CareDx Announces Third Quarter 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 third quarter ended September 30, 2025.

Third Quarter 2025 Financial Highlights

Recent Business Highlights

“We achieved record-setting third quarter 2025 financial results, a testament to our market leadership that has been established through a deep commitment to innovation and transplant patient care,” said John W. Hanna, President and CEO of CareDx. “Our strategy to extend that leadership and deliver long-term profitable growth is guided by putting our customers at the center of everything we do, and we believe that strategy is working.”

Q3 2025 Financial Results

Total revenue was $100.1 million compared to $82.9 million in the third quarter of 2024, an increase of 21%.

Testing services revenue was $72.2 million, compared to $60.8 million in the third quarter of 2024, an increase of 19%.

Patient and Digital Solutions revenue was $15.4 million, compared to $11.9 million in the third quarter of 2024, an increase of 30%.

Product revenue was $12.5 million, an increase of 22% compared to $10.2 million in the third quarter of 2024.

GAAP net income was $1.7 million compared to GAAP net loss of $10.6 million in the third quarter 2024. Basic and diluted GAAP net income per share was $0.03 compared to basic and diluted GAAP net loss per share of $0.20 in the third quarter of 2024.

Non-GAAP net income was $14.9 million compared to $8.0 million in the third quarter of 2024. Diluted non-GAAP net income per share was $0.28 compared to $0.14 in the third quarter of 2024.

Adjusted EBITDA was $15.3 million compared to $6.9 million in the third quarter of 2024.

2025 Guidance

For the full year 2025, CareDx now expects revenue to be in the range of $372 million to $376 million, compared to the $367 million to $373 million range that was previously disclosed. The Company now expects full year 2025 adjusted EBITDA to be in the range of $35 million to $39 million, compared to the $29 million to $33 million range that was previously disclosed.

About CareDx – The Transplant Company

CareDx, Inc., headquartered in Brisbane, California, is a leading precision medicine solutions company focused on the discovery, development, and commercialization of clinically differentiated, high-value healthcare solutions for transplant patients and caregivers. CareDx offers testing services, products, and digital healthcare solutions along the pre- and post-transplant patient journey and 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 2025. 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, 2024 filed by CareDx with the SEC on February 28, 2025, 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 2025 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 September 30,

2025

2024

Revenue:

Testing services revenue

72,168

60,807

Product revenue

12,478

10,212

Patient and digital solutions revenue

15,409

11,864

Total revenue

100,055

82,883

Operating expenses:

Cost of testing services

14,705

13,447

Cost of product

5,629

6,212

Cost of patient and digital solutions

10,320

7,913

Research and development

16,769

17,486

Sales and marketing

24,449

19,802

General and administrative

28,429

31,744

Total operating expenses

100,301

96,604

Loss from operations

(246

)

(13,721

)

Other income:

Interest income, net

2,013

3,001

Other (expense) income, net

(107

)

283

Total other income

1,906

3,284

Income (loss) before income taxes

1,660

(10,437

)

Income tax benefit (expense)

(200

)

Net income (loss)

1,675

(10,637

)

Net income (loss) per share:

Basic

0.03

(0.20

)

Diluted

0.03

(0.20

)

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

Basic

52,507,582

52,903,338

Diluted

53,736,790

52,903,338

CareDx, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)

September 30, 2025

December 31, 2024

Assets

Current assets:

Cash and cash equivalents

91,435

114,689

Marketable securities

102,782

145,964

Accounts receivable

47,844

64,605

Inventory

28,328

19,503

Prepaid and other current assets

29,891

7,071

Total current assets

300,280

351,832

Property and equipment, net

30,845

33,552

Operating leases right-of-use assets

24,047

24,340

Intangible assets, net

33,446

38,184

Goodwill

40,336

Restricted cash

551

585

Other assets

2,802

2,221

Total assets

432,307

491,050

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

11,597

7,686

Accrued compensation

23,237

38,333

Accrued litigation settlement expense

20,250

—

Accrued and other liabilities

43,960

43,352

Total current liabilities

99,044

89,371

Deferred tax liability

117

164

Contingent consideration

160

174

Operating lease liability, less current portion

21,212

22,263

Other liabilities

634

645

Total liabilities

121,167

112,617

Commitments and contingencies

Stockholders’ equity:

Common stock

Additional paid-in capital

1,036,091

1,013,193

Accumulated other comprehensive loss

(5,955

)

(8,569

)

Accumulated deficit

(719,047

)

(626,242

)

Total stockholders’ equity

311,140

378,433

Total liabilities and stockholders’ equity

432,307

491,050

CareDx, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited)

(In thousands)

Three Months Ended September 30,

2025

2024

Cost of testing services reconciliation:

GAAP cost of testing services

14,705

13,447

Stock-based compensation expense

(299

)

