Castle Biosciences Raises 2026 Revenue Forecast to $385–395 Million
Key Facts
On November 5, Castle Biosciences raised its 2026 revenue forecast to a range of $385–395 million, from $365–375 million previously, in light of third-quarter results and growth in test volumes. The company said in its statement that it expects to generate revenue within the new range this year. Third-quarter revenue was $102.9 million, compared with $83.0 million in the same period of 2025. The update puts the company’s annual estimate above its previous range, while revenue for the first nine months of the year reached $290.1 million, compared with $257.2 million a year earlier. The results show diverging trends in the two main tests, with TissueCypher driving report growth while DecisionDx-Melanoma reports declined.
Castle said the increase in third-quarter revenue came mainly from non-dermatologic tests, whose revenue rose $20.5 million year over year. The company attributed the increase primarily to 47% growth in the volume of Barrett’s esophagus TissueCypher test reports during the quarter, and to a lesser extent to a higher realized average selling price. TissueCypher reports totaled 15,574 in the quarter, compared with 10,609 in the corresponding period of 2025. For the nine months ended September 30, the number of reports reached 42,307, compared with 27,211 a year earlier. DecisionDx-Melanoma reports totaled 10,177 in the third quarter, down from 10,459 in the same quarter of 2025. Total reports for the two core tests therefore rose 22% year over year in the quarter.
Revenue growth and improvement in some operating metrics were reflected in adjusted earnings before interest, taxes, depreciation and amortization, which rose to $12.7 million in the third quarter from $9.2 million a year earlier. But the company recorded a net loss of $4.1 million, compared with a loss of $0.5 million in the corresponding period of 2025. The current-quarter loss included $11.2 million in non-cash, stock-based compensation expenses, according to the company’s statement. Net cash provided by operations was $19.7 million, compared with $22.6 million in the third quarter of the previous year. These metrics present a mixed picture of the quarter: higher revenue and adjusted earnings, alongside a wider net loss and lower operating cash flow.
Castle had $277.7 million in cash and cash equivalents and marketable investment securities on September 30, 2026. The annual revenue range was initially set at $340–350 million in the 2025 results announcement issued in February 2026, before the company later raised it to $365–375 million and then to the current range. The company recorded annual revenue of $344.2 million in 2025, compared with $332.1 million in 2024. At the time, it said revenue growth excluding DecisionDx-SCC and IDgenetix was 34%, amid changes that included Medicare coverage for the DecisionDx-SCC test, a refocusing of commercial efforts and the discontinuation of IDgenetix. It also reported that total reports for the two core tests rose 37% in 2025, while TissueCypher reports alone increased 86%.
The company maintained its forecast for positive adjusted earnings before interest, taxes, depreciation and amortization in the fourth quarter of 2026 and for full-year 2026 and 2027. Meanwhile, Investing.com reported that third-quarter revenue of $102.89 million exceeded the average analyst estimate of $92.41 million. The platform also put the new annual revenue range of $385–395 million against a consensus estimate of $374.10 million. Castle shares, listed under the ticker CSTL, closed at $34.20 in the November 5 session, according to EL7 daily data. The available data did not include the stock’s trading range in that session.