Mon, May 5, 8:16 PM (6 days ago)
**Castle Biosciences, Inc. (CSTL) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $88.0 million, up 20.6% YoY. - **Net Loss:** $25.8 million, significantly higher than $2.5 million in Q1 2024. - **Operating Expenses:** $115.9 million, up 47.8% YoY. - **Cash Flow:** Net cash used in operating activities was $6.0 million. **Key Metrics:** - **Gross Margin:** 49.2%, down from 77.9% in Q1 2024. - **Test Reports Delivered:** Increased by 16.8% YoY. - **Dermatologic Tests:** DecisionDx-Melanoma and DecisionDx-SCC showed growth. - **Non-Dermatologic Tests:** TissueCypher saw a 117% increase in test report volumes. **Profit Margins:** - **Operating Loss:** $27.9 million, up from $5.5 million in Q1 2024. - **Loss Before Taxes:** $26.3 million, up from $2.5 million in Q1 2024. **Cash Flow:** - **Operating Cash Flow:** $6.0 million used, slightly improved from $6.8 million in Q1 2024. - **Investing Cash Flow:** $22.4 million used, up from $19.7 million in Q1 2024. - **Financing Cash Flow:** $1.6 million used, down from $10.6 million provided in Q1 2024. **Earnings Changes:** - **EPS:** Basic and diluted loss per share was $0.90, up from $0.09 in Q1 2024. **Future Operations Impact:** - **Reimbursement:** Loss of Medicare coverage for DecisionDx-SCC. - **Expansion:** Continued investment in research, development, and commercialization. - **Debt:** $8.9 million in long-term debt, with a $25.0 million credit line available. **Uncertainties:** - **Regulatory:** FDA's LDT final rule and its potential impact. - **Economic:** Macroeconomic conditions and their effects on operations. - **Market:** Competition and reimbursement trends. **Conclusion:** Castle Biosciences faces significant challenges, including increased operating expenses, loss of Medicare coverage for a key product, and regulatory uncertainties. However, the company continues to invest in growth and innovation, with a focus on expanding its test offerings and market reach. The financial performance reflects these strategic investments and the dynamic healthcare market landscape.