Full Year 2024 Revenue Grew 19% to $334 Million

Expects Full Year 2025 Revenue of $365 Million to $375 Million

BRISBANE, Calif., February 26, 2025--(BUSINESS WIRE)--CareDx, Inc. (Nasdaq: CDNA) today reported financial results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter Financial Highlights

Revenue of $86.6 million, increased 32% year-over-year Testing services revenue of $63.8 million, increased 37% year-over-year, and testing services volume of approximately 45,500, increased 14% year-over-year GAAP net income of $87.7 million, non-GAAP net income of $10.7 million, and positive adjusted EBITDA of $9.8 million, a significant improvement from the fourth quarter 2023 Cash flow from operations of $21.9 million

Fourth Quarter Business Highlights

Sixth consecutive quarter of sequential testing services volume growth AlloSure® Kidney surveillance testing continued to increase in the fourth quarter Submitted first manuscript of the Kidney Outcomes Allograft Rejection (KOAR) study for publication Published study in the journal Transplant International shows AlloSeq cfDNA highly accurate in detecting organ transplant rejection

Full Year 2024 Financial Highlights

Revenue of $333.8 million, driven by testing services revenue growth of 19% year-over-year Testing services revenue of $249.4 million, increased 19% year-over-year, and testing services volume of approximately 176,000, increased 6% year-over-year Patient and digital solutions revenue of $43.6 million and product revenue of $40.8 million, representing year-over-year growth of 18% and 22%, respectively GAAP net income of $52.5 million, non-GAAP net income of $30.9 million, and positive adjusted EBITDA of $27.8 million Cash flow from operations of $38 million Cash, cash equivalents, and marketable securities of $261 million, with no debt, as of December 31, 2024 In February, the Board of Directors authorized a common stock repurchase program of up to $50 million of shares over a period of up to 24 months

"2024 was a transformative year for CareDx, positioning the company for long-term profitable growth," said John W. Hanna, CareDx President and CEO. "We look forward to another year of strong performance in 2025, driven by our focus on testing services volume growth, expansion of payer coverage, and operational excellence as we scale our business."

Q4 2024 Financial Results

Total revenue for the three months ended December 31, 2024, was $86.6 million, an increase of 32% compared to $65.6 for the fourth quarter of 2023. Testing Services revenue for the fourth quarter 2024 was $63.8 million, an increase of 37% compared to $46.7 million for the fourth quarter of 2023. Patient and Digital Solutions revenue for the fourth quarter of 2024 was $11.4 million, an increase of 18% compared to $9.6 million for the fourth quarter 2023. Product revenue for the fourth quarter of 2024 was $11.4 million, an increase of 23% compared to $9.2 million for the fourth quarter 2023.

Story Continues

For the fourth quarter of 2024 net income was $87.7 million compared to a net loss of $118.1 million in the fourth quarter of 2023. Diluted net income per share in the fourth quarter of 2024 was $1.51, compared to diluted net loss per share of $2.21 in the fourth quarter of 2023.

Non-GAAP net income was $10.7 million in the fourth quarter of 2024, compared to a non-GAAP net loss of $9.3 million in the fourth quarter of 2023. Diluted non-GAAP net income per share was $0.18 in the fourth quarter of 2024, compared to a diluted non-GAAP net loss per share of $0.17 in the fourth quarter of 2023.

Adjusted EBITDA income for the fourth quarter of 2024 was $9.8 million, compared to an adjusted EBITDA loss of $10.3 million for the fourth quarter of 2023.

Full Year 2024 Financial Results

Total revenue for the full year ended December 31, 2024, was $333.8 million, an increase of 19% compared to $280.3 million in 2023. Testing Services revenue for the full year 2024 was $249.4 million, an increase of 19% compared with $209.7 million in 2023. Patient and Digital Solutions revenue for the full year 2024 was $43.6 million, an increase of 18% compared to $37.1 million in 2023. Product revenue for the full year 2024 was $40.8 million, an increase of 22% compared to $33.5 million in 2023.

