Castle Biosciences ( (CSTL) ) has released its Q2 earnings. Here is a breakdown of the information Castle Biosciences presented to its investors.
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Castle Biosciences, Inc., a diagnostics company specializing in innovative tests for skin cancers, Barrett’s esophagus, and uveal melanoma, has reported its financial results for the second quarter of 2025. The company is known for its patient-centric approach and its commitment to transforming disease management through advanced diagnostic solutions.
In the second quarter of 2025, Castle Biosciences achieved revenues of $86 million, with a notable increase in test report volumes for its core products, DecisionDx-Melanoma and TissueCypher. The company has raised its full-year revenue guidance to $310-320 million, reflecting its optimistic outlook for the remainder of the year.
Key financial highlights include a 33% year-over-year increase in test reports for DecisionDx-Melanoma and TissueCypher, despite challenges such as the Novitas local coverage determination affecting DecisionDx-SCC and the discontinuation of IDgenetix. The company reported a gross margin of 77% and an adjusted gross margin of 80%. Net income for the quarter was $4.5 million, down from $8.9 million in the same period last year, with adjusted EBITDA at $10.4 million.
Strategically, Castle Biosciences completed the acquisition of Previse and entered a collaboration with SciBase, both aimed at enhancing its long-term growth potential. The company also received FDA Breakthrough Device designation for its DecisionDx-Melanoma test, underscoring its commitment to advancing patient care through innovative diagnostics.
Looking ahead, Castle Biosciences remains focused on executing its growth initiatives and expanding its test portfolio. The management is confident in its ability to deliver sustainable value to stakeholders, driven by its strategic acquisitions and collaborations, as well as its ongoing commitment to innovation in diagnostics.