Caris Life Sciences, Inc.
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
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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.
Sep 30, 2026 · Filed Nov 4, 2026
CAI$25.23-3.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0002019410-26-000055
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0002019410-26-000069
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 154 previous paragraphs and 134 current paragraphs.
90 unchanged; 36 reworded; 8 added; 27 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 18 previous and 16 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 (8)
Current report
Total revenue was $275.4 million for the three months ended September 30, 2026, compared to $216.8 million for the three months ended September 30, 2025, an increase of $58.5 million, or 27.0%.
Current report
Cost of services - Molecular profiling services was $89.2 million for the three months ended September 30, 2026, compared to $67.0 million for the three months ended September 30, 2025, an increase of $22.2 million, or 33.1%. The increase was primarily driven by an increase in materials and related testing costs of $17.0 million, an increase in labor costs of $3.4 million, and a $1.4 million increase in utilities, rent, and allocated overhead.
Current report
Cost of services - Pharma research and development services was $3.9 million for the three months ended September 30, 2026, compared to $2.3 million for the three months ended September 30, 2025, an increase of $1.6 million, or 66.2%. The increase was driven primarily by an increase in materials and related testing costs of $1.0 million, and an increase in labor costs of $0.4 million driven by increased data and discovery deliveries.
Current report
General and administrative expenses were $69.3 million for the three months ended September 30, 2026, compared to $52.0 million for the three months ended September 30, 2025, an increase of $17.3 million, or 33.3%. This increase was primarily due to a $6.4 million increase in labor costs and benefits associated with an expansion of personnel, a $3.3 million increase in stock-based compensation expense, a $3.0 million increase in utilities expenses, a $2.0 million increase in software licensing expenses, and a $2.1 million increase in other expenses including depreciation, professional services, rent, and recruiting.
Current report
Other income (expense), net was $0.5 million for the three months ended September 30, 2026, compared to $(0.1) million for the three months ended September 30, 2025, an increase of $0.6 million. The increase was primarily due to gains on foreign exchange transactions.
Current report
Comparison of the Nine Months Ended September 30, 2026 and 2025
Current report
Total revenue was $755.2 million for the nine months ended September 30, 2026, compared to $519.1 million for the nine months ended September 30, 2025, an increase of $236.1 million, or 45.5%.
Current report
Cost of services - Molecular profiling services was $243.4 million for the nine months ended September 30, 2026, compared to $193.2 million for the nine months ended September 30, 2025, an increase of $50.2 million, or 26.0%. The increase was primarily driven by an increase in materials and related testing costs of $38.1 million, an increase in labor costs of $11.5 million, and a $3.3 million increase in utilities, rent, and allocated overhead, offset by a decrease in depreciation expense of $2.8 million.
Removed paragraphs (27)
Previous report
Total revenue was $263.7 million for the three months ended June 30, 2026, compared to $181.4 million for the three months ended June 30, 2025, an increase of $82.3 million, or 45.4%.
Previous report
Cost of services - Molecular profiling services was $81.3 million for the three months ended June 30, 2026, compared to $65.3 million for the three months ended June 30, 2025, an increase of $16.0 million, or 24.5%.
Previous report
The blood laboratory contributed a $10.4 million increase, in addition to an increase within the tissue laboratory of $5.5 million. The blood laboratory increase was primarily driven by an increase in materials and related testing costs of $8.6 million, an increase in labor costs of $1.2 million, and a $0.9 million increase in utilities, rent, and allocated overhead, offset by a decrease in depreciation expense of $0.8 million. The tissue laboratory increase was driven primarily by an increase in materials and related testing costs of $2.3 million, and an increase in labor costs of $3.6 million, offset by a decrease in depreciation expense of $0.4 million.
Previous report
Cost of services - Pharma research and development services was $2.8 million for the three months ended June 30, 2026, compared to $2.4 million for the three months ended June 30, 2025, an increase of $0.4 million, or 16.6%. The increase was driven primarily by an increase in materials and related testing costs of $0.1 million, and an increase in labor costs of $0.2 million.
Previous report
General and administrative expenses were $66.5 million for the three months ended June 30, 2026, compared to $64.4 million for the three months ended June 30, 2025, an increase of $2.2 million, or 3.4%. This increase was primarily due to a $5.4 million increase in labor costs and benefits associated with an expansion of personnel, a $2.4 million increase in consulting, audit and legal professional fees, a $0.7 million increase in insurance expenses, a $2.3 million increase in utilities expenses, a $1.0 million increase in software licensing expenses, a $0.7 million increase in rent expenses, and a $1.1 million increase in recruiting expenses, offset by a $0.5 million decrease in depreciation expense, and an $11.5 million decrease in stock-based compensation expense, which is primarily from awards with an IPO-related vesting condition for the three months ended June 30, 2025.
Previous report
Comparison of the Six Months Ended June 30, 2026 and 2025
Previous report
Total revenue was $479.9 million for the six months ended June 30, 2026, compared to $302.3 million for the six months ended June 30, 2025, an increase of $177.6 million, or 58.7%.
Previous report
Cost of services - Molecular profiling services was $154.2 million for the six months ended June 30, 2026, compared to $126.2 million for the six months ended June 30, 2025, an increase of $28.0 million, or 22.2%.
