Key Highlights

  • CDNA shares trading up 21.56% to $86.94 following third-quarter results.
  • Third-quarter Revenue rose 39% to $139.4 million, led by Testing Services up 65% to $119.2 million.
  • Adjusted EBITDA doubled to $30.5 million from $15.3 million a year earlier.
  • 2026 revenue guidance was raised to $520 million to $530 million from $490 million to $500 million.
  • Cash and equivalents climbed to $250.5 million from $65.4 million at the end of 2025.

CareDx Surges After Third-Quarter Revenue Jumps 39% and Guidance Moves Higher

CareDx (NASDAQ:CDNA) is trading up 21.56% today at $86.94, after the company reported third-quarter 2026 results that topped the prior-year quarter on every major line. Revenue rose 39% to $139.4 million from $100.1 million.

CareDx develops testing and digital tools for transplant patients and their care teams, including AlloSure Kidney, which looks for signs of graft injury. Testing Services revenue climbed 65% to $119.2 million, including $12 million from its Specialty Oncology business.

The quarter was the first to include a full period of Naveris after its July 1 closing, and it followed the June 30 sale of the Lab Products business. Both changes altered the revenue mix, with testing now the dominant source of sales.

Test Volume Up 51% and Profit Swings Sharply Higher

Testing Services volume reached about 75,900 tests, up 51% year over year. Testing Services revenue included $15 million from prior-period tests, compared with $6 million a year earlier, and growth excluding that item was about 58%.

Patient and Digital Solutions revenue rose 31% to $20.2 million, driven mainly by pharmacy services. Product revenue fell to zero from $12.5 million because the Lab Products Business was divested on June 30, 2026.

GAAP Net Income came in at $19.3 million, or $0.35 per diluted share, versus $1.7 million a year earlier. Non-GAAP net income was $38.4 million, or $0.70 per diluted share, compared with $0.28.

Naveris Deal and Lab Products Sale Reshape the Revenue Mix

CareDx acquired Naveris on July 1, 2026, for $160 million in cash plus up to $100 million in contingent consideration. Its NavDx test supports the Specialty Oncology revenue now in the results, and the company published an eight-center study of 332 patients on NavDx results after treatment.

The company also announced two independent Phase II NavDx studies on radiation de-escalation. It presented registry data suggesting AlloSure Kidney can help identify patients at higher risk of graft loss or declining kidney function.

Adjusted EBITDA of $30.5 million represented a Margin of about 22%, versus 15% a year earlier. Operating Cash Flow was $12.7 million and free cash flow was $11.1 million.

The company also noted continued adoption of the Epic Aura integration, more than 5,000 transplant patients registered on its new patient portal, and the migration of NavDx onto the CareDx billing platform. Management described the quarter as another period of solid execution.

Higher 2026 Targets and 2027 Launches Set the Next Milestones

CareDx raised 2026 revenue guidance to $520 million to $530 million from $490 million to $500 million, and lifted adjusted EBITDA guidance to $90 million to $100 million from $66 million to $78 million. Cash and equivalents ended September at $250.5 million, with marketable securities fully liquidated.

AlloHeme is planned for a commercial launch in the first quarter of 2027, and HistoMap Kidney is targeted for broader availability in 2027. Both are aiming for lab certification readiness by year-end, and investors will watch fourth-quarter results for evidence that the raised targets hold.