CareDx, Inc. (CDNA): Results of Operations and Financial Condition
CareDx, Inc. (CDNA) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 CareDx Announces Second Quarter 2026 Financial Results Second Quarter Revenue Growth of 52% to $132 Million Raises 2026 Revenue Guidance to $490 Million to $500 Million and Raises 2026 AEBITDA Guidance to $66 Million to $78 Million BRISBANE, Calif. — (BUSINESS WIRE)
How this was made
The 30-second read
Why it matters
The company’s Q2 performance and upward 2026 guidance provide a fresh valuation anchor for the stock, with non-GAAP profitability improving alongside testing services growth.
Market read
Upward guidance plus strong testing services growth is a direct catalyst for re-rating, while the GAAP gain from the divestiture is a key quality check for non-GAAP-focused investors.
What to watch
Guidance raises are meaningful, but traders should watch whether testing volume growth and reimbursement dynamics persist post-integration of Naveris and after Lab Products divestiture removes a revenue stream.
Second Quarter Revenue Growth of 52% to $132 Million Raises 2026 Revenue Guidance to $490 Million to $500 Million and Raises 2026 AEBITDA Guidance to $66 Million to $78 Million
Revenue grew 52% year-over-year, Testing Services revenue grew 61%, adjusted EBITDA rose to $25 million from $5 million, and the company raised both full-year 2026 revenue and adjusted EBITDA guidance. GAAP net income included a $113 million gain on the Lab Products business sale.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $132 million | – | 52% |
| Testing Services revenueGAAP | $100 million | – | 61% |
| Testing Services volumeother | approximately 58,000 | – | 17% |
| Testing Services revenue excluding revenue recognized for tests performed in prior periodsGAAP | increased approximately 28% year-over-year | – | approximately 28% |
| Average revenue per testother | approximately $1,720 | – | – |
| Prior period revenue included in average revenue per testother | $16 million | – | – |
| Patient and Digital Solutions revenueGAAP | $19 million | – | 50% |
| Lab Product revenueGAAP | $13 million | – | 8% |
| Net incomeGAAP | $111 million | – | – |
| Basic net income per shareGAAP | $2.15 | – | – |
| Diluted net income per shareGAAP | $2.07 | – | – |
| Non-GAAP net incomenon-GAAP | $20 million | – | – |
| Diluted non-GAAP net income per sharenon-GAAP | $0.37 | – | – |
| Adjusted EBITDAnon-GAAP | $25 million | – | – |
| Gain on sale of Lab Products businessGAAP | $113 million | – | – |
| Cash flow from operationsGAAP | $31 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Testing ServicesOngoing adoption of molecular surveillance testing across transplant programs; revenue growth reflected continued demand across transplant programs, favorable reimbursement dynamics, and increases in testing activity across both surveillance and for-cause settings. | $100 million | – | 61% |
| Patient and Digital SolutionsContinued growth in CareDx Pharmacy services and adoption of patient support and digital solutions across transplant monitoring. | $19 million | – | 50% |
| Lab ProductThe quarter reflects a full period of Lab Products results. The divestiture to Eurobio Scientific closed on June 30, 2026, and future periods will no longer include Lab Products segment results. | $13 million | – | 8% |
Full year 2026 outlook
- Revenue$490 million to $500 million
- NoteAdjusted EBITDA: $66 million to $78 million
What drove it
- Higher Testing Services revenue and continued expansion of Patient and Digital Solutions revenue.
- Continued demand across transplant programs, favorable reimbursement dynamics, and increased testing activity across surveillance and for-cause settings.
- Strong Testing Services revenue growth, improved gross profit, operational efficiency, and cost discipline supported adjusted EBITDA.
- CMS finalized Medicare coverage policy for AlloSure® and AlloMap®, supporting continued patient access to molecular testing in transplant care.
- The company completed the Lab Products divestiture to Eurobio Scientific and closed the acquisition of Naveris.
Concerns
- Testing Services revenue included $16 million in prior period revenue, while revenue excluding tests performed in prior periods increased approximately 28% year-over-year.
- GAAP net income and GAAP operating income included a $113 million gain on sale of the Lab Products business, which was excluded from non-GAAP operating income.
- Future periods will no longer include Lab Products segment results following the June 30, 2026 divestiture.
What to watch
- Execution on the raised full-year 2026 revenue guidance of $490 million to $500 million and adjusted EBITDA guidance of $66 million to $78 million.
- Testing Services volume, molecular surveillance adoption, reimbursement dynamics, and testing activity across surveillance and for-cause settings.
- Integration of Naveris and the planned launch into cell therapy.
- Progress toward CLIA readiness for AlloHeme® and the evolving clinical evidence for HistoMap®, NavDx®, and AlloSure®.
