[Executive Summary](index=1&type=section&id=Executive%20Summary) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) CareDx reported **$90.5 million** adjusted revenue, a **14% YoY increase**, with **13% testing services volume growth** and **narrowed** full-year guidance Q2 2025 Key Financial Highlights | Metric | Value | | :------------------------------------ | :------------------------------------ | | Adjusted Revenue | $90.5 million (+14% YoY) | | GAAP Testing Services Revenue | $62.0 million (-13% YoY) | | Adjusted Testing Services Revenue | $65.9 million (+14% YoY) | | Testing Services Volume | 49,500 (+13% YoY) | | GAAP Net Loss | $8.6 million (vs. $4.6 million in Q2 2024) | | Non-GAAP Net Income | $5.6 million (vs. $13.6 million in Q2 2024) | | Adjusted EBITDA Gain | $9.1 million (vs. loss of $0.3 million in Q2 2024) | | Cash, Cash Equivalents & Marketable Securities | $186 million (as of June 30, 2025) | | Full-Year 2025 Revenue Guidance | $367 million to $373 million (**narrowed**) | [Recent Business Highlights](index=1&type=section&id=Recent%20Business%20Highlights) CareDx achieved **eight consecutive quarters of sequential testing volume growth** and notable advancements in transplant care solutions - **Eighth consecutive quarter** of sequential **growth** in testing services volumes[4](index=4&type=chunk) - First Kidney Allograft Outcomes AlloSure Registry ("KOAR") manuscript published in The American Journal of Transplantation[4](index=4&type=chunk) - Draft LCD **affirms** surveillance testing coverage for solid organ transplant rejection[4](index=4&type=chunk) - **Launched** Increasing Organ Transplant Access ("IOTA") tool in XynQAPI®[4](index=4&type=chunk) - **Leading presence** with **40** abstracts and **12** oral presentations at **2025** World Transplant Congress[4](index=4&type=chunk) [CEO Commentary](index=2&type=section&id=CEO%20Commentary) CEO highlighted **strong Q2 performance** with **accelerated** AlloSure kidney testing volume and **significant** adjusted EBITDA improvement - Volume **growth accelerated**, led by AlloSure kidney testing, up **nearly 20% year-over-year**[5](index=5&type=chunk) - **Improved** cash collections and financial discipline contributed to a **substantial** adjusted EBITDA **improvement**[5](index=5&type=chunk) - **Exceptional** showing at the World Transplant Congress, highlighting AlloSure Kidney as the **most significant** biomarker for detecting organ rejection[5](index=5&type=chunk) - Launch of AlloSure Plus and **differentiated** products position **CareDx as a leading** in transplant care[5](index=5&type=chunk) [Q2 2025 Detailed Financial Results](index=2&type=section&id=Q2%202025%20Detailed%20Financial%20Results) [Revenue Performance](index=2&type=section&id=Revenue%20Performance) GAAP total revenue decreased **6% YoY to $86.7 million** due to write-offs, while adjusted revenue increased **14% to $90.5 million** [Total Revenue](index=2&type=section&id=Total%20Revenue) Total Revenue (in millions) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | | GAAP Total Revenue | $86.7 | $92.3 | -6% | | Adjusted Total Revenue | $90.5 | $79.1 | +14% | | Revenue from tests performed in prior periods (Q2 2025) | $3.8 (reduction) | N/A | N/A | | Revenue from tests performed in prior periods (Q2 2024) | N/A | $13.2 (recognition) | N/A | [Testing Services Revenue](index=2&type=section&id=Testing%20Services%20Revenue) Testing Services Revenue (in millions) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :---------------------------- | :------ | :------ | :--------- | | GAAP Testing Services Revenue | $62.0 | $70.9 | -13% | | Adjusted Testing Services Revenue | $65.9 | $57.7 | +14% | | Testing Services Volume | 49,500 | N/A | +13% | | AlloSure Kidney Testing Volumes | N/A | N/A | Nearly +20% | [Patient and Digital Solutions & Product Revenue](index=2&type=section&id=Patient%20and%20Digital%20Solutions%20%26%20Product%20Revenue) Other Revenue Streams (in millions) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------------------- | :------ | :------ | :--------- | | Patient and Digital Solutions Revenue | $12.8 | $10.7 | +19% | | Product Revenue | $11.8 | $10.6 | +12% | [Profitability](index=2&type=section&id=Profitability) GAAP net **loss** increased to **$8.6 million**, non-GAAP net income decreased, but adjusted EBITDA showed a **$9.1 million gain** [GAAP Net Loss](index=2&type=section&id=GAAP%20Net%20Loss) GAAP