Group 1 - Navan, a corporate travel and expense company, has publicly filed for an initial public offering (IPO) in the U.S. [1]

Core Insights - ClearBridge Investments reported a strong rebound in U.S. equities during Q2 2025, with the S&P 500 Index returning 10.9% and the Russell 3000 Index advancing 11.0% as risk-on sentiment increased following a pause in tariff implementation [1] - The ClearBridge Select Strategy outperformed its benchmark due to effective portfolio construction across various companies and sectors with distinct growth drivers [1] Company Highlights - Caris Life Sciences, Inc. (NASDAQ:CAI) is highlighted as a key stock in the ClearBridge Select Strategy, being an AI-driven TechBio company focused on cancer care and genetic profiling [2][3] - Caris Life Sciences experienced a one-month return of -12.04% but gained 19.75% over three months, closing at $33.53 per share with a market capitalization of $9.431 billion as of September 17, 2025 [2] - The company went public late in Q2 2025 and offers differentiated molecular profiling services to biopharmaceutical companies using machine learning algorithms [3] Hedge Fund Interest - Caris Life Sciences was held by 42 hedge fund portfolios at the end of Q2 2025, a significant increase from 0 in the previous quarter, indicating growing interest among institutional investors [4] - Despite the potential of Caris Life Sciences, the company is not listed among the 30 most popular stocks among hedge funds, with some analysts suggesting that other AI stocks may offer greater upside potential and less downside risk [4]

Group 1: Company Overview - Caris Life Sciences, Inc. (NASDAQ:CAI) is recognized as one of the best-performing biotech stocks in 2025, ranking tenth due to its advancements in precision oncology and AI-powered molecular diagnostics [1] - The company has received FDA approval for its MI Cancer Seek platform, which is the first diagnostic test to combine whole exome and whole transcriptome sequencing for both adult and pediatric tumors [2] Group 2: Technological Advancements - The MI Cancer Seek platform has been validated for eight companion diagnostics, including a pan-cancer indication, allowing oncologists to profile tumors from minimal samples, thus enhancing accuracy and turnaround time [2] - Caris Life Sciences is also advancing blood-based diagnostics through its Caris Assure platform, which utilizes AI for noninvasive early detection and therapy monitoring [3] Group 3: Data Utilization - The company boasts a growing database of over 900,000 genomic profiles and 600,000 matched clinical datasets, leveraging big data to drive discoveries in the field of oncology [4] Group 4: Collaborations and Partnerships - Caris Life Sciences is expanding its collaborations, notably with the Karmanos Cancer Institute, to promote the adoption of multi-technology tumor profiling in clinical practice [3]

Industry Overview - The biotech sector has been challenging to predict due to the large number of publicly traded stocks that exhibit inconsistent trends, making it difficult to assess the overall market direction [2] - Recent observations indicate that the industry is trading better, with higher lows and a halt in the long-running daily decline, suggesting a potential upward movement [3] - A shift in investor sentiment has been noted, attributed to discussions around the "pharma dilemma," which involves the need for pharmaceutical companies to acquire new assets and improve clinical data [4] Company Highlights - **Galapagos NV (NASDAQ:GLPG)**: - Year-to-Date Performance: 22% - Focuses on next-generation oncology with CAR-T programs and a decentralized manufacturing model for faster treatment delivery [8][9] - GLPG5101, a CAR-T therapy, received RMAT designation from the FDA for relapsed/refractory mantle cell lymphoma, showing a 97% complete response rate in trials [10] - The company is expanding its pipeline to include new cohorts and advancing a second CAR-T candidate, GLPG5301, for multiple myeloma [11][12] - **Caris Life Sciences, Inc. (NASDAQ:CAI)**: - Year-to-Date Performance: 24.32% - Known for precision oncology and AI-powered molecular diagnostics, with a significant FDA approval for its MI Cancer Seek platform [13][14] - The platform allows comprehensive tumor profiling from minimal samples, enhancing accuracy and turnaround time [14] - The company is also advancing blood-based diagnostics and expanding collaborations to enhance multi-technology tumor profiling [15][16] - **Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT)**: - Year-to-Date Performance: 24.41% - Focuses on dermatology with ZORYVE, a steroid-free PDE4 inhibitor for immune-mediated skin conditions [17] - Achieved FDA approval for ZORYVE foam for plaque psoriasis and is seeking to expand its label for pediatric use [18][19] - The company is advancing a late-stage pipeline, indicating long-term growth potential in dermatology [20]

