[CareDx First Quarter 2025 Results](index=1&type=section&id=CareDx%20First%20Quarter%202025%20Results) [Financial Highlights](index=1&type=section&id=First%20Quarter%20Financial%20Highlights) CareDx reported strong Q1 2025 financial performance with 18% revenue growth to $84.7 million, achieving non-GAAP net income of $5.4 million and adjusted EBITDA of $4.6 million, and maintaining a solid $231 million cash position Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Total Revenue | $84.7M | $72.0M | +18% | | Testing Services Revenue | $61.9M | $53.8M | +15% | | GAAP Net Loss | ($10.4M) | ($19.9M) | 48% Improvement | | Non-GAAP Net Income/(Loss) | $5.4M | ($1.4M) | Significant Improvement | | Adjusted EBITDA | $4.6M | ($1.9M) | Significant Improvement | | Cash & Marketable Securities | $231M | N/A | N/A | - The company reaffirmed its full-year 2025 guidance for revenue of **$365 million to $375 million** and adjusted EBITDA of **$29 million to $33 million** and maintained its 2027 target of **$500 million** in revenue and **$100 million** in adjusted EBITDA[6](index=6&type=chunk)[10](index=10&type=chunk) [Business Highlights](index=1&type=section&id=First%20Quarter%20Business%20Highlights) CareDx achieved its seventh consecutive quarter of sequential growth in testing services volume, reaching approximately 47,100 tests, while advancing strategic initiatives for AlloSure®, AlloHeme™, and Revenue Cycle Management - Testing services volume grew to approximately **47,100**, marking the seventh consecutive quarter of sequential growth[1](index=1&type=chunk)[6](index=6&type=chunk) - Launched two expanded indications for AlloSure® Testing Services: AlloSure Heart for pediatric patients and AlloSure Kidney for simultaneous pancreas-kidney (SPK) transplant patients[6](index=6&type=chunk) - Advanced the AlloHeme™ pipeline with data presentations at the TANDEM and EBMT conferences[4](index=4&type=chunk)[6](index=6&type=chunk) - Completed the restructuring of the Revenue Cycle Management team to drive Average Selling Price (ASP) growth and launched a strategic initiative to enhance integration with EPIC AURA EMR systems[6](index=6&type=chunk) [Detailed Financial Results](index=1&type=section&id=Q1%202025%20Financial%20Results) Q1 2025 total revenue reached $84.7 million, up 18% YoY, driven by growth across all segments, significantly narrowing GAAP net loss to $10.4 million and achieving non-GAAP net income of $5.4 million Q1 Revenue Breakdown (YoY) | Revenue Segment | Q1 2025 | Q1 2024 | Growth | | :--- | :--- | :--- | :--- | | Testing Services | $61.9M | $53.8M | +15% | | Patient and Digital Solutions | $12.0M | $9.6M | +24% | | Product | $10.8M | $8.6M | +26% | | **Total Revenue** | **$84.7M** | **$72.0M** | **+18%** | - Testing Services revenue for Q1 2025 included a **$1.1 million** write-off for aged receivables, with non-GAAP adjusted testing services revenue at **$63.0 million** excluding this[5](index=5&type=chunk)[7](index=7&type=chunk) Q1 Profitability (YoY) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP Net Loss | ($10.4M) | ($19.9M) | | GAAP Net Loss per Share | ($0.19) | ($0.38) | | Non-GAAP Net Income/(Loss) | $5.4M | ($1.4M) | | Non-GAAP Diluted Net Income/(Loss) per Share | $0.09 | ($0.03) | | Adjusted EBITDA | $4.6M | ($1.9M) | [Financial Statements](index=4&type=section&id=Financial%20Statements) The financial statements detail an 18% revenue increase and reduced operating loss to $13.4 million, while the balance sheet shows stable total assets at $489.6 million and a strong equity position with no debt [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 total revenues were $84.7 million, with operating expenses of $98.1 million, resulting in a $13.4 million loss from operations and a GAAP net loss of $10.4 million, or $0.19 per share Q1 2025 Statement of Operations Highlights (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $84,685 | $72,049 | | Total Operating Expenses | $98,059 | $94,615 | | Loss from Operations | ($13,374) | ($22,566) | | Net Loss | ($10,353) | ($19,888) | | Net Loss per Share (Basic & Diluted) | ($0.19) | ($0.38) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, CareDx held $230.9 million in cash and marketable securities, with total assets of $489.6 million, total liabilities of $110.3 million, and total stockholders' equity of $379.3 million, with no debt Balance Sheet Highlights (in thousands) | Line Item | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $88,745 | $114,689 | | Marketable securities | $142,172 | $145,964 | | Total Assets | $489,638 | $491,050 | | Total Liabilities | $110,289 | $112,617 | | Total Stockholders' Equity | $379,349 | $378,433 | [2025 Guidance](index=2&type=section&id=2025%20Guidance) CareDx reaffirms its full-year 2025 financial guidance, projecting total revenue between $365 million and $375 million and adjusted EBITDA between $29 million and $33 million Full-Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Revenue | $365M - $375M | | Adjusted EBITDA | $29M - $33M | [Non-GAAP Financial Measures & Reconciliations](index=2&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) CareDx uses non-GAAP measures like adjusted EBITDA and non-GAAP net income to clarify core operating performance, reporting Q1 2025 non-GAAP net income of $5.4 million and adjusted EBITDA of $4.6 million - The company uses non-GAAP financial measures to assist investors in assessing operating results by excluding items like stock-based compensation, acquisition-related amortization, and litigation settlement expenses[14](index=14&type=chunk)[15](index=15&type=chunk) Reconciliation of GAAP Net Loss to Non-GAAP Net Income (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **GAAP Net Loss** | **($10,353)** | **($19,888)** | | Stock-based compensation | $8,931 | $16,573 | | Acquisition related-amortization | $1,539 | $1,653 | | Litigation settlement expense | $5,360 | $0 | | Other adjustments | $46 | $214 | | **Non-GAAP Net Income (Loss)** | **$5,424** | **($1,448)** | Reconciliation to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Non-GAAP Net Income (Loss)** | **$5,424** | **($1,448)** | | Interest income | ($2,784) | ($2,885) | | Income tax expense | $157 | $19 | | Depreciation expense | $2,061 | $2,168 | | Other (income) expense, net | ($295) | $290 | | **Adjusted EBITDA** | **$4,563** | **($1,856)** |

