CareDx Announces First Quarter 2026 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 first quarter ended March 31, 2026.

• Revenue of $118 million, an increase of 39% year-over-year

• Testing services revenue of $91 million, an increase of 48% year-over-year, and testing services volume of approximately 54,900, an increase of 17% year-over-year

• Patient and digital solutions revenue of $16 million and lab product revenue of $10 million, representing year-over-year growth of 33% and a decline of 4%, respectively

• Average revenue per test of approximately $1,660 including approximately $14 million in prior period revenue

• GAAP net income of $3 million, compared to GAAP net loss of $10 million for the first quarter of 2025

• Adjusted EBITDA of $19 million, compared to $5 million for the first quarter of 2025

• Cash flow from operations of $4 million

• Announced definitive agreement to divest the Lab Products business to Eurobio Scientific for $170 million in cash consideration

• Advanced pipeline program with presentation of the AlloHeme clinical trial data at TANDEM Annual Conference

• Launched VANTx™, an AI powered, cloud native clinical data and analytics platform designed to transform complex transplant data into insights that support clinical research and real-world evidence development

• Achieved a record quarter for cash collections, reflecting disciplined operational execution and focus on high margin Testing Services growth

• Advanced Epic Aura integrations, with nine transplant centers live and 16 integrations in-process

• Presented more than 50 abstracts at the International Society for Heart and Lung Transplantation (ISHLT) Annual Meeting, reflecting the breadth of CareDx’s clinical evidence and leadership in transplantation

• In April 2026, the Board of Directors authorized a common stock repurchase program of up to $100 million of shares over a period of up to 24 months

“Our team delivered another quarter of record growth, driven by continued momentum in our Precision Medicine Testing Services and Patient and Digital Solutions businesses,” said John W. Hanna, President and CEO of CareDx. “And we took important strategic steps advancing our lead pipeline asset, AlloHeme, and agreeing to divest the Lab Products business to simplify our operating model and create focus, with the goal of expanding our AEBITDA margins.”

Total revenue was $118 million, compared to $85 million in the first quarter of 2025, an increase of 39% driven primarily by higher Testing Services revenue, reflecting increased testing volumes, continued execution across core transplant testing programs, and contributions from Patient and Digital Solutions; partially offset by lower Lab Products revenue as the Company advances its portfolio optimization strategy.

Testing services revenue of $91 million, an increase of 48% year over year, and testing services volume of approximately 54,900, an increase of 17% year over year, reflecting an increase in average revenue per test, including the recognition of prior period revenue associated with improved collections, a favorable mix-shift in surveillance testing, and increased for-cause growth across transplant programs.

Patient and digital solutions revenue was $16 million, compared to $12 million in the first quarter of 2025, an increase of 33% driven by continued adoption of new transplant centers in the CareDx Pharmacy, along with increasing adoption of digital solutions.

Lab Product revenue remained relatively flat at $10 million, down 4% from the first quarter of 2025, while the Company continues to focus on growth in its core Testing Services and Patient and Digital Solutions businesses.

GAAP net income was $3 million, compared to GAAP net loss of $10 million in the first quarter of 2025. Basic and diluted GAAP net income per share was $0.05, compared to basic and diluted GAAP net loss per share of $0.19 in the first quarter of 2025, reflecting higher revenue and improved operating leverage.

Non-GAAP net income was $18 million, compared to $5 million in the first quarter of 2025. Diluted non-GAAP net income per share was $0.34 compared to $0.09 i n the first quarter of 2025.

Adjusted EBITDA was $19 million, compared to $5 million in the first quarter of 2025, driven by revenue growth and continued focus on operational efficiency and cost discipline.

For the full year 2026, CareDx now expects revenue to be in the range of $447 million to $465 million, compared to the $420 million to $444 million range that was previously disclosed. The Company now expects full year 2026 adjusted EBITDA to be in the range of $43 million to $57 million.

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 visitwww.caredx.com.

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 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.

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; changes in estimated fair value of contingent consideration; litigation settlement expense; business development and portfolio optimization expense; 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. 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.

(In thousands, except share and per share data)

Revenue:

Testing services revenue

$ 91,398

$ 61,921

Product revenue

10,346

10,810

Patient and digital solutions revenue

15,956

11,954

Total revenue

117,700

84,685

Operating expenses:

Cost of testing services

17,097

15,113

Cost of product

4,834

5,586

Cost of patient and digital solutions

11,698

7,716

Research and development

21,416

18,524

Sales and marketing

30,373

22,991

General and administrative

30,484

22,769

Litigation settlement expense

600

5,360

Total operating expenses

116,502

98,059

Income (loss) from operations

1,198

(13,374)

Other income:

Interest income, net

1,909

2,784

Other (expense) income, net

(330)

295

Total other income

1,579

3,079

Income (loss) before income taxes

2,777

(10,295)

Income tax benefit (expense)

32

(58)

Net income (loss)

$ 2,809

$ (10,353)

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

Basic

$ 0.05

$ (0.19)

Diluted

$ 0.05

$ (0.19)

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

Basic

51,151,794

55,262,459

Diluted

53,129,928

55,262,459

(In thousands)

Current assets:

Cash and cash equivalents

$ 77,923

$ 65,429

Marketable securities

109,253

111,779

Accounts receivable

44,585

42,628

Inventory

26,404

26,705

Prepaid and other current assets

11,230

10,591

Total current assets

269,395

257,132

Property and equipment, net

33,156

32,971

Operating lease right-of-use assets

21,206

22,760

Marketable securities, non-current

10,901

24,165

Intangible assets, net

32,102

31,960

Goodwill

40,336

40,336

Restricted cash

551

551

Other assets

3,415

3,353

Total assets

$ 411,062

$ 413,228

Current liabilities:

