CareDx, Inc. (CDNA)
SIC breadcrumb: Services > SIC Major Group 80 > SIC 8071 Services-Medical Laboratories
SEC company page: https://www.sec.gov/edgar/browse/?CIK=1217234. Latest filing source: 0001217234-26-000018.
Informational only. Descriptive public-record data — not a rating, forecast, or investment advice. See Disclaimer.
At a glance
- Revenue
- 379,805,000 USD verified
- Net income
- -21,354,000 USD verified
- Assets
- 413,228,000 USD verified
- Net margin
- -5.62% computed
- Operating margin
- -8.10% computed
- Revenue YoY
- +13.79% computed
- ROE
- -7.05% computed
Peer & cluster context
Peer percentile fingerprint
Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 8071 Services-Medical Laboratories, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 379,805,000 | USD | 2025 | 2026-02-25 |
| Net income | -21,354,000 | USD | 2025 | 2026-02-25 |
| Assets | 413,228,000 | USD | 2025 | 2026-02-25 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001217234.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 40,631,000 | 48,324,000 | 76,569,000 | 127,068,000 | 192,194,000 | 296,397,000 | 321,793,000 | 280,324,000 | 333,785,000 | 379,805,000 |
| Net income | -39,469,000 | -55,469,000 | -46,756,000 | -21,968,000 | -18,714,000 | -30,662,000 | -76,613,000 | -190,284,000 | 52,549,000 | -21,354,000 |
| Operating income | -37,332,000 | -20,294,000 | -15,578,000 | -24,532,000 | -22,528,000 | -29,726,000 | -77,231,000 | -203,363,000 | 40,765,000 | -30,781,000 |
| Diluted EPS | -2.39 | -2.38 | -1.31 | -0.52 | -0.40 | -0.59 | -1.44 | -3.54 | 0.93 | -0.40 |
| Operating cash flow | -16,523,000 | -14,307,000 | -4,007,000 | -2,769,000 | 33,431,000 | -19,294,000 | -25,239,000 | -18,388,000 | 38,048,000 | 42,032,000 |
| Share buybacks | 0.00 | 0.00 | 642,000 | 27,541,000 | 522,000 | 87,768,000 | ||||
| Assets | 76,730,000 | 83,565,000 | 130,697,000 | 151,736,000 | 368,511,000 | 566,621,000 | 542,991,000 | 466,826,000 | 491,050,000 | 413,228,000 |
| Liabilities | 56,969,000 | 89,519,000 | 34,769,000 | 52,736,000 | 90,832,000 | 100,745,000 | 112,080,000 | 205,498,000 | 112,617,000 | 110,127,000 |
| Stockholders' equity | 19,482,000 | -6,134,000 | 95,928,000 | 99,000,000 | 277,679,000 | 465,876,000 | 430,911,000 | 261,328,000 | 378,433,000 | 303,101,000 |
| Cash and cash equivalents | 17,258,000 | 16,895,000 | 64,616,000 | 38,223,000 | 134,669,000 | 348,485,000 | 89,921,000 | 82,197,000 | 114,689,000 | 65,429,000 |
Ratios
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net margin | -97.14% | -114.79% | -61.06% | -17.29% | -9.74% | -10.34% | -23.81% | -67.88% | 15.74% | -5.62% |
| Operating margin | -91.88% | -42.00% | -20.35% | -19.31% | -11.72% | -10.03% | -24.00% | -72.55% | 12.21% | -8.10% |
| Return on equity | -202.59% | -48.74% | -22.19% | -6.74% | -6.58% | -17.78% | -72.81% | 13.89% | -7.05% | |
| Return on assets | -51.44% | -66.38% | -35.77% | -14.48% | -5.08% | -5.41% | -14.11% | -40.76% | 10.70% | -5.17% |
| Liabilities / equity | 2.92 | 0.36 | 0.53 | 0.33 | 0.22 | 0.26 | 0.79 | 0.30 | 0.36 | |
| Current ratio | 0.65 | 0.62 | 4.16 | 2.07 | 3.95 | 5.61 | 5.10 | 4.02 | 3.94 | 2.86 |
Industry Peer Context
Net margin peer context
Operating margin peer context
ROE peer context
ROA peer context
Financial Charts