Net income for the full year 2024 was $52.5 million, including a $96.3 million reversal of a litigation accrual associated with damages related to the alleged infringement of patent ‘544 accrued in the prior year, offset by $66.4 million of stock-based compensation, compared to a net loss of $190.3 million in 2023, which included the aforementioned $96.3 million litigation accrual and $49.1 million of stock-based compensation. Diluted net income per share for the full year 2024 was $0.93, compared to diluted net loss per share of $3.54 in the full year 2023.

Non-GAAP net income was $30.9 million for the full year 2024, compared to a non-GAAP net loss of $34.5 million for the full year ended 2023. Diluted non-GAAP net income per share was $0.55 in the full year of 2024, compared to a diluted non-GAAP net loss per share of $0.64 in the full year of 2023.

Adjusted EBITDA for the full year of 2024 was a gain of $27.8 million, compared to an adjusted EBITDA loss of $38.0 million for the full year of 2023.

Cash and cash equivalents and marketable securities were $261 million as of December 31, 2024.

For additional information regarding non-GAAP financial measures discussed herein, please see "Use of Non-GAAP Financial Measures," "Reconciliation of GAAP to Non-GAAP Financial Measures," "GAAP and Non-GAAP Operating Expenses", "Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin," and "Reconciliation of Non-GAAP to Adjusted EBITDA Financial Measures" below.

2025 Guidance

For the full year 2025, CareDx expects revenue to be in the range of $365 million to $375 million. CareDx expects full year 2025 adjusted EBITDA gain to be in the range of $29 million to $33 million.

About CareDx – The Transplant Company

CareDx, Inc., headquartered in Brisbane, California, is a leading precision medicine solutions company focused on the discovery, development, and commercialization of clinically differentiated, high-value healthcare solutions for transplant patients and caregivers. CareDx offers testing services, products, and digital healthcare solutions along the pre- and post-transplant patient journey, and is the leading provider of genomics-based information for transplant patients. For more information, please visit: www.CareDx.com.

Forward Looking Statements

This press release includes forward-looking statements, including expectations regarding the achievement of CareDx’s financial and operational goals and its expectations and prospects for 2025. These forward-looking statements are based upon information that is currently available to CareDx and its current expectations, speak only as of the date hereof, and are subject to numerous risks and uncertainties, all of which are difficult to predict and many of which are beyond CareDx’s control, that could cause the actual results to differ materially from those projected, including general economic and market factors, and global economic and marketplace uncertainties, among others discussed in CareDx’s filings with the Securities and Exchange Commission (the "SEC"), including, but not limited to, the Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed by CareDx with the SEC on or about February 27, 2025, and other reports that CareDx has filed with the SEC. Any of these may cause CareDx’s actual results, performance, or achievements to differ materially and adversely from those anticipated or implied by CareDx’s forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements. CareDx expressly disclaims any obligation, except as required by law, or undertaking to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Measures

CareDx has presented in this release certain financial information in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and also on a non-GAAP basis, including non-GAAP cost of testing services, non-GAAP cost of product, non-GAAP cost of patient and digital solutions, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP other income, net, non-GAAP income tax expense, non-GAAP gross profit, non-GAAP gross margin (%), non-GAAP operating expenses, non-GAAP net income (loss), non-GAAP basic and diluted net income (loss) per share and adjusted EBITDA. A reconciliation of the forecasted range for Adjusted EBITDA for 2025 is not included in this release due to the number of variables in the projected range and because we are currently unable to quantify accurately certain amounts that would be required to be included in the U.S. GAAP measure or the individual adjustments for such reconciliation.

