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Castle Biosciences Announces Preliminary Unaudited Fourth Quarter and Full–Year 2025 Results

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2025 total revenue expected to exceed $340 million, above the previously guided range of $327-335 mi...

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AI Summary

Castle Biosciences reported strong preliminary results for 2025, with revenue expected to surpass $340 million and test report volumes increasing significantly. The recent launch of AdvanceAD-Tx may further enhance market reach in 2026, impacting future growth positively.

Sentiment Rationale

Revenue and test growth exceed expectations, suggesting strong future performance. Historical examples such as similar earnings surprises often lead to upward adjustments in stock prices.

Trading Thesis

CSTL is a strong buy in the near term as growth accelerates post-revenue report.

Market-Moving

  • Stronger-than-expected revenue growth may drive share price up significantly.
  • Increased test report volumes could imply higher future earnings.
  • Successful adoption of AdvanceAD-Tx may expand market share substantially.
  • Healthy cash reserves provide flexibility for future investments or R&D.

Key Facts

  • 2025 revenue expected over $340 million, exceeding guidance.
  • Core test report volumes increased by 37% from 2024.
  • New test AdvanceAD-Tx launched in November 2025, boosting market potential.
  • Strong year-end cash position of approximately $300 million anticipated.
  • Fourth quarter 2025 test reports grew by 42% year-over-year.

Companies Mentioned

  • CSTL (CSTL)
  • EXAS (EXAS)
  • AVEO (AVEO)
  • LH (LH)

Earnings

This news falls under 'Earnings' as it discusses preliminary performance results that could significantly influence investor sentiment and future stock valuations for CSTL, indicating a positive outlook due to revenue growth and successful product launches.

Castle Biosciences (CSTL) Releases Strong Preliminary Results for Q4 and Full-Year 2025

Castle Biosciences, Inc. (Nasdaq: CSTL), a leader in innovative diagnostic tests aimed at enhancing patient care, has announced preliminary unaudited performance results for the fourth quarter and the entire year ending December 31, 2025. The company's total revenue for 2025 is expected to exceed $340 million, surpassing previous guidance that ranged between $327 million and $335 million.

Highlights from Preliminary Q4 2025 Results

In the fourth quarter of 2025, Castle Biosciences reported significant growth in its core revenue drivers, with total test reports for DecisionDx-Melanoma and TissueCypher® increasing by 42% compared to the same quarter in 2024.

  • DecisionDx-Melanoma: 10,022 test reports delivered, up from 8,672 in Q4 2024.
  • TissueCypher: 11,803 test reports delivered, compared to 6,672 in Q4 2024.
  • AdvanceAD-Tx: Launched in November 2025, with over 50% of 150 clinician offices placing orders in the first five weeks.
  • MyPath® Melanoma: 1,045 test reports delivered, up from 879 in Q4 2024.
  • DecisionDx®-UM: 395 test reports delivered, slightly down from 424 in Q4 2024.

Year-End 2025 Performance Overview

Beyond the fourth quarter, Castle Biosciences demonstrated robust growth for the full year of 2025. The total test reports for the core revenue streams increased by 37% year-over-year.

  • DecisionDx-Melanoma: 39,083 test reports delivered in 2025, compared to 36,008 in 2024.
  • TissueCypher: 39,014 test reports delivered, up from 20,956 in 2024.
  • DecisionDx-SCC: 17,294 test reports delivered, compared to 16,348 in 2024.
  • MyPath Melanoma: 4,288 test reports in 2025, an increase from 3,909 in 2024.
  • DecisionDx-UM: 1,769 test reports delivered, compared to 1,699 in 2024.
  • IDgenetix: Discontinued in May 2025, with 3,605 test reports delivered in 2025 as opposed to 17,151 in 2024.

Strong Financial Position and Future Outlook

Castle Biosciences expects to close 2025 with approximately $116 million in cash and cash equivalents, alongside $184 million in marketable investment securities. According to Derek Maetzold, the company's president and CEO, this solid balance sheet positions CSTL favorably for potential growth in 2026 and beyond. Maetzold noted, “We exited 2025 exhibiting strong execution and leadership across our dermatologic and gastrointestinal franchises.”

The recent launch of **AdvanceAD-Tx**, a new test for systemic treatment decisions related to moderate-to-severe atopic dermatitis, is set to broaden Castle's addressable market significantly.

About Castle Biosciences

Castle Biosciences (Nasdaq: CSTL) is dedicated to improving patient outcomes through innovative diagnostic tests. Focusing primarily on dermatologic and gastroenterological disorders, Castle develops personalized, clinically actionable solutions that enhance disease management. To learn more, visit Castle Biosciences and connect with them on social media platforms.

Forward-Looking Statements

While the preliminary figures shared in this announcement provide valuable insights, they are based on initial management reviews and may be subject to adjustments as Castle completes its reporting processes. Stakeholders should exercise caution when relying on these estimates due to their preliminary nature.

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