CareDx Inc. reported preliminary fourth‑quarter 2025 revenue of $108 million, a 25% increase from $86.6 million in Q4 2024, and a 70.9% gross margin that represents a 1.2‑percentage‑point lift over the prior quarter. The company’s earnings per share beat consensus estimates by $0.05, driven by disciplined cost management and a favorable mix of high‑margin testing services and digital solutions.
The growth was led by a 19% rise in testing services revenue to $63.8 million, the largest contributor to the top‑line. Patient and digital solutions grew 12% to $22.5 million, while product revenue increased 8% to $11.7 million. The company’s integrated testing, digital, and lab product segments all posted record revenue, underscoring the effectiveness of its solutions‑selling strategy.
CareDx’s revenue‑cycle management program accelerated collections, reducing days sales outstanding by 12 days from the prior quarter. The program’s success has lifted average selling price and improved cash flow, reinforcing the company’s ability to fund future growth initiatives without additional debt.
Management raised its full‑year 2025 revenue guidance to $380 million from $374 million, reflecting stronger demand and the impact of the RCM program. The company also reiterated its guidance for the first quarter of 2026, maintaining the same revenue and margin targets set in November 2025. The guidance update signals confidence in sustaining momentum while preparing for the next fiscal year.
CEO John W. Hanna said, “We had another quarter of strong testing services volume growth and record revenue across all segments of our business.” He added that the company’s “solutions selling strategy is working” and that it will “build on this commercial momentum and advance our Transplant+ innovation pipeline in 2026.”
Analysts had expected Q4 revenue of $102.58 million and full‑year revenue of $374 million. CareDx’s results exceeded both estimates, with a revenue beat of $5.42 million and a full‑year beat of $6 million. The company’s margin expansion and RCM gains were highlighted as key drivers of the positive earnings surprise.
The company’s focus on the Transplant+ pipeline, including the ImmuneScape program in partnership with 10x Genomics, positions it to capture new market share in transplant diagnostics. The continued investment in digital health and product innovation signals a long‑term strategy to broaden its addressable market and reinforce its competitive advantage in the precision‑medicine space.
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