CareDx, Inc.
For the period ended Jun 30, 2026. Filed Jul 30, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 30, 2026
CDNA$78.56+2.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-28.
0001217234-26-000033
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-30.
0001217234-26-000046
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 93 previous paragraphs and 132 current paragraphs.
50 unchanged; 39 reworded; 35 added; 4 removed; 0 previous and 8 current paragraphs rearranged.
Tables are not compared: 2 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (35)
Current report
We are a precision medicine company dedicated to advancing care in transplant, specialty oncology, and cell therapy. We deliver solutions designed to empower clinicians and improve patient outcomes. Our portfolio spans non-invasive molecular testing, clinical practice management software, AI-powered data and analytics tools, and patient support solutions designed to connect diagnostic insight, clinical workflow, and patient engagement to help improve patient outcomes.
Current report
• Closed the sale of the Lab Products business on June 30, recognizing a $113 million gain on sale included in operating income
Current report
On June 30, 2026, we completed the sale of our lab products business, which included our kitted laboratory products, to Eurobio (see Note 1 to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q).
Current report
Research and development expenses increased by $5.5 million, or 33%, for the three months ended June 30, 2026, compared to the same period in 2025. The increase was primarily attributable to increases of $4.0 million in personnel-related costs, $0.8 million in consulting and licensing expense, $0.5 million in partnership milestone expense and $0.2 million in software-related expenses.
Current report
Sales and marketing expenses increased by $9.2 million, or 38%, for the three months ended June 30, 2026, compared to the same period in 2025. The increase was primarily attributable to increases of $8.7 million in personnel-related costs, $1.0 million in marketing expenses and $0.1 million in travel expenses, partially offset by a decrease of $0.6 million in stock-based compensation expense.
Current report
Gain on sale of lab products business
Current report
Gain on sale of lab products business of $113.0 million in the current period reflects the gain on the sale of our lab products business. For details over the aforementioned sale, see Note 1, Organization and Description of Business, to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q under the caption “Sale of lab products business,” which is incorporated herein by reference.
Current report
Income tax (expense) benefit
Current report
Income tax expense increased by $4.0 million for the three months ended June 30, 2026, compared to the same period in 2025. The increase was primarily attributable to a current tax expense of $3.8 million recognized on the taxable gain from the sale of our lab products business, which was completed on June 30, 2026. See Note 1 and Note 11 to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further information.
Current report
Results of Operations
Current report
Comparison of the Six Months Ended June 30, 2026 and 2025
Current report
Testing services revenue
Current report
Product revenue
Current report
Product revenue increased by $0.5 million, or 2%, for the six months ended June 30, 2026, compared to the same period in 2025. The increase was primarily due to higher sales of our commercial NGS-based kitted solutions.
Current report
Patient and digital solutions revenue
Current report
Cost of testing services
Current report
Cost of product
Current report
Research and development
Current report
Sales and marketing
Current report
General and administrative
Current report
General and administrative expenses increased by $20.9 million, or 42%, for the six months ended June 30, 2026, compared to the same period in 2025. The increase was primarily attributable to increases of $9.2 million in personnel-related costs, $7.5 million in legal and consulting expenses and $4.3 million in stock-based compensation expense, partially offset by a decrease of $0.1 million in equipment-related costs.
Current report
Gain on sale of lab products business
Current report
Gain on sale of lab products business of $113.0 million in the current period reflects the gain on the sale of our lab products business. For details over the aforementioned sale, see Note 1, Organization and Description of Business, to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q under the caption “Sale of lab products business,” which is incorporated herein by reference.
Current report
Litigation settlement expense
Current report
Interest income, net
Current report
Interest income, net decreased by $1.5 million for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to a decrease in average balance of cash, cash equivalents and marketable securities.
Current report
Other (expense) income, net
Current report
Income tax (expense) benefit
Current report
Income tax expense increased by $3.9 million for the six months ended June 30, 2026, compared to the same period in 2025. The increase was primarily attributable to a current tax expense of $3.8 million recognized on the taxable gain from the sale of our lab products business, which was completed on June 30, 2026. See Note 1 and Note 11 to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further information.