Previous report
The blood laboratory contributed a $19.0 million increase, in addition to an increase within the tissue laboratory of $8.8 million. The blood laboratory increase was primarily driven by an increase in materials and related testing costs of $16.8 million, an increase in labor costs of $1.9 million, and a $1.6 million increase in utilities, rent, and allocated overhead, offset by a decrease in depreciation expense of $1.6 million. The tissue laboratory increase was driven primarily by an increase in materials and related testing costs of $4.2 million, and an increase in labor costs of $6.2 million, offset by a decrease in depreciation expense of $1.0 million.
Previous report
Non-GAAP Financial Measures
Previous report
We use certain non-GAAP financial measures to supplement our condensed consolidated financial statements, which are presented in accordance with GAAP. We believe the non-GAAP financial measures we use, Adjusted EBITDA and free cash flow, are useful in evaluating our performance and liquidity. Our non-GAAP financial measures have limitations as analytical tools, however, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP.
Previous report
Adjusted EBITDA
Previous report
We define Adjusted EBITDA as net loss, adjusted to exclude interest income, interest expense, changes in fair value of financial instruments, other expense, net, income tax expense (benefit), depreciation and amortization, and stock-based compensation expense.
Previous report
We use Adjusted EBITDA in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance. We believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors. In addition, it provides a useful measure for period-to-period comparisons of our business, as it removes the effect of certain non-cash expenses and certain variable charges. Some of the limitations related to the use of Adjusted EBITDA as an analytical tool include:
Previous report
•it does not reflect interest income, interest expense or other non-operating gains and losses, which may represent an increase to or reduction in cash available to us;
Previous report
•it does not reflect recurring, non-cash expenses of depreciation of property and equipment and amortization of right-of-use assets and intangible assets, and although these are non-cash expenses, the assets being depreciated and amortized may have to be replaced in the future;
Previous report
•it does not reflect the impact of stock-based compensation expense, which has been, and will continue to be a part of our compensation strategy; and
Previous report
•it may be calculated differently than similarly titled measures used by other companies, which reduces its usefulness as a comparative measure.
Previous report
Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including net loss and our other GAAP results. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as, or similar to, some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed to imply that our future results will be unaffected by the types of items excluded from the calculation of Adjusted EBITDA.
Previous report
The following table provides a reconciliation of net loss, the most directly comparable financial measure presented in accordance with GAAP, to Adjusted EBITDA for the periods presented:
Previous report
Free Cash Flow
Previous report
We define free cash flow as net cash provided by (used in) operating activities less capitalized software and purchases of property and equipment. We believe free cash flow is a useful measure of liquidity that provides an additional basis for assessing our ability to generate cash. Some of the limitations related to the use of free cash flow as an analytical tool include:
Previous report
•it does not reflect our future contractual commitments;
Previous report
•it does not represent our total residual cash flow for a given period; and
Previous report
•it may be calculated differently than similarly titled measures used by other companies, which reduces its usefulness as a comparative measure.
Previous report
Because of these limitations, you should consider free cash flow alongside other financial performance measures, including net cash provided by (used in) operating activities, capital expenditures, and our other GAAP results.
Previous report
The following table provides a reconciliation of net cash provided by (used in) operating activities, the most directly comparable financial measure presented in accordance with GAAP, to free cash flow for the periods presented:
Reworded paragraphs (36)
Previous wording
We founded Caris in 2008 with the belief and vision that combining a vast set of consistently generated molecular information with robust data-driven insights could realize the potential of precision medicine for patients. We have spent the last 18 years developing and building our portfolio of comprehensive, proprietary molecular profiling solutions and generating what we believe to be one of the largest and most comprehensive multi-modal clinico-genomic datasets in oncology based on tests we have run on over 1,130,000 cases as of June 30, 2026. Our Caris Molecular Intelligence platform is purpose-built to leverage the convergence of next-generation sequencing (“NGS”), AI and ML technologies, and high-performance computing. The power of our differentiated Caris platform has enabled us to develop the latest generation of advanced precision medicine diagnostic solutions designed to address the entire cancer care continuum, including early detection, minimal residual disease (“MRD”) tracking, therapy selection, and treatment monitoring, as well as to create molecular signatures and discover and develop novel precision medicine therapeutics.
Current wording
We founded Caris in 2008 with the belief and vision that combining a vast set of consistently generated molecular information with robust data-driven insights could realize the potential of precision medicine for patients. We have spent the last 18 years developing and building our portfolio of comprehensive, proprietary molecular profiling solutions and generating what we believe to be one of the largest and most comprehensive multi-modal clinico-genomic datasets in oncology based on tests we have run on over 1,200,000 cases as of September 30, 2026. Our Caris Molecular Intelligence platform is purpose-built to leverage the convergence of next-generation sequencing (“NGS”), AI and ML technologies, and high-performance computing. The power of our differentiated Caris platform has enabled us to develop the latest generation of advanced precision medicine diagnostic solutions designed to address the entire cancer care continuum, including multi-cancer early detection (“MCED”), early detection, minimal residual disease (“MRD”) tracking, therapy selection, and treatment monitoring, as well as to create molecular signatures and discover and develop novel precision medicine therapeutics.
Previous wording
To our knowledge, we remain the only genomic profiling company to consistently utilize WES and WTS as standard practice on every eligible patient sample. Our in-depth profiling of patient samples has led to the creation of what we believe to be one of the largest and most comprehensive multi-modal clinico-genomic datasets in oncology, which now also serves as the foundation for our digital solutions such as Caris MI Clarity.
