Key Highlights

  • Caris Life Sciences (NASDAQ:CAI) was quoted at USD 28.53 premarket on November 5, 2026, down 14.12%, after third quarter results on November 4, 2026.
  • Third quarter Revenue was USD 275.4 million, up 27% from USD 216.8 million, with about 61,500 clinical cases, up about 21%.
  • Full-year 2026 revenue guidance was raised to USD 1.04 billion to USD 1.05 billion, up 28% to 29%.
  • Adjusted EBITDA fell to USD 44.4 million from USD 51.2 million, and free Cash Flow was negative USD 39.7 million in the quarter.

Growth Beats Meet a Margin and Cash Flow Reset

Caris Life Sciences, Inc. (NASDAQ:CAI) reported third quarter 2026 results on November 4, 2026, and the stock was quoted at USD 28.53 in premarket trading on November 5, 2026, down 14.12%, per the premarket quote. Total revenue was USD 275.4 million, up 27% from USD 216.8 million, led by molecular profiling revenue of USD 262.7 million, also up 27%. Net Income was USD 15.3 million, or USD 0.05 per basic and diluted share, compared with USD 0.09 basic and USD 0.08 diluted in the third quarter of 2025. Founder, Chairman and Chief Executive Officer David Halbert called it another record quarter, citing approximately 61,500 clinical cases, up 21% year over year.

Profitability Trends Behind the Headline

The pressure on the shares likely stems from profitability and cash rather than top-line growth. Gross margin was 66%, compared with 68% a year earlier, and adjusted EBITDA was USD 44.4 million against USD 51.2 million. Operating Cash Flow was negative USD 22.2 million and free cash flow negative USD 39.7 million. For the nine months, revenue was USD 755.2 million versus USD 519.1 million, and adjusted EBITDA was USD 126.3 million versus USD 31.7 million, so the longer trend remains strongly positive. Caris reported more than 358,000 total oncology tests in the quarter and more than 1.2 million total profiles through September 30, 2026. Whole transcriptome profiles exceeded 849,000 and whole exome profiles exceeded 796,000. Management raised full-year revenue guidance to USD 1.04 billion to USD 1.05 billion and reaffirmed clinical therapy selection Volume growth of about 20%.

Balance Sheet, Expectations and Watch Points

Cash, cash equivalents and restricted cash were USD 665.3 million at September 30, 2026, plus USD 102.1 million of short-term marketable securities, against long-term indebtedness of USD 393.2 million, net. A share repurchase program of up to USD 100.0 million had about USD 72.1 million remaining. Negative free cash flow in a quarter can reflect Working Capital timing, because laboratories bill payers after testing and collect later, but investors will want to see it reverse. Falling margin may reflect mix or the cost of scaling sequencing. Comparison with analyst consensus was not verified here, so the size of any miss or beat is unconfirmed. Next steps to watch are fourth quarter results, the pace of clinical case growth against the 20% volume target, gross margin direction and whether cash conversion improves.

Where Things Stand

Caris Life Sciences (NASDAQ:CAI) is lower premarket because investors are focusing on a slip in gross margin, lower adjusted EBITDA year over year and negative free cash flow, even though revenue grew 27% and guidance was raised. That makes the decline a reaction to quality of growth rather than to a Demand problem, based on the filed numbers. The quoted 14.12% fall is a premarket figure and can change after the open. The next catalyst is the fourth quarter report, where margin and cash conversion will be the main tests.