Caris Life Sciences Inc(US:CAI)2025-11-05 22:01Financial Performance - For the three months ended September 30, 2025, total revenue was $216.8 million, compared to $101.6 million for the same period in 2024, representing a year-over-year increase of 113%[213] - The company achieved net income of $24.3 million for the three months ended September 30, 2025, compared to a net loss of $(67.7) million in 2024[213] - For the nine months ended September 30, 2025, total revenue was $519.1 million, up from $282.3 million in 2024, marking an increase of 84%[213] - Adjusted EBITDA of $51.2 million for the three months ended September 30, 2025, compared to $(45.6) million in 2024[213] - Net income for the nine months ended September 30, 2025, was a loss of $150.0 million, an improvement from a loss of $244.9 million in the same period in 2024[284] Clinical Cases and Services - The number of clinical cases for the three months ended September 30, 2025, was 50,763, up from 42,956 in 2024, indicating a growth of 18%[215] - The number of clinical cases associated with MI Profile and Caris Assure increased from 38,409 and 4,547 cases, respectively, for the three months ended September 30, 2024, to 43,226 and 7,537 cases, respectively, for the same period in 2025, a total increase of 7,807 cases, or 18.2%[241] - The number of clinical cases associated with MI Profile increased from 107,930 to 126,160, representing a total increase of 27,797 cases or 23.4% year-over-year[261] Revenue Sources - Revenue from pharma research and development services grew by 18% year-over-year for the three months ended September 30, 2025, and 25% for the nine months ended September 30, 2025[216] - Revenue from molecular profiling services increased to $207.6 million for the three months ended September 30, 2025, from $93.8 million for the same period in 2024, representing an increase of $113.8 million, or 121.3%[239] - Molecular profiling services revenue increased to $484.6 million for the nine months ended September 30, 2025, up $229.9 million or 90.3% from $254.7 million in 2024[260] Expenses - Selling and marketing expenses were $41.3 million for the three months ended September 30, 2025, an increase of $4.5 million, or 12.3%, compared to $36.8 million for the same period in 2024[251] - General and administrative expenses increased to $52.0 million for the three months ended September 30, 2025, from $40.9 million for the same period in 2024, an increase of $11.1 million, or 27.2%[252] - Research and development expenses were $21.6 million for the three months ended September 30, 2025, compared to $27.6 million for the same period in 2024, a decrease of $6.0 million, or 21.7%[236] - Total costs and operating expenses for the three months ended September 30, 2025, were $184.2 million, compared to $162.5 million for the same period in 2024, an increase of $21.7 million, or 13.3%[236] Cash and Financing - Cash, cash equivalents, restricted cash, and marketable securities totaled $759.3 million as of September 30, 2025[213] - The company completed its IPO on June 20, 2025, raising net proceeds of $459.5 million from the sale of 23,529,412 shares at $21.00 per share[213] - Free cash flow for the nine months ended September 30, 2025, was $27.2 million, compared to a negative free cash flow of $212.4 million in the same period in 2024[285] - Net cash provided by financing activities for the nine months ended September 30, 2025, was $661.6 million, mainly from proceeds of $528.5 million from the IPO[293] Debt and Interest - The 2023 Term Loan Agreement has an outstanding principal amount of $400.0 million, with a fixed interest rate of 10.8% as of September 30, 2025[298] - Interest income for the three months ended September 30, 2025, was $7.4 million, compared to $1.7 million for the same period in 2024, an increase of $5.6 million, or 320.5%[238] - Interest expense for the nine months ended September 30, 2025, was $45.5 million, an increase of $8.7 million or 23.8% compared to $36.8 million in 2024[277] Accounting and Revenue Recognition - The company recognized revenue in accordance with ASC Topic 606, indicating adherence to established accounting standards[306] - The company recognizes revenue from molecular profiling services upon delivery of results to physicians, identifying each sale as a single performance obligation[308] - The company recognizes pharma research and development services revenue over the period in which services are provided, using either output or input methods for revenue recognition[311] Market and Risk Factors - The company is subject to market risk from interest rate changes, but due to the short-term maturities of its investments, a 100 basis point change would not materially affect the fair market value of cash and investments[317] - The company has not engaged in foreign currency hedging transactions and does not currently face significant foreign currency risk, although this may change with international expansion[319]