Education
About Us
Working with TipRanks
Follow Us
Castle Biosciences (CSTL)
NASDAQ:CSTL
Top Page
Castle Biosciences
(NASDAQ:CSTL)
Select Model
Select Model
Rating:63Neutral
Price Target:
$41.00
▲(2.78% Upside)
Castle Biosciences' overall score is driven by strong technical momentum and positive earnings call highlights, including increased revenue guidance and successful product launches. However, financial performance and valuation concerns, such as negative profitability and a high P/E ratio, weigh on the score.
Positive Factors
Revenue Growth
The raised revenue guidance indicates strong market demand and effective product adoption, suggesting sustained growth potential.
Product Innovation
The launch of AdvanceAD-Tx expands the product portfolio into a new market, potentially increasing revenue streams and market presence.
Clinical Validation
Endorsement by experts enhances the credibility and adoption of DecisionDx-Melanoma, supporting long-term growth and competitive advantage.
Negative Factors
Profitability Challenges
Ongoing net losses highlight challenges in achieving profitability, which may impact financial sustainability and investment capacity.
Gross Margin Decline
A declining gross margin suggests rising costs, which could pressure future profitability and necessitate cost management improvements.
Reimbursement Uncertainty
Uncertainty in SCC test reimbursement could affect revenue predictability and financial planning, posing a risk to future cash flows.
Castle Biosciences (CSTL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.16B
Dividend YieldN/A
Average Volume (3M)335.38K
Price to Earnings (P/E)―
Beta (1Y)0.50
Revenue Growth10.15%
EPS Growth-295.52%
CountryUS
Employees784
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-0.02
Shares Outstanding29,188,660
10 Day Avg. Volume292,702
30 Day Avg. Volume335,376
Financial Highlights & Ratios
PEG Ratio-0.31
Price to Book (P/B)1.62
Price to Sales (P/S)2.23
P/FCF Ratio20.26
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price Target
$47.20Price Target Upside18.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Castle Biosciences Business Overview & Revenue Model
Company DescriptionCastle Biosciences, Inc., a commercial-stage diagnostics company, focuses to provide diagnostic and prognostic testing services for dermatological cancers. Its lead product is DecisionDx-Melanoma, a multi-gene expression profile (GEP) test to identify the risk of metastasis for patients diagnosed with invasive cutaneous melanoma. The company also offers DecisionDx-UM test, a proprietary GEP test that predicts the risk of metastasis for patients with uveal melanoma, a rare eye cancer; DecisionDx-SCC, a proprietary 40-gene expression profile test that uses an individual patient's tumor biology to predict individual risk of squamous cell carcinoma metastasis for patients with one or more risk factors; and DecisionDx DiffDx-Melanoma and myPath Melanoma, a proprietary GEP test to diagnose suspicious pigmented lesions. It offers test services through physicians and their patients. The company was founded in 2007 and is headquartered in Friendswood, Texas.
How the Company Makes MoneyCastle Biosciences generates revenue primarily through the sale of its diagnostic tests, which are utilized by healthcare providers to assess cancer risk and guide treatment decisions. The company operates a laboratory that processes these tests, and it bills healthcare insurers and patients for these services. Key revenue streams include reimbursement from insurance companies, direct payments from patients, and partnerships with healthcare providers and institutions that utilize its testing services. Additionally, Castle Biosciences may benefit from collaborations or licensing agreements that enhance its market reach and product offerings.
Castle Biosciences Key Performance Indicators (KPIs)
Castle Biosciences Earnings Call Summary
Earnings Call Date:Nov 03, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Neutral
Castle Biosciences demonstrated strong revenue growth, launched a new dermatological test, and achieved record test report volumes. However, challenges include a decline in gross margin, reporting a net loss, and uncertainties in SCC reimbursement. Despite these challenges, the company's positive momentum and strategic initiatives suggest a well-balanced performance.Q3-2025 Updates
Positive Updates
Launch of AdvanceAD-Tx
Castle Biosciences announced the launch of AdvanceAD-Tx, a test designed to guide systemic treatment selection for patients with moderate to severe atopic dermatitis, marking a significant milestone in dermatological precision medicine.