Financial Data and Key Metrics Changes - CareDx reported quarterly revenue of $86.6 million for Q4 2024, representing a 32% year-over-year increase [10] - Full year 2024 revenue reached $334 million, up 19% year-over-year, exceeding the high end of guidance [36] - Adjusted EBITDA for Q4 was $9.8 million, with a full year adjusted EBITDA of $27.8 million, a significant improvement from a loss of $38 million in 2023 [10][42] - The company ended the year with a cash balance of $261 million and no debt, generating $22 million in cash from operations in Q4 [10][44] Business Line Data and Key Metrics Changes - Testing Services revenue for Q4 was $63.8 million, up 37% year-over-year, with approximately 45,500 tests delivered, marking a 14% increase [12][13] - Patient and Digital Solutions revenue was approximately $11.4 million in Q4, representing an 18% year-over-year growth [15] - Lab Products revenue also reached $11.4 million, showing a 23% year-over-year increase, driven by sales of AlloSeq Tx NGS-based HLA typing kits [17] Market Data and Key Metrics Changes - CareDx expanded payer coverage significantly, adding or expanding coverage for 28 million lives for AlloMap Heart and 36 million lives for AlloSure in 2024 [14] - Approximately 5% of CareDx's revenue comes from outside the U.S., with significant potential for growth in the European market [19] Company Strategy and Development Direction - The company aims for long-term profitable growth, targeting $370 million in revenue for 2025 and $500 million by 2027, with a focus on operational excellence and scaling business profitably [10][48] - Key growth drivers include a go-to-market strategy to provide comprehensive solutions to transplant centers, evidence generation to expand payer coverage, and operational excellence to improve efficiency [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving significant milestones in 2025, particularly with the anticipated implementation of the IOTA program for kidney transplant centers [23][24] - The company is focused on enhancing patient adherence to immunosuppressants through a medication therapy management program launching in 2025 [26] Other Important Information - The company has initiated a share buyback program of up to $50 million over two years, reflecting confidence in its financial position [44] - A significant legal victory reversed a prior $96 million verdict, positively impacting the company's financial statements for 2024 [42] Q&A Session Summary Question: Can you discuss efforts in converting existing accounts with fewer than three solutions to three or more solutions? - Management highlighted the focus on the XynQAPI product for quality reporting and the launch of a medication therapy management program to assist patients with drug interactions, which will drive the use of AlloSure [56] Question: What is the path forward regarding litigation after the reversal of the $96 million verdict? - Management indicated that while an appeal is likely, the reversal allows for strategic capital allocation, including reinvestment in growth opportunities and share buybacks [66] Question: Can you clarify the impact of prior period collections on Q4 revenue and guidance for 2025? - Q4 revenue included approximately $2.2 million from prior period collections, with no contributions from these one-time tests included in the 2025 guidance [72][73] Question: How much of the mid-teens volume growth in 2025 is expected from increased surveillance testing? - Management believes surveillance testing will significantly contribute to mid-teens volume growth, with ongoing discussions to turn on protocols at transplant centers [75] Question: What opportunities exist to improve revenue capture through the billing organization? - The company is focused on enhancing billing processes and systems to improve cash collection, with a new leader in place to drive these initiatives [87][90] Question: Can you remind us of the objectives of the KOAR study? - The KOAR study is a prospective multicenter study evaluating the efficacy of AlloSure Kidney to detect rejection, which is crucial for payer acceptance and product adoption [96]

Core Insights - CareDx reported $86.58 million in revenue for Q4 2024, a 32% year-over-year increase, with an EPS of $0.18 compared to -$0.17 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $85.5 million by 1.26%, and the EPS surpassed the consensus estimate of $0.07 by 157.14% [1] Revenue Breakdown - Revenue from Patient and Digital Solutions was $11.39 million, exceeding the average estimate of $10.99 million by analysts, representing an 18.4% year-over-year increase [4] - Revenue from Testing Services reached $63.82 million, compared to the average estimate of $62.20 million, marking a 36.7% year-over-year increase [4] - Revenue from Products was $11.37 million, surpassing the average estimate of $10.83 million, reflecting a 23% year-over-year increase [4] Stock Performance - CareDx shares have returned -8.5% over the past month, while the Zacks S&P 500 composite has changed by -2.3% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]