Net Loss (in millions) | Metric | Q2 2025 | Q2 2024 | | :------------------------------------ | :------ | :------ | | GAAP Net Loss | $(8.6) | $(4.6) | | GAAP Net Loss Per Share (Basic & Diluted) | $(0.16) | $(0.09) | [Non-GAAP Net Income and Adjusted EBITDA](index=2&type=section&id=Non-GAAP%20Net%20Income%20and%20Adjusted%20EBITDA) Non-GAAP Profitability (in millions) | Metric | Q2 2025 | Q2 2024 | | :------------------------------------------ | :------ | :------ | | Non-GAAP Net Income | $5.6 | $13.6 | | Non-GAAP Diluted Net Income Per Share | $0.10 | $0.25 | | Adjusted EBITDA Gain (excluding prior period revenue) | $9.1 | $(0.3) (loss) | [2025 Financial Guidance](index=2&type=section&id=2025%20Guidance) [Full Year 2025 Outlook](index=2&type=section&id=Full%20Year%202025%20Outlook) CareDx **narrowed** its **full-year 2025 revenue guidance to $367-$373 million** and maintained adjusted EBITDA guidance Full Year 2025 Guidance (in millions) | Metric | New Guidance | Previous Guidance | | :-------------------- | :------------- | :---------------- | | Revenue | $367 to $373 | $365 to $375 | | Adjusted EBITDA | $29 to $33 | $29 to $33 | [About CareDx – The Transplant Company](index=2&type=section&id=About%20CareDx%20%E2%80%93%20The%20Transplant%20Company) [Company Overview](index=2&type=section&id=Company%20Overview) CareDx is a **leading** precision medicine company providing genomics-based healthcare solutions for transplant patients and caregivers - **CareDx is a leading** precision medicine company focused on discovery, development, and commercialization of high-value healthcare solutions for transplant patients and caregivers[11](index=11&type=chunk) - **Offers testing services**, products, and digital healthcare solutions along the pre- and post-transplant patient journey[11](index=11&type=chunk) - **Leading provider** of genomics-based information for transplant patients[11](index=11&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward%20Looking%20Statements) [Disclaimer and Key Information](index=2&type=section&id=Disclaimer%20and%20Key%20Information) Forward-looking statements outline **2025** goals, noting potential **material differences** due to risks and uncertainties, with no obligation to update - Forward-looking statements are based on currently available information and expectations for **2025**[12](index=12&type=chunk) - **Actual results may differ materially** and adversely due to numerous unpredictable risks and uncertainties, including general economic and market factors[13](index=13&type=chunk) - CareDx **expressly disclaims any obligation** to update or revise these statements, except as required by law[13](index=13&type=chunk) - Recent developments mentioned include the launch of AlloSure® Plus, an AI-driven diagnostic platform, and the initiation of multiple customer pilots for the EPIC environment[12](index=12&type=chunk) [Use of Non-GAAP Financial Measures](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) [Explanation and Definitions](index=3&type=section&id=Explanation%20and%20Definitions) CareDx uses non-GAAP measures like adjusted revenue, net income, and EBITDA to provide insights into core business performance, not as GAAP substitutes - **Non-GAAP financial measures are presented** to assist investors in assessing operating results through management's eyes and for comparing core business performance[16](index=16&type=chunk) - Non-GAAP net income (**loss**) excludes stock-based compensation, acquisition-related amortization, litigation settlement expense, transformational initiative costs, and other charges[15](index=15&type=chunk) - Adjusted revenue excludes the impact of revenue from tests performed in prior periods[15](index=15&type=chunk) - Adjusted EBITDA is defined as non-GAAP net income (**loss**) before interest income, income tax, depreciation, other (income) expense, net, and revenue from tests performed in prior periods[15](index=15&type=chunk) - Non-GAAP measures are **not meant to be considered superior to or a substitute** for financial measures calculated in accordance with GAAP[14](index=14&type=chunk) [GAAP to Non-GAAP Reconciliations](index=6&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) Detailed reconciliations between GAAP and non-GAAP financial measures are provided for key line items for Q2 **2025** and **2024** [Cost of Sales and Operating Expenses