Castle Biosciences (CSTL) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $103.5 million, up 20% year-over-year, driven by a 32% increase in core test volumes and strong execution across growth initiatives.

• Full-year 2026 revenue guidance was raised to $365–$375 million, reflecting continued momentum and confidence in core product performance.

• Investments in commercial resources, evidence generation, and pipeline expansion continue, supported by robust cash reserves of $266.8 million at quarter-end.

• Net loss for Q2 2026 was $2.1 million, compared to net income of $4.5 million in Q2 2025, reflecting higher operating expenses and lower dermatologic test revenues.

• AdvanceAD-Tx test received NYSDOH approval and won a Genomics Innovation Award, expanding access and recognition.

Financial highlights

• Q2 2026 revenue: $103.5 million, up 20% year-over-year; core test volumes up 32%; TissueCypher volumes up 63%.

• Gross margin was 74.9% (down from 77.3% in Q2 2025); adjusted gross margin was 76.3%.

• Adjusted EBITDA was $12.4 million, up from $10.4 million year-over-year.

• Net cash provided by operating activities was $15.2 million for Q2; cash, equivalents, and marketable securities totaled $266.8 million at quarter-end.

• Total test volume for Q2 2026 was 30,822.

Outlook and guidance

• 2026 revenue guidance raised to $365–$375 million, reflecting strong Q2 performance and positive outlook for core products.

• Positive adjusted EBITDA expected for Q3, Q4, and full year 2026, as well as for 2027, barring strategic shifts.

• Adjusted gross margin for 2026 expected in the low to mid-70s percentage range.

• Management expects continued investment in R&D and commercialization, with expenses anticipated to rise as new products are developed and launched.

• Existing liquidity is expected to fund operations for at least the next 12 months.