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001217234-26-000018; filed 2026-02-25. Concept: RevenueFromContractWithCustomerExcludingAssessedTax. Source concepts: us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001217234-26-000018; filed 2026-02-25. Concept: NetIncomeLoss. Source concepts: us-gaap:NetIncomeLoss.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001217234-26-000018; filed 2026-02-25. Concept: OperatingIncomeLoss. Source concepts: us-gaap:OperatingIncomeLoss.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001217234-26-000018; filed 2026-02-25. Concept: EarningsPerShareDiluted. Source concepts: us-gaap:EarningsPerShareDiluted.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001217234-26-000018; filed 2026-02-25. Concept: NetCashProvidedByUsedInOperatingActivities. Source concepts: us-gaap:NetCashProvidedByUsedInOperatingActivities.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001217234-26-000018; filed 2026-02-25. Concept: PaymentsForRepurchaseOfCommonStock. Source concepts: us-gaap:PaymentsForRepurchaseOfCommonStock.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001217234-26-000018; filed 2026-02-25. Concept: Assets. Source concepts: us-gaap:Assets.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001217234-26-000018; filed 2026-02-25. Concept: Liabilities. Source concepts: us-gaap:Liabilities.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001217234-26-000018; filed 2026-02-25. Concept: StockholdersEquity. Source concepts: us-gaap:StockholdersEquity.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001217234-26-000018; filed 2026-02-25. Concept: CashAndCashEquivalentsAtCarryingValue. Source concepts: us-gaap:CashAndCashEquivalentsAtCarryingValue.
As-reported value updates
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001217234.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2022-Q3 | 2022-09-30 | -0.32 | reported discrete quarter | ||
| 2023-Q1 | 2023-03-31 | -0.44 | reported discrete quarter | ||
| 2023-Q2 | 2023-06-30 | -0.46 | reported discrete quarter | ||
| 2023-Q3 | 2023-09-30 | 67,192,000 | -23,485,000 | -0.43 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 65,569,000 | -118,097,000 | derived Q4 = FY annual - nine-month YTD | |
| 2024-Q1 | 2024-03-31 | 72,049,000 | -16,659,000 | -0.32 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 92,274,000 | -1,394,000 | -0.03 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 82,883,000 | -7,408,000 | -0.14 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 86,579,000 | 78,010,000 | derived Q4 = FY annual - nine-month YTD | |
| 2025-Q1 | 2025-03-31 | 84,685,000 | -10,353,000 | -0.19 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 86,679,000 | -8,568,000 | -0.16 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 100,055,000 | 1,675,000 | 0.03 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 108,386,000 | -4,108,000 | derived Q4 = FY annual - nine-month YTD | |
| 2026-Q1 | 2026-03-31 | 117,700,000 | 2,809,000 | 0.05 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 131,948,000 | 110,636,000 | 2.07 | reported discrete quarter |
Quarterly Charts
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-06-30; accession 0001217234-26-000046; filed 2026-07-30. Concept: RevenueFromContractWithCustomerExcludingAssessedTax. Source concepts: us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax.
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-06-30; accession 0001217234-26-000046; filed 2026-07-30. Concept: NetIncomeLossAvailableToCommonStockholdersBasic. Source concepts: us-gaap:NetIncomeLossAvailableToCommonStockholdersBasic.
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-06-30; accession 0001217234-26-000046; filed 2026-07-30. Concept: EarningsPerShareDiluted. Source concepts: us-gaap:EarningsPerShareDiluted.
Business
Read CDNA's verbatim Item 1 Business section from its latest 10-K: Business.
Risk Factors
Read CDNA's verbatim Item 1A Risk Factors from its latest 10-K: Risk Factors.
