CDNA earnings analysis
What we found in CDNA's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
CareDx reported Q1 revenue of $117.7M, up 39% year‑over‑year, driven by testing services growth (testing revenue $91.4M, +48% YoY) and testing volume (~54,900, +17% YoY). The company swung to net income of $2.8M from a $10.4M loss a year ago and generated $4.3M of cash from operations. Liquidity remains strong with cash, cash equivalents and marketable securities of $198.1M and no debt, though operating expenses (R&D, sales & marketing, G&A) increased meaningfully.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong top‑line growth
- Total revenue increased 39% YoY to $117,700,000 (Q1 2026 vs $84,685,000 in Q1 2025), per the filing.
- Testing services scale
- Testing services revenue rose 48% YoY to $91,398,000 and testing services volume was ~54,900 (volume +17% YoY), representing 78% of total revenue.
- Profitability restored
- Net income was $2,809,000 in Q1 2026 compared to a net loss of $10,353,000 in Q1 2025.
- Positive operating cash flow
- Net cash provided by operating activities was $4,333,000 for the three months ended March 31, 2026.
- Strong liquidity; no debt
- As of March 31, 2026 the company had cash, cash equivalents and marketable securities of $198.1M and reported no debt outstanding.
- Lower litigation expense this quarter
- Litigation settlement expense declined to $600,000 in Q1 2026 from $5,360,000 in Q1 2025 (an 89% decrease).
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Rising operating expenses
- R&D increased to $21,416,000 (+16% YoY), sales & marketing rose to $30,373,000 (+32% YoY) and general & administrative rose to $30,484,000 (+34% YoY), pressuring margins.
- Medicare reimbursement exposure
- Medicare represented 35% of testing services revenue for Q1 2026, and PLA code repricing set a CLFS rate of approximately $2,753 (a $88 decrease for AlloSure Kidney), introducing reimbursement risk.
- Large accumulated deficit
- The company reported an accumulated deficit of $732,500,000 as of March 31, 2026.
- Foreign currency and FX losses
- Other (expense) income, net declined due to foreign exchange losses (other (expense) income, net was $(330,000) in Q1 2026 versus $295,000 in Q1 2025).
- Concentration of gross profit drivers
- Testing services composed 78% of total revenue ($91,398,000), increasing reliance on a single revenue category.
What they reported.
What the company itself reported, taken out of the document.
- Gross margin
- 71.42%
- Operating margin
- 1.02%
- Segment
- Testing services: $91,398,000 (78% of total revenue; +48% YoY; volume ~54,900, +17% YoY)
- Segment
- Patient and digital solutions: $15,956,000 (14% of total revenue; +33% YoY)
- Segment
- Product revenue (lab products): $10,346,000 (9% of total revenue; -4% YoY)
What they said about what is next.
The MD&A in the 10‑Q contains no numeric full‑year revenue or EPS guidance. Management states it believes existing cash and expected cash from operations will be sufficient for the next 12 months ("sufficient to meet our anticipated cash requirements for the next 12 months"). Separately, contemporaneous Form 8‑K (same reporting cycle) raised full‑year 2026 revenue guidance to $447M–$465M and adjusted EBITDA to $43M–$57M (see company 8‑K).
The filing reads better than the one before it.
What came before.
- 10-Q · November 4, 2025
- CareDx reported quarterly revenue of $100,055,000 (three months ended September 30, 2025) and swung to net income of $1,675,000 (diluted EPS $0.03) versus a net loss of $(10,637,000) in the year-ago quarter. Testing…
- 10-K · February 28, 2025
- CareDx positions itself as a focused transplant diagnostics and solutions company pursuing cross-selling and digital integration to drive profitable growth. The filing highlights commercial scale (more than 175,000…
- 10-Q · November 8, 2023
- CareDx reported Q3 revenue of $67.192M and a GAAP net loss of $23.485M (basic/diluted loss per share $0.43) for the three months ended September 30, 2023. Testing services revenue declined year-over-year while Product…
- 10-Q · November 3, 2022
- CareDx reported Q3 revenue of $79,359 (thousands), up from $75,589 in Q3 2021 (+$3,770; +5.0%), driven by strong growth in Patient & Digital Solutions. Profitability deteriorated — gross margin compressed and the…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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