Core Insights - Caris Life Sciences has published a study validating the performance of MI Cancer Seek, an FDA-approved assay for identifying cancer patients who may benefit from targeted therapies [1][2] - MI Cancer Seek is the first test to combine whole exome sequencing and whole transcriptome sequencing with FDA-approved companion diagnostic indications for solid tumors in both adult and pediatric patients, representing a significant advancement in precision oncology [1][3] Performance and Features - The study shows that MI Cancer Seek reliably detects multiple variant types of high clinical significance, with positive and negative percent agreement ranging from 97% to 100% compared to other FDA-approved assays [2] - The assay supports eight companion diagnostic claims, addressing high clinical burden areas and demonstrating strong performance [2] - MI Cancer Seek allows simultaneous RNA and DNA extraction from minimal tissue input, reducing tissue requirements and potential delays compared to other assays [2][3] Technological Innovation - MI Cancer Seek utilizes next-generation sequencing (NGS) and total nucleic acid (TNA) from formalin-fixed paraffin-embedded (FFPE) tumor tissue specimens to detect single nucleotide variants, insertions and deletions, microsatellite instability, tumor mutational burden, and copy number amplification [3] - The assay is intended to provide tumor mutational profiling for patients with previously diagnosed solid tumors, aligning with professional oncology guidelines [3] Company Overview - Caris Life Sciences is a leading AI TechBio company focused on precision medicine, developing innovative solutions to transform healthcare through comprehensive molecular profiling and advanced AI applications [5][6] - The company aims to combine extensive molecular information with data-driven insights to realize the potential of precision medicine for patients [6]

Core Insights - Caris Life Sciences published a study in Breast Cancer Research comparing the effectiveness of two antibody-drug conjugates, trastuzumab deruxtecan (T-DXd) and sacituzumab govitecan (SG), in treating HER2-negative breast cancer patients [1][2] Group 1: Study Findings - T-DXd was found to be more effective for hormone receptor (HR)-positive patients, allowing them to remain on treatment longer compared to those receiving SG [2] - SG demonstrated better results as the first treatment for patients with HR-negative and HER2-null tumors [2] - For other patient groups, there was no significant advantage in starting treatment with either drug [2] Group 2: Research Methodology - The study utilized Caris' real-world database, which included data from over 4,000 patients, to identify key differences that could aid clinicians in treatment decision-making [4] - The findings indicated that T-DXd and SG provided comparable benefits for patients with triple-negative breast cancer, emphasizing the need for personalized treatment strategies based on tumor subtype [4] Group 3: Company Overview - Caris Life Sciences is a leading AI TechBio company focused on precision medicine, utilizing advanced AI and machine learning to analyze complex disease data [6] - The company aims to transform healthcare through comprehensive molecular profiling and the development of advanced precision medicine diagnostic solutions [6][7]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 increased by 81% year over year to $181.4 million, driven by strong performance in both clinical profiling and pharma R&D services [9][26] - Molecular profiling services revenues rose to $162.9 million, representing an 86% year-over-year increase, while pharma R&D services grew to $18.5 million, a 49% increase year over year [9][26] - Gross margins improved to 62.7%, up from 37.5% in the same quarter last year, reflecting strong revenue growth and operational efficiencies [12][29] - Positive adjusted EBITDA of $16.7 million and positive free cash flow of $5.9 million were generated in the quarter [13][31] - The company ended the quarter with $723 million in cash and marketable securities following a successful IPO that raised net proceeds of $519 million [13][26] Business Line Data and Key Metrics Changes - Clinical case volumes exceeded 50,000 profiles, marking a 22% year-over-year growth, with a 56% increase in case volume for Caris Assure therapy