Accounts payable

$ 9,066

$ 9,988

Accrued compensation

20,545

38,107

Accrued and other liabilities

49,542

41,754

Total current liabilities

79,153

89,849

Deferred tax liability

130

181

Operating lease liabilities, less current portion

17,837

19,679

Other liabilities

407

418

Total liabilities

97,527

110,127

Commitments and contingencies

Stockholders’ equity:

Common stock

51

50

Additional paid-in capital

1,052,306

1,043,925

Accumulated other comprehensive loss

(6,272)

(5,515)

Accumulated deficit

(732,550)

(735,359)

Total stockholders’ equity

313,535

303,101

Total liabilities and stockholders’ equity

$ 411,062

$ 413,228

(In thousands)

GAAP cost of testing services

$ 17,097

$ 15,113

Stock-based compensation expense

(265)

(363)

Acquisition related-amortization of purchased intangibles

(311)

(347)

Non-GAAP cost of testing services

$ 16,521

$ 14,403

GAAP cost of product

$ 4,834

$ 5,586

Stock-based compensation expense

(89)

(231)

Acquisition related-amortization of purchased intangibles

(512)

(412)

Non-GAAP cost of product

$ 4,233

$ 4,943

GAAP cost of patient and digital solutions

$ 11,698

$ 7,716

Stock-based compensation expense

(134)

(220)

Acquisition related-amortization of purchased intangibles

(152)

(152)

Non-GAAP cost of patient and digital solutions

$ 11,412

$ 7,344

GAAP research and development expenses

$ 21,416

$ 18,524

Stock-based compensation expense

(1,323)

(1,359)

Non-GAAP research and development expenses

$ 20,093

$ 17,165

GAAP sales and marketing expenses

$ 30,373

$ 22,991

Stock-based compensation expense

(1,835)

(2,584)

Acquisition related-amortization of purchased intangibles

(643)

(628)

Non-GAAP sales and marketing expenses

$ 27,895

$ 19,779

GAAP general and administrative expenses

$ 31,084

$ 28,129

Business development and portfolio optimization expense*

(3,357)

—

Stock-based compensation expense

(6,157)

(4,174)

Change in estimated fair value of contingent consideration

—

(46)

Litigation settlement expense

(600)

(5,360)

Non-GAAP general and administrative expenses

$ 20,970

$ 18,549

GAAP other income

$ 1,579

$ 3,079

Non-GAAP other income

$ 1,579

$ 3,079

GAAP income tax expense

$ 32

$ (58)

Tax effect related to amortization of purchased intangibles

(126)

(99)

Non-GAAP income tax expense

$ (94)

$ (157)

* 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 and the sale of our lab product business.

(In thousands)

GAAP operating expenses:

Research and development

$ 21,416

$ 18,524

Sales and marketing

30,373

22,991

General and administrative

31,084

28,129

Total GAAP operating expenses

$ 82,873

$ 69,644

Non-GAAP operating expenses:

Research and development

$ 20,093

$ 17,165

Sales and marketing

27,895

19,779

General and administrative

20,970

18,549

Total Non-GAAP operating expenses

$ 68,958

$ 55,493

(In thousands, except percentages)

GAAP total revenue

$ 117,700

$ 84,685

GAAP cost of sales

33,629

28,415

GAAP gross profit

84,071

56,270

GAAP gross margin %

71 %

66 %

Stock-based compensation expense

488

814

Acquisition related-amortization of purchased intangibles

975

911

Non-GAAP gross profit

$ 85,534

$ 57,995

Non-GAAP gross margin %

73 %

68 %

(In thousands, except share and per share data)

GAAP net income (loss)

$ 2,809

$ (10,353)

Stock-based compensation expense

9,803

8,931

Business development and portfolio optimization expense*

3,357

—

Acquisition related-amortization of purchased intangibles

1,618

1,539

Change in estimated fair value of contingent consideration

—

46

Tax effect related to amortization of purchased intangibles

(126)

(99)

Litigation settlement expense

600

5,360

Non-GAAP net income

$ 18,061

$ 5,424

GAAP basic net income (loss) per share

$ 0.05

$ (0.19)

GAAP diluted net income (loss) per share

$ 0.05

$ (0.19)

Non-GAAP basic net income per share

$ 0.35

$ 0.10

Non-GAAP diluted net income per share

$ 0.34

$ 0.09

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

51,151,794

55,262,459

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

53,129,928

58,315,877

* 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 and the sale of our lab product business.

(In thousands)

GAAP net income (loss)

$ 2,809

$ (10,353)

Stock-based compensation expense

9,803

8,931

Business development and portfolio optimization expense*

3,357

—

Acquisition related-amortization of purchased intangibles

1,618

1,539

Change in estimated fair value of contingent consideration

—

46

Tax effect related to amortization of purchased intangibles

(126)

(99)

Litigation settlement expense

600

5,360

Non-GAAP net income

18,061

5,424

Interest income

(1,909)

(2,784)

Income tax expense

94

157

Depreciation expense

2,279

2,061

Other expense (income), net

330

(295)

Adjusted EBITDA

$ 18,855

$ 4,563

* 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 and the sale of our lab product business.

(In thousands)

Net cash provided by operating activities (GAAP)

$ 4,333

$ (26,584)

Less: item not included in free cash flows

​

​

Capital expenditures (GAAP)

$ (3,819)

$ (1,630)

Free cash flow (non-GAAP)

$ 514

$ (28,214)