Reconciliation](index=6&type=section&id=Cost%20of%20Sales%20and%20Operating%20Expenses%20Reconciliation) Q2 2025 GAAP to Non-GAAP Cost of Sales and Operating Expenses (in thousands) | Metric | GAAP | Non-GAAP | Key Adjustments (e.g., Stock-based comp) | | :------------------------------------ | :----- | :------- | :----------------------------------- | | Cost of testing services | $15,406 | $14,731 | $(329) | | Cost of product | $4,981 | $4,267 | $(108) | | Cost of patient and digital solutions | $8,271 | $7,755 | $(189) | | Research and development expenses | $16,830 | $15,423 | $(1,407) | | Sales and marketing expenses | $24,279 | $21,497 | $(2,146) | | General and administrative expenses | $28,033 | $19,828 | $(5,245) | | Total GAAP operating expenses | $69,142 | N/A | N/A | | Total Non-GAAP operating expenses | N/A | $56,748 | N/A | [Gross Profit and Gross Margin Reconciliation](index=9&type=section&id=Gross%20Profit%20and%20Gross%20Margin%20Reconciliation) Q2 2025 GAAP to Non-GAAP Gross Profit and Gross Margin (in thousands, except percentages) | Metric | Q2 2025 | Q2 2024 | | :------------------------------------ | :------ | :------ | | GAAP Gross Profit | $58,021 | $64,275 | | GAAP Gross Margin % | 67% | 70% | | Non-GAAP Gross Profit | $59,926 | $66,238 | | Non-GAAP Gross Margin % | 69% | 72% | | Q2 2025 Adjustments: Stock-based compensation expense | $626 | N/A | | Q2 2025 Adjustments: Restructuring costs | $338 | N/A | | Q2 2025 Adjustments: Acquisition related-amortization | $941 | N/A | [Adjusted Revenue Reconciliations](index=10&type=section&id=Adjusted%20Revenue%20Reconciliations) Q2 2025 GAAP to Non-GAAP Adjusted Revenue (in thousands) | Metric | Q2 2025 | Q2 2024 | | :------------------------------------ | :------ | :------ | | GAAP Total Revenue | $86,679 | $92,274 | | Revenue from tests performed in prior periods (Q2 2025) | $3,827 (reduction) | N/A | | Revenue from tests performed in prior periods (Q2 2024) | N/A | $(13,214) (recognition) | | Adjusted Total Revenue (Non-GAAP) | $90,506 | $79,060 | | GAAP Testing Services Revenue | $62,033 | $70,918 | | Adjusted Testing Services Revenue (Non-GAAP) | $65,860 | $57,704 | [Net Income and EPS Reconciliation](index=12&type=section&id=Net%20Income%20and%20EPS%20Reconciliation) Q2 2025 GAAP to Non-GAAP Net Income and EPS (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | | :------------------------------------ | :------ | :------ | | GAAP Net Loss | $(8,568) | $(4,623) | | Stock-based compensation expense | $9,424 | $16,399 | | Acquisition related-amortization of purchased intangibles | $1,589 | $1,606 | | Transformational initiative costs | $1,871 | $0 | | Non-GAAP Net Income | $5,622 | $13,611 | | GAAP Basic and Diluted Net Loss Per Share | $(0.16) | $(0.09) | | Non-GAAP Basic Net Income Per Share | $0.10 | $0.26 | | Non-GAAP Diluted Net Income Per Share | $0.10 | $0.25 | [Adjusted EBITDA Reconciliation](index=14&type=section&id=Adjusted%20EBITDA%20Reconciliation) Q2 2025 Non-GAAP to Adjusted EBITDA (in thousands) | Metric | Q2 2025 | Q2 2024 | | :------------------------------------------ | :------ | :------ | | Non-GAAP Net Income | $5,622 | $13,611 | | Interest income | $(2,364) | $(2,826) | | Income tax (benefit) expense | $(8) | $121 | | Depreciation expense | $2,132 | $1,937 | | Other (income) expense, net | $(72) | $100 | | Adjusted EBITDA (before prior period revenue) | $5,310 | $12,943 | | Revenue from tests performed in prior periods | $3,827 | $(13,214) | | Adjusted EBITDA (after prior period revenue) | $9,137 | $(271) | [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Unaudited consolidated statements of operations show total revenue decreased to **$86.7 million**, resulting in an **$8.6 million net loss** in Q2 **2025** Condensed Consolidated Statements of Operations (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :---------------------------------- | :----- | :----- | | Testing services revenue | $62,033 | $70,918 | | Product revenue | $11,833 | $10,610 | | Patient and digital solutions revenue | $12,813 | $10,746 | | Total revenue | $86,679 | $92,274 | | Total operating expenses | $97,800 | $99,601 | | Loss from operations | $(11,121) | $(7,327) | | Net loss | $(8,568) | $(4,623) | | Basic and Diluted Net loss per share | $(0.16) | $(0.09) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Unaudited consolidated balance sheets show total assets decreased to **$444.3 