Key Highlights

  • Total Revenue rose 39% to $139.4 million from $100.1 million in the third quarter of 2025.
  • Testing services revenue increased 65% to $119.2 million, with Volume of about 75,900 tests, up 51%.
  • Income from operations was $8.1 million, compared with a loss of $0.2 million a year earlier.
  • Net income was $19.3 million, including an $8.6 million income tax benefit, versus $1.7 million.
  • Cash and cash equivalents totaled $250.5 million with no Debt at September 30, 2026.

A transplant diagnostics Business adds oncology

CareDx (NASDAQ:CDNA) describes itself as a precision medicine company focused on transplant, specialty oncology and cell therapy. Its testing portfolio includes AlloSure for kidney, heart and lung transplant patients, AlloMap Heart, and NavDx, a blood-based test that monitors HPV-mediated cancers, including head, neck and anal cancers.

The company filed its Quarterly Report for the period ended September 30, 2026 on October 29, 2026. Its post-transplant tests and NavDx together made up 86% of revenue in the quarter, against 72% a year earlier, and testing volume was about 75,900, up 51%.

Testing services revenue jumps 65%

Testing services revenue rose $47.0 million to $119.2 million. About $12.5 million came from NavDx tests performed after the Naveris transaction, and volume excluding NavDx grew 20.8%.

Revenue growth outpaced volume growth partly because $17.3 million of revenue was recognized for tests performed in prior periods, compared with $5.9 million a year earlier. That was partly offset by a $2.6 million reduction for refund reserves payable to third-party payers.

Patient and digital solutions revenue grew 31% to $20.2 million on higher pharmacy sales and a larger Ottr software customer base. Product revenue was zero, against $12.5 million a year ago, after the lab products business was sold on June 30, 2026.

Spending outpaces revenue, but Operating Income turns positive

Total operating expenses rose 31% to $131.3 million. Cost of testing services increased 68% to $24.7 million, including $2.7 million of acquired intangible amortization. Research and Development rose 27% to $21.3 million, and sales and Marketing rose 29% to $31.7 million, mostly personnel costs.

General and administrative expenses climbed 34% to $38.0 million, with higher personnel, stock-based compensation, legal and consulting costs. Income from operations was $8.1 million versus a $0.2 million loss.

The tax benefit shapes the bottom line

Income before income taxes was $10.7 million, so the $19.3 million of Net Income was lifted by an $8.6 million income tax benefit. The benefit mainly reflected a $9.8 million deferred tax benefit from a valuation allowance release tied to the Naveris transaction, partly offset by about $1.2 million of federal and state tax expense.

For the nine months, revenue was $389.0 million, up 43%, and net income was $132.7 million, which included a $113.0 million gain on the sale of the lab products business.

Deals, cash and what to watch

CareDx completed the Naveris Acquisition on July 1, 2026 for total consideration of $203.3 million, including $159.3 million in cash and contingent consideration valued at $44.0 million. Former Naveris holders can earn up to $100.0 million more on revenue milestones for 2026 and 2027.

The company received $171.7 million in cash for its lab products business, subject to adjustments, and held $250.5 million in cash with no debt. Operating Cash Flow was $47.7 million for nine months, and $100.0 million remains under an April 2026 repurchase program, with no repurchases in the quarter.