What CareDx (CDNA) Said on Its Q3 Earnings Call

Key Points

• Q3 revenue rose 39% year over year to $139 million, driven by a 65% increase in testing-services revenue and a 51% increase in completed tests. Adjusted EBITDA doubled to $30 million, while CareDx ended the quarter with $250 million in cash and no debt.
• Transplant testing remained the primary growth driver, with volume up 21% and revenue per test up 15%; Specialty Oncology contributed $12.5 million following the Naveris acquisition. CareDx is continuing to integrate NavDx into its billing, portal and Epic Aura ordering systems.
• CareDx raised its 2026 outlook to $520 million–$530 million in revenue and $90 million–$100 million in adjusted EBITDA. The company also remains on track for 2027 launches of its AlloHeme and HistoMap Kidney pipeline programs.

CareDx NASDAQ: CDNA reported third-quarter 2026 revenue growth of 39% as testing volumes increased, driven by its transplant business and the addition of Specialty Oncology testing following the July acquisition of Naveris.

Revenue for the quarter ended Sept. 30 was $139 million, up 39% from a year earlier and 6% sequentially. Testing-services revenue rose 65% year over year to $119 million and represented 86% of total revenue. The company reported 75,900 tests completed during the quarter, a 51% increase from the prior-year period.

Adjusted EBITDA doubled year over year to $30 million, or 22% of revenue, from $15 million. Non-GAAP gross margin improved to 74% from 71%. CareDx ended the quarter with $250 million in cash and cash equivalents and no debt, while generating $13 million in operating cash flow.

Transplant Testing Drives Growth

Transplant testing volume totaled 50,750 tests, rising 21% year over year and 5% sequentially. Chief Executive Officer John Hanna said growth reflected clinical evidence, field execution, protocol adoption and workflow integration.

“Kidney continued to grow well over 20% year over year,” Hanna said during the company’s earnings call. “Lung also had a very strong quarter, and heart continues to grow in the mid-teens.”

CareDx said its transplant revenue per test, excluding Specialty Oncology, was $1,514 in the third quarter, up 15% from a year earlier. The company’s reported testing-services revenue included $15 million of out-of-period revenue, compared with $6 million in the prior-year quarter. Excluding out-of-period revenue, transplant revenue increased 39% year over year and 9% sequentially, according to the company.

Hanna said the company continues to see opportunity both in surveillance testing and in testing used for clinical situations requiring additional assessment. He cited potential use cases including treatment monitoring following rejection, immunosuppression management, delayed graft function and reducing biopsies.

CareDx said it has 21 transplant centers live on Epic Aura, an electronic medical record integration. The company expects half of transplant orders to flow through EMR integrations by year-end.

The company also launched a patient website and portal during the quarter. More than 5,000 patients had registered for the portal as of the earnings call, according to Hanna.

Specialty Oncology Integration Continues

Specialty Oncology revenue, which includes NavDx testing for HPV-driven cancers, was $12.5 million during the quarter. For comparison with Naveris’ reported results before the acquisition, CareDx said Specialty Oncology revenue grew 37% year over year and 5% sequentially. Specialty Oncology test volume was 15,150 tests, representing 35% growth from Naveris’ reported volume in the third quarter of 2025.

Specialty Oncology revenue per test was $823, above the company’s prior forecast of $775. Chief Operating Officer and Chief Financial Officer Keith Kennedy said CareDx moved NavDx onto its billing platform on Oct. 1 and brought revenue-cycle-management workflows in house.

Kennedy said management believes NavDx pricing could rise over time as the company develops evidence and expands adoption. He said the Medicare price for the test is $1,800, while adding that the company expects to discuss its outlook further on its fourth-quarter call.

CareDx is expanding its field team and medical presence for NavDx, enabling electronic orders through its Care portal and integrating NavDx ordering into Epic Aura. The company expects Epic-based ordering to begin by Jan. 1, 2027.

Hanna also discussed research evaluating NavDx in radiation de-escalation for HPV-driven head and neck cancer. He said two independent phase II studies presented at the American Society for Radiation Oncology meeting evaluated use of the test in post-surgical radiation and during primary radiation treatment. He cautioned that longer follow-up and additional evidence will be important.

Pipeline Programs Target 2027 Launches

CareDx said its two organic pipeline programs remain on track. AlloHeme, a recurrence-monitoring test for patients receiving cell therapy for acute myeloid leukemia and myelodysplastic syndromes, is expected to complete CLIA readiness activities before year-end, supporting a planned first-quarter 2027 commercial launch.

The company said an initial manuscript from the ACROBAT clinical-validation trial has been submitted for peer review. Hanna said results presented earlier this year showed that AlloHeme identified molecular relapse a median of 41 days before clinical diagnosis.

Hanna said CareDx plans a targeted commercial launch for AlloHeme, initially focusing on leading stem-cell and bone-marrow transplant centers rather than building a large sales organization. He said the test is expected to be launched with native Epic Aura ordering capability.

CareDx also expects to complete CLIA readiness activities for HistoMap Kidney before year-end, with broader commercial availability planned for 2027. HistoMap is designed to provide molecular information from kidney-biopsy tissue and complement AlloSure Kidney blood-based monitoring.

The company cited an independent study published in Transplantation that evaluated patients with microvascular inflammation. According to Hanna, 50% of patients classified by HistoMap as high risk experienced graft loss over up to six years of follow-up, compared with 15% of patients classified as low risk.

Guidance Raised

CareDx raised its full-year 2026 revenue outlook by $30 million to a range of $520 million to $530 million. At the midpoint, the guidance implies $525 million in revenue and 38% year-over-year growth.

The company increased full-year adjusted EBITDA guidance by $23 million to $90 million to $100 million. The midpoint of $95 million would represent 18% of revenue.

For the fourth quarter, CareDx’s implied guidance calls for total revenue of $131 million to $141 million and testing-services revenue of $112 million to $122 million. The company expects total testing volume of 76,000 to 80,000 tests, including 61,000 to 63,000 transplant tests and 15,000 to 17,000 Specialty Oncology tests.

Kennedy said CareDx expects fourth-quarter non-GAAP gross margin of 71% to 72% and adjusted EBITDA of $16 million to $26 million.

About CareDx (NASDAQ:CDNA)

CareDx, Inc is a healthcare diagnostics company focused on improving the care of organ-transplant patients. The company develops and commercializes noninvasive tests and digital tools intended to help physicians assess transplant-organ health, identify potential rejection, and support long-term patient management.

Its offerings include AlloSure donor-derived cell-free DNA tests for monitoring transplant recipients, AlloMap gene-expression testing for heart-transplant patients, and HeartCare, which combines AlloMap and AlloSure results.

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