Current report
Sale of Lab Products Business
Current report
On June 30, 2026, we completed the sale of our lab products business to Eurobio and received cash consideration of $171.7 million, subject to customary post-closing adjustments for working capital, cash and indebtedness. See Note 1 to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further information.
Current report
Acquisition of Naveris
Current report
On July 1, 2026, we completed the acquisition of Naveris and paid $161.8 million in cash, subject to customary post-closing adjustments, of which $5.0 million was deposited into an escrow account. In addition, Naveris’ equity holders are eligible to receive up to $100.0 million in additional cash consideration contingent upon the achievement of specified revenue-based milestones in respect of the fiscal years ending December 31, 2026 and December 31, 2027. See Note 13 to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further information.
Current report
•Stock-based compensation; and
Current report
•Gain on sale of lab products business.
Removed paragraphs (4)
Previous report
We are a precision medicine company dedicated to improving outcomes for transplant patients and advancing organ health. We deliver solutions designed to empower clinicians and improve patient outcomes. Our integrated solutions include non-invasive molecular testing for heart, kidney, and lung transplants; laboratory products; digital health technologies; and patient solutions that support care before and after transplant. We are the leading provider of genomics-based information for transplant patients.
Previous report
Income tax benefit (expense)
Previous report
Income tax benefit (expense) increased by $0.1 million for the three months ended March 31, 2026, compared to the same period in 2025. The increase is primarily attributable to a change in mixed profit (loss) across jurisdictions.
Previous report
•Stock-based compensation.
Reworded paragraphs (39)
Previous wording
Our commercially available post-transplant testing services consist of AlloSure® Kidney, a donor-derived cell-free DNA, or dd-cfDNA, solution for kidney transplant patients, AlloMap® Heart, a gene expression profiling solution for heart transplant patients, AlloSure® Heart, a dd-cfDNA solution for heart transplant patients, HeartCare, the combined use of AlloMap Heart and AlloSure Heart, and AlloSure® Lung, a dd-cfDNA solution for lung transplant patients. We have initiated several clinical studies to generate data on our existing and planned future testing services. From time to time, we partner with pharma and biopharma companies to use our technology and tests, often in clinical trials, to identify or screen for patients that may be appropriate candidates for their products. We also offer high-quality products in the pre-transplant space that increase the chance of successful transplants by facilitating a better match between a donor and a recipient of stem cells and organs. We also provide digital transplant solutions and various offerings that help transplant centers with patient management, outcomes quality and operational support.
Current wording
Our commercially available post-transplant testing services consist of AlloSure® Kidney, a donor-derived cell-free DNA, or dd-cfDNA, solution for kidney transplant patients, AlloMap® Heart, a gene expression profiling solution for heart transplant patients, AlloSure® Heart, a dd-cfDNA solution for heart transplant patients, HeartCare, the combined use of AlloMap Heart and AlloSure Heart, and AlloSure® Lung, a dd-cfDNA solution for lung transplant patients. Our commercially available specialty oncology service is NavDx®, a blood-based test that detects and monitors human papillomavirus (HPV)-mediated cancers — including head, neck, and anal cancers — from diagnosis through post-treatment molecular residual disease (MRD) surveillance. We have initiated several clinical studies to generate data on our existing and planned future testing services. From time to time, we partner with pharma and biopharma companies to use our technology and tests, often in clinical trials, to identify or screen for patients that may be appropriate candidates for their products. We also provide digital and patient solutions, including clinical practice management software, data and analytics tools, and patient support offerings.
Previous wording
•Revenue of $118 million, an increase of 39% year-over-year
Current wording
•Revenue of $132 million, an increase of 52% year-over-year
Previous wording
• Testing services revenue of $91 million, an increase of 48% year-over-year, and testing services volume of approximately 54,900, an increase of 17% year-over-year
Current wording
• Testing Services revenue of $100 million, an increase of 61% year-over-year, and Testing Services volume of approximately 58,000, an increase of 17% year-over-year
Previous wording
• Patient and digital solutions revenue of $16 million and lab product revenue of $10 million, representing year-over-year growth of 33% and a decline of 4%, respectively
Current wording
• Patient and Digital Solutions revenue of $19 million and Lab Product revenue of $13 million, representing year-over-year growth of 50% and 8%, respectively
Previous wording
• Average revenue per test of approximately $1,660 including approximately $14 million in prior period revenue
Current wording
• Average revenue per test of approximately $1,720, including $16 million in prior period revenue
Previous wording
• Net income of $3 million, compared to net loss of $10 million for the first quarter of 2025
Current wording
• Net income of $111 million, compared to net loss of $9 million for the second quarter of 2025
Previous wording
• Cash flow from operations of $4 million
Current wording
• Cash flow from operations of $31 million
Previous wording
We derive our revenue from testing services, products sales, patient and digital solutions revenues. Revenue is recorded considering a five-step revenue recognition model that includes identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations and recognizing revenue when, or as, an entity satisfies a performance obligation.