million**, driven by reduced cash and marketable securities Condensed Consolidated Balance Sheets (As of, in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $68,212 | $114,689 | | Marketable securities | $118,043 | $145,964 | | Total current assets | $307,296 | $351,832 | | Total assets | $444,257 | $491,050 | | Total current liabilities | $93,180 | $89,371 | | Total liabilities | $116,887 | $112,617 | | Total stockholders' equity | $327,370 | $378,433 | [Contact Information](index=14&type=section&id=Contact%20Information) [Media and Investor Relations](index=14&type=section&id=Media%20and%20Investor%20Relations) This section provides contact details for CareDx's Media Relations and Investor Relations departments - Media Relations Contact: Natasha Wagner (nwagner@CareDx.com)[34](index=34&type=chunk) - Investor Relations Contact: Caroline Corner (investor@CareDx.com)[34](index=34&type=chunk)

Company Overview - CareDx (CDNA) shares increased by 7% to close at $12.75, supported by high trading volume, despite a 37.4% loss over the past four weeks [1] - The company specializes in molecular diagnostics, particularly for solid organ transplant patients [2] Recent Developments - Investors showed optimism following the announcement of a proposed draft Local Coverage Determination (LCD) by Medicare, which maintains coverage for non-invasive surveillance testing in transplant patients [2] - The draft LCD is seen as a confirmation of support for CareDx's surveillance tests, indicating their role in improving health outcomes for transplant patients [2] Financial Performance - CareDx is expected to report quarterly earnings of $0.12 per share, reflecting a year-over-year decline of 52%, with revenues projected at $90.72 million, down 1.7% from the previous year [3] - The consensus EPS estimate has remained unchanged over the last 30 days, suggesting that stock price movements may not continue without trends in earnings estimate revisions [4] Industry Context - CareDx operates within the Zacks Medical Services industry, which includes other companies like Sonida Senior Living (SNDA) [4] - Sonida Senior Living has a consensus EPS estimate of -$0.78, representing a 9.3% increase from the previous year, and also holds a Zacks Rank of 3 (Hold) [5]

Business Overview - CareDx is focused on a $6B+ market opportunity in transplant care[20, 29] - The company's mission is to improve long-term outcomes by providing innovative solutions throughout the entire transplant patient journey[19] - Over 70% of organ transplant centers use one or more of CareDx's digital patient journey solutions[63] Financial Performance - Full year 2023 revenue reached $280.3M, exceeding the high end of updated guidance[77] - Testing Services revenue for 2023 was $209.7M with approximately 165,700 patient results[77] - Patient and Digital Solutions revenue grew by 29% year-over-year to $37.1M in 2023[77] - Product revenue increased by 15% year-over-year to $33.5M in 2023[77] - The company repurchased 2.9 million shares for $27.5 million in 2023[77] - CareDx ended 2023 with approximately $235.4M in cash and marketable securities and no debt[77] Future Outlook - 2024 revenue guidance is set at $260M to $274M[101] - Non-GAAP operating expenses are projected to be between $207M and $215M in 2024[101]

Financial Performance & Growth - CareDx reported Q1 2025 revenue of $84.7 million, an 18% increase year-over-year[18] - Testing volume in Q1 2025 reached approximately 47100, a 12% increase year-over-year[18] - The company's non-GAAP gross margin for Q1 2025 was 685%, a 150 basis points increase[18] - Adjusted EBITDA for Q1 2025 was positive $4.6 million, a $6.4 million increase year-over-year[18] - CareDx is targeting a 15% 3-year revenue Compound Annual Growth Rate (CAGR) and aims for $500 million in revenue by 2027[61] - The company is aiming for a gross margin target of >70% and an adjusted EBITDA target of 20% by 2027[61] Market Position & Strategy - CareDx estimates the transplant services market to be a $50 billion market[24] - The company has performed approximately 1 million rejection monitoring tests[24] - Accounts with 3 or more CareDx solutions have 2x higher average patient acquisition and 2x the testing services revenue[34] Innovation & Pipeline - CareDx is expanding into cell therapy monitoring with products like AlloCell and AlloHeme[48, 55] - The company is launching new diagnostics, including HistoMap Kidney, AlloSure SPK, and AlloSure Heart PEDS[41]