Current wording
Our in-depth profiling of patient samples has led to the creation of what we believe to be one of the largest and most comprehensive multi-modal clinico-genomic datasets in oncology, which now also serves as the foundation for our digital solutions such as Caris MI Clarity.
Previous wording
For the three months ended June 30, 2026 and 2025, we generated total revenue of $263.7 million and $181.4 million, respectively, and incurred a net loss of $0.6 million and $71.8 million, respectively. For the six months ended June 30, 2026 and 2025, we generated total revenue of $479.9 million and $302.3 million, respectively, and incurred a net loss of $1.1 million and $174.4 million, respectively. Our Adjusted EBITDA was $55.7 million and $16.7 million for the three months ended June 30, 2026 and 2025, respectively, and $81.9 million and $(19.5) million for the six months ended June 30, 2026 and 2025, respectively. While we have achieved net profit for the three months ended September 30, 2025 and December 31, 2025, we may continue to incur net losses in the near future, and our expenses are expected to increase as we continue to invest in developing new solutions, expand our organization, and increase our marketing efforts to continue to launch and drive market adoption of our solutions. Cash flow from operations was $61.4 million and $(24.0) million for the six months ended June 30, 2026 and 2025, respectively. Our free cash flow was $28.9 million and $(28.1) million for the six months ended June 30, 2026 and 2025, respectively. For additional information regarding Adjusted EBITDA and free cash flow, each non-GAAP financial measures, see “—Non-GAAP Financial Measures.” Additionally, as of June 30, 2026, we had cash, cash equivalents, restricted cash and marketable securities of $794.9 million, and the aggregate principal amount of debt outstanding under our existing term loan was $400.0 million. For additional information regarding our liquidity and capital resources, see “—Liquidity and Capital Resources.”
Current wording
For the three months ended September 30, 2026 and 2025, we generated total revenue of $275.4 million and $216.8 million, respectively, and reported net income of $15.3 million and $24.3 million, respectively. For the nine months ended September 30, 2026 and 2025, we generated total revenue of $755.2 million and $519.1 million, respectively, and reported net income (loss) of $14.1 million and $(150.0) million, respectively. Cash flow from operations was $39.1 million and $38.4 million for the nine months ended September 30, 2026 and 2025, respectively. Additionally, as of September 30, 2026, we had cash, cash equivalents, restricted cash and marketable securities of $769.2 million, and the aggregate principal amount of debt outstanding under our existing term loan was $400.0 million. For additional information regarding our liquidity and capital resources, see “—Liquidity and Capital Resources.”
Previous wording
•Market acceptance and commercial success of our solutions. Our success and future growth will depend on maintaining and expanding market acceptance of our current and future molecular profiling solutions along with commercial success of these solutions across existing and new customers. Our clinical case volumes have continued to increase over time. Changes in our case volumes and the pricing of our solutions, however, are generally not impacted by the cancer type. For the three months ended June 30, 2026 and 2025, the number of clinical cases was 59,200 and 50,000, respectively. For the six months ended June 30, 2026 and 2025, the number of clinical cases was 112,000 and 95,900, respectively. We commercially launched our MI Cancer Seek solution in January 2025 as the WES/WTS NGS component of our MI Profile platform. We initiated the broad commercial launch of Caris Assure for therapy selection in the first quarter of 2024. Realizing the potential of Caris Assure and Caris Detect across the cancer treatment continuum is a key component of our business strategy. The commercial success of our solutions will depend upon, among other things, additional validation studies and clinical trials that demonstrate the effectiveness of our solutions, particularly for early detection, multi-cancer early detection (“MCED”), MRD tracking, and treatment monitoring, and the continued adoption of Caris Assure and the adoption of our other solutions, including Caris ChromoSeq, Caris MI Clarity and Caris Detect, by patients, the medical community, and third-party payers. In addition, we expect that our ability to maintain and expand our sales, marketing, and distribution capabilities to support the increased adoption of our molecular profiling solutions will be a key factor in our success.
Current wording
•Market acceptance and commercial success of our solutions. Our success and future growth will depend on maintaining and expanding market acceptance of our current and future molecular profiling solutions along with commercial success of these solutions across existing and new customers. Our clinical case volumes have continued to increase over time. Changes in our case volumes and the pricing of our solutions, however, are generally not impacted by the cancer type. For the three months ended September 30, 2026 and 2025, the number of clinical cases was 61,500 and 50,800, respectively. For the nine months ended September 30, 2026 and 2025, the number of clinical cases was 173,500 and 146,700, respectively. We commercially launched our MI Cancer Seek solution in January 2025 as the WES/WTS NGS component of our MI Profile platform. We initiated the broad commercial launch of Caris Assure for therapy selection in the first quarter of 2024. Realizing the potential of Caris Assure and Caris Detect across the cancer treatment continuum is a key component of our business strategy. The commercial success of our solutions will depend upon, among other things, additional validation studies and clinical trials that demonstrate the effectiveness of our solutions, particularly for early detection, MCED, MRD tracking, and treatment monitoring, and the continued adoption of Caris Assure and the adoption of our other solutions, including Caris ChromoSeq, Caris MI Clarity and Caris Detect, by patients, the medical community, and third-party payers. In addition, we expect that our ability to maintain and expand our sales, marketing, and distribution capabilities to support the increased adoption of our molecular profiling solutions will be a key factor in our success.