selection [10][14] - Average selling price (ASP) for clinical profiling increased to $3,256 per profile, a 52% year-over-year growth, primarily due to the new CMS rate for My CancerSEQ [10][12] - My CancerSEQ accounted for approximately 78% of tissue cases in Q2, up from 54% in Q1, contributing to ASP improvements [28] Market Data and Key Metrics Changes - The penetration rate for comprehensive genomic profiling (CGP) remains low at around 30%, indicating significant growth opportunities [15] - The company has established EHR integration with approximately 2,500 clinical sites, with over 60% of orders transmitted electronically [15] Company Strategy and Development Direction - The company aims to make precision medicine a reality through its advanced tech platform, focusing on whole exome and whole transcriptome assays [8] - The strategic focus includes expanding market share in therapy selection and enhancing operational efficiencies to support profitable growth [12][14] - The company is committed to ongoing investments in MRD monitoring, early detection, and other markets, leveraging its strengthened balance sheet [13][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, citing strong demand for their services and the ongoing evolution of the market [52][100] - The company anticipates continued revenue growth and improved ASPs, with guidance for total revenue in FY 2025 expected to be between $675 million and $685 million, representing a 64% to 66% increase over 2024 [32] Other Important Information - The Caris Precision Oncology Alliance continues to grow, now with 97 members, enhancing the company's research capabilities and partnerships [17] - The company published a landmark study demonstrating the effectiveness of its universal assay across the cancer care continuum [19][25] Q&A Session Summary Question: Can you elaborate on the ASP update in the quarter? - The ASP uplift was primarily driven by the 78% of tissue cases from My CancerSEQ and successful Medicare catch-up [35][38] Question: What is the guidance for the back half of the year? - The guidance assumes mid to high teens growth for clinical volumes, with Q4 typically being a stronger quarter for pharma [60][62] Question: How is the company addressing the early cancer detection market? - The strategy focuses on breast cancer due to significant unmet clinical needs, leveraging the limitations of current mammography [93] Question: What is the competitive landscape for tissue therapy selection? - The company sees strong growth potential in the market, with ongoing physician education and adoption of sophisticated assays [100]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 increased by 81% year over year to $181.4 million [8][27] - Molecular profiling services revenues rose to $162.9 million, an increase of 86% year over year [8][27] - Pharma R&D services revenue grew to $18.5 million, reflecting a 49% year over year increase [8][27] - Gross margins improved to 62.7%, up from 37.5% in the same quarter last year [12][29] - Positive adjusted EBITDA of $16.7 million and positive free cash flow of $5.9 million were achieved [13][32] Business Line Data and Key Metrics Changes - Clinical case volumes exceeded 50,000 profiles, representing a 22% year over year growth [10][14] - Average selling price (ASP) for molecular profiling increased to $3,256 per profile, a 52% year over year growth [10][12] - Caris Assure for therapy selection saw a 56% year over year case volume growth [10] Market Data and Key Metrics Changes - The penetration rate for comprehensive genomic profiling (CGP) remains low at around 30%, indicating significant growth opportunities [15][101] - The company has contracted with national commercial payers covering over 170 million lives, enhancing market access [38][55] Company Strategy and Development Direction - The company aims to leverage its technology platform for precision medicine, focusing on whole exome and whole transcriptome assays [7][8] - The long-term strategy includes expanding into MRD monitoring and early detection markets [13][26] - The company emphasizes the importance of partnerships and collaborations, such as the Caris Precision Oncology Alliance, to enhance its market position [17][101] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, citing strong demand for their services and the potential for further ASP increases [39][90] - The company anticipates continued positive trends in revenue and profitability, with guidance for total revenue in FY 2025 expected to be between $675 million and $685 million [33][34] Other Important Information - The company completed its IPO in June 