Core Insights - The article emphasizes the importance of conducting thorough due diligence before making any investment decisions [2][3] - It highlights that past performance does not guarantee future results, indicating a need for cautious evaluation of investment opportunities [3] Group 1 - The article serves solely for informational purposes and is not intended as investment advice [2] - It stresses that the author does not have any business relationships with the companies mentioned, ensuring an unbiased perspective [2] - The content is produced by third-party authors, which may include both professional and individual investors without formal licensing [3] Group 2 - The article notes that future outcomes are uncertain and can change based on evolving market conditions [2] - It advises investors to seek personal financial advice for specific investment decisions [2] - The information provided is meant to assist in the due diligence process rather than serve as a direct recommendation [2]

Summary of CareDx Conference Call Company Overview - **Company**: CareDx - **Industry**: Life Sciences Tools and Diagnostics Key Highlights 1. **Q1 Performance**: CareDx reported its seventh consecutive quarter of testing services volume growth, with strong performance across heart, kidney, and lung transplantation sectors [2][3] 2. **ISHLT Conference**: Over 60 abstracts from more than 90 transplant centers presented data on CareDx products, indicating broad acceptance and utilization in the transplant community [3] 3. **Surveillance Protocols**: Reactivation of surveillance protocols in transplant centers is expected to contribute to growth, particularly in kidney and heart transplantation [5][6] 4. **Epic Integration**: The integration with Epic is anticipated to drive a volume boost of 10% or greater, with material impacts expected post-2026 [7][8] 5. **AlloSure Launch**: Initial uptake of AlloSure in specialized populations (pediatrics and simultaneous pancreas-kidney transplant patients) has been strong, indicating market validation [9] 6. **Cell Therapy Market**: CareDx is focusing on the cell therapy market, with plans to develop products for allogeneic stem cell transplants, which occur in the same centers as solid organ transplants [10][11] 7. **IOTA Program**: The IOTA program, starting in July, aims to increase kidney transplant volumes by incentivizing centers to utilize more available kidneys [14][16] 8. **Portfolio Approach**: CareDx emphasizes its end-to-end solutions for transplant centers, integrating diagnostics, software, and pharmacy services to enhance patient management [17][18] Financial Insights 1. **Revenue Growth**: The company is targeting a 15% compound annual growth rate (CAGR) through its long-range plan (LRP) [8] 2. **ASP Guidance**: CareDx has guided a blended average selling price (ASP) of $1,360 for the year, with expectations for gradual improvement as contracts are secured [27] 3. **Gross Margins**: Current gross margins for testing services are in the high 70s, with potential for further expansion as ASPs improve [29][30] 4. **Operating Expenses**: The company aims to leverage operating expenses, particularly in R&D and G&A, to achieve a 20% adjusted EBITDA margin target [39][40] Strategic Initiatives 1. **Sales and Marketing Expansion**: CareDx has increased its field force by 50% to enhance customer engagement and protocol adherence [22][23] 2. **CPT Code Impact**: The introduction of a new CPT code for AlloSure is expected to facilitate contracting with payers and improve market access [25][26] 3. **International Expansion**: CareDx is committed to the European market, focusing on evidence generation for AlloSeq cell-free DNA and leveraging distributors for sales [49][50] 4. **Pipeline Development**: The company is actively evaluating opportunities in pre- and post-transplant spaces, with a focus on organic growth and potential inorganic investments [53][55] Competitive Landscape 1. **Brand Value**: CareDx aims to strengthen its brand in the transplant diagnostics market by investing in evidence generation and enhancing customer relationships [62][63] 2. **Unique Value Proposition**: The company differentiates itself by offering a comprehensive solution set that includes software, IVD kits, and pharmacy services, which is not commonly found in the industry [65][66] Underappreciated Aspects - CareDx's comprehensive approach to the transplant market, integrating various services beyond testing, is seen as a significant growth driver that may not be fully recognized by investors [64][66]

