greeksoup/ stock research
Stock research / United States / CAI / Q3 FY2026 / Earnings call

Caris Life Sciences, Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 4 November 2026: press release. Guidance figures: 1 raised, 1 kept. The quarter’s numbers.

Key takeaways

  • Revenue rose 27% year over year: Total revenue was $275.4 million, up $58.5 million or 27% from $216.8 million a year earlier, with molecular profiling services providing most of the increase. Source
  • Case volume and ASP drove molecular growth: Management attributed molecular profiling growth primarily to higher total clinical case volume and ASP improvements. Source
  • Operating expenses rose 42%: Operating expenses were $163.0 million, up $48.1 million or 42% from $114.9 million a year earlier. Source
  • Gross margin eased to 66%: Gross margin was 66%, against 68% a year earlier. Gross profit was $182.3 million, compared with $147.5 million. Source
  • Operating cash flow turned negative: Net cash used in operating activities was $22.2 million, against $62.4 million provided a year earlier, a 136% decrease. Source
  • Spending and inventory drove cash decline: Management attributed the decline to commercial expansion, marketing, inventory built for new solution launches, and research and development efforts. Source

“This was another record quarter, with approximately 61,500 clinical cases, up 21% year over year,”

David Dean Halbert, Founder, Chairman and CEO of Caris Life Sciences

Guidance

AreaPeriodFigureAgainst last quarter
Total revenue SourceFull year 2026$1.04 to $1.05 billionRaised from $1.03 billion to $1.04 billion
Clinical therapy selection volume growth SourceFull year 2026 versus full year 2025approximately 20%Kept

What changed from last quarter

  • Guidance raised: Full-year 2026 revenue guidance raised to $1.04 to $1.05 billion from $1.03 to $1.04 billion. Source
  • Guidance kept: Clinical therapy selection volume growth guidance reaffirmed at approximately 20%. Source
  • New: Caris Assure Therapy Response Monitoring launched, extending the platform to serial monitoring of treatment response. Source

Results and growth drivers

  • Revenue rose 27% year over year: Total revenue was $275.4 million, up $58.5 million or 27% from $216.8 million a year earlier, with molecular profiling services providing most of the increase. Source
  • Case volume and ASP drove molecular growth: Management attributed molecular profiling growth primarily to higher total clinical case volume and ASP improvements. Source
  • Growth slowed from second quarter: Total revenue in the second quarter 2026 had risen 45% year over year, compared with 27% in the third quarter.
  • Pharma R&D revenue rose in quarter: Pharma R&D services revenue was $12.7 million, up from $9.2 million, while molecular profiling services revenue was $262.7 million. Source

Products and launches

  • Caris Assure extended to treatment monitoring: Caris Assure Therapy Response Monitoring launched, extending the blood-based platform from therapy selection to serial monitoring of treatment response. Source
  • Enhanced Caris Assure sequencing deepened: Enhanced Caris Assure for therapy selection launched with sequencing depth reaching 40,000x and RNA reads increased to about 600M. Source
  • AI pancreatic signature validation published: Validation of the Caris AI Insights pancreatic cancer signature was published, reporting that an AI-based molecular signature can predict first-line treatment benefits. Source
  • Consumer campaigns introduced Caris Detect: Two national advertising campaigns, featuring Kevin Costner and Jordan Spieth, spotlighted early-stage cancer detection and introduced Caris Detect to consumers. Source

“Every case we run carries real molecular depth, whether Whole Exome, Whole Transcriptome, Whole Genome, or AI-driven digital pathology, and that depth is what allows us to move across the entire cancer journey.”

David Dean Halbert, Founder, Chairman and CEO of Caris Life Sciences

Operating costs and gross margin

  • Operating expenses rose 42%: Operating expenses were $163.0 million, up $48.1 million or 42% from $114.9 million a year earlier. Source
  • Expense growth from headcount and marketing: Management attributed the operating expense increase to headcount-related costs, higher research and development investment, and marketing expenditures. Source
  • Gross margin eased to 66%: Gross margin was 66%, against 68% a year earlier. Gross profit was $182.3 million, compared with $147.5 million. Source
  • Molecular cost of services increased: Cost of services for molecular profiling rose to $89.2 million from $67.0 million a year earlier. Source

Profitability and earnings

  • Net income declined year over year: Net income was $15.3 million, against $24.3 million. Diluted EPS was $0.05, compared with $0.08 a year earlier. Source
  • Adjusted EBITDA stayed positive: Adjusted EBITDA was $44.4 million in the quarter, compared with $51.2 million a year earlier. Nine-month Adjusted EBITDA was $126.3 million. Source
  • Nine-month results moved to net income: Nine-month net income was $14.1 million, against a net loss of $150.0 million in the prior-year period. Source

Cash flow, balance sheet and buybacks

  • Operating cash flow turned negative: Net cash used in operating activities was $22.2 million, against $62.4 million provided a year earlier, a 136% decrease. Source
  • Spending and inventory drove cash decline: Management attributed the decline to commercial expansion, marketing, inventory built for new solution launches, and research and development efforts. Source
  • Free cash flow was negative $39.7 million: Free cash flow was $(39.7) million for the quarter, after capitalized software and property purchases of $17.5 million. Source
  • Cash balance declined from year-end: Cash, cash equivalents and restricted cash were $665.3 million, against $797.8 million at December 31, 2025. Long-term indebtedness was $393.2 million. Source
  • Buyback authorization partly used: Of the up to $100.0 million repurchase program, about $72.1 million remains available, down from about $82.1 million reported in the second quarter. Source

Platform data and profile counts

  • Transcriptome and exome profiles reported: More than 849,000 whole transcriptome and 796,000 whole exome profiles were reported through September 30, 2026. Source
  • Transcriptome and exome counts rose: Compared with June 30, 2026, whole transcriptome profiles rose by about 66,000 and whole exome profiles by about 63,000.
  • Matched profiles held at 845,000: Total matched profiles were 845,000 at both dates, while total profiles rose to 1,200,000 from 1,130,000. Source

Coming up, as management said on 4 November 2026

  • Caris Confirm launch targeted before year-end: Management said Caris Confirm, a Whole Genome tumor-informed assay for minimal residual disease, is targeted to launch before year-end. Source

Figures management reported

FigureReported
Clinical cases Sourceapproximately 61,500, up approximately 21%
Total oncology tests Sourceover 358,000
Total profiles and matched profiles Source1,200,000 total profiles; 845,000 total matched profiles

Risks management discussed

  • Operational: Operating expenses rose 42%, with management citing headcount, research and development, and marketing spending. Source
  • Financial: Net cash used in operations was $22.2 million, and free cash flow was negative $39.7 million in the quarter. Source
  • Operational: Management cited inventory build-up for new solution launches as a use of cash in the quarter. Source

Earlier plans management reported on

  • Not stated: Management reaffirmed its earlier guidance for about 20% clinical therapy selection volume growth in 2026. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.