Latest quarter (10-Q)
Latest 10-Q source: 0001217234-26-000046.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations should be read together with the unaudited condensed consolidated financial statements and related notes included elsewhere in Item 1 of Part I of this Quarterly Report on Form 10-Q and with the audited consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission, or the SEC, on February 25, 2026.
Overview
We are a precision medicine company dedicated to advancing care in transplant, specialty oncology, and cell therapy. We deliver solutions designed to empower clinicians and improve patient outcomes. Our portfolio spans non-invasive molecular testing, clinical practice management software, AI-powered data and analytics tools, and patient support solutions designed to connect diagnostic insight, clinical workflow, and patient engagement to help improve patient outcomes.
Our commercially available post-transplant testing services consist of AlloSure® Kidney, a donor-derived cell-free DNA, or dd-cfDNA, solution for kidney transplant patients, AlloMap® Heart, a gene expression profiling solution for heart transplant patients, AlloSure® Heart, a dd-cfDNA solution for heart transplant patients, HeartCare, the combined use of AlloMap Heart and AlloSure Heart, and AlloSure® Lung, a dd-cfDNA solution for lung transplant patients. Our commercially available specialty oncology service is NavDx®, a blood-based test that detects and monitors human papillomavirus (HPV)-mediated cancers — including head, neck, and anal cancers — from diagnosis through post-treatment molecular residual disease (MRD) surveillance. We have initiated several clinical studies to generate data on our existing and planned future testing services. From time to time, we partner with pharma and biopharma companies to use our technology and tests, often in clinical trials, to identify or screen for patients that may be appropriate candidates for their products. We also provide digital and patient solutions, including clinical practice management software, data and analytics tools, and patient support offerings.
Highlights for the Three Months Ended June 30, 2026
•Revenue of $132 million, an increase of 52% year-over-year
• Testing Services revenue of $100 million, an increase of 61% year-over-year, and Testing Services volume of approximately 58,000, an increase of 17% year-over-year
• Patient and Digital Solutions revenue of $19 million and Lab Product revenue of $13 million, representing year-over-year growth of 50% and 8%, respectively
• Average revenue per test of approximately $1,720, including $16 million in prior period revenue
• Net income of $111 million, compared to net loss of $9 million for the second quarter of 2025
• Closed the sale of the Lab Products business on June 30, recognizing a $113 million gain on sale included in operating income
• Cash flow from operations of $31 million
Financial Operations Overview
Revenue
We derive our revenue from testing services, product sales, and patient and digital solutions. Revenue is recorded considering a five-step revenue recognition model that includes identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations and recognizing revenue when, or as, an entity satisfies a performance obligation.
Testing Services Revenue
Our testing services revenue is derived from AlloSure Kidney, AlloMap Heart, AlloSure Heart and AlloSure Lung tests, which represented 76% and 77% of our total revenue for each of the three and six months ended June 30, 2026, respectively, and 72% of our total revenue for each of the three and six months ended June 30, 2025. Our testing services revenue depends on a number of factors, including (i) the number of tests performed; (ii) establishment of coverage policies by third-party insurers and government payers; (iii) our ability to collect from payers with whom we do not have positive coverage determination, which often requires that we pursue a case-by-case appeals process; (iv) our ability to recognize revenues on tests billed prior to the establishment of reimbursement policies, contracts or payment histories; and (v) how quickly we can successfully commercialize new product offerings.
Product Revenue
Our product revenue is derived primarily from sales of AlloSeq Tx, Olerup SSP and QTYPE products. Product revenue represented 10% and 9% of our total revenue for the three and six months ended June 30, 2026, respectively, and 14% and 13% of our total revenue for the three and six months ended June 30, 2025, respectively. We recognize product revenue from the sale
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of products to end-users, distributors and strategic partners when all revenue recognition criteria are satisfied. We generally have a contract or a purchase order from a customer with the specified required terms of order, including the number of products ordered. Transaction prices are determinable and products are delivered and risk of loss passed to the customer upon either shipping or delivery, as per the terms of the agreement. There are no further performance obligations related to a contract and revenue is recognized at the point of delivery consistent with the terms of the contract or purchase order.
