CareDx Inc (NASDAQ:CDNA) Posts Mixed Q2 2025 Results Amid Revenue Adjustments and Testing Growth

CareDx Inc (NASDAQ:CDNA) Reports Q2 2025 Earnings: Mixed Results Amid Revenue Adjustments

CareDx Inc, a precision medicine company focused on transplant diagnostics, reported its second-quarter 2025 financial results, revealing a mixed performance relative to analyst expectations. The company posted revenue of $86.7 million, falling short of the consensus estimate of $92.4 million. However, adjusted revenue—which excludes a $3.8 million write-off of aged receivables—came in at $90.5 million, reflecting a 14% year-over-year increase.

On the earnings front, CareDx reported a non-GAAP net income of $5.6 million, or $0.10 per diluted share, below the estimated $0.12 per share. GAAP net loss widened to $8.6 million compared to $4.6 million in the prior-year quarter. The adjusted EBITDA gain of $9.1 million marked an improvement from the $0.3 million loss in Q2 2024, signaling progress in operational efficiency.

Key Takeaways from the Earnings Report

• Revenue Shortfall: The reported revenue missed expectations due to the receivables adjustment, though underlying growth remained strong.
• Testing Volumes Up: Testing services volume increased 13% year-over-year, with AlloSure Kidney testing leading with nearly 20% growth.
• Cash Position Solid: The company ended the quarter with $186 million in cash and marketable securities, despite a $50 million share repurchase.
• Guidance Narrowed: Full-year revenue guidance was tightened to $367–$373 million, in line with prior expectations ($365–$375 million).

Market Reaction

Following the earnings release, CareDx shares declined ~6.8% in after-hours trading, reflecting investor disappointment over the revenue miss and lower-than-expected EPS. The stock has been under pressure over the past month, down ~35%, though it showed slight stability in the last week.

Business Highlights

• Product Launches: The company introduced AlloSure Plus, an AI-driven diagnostic platform combining dd-cfDNA analysis with clinical methods.
• Regulatory Developments: A draft Local Coverage Determination (LCD) affirmed surveillance testing coverage for organ transplant rejection, with an open comment period ending August 31, 2025.
• Research Presence: CareDx presented 40 abstracts and 12 oral presentations at the 2025 World Transplant Congress, reinforcing its leadership in transplant diagnostics.

Looking Ahead

Analysts project Q3 2025 revenue at $96.0 million and full-year sales at $376.5 million, slightly above CareDx’s narrowed guidance range. The company’s ability to sustain testing volume growth and improve collections will be critical in meeting these expectations.

For more detailed earnings estimates and historical performance, visit CareDx Earnings & Estimates.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.