Current wording
We derive our revenue from testing services, product sales, and patient and digital solutions. Revenue is recorded considering a five-step revenue recognition model that includes identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations and recognizing revenue when, or as, an entity satisfies a performance obligation.
Previous wording
Our testing services revenue is derived from AlloSure Kidney, AlloMap Heart, AlloSure Heart and AlloSure Lung tests, which represented 78% of our total revenue for each of the three months ended March 31, 2026, and 73% of our total revenue for the three months ended March 31, 2025. Our testing services revenue depends on a number of factors, including (i) the number of tests performed; (ii) establishment of coverage policies by third-party insurers and government payers; (iii) our ability to collect from payers with whom we do not have positive coverage determination, which often requires that we pursue a case-by-case appeals process; (iv) our ability to recognize revenues on tests billed prior to the establishment of reimbursement policies, contracts or payment histories; and (v) how quickly we can successfully commercialize new product offerings.
Current wording
Our testing services revenue is derived from AlloSure Kidney, AlloMap Heart, AlloSure Heart and AlloSure Lung tests, which represented 76% and 77% of our total revenue for each of the three and six months ended June 30, 2026, respectively, and 72% of our total revenue for each of the three and six months ended June 30, 2025. Our testing services revenue depends on a number of factors, including (i) the number of tests performed; (ii) establishment of coverage policies by third-party insurers and government payers; (iii) our ability to collect from payers with whom we do not have positive coverage determination, which often requires that we pursue a case-by-case appeals process; (iv) our ability to recognize revenues on tests billed prior to the establishment of reimbursement policies, contracts or payment histories; and (v) how quickly we can successfully commercialize new product offerings.
Previous wording
Our product revenue is derived primarily from sales of AlloSeq Tx, Olerup SSP and QTYPE products. Product revenue represented 9% of our total revenue for the three months ended March 31, 2026, and 13% of our total revenue for the three months ended March 31, 2025. We recognize product revenue from the sale of products to end-users, distributors and strategic partners when all revenue recognition criteria are satisfied. We generally have a contract or a purchase order from a customer with the specified required terms of order, including the number of products ordered. Transaction prices are determinable and products are delivered and risk of loss passed to the customer upon either shipping or delivery, as per the terms of the agreement. There are no further performance obligations related to a contract and revenue is recognized at the point of delivery consistent with the terms of the contract or purchase order.
Current wording
Our product revenue is derived primarily from sales of AlloSeq Tx, Olerup SSP and QTYPE products. Product revenue represented 10% and 9% of our total revenue for the three and six months ended June 30, 2026, respectively, and 14% and 13% of our total revenue for the three and six months ended June 30, 2025, respectively. We recognize product revenue from the sale of products to end-users, distributors and strategic partners when all revenue recognition criteria are satisfied. We generally have a contract or a purchase order from a customer with the specified required terms of order, including the number of products ordered. Transaction prices are determinable and products are delivered and risk of loss passed to the customer upon either shipping or delivery, as per the terms of the agreement. There are no further performance obligations related to a contract and revenue is recognized at the point of delivery consistent with the terms of the contract or purchase order.
Previous wording
Our patient and digital solutions revenue is mainly derived from sales of our Ottr software, XynQAPI, MedActionPlan, mTilda (HLA Data Systems), TransChart and Tx Access licenses, services and SaaS agreements across the digital portfolio, as well as our pharmacy sales at The Transplant Pharmacy, or TTP. Patient and digital solutions revenue represented 14% of our total revenue for the three months ended March 31, 2026, and 14% of our total revenue for the three months ended March 31, 2025.
