CareDx (CDNA) Q4 2025 earnings summary

Executive summary

• Achieved 25% year-over-year revenue growth in Q4 2025, reaching $108 million, and 14% full-year growth to $380 million, with strong performance across all business segments and continued market leadership in heart, lung, and kidney transplantation.

• Launched innovative products, including AlloSure Heart for Pediatrics, AlloSure Plus (AI-driven kidney risk assessment), HistoMap Kidney, and AlloHeme, expanding clinical utility and differentiation.

• Advanced infrastructure with automation and AI in revenue cycle management and launched Epic Aura to enhance customer experience and operational efficiency.

• Maintained disciplined capital allocation, repurchasing $88 million in stock (9% of shares) in 2025 and ending the year with $201 million in cash and no debt.

• Published key clinical evidence, including the third SHORE study, and advanced digital integrations, supporting leadership in transplant diagnostics.

Financial highlights

• Q4 2025 revenue: $108.4 million (+25% YoY); full-year 2025 revenue: $379.8–$380 million (+14% YoY).

• Q4 testing services revenue: $78.4 million (+23% YoY); patient and digital solutions: $16.8–$17 million (+47% YoY); lab products: $13.3 million (+17% YoY).

• Q4 non-GAAP gross margin: 68.5–69%; full-year 2025 non-GAAP gross margin: 69%.

• Q4 adjusted EBITDA: $6.5–$7 million (impacted by a $6.7 million one-time cash bonus); full-year adjusted EBITDA: $31.7–$32 million (+14% YoY).

• Cash collections for 2025: $405.6 million (+32% YoY); DSO improved from 71 to 41 days.

Outlook and guidance

• 2026 revenue guidance: $420–$444 million (midpoint +14% YoY), including a $7.5 million headwind from anticipated LCD policy changes.

• Testing services revenue expected at $306–$326 million; volume guidance: 220,000–228,000 tests (+12% YoY at midpoint); average revenue per test expected in the low $1,400s.

• Patient and digital solutions plus lab products revenue: $114–$118 million (+8–12%).

• Non-GAAP gross margin guidance: 69–71%; adjusted EBITDA: $30–$45 million (+20% YoY at midpoint).