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Castle Biosciences (CSTL) investor relations material
Castle Biosciences Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q3 2025 revenue was $83 million, with total test report volume at 26,841, reflecting strong performance in core dermatologic and gastrointestinal franchises, but a 3.2% year-over-year decline due to lower dermatologic ASPs and payer coverage changes.
Non-dermatologic revenue, especially TissueCypher, grew sharply (up 67% year-over-year), while core test volumes (DecisionDx-Melanoma, TissueCypher) increased 36% over Q3 2024.
Net loss for Q3 2025 was $0.5 million, compared to net income of $2.3 million in Q3 2024, reflecting lower gross margin and higher operating expenses.
Launched Advanced AD TX (AdvanceAD-TX), a gene expression test for guiding systemic treatment in moderate to severe atopic dermatitis, targeting a $33 billion US market with 13.2 million eligible patients aged 12 and older.
Full-year 2025 revenue guidance was raised to $327–335 million, up from $310–320 million.
Financial highlights
Q3 2025 revenue: $83 million; gross margin: 74.7–75% (down from 79.2% in Q3 2024); adjusted gross margin: 76.8–77%.
Operating expenses: $89.8 million (up from $80.7 million in Q3 2024); net loss: $0.5 million; adjusted EBITDA: $9.2 million (down from $21.6 million in Q3 2024).
Cash, cash equivalents, and marketable securities: $287.5 million as of September 30, 2025.
Net cash provided by operations: $22.6 million in Q3; $37.4 million for the nine months ended September 30, 2025.
For the nine months ended September 30, 2025, revenue was $257.2 million (up from $245.8 million), with a net loss of $21.8 million versus net income of $8.7 million in 2024.
Outlook and guidance
2025 revenue guidance raised to $327–335 million, up from prior $310–320 million.
Management expects continued growth in test volumes and top-line performance, with a focus on robust test volume growth, maintaining strong margins, and disciplined capital allocation.
Expect positive net cash flow from operations for 2025.
Advanced AD TX revenue contribution expected to be immaterial in 2026 as reimbursement is built from the ground up.
Future profitability depends on regaining Medicare coverage for DecisionDx-SCC and successful commercialization of pipeline products.
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