Castle Biosciences ( (CSTL) ) has released its Q1 earnings. Here is a breakdown of the information Castle Biosciences presented to its investors.
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Castle Biosciences, Inc., a diagnostics company focused on innovative tests for patient care, reported its financial results for the first quarter of 2025, showing significant growth in revenue and test report volume. The company, which operates primarily in the healthcare sector, specializes in tests for skin cancers, Barrett’s esophagus, and mental health conditions.
In the first quarter of 2025, Castle Biosciences achieved a 21% increase in revenue compared to the same period in 2024, reaching $88 million. The company also reported a 33% rise in total test reports for its core revenue drivers. As a result of this strong performance, Castle Biosciences raised its full-year revenue guidance to $287-297 million.
Key financial highlights include a gross margin of 49% and an adjusted gross margin of 81%. The company delivered 24,402 total test reports, marking a 17% increase over the previous year. Notably, the DecisionDx-Melanoma test surpassed 200,000 orders, underscoring its clinical value and impact on patient outcomes. Despite a net loss of $25.8 million, Castle Biosciences reported an adjusted EBITDA of $13 million, reflecting operational efficiency.
Castle Biosciences continues to focus on growth initiatives, including the acquisition of Previse, a gastrointestinal health company. The company also discontinued its IDgenetix test offering to streamline operations. Looking forward, Castle Biosciences remains committed to enhancing patient care through its proprietary test portfolio and expects continued growth in its revenue and test volumes throughout 2025.