CSTL earnings analysis
What we found in CSTL'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
Castle Biosciences reported a significant decline in Q1 2026 revenues, down 4.9% year-over-year to $83.7 million, with EPS reported at -$0.49. Despite this, management raised 2026 revenue guidance, reflecting confidence in product test volume growth, particularly in dermatologic and non-dermatologic segments, although cash burn has increased significantly compared to the prior year.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Q1 2026 Revenue Decline
- Revenue decreased to $83.7M from $87.988M in Q1 2025, a drop of 4.9%.
- EPS Improvement
- EPS improved to -$0.49 from -$0.90 in Q1 2025.
- Gross Margin Recovery
- Gross margin increased to 72.8%, up from 49.2% year-over-year.
- Non-Dermatologic Revenue Growth
- Non-Dermatologic revenues increased by $17.5M due to a 58% increase in TissueCypher test report volumes.
- Guidance Raised
- 2026 revenue guidance increased to $345-355M from the previous range of $340-350M.
- Test Report Volume Growth
- Total test report volume rose by 10% from the prior year, driven particularly by the DecisionDx-Melanoma test.
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.
- Increased Cash Burn
- Net cash used in operating activities surged to $22.1M in Q1 2026 compared to $6.0M in Q1 2025.
- Loss of Medicare Coverage Impact
- Significant decrease in dermatologic test revenues attributed to the loss of Medicare coverage for DecisionDx-SCC.
- High Operating Expenses
- Operating expenses increased to $102.1M from $115.9M, primarily driven by higher costs in sales, marketing, and R&D.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.49
- Gross margin
- 72.8%
- Segment
- Dermatologic
- Segment
- Non-Dermatologic
What they said about what is next.
Revenue guidance raised for 2026 to $345M-$355M.
The filing reads worse than the one before it.
What came before.
- 10-K · February 26, 2026
- Castle Biosciences reported record net revenues of $344.229 million in 2025 and delivered 105,053 test reports for the year, while continuing to expand its product portfolio (including a limited AdvanceAD‑Tx launch in…
- 10-Q · August 4, 2025
- Castle Biosciences reported Q2 net revenues of $86,188 and diluted EPS of $0.15, with an operating loss of $(4,251) driven by higher operating expenses and amortization. Liquidity remains sizable but down versus…
- 10-K · February 27, 2025
- Castle Biosciences continued to scale commercial volume and revenue in 2024, reporting net revenues of $332.069 million (as reported in the filing). The company emphasizes a dermatologic cancer‑anchored strategy…
- 10-Q · November 4, 2024
- Castle Biosciences reported Q3 net revenues of $85,782,000 (3 months ended September 30, 2024), up $24,289,000 (39.5%) year-over-year from $61,493,000 and roughly flat sequentially versus the prior quarter. The company…
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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