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CareDx(CDNA) - 2025 Q2 - Quarterly Report

Special Note Regarding Forward-Looking Statements This section provides a cautionary statement on forward-looking projections about future results and operations, subject to risks, with no obligation to update - Forward-looking statements include projections regarding revenue generation, commercial success of testing services, products, and patient/digital solutions, ability to obtain and expand reimbursement coverage, plans for updating solutions, outcomes of clinical trials, favorable review in publications, ability to obtain additional financing, anticipated cash needs, trends and challenges, dependence on suppliers, business disruptions, retention of key management, successful acquisitions, international expansion, regulatory compliance, intellectual property protection, litigation outcomes, and remediation of material weaknesses in internal control11 - The company operates in a competitive and rapidly changing environment, with new risks emerging. Management cannot predict all risks or assess the impact of all factors that may cause actual results to differ materially and adversely from forward-looking statements9 - Readers should not rely on forward-looking statements as predictions of future events, as the company cannot guarantee that future results, levels of activity, performance, or events will be achieved or occur10 PART I. FINANCIAL INFORMATION This section presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis Item 1. Unaudited Condensed Consolidated Financial Statements This section presents the unaudited condensed consolidated financial statements, offering a snapshot of the company's financial position, performance, and cash flows Condensed Consolidated Balance Sheets This section presents the company's financial position, detailing assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheet Data | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | 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 | - The company's total assets decreased from $491.05 million at December 31, 2024, to $444.26 million at June 30, 2025, primarily driven by a reduction in cash and cash equivalents and marketable securities15 - Total stockholders' equity decreased from $378.43 million to $327.37 million, largely due to accumulated deficit and common stock repurchases, partially offset by additional paid-in capital15 Condensed Consolidated Statements of Operations This section details the company's revenues, expenses, and net loss for the three and six months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Operations Data | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Testing services revenue | $62,033 | $70,918 | $123,954 | $124,755 | | Product revenue | $11,833 | $10,610 | $22,643 | $19,204 | | Patient and digital solutions revenue | $12,813 | $10,746 | $24,767 | $20,364 | | Total revenue | $86,679 | $92,274 | $171,364 | $164,323 | | Total operating expenses | $97,800 | $99,601 | $195,859 | $194,216 | | Loss from operations | $(11,121) | $(7,327) | $(24,495) | $(29,893) | | Net loss | $(8,568) | $(4,623) | $(18,921) | $(24,511) | | Basic net loss per share | $(0.16) | $(0.09) | $(0.35) | $(0.47) | | Diluted net loss per share | $(0.16) | $(0.09) | $(0.35) | $(0.47) | - For the three months ended June 30, 2025, total revenue decreased by 6% year-over-year, primarily due to a 13% decrease in testing services revenue, partially offset by increases in product (12%) and patient and digital solutions (19%) revenue17 - Net loss for the three months ended June 30, 2025, increased by 85% to $8.6 million compared to $4.6 million in the same period of 202417 Condensed Consolidated Statements of Comprehensive Loss This section presents the company's comprehensive loss, including net loss and other comprehensive income/loss items, for the three and six months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Comprehensive Loss Data | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Net loss | $(8,568) | $(4,623) | $(18,921) | $(24,511) | | Foreign currency translation adjustment, net of tax | $976 | $144 | $2,456 | $(1,001) | | Comprehensive loss | $(7,592) | $(4,479) | $(16,465) | $(25,512) | - The comprehensive loss for the three months ended June 30, 2025, was $7.6 million, an increase from $4.5 million in the prior year, primarily influenced by the net loss and a positive foreign currency translation adjustment20 - For the six months ended June 30, 2025, comprehensive loss was $16.5 million, an improvement from $25.5 million in the prior year, largely due to a lower net loss and a positive foreign currency translation adjustment20 Condensed Consolidated Statements of Stockholders' Equity This section outlines changes in stockholders' equity, including common stock, additional paid-in capital, and accumulated deficit, for the periods presented Condensed Consolidated Statements of Stockholders' Equity Data | Metric | December 31, 2024 (in thousands) | March 31, 2025 (in thousands) | June 30, 2025 (in thousands) | | :-------------------------------- | :------------------------------- | :---------------------------- | :--------------------------- | | Common Stock (Shares) | 54,771,203 | 55,462,730 | 53,220,123 | | Common Stock (Amount) | $51 | $51 | $53 | | Additional Paid-In Capital | $1,013,193 | $1,022,982 | $1,028,591 | | Accumulated Other Comprehensive Loss | $(8,569) | $(7,089) | $(6,113) | | Accumulated Deficit | $(626,242) | $(636,595) | $(695,161) | | Total Stockholders' Equity | $378,433 | $379,349 | $327,370 | - Total stockholders' equity decreased from $378.43 million at December 31, 2024, to $327.37 million at June 30, 2025. This was primarily driven by a net loss of $18.92 million for the six months ended June 30, 2025, and a $50.0 million repurchase and retirement of common stock23 - Additional paid-in capital increased by $15.4 million during the six months ended June 30, 2025, mainly due to employee stock-based compensation expense ($18.36 million) and proceeds from stock option exercises ($4.08 million), partially