2025, raising net proceeds of $519 million, significantly strengthening its balance sheet [13][27] - The company has integrated with approximately 2,500 clinical sites, with over 60% of orders transmitted electronically [15] Q&A Session Summary Question: Can you discuss the ASP update in the quarter? - The ASP for tissue was primarily driven by the increase in MyCancerSEQ cases, which represented 78% of tissue cases in Q2 [36][38] Question: What is the guidance for the year and the assumptions behind it? - The guidance assumes mid to high teens growth in clinical volumes for the second half of the year, with a total revenue expectation of $675 million to $685 million [33][34][62] Question: How is the company addressing the competitive environment in tissue profiling? - The company believes it has a differentiated platform and is well-positioned to capture market share as the penetration of CGP remains low [101][102] Question: What is the strategy for MRD and how does it compete with larger players? - The MRD offering is unique due to its comprehensive approach, and the company is not providing specific timelines for market entry [88] Question: How is the company managing operating expenses and R&D spending? - R&D spending is expected to remain flat as most investments have already been made, allowing for strategic allocation towards sales and marketing [69][71]

[Part I - Financial Information](index=5&type=section&id=Part%20I%20-%20Financial%20Information) [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for June 30, 2025, reflect significant changes driven by the June 2025 IPO, including a substantial increase in cash, a shift from shareholders' deficit to positive equity, and strong revenue growth despite continued net losses - **Net IPO proceeds of $459.5 million** from 23,529,412 shares at $21.00, plus **$68.9 million** from over-allotment[34](index=34&type=chunk) - All outstanding redeemable convertible preferred stock converted into **211,378,638 common shares** upon IPO[36](index=36&type=chunk) - A **one-for-four reverse stock split** of common stock was effective June 1, 2025, with all share and per-share data retroactively adjusted[33](index=33&type=chunk) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, reflects significant financial improvement post-IPO, with cash increasing to **$720.4 million** and a **$2.5 billion shareholders' deficit** converting to **$452.9 million positive equity** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash, cash equivalents, and restricted cash | $720,444 | $65,442 | | Total current assets | $833,319 | $215,729 | | **Total assets** | **$955,058** | **$343,734** | | **Liabilities & Equity** | | | | Total current liabilities | $90,180 | $165,423 | | Total liabilities | $502,154 | $620,921 | | Redeemable convertible preferred stock | $0 | $2,221,651 | | Total shareholders' equity (deficit) | $452,904 | $(2,498,838) | | **Total liabilities, redeemable convertible preferred stock, and shareholders' equity (deficit)** | **$955,058** | **$343,734** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For Q2 2025, total revenue increased **81.3% year-over-year to $181.4 million**, but the company reported a net loss of **$71.8 million**, slightly higher than Q2 2024, due to increased operating and other IPO-related expenses Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $181,398 | $100,049 | $302,314 | $180,727 | | Loss from Operations | $(17,989) | $(67,011) | $(75,940) | $(159,234) | | Net Loss | $(71,790) | $(66,186) | $(174,370) | $(177,214) | | Net Loss per Share | $(7.97) | $(2.54) | $(12.80) | $(6.34) | - A **$384.4 million deemed dividend** on Series D preferred stock significantly increased net loss attributable to common shareholders for the three and six months ended June 30, 2025[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities improved to **$24.1 million**, while financing activities provided **$682.7 million**, primarily from the IPO, resulting in a **$654.7 million net increase in cash** Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(24,050) | $(136,851) | | Net cash provided by (used in) investing activities | $(4,075) | $57,050 | | Net cash provided by financing activities | $682,687 | $199,979 | | **Net increase in cash, cash equivalents, and restricted cash** | **$654,659** | **$120,191** | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies and significant financial events, including the company's business as an AI TechBio and precision medicine firm, pre-IPO financing, IPO specifics, revenue recognition, and long-term debt, including a **$400 million term loan** - Revenue is primarily