Summary of CareDx (CDNA) 2025 Conference Call Company Overview - CareDx operates in the molecular diagnostics market, focusing on transplant care and management with a global workforce of approximately 650 employees, including 180 in commercial growth, 100 scientists, and 80 software programmers [2][3] Key Growth Drivers - **Go-to-Market Strategy**: Launching new products and extensions, such as AlloSure for heart pediatric patients, to address the entire heart transplant market [2] - **Evidence Generation**: Publishing data to drive payer coverage and reimbursement for products [3] - **Operational Excellence**: Restructuring the revenue cycle management (RCM) function and implementing Epic Aura to enhance efficiency for transplant centers [3] Financial Performance - Q1 revenue growth of 18% year-over-year, with testing volumes increasing by 12% [3] - Ended Q1 with $231 million in cash and no debt [3] - Completed a stock repurchase program, buying back 5% of outstanding shares for approximately $50 million, with an additional $50 million authorized for future buybacks [4] Market Insights - The U.S. transplant market is valued at approximately $50 billion, encompassing organ procurement, procedures, and post-transplant care [4] - Annually, about 46,000 transplants are performed in the U.S., with an average expenditure of $1 million per transplanted organ [5] - CareDx performed around 1 million monitoring assays for transplant organ rejection [5] Product Offerings - CareDx provides a range of solutions including IVD kits for organ matching, software for managing transplant waitlists, and post-transplant monitoring services [8][9] - The company has a strong presence in the transplant market, with 70% of U.S. transplant centers using one or more of its software solutions [5] Market Growth Factors - The transplant market is experiencing organic growth due to technological innovations and government programs promoting transplantation, particularly in the kidney space [7][8] - The IOTA program, effective July 1, aims to increase kidney transplantation rates by optimizing the use of available kidneys [8][41] Pipeline and Future Products - New product launches include AlloSure for simultaneous pancreas and kidney transplantation and AlloSure Heart Pediatrics, expanding the addressable market [12][13] - The histoMAP assay is set to launch, differentiating between types of organ rejection [13] Revenue Guidance - CareDx anticipates a 12% year-over-year revenue growth in 2025, with testing services expected to grow by 17% [22] - The company projects a 15% annual growth rate, driven by market expansion and product adoption [20] Competitive Landscape - The transplant diagnostics market remains underpenetrated, presenting significant growth opportunities for CareDx despite competition [44] Strategic Initiatives - Focus on enhancing payer coverage through evidence generation and successful trials [16][26] - Plans for potential M&A opportunities to complement existing product lines [34] Conclusion - CareDx is positioned for continued growth in the transplant diagnostics market, leveraging innovative solutions and a strong operational framework to enhance patient care and drive revenue [20][44]

Core Viewpoint - Johnson Fistel, PLLP has initiated an investigation into CareDx, Inc. for potential breaches of fiduciary duties and violations of federal securities laws [1][2]. Investigation Details - The investigation focuses on actions taken by CareDx insiders between April 30, 2020, and February 24, 2022, which involved issuing false and misleading statements about the company's compliance with healthcare laws and revenue growth [2]. - CareDx began disclosing issues on October 28, 2021, revealing that the company was under multiple government investigations and that its financial results were significantly lower than previously reported [2]. - By November 3, 2022, CareDx's share price had decreased by over 77.22% from its previous levels [2]. Shareholder Information - Current stockholders who have held CareDx stock since at least January 2021 are encouraged to contact Johnson Fistel to discuss their legal rights regarding the investigation [3].

