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.

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

 

 

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