📊 CDNA Key Takeaways
Investment Thesis
CareDx demonstrates solid revenue growth of 13.8% and strong cash generation with $40.2M in free cash flow, supported by a fortress balance sheet with zero debt and $65.4M in cash. However, persistent unprofitability with -5.6% net margin and negative operating income of -$30.8M despite 13.9% gross margins suggest operational inefficiencies that must be resolved before considering the company investment-grade.
CDNA Strengths
- Strong revenue growth of 13.8% YoY demonstrates market demand for services
- Excellent liquidity position with 2.86x current ratio and zero long-term debt provides financial flexibility
- Positive free cash flow of $40.2M (10.6% FCF margin) indicates underlying business cash generation capability
- Adequate balance sheet with $65.4M cash and $303.1M stockholders equity supports runway for operations
CDNA Risks
- Sustained operating losses (-$30.8M operating income) and negative net margin (-5.6%) indicate business is not yet profitable at scale
- Gross margin of only 13.9% leaves minimal room for operating expenses; structural profitability challenges persist despite revenue growth
- Negative interest coverage ratio of -22.8x reflects inability to cover any debt obligations from operations; entirely dependent on cash reserves
- Diluted EPS deteriorated -143% YoY to -$0.40, signaling shareholder value destruction despite revenue gains
Key Metrics to Watch
- Operating margin trend - must demonstrate path to profitability with scale
- Gross margin expansion - critical to achieving profitability with current operating expense base
- Cash burn rate - monitor whether free cash flow remains positive as operating losses continue
- Operating income inflection point - key threshold for investment thesis validation
CDNA Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.86x current ratio provides a solid financial cushion.
CDNA Profitability Ratios
CDNA vs Healthcare Sector
How CareDx, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CDNA Balance Sheet & Liquidity
CDNA 5-Year Financial Trend
5-Year Trend Summary: CareDx, Inc.'s revenue has grown significantly by 28% over the 5-year period, indicating strong business expansion. The most recent EPS of $-3.54 indicates the company is currently unprofitable.
CDNA Growth Metrics (YoY)
CDNA Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $82.9M | $1.7M | $0.03 |
| Q2 2025 | $86.7M | -$4.6M | $-0.09 |
| Q1 2025 | $72.0M | -$10.4M | $-0.19 |
| Q3 2024 | $67.2M | -$1.4M | $-0.14 |
| Q2 2024 | $70.3M | -$1.4M | $-0.03 |
| Q1 2024 | $72.0M | -$16.7M | $-0.32 |
| Q3 2023 | $67.2M | -$16.9M | $-0.32 |
| Q2 2023 | $70.3M | -$19.6M | $-0.41 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CDNA Capital Allocation
CDNA SEC Filings
Access official SEC EDGAR filings for CareDx, Inc. (CIK: 0001217234)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CDNA
What is the AI rating for CDNA?
CareDx, Inc. (CDNA) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CDNA's key strengths?
Strong revenue growth of 13.8% YoY demonstrates market demand for services. Excellent liquidity position with 2.86x current ratio and zero long-term debt provides financial flexibility.
What are the risks of investing in CDNA?
Sustained operating losses (-$30.8M operating income) and negative net margin (-5.6%) indicate business is not yet profitable at scale. Gross margin of only 13.9% leaves minimal room for operating expenses; structural profitability challenges persist despite revenue growth.
What is CDNA's revenue and growth?
CareDx, Inc. reported revenue of $379.8M.
Does CDNA pay dividends?
CareDx, Inc. does not currently pay dividends.
Where can I find CDNA SEC filings?
Official SEC filings for CareDx, Inc. (CIK: 0001217234) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CDNA's EPS?
CareDx, Inc. has a diluted EPS of $-0.40.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.