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    CAI
    Earnings call· Mar 2026(Q1 FY26)

    Caris Life Sciences Q1 FY26 earnings call CAI

    May 7, 2026 Source

    Executive summary

    Caris Life Sciences Q1 FY26 — Strong Revenue Growth and Profitability Driven by Molecular Profiling

    Caris Life Sciences delivered a strong start to FY26, driven by robust molecular profiling revenue and continued profitability, enabling strategic investments in product pipeline and commercial expansion. The company is leveraging its financial strength to fund the Caris Detect launch and other pipeline initiatives, while navigating a sales force realignment that impacted early quarter volumes but showed strong recovery by quarter-end.

    Highlights

    5

    • Total revenues increased 79% year-over-year to $216 million.

    • Molecular profiling services revenues grew 85% year-over-year to $211 million.

    • Achieved positive adjusted EBITDA of $26 million and positive free cash flow of $22.5 million for the fourth consecutive quarter.

    • Gross margins improved to 65% on a GAAP basis, up from 47% in Q1 last year.

    • Refinanced $400 million debt facility, saving approximately $6 million in annual interest and extending maturity to April 2031.

    Concerns

    2

    • Pharma and research revenue decreased to $5.4 million from $6.8 million in Q1 2025, though expected to flow through later in the year.

    • Q1 completed cases were modestly below initial expectations due to timing and sales realignment, though activations improved sequentially.

    Guidance & targets

    7
    CategoryTargetConfidence
    Full-year volume growth - Tissue
    low teens
    high materiality
    High
    Full-year volume growth - Blood
    high 50s to low 60s
    high materiality
    High
    Full-year total revenue
    reconfirmed
    high materiality
    High
    Q2 sequential volume growth
    10%
    medium materiality
    High
    Q2 total revenue growth
    32%
    medium materiality
    High
    Q2 CapEx
    $30 million
    medium materiality
    High
    Q2 Operating Expenses
    over $140 million
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Molecular Profiling Services
    Strong performance driven by increased volumes and improved ASPs, benefiting from the MI Cancer Seek launch and effective market access. Sales realignment in January led to sequential improvement in activations in February and March.
    Clinical case volumes: 52,800 (up 15% YoY)Tissue cases: 43,600Caris Assure cases: 9,200Clinical ASP increase: 61%Tissue ASP: >$4,300 (up 70%)Blood ASP: <$2,500 (up 14%)MI Cancer Seek volume contribution: >75% of tissue volume in Q1MI Cancer Seek covered lives: >225 millionCaris Assure volume growth: 58% YoY (up 7% sequentially)Orders submitted electronically: >70%Physicians using EMR integrations: >3,000
    		$211 million85%——
    Pharma and Research
    Revenue was lower year-over-year due to deliverable movement of Discovery and data businesses under contract, with revenue expected to flow through over the balance of the year, supported by improved contract activity.
    		$5.4 million-20.6% (vs $6.8 million in Q1 2025)——

    Operational metrics

    32
    Total Revenues
    $216 millionup 79% year-over-year
    Q1 FY26

    Strong start to the year, driven primarily by molecular profiling.

    Adjusted EBITDA
    $26 millionpositive (fourth consecutive quarter)
    Q1 FY26

    Reflects continued profitability and financial discipline while ramping up investments.

    Cash on Hand
    $825 millionincrease of $23.4 million in the quarter
    Q1 FY26

    Balance sheet continues to strengthen.

    Annual Interest Savings from Debt Refinancing
    $6 million
    Annual

    Result of refinancing the $400 million credit facility.

    Gross Margin (GAAP)
    65%up from 47% in Q1 last year
    Q1 FY26

    Improved due to strong revenue performance and operating leverage.

    Operating Expenses
    $136 millionup from $132 million in Q4
    Q1 FY26

    Reflects increased investment in the business.

    Purchases of Property and Equipment (CapEx)
    $10 millionup from $5.1 million in Q4
    Q1 FY26

    Preparing for pipeline launches, including early detection.

    Ordering Oncologists
    6,100
    Q1 FY26

    Supporting more than 6,100 ordering oncologists, with ~70% of orders through EHR and portal channels.

    Data Set Profiled Cases
    1.07 million
    Q1 FY26

    Data set surpassed 1.07 million profiled cases, forming the foundation for AI models.

    Precision Oncology Alliance Members
    100
    Q1 FY26

    Reached an important milestone with the addition of the 100th member.