Current wording
Our patient and digital solutions revenue is mainly derived from sales of our Ottr software, XynQAPI, MedActionPlan, mTilda (HLA Data Systems), TransChart and Tx Access licenses, services and SaaS agreements across the digital portfolio, as well as our pharmacy sales at The Transplant Pharmacy, or TTP. Patient and digital solutions revenue represented 15% and 14% of our total revenue for the three and six months ended June 30, 2026, respectively, and 15% and 14% of our total revenue for the three and six months ended June 30, 2025, respectively.
Previous wording
The growth of our testing services is tied to the number of AlloSure Kidney, AlloMap Heart and AlloSure Heart, HeartCare and AlloSure Lung patient samples we receive and patient results we report. We incur costs in connection with collecting and shipping all samples and a portion of the costs when we cannot ultimately issue a report. As a result, the number of patient samples received largely correlates directly to the number of patient results reported.
Current wording
The growth of our testing services is tied to the number of AlloSure Kidney, AlloMap Heart, AlloSure Heart, HeartCare and AlloSure Lung patient samples we receive and patient results we report. We incur costs in connection with collecting and shipping all samples and a portion of the costs when we cannot ultimately issue a report. As a result, the number of patient samples received largely correlates directly to the number of patient results reported.
Previous wording
Testing services revenue increased by $29.5 million, or 48%, for the three months ended March 31, 2026, compared to the same period in 2025. The increase was primarily driven by testing services volume growth of 17% as compared to the same period in 2025. The variance between revenue growth and volume growth was primarily driven by $17.7 million of increased net collections associated with tests performed and revenue recognized in prior periods under ASC 606, partially offset by a $3.4 million reduction in testing services revenue related to the recognition of refund reserves payable to third-party payors.
Current wording
Testing services revenue increased by $37.9 million, or 61%, for the three months ended June 30, 2026, compared to the same period in 2025. The increase was primarily driven by testing services volume growth of 17% as compared to the same period in 2025. The variance between revenue growth and volume growth was primarily driven by $18.0 million of increased net collections associated with tests performed and revenue recognized in prior periods under ASC 606 and an increase in revenue per test, partially offset by a $2.4 million reduction in testing services revenue related to the recognition of refund reserves payable to third-party payers.
Previous wording
Product revenue decreased by $0.5 million, or 4%, for the three months ended March 31, 2026, compared to the same period in 2025. The decrease was primarily due to lower sales of our commercial NGS-based kitted solutions.
Current wording
Product revenue increased by $1.0 million, or 8%, for the three months ended June 30, 2026, compared to the same period in 2025. The increase was primarily due to higher sales of our commercial NGS-based kitted solutions.
Previous wording
Patient and digital solutions revenue increased by $4.0 million, or 33%, for the three months ended March 31, 2026, compared to the same period in 2025. The increase was primarily driven by higher pharmacy sales and growth in our digital solutions, particularly an expanded customer base from Ottr software.
Current wording
Patient and digital solutions revenue increased by $6.4 million, or 50%, for the three months ended June 30, 2026, compared to the same period in 2025. The increase was primarily driven by higher pharmacy sales and growth in our digital solutions, particularly an expanded customer base from Ottr software.
Previous wording
Cost of testing services increased by $2.0 million, or 13%, for the three months ended March 31, 2026, compared to the same period in 2025. The increase was primarily attributed to higher testing services volume, partially offset by the continuous efficiency measures to lower laboratory expenses.
Current wording
Cost of testing services increased by $0.5 million, or 3%, for the three months ended June 30, 2026, compared to the same period in 2025. The increase was primarily attributed to higher testing services volume, partially offset by the continuous efficiency measures to lower laboratory expenses.
Previous wording
Cost of product decreased by $0.8 million, or 13%, for the three months ended March 31, 2026, compared to the same period in 2025. The decrease was primarily due to lower sales and improved manufacturing efficiencies and lower costs resulting from favorable pricing terms negotiated with key manufacturers.
Current wording
Cost of product decreased by $0.6 million, or 13%, for the three months ended June 30, 2026, compared to the same period in 2025. The decrease was primarily due to improved manufacturing efficiencies and lower costs resulting from favorable pricing terms negotiated with key manufacturers.