Revenue Growth and Guidance Increase
Revenue for the third quarter reached $83 million, and the company raised its 2025 revenue guidance to $327 million to $335 million, up from $310 million to $320 million.
Record Test Report Volume
Total test report volume was 26,841, with core revenue drivers growing 36% compared to the third quarter of 2024. DecisionDx-Melanoma reports increased by 12% year-over-year, surpassing 10,000 reports for the first time in a single quarter.
TissueCypher Achievements
TissueCypher delivered 10,609 test reports, a 75% year-over-year growth, and exceeded 10,000 test reports in a single quarter for the first time.
Positive Market Feedback for AdvanceAD-Tx
Approximately 80% of clinicians sampled stated they would definitely or probably use AdvanceAD-Tx due to its potential to match treatments to immune profiles.
Strong Cash Position
As of September 30, 2025, Castle Biosciences had cash, cash equivalents, and marketable securities of $287.5 million, supported by a healthy cash flow from operations.
Negative Updates
Gross Margin Decline
Gross margin for the third quarter was 74.7%, down from 79.2% in the third quarter of 2024. Adjusted gross margin also decreased to 76.8% from 81.9% in the same period.
Net Loss Reported
Castle Biosciences reported a net loss of $0.5 million for the third quarter of 2025, compared to net income of $2.3 million in the third quarter of 2024.
Uncertainty in SCC Reimbursement
Reconsideration requests for SCC test coverage by Medicare contractors were accepted but with no specified timeline for a final decision, creating uncertainty in future reimbursement.
Operating Expense Increase
Total operating expenses, including cost of sales, increased to $89.8 million from $80.7 million in the third quarter of 2024, driven by higher personnel costs and marketing expenses.
Company Guidance
During Castle Biosciences' third-quarter 2025 conference call, the company provided a robust outlook, raising its full-year revenue guidance to between $327 million and $335 million, up from a previous range of $310 million to $320 million. This optimistic revision follows a strong quarter where revenue reached $83 million, driven by a test report volume of 26,841, marking a 36% increase in core revenue drivers compared to the same period in 2024. The DecisionDx-Melanoma test alone delivered 10,459 reports, a 12% year-over-year increase, while the TissueCypher test achieved a notable 75% growth, hitting over 10,000 reports in a single quarter for the first time. The company also announced the launch of AdvanceAD-Tx, a test aimed at improving systemic treatment selection for atopic dermatitis, tapping into a $33 billion U.S. market opportunity. Despite these advancements, the gross margin slightly declined to 74.7% from 79.2% in the previous year, due to higher personnel and laboratory costs. Castle remains focused on strategic initiatives and disciplined execution to drive long-term growth and shareholder value.Castle Biosciences Financial Statement Overview
Summary
Castle Biosciences shows a strong gross profit margin and stable balance sheet with low leverage. However, challenges include declining revenue growth, negative profitability, and negative free cash flow growth, which need addressing to improve financial health.Income Statement
Castle Biosciences has shown a volatile revenue growth trajectory, with a significant decline in the TTM period. The gross profit margin remains strong, indicating efficient cost management, but the company struggles with profitability as reflected in negative net profit and EBIT margins. The recent revenue contraction poses a challenge to future growth.Balance Sheet
The balance sheet is relatively stable with a low debt-to-equity ratio, indicating conservative leverage. However, the negative return on equity suggests inefficiencies in generating returns from equity investments. The equity ratio is healthy, suggesting a strong capital structure.Cash Flow