    Sales Territories
    146expanded from 82
    Q1 FY26

    Realignment of sales teams in January 2026 to improve coverage and execution.

    Activations (February and March)
    20%year-over-year growth
    February-March FY26

    Followed sales realignment, reinforcing confidence in underlying demand trajectory.

    Full Quarter Activations
    17%year-over-year growth
    Q1 FY26

    Overall growth in activations for the quarter.

    Completed Cases Exit Run Rate
    56,000roughly
    Q1 FY26 exit

    Based on completion cadence in February and March, supporting confidence in future volumes.

    Commercial Team Members
    270new
    Q1 FY26 end

    Continuing to build out the field organization towards the 300-person goal.

    Caris Detect Stage 1 and 2 Sensitivity
    60.3%
    Achieve 1 study

    Meaningful result in early detection, reinforcing conviction in whole genome sequencing approach.

    Caris Detect Stage 1 Sensitivity
    56.8%
    Achieve 1 study

    Performance by stage for Caris Detect.

    Caris Detect Stage 2 Sensitivity
    67.7%
    Achieve 1 study

    Performance by stage for Caris Detect.

    Caris Detect Stage 3 Sensitivity
    79%
    Achieve 1 study

    Performance by stage for Caris Detect.

    Caris Detect Stage 4 Sensitivity
    98.6%
    Achieve 1 study

    Performance by stage for Caris Detect.

    Caris Detect Benign Tumor and High-Risk Patient Specificity
    96%
    Achieve 1 study

    Alongside 99.2% asymptomatic specificity, showing a strong balance between sensitivity and specificity.

    Caris Detect Stage 1 and 2 Sensitivity - Breast
    53.7%
    Achieve 1 study

    Cancer type readout for Caris Detect.

    Caris Detect Stage 1 and 2 Sensitivity - Prostate
    74.1%
    Achieve 1 study

    Cancer type readout for Caris Detect.

    Caris Detect Stage 1 and 2 Sensitivity - Lung
    73.4%
    Achieve 1 study

    Cancer type readout for Caris Detect.

    Caris Detect Stage 1 and 2 Sensitivity - Uterus
    60.6%
    Achieve 1 study

    Cancer type readout for Caris Detect.

    Caris Detect Stage 1 and 2 Sensitivity - Bowel
    61.8%
    Achieve 1 study

    Cancer type readout for Caris Detect.

    Caris Detect Stage 1 and 2 Sensitivity - Head and Neck
    81.3%
    Achieve 1 study

    Cancer type readout for Caris Detect.

    Caris Detect Stage 1 and 2 Sensitivity - Pancreatic
    70%
    Achieve 1 study

    Cancer type readout for Caris Detect.

    Caris ChromoSeq MolDX Price
    $3,228
    MolDX

    Price for the newly launched Caris ChromoSeq.

    Caris ChromoSeq Addressable Market
    50,000
    Annual

    Estimated patient population for the 3 indications set forth in MolDX.

    MRD RNA Profiling Reads (Caris Assure)
    600 millionup from 5 million reads
    Current

    Version of Assure submitted to New York State significantly increases RNA profiling.

    Liquid Product Specialist Team Growth
    135%quarter-over-quarter growth in targets
    Q1 FY26

    Expanded team focused on helping appropriate patients get blood testing.

    Industry KPIs

    5
    MetricValueDetails
    Launch access metrics>225 millioncovered lives
    Pipeline read out calendarAchieve 1 final readout completed
    Regulatory approvals filingsCaris ChromoSeq MolDX coverage
    Clinical trial efficacy safety data60.3%%
    Cumulative patients uptake since launch1.07 millionprofiled cases

    Product announcements

    3
    ProductTypeDetails
    Caris ChromoSeqlaunch
    Caris MI Claritylaunch
    Caris Detectlaunch

    Deals & partnerships

    2
    Blue Owl and BlackstoneRefinancing of credit facility$400 millionextended to April 2031 (3 years from Jan 2028)

    New debt facility offers many advantages, providing additional strategic flexibility.

    EverlywellCommercial launch partner for Caris Detect

    Caris Detect multi-cancer early detection is getting ready for commercial launch with Everlywell, with plans to add additional channel partners.

    Risks & headwinds

    2
    Sales force realignment impact on Q1 volumesQ1 FY26

    Q1 completed cases modestly below initial expectations; January was a transition month.

