CareDx revenue jumps 52% to $132M as testing services surge

Key Takeaways:

Q2 revenue rose 52% to $132M, driven by 61% testing-services growth
Full-year guidance raised to $490M-$500M midpoint, up from $447M-$465M
NavDx acquisition closed July 1, adding specialty oncology platform

CareDx Inc. reported second-quarter revenue of $132 million, up 52% from a year earlier, as the transplant diagnostics company expanded testing volumes and completed a strategic portfolio shift with the sale of its lab products business and acquisition of a specialty oncology platform.

"The transformation is largely complete," Chief Executive John Hanna said on the earnings call. The company now spans transplant monitoring, specialty oncology and cell therapy applications.

Testing-services revenue reached $100 million, a 61% increase from the prior year, with testing volume rising 17% to 58,000 tests. The figure included $15.6 million in out-of-period revenue. Patient and digital solutions contributed $19 million, up 50%, while lab products — divested on June 30 — added $13 million. Non-GAAP gross margin expanded 510 basis points to 74%, and adjusted EBITDA more than quadrupled to $25 million, or 19% of revenue, from $5 million a year earlier. GAAP net income was $111 million, or $2.07 per diluted share, reflecting a $113 million gain on the lab products sale. The company ended the quarter with $374 million in cash and no debt.

CareDx raised its full-year 2026 revenue outlook to a range of $490 million to $500 million, up from $447 million to $465 million previously. At the $495 million midpoint, that represents 30% year-over-year growth. Adjusted EBITDA guidance was lifted to $66 million to $78 million from $43 million to $57 million. The company also removed a previously embedded $7.5 million potential impact from the Medicare Local Coverage Determination after the policy was finalized, affirming coverage for surveillance molecular testing in kidney, heart and lung transplantation.

The company closed the Naveris acquisition for about $162 million on July 1, adding the NavDx circulating tumor HPV DNA test for head and neck cancer monitoring. CareDx expects specialty oncology volumes in the second half to increase about 30% from the prior year and sees average selling prices moving toward $1,000 to $1,100 over time. Pipeline programs remain on track, with AlloHeme — a blood-based relapse monitoring test for acute myeloid leukemia and myelodysplastic syndromes — expected to complete CLIA readiness by year-end for a 2027 commercial launch. HistoMap Kidney is slated for a clinical study this year with broader availability planned for 2027.

Shares rose 7.77% to $38.16 in regular trading and gained an additional 9.11% to $41.57 after hours, pushing past the prior 52-week high of $40.47. The guidance raise signals management expects transplant testing demand and the NavDx integration to drive continued momentum. Investors will watch third-quarter results for early evidence of specialty oncology revenue contribution and progress on AlloHeme's commercial readiness.

This article is for informational purposes only and does not constitute investment advice.