Cash flow analysis reveals a decline in free cash flow growth, but the company maintains a positive operating cash flow to net income ratio. The free cash flow to net income ratio is moderate, indicating some ability to convert earnings into cash. However, the negative growth in free cash flow is a concern.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 343.53M | 332.07M | 219.79M | 137.04M | 94.08M | 62.65M |
| Gross Profit | 274.63M | 271.86M | 174.81M | 105.03M | 78.26M | 52.96M |
| EBITDA | 25.79M | 38.14M | -45.02M | -58.34M | -36.60M | -7.09M |
| Net Income | -12.24M | 18.25M | -57.47M | -67.14M | -31.29M | -10.28M |
Balance Sheet | ||||||
| Total Assets | 562.79M | 531.24M | 453.34M | 447.33M | 462.57M | 439.33M |
| Cash, Cash Equivalents and Short-Term Investments | 287.54M | 293.13M | 243.10M | 258.63M | 329.63M | 409.85M |
| Total Debt | 37.14M | 26.34M | 15.34M | 13.40M | 8.20M | 0.00 |
| Total Liabilities | 95.74M | 75.40M | 62.07M | 48.18M | 50.83M | 23.64M |
| Stockholders Equity | 467.05M | 455.83M | 391.27M | 399.15M | 411.74M | 415.69M |
Cash Flow | ||||||
| Free Cash Flow | 25.38M | 36.54M | -19.25M | -47.29M | -22.47M | 5.11M |
| Operating Cash Flow | 61.78M | 64.87M | -5.63M | -41.66M | -18.98M | 9.87M |
| Investing Cash Flow | -63.43M | -50.14M | -16.18M | -166.54M | -66.66M | -4.75M |
| Financing Cash Flow | -7.76M | 6.14M | -2.30M | 1.51M | 5.42M | 305.89M |
Castle Biosciences Technical Analysis
Positive
39.89
Price Trends
36.43
Positive
29.58
Positive
24.05
Positive
Market Momentum
0.91
Positive
59.12
Neutral
72.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSTL, the sentiment is Positive. The current price of 39.89 is above the 20-day moving average (MA) of 39.40, above the 50-day MA of 36.43, and above the 200-day MA of 24.05, indicating a bullish trend. The MACD of 0.91 indicates Positive momentum. The RSI at 59.12 is Neutral, neither overbought nor oversold. The STOCH value of 72.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSTL.
Castle Biosciences Risk Analysis
Castle Biosciences disclosed 76 risk factors in its most recent earnings report. Castle Biosciences reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Castle Biosciences Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $885.67M | 14.44 | 24.11% | ― | 14.46% | ― | |
63 Neutral | $1.16B | -88.62 | -2.69% | ― | 10.15% | -295.52% | |
55 Neutral | $1.66B | -14.45 | -12.99% | ― | 10.10% | -44.29% | |
53 Neutral | $862.15M | -19.90 | -3.80% | ― | 13.60% | 74.64% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $743.74M | -9.56 | -43.69% | ― | -21.02% | 47.74% | |
41 Neutral | $611.48M | -1.51 | -72.52% | ― | 0.21% | -233.51% |
* Healthcare Sector Average
CSTL
Castle Biosciences
39.89
13.74
52.54%
MYGN
Myriad Genetics
6.56
-7.72
-54.06%
NEO
NeoGenomics
12.83
0.20
1.58%
CDNA
CareDx
17.22
-7.85
-31.31%
FLGT
Fulgent Genetics
27.89
9.95
55.46%
PSNL
Personalis
8.38
3.03
56.54%
Castle Biosciences Corporate Events
Business Operations and StrategyFinancial DisclosuresProduct-Related Announcements
Castle Biosciences Raises Revenue Guidance Amid Strong Q3
Positive
Nov 3, 2025
Castle Biosciences reported strong financial results for the third quarter of 2025, with revenue reaching $83 million and a significant increase in test report volumes for their core products. Despite challenges such as the Novitas LCD and discontinuation of IDgenetix, the company raised its full-year revenue guidance to $327-335 million. The launch of AdvanceAD-Tx, a new test for atopic dermatitis, highlights their commitment to addressing unmet needs in clinical dermatology.
The most recent analyst rating on (CSTL) stock is a Buy with a $23.56 price target. To see the full list of analyst forecasts on Castle Biosciences stock, see the CSTL Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.