On June 30, 2026, we completed the sale of our lab products business, which included our kitted laboratory products, to Eurobio (see Note 1 to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q).
Patient and Digital Solutions Revenue
Our patient and digital solutions revenue is mainly derived from sales of our Ottr software, XynQAPI, MedActionPlan, mTilda (HLA Data Systems), TransChart and Tx Access licenses, services and SaaS agreements across the digital portfolio, as well as our pharmacy sales at The Transplant Pharmacy, or TTP. Patient and digital solutions revenue represented 15% and 14% of our total revenue for the three and six months ended June 30, 2026, respectively, and 15% and 14% of our total revenue for the three and six months ended June 30, 2025, respectively.
Factors Affecting Our Performance
The Number of AlloSure Kidney, AlloMap Heart, AlloSure Heart, HeartCare and AlloSure Lung Tests We Receive and Report
The growth of our testing services is tied to the number of AlloSure Kidney, AlloMap Heart, AlloSure Heart, HeartCare and AlloSure Lung patient samples we receive and patient results we report. We incur costs in connection with collecting and shipping all samples and a portion of the costs when we cannot ultimately issue a report. As a result, the number of patient samples received largely correlates directly to the number of patient results reported.
Continued Growth of Patient and Digital Sales
The growth of our patient and digital revenues is tied to the continued successful implementation of our pharmacy solutions, Ottr, MedActionPlan and XynQAPI software businesses, as well as continued support and maintenance of existing pharmacy, MedActionPlan, Ottr and XynManagement customers. The Ottr software, TransChart, Tx Access and XynQAPI are currently implemented in multiple locations in the United States. The Ottr software implementation and XynQAPI implementation and support teams are based in Omaha, Nebraska. In addition, patient solutions offered by TTP in Flowood, Mississippi include hospital-affiliated pharmacies located on-site at the transplant center and specialty pharmacies that provide transplant-specific care and dispensing services. Additionally, with HLA Data Systems, we are able to support HLA laboratories in managing their day-to-day workflow.
Development of Additional Services and Products
Our development pipeline includes other solutions to help clinicians and transplant centers make personalized treatment decisions throughout a transplant patient’s lifetime. We expect to invest in research and development in order to develop additional services and products. Our success in developing new services and products will be important in our efforts to grow our business by expanding our potential market opportunity and diversifying our sources of revenue.
Timing of Research and Development Expenses
Our spending on research and development may vary substantially from quarter to quarter. We conduct clinical studies to validate our new products, as well as ongoing clinical and outcome studies to further the published evidence to support our commercialized tests. Spending on research and development for both experiments and studies may vary significantly by quarter depending on the timing of these various expenses.
