Castle Biosciences Soars 22.52% on Strong Q2 Earnings

Castle Biosciences' stock surged 22.52% in pre-market trading on August 5, 2025, driven by strong financial performance and positive market sentiment.

Castle Biosciences reported robust financial results for the second quarter of 2025, with revenues reaching $86 million. This performance was bolstered by a significant increase in test report volumes for its core products, DecisionDx-Melanoma and TissueCypher, which saw a 33% year-over-year growth.

The company's management raised its full-year revenue guidance for 2025 to a range of $310 million to $320 million, citing stronger-than-expected performance. This adjustment reflects the company's confidence in its continued growth and market position.

Castle Biosciences' earnings per share for the quarter were $0.15, surpassing analyst estimates. This marks the third time in the last four quarters that the company has exceeded consensus EPS estimates, demonstrating consistent financial performance.

Despite a slight year-over-year decrease in revenue, Castle Biosciences capitalized on strong growth in its core products, highlighting its ability to adapt and thrive in a competitive market. The company's gross margin for the quarter was 77.3%, with an adjusted gross margin of 79.5%, indicating strong operational efficiency.