(418

)

Restructuring costs

(120

)

—

Acquisition related-amortization of purchased intangibles

(348

)

(329

)

Non-GAAP cost of testing services

13,938

12,700

Cost of product reconciliation:

GAAP cost of product

5,629

6,212

Stock-based compensation expense

(51

)

(234

)

Acquisition related-amortization of purchased intangibles

(447

)

(419

)

Restructuring costs

(11

)

—

Non-GAAP cost of product

5,120

5,559

Cost of patient and digital solutions reconciliation:

GAAP cost of patient and digital solutions

10,320

7,913

Stock-based compensation expense

(118

)

(326

)

Acquisition related-amortization of purchased intangibles

(152

)

(170

)

Restructuring costs

—

Non-GAAP cost of patient and digital solutions

10,058

7,417

Research and development expenses reconciliation:

GAAP research and development expenses

16,769

17,486

Stock-based compensation expense

(1,146

)

(1,775

)

Restructuring costs

(174

)

—

Non-GAAP research and development expenses

15,449

15,711

Sales and marketing expenses reconciliation:

GAAP sales and marketing expenses

24,449

19,802

Stock-based compensation expense

(1,782

)

(2,786

)

Acquisition related-amortization of purchased intangibles

(655

)

(634

)

Transformational initiative costs*

(183

)

—

Restructuring costs

(233

)

—

Non-GAAP sales and marketing expenses

21,596

16,382

General and administrative expenses reconciliation:

GAAP general and administrative expenses

28,429

31,744

Stock-based compensation expense

(5,022

)

(11,384

)

Change in estimated fair value of contingent consideration

—

(232

)

Transformational initiative costs*

(341

)

—

Impairment of intangible asset

(2,258

)

—

Non-GAAP general and administrative expenses

20,808

20,128

Total other income reconciliation:

GAAP other income

1,906

3,284

Non-GAAP other income

1,906

3,284

Income tax benefit (expense) reconciliation:

GAAP income tax benefit (expense)

(200

)

Tax effect related to amortization of purchased intangibles

(111

)

(102

)

Non-GAAP income tax expense

(96

)

(302

)

* 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 September 30,

2025

2024

GAAP operating expenses:

Research and development

16,769

17,486

Sales and marketing

24,449

19,802

General and administrative

28,429

31,744

Total GAAP operating expenses

69,647

69,032

Non-GAAP operating expenses:

Research and development

15,449

15,711

Sales and marketing

21,596

16,382

General and administrative

20,808

20,128

Total Non-GAAP operating expenses

57,853

52,221

CareDx, Inc.

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

(Unaudited)

(In thousands, except percentages)

Three Months Ended September 30,

2025

2024

GAAP total revenue

100,055

82,883

GAAP cost of sales

30,654

27,572

GAAP gross profit

69,401

55,311

GAAP gross margin %

Stock-based compensation expense

468

978

Restructuring costs

123

—

Acquisition related-amortization of purchased intangibles

947

918

Non-GAAP gross profit

70,939

57,207

Non-GAAP gross margin %

CareDx, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited)

(In thousands, except share and per share data)

Three Months Ended September 30,

2025

2024

GAAP net income (loss)

1,675

(10,637

)

Stock-based compensation expense

8,418

16,923

Acquisition related-amortization of purchased intangibles

1,602

1,552

Change in estimated fair value of contingent consideration

—

232

Tax effect related to amortization of purchased intangibles

(111

)

(102

)

Impairment of intangible asset

2,258

—

Transformational initiative costs*

524

—

Restructuring costs

530

—

Non-GAAP net income

14,896

7,968

GAAP basic net income (loss) per share

0.03

(0.20

)

GAAP diluted net income (loss) per share

0.03

(0.20

)

Non-GAAP basic net income per share

0.28

0.15

Non-GAAP diluted net income per share

0.28

0.14

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

52,507,582

52,903,338

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

53,736,790

57,699,624

CareDx, Inc.

Reconciliation of Non-GAAP to Adjusted EBITDA

(Unaudited)

(In thousands)

Three Months Ended September 30,

2025

2024

GAAP net income (loss)

1,675

(10,637

)

Stock-based compensation expense

8,418

16,923

Acquisition related-amortization of purchased intangibles

1,602

1,552

Change in estimated fair value of contingent consideration

—

232

Tax effect related to amortization of purchased intangibles

(111

)

(102

)

Impairment of intangible asset

2,258

—

Transformational initiative costs*

524

—

Restructuring costs

530

—

Non-GAAP net income

14,896

7,968

Interest income

(2,013

)

(3,001

)

Income tax expense

302

Depreciation expense

2,213

1,919

Other expense (income), net

107

(283

)

Adjusted EBITDA

15,299

6,905