CareDx, Inc. Q3 FY2025 earnings call

• Strong third quarter results with total revenue $100.1M, up 21% y-o-y; adjusted EBITDA $15.3M, more than double Q3 last year. • Repurchased 2 million shares during the quarter. • Raised 2025 revenue guidance to $372M-$376M and adjusted EBITDA to $35M-$39M. • Launched HistoMap Kidney, a tissue-based molecular test. • Made progress on EPIC Aura integration with 8 projects in process, seeing 20% reduction in order turnaround time and 60% reduction in specimen holds. • Achieved significant improvements in revenue cycle management with over 200% improvement in total appeals volume, etc. • Patient and Digital Solutions grew 30% y-o-y. • Lab products launched AlloSeq Tx11 and Score 7.0, with AlloSeq TX and QType receiving IVDR certification in EU.

Testing Services: Revenue was $72.2 million for the third quarter, an increase of 19% year-over-year. Patient and Digital Solutions: Revenue was approximately $15.4 million, representing 30% growth compared to last year. Lab products: Revenue of $12.5 million was up 22% year-over-year. Total revenue of $100.1 million grew 21% year-over-year.

• Full year 2025 revenue expected $372M-$376M, full year non-GAAP gross margins ~70%. • Adjusted EBITDA guidance raised to $35M-$39M. • Fourth quarter revenue expected $101M-$105M, testing volume 52,000-54,000 tests. • Q4 revenue per test $1,400-$1,420 inclusive of $4M-$6M collections in excess of receivables. • Patient and Digital revenue expected $15M-$16M, lab products revenue $12M-$12.5M. • Q4 non-GAAP gross margins ~70%, adjusted EBITDA $10M-$14M.

• Potential impacts from the draft LCD policy for molecular testing, though no current observed impact on utilization. • Media attention affecting transplant center behavior and volume growth, particularly related to IOTA program adoption.

Q: Quantify impact of SHORE study on test adoption?

A: John said SHORE data had significant impact on HeartCare adoption since 2024, with multiple analyses of the data set in different contexts, and excited about future publications from SHORE registry.