CareDx reported third‑quarter 2025 revenue of $100.1 million, a 21% year‑over‑year increase that reflects a 19% rise in testing‑services revenue to $72.2 million and double‑digit growth in its patient‑and‑digital‑solutions ($15.4 million, up 30%) and product ($12.5 million, up 22%) segments. The revenue jump is driven by a mix shift toward higher‑margin digital solutions and a continued expansion of the transplant‑diagnostics portfolio, while the testing‑services segment benefited from a modest increase in test volumes and pricing power in the U.S. market.
The company’s adjusted EBITDA climbed to $15.3 million, up 122% from $6.9 million in Q3 2024, and the non‑GAAP gross margin rose to 70.9% from 69% the prior year. CareDx’s GAAP earnings per share were $0.03, and non‑GAAP EPS reached $0.28, both beating the consensus estimate of $0.13 by $0.10 and $0.15 respectively—an absolute beat of $0.10 (GAAP) and $0.15 (non‑GAAP) and a 77% and 115% surprise. The earnings beat is largely attributable to disciplined cost management, improved revenue‑cycle efficiency, and a favorable product mix that increased average revenue per test.
Management raised its full‑year 2025 guidance, projecting revenue of $372 million to $376 million and adjusted EBITDA of $35 million to $39 million—up from the previous $367 million to $373 million and $29 million to $33 million ranges. The upward revision signals confidence that the demand acceleration seen in Q3 will continue, and that the company’s investments in AI‑driven revenue‑cycle management and product innovation will sustain margin expansion.
CEO John W. Hanna said the quarter “represents a record‑setting performance that underscores our market leadership and our commitment to innovation and patient care.” CFO Nathan Smith highlighted “exceptional” cash collections, reaching 124% of testing‑services revenue, and noted significant improvements in revenue‑cycle management through automation and AI. The company also cautioned that kidney‑transplant volumes grew slower than expected, a headwind that could temper growth in the near term.
Despite the strong earnings beat and guidance lift, CareDx’s shares fell 1.69% in aftermarket trading, closing at $14.77. The dip reflects investor caution about unspecified “factors beyond the headline numbers,” suggesting that while the company’s fundamentals are solid, market participants are weighing potential challenges such as competitive pressures and the slower kidney‑transplant volume trend.
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