Caris Life Sciences, Inc. Q1 FY2026 earnings call

• Platform expansion: Supports over 6,100 ordering oncologists with ~70% of orders through EHR and portal channels. Data set surpassed 1.07 million profile cases. - Product launches: CARES ChromaSeq (therapy selection assay for hematological cancers launched April 1st) and CARES MiCLARITY (prognostic test for breast cancer). - Commercial progress: Completed realignment of sales teams, expanded territory structure from 82 to 146 territories. Activations in February and March grew ~20% year over year. - Product pipeline: ACHIEVE-1 data for CARES Detect showed strong early detection results. Progress on CARES ChromaSeq, CARES MiCLARITY, MRD tumor-naive and tumor-informed products. - Financials: Positive adjusted EBITDA of $26 million and positive free cash flow of $22.5 million for the quarter. Cash on hand grew to slightly above $825 million.

Total revenues increased 79% year-over-year to $216 million. Molecular profiling services revenues increased to $211 million in the first quarter, representing an increase of 85% year-over-year. Clinical profiling had 52,800 cases completed in Q1, up 15% year over year. CARIS assured volume grew 58% year-over-year. Molecular profiling services gross margin was 65% in Q1, compared with 47% in Q1 of last year. Tissue growth is expected in the low teens and blood growth in the high 50s to low 60s for the full year.

• Reaffirming guide from February. - Volume: Confident of full-year volume framework with tissue growth in low teens and blood growth in high 50s to low 60s. Strong activation trend exiting Q1 supports guide. - Pipeline: Launched Karis Chromacy and MyClarity. Will evaluate contribution from launches and sales strategies after Q2. - Revenue: Reconfirming guidance today and will evaluate after Q2 with new launches and execution.

Q: Talk about the impact that the sales realignment might have had on tissue volumes this quarter and confidence in achieving 20% volume growth target.

A: Any time when realigning a sales organization, there was a slower start initially. But saw improvement in tissue volume each month after and trending to achieve 20% year-over-year by end of Q4.

Q: Did weather hold back clinical volumes and traction in blood testing.

A: Weather didn't hold back. Blood testing: Liquid product specialist team saw 135% growth quarter over quarter, plan to double team size in Q2.

Q: Big picture on reimbursement and differentiation.

A: Codes are CDLT not ADLT, submitted PAMA data on May 1st, don't expect downward adjustments.

Q: 2Q volumes for tissue and blood, pharma R&D revenues, MSAT test uptake.

A: Expect 10% sequential improvement from Q1 to Q2 in volume, tissue cases expected to be ~47.5 thousand, blood approaching over 10 thousand. Revenue expectation for Q2 is ~32% growth in overall total revenue.

Q: Hiring progress and MRD priority.

A: Progressing on track to hit 300 sales reps, MRD is next priority.

Q: Pipeline question on ChromoSeq unmet need and breast cancer in early detection.

A: ChromoSeq addresses unmet need in myeloid by comprehensive approach. Breast cancer is common, performance superior to mammography.

Q: Quarterly run rate, M&A and capital allocation, pharma R&D business.

A: Quarterly run rate split normal, M&A flexible with new debt facility. Pharma R&D business has natural cadence with Q1 lower, revenue delta based on existing contracts.

Q: ChromoSeq rate, addressable market, ASCO data presentation.

A: ChromoSeq rate is $3,228, addressable market ~50,000 patients. ASCO data embargoed until conference.