Castle Biosciences Reports Second Quarter 2025 Results

Core Insights - Castle Biosciences reported Q2 2025 revenue of $86 million, a slight decrease from $87 million in Q2 2024, while total test reports for core revenue drivers increased by 33% year-over-year [1][4] - The company raised its full-year 2025 revenue guidance to a range of $310-320 million from the previous range of $287-297 million, reflecting strong performance in its core tests [7] Financial Highlights - Q2 2025 revenues were $86.2 million, compared to $87.0 million in Q2 2024, with adjusted revenues of $86.2 million, slightly down from $86.6 million in the same period last year [4] - Total test reports delivered in Q2 2025 were 26,574, a 6% increase from 25,102 in Q2 2024 [4] - Gross margin for Q2 2025 was 77%, with an adjusted gross margin of 80%, compared to 81% and 83% in Q2 2024, respectively [4] - Net cash provided by operations was $20.8 million, down from $24.0 million in Q2 2024 [4] Operational Highlights - The company delivered 9,981 DecisionDx-Melanoma test reports in Q2 2025, up from 9,585 in Q2 2024, and 9,170 TissueCypher Barrett's Esophagus test reports, significantly up from 4,782 in the same period last year [4] - The DecisionDx-SCC test reports delivered were 4,762, compared to 4,277 in Q2 2024, despite the impact of the Novitas local coverage determination [4] - The company discontinued its IDgenetix test offering in May 2025, which affected test report volumes [4] Strategic Developments - Castle Biosciences completed the acquisition of Previse and announced a collaboration with SciBase, aimed at enhancing its gastrointestinal offerings and developing new diagnostic tests [3][10] - The company is focused on executing its current test portfolio while investing in future growth initiatives [3] Market Position and Future Outlook - The company anticipates continued growth in test volumes and revenue, supported by the clinical value of its tests [2] - The DecisionDx-Melanoma test has received Breakthrough Device designation from the FDA, which may enhance its market position [13] - The company aims to create a multiomics approach for improved patient care in Barrett's esophagus through its acquisition of Previse [10]