Caris Life Sciences Reports Third Quarter 2026 Financial Results and Increases 2026 Revenue Guidance
Caris Life Sciences, Inc. (CAI) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Caris Life Sciences Reports Third Quarter 2026 Financial Results and Increases 2026 Revenue Guidance Revenue growth of 27% driven by strong performance in molecular profiling services, including approximately 61,500 clinical cases, consisting of over 358,000 total on
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance may attract growth‑oriented investors and trigger buying pressure.
Market read
First‑report earnings and guidance lift for a mid‑cap biotech, likely influencing sector sentiment.
What to watch
Higher operating expenses and negative free cash flow could temper enthusiasm.
Caris Life Sciences Reports Third Quarter 2026 Financial Results and Increases 2026 Revenue Guidance
Total revenue increased 27%, molecular profiling services revenue increased 27%, and clinical cases increased approximately 21%, but gross margin declined to 66% from 68%, operating expenses increased 42%, net income declined, and quarterly operating cash flow and free cash flow were negative.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30GAAP | $275.4M | – | 27% |
| Molecular profiling services revenue, three months ended September 30GAAP | $262.7M | – | 27% |
| Pharma research and development services revenue, three months ended September 30GAAP | $12.65M | – | – |
| Gross profit, three months ended September 30GAAP | $182.3M | – | – |
| Gross margin, three months ended September 30GAAP | 66% | – | – |
| Cost of services - Molecular profiling services, three months ended September 30GAAP | $89.17M | – | – |
| Cost of services - Pharma research and development services, three months ended September 30GAAP | $3.90M | – | – |
| Operating expenses, three months ended September 30GAAP | $163M | – | 42% |
| Selling and marketing expense, three months ended September 30GAAP | $59.85M | – | – |
| General and administrative expense, three months ended September 30GAAP | $69.28M | – | – |
| Research and development expense, three months ended September 30GAAP | $33.84M | – | – |
| Income from operations, three months ended September 30GAAP | $19.32M | – | – |
| Net income, three months ended September 30GAAP | $15.3M | – | – |
| Net income per share attributable to common shareholders, basic, three months ended September 30GAAP | $0.05 | – | – |
| Net income per share attributable to common shareholders, diluted, three months ended September 30GAAP | $0.05 | – | – |
| Adjusted EBITDA, three months ended September 30non-GAAP | $44.4M | – | – |
| Free cash flow, three months ended September 30non-GAAP | −$39.7M | – | – |
| Total revenue, nine months ended September 30GAAP | $755.2M | – | – |
| Molecular profiling services revenue, nine months ended September 30GAAP | $725.8M | – | – |
| Pharma research and development services revenue, nine months ended September 30GAAP | $29.48M | – | – |
| Income from operations, nine months ended September 30GAAP | $51.52M | – | – |
| Net income (loss), nine months ended September 30GAAP | $14.10M | – | – |
| Net income (loss) per share attributable to common shareholders, basic, nine months ended September 30GAAP | $0.05 | – | – |
| Net income (loss) per share attributable to common shareholders, diluted, nine months ended September 30GAAP | $0.05 | – | – |
| Adjusted EBITDA, nine months ended September 30non-GAAP | $126.3M | – | – |
| Net cash provided by operating activities, nine months ended September 30GAAP | $39.11M | – | – |
| Free cash flow, nine months ended September 30non-GAAP | −$10.78M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Molecular profiling services, three months ended September 30, 2026The increase was primarily driven by an increase in total clinical case volume and ASP improvements. | $262.7M | – | 27% |
| Pharma research and development services, three months ended September 30, 2026Not stated. | $12.65M | – | – |
Full year 2026 outlook
- Revenue$1.04 to $1.05 billion
- NoteGrowth of 28% to 29% compared to full year 2025.
- NoteClinical therapy selection volume growth of approximately 20% compared to full year 2025.
Capital returns
- Share repurchase program of up to $100.0 million.
- Approximately $72.1 million remains available for repurchase under the existing Board authorization.
- Repurchase of common stock of $31,371 thousand for the nine months ended September 30, 2026.
What drove it
- Approximately 61,500 clinical cases, an increase of approximately 21% over the corresponding prior year period.
- Over 358,000 total oncology tests.
- Molecular profiling services revenue growth was primarily driven by higher total clinical case volume and ASP improvements.
- Caris launched Caris Assure Therapy Response Monitoring and enhanced Caris Assure for Therapy selection.
- Caris Confirm, a Whole Genome, tumor-informed assay for minimal residual disease, is targeted to launch before year-end.
Concerns
- Gross margin was 66%, compared to 68% in the corresponding prior-year period.
- Operating expenses increased 42%, primarily due to headcount-related costs, increased research and development investment, and marketing expenditures.
- Net income was $15.3 million, compared to $24.3 million in the corresponding prior-year period.
- Net cash used in operating activities was $22.2 million, compared to net cash provided by operating activities of $62.4 million in the corresponding prior-year period.
- The operating cash flow decrease was driven by commercial expansion and marketing expenditures, inventory build-up for new solution launches, and research and development efforts.
- Free cash flow was $(39.7) million.
What to watch
- Execution against full-year 2026 revenue guidance of $1.04 to $1.05 billion.
- Clinical therapy selection volume growth of approximately 20% compared to full year 2025.
- The planned launch of Caris Confirm before year-end.
- Whether case-volume growth and ASP improvements continue to support molecular profiling services revenue.
- Gross-margin performance, operating-expense growth, and cash usage associated with commercial expansion, marketing, inventory, and research and development.