We define non-GAAP net income (loss) and per share results as the GAAP net income (loss) and per share results excluding the impacts of stock-based compensation; unrealized loss on investments; realized gain on investments; acquisition-related impairment charges and amortization of purchased intangible assets and related tax effects; costs involved with completing an acquisition; changes in estimated fair value of contingent consideration; litigation expense, restructuring charges and certain other charges. We define adjusted EBITDA as non-GAAP net income (loss) before net interest income, income tax expense, depreciation and other (income) expense, net.

We are presenting these non-GAAP financial measures to assist investors in assessing our operating results through the eyes of management and because we believe that these measures provide an additional tool for investors to use in comparing our core business operating results over multiple periods. Management believes this non-GAAP information is useful for investors, when considered in conjunction with CareDx’s GAAP financial statements, because management uses such information internally for its operating, budgeting and financial planning purposes. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of CareDx’s operating results as reported under GAAP. These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. These non-GAAP financial measures are not necessarily comparable to similarly-titled measures presented by other companies. A reconciliation between GAAP and non-GAAP financial information is provided immediately following the financial tables.

CareDx, Inc.

Consolidated Statements of Operations

(Unaudited)

(In thousands, except share and per share data)  Three Months Ended December 31,  Twelve Months Ended December 31, 2024  2023  2024  2023 Revenue:  Testing services revenue $63,819  $46,703  $249,381  $209,685 Product revenue 11,367  9,244  40,783  33,517 Patient and digital solutions 11,393  9,622  43,621  37,122 Total revenue 86,579  65,569  333,785  280,324 Operating expenses:  Cost of testing services 14,224  13,805  55,611  57,642 Cost of product 5,580  5,637  23,381  18,379 Cost of patient and digital solutions 8,374  6,171  30,638  25,978 Research and development 16,530  18,276  72,405  81,866 Sales and marketing 21,084  19,999  81,718  83,334 General and administrative 30,993  26,541  123,784  117,868 Restructuring costs 1,715  1,472  1,783  2,320 Litigation expense (96,300)  96,300  (96,300)  96,300 Total operating expenses 2,200  188,201  293,020  483,687 Income (loss) from operations 84,379  (122,632)  40,765  (203,363) Other income:  Interest income, net 3,053  3,159  11,765  11,867 Change in estimated fair value of common stock warrant liability —  —  —  10 Other income, net 436  1,541  329  1,343 Total other income 3,489  4,700  12,094  13,220 Income (loss) before income taxes 87,868  (117,932)  52,859  (190,143) Income tax expense (171)  (165)  (310)  (141) Net income (loss) $87,697  $(118,097)  $52,549  $(190,284) Net income (loss) per share:  Basic $1.62  $(2.21)  $1.00  $(3.54) Diluted $1.51  $(2.21)  $0.93  $(3.54) Weighted-average shares used to compute net income (loss) per share:  Basic 54,283,644  53,388,830  52,773,247  53,764,705 Diluted 58,221,755  53,388,830  56,620,590  53,764,705

CareDx, Inc.

Consolidated Balance Sheets

(Unaudited)

(In thousands)  As of December 31, 2024  2023 Assets  Current assets:  Cash and cash equivalents $114,689  $82,197 Marketable securities 145,964  153,221 Accounts receivable 64,605  51,061 Inventory 19,503  19,471 Prepaid and other current assets 7,071  7,763 Total current assets 351,832  313,713 Property and equipment, net 33,552  35,246 Operating leases right-of-use assets 24,340  29,891 Intangible assets, net 38,184  45,701 Goodwill 40,336  40,336 Restricted cash 585  586 Other assets 2,221  1,353 Total assets $491,050  $466,826 Liabilities and stockholders’ equity  Current liabilities:  Accounts payable $7,686  $12,872 Accrued compensation 38,333  19,703 Accrued and other liabilities 43,352  45,497 Total current liabilities 89,371  78,072 Deferred tax liability 164  136 Contingent consideration 174  2,461 Operating lease liability, less current portion 22,263  28,278 Other liabilities 645  96,551 Total liabilities 112,617  205,498 Commitments and contingencies  Stockholders’ equity:  Common stock 51  49 Additional paid-in capital 1,013,193  946,511 Accumulated other comprehensive loss (8,569)  (6,963) Accumulated deficit (626,242)  (678,269) Total stockholders’ equity 378,433  261,328 Total liabilities and stockholders’ equity $491,050  $466,826

