cash and cash equivalents

$ 65,429

$ 114,689

Marketable securities

111,779

145,964

Accounts receivable

42,628

64,605

Inventory

26,705

19,503

Prepaid and other current assets

10,591

7,071

Total current assets

257,132

351,832

Property and equipment, net

32,971

33,552

Operating lease right-of-use assets

22,760

24,340

Marketable securities, non-current

24,165

—

Intangible assets, net

31,960

38,184

Goodwill

40,336

Restricted cash

551

585

Other assets

3,353

2,221

Total assets

$ 413,228

$ 491,050

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$ 9,988

$ 7,686

Accrued compensation

38,107

38,333

Accrued and other liabilities

41,754

43,352

Total current liabilities

89,849

89,371

Deferred tax liability

181

164

Contingent consideration

161

174

Operating lease liabilities, less current portion

19,679

22,263

Other liabilities

257

645

Total liabilities

110,127

112,617

Commitments and contingencies

Stockholders’ equity:

Common stock

Additional paid-in capital

1,043,925

1,013,193

Accumulated other comprehensive loss

(5,515)

(8,569)

Accumulated deficit

(735,359)

(626,242)

Total stockholders’ equity

303,101

378,433

Total liabilities and stockholders’ equity

$ 413,228

$ 491,050

CareDx, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited)

(In thousands)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Cost of testing services reconciliation:

GAAP cost of testing services

$ 16,821

$ 14,224

$ 62,045

$ 55,611

Stock-based compensation expense

(272)

(328)

(1,263)

(1,560)

Restructuring costs

—

(120)

—

Acquisition related-amortization of purchased intangibles

(347)

(329)

(1,386)

(1,316)

Non-GAAP cost of testing services

$ 16,202

$ 13,567

$ 59,276

$ 52,735

Cost of product reconciliation:

GAAP cost of product

$ 6,757

$ 5,580

$ 22,953

$ 23,434

Stock-based compensation expense

(73)

(94)

(464)

(870)

Acquisition related-amortization of purchased intangibles

(451)

(410)

(1,751)

(1,660)

Restructuring costs

—

(175)

(53)

Non-GAAP cost of product

$ 6,233

$ 5,076

$ 20,563

$ 20,851

Cost of patient and digital solutions reconciliation:

GAAP cost of patient and digital solutions

$ 11,934

$ 8,392

$ 38,241

$ 30,656

Stock-based compensation expense

(96)

(228)

(624)

(1,276)

Acquisition related-amortization of purchased intangibles

(152)

(171)

(610)

(850)

Restructuring costs

—

(18)

(166)

(18)

Other income

—

Non-GAAP cost of patient and digital solutions

$ 11,686

$ 7,975

$ 36,841

$ 28,517

Research and development expenses reconciliation:

GAAP research and development expenses

$ 19,306

$ 16,614

$ 71,429

$ 72,504

Stock-based compensation expense

(1,131)

(1,338)

(5,043)

(6,501)

Restructuring costs

—

(84)

(174)

(99)

Other charges

—

(25)

Non-GAAP research and development expenses

$ 18,175

$ 15,192

$ 66,212

$ 65,879

Sales and marketing expenses reconciliation:

GAAP sales and marketing expenses

$ 30,924

$ 21,341

$ 102,643

$ 81,975

Stock-based compensation expense

(1,579)

(2,278)

(8,091)

(11,035)

Acquisition related-amortization of purchased intangibles

(671)

(625)

(2,602)

(2,520)

Transformational initiative costs*

(429)

—

(612)

—

Restructuring costs

—

(257)

(221)

(257)

Other charges

—

(8)

Non-GAAP sales and marketing expenses

$ 28,245

$ 18,181

$ 91,117

$ 68,155

General and administrative expenses reconciliation:

GAAP general and administrative expenses

$ 28,684

$ (63,951)

$ 113,275

$ 28,840

Stock-based compensation expense

(4,939)

(12,245)

(19,380)

(45,164)

Change in estimated fair value of contingent consideration

(156)

(170)

(703)

(931)

Acquisition related fees and expenses

—

(204)

(40)

Litigation settlement expense

—

96,300

(5,710)

96,300

Restructuring costs

—

(1,356)

(34)

(1,356)

Transformational initiative costs*

—

(2,212)

—

Impairment of intangible asset

(2,258)

—

Other income (charges)

$ —

$ 22

Non-GAAP general and administrative expenses

$ 23,589

$ 18,578

$ 82,774

$ 77,671

Total other income reconciliation:

GAAP other income

$ 2,277

$ 3,489

$ 9,698

$ 12,094

Other income

—

(500)

—

(500)

Non-GAAP other income

$ 2,277

$ 2,989

$ 9,698

$ 11,594

Income tax benefit (expense) reconciliation:

GAAP income tax expense

$ (345)

$ (171)

$ (271)

$ (310)

Tax effect related to amortization of purchased intangibles

(112)

(98)

(431)

(400)

Non-GAAP income tax expense

$ (457)

$ (269)

$ (702)

$ (710)

* Transformational initiative costs consist of consulting expenses which relate to our ongoing transformation strategy that we have undertaken as a series of initiatives focused on operational excellence, enterprise-wide efficiency, and long-term strategic growth, including rebranding costs.