Balance sheet and cash flow
- Cash, cash equivalents, and restricted cash: $665,321 thousand as of September 30, 2026, compared to $797,799 thousand as of December 31, 2025.
- Short-term marketable securities: $102,059 thousand as of September 30, 2026, compared to $2,295 thousand as of December 31, 2025.
- Long-term indebtedness, net: $393,178 thousand as of September 30, 2026, compared to $378,823 thousand as of December 31, 2025.
- Total liabilities: $616,142 thousand as of September 30, 2026, compared to $548,356 thousand as of December 31, 2025.
- Accounts receivable: $133,322 thousand as of September 30, 2026, compared to $112,140 thousand as of December 31, 2025.
- Supplies: $138,372 thousand as of September 30, 2026, compared to $63,625 thousand as of December 31, 2025.
- Capitalized software and purchases of property and equipment: $49,887 thousand for the nine months ended September 30, 2026, compared to $11,170 thousand for the nine months ended September 30, 2025.
- Net cash used in investing activities: $(150,004) thousand for the nine months ended September 30, 2026, compared to $(11,170) thousand for the nine months ended September 30, 2025.
- Net cash used in financing activities: $(21,845) thousand for the nine months ended September 30, 2026, compared to net cash provided by financing activities of $661,590 thousand for the nine months ended September 30, 2025.
Analysis
Caris reported third-quarter revenue of $275.4 million, up 27% from $216.8 million. Molecular profiling services generated $262.7 million, also up 27%, and management attributed the increase to higher clinical case volume and ASP improvements. The company completed approximately 61,500 clinical cases, up approximately 21%, and reported over 358,000 total oncology tests. Molecular profiling remained the principal source of revenue, while pharma research and development services revenue was $12,651 thousand.
Gross profit was $182.3 million and gross margin was 66%, versus $147.5 million and 68% in the corresponding prior-year period. The two-point gross-margin decline occurred alongside revenue growth. Operating expenses rose 42% to $163.0 million, with the company citing headcount-related costs, higher research and development investment, and marketing expenditures. Income from operations was $19,316 thousand, compared with $32,642 thousand in the prior-year quarter.
Net income was $15.3 million, compared with $24.3 million, and basic and diluted net income per share were each $0.05, compared with $0.09 and $0.08, respectively. Adjusted EBITDA was positive at $44.4 million, but below $51.2 million in the corresponding prior-year period. For the first nine months, total revenue was $755,243 thousand, income from operations was $51,524 thousand, net income was $14,103 thousand, and Adjusted EBITDA was $126,322 thousand.
Cash conversion weakened in the quarter. Net cash used in operating activities was $22.2 million, compared with net cash provided by operating activities of $62.4 million in the prior-year quarter, while free cash flow was $(39.7) million compared with $55.3 million. Management attributed the operating-cash-flow decrease to commercial expansion and marketing, inventory build-up for new launches, and research and development. For the nine months, operating cash flow remained positive at $39,107 thousand, but free cash flow was $(10,780) thousand following $49,887 thousand of capitalized software and property and equipment purchases.
Caris increased its full-year 2026 revenue outlook to $1.04 to $1.05 billion, representing growth of 28% to 29%, and reaffirmed expected clinical therapy selection volume growth of approximately 20%. The balance sheet reported $665,321 thousand of cash, cash equivalents, and restricted cash, $102,059 thousand of short-term marketable securities, and $393,178 thousand of long-term indebtedness, net. The company also had approximately $72.1 million remaining under its $100.0 million share repurchase authorization.
Management, verbatim
This was another record quarter, with approximately 61,500 clinical cases, up 21% year over year.
David Dean Halbert, Founder, Chairman and CEO of Caris Life Sciences
Caris Assure® is now available for therapeutic response monitoring, and Caris Confirm, our Whole Genome, tumor-informed assay for minimal residual disease, is targeted to launch before year-end.
David Dean Halbert, Founder, Chairman and CEO of Caris Life Sciences
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
- Prior-quarter revenue, margins, earnings, cash flow, and segment comparisons were not reported.
- Forward guidance for gross margin, operating expenses, tax rate, earnings, Adjusted EBITDA, operating cash flow, free cash flow, capital expenditures, cash, debt, or repurchases was not reported.
- A quarterly dividend was not reported.
- A specific driver for pharma research and development services revenue was not reported.
- Year-over-year percentage changes for gross profit, gross margin, individual operating-expense categories, operating income, net income, EPS, Adjusted EBITDA, and nine-month results were not reported on their respective rows.
Written by an AI language model 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 checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. 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
Caris Life Sciences is a Nasdaq‑listed tech‑bio firm providing molecular profiling services for oncology.
Ticker impact
Caris Life Sciences reported Q3 2026 results with revenue up 27% to $275.4M and raised full-year 2026 revenue guidance to $1.04‑$1.05B.
likely upward pressure as the market prices in stronger revenue growth and higher guidance.
The company delivered higher revenue and net income while increasing its 2026 revenue outlook, which typically supports a price rally.
Market effects
Boosts outlook for the tech‑bio sequencing sector as demand for molecular profiling accelerates.
Positive for US biotech investors and may lift related Nasdaq biotech indices.
Limited to investors tracking precision‑medicine companies.
Counterpoint
If the guidance is already priced in, the stock could face a short‑term pullback on profit‑taking.
Key entities
- ExecutiveDavid Dean Halbert
Founder, Chairman and CEO of Caris Life Sciences who commented on the results.