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Results of Operations
Comparison of the Three Months Ended June 30, 2026 and 2025
(In thousands)
| Three Months Ended June 30, | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | Change | Change (%) | |||||||||||
| Revenue: | ||||||||||||||
| Testing services revenue | $ | 99,927 | $ | 62,033 | $ | 37,894 | 61 | % | ||||||
| Product revenue | 12,791 | 11,833 | 958 | 8 | % | |||||||||
| Patient and digital solutions revenue | 19,230 | 12,813 | 6,417 | 50 | % | |||||||||
| Total revenue | 131,948 | 86,679 | 45,269 | 52 | % | |||||||||
| Operating expenses: | ||||||||||||||
| Cost of testing services | 15,918 | 15,406 | 512 | 3 | % | |||||||||
| Cost of product | 4,342 | 4,981 | (639) | (13) | % | |||||||||
| Cost of patient and digital solutions | 14,706 | 8,271 | 6,435 | 78 | % | |||||||||
| Research and development | 22,376 | 16,830 | 5,546 | 33 | % | |||||||||
| Sales and marketing | 33,441 | 24,279 | 9,162 | 38 | % | |||||||||
| General and administrative | 40,908 | 27,683 | 13,225 | 48 | % | |||||||||
| Gain on sale of lab products business | (112,966) | — | (112,966) | 100 | % | |||||||||
| Litigation settlement expense | — | 350 | (350) | (100) | % | |||||||||
| Total operating expenses | 18,725 | 97,800 | (79,075) | (81) | % | |||||||||
| Income (loss) from operations | 113,223 | (11,121) | 124,344 | (1,118) | % | |||||||||
| Other income: | ||||||||||||||
| Interest income, net | 1,735 | 2,364 | (629) | (27) | % | |||||||||
| Other (expense) income, net | (440) | 72 | (512) | (711) | % | |||||||||
| Total other income | 1,295 | 2,436 | (1,141) | (47) | % | |||||||||
| Income (loss) before income taxes | 114,518 | (8,685) | 123,203 | (1,419) | % | |||||||||
| Income tax (expense) benefit | (3,882) | 117 | (3,999) | (3,418) | % | |||||||||
| Net income (loss) | $ | 110,636 | $ | (8,568) | $ | 119,204 | (1,391) | % |
Testing services revenue
Testing services revenue increased by $37.9 million, or 61%, for the three months ended June 30, 2026, compared to the same period in 2025. The increase was primarily driven by testing services volume growth of 17% as compared to the same period in 2025. The variance between revenue growth and volume growth was primarily driven by $18.0 million of increased net collections associated with tests performed and revenue recognized in prior periods under ASC 606 and an increase in revenue per test, partially offset by a $2.4 million reduction in testing services revenue related to the recognition of refund reserves payable to third-party payers.
Product revenue
Product revenue increased by $1.0 million, or 8%, for the three months ended June 30, 2026, compared to the same period in 2025. The increase was primarily due to higher sales of our commercial NGS-based kitted solutions.
Patient and digital solutions revenue
Patient and digital solu
[Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A (excerpt)
Latest 10-K Item 7 source: 0001217234-26-000018. The complete FY 2025 MD&A is published at /company/CDNA/mda/fy2025/.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations should be read together with our consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K. This discussion contains certain forward-looking statements that involve risk and uncertainties. Our actual results may differ materially from those discussed below. Factors that could cause or contribute to such differences include, but are not limited to, those identified below and those set forth under the Section entitled “Risk Factors” in Item 1A, and other documents we file with the SEC. Historical results are not necessarily indicative of future results.
A discussion regarding our financial condition and results of operations for fiscal 2025 compared to fiscal 2024 is presented under Results of Operations of this Form 10-K. Discussions regarding our financial condition and results of operations for fiscal 2024 compared to 2023 have been omitted from this Annual Report on Form 10-K, but can be found in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 28, 2025, which is available without charge on the SEC's website at www.sec.gov and on our investor relations website at caredx.com.
Overview
We are a precision medicine company dedicated to improving outcomes for transplant patients and advancing organ health. We deliver solutions designed to empower clinicians and improve patient outcomes. Our 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.
Our commercially available post-transplant testing services consist of AlloSure® Kidney, a donor-derived cell-free DNA, or dd-cfDNA, solution for kidney transplant patients, AlloMap® Heart, a gene expression profiling solution for heart transplant patients, AlloSure® Heart, a dd-cfDNA solution for heart transplant patients, HeartCare, the combined use of AlloMap Heart and AlloSure Heart, and AlloSure® Lung, a dd-cfDNA solution for lung transplant patients. We have initiated several clinical studies to generate data on our existing and planned future testing services. From time to time, we partner with pharma and biopharma companies to use our technology and tests, often in clinical trials, to identify or screen for patients that may be appropriate candidates for their products. We also offer high-quality products in the pre-transplant space that increase the chance of successful transplants by facilitating a better match between a donor and a recipient of stem cells and organs. We also provide digital transplant solutions and various offerings that help transplant centers with patient management, outcomes quality and operational support.
