Key Highlights

  • CareDx (NASDAQ:CDNA) traded at USD 62.24 on October 8, 2026, down 1.27%, with a Market Value near USD 3.22 billion. The stock sits about 14% below its 52-week high of USD 72.51, simple arithmetic.
  • The 24.23% trailing net Margin is mostly a one-time item. Second quarter Net Income of USD 110.6 million included a USD 113 million gain on selling the Lab Products business, which closed on June 30, 2026.
  • Second quarter Revenue rose 52% to USD 131.9 million, or about 28% for Testing Services excluding prior-period revenue. Adjusted EBITDA reached USD 24.8 million, a 19% margin, and 2026 revenue guidance rose to USD 490 million to USD 500 million.
  • CareDx (NASDAQ:CDNA) holds USD 373.6 million of cash, and the Naveris Acquisition completed on July 1, 2026 moves the company into oncology testing and cancer diagnostics.

Why Net Margin Looks So High

The screener shows Return on Equity of 29.49%, gross margin of 70.11%, an Operating Margin of negative 0.40% and net margin of 24.23%. The net margin ties to published trailing figures, with net income of USD 111.01 million on revenue of USD 458.09 million, up 34.4%. The July 30, 2026 release for CareDx (NASDAQ:CDNA) reports second quarter GAAP net income of USD 110.6 million against a loss of USD 8.6 million a year earlier, driven by the USD 113 million Lab Products gain. Income tax expense was USD 3.9 million, so a tax benefit did not explain the profit. The screener operating margin could not be reconciled to the reported figures. Excluding the gain, non-GAAP net income was USD 20.0 million.

The Operating Story

Second quarter revenue was USD 131.9 million, up 52%. Testing Services was USD 99.9 million, up 61%, with about 58,000 tests, up 17%. Average revenue per test was about USD 1,720, including USD 16 million of prior-period revenue, which flatters the growth rate. Excluding it, Testing Services grew about 28%. Adjusted EBITDA was USD 24.8 million versus USD 5.3 million, and free Cash Flow was USD 28.7 million. Guidance rose on July 30, 2026 to revenue of USD 490 million to USD 500 million from USD 447 million to USD 465 million, and adjusted EBITDA of USD 66 million to USD 78 million from USD 43 million to USD 57 million.

Deals, Coverage and Risks

CareDx sold Lab Products to Eurobio Scientific for about USD 172 million in cash and bought Naveris, maker of a blood test for HPV-related cancers, for about USD 162 million upfront plus up to USD 100 million tied to 2026 and 2027 revenue milestones. Medicare finalized coverage for AlloSure and AlloMap, and the local coverage decision for transplant molecular testing was finalized on July 16, 2026. Published analyst summaries show Canaccord starting coverage in early September and BTIG raising its target on about September 24, after which shares rose 9.1%. Reimbursement changes, competition and the cost of integrating Naveris remain risks. Third quarter results are estimated for November 3, 2026.

Where Things Stand

CareDx (NASDAQ:CDNA) earns its quality screen on 34% trailing growth, a 70% gross margin and raised guidance, but the 24% net margin is a one-time gain from the Lab Products sale, not recurring profit. Underlying adjusted EBITDA margin was 19% in the second quarter. Naveris adds oncology growth and integration risk, and prior-period revenue flattered the quarter. The estimated November 3 report is the next test.