Previous wording
Other expense, net consists of items related to foreign currency gains and losses, loss on debt extinguishment, and additional immaterial items.
Current wording
Other income (expense), net consists of items related to foreign currency gains and losses, loss on debt extinguishment, and additional immaterial items.
Previous wording
Molecular profiling services revenue increased to $252.3 million for the three months ended June 30, 2026, from $162.9 million for the three months ended June 30, 2025, an increase of $89.3 million, or 54.8%. The increase was driven primarily by higher clinical case volume and higher reimbursement, including improved average selling prices resulting from enhanced contracting. Clinical cases increased from approximately 50,000 for the three months ended June 30, 2025, to approximately 59,200 for the three months ended June 30, 2026.
Current wording
Molecular profiling services revenue increased to $262.7 million for the three months ended September 30, 2026, from $207.6 million for the three months ended September 30, 2025, an increase of $55.1 million, or 26.6%. The increase was driven primarily by higher clinical case volume and higher reimbursement, including improved average selling prices resulting from enhanced contracting and collection capabilities. Clinical cases increased to approximately 61,500 for the three months ended September 30, 2026 from approximately 50,800 for the three months ended September 30, 2025.
Previous wording
Revenue from clinical cases for patients covered by Medicare represented approximately 38.9% and 49.7% of our molecular profiling services revenue for the three months ended June 30, 2026 and 2025, respectively.
Current wording
Revenue from clinical cases for patients covered by Medicare represented approximately 36.9% and 39.4% of our molecular profiling services revenue for the three months ended September 30, 2026 and 2025, respectively.
Previous wording
Pharma research and development services revenue decreased to $16.8 million for the six months ended June 30, 2026, from $25.3 million for the six months ended June 30, 2025, a decrease of $8.5 million, or 33.5%. The decrease is a result of the timing of delivery of services under the applicable agreements.
Current wording
Pharma research and development services revenue increased to $12.7 million for the three months ended September 30, 2026, from $9.2 million for the three months ended September 30, 2025, an increase of $3.4 million, or 36.8%. The increase is a result of the timing of delivery of services under the applicable agreements.
Previous wording
Gross profit, calculated as total revenue less cost of services, was $179.6 million for the three months ended June 30, 2026, compared to $113.7 million for the three months ended June 30, 2025, an increase of $65.9 million, or 58.0%, primarily due to the increase in molecular profiling services revenue.
Current wording
Gross profit, calculated as total revenue less cost of services, was $182.3 million for the three months ended September 30, 2026, compared to $147.5 million for the three months ended September 30, 2025, an increase of $34.8 million, or 23.6%, primarily due to the increase in molecular profiling services revenue.
Previous wording
Selling and marketing expenses were $53.8 million for the three months ended June 30, 2026, compared to $42.3 million for the three months ended June 30, 2025, an increase of $11.5 million, or 27.2%. This increase was primarily due to a $6.9 million increase in personnel costs related to our sales team expansion, a $1.3 million increase in professional services, a $2.4 million increase in travel and marketing expenses, and a $0.9 million increase in software licensing expenses.
Current wording
Selling and marketing expenses were $59.9 million for the three months ended September 30, 2026, compared to $41.3 million for the three months ended September 30, 2025, an increase of $18.6 million, or 45.0%. This increase was primarily due to a $10.6 million increase in personnel costs related to our sales team expansion, a $6.9 million increase in marketing expenses, and a $0.9 million increase in software licensing expenses.
Previous wording
Research and development expenses were $32.4 million for the three months ended June 30, 2026, compared to $25.0 million for the three months ended June 30, 2025, an increase of $7.3 million, or 29.2%. The increase was primarily driven by a $1.7 million increase in depreciation expense, a $1.6 million increase in stock-based compensation, a $3.5 million increase in utilities expenses, and a $1.4 million increase in biorepository collection fees, offset by a $0.7 million reduction in material and reference testing costs, and a $0.6 million reduction in allocated overhead.
Current wording
Research and development expenses were $33.8 million for the three months ended September 30, 2026, compared to $21.6 million for the three months ended September 30, 2025, an increase of $12.2 million, or 56.5%. The increase was primarily driven by a $2.9 million increase in material and reference testing costs, a $1.9 million increase in depreciation expense, a $0.8 million increase in stock-based compensation, a $3.5 million increase in utilities expenses, a $1.6 million increase in labor costs and benefits associated with an expansion of personnel, and a $1.1 million increase in biorepository collection fees.
Previous wording
Interest income was $6.8 million for the three months ended June 30, 2026, compared to $1.6 million for the three months ended June 30, 2025, an increase of $5.2 million, or 321.4%. This increase was primarily due to higher cash balances within our interest-earning bank accounts.
Current wording
Interest income was $6.3 million for the three months ended September 30, 2026, compared to $7.4 million for the three months ended September 30, 2025, a decrease of $1.0 million, or 14.0%. This decrease was primarily due to lower cash balances within our interest-earning bank accounts.
Previous wording
Interest expense was $9.2 million for the three months ended June 30, 2026 and $19.2 million for the three months ended June 30, 2025, a decrease of $10.0 million, or 52.0%. The decrease was primarily due to our debt refinancing, resulting in lower term loan debt interest expense of $4.2 million, and the absence of convertible debt instruments in 2026, resulting in lower interest expense of $5.8 million.