CareDx, Inc.

GAAP and Non-GAAP Operating Expenses

(Unaudited)

(In thousands)

Three Months Ended December 31,

Twelve Months Ended December 31,

2025

2024

2025

2024

GAAP operating expenses:

Research and development

$ 19,306

$ 16,614

$ 71,429

$ 72,504

Sales and marketing

30,924

21,341

102,643

81,975

General and administrative

28,684

(63,951)

113,275

28,840

Total GAAP operating expenses

$ 78,914

$ (25,996)

$ 287,347

$ 183,319

Non-GAAP operating expenses:

Research and development

$ 18,175

$ 15,192

$ 66,212

$ 65,879

Sales and marketing

28,245

18,181

91,117

68,155

General and administrative

23,589

18,578

82,774

77,671

Total Non-GAAP operating expenses

$ 70,009

$ 51,951

$ 240,103

$ 211,705

CareDx, Inc.

Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin

(Unaudited)

(In thousands, except percentages)

Three Months Ended December 31,

Twelve Months Ended December 31,

2025

2024

2025

2024

GAAP total revenue

$ 108,386

$ 86,579

$ 379,805

$ 333,785

GAAP cost of sales

35,512

28,196

123,239

109,696

GAAP gross profit

72,874

58,383

256,566

224,089

GAAP gross margin %

67%

68%

67%

Stock-based compensation expense

441

650

2,351

3,706

Restructuring costs

—

461

Other income

—

(5)

Acquisition related-amortization of purchased intangibles

950

910

3,747

3,826

Non-GAAP gross profit

$ 74,265

$ 59,961

$ 263,125

$ 231,687

Non-GAAP gross margin %

69%

CareDx, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited)

(In thousands, except share and per share data)

Three Months Ended December 31,

Twelve Months Ended December 31,

2025

2024

2025

2024

GAAP net income (loss)

$ (4,109)

$ 87,697

$ (21,354)

$ 52,549

Stock-based compensation expense

8,090

16,511

34,864

66,406

Acquisition related-amortization of purchased intangibles

1,621

1,535

6,349

6,346

Acquisition related fees and expenses

—

204

Change in estimated fair value of contingent consideration

156

170

703

931

Other income and charges

—

(500)

—

(494)

Tax effect related to amortization of purchased intangibles

(112)

(98)

(431)

(400)

Impairment of intangible asset

—

2,258

—

Transformational initiative costs*

429

—

2,824

—

Restructuring costs

—

1,715

890

1,783

Litigation settlement expense

—

(96,300)

5,710

(96,300)

Non-GAAP net income

$ 6,075

$ 10,730

$ 32,017

$ 30,861

GAAP basic net income (loss) per share

$ (0.08)

$ 1.62

$ (0.40)

$ 1.00

GAAP diluted net income (loss) per share

$ (0.08)

$ 1.51

$ (0.40)

$ 0.93

Non-GAAP basic net income per share

$ 0.12

$ 0.20

$ 0.60

$ 0.58

Non-GAAP diluted net income per share

$ 0.12

$ 0.18

$ 0.58

$ 0.55

Shares used in computing non-GAAP basic net income per share

51,124,846

54,283,644

53,287,546

52,773,247

Shares used in computing non-GAAP diluted net income per share

52,772,780

58,221,755

55,413,710

56,620,590

CareDx, Inc.

Reconciliation of Non-GAAP to Adjusted EBITDA

(Unaudited)

(In thousands)

Three Months Ended December 31,

Twelve Months Ended December 31,

2025

2024

2025

2024

GAAP net income (loss)

$ (4,109)

$ 87,697

$ (21,354)

$ 52,549

Stock-based compensation expense

8,090

16,511

34,864

66,406

Acquisition related-amortization of purchased intangibles

1,621

1,535

6,349

6,346

Acquisition related fees and expenses

—

204

Change in estimated fair value of contingent consideration

156

170

703

931

Other income and charges

—

(500)

—

(494)

Tax effect related to amortization of purchased intangibles

(112)

(98)

(431)

(400)

Impairment of intangible asset

—

2,258

—

Transformational initiative costs*

429

—

2,824

—

Restructuring costs

—

1,715

890

1,783

Litigation settlement expense

—

(96,300)

5,710

(96,300)

Non-GAAP net income

6,075

10,730

32,017

30,861

Interest income

(2,013)

(3,053)

(9,174)

(11,765)

Income tax expense

457

269

702

710

Depreciation expense

2,261

1,824

8,667

7,848

Other expense (income), net

(264)

(524)

171

Adjusted EBITDA

$ 6,517

$ 9,834

$ 31,689

$ 27,825