See Part I, Item 1 (Business) of this Annual Report on Form 10-K for further information about our business.
Fourth Quarter Business Highlights
•Revenue of $108 million, an increase of 25% year-over-year
•Testing services revenue of $78 million, an increase of 23% year-over-year, and testing services volume of approximately 53,000, an increase of 17% year-over-year
•Patient and digital solutions revenue of $16.8 million and product revenue of $13.3 million, representing year-over-year growth of 47% and 17%, respectively
•Average revenue per test of approximately $1,480 including approximately $5 million in prior period revenue
•Net loss of $4 million, compared to net income of $88 million for the fourth quarter of 2024
•Cash flow from operations of $21.4 million
•Share repurchases of $12 million during the quarter of 773,000 shares at an average price of $15.79 per share
Full Year 2025 Financial Highlights
•Revenue of $380 million, an increase of 14% year-over-year
•Testing services revenue of $275 million, an increase of 10% year-over-year, and testing services volume of approximately 200,000, an increase of 14% year-over-year
•Patient and digital solutions revenue of $57 million and product revenue of $48 million, representing year-over-year growth of 31% and 19%, respectively
•Net loss of $21 million
•Cash flow from operations of $42 million
•Cash, cash equivalents and marketable securities of approximately $200 million as of December 31, 2025
•Share repurchases of $88 million during the year of 5.8 million shares at an average price of $15.16 per share
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Factors Affecting Our Performance
The Number of AlloSure Kidney, AlloMap Heart, AlloSure Heart, HeartCare and AlloSure Lung Tests We Receive and Report
The growth of our testing services is tied to the number of AlloSure Kidney, AlloMap Heart and AlloSure Heart, HeartCare and AlloSure Lung patient samples we receive and patient results we report. We incur costs in connection with collecting and shipping all samples and a portion of the costs when we cannot ultimately issue a report. As a result, the number of patient samples received largely correlates directly to the number of patient results reported.
Continued Growth of Patient and Digital Sales
The growth of our patient and digital revenues is tied to the continued successful implementation of our pharmacy solutions, Ottr, MedActionPlan and XynQAPI software businesses, as well as continued support and maintenance of existing pharmacy, MedActionPlan, Ottr and XynManagement customers. The Ottr software, TransChart, Tx Access and XynQAPI are currently implemented in multiple locations in the United States. The Ottr software implementation and XynQAPI implementation and support teams are based in Omaha, Nebraska. In addition, patient solutions offered by TTP in Flowood, Mississippi include hospital-affiliated pharmacies located on-site at the transplant center and specialty pharmacies that provide transplant-specific care and dispensing services. Additionally, with of HLA Data Systems, we are able to support HLA laboratories in managing their day-to-day workflow.
Development of Additional Services and Products
Our development pipeline includes other solutions to help clinicians and transplant centers make personalized treatment decisions throughout a transplant patient’s lifetime. We expect to invest in research and development in order to develop additional services and products. Our success in developing new services and products will be important in our efforts to grow our business by expanding our potential market opportunity and diversifying our sources of revenue.
Timing of Research and Development Expenses
Our spending on research and development may vary substantially from quarter to quarter. We conduct clinical studies to validate our new products, as well as ongoing clinical and outcome studies to further the published evidence to support our commercialized tests. Spending on research and development for both experiments and studies may vary significantly by quarter depending on the timing of these various expenses.