Current wording
Interest expense was $9.2 million for the three months ended September 30, 2026 and $13.5 million for the three months ended September 30, 2025, a decrease of $4.3 million, or 31.5%. The decrease was primarily due to our debt refinancing, which reduced the interest rate.
Previous wording
Changes in fair value of financial instruments were $0.0 million for the three months ended June 30, 2026, compared to $(17.9) million for the three months ended June 30, 2025, an increase of $17.9 million, or 100.0%. The increase was primarily due to the absence of financial instruments subject to fair value adjustments during 2026, whereas such instruments were outstanding in 2025 and were subject to fair value changes during the period.
Current wording
Changes in fair value of financial instruments were $0.0 million for the three months ended September 30, 2026, compared to $(2.1) million for the three months ended September 30, 2025, an increase of $2.1 million, or 100.0%. The increase was primarily due to the absence of financial instruments subject to fair value adjustments during 2026, whereas such instruments were outstanding in 2025 and were subject to fair value changes during the period.
Previous wording
Molecular profiling services revenue increased to $463.1 million for the six months ended June 30, 2026, from $277.0 million for the six months ended June 30, 2025, an increase of $186.0 million, or 67.2%. The increase was driven primarily by higher clinical case volume and higher reimbursement, including improved average selling prices resulting from enhanced contracting. Clinical cases increased from approximately 95,900 for the six months ended June 30, 2025, to approximately 112,000 for the six months ended June 30, 2026.
Current wording
Molecular profiling services revenue increased to $725.8 million for the nine months ended September 30, 2026, from $484.6 million for the nine months ended September 30, 2025, an increase of $241.2 million, or 49.8%. The increase was driven primarily by higher clinical case volume and higher reimbursement, including improved average selling prices resulting from enhanced contracting. Clinical cases increased to approximately 173,500 for the nine months ended September 30, 2026 from approximately 146,700 for the nine months ended September 30, 2025.
Previous wording
Revenue from clinical cases for patients covered by Medicare represented approximately 40.0% and 51.6% of our molecular profiling services revenue for the six months ended June 30, 2026 and 2025, respectively.
Current wording
Revenue from clinical cases for patients covered by Medicare represented approximately 39.5% and 46.4% of our molecular profiling services revenue for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
Pharma research and development services revenue decreased to $11.5 million for the three months ended June 30, 2026, from $18.5 million for the three months ended June 30, 2025, a decrease of $7.0 million, or 38.0%. The decrease is a result of the timing of delivery of services under the applicable agreements.
Current wording
Pharma research and development services revenue decreased to $29.5 million for the nine months ended September 30, 2026, from $34.6 million for the nine months ended September 30, 2025, a decrease of $5.1 million, or 14.7%. The decrease is a result of the timing of delivery of services under the applicable agreements.
Previous wording
Cost of services - Pharma research and development services was $4.7 million for the six months ended June 30, 2026, compared to $5.4 million for the six months ended June 30, 2025, a decrease of $0.6 million, or 11.6%. The decrease was driven primarily by a decrease in materials and related testing costs of $0.7 million, and a decrease in utilities, rent, and allocated overhead of $0.5 million, offset by an increase in labor costs of $0.5 million.
Current wording
Cost of services - Pharma research and development services was $8.6 million for the nine months ended September 30, 2026, compared to $7.7 million for the nine months ended September 30, 2025, an increase of $0.9 million, or 12.1%. The increase was driven primarily by an increase in materials and related testing costs of $0.3 million, and an increase in labor costs of $0.9 million, offset by a decrease in utilities, rent, and allocated overhead of $0.5 million.
Previous wording
Gross profit, calculated as total revenue less cost of services, was $320.9 million for the six months ended June 30, 2026, compared to $170.7 million for the six months ended June 30, 2025, an increase of $150.2 million, or 88.0%, primarily due to the increase in molecular profiling services revenue.
Current wording
Gross profit, calculated as total revenue less cost of services, was $503.2 million for the nine months ended September 30, 2026, compared to $318.3 million for the nine months ended September 30, 2025, an increase of $185.0 million, or 58.1%, primarily due to the increase in molecular profiling services revenue.
Previous wording
Selling and marketing expenses were $98.8 million for the six months ended June 30, 2026, compared to $82.1 million for the six months ended June 30, 2025, an increase of $16.7 million, or 20.4%. This increase was primarily due to a $9.2 million increase in personnel costs related to our sales team expansion, a $1.7 million increase in professional services, a $4.6 million increase in travel and marketing expenses, and a $1.2 million increase in software licensing expenses.
Current wording
Selling and marketing expenses were $158.7 million for the nine months ended September 30, 2026, compared to $123.4 million for the nine months ended September 30, 2025, an increase of $35.3 million, or 28.6%. This increase was primarily due to a $19.8 million increase in personnel costs related to our sales team expansion, a $1.5 million increase in professional services, an $11.8 million increase in marketing expenses, and a $2.0 million increase in software licensing expenses.
Previous wording
General and administrative expenses were $126.3 million for the six months ended June 30, 2026, compared to $116.5 million for the six months ended June 30, 2025, an increase of $9.8 million, or 8.4%. This increase was primarily due to an $8.6 million increase in labor costs and benefits associated with an expansion of personnel, a $5.2 million increase in consulting, audit and legal professional fees, a $3.1 million increase in utilities expenses, a $1.4 million increase in insurance expenses, a $1.5 million increase in rent expenses, a $1.8 million increase in recruiting expenses, a $2.3 million increase in indirect tax expenses, and a $1.6 million increase in software licensing expenses, offset by a $1.8 million decrease in depreciation expense, and a $14.7 million decrease in stock-based compensation, which is primarily from awards with an IPO-related vesting condition for the six months ended June 30, 2025.