Core Viewpoint - CareDx reported quarterly earnings of $0.09 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, and showing improvement from a loss of $0.03 per share a year ago, indicating a 50% earnings surprise [1] - The company posted revenues of $84.69 million for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.30%, but showing growth from $72.05 million year-over-year [2] Financial Performance - CareDx has surpassed consensus EPS estimates in all four of the last quarters, with a notable earnings surprise of 157.14% in the previous quarter [2][1] - The current consensus EPS estimate for the upcoming quarter is $0.13, with expected revenues of $90.31 million, and for the current fiscal year, the EPS estimate is $0.58 on revenues of $370.95 million [7] Market Position - CareDx shares have underperformed the market, losing approximately 15.3% since the beginning of the year, compared to a decline of 5.5% in the S&P 500 [3] - The Zacks Rank for CareDx is currently 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Industry Outlook - The Medical Services industry, to which CareDx belongs, is currently ranked in the top 29% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - CareDx reported quarterly revenue of $84.7 million, an 18% increase year over year, with adjusted EBITDA of $4.6 million [11][31][39] - The company ended the quarter with a cash balance of $231 million and no debt [11][39] - Non-GAAP gross margin improved to 68.5%, up 150 basis points year over year [34][35] Business Line Data and Key Metrics Changes - Testing services revenue was $61.9 million, up 15% year over year, with approximately 47,100 tests delivered, a 12% increase from the prior year [11][32] - Patient and Digital Solutions revenue reached $12 million, representing a 24% year over year growth [29][33] - Lab products revenue was $10.8 million, up 26% year over year, driven by sales of AlloSeq TX kits [29][33] Market Data and Key Metrics Changes - CareDx added 3.5 million new covered lives for AlloMap Heart and 15.5 million for AlloSure testing in the first quarter [14] - The company launched two expanded indications for AlloSure, targeting pediatric heart transplant patients and simultaneous pancreas-kidney transplant patients [12][13] Company Strategy and Development Direction - CareDx aims to achieve $365 million to $375 million in revenue for 2025, with a long-range plan of reaching $500 million in revenue by 2027 [11][39] - The company is focusing on expanding its testing services and enhancing market access strategies through published evidence and payer network integration [10][14][29] Management's Comments on Operating Environment and Future Outlook - Management noted a positive trend in surveillance testing volumes, particularly in kidney testing, and expects continued growth in the coming quarters [46][52] - The company anticipates a significant uptick in transplant procedures in the second half of the year due to the initiation of the IOTA program [84] Other Important Information - CareDx is integrating Epic Aura to streamline the ordering process for healthcare providers, with a full launch expected by the end of the year [29][61] - The company reached an agreement to resolve a securities class action litigation for $20.25 million, with expected coverage from insurers [38] Q&A Session Summary Question: Signs of volume returning in surveillance testing - Management confirmed that they are seeing signs of volume returning, particularly in kidney testing, and expect continued growth [46][47] Question: Higher than expected R&D and SG&A expenses - Management explained that the increase in operating expenses was primarily due to investments in sales and marketing, with a focus on maintaining a tight control on overall expenses [48][49] Question: Progress on surveillance volumes and protocols - Management indicated that they are making progress on surveillance testing protocols and expect growth in Q2 [51][52] Question: Impact of new CPT code on coverage and ASP - Management highlighted that the new AlloSure specific code will facilitate better payer contracts and improve ASP per test [85] Question: Incremental benefit from transplant pharmacy on testing services revenue - Management noted that the synergy between patient solutions and testing services is strong, leading to greater engagement and protocol adoption [88][90] Question: Competitive developments in the space - Management expressed confidence in CareDx's market leadership and does not anticipate competitive announcements impacting guidance [97][98]