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Results of Operations
Comparison of the Years Ended December 31, 2025 and 2024
(In thousands)
| Year Ended December 31, | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | Change | Change % | |||||||||||
| Revenue: | ||||||||||||||
| Testing services revenue | $ | 274,495 | $ | 249,381 | $ | 25,114 | 10 | % | ||||||
| Product revenue | 48,377 | 40,783 | 7,594 | 19 | % | |||||||||
| Patient and digital solutions | 56,933 | 43,621 | 13,312 | 31 | % | |||||||||
| Total revenue | 379,805 | 333,785 | 46,020 | 14 | % | |||||||||
| Operating expenses: | ||||||||||||||
| Cost of testing services | 62,045 | 55,611 | 6,434 | 12 | % | |||||||||
| Cost of product | 22,953 | 23,381 | (428) | (2) | % | |||||||||
| Cost of patient and digital solutions | 38,241 | 30,704 | 7,537 | 25 | % | |||||||||
| Research and development | 71,429 | 72,510 | (1,081) | (1) | % | |||||||||
| Sales and marketing | 102,643 | 81,975 | 20,668 | 25 | % | |||||||||
| General and administrative | 107,565 | 125,139 | (17,574) | (14) | % | |||||||||
| Litigation expense | 5,710 | (96,300) | 102,010 | (106) | % | |||||||||
| Total operating expenses | 410,586 | 293,020 | 117,566 | 40 | % | |||||||||
| (Loss) income from operations | (30,781) | 40,765 | (71,546) | (176) | % | |||||||||
| Other income: | ||||||||||||||
| Interest income, net | 9,174 | 11,765 | (2,591) | (22) | % | |||||||||
| Other income, net | 524 | 329 | 195 | 59 | % | |||||||||
| Total other income | 9,698 | 12,094 | (2,396) | (20) | % | |||||||||
| (Loss) income before income taxes | (21,083) | 52,859 | (73,942) | (140) | % | |||||||||
| Income tax expense | (271) | (310) | 39 | (12) | % | |||||||||
| Net (loss) income | $ | (21,354) | $ | 52,549 | $ | (73,903) | (141) | % |
Testing services revenue
Testing services revenue increased by $25.1 million, or 10%, for the year ended December 31, 2025, compared to the year ended December 31, 2024. The increase was primarily driven by testing services volume growth of approximately 14% as compared to the year ended December 31, 2024. This increase was partially offset by an increase in the refunds reserve of $3.5 million, and a decrease of $7.8 million in collections during the year ended December 31, 2025, as compared to the year ended December 31, 2024, under ASC 606 related to specific tests performed in prior periods.
Product revenue
Product revenue increased by $7.6 million, or 19%, for the year ended December 31, 2025, compared to the year ended December 31, 2024. The increase was primarily due to higher sales of our commercial NGS-based kitted solutions resulting from growth in our existing business including conversions of targeted customers.
Patient and digital solutions revenue
Patient and digital solutions revenue increased by $13.3 million, or 31%, during the year ended December 31, 2025, compared to the year ended December 31, 2024. The increase was primarily driven by higher pharmacy sales and growth in our digital solutions, particularly an expanded customer base from Ottr software.
Cost of testing services
Cost of testing services increased by $6.4 million, or 12%, for the year ended December 31, 2025, compared to the year ended December 31, 2024. The increase was primarily attributed to higher testing services volume, partially offset by the continuous efficiency measures to lower laboratory expenses.
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Cost of product
Cost of product decreased by $0.4 million, or 2%, for the year ended December 31, 2025, compared to the year ended December 31, 2024. The decrease was primarily due to certain cost reduction efforts offset by an increased sales of our commercial NGS-based kitted solutions.
Cost of patient and digital solutions
Cost of patient and digital solutions increased by $7.5 million, or 25%, for the year ended December 31, 2025, compared to the year ended December 31, 2024. The increase was primarily due to an increase in the cost of goods from our pharmacy business resulting from higher sales.
Research and development
Research and development expenses decreased by $1.1 million, or 1%, for the year ended December 31, 2025, compared to the year ended December 31, 2024. The decrease was primarily attributable to decreases of $4.7 million in clinical trial expenses, $2.0 million in consulting and licensing expense and $1.5 million in stock-based compensation expense, partially offset by increases of $5.5 million in personnel-related costs and $1.6 million in software-related expenses.
Sales and marketing
Sales an
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MD&A history
Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.