CareDx Reports Strong Revenue Beat but Profitability Concerns Weigh on Shares
Precision medicine company CareDx Inc (NASDAQ:CDNA) closed out its 2025 fiscal year with quarterly revenue that surpassed analyst expectations, though profitability metrics came in below forecasts. The market's initial reaction was positive, with shares rising nearly 4% in after-hours trading, suggesting investors were encouraged by the top-line growth and forward guidance.
Earnings Snapshot: Revenue Beat, EPS Miss
For the fourth quarter ended December 31, 2025, CareDx reported total revenue of $108.4 million, a 25% increase year-over-year. This figure comfortably exceeded the consensus analyst estimate of approximately $105.3 million. The company's growth was broad-based across its segments:
- Testing Services Revenue: $78.4 million, up 23% year-over-year.
- Patient & Digital Solutions Revenue: $16.8 million, up 47% year-over-year.
- Product Revenue: $13.3 million, up 17% year-over-year.
However, on the bottom line, the company's non-GAAP earnings per share (EPS) of $0.12 fell short of the $0.24 analysts had anticipated. The GAAP net loss for the quarter was $4.1 million, a significant swing from a net income of $87.7 million in the prior-year period, which was heavily influenced by a one-time $96.3 million litigation accrual reversal.
Market Reaction and Strategic Moves
The after-hours stock gain indicates the market prioritized the revenue beat and strong growth narrative over the earnings miss. This positive sentiment may also be attributed to the company's provided outlook for 2026 and a significant executive appointment announced alongside the earnings.
For the full year 2026, CareDx issued revenue guidance in the range of $420 million to $444 million. The midpoint of this range, $432 million, sits above the current analyst sales estimate of $426.1 million, signaling management's confidence in continued growth. The company also expects full-year adjusted EBITDA between $30 million and $45 million.
Separately, CareDx announced a consolidation of its leadership team, with Chief Operating Officer Keith Kennedy also assuming the role of Chief Financial Officer effective February 26, 2026. Kennedy, who brings over two decades of healthcare and financial leadership experience, will oversee the finance organization following the departure of former CFO Nathan Smith.
Full-Year 2025 and Business Highlights
For the full year 2025, CareDx reported total revenue of $379.8 million, a 14% increase over 2024. The company ended the year with a strong cash position of approximately $200 million in cash and marketable securities, even after deploying $88 million for share repurchases throughout the year.
Recent operational milestones highlighted by the company include:
- The publication of additional clinical evidence for its HeartCare solution in a peer-reviewed journal.
- Progress on integrations with the Epic electronic health record system at transplant centers.
- The launch of a new multiomics discovery platform, ImmuneScape™, through a collaboration.
- Advancement of its AlloHeme™ test, marking an expansion beyond solid organ transplantation into cell therapy.
Conclusion and Looking Ahead
CareDx delivered a quarter of robust revenue growth, exceeding expectations and demonstrating strong demand across its portfolio of transplant diagnostic and digital solutions. While profitability metrics were softer than anticipated, the company's above-consensus guidance for 2026 appears to have reassured investors about its growth trajectory. The market's positive after-hours reaction suggests a focus on the company's top-line momentum and future potential. The leadership transition to a combined COO/CFO role aims to streamline operations as the company executes on its strategic initiatives.
For a detailed breakdown of future earnings estimates and past performance, you can review the earnings and estimates data for CareDx here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any security. Investing involves risk, including the potential loss of principal.
