Key Highlights

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

A transplant diagnostics firm moves into oncology

CareDx (NASDAQ:CDNA) presents itself as a precision medicine company centered on transplant, specialty oncology and cell therapy. Its tests include AlloSure for kidney, heart and lung transplant recipients, AlloMap Heart, and NavDx, a blood-based test that tracks HPV-mediated cancers such as head, neck and anal cancers.

The company submitted its Quarterly Report for the period ended September 30, 2026 on October 29, 2026. Post-transplant tests together with NavDx accounted for 86% of revenue in the quarter, up from 72% a year earlier, and testing volume reached about 75,900, a 51% rise.

Testing services revenue climbs 65%

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

Revenue outpaced volume partly because $17.3 million was recognized for tests performed in earlier periods, versus $5.9 million a year earlier. A $2.6 million reduction for refund reserves owed to third-party payers offset part of that.

Patient and digital solutions revenue rose 31% to $20.2 million, driven by higher pharmacy sales and a bigger Ottr software customer base. Product revenue fell to zero from $12.5 million a year ago after the lab products Business was sold on June 30, 2026.

Costs grow faster than sales, yet Operating Income turns positive

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

General and administrative expenses went up 34% to $38.0 million, reflecting higher personnel, stock-based compensation, legal and consulting costs. Operating income therefore reached $8.1 million, compared with a $0.2 million loss.

How the tax benefit affects the bottom line

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

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

Acquisitions, cash and points to monitor

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

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