Caris Raises 2026 Revenue Outlook To $1.04 Billion To $1.05 Billion As Quarterly Cash Flow Turns Negative
Third-quarter revenue grew 27%, but operating costs jumped 42% and net income fell to $15.3 million from $24.3 million.
Caris Life Sciences, which sequences tumors and blood to help oncologists pick cancer therapies, raised its 2026 revenue forecast to $1.04 billion to $1.05 billion after third-quarter revenue rose 27% to $275.4 million, the company said Wednesday. Spending on staff, research and marketing climbed faster than sales, though, cutting profit and pushing the quarter's cash flow negative.
Sales up 27%, profit down
Revenue was $216.8 million a year earlier. Molecular profiling services, the core testing business, brought in $262.7 million, up 27% from $207.6 million, which the company attributed to higher case volume and better average selling prices.
Clinical cases rose about 21% to roughly 61,500. Gross margin slipped to 66% from 68%.
Operating expenses rose 42% to $163.0 million from $114.9 million, which the company said reflected headcount, research and development, and marketing. Net income fell to $15.3 million, or $0.05 a share, from $24.3 million, or $0.08 diluted, a year ago. Adjusted EBITDA was $44.4 million, against $51.2 million a year earlier.
Cash burn in the quarter
Operating activities used $22.2 million of cash in the quarter, against $62.4 million provided a year earlier. The company cited commercial expansion, marketing, inventory built for new launches and research. Free cash flow was negative $39.7 million, versus positive $55.3 million.
For the first nine months, operating cash flow stayed positive at $39.1 million, and free cash flow was negative $10.8 million. Cash and equivalents stood at $665.3 million on September 30, down from $797.8 million at year-end; supplies on the balance sheet rose to $138.4 million from $63.6 million.
Guidance and launches
Caris now expects 2026 revenue growth of 28% to 29% and kept its outlook for clinical therapy selection volume growth of about 20%.
Founder, Chairman and CEO David Dean Halbert said the company's Caris Confirm, a whole-genome test for minimal residual disease, is "targeted to launch before year-end." Caris also launched a therapy response monitoring version of its Caris Assure blood test and ran two national ad campaigns featuring Kevin Costner and Jordan Spieth.
The company's buyback authorization is $100.0 million, with about $72.1 million still available.
The company reported more than 1,200,000 total profiles through September 30, the database behind its drug-development business.