Current wording
General and administrative expenses were $195.5 million for the nine months ended September 30, 2026, compared to $168.5 million for the nine months ended September 30, 2025, an increase of $27.1 million, or 16.1%. This increase was primarily due to a $14.9 million increase in labor costs and benefits associated with an expansion of personnel, a $5.6 million increase in consulting, audit and legal professional fees, a $6.1 million increase in utilities expenses, a $1.4 million increase in insurance expenses, a $2.2 million increase in rent expenses, a $2.2 million increase in recruiting expenses, a $2.7 million increase in indirect tax expenses, and a $3.6 million increase in software licensing expenses, offset by a $1.2 million decrease in depreciation expense, and an $11.4 million decrease in stock-based compensation, which resulted primarily from the vesting of awards with an IPO-related vesting condition during the nine months ended September 30, 2025.
Previous wording
Research and development expenses were $63.7 million for the six months ended June 30, 2026, compared to $48.1 million for the six months ended June 30, 2025, an increase of $15.6 million, or 32.3%. The increase was primarily driven by a $4.2 million increase in material and reference testing costs, a $2.8 million increase in depreciation expense, a $2.5 million increase in stock-based compensation, and a $6.4 million increase in utilities expenses, offset by a $1.0 million reduction in allocated overhead.
Current wording
Research and development expenses were $97.5 million for the nine months ended September 30, 2026, compared to $69.7 million for the nine months ended September 30, 2025, an increase of $27.8 million, or 39.8%. The increase was primarily driven by a $7.0 million increase in material and reference testing costs, a $4.7 million increase in depreciation expense, a $3.3 million increase in stock-based compensation, a $10.0 million increase in utilities expenses, a $1.4 million increase in royalty fees, and a $1.2 million increase in labor costs and benefits associated with an expansion of personnel.
Previous wording
Interest income was $13.7 million for the six months ended June 30, 2026, compared to $2.1 million for the six months ended June 30, 2025, an increase of $11.5 million, or 543.7%. This increase was primarily due to higher amounts of cash earning interest in our bank accounts.
Current wording
Interest income was $20.0 million for the nine months ended September 30, 2026, compared to $9.5 million for the nine months ended September 30, 2025, an increase of $10.5 million, or 110.8%. This increase was primarily due to higher amounts of cash earning interest in our bank accounts.
Previous wording
Interest expense was $22.0 million for the six months ended June 30, 2026, compared to $32.0 million for the six months ended June 30, 2025, a decrease of $10.0 million, or 31.1%. This decrease was primarily due to our debt refinancing, resulting in lower debt interest expense of $4.1 million, and the absence of convertible debt instruments in 2026, resulting in lower interest expense of $5.8 million.
Current wording
Interest expense was $31.3 million for the nine months ended September 30, 2026, compared to $45.5 million for the nine months ended September 30, 2025, a decrease of $14.2 million, or 31.2%. This decrease was primarily due to our debt refinancing, resulting in lower debt interest expense of $8.4 million, and the absence of convertible debt instruments in 2026, resulting in lower interest expense of $5.8 million.
Previous wording
Changes in fair value of financial instruments were $0.0 million for the six months ended June 30, 2026, compared to $(50.2) million for the six months ended June 30, 2025, an increase of $50.2 million, or 100.0%. The increase was primarily due to the absence of financial instruments subject to fair value adjustments during 2026, whereas such instruments were outstanding in 2025 prior to our IPO and were subject to fair value changes during the period.
Current wording
Changes in fair value of financial instruments were $0.0 million for the nine months ended September 30, 2026, compared to $(52.3) million for the nine months ended September 30, 2025, an increase of $52.3 million, or 100.0%. The increase was primarily due to the absence of financial instruments subject to fair value adjustments during 2026, whereas such instruments were outstanding in 2025 prior to our IPO and were subject to fair value changes during the period.
Previous wording
Other expense, net was $25.1 million for the six months ended June 30, 2026, compared to $18.4 million for the six months ended June 30, 2025, an increase of $6.7 million, or 36.6%. This increase was primarily due to higher debt extinguishment expenses during the six months ended June 30, 2026 of $7.3 million. The Company recorded a $25.2 million loss on debt extinguishment for the six months ended June 30, 2026 associated with the repayment of our 2023 Term Loan, whereas the Company recorded a $17.9 million loss on debt extinguishment for the six months ended June 30, 2025 associated with the conversion of the 2025 convertible notes at IPO.
Current wording
Other expense, net was $24.6 million for the nine months ended September 30, 2026, compared to $18.4 million for the nine months ended September 30, 2025, an increase of $6.2 million, or 33.4%. This increase was primarily due to higher debt extinguishment expenses during the nine months ended September 30, 2026 of $7.3 million. The Company recorded a $25.2 million loss on debt extinguishment for the nine months ended September 30, 2026 associated with the repayment of our 2023 Term Loan, whereas the Company recorded a $17.9 million loss on debt extinguishment for the nine months ended September 30, 2025 associated with the conversion of the 2025 convertible notes at IPO. These expenses were offset by net gains on foreign exchange transactions of $1.1 million.
