Caris Life Sciences, Inc. Q4 FY2025 earnings call

• Mission: Keras was founded to make precision medicine a reality. - Platform: Molecular platform scaled, with over 1 million profiled cases. - Q4 Performance: Strong revenue growth, 125% year-over-year, driven by clinical profiling. Gross margins improved to 75% GAAP. Positive GAAP net income, adjusted EBITDA, and free cash flow. - Early Detection: Expect to launch CARIS Detect in Q2 2026. - Commercial Business: Bobby Hill joined as CCO, investing in commercial channel expansion, sales force, and medical education. - Product Pipeline: Achieve One interim results for CARES Detect, progress on CARES ChromaSeq, CARIS MyClarity, Caris MRD Tumor Naive, KRAS-MRD tumor-informed, and new AI signatures.

Total revenues increased 125% year-over-year to $293 million in Q4 2025. Molecular profiling services revenues were $282 million, up 199% year-over-year. Pharma R&D services revenues were $10.8 million. For the full year, total revenue increased 97%. Molecular profiling revenues were $766.7 million, driven by 22% year-over-year growth in clinical case volumes and 79% increase in average sales price. Tissue ASP was expected to be around $4,000 in Q1 and reach ~$4,200 for the full year. Blood ASP was expected to be in the range of $2,400 to $2,500. Volume growth was guided to 20%, with lower teens growth for tissue and high 50s to lower 60s growth for blood.

• Total revenue for existing solutions in 2026 expected to be $1.0 billion to $1.02 billion, ~23%-26% growth vs 2025. - Therapy selection volume expected to grow ~20% year-over-year. - Molecular profiling expected to grow ~21%-22% in 2026, excluding prior year additional revenue. - Pharma and research revenue expected $75 million to $85 million for 2026. - GAAP operating expenses expected $590 million to $595 million, ~19%-20% increase. - Free cash flow and adjusted EBITDA expected positive. - CapEx expected ~$60 million in 2026 for early detection launch. - Q1 total revenue growth expected 70%-74%. - Volume growth: ~20% total, lower teens for tissue, high 50s-lower 60s for blood.

Q: On volume outlook, breakdown of tissue and blood growth and Q1 revenue pacing.

A: Total volume growth 20%, lower teens for tissue, high 50s-lower 60s for blood. Q1 total revenue growth 70%-74%.

Q: On commercial team, size of Salesforce, decision to bring in Bobby, impact of added headcount.

A: Salesforce ~250, increasing ~20-25% to ~300. Bobby joined for reimbursement and commercial role. Added headcount impact not baked into 20% volume guide yet.

Q: On NSAID interim data, definition of populations and pharma R&D outlook.

A: Symptomatic and undiagnosed populations defined. Pharma R&D spending environment favorable, Caris could be beneficiary.

Q: On ASP assumptions, conservatism in tissue ASP guide and true-ups.

A: 4,200 tissue ASP guide with headroom, true-ups possible.

Q: On OPEX step-up, rationale and spend areas.

A: OPEX step-up ~30% in sales and marketing, ~30% in R&D. Spend for existing and new tests, sales reps take ~6 months to be productive.

Q: On CapEx for MSED, allocation and capital deployment.

A: CapEx ~$60 million, evenly throughout year, related to testing equipment and capacity. Prioritizing sales, marketing, R&D, strategic M&A assessment.

Q: On volume pacing and MSED Salesforce sizing.

A: Volume pacing mid-teens for tissue, high 50s for blood. MSED Salesforce to start small, measured approach.

Q: On CARES Detect data and MRD portfolio, PPV and MRD timeline.

A: PPV not calculable due to case control study. MRD portfolio catalysts dependent on data accrual.