Highlights

  • Second quarter revenue rose 52% to $131.9 million, led by 61% growth in testing services revenue.
  • Net income was $110.6 million, or $2.07 per diluted share, including a $113.0 million gain on the lab products sale.
  • CareDx acquired Naveris on July 1 for $161.8 million in cash, with up to $100 million more contingent on revenue.
  • Cash stood at $373.6 million with no debt; no shares were repurchased under the $100 million April program.

CareDx (NASDAQ:CDNA) shares were trading near their 52-week high at USD 71.16 on October 21, 2026, up 2.83%. The precision medicine company authorized a $100 million repurchase program in April, sold its lab products business on June 30, bought Naveris on July 1, and filed its second quarter 2026 report on July 30.

Based in Brisbane, California, CareDx is a Delaware corporation that calls itself a precision medicine company focused on transplant, specialty oncology and cell therapy. Its post-transplant tests include AlloSure Kidney, AlloMap Heart, AlloSure Heart, HeartCare and AlloSure Lung, and its oncology test NavDx detects and monitors HPV-mediated cancers. It also sells clinical practice software, data tools and patient support services, including a transplant pharmacy. Its fiscal year ends December 31.

Revenue Up 52%, With Prior-Period Collections in the Mix

Revenue for the three months ended June 30, 2026 was $131.9 million, versus $86.7 million a year earlier. Testing services revenue rose 61% to $99.9 million on volume of about 58,000 tests, up 17%. Patient and digital solutions revenue rose 50% to $19.2 million, and product revenue rose 8% to $12.8 million. The company said $18.0 million of the testing increase reflected higher net collections on tests performed in earlier periods, partly offset by a $2.4 million reduction for payer refund reserves. Average revenue per test was about $1,720, including $16 million of prior period revenue.

GAAP net income was $110.6 million, or $2.07 per diluted share, compared with a net loss of $8.6 million, or $0.16 per share. Income from operations of $113.2 million included the $113.0 million gain on the sale. Costs rose across the board: general and administrative expenses climbed 48% to $40.9 million, sales and marketing 38% to $33.4 million and research and development 33% to $22.4 million. Over six months, revenue was $249.6 million, up 46%, and net income was $113.4 million, or $2.13 per diluted share. Medicare accounted for about 30% of second quarter revenue.

Lab Products Sale, Naveris and the Balance Sheet

CareDx agreed on April 15 to sell its kitted laboratory products business to Eurobio Scientific, and the deal closed on June 30 for cash proceeds of about $171.7 million, subject to customary adjustments. On July 1, it completed the acquisition of Naveris, a deal aimed at strengthening its transplant, oncology and cell therapy focus. It paid $161.8 million in cash, of which $5.0 million went to escrow, and Naveris holders can earn up to $100.0 million more if revenue milestones for 2026 and 2027 are met. The initial accounting for the acquisition is not yet complete.

Cash and cash equivalents were $373.6 million at June 30, with no debt outstanding, and operating cash flow for six months was $34.9 million. The accumulated deficit was $505.4 million. The board authorized a $100 million repurchase program on April 24 with no purchases made, and CareDx bought back 0.6 million shares for $12.2 million under its earlier $50 million program, which is now exhausted. It also filed an automatic shelf registration on April 28.

Legal Matters and Outlook

Natera has appealed the February 2025 ruling that invalidated its asserted patents, which had overturned a $96.3 million jury award. The company notes it could face a loss of up to that amount plus interest if Natera prevails on appeal. A qui tam case related to a Department of Justice civil investigative demand was voluntarily dismissed on April 23, 2026, and a derivative action settlement of $0.6 million received final court approval on July 3.

The 10-Q contains no revenue or earnings guidance. CareDx believes existing cash and expected operating cash will cover its needs for the next 12 months, and it expects to keep investing in research and development for new services and products. Future payments to Naveris holders depend on revenue milestones for the fiscal years ending December 31, 2026 and 2027. These are company expectations, not guarantees.