Previous wording
We may continue to incur net losses in the near future, and our expenses will increase as we continue to invest in developing new solutions, expand our organization, and increase our marketing efforts to continue to launch and drive market adoption of our solutions. As of June 30, 2026, we had an accumulated deficit of $2.5 billion.
Current wording
We may incur net losses in the near future, and our expenses will increase as we continue to invest in developing new solutions, expand our organization, and increase our marketing efforts to continue to launch and drive market adoption of our solutions. As of September 30, 2026, we had an accumulated deficit of $2.5 billion.
Previous wording
To date, we have funded our operations principally from the issuance of stock in private financings, issuance of common stock through our IPO, term loan borrowings and convertible debt, and through revenue from molecular profiling and pharma research and development services. As of June 30, 2026, we had cash and cash equivalents of $689.5 million and short-term marketable securities of $102.2 million. We believe our existing cash and cash equivalents, short-term marketable securities, and anticipated cash flows from operations will provide sufficient capital and liquidity to fund our operating expenses and capital expenditure requirements for at least the next 12 months. We may, however, continue to require additional capital to meet our operational needs. See “—Indebtedness” and “—Cash Requirements” below for additional information regarding our cash requirements and various factors that may impact our liquidity and capital resources.
Current wording
To date, we have funded our operations principally from the issuance of stock in private financings, issuance of common stock through our IPO, term loan borrowings and convertible debt, and through revenue from molecular profiling and pharma research and development services. As of September 30, 2026, we had cash and cash equivalents of $664.2 million and short-term marketable securities of $102.1 million. We believe our existing cash and cash equivalents, short-term marketable securities, and anticipated cash flows from operations will provide sufficient capital and liquidity to fund our operating expenses and capital expenditure requirements for at least the next 12 months. We may, however, continue to require additional capital to meet our operational needs. See “—Indebtedness” and “—Cash Requirements” below for additional information regarding our cash requirements and various factors that may impact our liquidity and capital resources.
Previous wording
Net cash provided by operating activities during the six months ended June 30, 2026 was $61.4 million, which was due to net non-cash charges of $80.6 million, offset by a net loss of $1.1 million and a net change in our operating assets and liabilities of $18.1 million. The net change in our operating assets and liabilities was primarily the result of a $4.7 million increase in accounts receivable, and a $61.6 million increase in supplies, offset by a $39.6 million increase in accounts payable, and a $10.1 million increase in accrued expenses and other liabilities. Net non-cash charges primarily consisted of $11.6 million of depreciation and amortization expense, $38.1 million of stock-based compensation expense, $2.8 million of non-cash operating lease expense, $2.9 million in amortization of debt discount costs, and a $25.2 million non-cash loss on debt extinguishment associated with the repayment of our 2023 Term Loan.
Current wording
Net cash provided by operating activities during the nine months ended September 30, 2026 was $39.1 million, which was due to net income of $14.1 million and net non-cash charges of $110.7 million, offset by a net change in our operating assets and liabilities of $85.7 million. The net change in our operating assets and liabilities was primarily the result of a $21.2 million increase in accounts receivable, a $78.5 million increase in supplies, and a $5.7 million increase in prepaid expenses and other current assets, offset by a $18.0 million increase in accounts payable, and a $2.1 million increase in accrued expenses and other liabilities. Net non-cash charges primarily consisted of $18.2 million of depreciation and amortization expense, $56.6 million of stock-based compensation expense, $4.3 million of non-cash operating lease expense, $3.2 million in amortization of debt discount costs, a $25.2 million non-cash loss on debt extinguishment associated with the repayment of our 2023 Term Loan, and $3.1 million of other non-cash charges, primarily consisting of $3.1 million of inventory reserves.
Previous wording
Net cash used in operating activities during the six months ended June 30, 2025 was $24.0 million, which was primarily due to a net loss of $174.4 million, offset by a net change in our operating assets and liabilities of $11.9 million and net non-cash charges of $138.4 million. The net change in our operating assets and liabilities was primarily the result of a $37.0 million decrease in accounts receivable, offset by a $2.6 million increase in supplies, a $1.9 million decrease in accounts payable, a $2.3 million increase in prepaid expenses and other current assets, and an $18.7 million decrease in accrued expenses and other liabilities. Net non-cash charges primarily consisted of $13.5 million of depreciation and amortization expense, $43.0 million of stock-based compensation expense (including $19.5 million of stock-based compensation expense associated with RSUs that vested upon the IPO), $2.9 million of non-cash operating lease expense, $9.7 million in amortization of debt discount costs, a $50.2 million loss within changes in the fair value of financial instruments associated with our IPO, and a $17.9 million loss on debt extinguishment associated with our IPO.
Current wording
Net cash provided by operating activities during the nine months ended September 30, 2025 was $38.4 million, which was due to a net change in our operating assets and liabilities of $26.0 million and net non-cash charges of $162.5 million, offset by a net loss of $150.0 million. The net change in our operating assets and liabilities was primarily the result of a $61.2 million decrease in accounts receivable, offset by an $11.1 million increase in supplies, a $1.2 million decrease in accounts payable, a $4.8 million increase in prepaid expenses and other current assets, and a $17.8 million decrease in accrued expenses and other liabilities. Net non-cash charges primarily consisted of $18.3 million of depreciation and amortization expense, $56.6 million of stock-based compensation expense (including $19.5 million of stock-based compensation expense associated with RSUs that vested upon the IPO), $4.3 million of non-cash operating lease expense, $12.2 million in amortization of debt discount costs, a $52.3 million loss within changes in the fair value of financial instruments associated with our IPO, and a $17.9 million loss on debt extinguishment associated with our IPO.