derived from **Molecular profiling services** (MI Profile and Caris Assure) and **Pharma research and development services**[44](index=44&type=chunk) - In April 2025, the company raised **$167.7 million** through private financing, including convertible notes, warrants, and Series E and F preferred stock[29](index=29&type=chunk) - As of June 30, 2025, a **$400 million term loan** was outstanding, due January 2028, with an interest rate of **10.8%**[169](index=169&type=chunk)[171](index=171&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management highlights the company's strong revenue growth driven by molecular profiling solutions and increased clinical case volumes, achieving positive Adjusted EBITDA in Q2 2025, with IPO proceeds significantly strengthening liquidity for future operations and R&D investments - Global annual clinical case volume grew **26% year-over-year** through Q2 2025[203](index=203&type=chunk) - The launches of **Caris Assure** (Q1 2024) and **MI Cancer Seek** (Q1 2025) are anticipated as significant growth drivers[203](index=203&type=chunk) Key Financial Metrics (in millions) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $181.4 | $100.0 | $302.3 | $180.7 | | Net Loss | $(71.8) | $(66.2) | $(174.4) | $(177.2) | | Adjusted EBITDA | $16.7 | $(50.9) | $(19.5) | $(121.0) | | Free Cash Flow | N/A | N/A | $(28.1) | $(141.2) | [Results of Operations](index=59&type=section&id=Results%20of%20Operations) Q2 2025 revenue increased **81.3% year-over-year to $181.4 million**, primarily from **85.9% growth in Molecular Profiling services** due to higher ASPs and increased clinical case volume, while operating expenses rose due to IPO-related stock-based compensation Revenue Comparison - Q2 2025 vs Q2 2024 (in thousands) | Revenue Stream | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Molecular profiling services | $162,924 | $87,656 | $75,268 | 85.9% | | Pharma research and development services | $18,474 | $12,393 | $6,081 | 49.1% | | **Total revenue** | **$181,398** | **$100,049** | **$81,349** | **81.3%** | - Molecular Profiling revenue growth was driven by **higher MI Profile ASP (+$50.3 million)**, **increased MI Profile volume (+$14.3 million)**, and **Caris Assure volume and ASP growth (+$10.7 million)**[234](index=234&type=chunk) - General and administrative expenses increased by **$23.3 million (56.7%)** in Q2 2025, primarily due to a **$20.3 million increase in IPO-related stock-based compensation**[242](index=242&type=chunk) [Liquidity and Capital Resources](index=72&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company held **$718.9 million in cash and equivalents**, with IPO proceeds and existing capital expected to fund operations for at least the next 12 months, alongside **$400 million in outstanding term loan debt** maturing in 2028 - As of June 30, 2025, the company had **$718.9 million in cash and cash equivalents** and an **accumulated deficit of $2.7 billion**[280](index=280&type=chunk)[281](index=281&type=chunk) - Net cash provided by financing activities for the first six months of 2025 was **$682.7 million**, primarily from **IPO net proceeds ($528.5 million)** and pre-IPO financing[288](index=288&type=chunk) - The company has a **$400.0 million term loan** due January 2028, with an interest rate of **10.8%** as of June 30, 2025[290](index=290&type=chunk)[292](index=292&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=77&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks include interest rate risk on its **$400 million variable-rate debt**, where a **100 basis point increase** would raise annual interest expense by **$4.0 million**, while foreign currency and inflation risks are currently not significant - The company faces interest rate risk on its **$400.0 million variable-rate debt**, where a **100 basis point increase** would raise annual interest expense by **$4.0 million**[312](index=312&type=chunk) - Foreign currency risk is minimal as substantially all revenue is generated in the United States[314](index=314&type=chunk) [Item 4. Controls and Procedures](index=78&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of June 30, 2025, due to a material weakness in internal control over financial reporting, specifically a lack of qualified accounting resources, with remediation efforts underway - Disclosure controls and procedures were **not effective** as of June 30, 2025, due to a material weakness in internal control over financial reporting[317](index=317&type=chunk) - The material weakness stems from insufficient qualified accounting resources with technical expertise for complex transactions[317](index=317&type=chunk) - Remediation efforts include hiring experienced accounting and finance personnel and implementing enhanced review controls[319](index=319&type=chunk) [Part II - Other Information](index=81&type=section&id=Part%20II%20-%20Other%20Information) [Item 1. Legal Proceedings](index=81&type=section&id=Item%201.