Q3 2025 Castle Biosciences Inc Earnings Call Transcript
Key Points
- Castle Biosciences Inc (CSTL) launched Advanced ADTX, a first-in-class test for guiding systemic treatment selection for patients with moderate to severe atopic dermatitis.
- The company reported strong third-quarter revenue of $83 million, with a 36% growth in core revenue drivers compared to the third quarter of 2024.
- DecisionDX melanoma test achieved a milestone by surpassing 10,000 reports in a single quarter for the first time in the company's history.
- Tissue cipher test reported a 75% year-over-year growth, indicating increasing recognition of its value by clinicians.
- Castle Biosciences Inc (CSTL) raised its total revenue guidance for 2025 to $327 to $335 million, up from the previously provided range of $310 to $320 million.
- Gross margin decreased to 74.7% in the third quarter of 2025 from 79.2% in the same period of 2024.
- Net loss for the third quarter of 2025 was $0.5 million compared to net income of $2.3 million in the third quarter of 2024.
- Adjusted EBITDA for the third quarter was $9.2 million, down from $21.6 million for the comparable period in 2024.
- Reimbursement for the Advanced ADTX test is expected to be immaterial in 2026 as the company builds its reimbursement from ground zero.
- Sales and marketing expenses increased to $32.8 million in the third quarter of 2025, up from $29.8 million in the same period of 2024, due to higher personnel costs and marketing expenses.
Good afternoon and welcome to Castle Bioscience's 3rd quarter 2025 conference call. As a reminder, today's call is being recorded. We will begin today's call with opening remarks and introductions followed by a question-and-answer session. I would like to turn the call over to Camilla Zugro, Vice President, Investor Relations and Corporate Affairs. Please go ahead.
Thank you, operator. Good afternoon, everyone. Welcome to CASSO Bioscience's 3rd quarter 2025 results conference call. Joining me today are CASO's founder, President and Chief Executive Officer, Derek Mas, Chief Financial Officer Frank Stokes, and senior Vice President Medical Dr. Matthew Goldberg, board certified dermatologist, and dermatopathologist. Information recorded on this call speaks only as of today, November 3, 2025. Therefore, if you are listening to the replay or reading the transcript of this call, any time sensitive information may no longer be accurate. A recording of today's call
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