Previous wording
Net cash used in investing activities during the six months ended June 30, 2026 was $132.5 million, which was primarily due to purchases marketable securities of $102.0 million, and purchases of property and equipment of $32.4 million, offset by sales of marketable securities of $1.9 million.
Current wording
Net cash used in investing activities during the nine months ended September 30, 2026 was $150.0 million, which was primarily due to purchases of marketable securities of $102.0 million, and purchases of property and equipment of $49.9 million, offset by sales of marketable securities of $1.9 million.
Previous wording
Net cash used in investing activities during the six months ended June 30, 2025 was $4.1 million, which was primarily due to purchases of property and equipment.
Current wording
Net cash used in investing activities during the nine months ended September 30, 2025 was $11.2 million, which was due to purchases of property and equipment of $11.2 million.
Previous wording
Net cash used in financing activities during the six months ended June 30, 2026 was $36.1 million, which was primarily due to repayment of our 2023 Term Loan of $406.3 million, repurchases of our common stock of $21.4 million, payment of taxes withheld from net settlement of exercised stock options and vested RSUs of $5.3 million, and payment of third-party debt issuance costs of $1.1 million, offset by proceeds from the 2026 Term Loan, net of issuance costs, of $393.5 million, proceeds from share purchases under employee stock purchase plan of $2.9 million, and exercises of stock options of $1.7 million.
Current wording
Net cash used in financing activities during the nine months ended September 30, 2026 was $21.8 million, which was primarily due to repayment of our 2023 Term Loan of $406.3 million, repurchases of our common stock of $31.4 million, payment of taxes withheld from net settlement of exercised stock options and vested RSUs of $5.4 million, and payment of third-party debt issuance costs of $1.1 million, offset by proceeds from the 2026 Term Loan, net of issuance costs, of $393.5 million, proceeds from share purchases under employee stock purchase plan of $2.9 million, and exercises of stock options of $26.1 million.
Previous wording
Net cash provided by financing activities during the six months ended June 30, 2025 was $682.7 million, which was primarily due to proceeds from exercises of stock options of $2.6 million, issuance of Series E Preferred Stock, net of issuance costs, of $87.6 million, issuance of Series F Preferred Stock, net of issuance costs, of $33.6 million, issuance of convertible notes, net of issuance costs, of $27.9 million, issuance of warrants of $10.3 million, and proceeds from the IPO, net of underwriting discounts and commissions, of $528.5 million, offset by the payment of taxes withheld from net settlement of exercised options of $1.7 million, payment of deferred offering costs of $2.0 million, and payments from debt modification of $4.0 million.
Current wording
Net cash provided by financing activities during the nine months ended September 30, 2025 was $661.6 million, which was primarily due to proceeds from the IPO, net of underwriting discounts and commissions, of $528.5 million, offset by the payment of taxes withheld from net settlement of exercised options of $18.2 million, payment of deferred offering costs of $7.7 million, payments from debt modification of $4.0 million, issuance of Series E Preferred Stock, net of issuance costs, of $87.6 million, issuance of Series F Preferred Stock, net of issuance costs, of $33.6 million, issuance of convertible notes, net of issuance costs, of $27.9 million, issuance of warrants of $10.3 million, and exercises of stock options of $3.8 million.
Previous wording
We expect that we will continue to require additional capital to fund our operations and to continue to fund investments in the development and marketing of our solutions for the foreseeable future. In 2026, we expect to incur increased expenses related to commercial expansion, research and development efforts and increase in pipeline trial activities. We may need or determine to raise additional capital through private or public equity or debt financings, through collaborative or other arrangements with corporate sources, or through other sources of financing. Requirements for additional capital will depend on many factors, including:
Current wording
We expect that we will continue to require additional capital to fund our operations and to continue to fund investments in the development and marketing of our solutions for the foreseeable future. For the remainder of 2026, we expect to incur increased expenses related to commercial expansion, research and development efforts and increase in pipeline trial activities. We may need or determine to raise additional capital through private or public equity or debt financings, through collaborative or other arrangements with corporate sources, or through other sources of financing. Requirements for additional capital will depend on many factors, including:
Previous wording
There have been no material changes to our critical accounting policies and estimates during the six months ended June 30, 2026 as compared to the disclosures in our Annual Report on Form 10-K for the year ended December 31, 2025.
Current wording
There have been no material changes to our critical accounting policies and estimates during the nine months ended September 30, 2026 as compared to the disclosures in our Annual Report on Form 10-K for the year ended December 31, 2025.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Other expense, net was $25.1 million for the three months ended June 30, 2026, compared to $18.3 million for the three months ended June 30, 2025, an increase of $6.8 million, or 37.0%. The increase was primarily due to higher debt extinguishment expenses during the three months ended June 30, 2026 of $7.3 million. The Company recorded a $25.2 million loss on debt extinguishment for the three months ended June 30, 2026 associated with the repayment of our 2023 Term Loan, whereas the Company recorded a $17.9 million loss on debt extinguishment for the three months ended June 30, 2025 associated with the conversion of the 2025 convertible notes at IPO.