%20Legal%20Proceedings) In March 2025, the company received a Civil Investigative Demand from the U.S. Department of Justice regarding a False Claims Act investigation into Medicare's 14-day rule compliance, with the outcome currently uncertain - In March 2025, the company received a Civil Investigative Demand from the U.S. Department of Justice for a False Claims Act investigation[322](index=322&type=chunk) - The investigation focuses on compliance with Medicare's "14-day rule" for date of service[322](index=322&type=chunk) [Item 1A. Risk Factors](index=81&type=section&id=Item%201A.%20Risk%20Factors) This section details significant risks, including intense competition, a history of substantial losses, reliance on product market acceptance, uncertain third-party payer reimbursement, potential LDT regulatory changes, supply chain dependency, cybersecurity threats, significant indebtedness, CEO voting power concentration, and internal control weaknesses - The company has a history of significant losses, with a **net loss of $174.4 million** for the first six months of 2025 and an **accumulated deficit of $2.7 billion** as of June 30, 2025[332](index=332&type=chunk) - Uncertainty of coverage and reimbursement from third-party payers, including Medicare, poses a significant commercial risk[360](index=360&type=chunk) - Reliance on **Illumina** as the sole supplier for NGS instruments and reagents presents a significant supply chain risk[385](index=385&type=chunk) - The Founder, Chairman, and CEO, David D. Halbert, beneficially owns approximately **44.1% of outstanding common stock**, significantly influencing shareholder matters[646](index=646&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=176&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details unregistered equity sales, including **$30.0 million in convertible notes** and preferred stock issued in April 2025 that converted to common stock upon the IPO, and the use of **$519.5 million net proceeds** from the June 2025 IPO - In Q2 2025, the company issued convertible notes, Series E & F Preferred Stock, and warrants in unregistered transactions, all converting to common stock upon the IPO[685](index=685&type=chunk)[692](index=692&type=chunk) - The June 2025 IPO generated **$519.5 million in net proceeds** after deducting discounts and expenses[687](index=687&type=chunk) [Item 5. Other Information](index=179&type=section&id=Item%205.%20Other%20Information) On August 8, 2025, Caris MPI, Inc. extended its Phoenix, Arizona clinical laboratory lease until August 31, 2031, with no Rule 10b5-1 trading arrangements adopted or terminated by directors or officers during the quarter - On August 8, 2025, the company extended the lease for its Phoenix, Arizona clinical laboratory until **August 31, 2031**[695](index=695&type=chunk)

Financial Performance - Total revenue increased by 81% year-over-year, reaching $181.4 million in Q2 2025, compared to $100 million in Q2 2024[11] - Molecular Profiling Services revenue grew by 86% year-over-year, amounting to $162.9 million in Q2 2025, up from $87.7 million in Q2 2024[11] - Pharma R&D Services revenue increased by 49% year-over-year, reaching $18.5 million in Q2 2025, compared to $12.4 million in Q2 2024[11] - Clinical ASP improved by 52%, rising from $2,138 in Q2 2024 to $3,256 in Q2 2025[15] - Gross margin increased by 2,514 basis points year-over-year, reaching 62.7% in Q2 2025[15, 42] - Adjusted EBITDA turned positive, reaching $16.7 million in Q2 2025, compared to a loss of $50.9 million in Q2 2024[15, 34] - Free Cash Flow turned positive, reaching $5.9 million in Q2 2025, compared to a loss of $65.5 million in Q2 2024[15, 34] Operational Highlights - Clinical volume grew by 22%, with 50,032 clinical cases completed in Q2 2025[15] - The company's molecular dataset surpassed 900,000+ comprehensive tumor patient profiles, including over 529,000 Whole Exomes and 580,000 Whole Transcriptomes[15, 21] - Caris Assure ASP increased 58.7% year-over-year to $2,519 in Q2 2025[40] - MI Profile ASP increased 53.1% year-over-year to $3,379 in Q2 2025[40] Strategic Initiatives - The Partner Oncology Alliance (POA) expanded to 97 sites with over 1,100 publications[15, 23] - A landmark Caris Assure study was published, validating the single assay across the cancer care continuum[15, 26]