Previous wording
Cost of patient and digital solutions increased by $4.0 million, or 52%, for the three months ended March 31, 2026, compared to the same period in 2025. The increase was primarily due to an increase in the cost of goods from our pharmacy business.
Current wording
Cost of patient and digital solutions increased by $6.4 million, or 78%, for the three months ended June 30, 2026, compared to the same period in 2025. The increase was primarily due to an increase in the cost of goods from our pharmacy business.
Previous wording
General and administrative expenses increased by $7.7 million, or 34%, for the three months ended March 31, 2026, compared to the same period in 2025. The increase was primarily attributable to increases of $2.8 million in personnel-related costs, $2.0 million in stock-based compensation expense, $1.6 million in legal and consulting expenses and $1.3 million in software-related costs.
Current wording
General and administrative expenses increased by $13.2 million, or 48%, for the three months ended June 30, 2026, compared to the same period in 2025. The increase was primarily attributable to increases of $5.6 million in personnel-related costs, $5.6 million in legal and consulting expenses and $2.3 million in stock-based compensation expense, partially offset by a decrease of $0.3 million in equipment-related costs.
Previous wording
Interest income, net decreased by $0.9 million for the three months ended March 31, 2026, compared to the same period in 2025, primarily due to a decrease in cash, cash equivalents and marketable securities.
Current wording
Interest income, net decreased by $0.6 million for the three months ended June 30, 2026, compared to the same period in 2025, primarily due to a lower average balance in cash, cash equivalents and marketable securities.
Previous wording
Research and development expenses increased by $2.9 million, or 16%, for the three months ended March 31, 2026, compared to the same period in 2025. The increase was primarily attributable to increases of $2.8 million in personnel-related costs, $0.4 million in consulting and licensing expense, partially offset by a decrease of $0.3 million in software-related expenses.
Current wording
Research and development expenses increased by $8.4 million, or 24%, for the six months ended June 30, 2026, compared to the same period in 2025. The increase was primarily attributable to increases of $7.0 million in personnel-related costs, $1.4 million in consulting and licensing expense and $0.5 million in software-related expenses, partially offset by a decrease of $0.5 million in partnership milestone expense.
Previous wording
Sales and marketing expenses increased by $7.4 million, or 32%, for the three months ended March 31, 2026, compared to the same period in 2025. The increase was primarily attributable to increases of $5.4 million in personnel-related costs, $1.5 million in marketing expenses, $0.7 million in travel expenses and 0.2 million in software related expenses, partially offset by a decrease of $0.4 million in consulting expenses.
Current wording
Sales and marketing expenses increased by $16.5 million, or 35%, for the six months ended June 30, 2026, compared to the same period in 2025. The increase was primarily attributable to increases of $14.1 million in personnel-related costs, $2.4 million in marketing expenses, $0.9 million in travel expenses and $0.3 million in software related expenses, partially offset by a decrease of $1.2 million in stock-based compensation expense.
Previous wording
Litigation settlement expenses decreased by $4.8 million, or 89%, for the three months ended March 31, 2026, compared to the same period in 2025. The decrease in litigation settlement expense was mainly due to the settlement of $5.4 million related to the Securities Class Action lawsuit during the three months ended March 31, 2025, which was partially offset by a $0.6 million settlement related to the Derivative Actions Lawsuit during the three months ended March 31, 2026. For details over the aforementioned lawsuits, see Note 8, Commitments and Contingencies, to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q under the caption “Litigation and Indemnification Obligations”, which is incorporated herein by reference.
Current wording
Litigation settlement expenses decreased by $5.1 million, or 89%, for the six months ended June 30, 2026, compared to the same period in 2025. The decrease in litigation settlement expense was mainly due to the settlement of $5.4 million related to the Securities Class Action lawsuit and additional litigation settlement expense of $0.4 million during the six months ended June 30, 2025, which was partially offset by a $0.6 million settlement related to the Derivative Actions Lawsuit during the six months ended June 30, 2026. For details over the aforementioned lawsuits, see Note 8, Commitments and Contingencies, to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q under the caption “Litigation and Indemnification Obligations”, which is incorporated herein by reference.