Balance sheet and cash flow
- Cash flow from operations of $31 million
Analysis
CareDx reported a strong second quarter, with total revenue of $132 million, up 52% year-over-year from $87 million. Testing Services was the principal growth engine, rising 61% year-over-year to $100 million, while testing services volume increased 17% year-over-year to approximately 58,000. Management attributed growth to transplant-program demand, favorable reimbursement dynamics, and higher testing activity across surveillance and for-cause settings.
Testing Services revenue included $16 million in prior period revenue, and revenue excluding tests performed in prior periods increased approximately 28% year-over-year. Average revenue per test was approximately $1,720. Patient and Digital Solutions revenue increased 50% year-over-year to $19 million, supported by CareDx Pharmacy services and patient support and digital-solution adoption. Lab Product revenue rose 8% year-over-year to $13 million, but this revenue stream will not recur in future periods following the completed divestiture.
Profitability improved materially on a non-GAAP basis. Non-GAAP net income was $20 million versus $6 million in the second quarter of 2025, diluted non-GAAP net income per share was $0.37 versus $0.10, and adjusted EBITDA was $25 million versus $5 million. Management cited Testing Services revenue growth, improved gross profit, operational efficiency, and cost discipline. Cash flow from operations was $31 million.
GAAP profitability was significantly affected by portfolio actions. GAAP net income was $111 million, compared with a GAAP net loss of $9 million, and diluted GAAP net income per share was $2.07 compared with a diluted GAAP net loss per share of $0.16. The sale of the Lab Products business closed on June 30, 2026 and resulted in a $113 million gain included in GAAP operating income and excluded from non-GAAP operating income.
Management raised full-year 2026 revenue guidance to $490 million to $500 million from the previously disclosed $447 million to $465 million range, and raised adjusted EBITDA guidance to $66 million to $78 million from $43 million to $57 million. The operating focus now centers on sustained transplant testing demand, integration of Naveris, the cell-therapy launch, and execution without future Lab Products segment revenue.
Management, verbatim
We have transformed CareDx into a differentiated precision molecular diagnostics company with a unique set of core competencies that position us for continued profitable growth. Our performance reflects that our strategy is working, and we look forward to building on our momentum as we integrate NavDx and launch into cell therapy.
John Hanna, President and Chief Executive Officer of CareDx
Not in the filing
stated, not guessed- Condensed consolidated financial-statement tables were not included in the provided filing text.
- GAAP gross profit, GAAP gross margin, non-GAAP gross profit, and non-GAAP gross margin.
- GAAP operating income excluding the disclosed $113 million gain on sale of the Lab Products business.
- Non-GAAP operating income.
- Operating expenses and expense-line-item detail.
- Cash balance, debt balance, and other balance-sheet amounts.
- Capital expenditures and corporate free cash flow.
- Share repurchases, dividends, and other capital-return amounts.
- Prior-quarter comparisons for revenue, segments, earnings, EPS, adjusted EBITDA, testing volume, and cash flow from operations.
- Forward guidance for gross margin, operating expenses, tax rate, cash flow, capital expenditures, or free cash flow.
- A separately provided previous-release outlook required for vs_prior_guidance comparisons.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
CareDx is repositioning toward precision molecular diagnostics across transplant, specialty oncology, and cell therapy, including recent acquisition of Naveris and divestiture of Lab Products.
Ticker impact
CareDx reported Q2 2026 revenue up 52% to $132M and raised 2026 revenue guidance to $490M-$500M.
Likely positive near-term bias as guidance resets upward, though GAAP includes a one-time $113M gain from the Lab Products sale.
The filing discloses both the quarterly results and explicit upward guidance ranges, which typically drive repricing versus prior expectations. It also clarifies the Lab Products gain is excluded from non-GAAP, helping separate operating momentum from accounting effects.
Market effects
Supports sentiment for precision transplant diagnostics and molecular surveillance adoption, with evidence of reimbursement tailwinds (CMS coverage finalized).
Limited, primarily US-listed biotech/diagnostics sentiment.
Moderate, as transplant diagnostics demand and reimbursement dynamics can influence global payer and provider adoption narratives.
Counterpoint
The GAAP net income surge is heavily influenced by the $113M gain on the Lab Products sale, so operating cash generation and non-GAAP profitability matter more than headline earnings.
Key entities
- companyCareDx, Inc.
Reported Q2 2026 results and raised 2026 revenue and adjusted EBITDA guidance in an SEC 8-K.
- counterpartyEurobio Scientific
Buyer of CareDx’s Lab Products business, with the sale closing June 30 and generating a $113M GAAP gain.
- acquired_companyNaveris
Acquisition completed to strengthen CareDx’s diagnostics position; integration referenced in the release.
- regulatorCMS
Finalized Medicare coverage policy for AlloSure and AlloMap, supporting continued patient access.
