CareDx 2025 Q2 Earnings EPS Beats Expectations, Net Loss Widens

Generated by AI AgentAinvest Earnings Report Digest
Thursday, Aug 7, 2025 2:15 pm ET2min read
Aime RobotAime Summary

- CareDx reported Q2 2025 non-GAAP EPS of $0.10, exceeding estimates, but net loss widened by 85.3% to $8.57M.

- Full-year revenue guidance narrowed to $367–$373M, with adjusted EBITDA outlook maintained at $29–$33M despite 6.1% Q2 revenue decline.

- Stock fell 29% month-to-date, with post-earnings strategies underperforming benchmarks by 35.14%.

- CEO highlighted 13% testing services growth and $50M share repurchase, emphasizing financial discipline amid 13-year consecutive Q2 losses.

CareDx (CDNA) reported its fiscal 2025 Q2 earnings on August 7, 2025. The company delivered non-GAAP earnings per share of $0.10, exceeding estimates, while GAAP net income declined. Management narrowed full-year 2025 revenue guidance to $367–$373 million, maintaining its adjusted EBITDA outlook.

CareDx reported total revenue of $86.68 million in Q2 2025, a 6.1% decline from $92.27 million in the same period a year ago. Testing services revenue stood at $62.03 million, while product revenue totaled $11.83 million. The patient and digital solutions segment generated $12.81 million in revenue, reflecting a strong contribution from digital offerings despite the overall decline in top-line revenue.

CareDx’s losses deepened in Q2 2025, with a net loss of $8.57 million, or $0.16 per share, compared to a $4.62 million, or $0.09 per share, loss in Q2 2024. This marked an 85.3% increase in the net loss and a 77.8% wider loss per share. The company has now recorded losses for 13 consecutive years in the same quarter, highlighting ongoing financial challenges.

The stock price of rose 2.10% during the latest trading day and increased 1.87% during the most recent full trading week, but declined 29.00% month-to-date.

A post-earnings strategy of buying when it beat revenue and holding for 30 days yielded a -35.14% return—significantly underperforming the benchmark return of 84.77%. The strategy exhibited a maximum drawdown of 0.00% and a Sharpe ratio of -0.11, indicating poor risk-adjusted performance and lack of positive returns.

John W. Hanna, CareDx President and CEO, highlighted a 13% year-over-year increase in testing services volume, driven by nearly 20% growth in AlloSure kidney testing. He emphasized improved cash collections and financial discipline that contributed to an adjusted EBITDA gain of $9.1 million, up from a prior year loss. The CEO also underscored the company’s leadership in transplant care, citing data from the World Transplant Congress and the launch of AlloSure Plus as key differentiators. His tone reflected confidence in the company’s evidence-based approach and product innovation.

CareDx narrowed its full-year 2025 revenue guidance to $367–$373 million from a prior range of $365–$375 million. The company expects adjusted EBITDA to fall within $29–$33 million for the year. The updated revenue guidance reflects ongoing business performance and operational adjustments, including a $3.8 million write-off of aged receivables in the quarter.

On the same day, CareDx also announced that its non-GAAP earnings per share for Q2 2025 were $0.10, beating the expected loss. Non-GAAP adjusted revenue rose 14% to $90.5 million, slightly missing non-GAAP expectations but still reflecting strong testing services volume growth. Management reported $186 million in cash, cash equivalents, and marketable securities with no debt. Additionally, the company completed a $50 million share repurchase during the quarter, further signaling financial discipline. No dividend was declared, and management did not mention a quarterly dividend policy.

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