Previous wording
Other (expense) income, net decreased by $0.6 million for the three months ended March 31, 2026, compared to the same period in 2025, primarily due to foreign exchange losses during the period.
Current wording
Other (expense) income, net decreased by $1.1 million for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to foreign exchange losses during the period.
Previous wording
Cash Flows for the Three Months Ended March 31, 2026 and 2025
Current wording
Cash Flows for the Six Months Ended June 30, 2026 and 2025
Previous wording
Net cash provided by operating activities consists of net loss, adjusted for certain noncash items in the condensed consolidated statements of operations and changes in operating assets and liabilities.
Current wording
Net cash provided by operating activities consists of net income, adjusted for certain noncash items in the condensed consolidated statements of operations and changes in operating assets and liabilities.
Previous wording
Cash provided by operating activities for the three months ended March 31, 2026 was $4.3 million. Net operating assets decreased by $14.6 million. Our noncash items primarily included $9.8 million in stock-based compensation expense, $3.9 million of depreciation and amortization expense, $1.4 million of amortization of right-of-use assets, $0.9 million of amortization of premium on short-term marketable securities, net and $0.1 million of loss on disposal of assets.
Current wording
Cash provided by operating activities for the six months ended June 30, 2026 was $34.9 million. Net operating assets decreased by $2.9 million. Our noncash items primarily included $113.0 million in gain on sale of lab products business, $20.5 million in stock-based compensation expense, $6.7 million of depreciation and amortization expense, $2.7 million of amortization of right-of-use assets, $1.4 million of amortization of premium on short-term marketable securities, net and $0.2 million of loss on disposal of assets.
Previous wording
Cash used in operating activities for the three months ended March 31, 2025 was $26.6 million. Net operating assets decreased by $31.0 million. Our noncash items primarily included $8.9 million in stock-based compensation expense, $3.6 million of depreciation and amortization expense, $1.3 million of amortization of right-of-use assets, and $0.8 million of amortization of premium on short-term marketable securities, net.
Current wording
Cash used in operating activities for the six months ended June 30, 2025 was $16.7 million. Net operating assets decreased by $27.2 million. Our noncash items primarily included $18.4 million in stock-based compensation expense, $7.3 million of depreciation and amortization expense, $2.7 million of amortization of right-of-use assets, $0.6 million of amortization of premium on short-term marketable securities, net, and $0.5 million of revaluation of contingent consideration to estimated fair value.
Previous wording
For the three months ended March 31, 2025, net cash provided by investing activities of $1.3 million was primarily related to proceeds from maturities of marketable securities of $55.4 million, offset by purchases of marketable securities of $52.5 million, and $1.6 million related to additions of property and equipment.
Current wording
For the six months ended June 30, 2026, net cash provided by investing activities of $291.6 million was primarily related to net proceeds from the sale of lab products business of $164.8 million, sales of marketable securities of $114.6 million, and maturities of marketable securities of $59.7 million, partially offset by purchases of marketable securities of $39.9 million, $5.7 million related to additions of property and equipment and $2.0 million related to purchase of long-term investments.
Previous wording
For the three months ended March 31, 2026, net cash provided by investing activities of $11.1 million was primarily related to proceeds from maturities of marketable securities of $54.7 million, partially offset by purchases of marketable securities of $39.9 million, and $3.8 million related to additions of property and equipment.
Current wording
For the six months ended June 30, 2025, net cash provided by investing activities of $24.7 million was primarily related to proceeds from maturities of marketable securities of $94.6 million, partially offset by purchases of marketable securities of $67.3 million, and $2.6 million related to additions of capital expenditures.
Previous wording
Net cash used in financing activities for the three months ended March 31, 2026 of $2.9 million was primarily due to taxes paid related to net share settlements of restricted stock units of $2.5 million, and payment for contingent consideration of $1.5 million, partially offset by proceeds from issuances of common stock under our employee stock purchase plan of $1.0 million, and proceeds from exercise of stock options of $0.1 million.
Current wording
Net cash used in financing activities for the six months ended June 30, 2026 of $18.4 million was primarily due to repurchase and retirement of common stock of $12.2 million, taxes paid related to net share settlements of restricted stock units of $8.5 million, and payment for contingent consideration of $1.5 million, partially offset by proceeds from issuances of common stock under our employee stock purchase plan of $2.5 million, and proceeds from exercise of stock options of $1.4 million.
