CareDx Reports Financial Results for First Quarter 2026
CareDx Inc., a leading precision medicine company dedicated to improving outcomes for transplant patients, has reported strong financial results for the first quarter ended March 31, 2026. The company’s performance reflects significant momentum across its core business segments, including testing services and patient-focused digital solutions, alongside strategic initiatives aimed at streamlining operations and strengthening long-term growth.
The first quarter results underscore CareDx’s continued evolution as a data-driven healthcare organization, leveraging advanced diagnostics, analytics, and digital platforms to support clinicians, patients, and caregivers throughout the transplant journey. With robust revenue growth, improved profitability, and key business developments, the company has positioned itself for sustained expansion in 2026 and beyond.
Strong Financial Performance Driven by Core Business Growth
For the first quarter of 2026, CareDx Inc. reported total revenue of $118 million, representing a 39% increase compared to $85 million in the same period of 2025. This substantial growth was primarily driven by the company’s Testing Services division, which continues to serve as the cornerstone of its precision medicine strategy.
Testing services revenue reached $91 million, marking a 48% year-over-year increase. This growth was supported by a rise in testing volumes, which climbed approximately 17% to around 54,900 tests performed during the quarter. The increase reflects both expanding clinical adoption and continued execution across CareDx’s core transplant testing programs.
In addition to volume growth, the company reported an increase in average revenue per test, which reached approximately $1,660. This figure includes approximately $14 million in revenue recognized from prior periods, attributable to improved collections and reimbursement dynamics. The favorable revenue mix—driven by surveillance testing and increased “for-cause” testing—also contributed to higher per-test revenue.
Patient and digital solutions generated $16 million in revenue during the quarter, a 33% increase compared to $12 million in the first quarter of 2025. This growth was fueled by expanding adoption of CareDx’s pharmacy services and digital health offerings, as more transplant centers integrate these tools into patient care pathways.
Lab products revenue, however, declined slightly to $10 million, representing a 4% decrease year over year. This decline aligns with the company’s strategic decision to shift focus toward higher-margin, scalable business segments such as testing services and digital solutions.
Return to Profitability and Improved Operating Leverage
A key highlight of the quarter was CareDx’s return to profitability on a GAAP basis. The company reported GAAP net income of $3 million, compared to a net loss of $10 million in the first quarter of 2025. This improvement reflects both strong revenue growth and enhanced operational efficiency.
Basic and diluted earnings per share (EPS) on a GAAP basis were $0.05, compared to a loss of $0.19 per share in the prior-year period. On a non-GAAP basis, net income rose to $18 million, up from $5 million a year earlier, with diluted non-GAAP EPS increasing to $0.34 from $0.09.
Adjusted EBITDA—a key measure of operating performance—totaled $19 million, a significant increase from $5 million in the first quarter of 2025. This growth was driven by higher revenues, improved cost management, and disciplined execution across the organization.
Cash flow from operations was positive at $4 million, reflecting the company’s improved financial health and ability to generate cash from its core business activities. Additionally, CareDx achieved a record quarter for cash collections, highlighting the effectiveness of its revenue cycle management and focus on high-margin growth areas.
Strategic Business Developments and Portfolio Optimization
Beyond financial performance, CareDx Inc. made several strategic moves during the quarter to enhance its operational focus and long-term growth potential.
One of the most notable developments was the announcement of a definitive agreement to divest its Lab Products business to Eurobio Scientific for $170 million in cash. This transaction is expected to simplify CareDx’s operating model and allow the company to concentrate resources on its higher-growth, higher-margin segments.
The company also continued to advance its clinical pipeline, with new data from its AlloHeme program presented at the TANDEM Annual Conference. AlloHeme represents a key pipeline asset with the potential to expand CareDx’s footprint in transplant diagnostics and monitoring.
In parallel, CareDx launched VANTx™, an artificial intelligence-powered, cloud-native clinical data and analytics platform. Designed to transform complex transplant data into actionable insights, VANTx aims to support clinical research, enable real-world evidence generation, and enhance decision-making for healthcare providers.
Expanding Digital Integration and Clinical Evidence Leadership
CareDx continues to invest in digital infrastructure and interoperability, particularly through its integration with Epic Aura. During the quarter, nine transplant centers were live with Epic Aura integrations, with an additional 16 integrations in progress. These integrations are expected to streamline data exchange, improve clinical workflows, and enhance patient care.
The company also demonstrated its leadership in transplantation research by presenting more than 50 abstracts at the International Society for Heart and Lung Transplantation Annual Meeting. These presentations highlight the breadth and depth of CareDx’s clinical evidence, reinforcing its position as a key contributor to advancements in transplant medicine.
Leadership Perspective on Growth and Strategy
John W. Hanna, President and CEO of CareDx Inc., emphasized the company’s strong performance and strategic progress. He noted that the quarter’s record growth was driven by continued momentum in precision medicine testing services and patient and digital solutions.
Hanna also highlighted the importance of recent strategic actions, including the advancement of the AlloHeme pipeline and the planned divestiture of the Lab Products business. These initiatives are aimed at simplifying the company’s structure, sharpening its strategic focus, and expanding adjusted EBITDA margins over time.
Updated Full-Year 2026 Guidance
Reflecting its strong first-quarter performance and positive outlook, CareDx Inc. has raised its full-year 2026 financial guidance. The company now expects total revenue to be in the range of $447 million to $465 million, up from its previous guidance of $420 million to $444 million.
In addition, CareDx projects full-year adjusted EBITDA to range between $43 million and $57 million, indicating continued improvement in profitability and operational efficiency.
Capital Allocation and Shareholder Returns
In April 2026, the company’s Board of Directors authorized a share repurchase program of up to $100 million in common stock over a period of up to 24 months. This move reflects confidence in the company’s financial position and long-term growth prospects, while also providing a mechanism to return value to shareholders.
Positioning for the Future of Transplant Care
Overall, the first quarter of 2026 marks a period of strong execution and strategic progress for CareDx Inc.. By focusing on high-growth segments, investing in digital innovation, and advancing its clinical pipeline, the company is well-positioned to lead the next generation of transplant care.
Its integrated approach—combining precision diagnostics, digital health solutions, and data analytics—aligns with broader trends in healthcare toward personalized, data-driven medicine. As transplant medicine continues to evolve, CareDx’s comprehensive platform has the potential to improve patient outcomes, enhance clinical decision-making, and drive more efficient healthcare delivery.
With a solid financial foundation, a clear strategic direction, and a growing portfolio of innovative solutions, CareDx Inc. is poised for continued success in 2026 and beyond.
About CareDx
CareDx is a precision medicine company dedicated to improving outcomes for transplant patients and advancing organ health. The Company’s integrated solutions include non invasive molecular testing for heart, kidney, and lung transplants; laboratory products; digital health technologies; and patient solutions that support care before and after transplant. CareDx is the leading provider of genomics based information for transplant patients.
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