CareDx, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited)

(In thousands)  Three Months Ended December 31,  Twelve Months Ended December 31, 2024  2023  2024  2023 Cost of testing services reconciliation:  GAAP cost of testing services $14,224  $13,805  $55,611  $57,642 Stock-based compensation expense (328)  (387)  (1,560)  (1,854) Acquisition related-amortization of purchased intangibles (329)  (329)  (1,316)  (1,316) Non-GAAP cost of testing services $13,567  $13,089  $52,735  $54,472 Cost of product reconciliation:  GAAP cost of product $5,580  $5,750  $23,434  $18,492 Stock-based compensation expense (94)  (230)  (870)  (1,165) Acquisition related-amortization of purchased intangibles (410)  (413)  (1,660)  (1,655) Restructuring costs —  (113)  (53)  (113) Non-GAAP cost of product $5,076  $4,994  $20,851  $15,559 Cost of patient and digital solutions reconciliation:  GAAP cost of patient and digital solutions $8,392  $6,226  $30,656  $26,047 Stock-based compensation expense (228)  (311)  (1,276)  (1,377) Acquisition related-amortization of purchased intangibles (171)  (271)  (850)  (1,039) Restructuring costs (18)  (55)  (18)  (69) Other income —  —  5  — Non-GAAP cost of patient and digital solutions $7,975  $5,589  $28,517  $23,562 Research and development expenses reconciliation:  GAAP research and development expenses $16,614  $18,617  $72,504  $82,452 Stock-based compensation expense (1,338)  (1,399)  (6,501)  (6,556) Restructuring costs (84)  (341)  (99)  (586) Other charges —  —  (25)  — Non-GAAP research and development expenses $15,192  $16,877  $65,879  $75,310 Sales and marketing expenses reconciliation:  GAAP sales and marketing expenses $21,341  $20,254  $81,975  $84,137 Stock-based compensation expense (2,278)  (2,913)  (11,035)  (12,470) Acquisition related-amortization of purchased intangibles (625)  (641)  (2,520)  (2,457) Restructuring costs (257)  (255)  (257)  (803) Other charges —  —  (8)  — Non-GAAP sales and marketing expenses $18,181  $16,445  $68,155  $68,407 General and administrative expenses reconciliation:  GAAP general and administrative expenses $(63,951)  $123,549  $28,840  $214,917 Stock-based compensation expense (12,245)  (4,720)  (45,164)  (25,664) Change in estimated fair value of contingent consideration (170)  (946)  (931)  (2,677) Acquisition related fees and expenses —  (51)  (40)  (589) Restructuring costs (1,356)  (708)  (1,356)  (749) Litigation expense 96,300  (96,300)  96,300  (96,300) Other income (charges) —  —  22  (64) Non-GAAP general and administrative expenses $18,578  $20,824  $77,671  $88,874 Total other income (expense) reconciliation:  GAAP other income $3,489  $4,700  $12,094  $13,220 Unrealized loss on investments —  —  —  1,190 Realized gain on investment —  (1,468)  —  (1,468) Investment impairment —  —  —  1,000 Other income (500)  —  (500)  (2,081) Non-GAAP other income, net $2,989  $3,232  $11,594  $11,861 Income tax expense reconciliation:  GAAP income tax expense $(171)  $(165)  $(310)  $(141) Tax effect related to amortization of purchased intangibles (98)  (99)  (400)  (398) Non-GAAP income tax expense $(269)  $(264)  $(710)  $(539)

CareDx, Inc.

Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin

(Unaudited)

(In thousands, except percentages)  Three Months Ended December 31,  Twelve Months Ended December 31, 2024  2023  2024  2023 Total revenue $86,579  $65,569  $333,785  $280,324 GAAP cost of sales 28,196  25,781  109,701  102,181 GAAP gross profit 58,383  39,788  224,084  178,143 Stock-based compensation expense 650  928  3,706  4,396 Restructuring costs 18  168  71  182 Other income —  —  (5)  — Acquisition related-amortization of purchased intangibles 910  1,013  3,826  4,010 Non-GAAP gross profit $59,961  $41,897  $231,682  $186,731 Non-GAAP gross margin % 69%  64%  69%  67%

CareDx, Inc.

GAAP and Non-GAAP Operating Expenses

(Unaudited)

(In thousands)  Three Months Ended December 31,  Twelve Months Ended December 31, 2024  2023  2024  2023 GAAP operating expenses:  Research and development $16,614  $18,617  $72,504  $82,452 Sales and marketing 21,341  20,254  81,975  84,137 General and administrative (63,951)  123,549  28,840  214,917 Total GAAP operating expenses $(25,996)  $162,420  $183,319  $381,506  Non-GAAP operating expenses:  Research and development $15,192  $16,877  $65,879  $75,310 Sales and marketing 18,181  16,445  68,155  68,407 General and administrative 18,578  20,824  77,671  88,874 Total Non-GAAP operating expenses $51,951  $54,146  $211,705  $232,591

CareDx, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited)

(In thousands, except share and per share data)  Three Months Ended December 31,  Twelve Months Ended December 31, 2024  2023  2024  2023 GAAP net income (loss) $87,697  $(118,097)  $52,549  $(190,284) Stock-based compensation expense 16,511  9,960  66,406  49,086 Unrealized loss on investments —  —  —  1,190 Realized gain on investments —  (1,468)  —  (1,468) Acquisition related-amortization of purchased intangibles 1,535  1,654  6,346  6,467 Acquisition related fees and expenses —  51  40  589 Change in estimated fair value of contingent consideration 170  946  931  2,677 Tax effect related to amortization of purchased intangibles (98)  (99)  (400)  (398) Asset impairments and write-downs —  —  —  1,000 Litigation expense (96,300)  96,300  (96,300)  96,300 Restructuring costs 1,715  1,472  1,783  2,320 Other income (500)  —  (494)  (2,017) Non-GAAP net income (loss) $10,730  $(9,281)  $30,861  $(34,538)  GAAP basic net income (loss) per share $1.62  $(2.21)  $1.00  $(3.54) GAAP diluted net income (loss) per share $1.51  $(2.21)  $0.93  $(3.54)  Non-GAAP basic net income (loss) per share $0.20  $(0.17)  $0.58  $(0.64) Non-GAAP diluted net income (loss) per share $0.18  $(0.17)  $0.55  $(0.64)  Shares used in computing non-GAAP basic net income (loss) per share 54,283,644  53,388,830  52,773,247  53,764,705 Shares used in computing non-GAAP diluted net income (loss) per share 58,221,755  53,388,830  56,620,590  53,764,705

CareDx, Inc.

Reconciliation of Non-GAAP to Adjusted EBITDA Financial Measures

(Unaudited)

(In thousands)  Three Months Ended December 31,  Twelve Months Ended December 31, 2024  2023  2024  2023 Non-GAAP net income (loss) $10,730  $(9,281)  $30,861  $(34,538) Interest income (3,053)  (3,159)  (11,765)  (11,867) Income tax expense 269  264  710  539 Depreciation expense 1,824  1,978  7,848  7,882 Other expense (income) 64  (72)  171  7 Adjusted EBITDA $9,834  $(10,270)  $27,825  $(37,977)

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Contacts

CareDx, Inc. 
Media Relations
Anna Czene
818-731-2203
[email protected]

Investor Relations
Caroline Corner
[email protected]

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