Previous wording
Net cash used in financing activities for the three months ended March 31, 2025 of $0.6 million was primarily due to payment for contingent consideration of $1.5 million, offset by proceeds from issuances of common stock under our employee stock purchase plan of $0.9 million.
Current wording
Net cash used in financing activities for the six months ended June 30, 2025 of $54.5 million was primarily due to repurchase and retirement of common stock of $50.0 million, taxes paid related to net share settlements of restricted stock units of $9.3 million, and payment for contingent consideration of $1.5 million, offset by proceeds from issuances of common stock under our employee stock purchase plan of $2.3 million, and proceeds from exercise of stock options of $4.1 million.
Previous wording
We have incurred significant losses and negative cash flows from operations and had an accumulated deficit of $732.5 million at March 31, 2026. As of March 31, 2026, we had cash, cash equivalents and marketable securities of $198.1 million and no debt outstanding.
Current wording
We have incurred significant losses and negative cash flows from operations and had an accumulated deficit of $505.4 million at June 30, 2026. As of June 30, 2026, we had cash and cash equivalents of $373.6 million and no debt outstanding.
Previous wording
On May 10, 2023, we filed a universal shelf registration statement (File No. 333-271814), or the Registration Statement, and we thereafter filed post-effective amendments on May 9, 2024 and May 23, 2024. The SEC declared the Registration Statement effective on May 23, 2024, and as a result, we can sell from time to time up to $250.0 million of shares of our common stock, preferred stock, debt securities, warrants, units or rights comprised of any combination of these securities, for our own account in one or more offerings under the Registration Statement. The terms of any offering under the Registration Statement will be established at the time of such offering and will be described in a prospectus supplement to the Registration Statement filed with the SEC prior to the completion of any such offering.
Current wording
On April 28, 2026, we filed an automatic shelf registration statement on Form S-3ASR (File No. 333-295388), or the Registration Statement, which became effective upon filing. Pursuant to the Registration Statement, we may from time to time sell an indeterminate amount of shares of our common stock, preferred stock, debt securities, warrants, units or rights comprised of any combination of these securities, for our own account in one or more offerings under the Registration Statement. The terms of any offering under the Registration Statement will be established at the time of such offering and will be described in a prospectus supplement to the Registration Statement filed with the SEC prior to the completion of any such offering.
Previous wording
On May 30, 2025, our Board of Directors authorized a new share repurchase program of up to $50.0 million in shares of our common stock over a period of up to two years, commencing on May 30, 2025, or the May 2025 Repurchase Program. The May 2025 Repurchase Program may be carried out, subject to approval by a committee of our Board of Directors, through open market purchases, one or more Rule 10b5-1 trading plans, block trades and in privately negotiated transactions. There were no
Current wording
On May 30, 2025, our Board of Directors authorized a new share repurchase program of up to $50.0 million in shares of our common stock over a period of up to two years, commencing on May 30, 2025, or the May 2025 Repurchase Program. The May 2025 Repurchase Program may be carried out, subject to approval by a committee of our Board of Directors, through open market purchases, one or more Rule 10b5-1 trading plans, block trades and in privately negotiated transactions. During the three and six months ended June 30, 2026, the Company purchased an aggregate of 0.6 million shares of our common stock under the May 2025 Repurchase Program for an aggregate purchase price of $12.2 million. As of June 30, 2026, no amounts were available for future share repurchases under the May 2025 Repurchase Program.
Previous wording
repurchases during the three months ended March 31, 2026. As of March 31, 2026, $12.2 million was available for future share repurchases under the May 2025 Repurchase Program. Additionally, on April 24, 2026, our Board of Directors authorized the April 2026 Repurchase Program, which provides for the repurchase of up to $100.0 million in shares of our common stock over a period of up to two years, commencing on April 30, 2026. The April 2026 Repurchase Program may be carried out, subject to approval by a committee of our Board of Directors, through open market purchases, one or more Rule 10b5-1 trading plans, block trades and in privately negotiated transactions.
Current wording
Additionally, on April 24, 2026, our Board of Directors authorized the April 2026 Repurchase Program, which provides for the repurchase of up to $100.0 million in shares of our common stock over a period of up to two years, commencing on April 30, 2026. The April 2026 Repurchase Program may be carried out, subject to approval by a committee of our Board of Directors, through open market purchases, one or more Rule 10b5-1 trading plans, block trades and in privately negotiated transactions. There were no repurchases made during the three and six months ended June 30, 2026 under the April 2026 Repurchase Program.
Previous wording
The accompanying unaudited condensed consolidated balance sheets contain certain recorded assets in foreign countries, namely Stockholm, Sweden and Fremantle, Australia. Although these countries are considered economically stable and we have experienced no notable burden from foreign exchange transactions, export duties, government regulations or unanticipated events in foreign countries could have a material adverse effect on our operations.
Current wording
Prior to the sale of the lab products business on June 30, 2026, the accompanying unaudited condensed consolidated balance sheets contained certain recorded assets in foreign countries, namely Stockholm, Sweden and Fremantle, Australia. These assets were transferred as part of the sale and are no longer reflected in the unaudited condensed consolidated balance sheet as of June 30, 2026. See Note 1 and Note 11 to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for further information. To the extent we continue to sell our solutions internationally, foreign exchange transactions, export duties, government regulations or unanticipated events in foreign countries could continue to have a material adverse effect on our operations.
Previous wording
•Impairment of goodwill, intangible assets and other long-lived assets; and
Current wording
•Impairment of goodwill, intangible assets and other long-lived assets;
Previous wording
There were no material changes in the matters for which we make critical accounting estimates in the preparation of our unaudited condensed consolidated financial statements during the three months ended March 31, 2026 as compared to those disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 25, 2026.
Current wording
Other than the gain on sale of lab products business, there were no material changes in the matters for which we make critical accounting estimates in the preparation of our unaudited condensed consolidated financial statements during the three and six months ended June 30, 2026 as compared to those disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 25, 2026.
Rearranged current paragraphs (8)
Current report — wording carried from elsewhere
Litigation settlement expenses decreased by $0.4 million, or 100%, for the three months ended June 30, 2026, compared to the same period in 2025. The decrease in litigation settlement expense was mainly due to litigation settlement expense during the three months ended June 30, 2025.
Current report — wording carried from elsewhere
Other (expense) income, net decreased by $0.5 million for the three months ended June 30, 2026, compared to the same period in 2025, primarily due to foreign exchange losses during the three months ended June 30, 2026.
Current report — wording carried from elsewhere
Testing services revenue increased by $67.4 million, or 54%, for the six months ended June 30, 2026, compared to the same period in 2025. The increase was primarily driven by testing services volume growth of 17.3% as compared to the same period in 2025. The variance between revenue growth and volume growth was primarily driven by $35.6 million of increased net collections associated with tests performed and revenue recognized in prior periods under ASC 606 and an increase in revenue per test, partially offset by a $5.8 million reduction in testing services revenue related to the recognition of refund reserves payable to third-party payers.
Current report — wording carried from elsewhere
Patient and digital solutions revenue increased by $10.4 million, or 42%, for the six months ended June 30, 2026, compared to the same period in 2025. The increase was primarily driven by higher pharmacy sales and growth in our digital solutions, particularly an expanded customer base from Ottr software.
Current report — wording carried from elsewhere
Cost of testing services increased by $2.5 million, or 8%, for the six months ended June 30, 2026, compared to the same period in 2025. The increase was primarily attributed to higher testing services volume, partially offset by the continuous efficiency measures to lower laboratory expenses.
Current report — wording carried from elsewhere
Cost of product decreased by $1.4 million, or 13%, for the six months ended June 30, 2026, compared to the same period in 2025. The decrease was primarily due to improved manufacturing efficiencies and lower costs resulting from favorable pricing terms negotiated with key manufacturers.
Current report — wording carried from elsewhere
Cost of patient and digital solutions
Current report — wording carried from elsewhere
Cost of patient and digital solutions increased by $10.4 million, or 65%, for the six months ended June 30, 2026, compared to the same period in 2025. The increase was primarily due to an increase in the cost of goods from our pharmacy business.