    Mitigation: Activations in February and March grew ~20% YoY, reinforcing demand. Expect 10% sequential volume growth in Q2 as timing gap normalizes and realignment benefits flow through.

    Pharma and research revenue timingQ1 FY26

    $5.4 million in Q1 FY26 vs $6.8 million in Q1 FY25

    Mitigation: Revenue delta is due to deliverable movement of Discovery and data businesses under contract, expected to flow through over the balance of the year, supported by improved contract activity.

    What to watch in Q2 FY26

    4

    Q2 sequential volume growth

    Q2 FY26
    CurrentQ1 completed cases: 52,800
    TargetOver 58,000 cases (10% sequential growth)

    Why it matters

    Verifies the effectiveness of the sales force realignment and the underlying demand trajectory, crucial for full-year guidance achievement.

    So what our expectation is now for Q2 is, over 58,000 cases, which would be a 10% sequential growth from Q1.

    Q&A highlights

    5

    What was the impact of sales realignment on tissue volumes, and how confident are you in achieving the 20% volume growth target given the Q1 start?

    The sales realignment caused a slower start in January, but tissue volumes improved significantly in February and March. The company is confident in achieving low teens tissue growth and high 50s to low 60s blood growth for the full year, supported by the strong exit rate from Q1.

    “Yes. And one of the reasons why we also disclosed kind of the exit rate on the completions for February and March is what also gives us confidence. You can see based on those numbers, like we've improved dramatically on the tissue front from where we were running on a monthly rate last year with over 15,500 for kind of on average for February and March. So we believe that continued trend is going to benefit us as we go into Q2. So we feel good about the low teens guidance.”

    asked by Alexa Chan · answered by Unknown Executive

    2 min read6 chapters

    Detailed Narrative

    01

    Molecular Profiling Performance and ASP Growth

    Caris's molecular profiling business was the primary driver of Q1 FY26 revenue, growing 85% year-over-year to $211 million. This growth was fueled by a 15% increase in clinical case volumes and a 61% increase in average selling price (ASP) for comprehensive profiling tests. Tissue ASP rose 70% to over $4,300, and blood ASP increased 14% to just under $2,500, reflecting successful market access and billing efforts, particularly from the MI Cancer Seek launch.

    02

    Sales Force Realignment and Volume Acceleration

    The company completed a significant sales team realignment in January 2026, expanding territories from 82 to 146 and building out the field organization. While January was a transition month, activations in February and March grew approximately 20% year-over-year, reinforcing demand and supporting a quarterly exit run rate of roughly 56,000 completed cases. This momentum is expected to drive sequential volume growth of 10% in Q2.

    03

    Caris Detect Achieve 1 Data Readout

    The final readout for the Achieve 1 study for Caris Detect demonstrated a 60.3% Stage 1 and Stage 2 sensitivity with 99.2% asymptomatic specificity across a 3,014-subject high-risk cohort. Sensitivity increased with stage, from 56.8% in Stage 1 to 98.6% in Stage 4. The results were generated using only one of nine potential pillars, indicating future improvement potential. A beta launch has commenced, with commercial launch planned for Q2 with Everlywell.

    04

    New Product Launches and Pipeline Progress

    Caris launched two new products: Caris ChromoSeq, a therapy selection asset for hematological cancers using whole genome technology, and Caris MI Clarity, a prognostic test for breast cancer recurrence risk using digital pathology. The pipeline also includes progress in MRD (minimal residual disease) solutions, with tumor-naive (colorectal cancer focus) and tumor-informed (pan-tumor) developments underway. MRD is identified as the next key priority after current launches.

    05

    Financial Strength and Capital Allocation

    Caris maintained strong financial discipline, achieving positive adjusted EBITDA ($26 million) and free cash flow ($22.5 million) for the fourth consecutive quarter. Cash on hand increased to over $825 million. The company refinanced its $400 million debt facility, reducing annual interest costs by $6 million and extending maturity to April 2031, with an additional $300 million delayed draw term loan for strategic acquisitions. This financial strength supports ongoing investments in the product pipeline and commercial expansion.

    06

    Reimbursement Framework and PAMA

    Management clarified its reimbursement framework, stating that both MI Cancer Seek and Caris Assure assays are Clinical Diagnostic Laboratory Tests (CDLTs), not Advanced Diagnostic Laboratory Tests (ADLTs). This means they are reported under PAMA, with data submitted on May 1. The company does not expect any downward adjustments from this process and supports broader CRUSH efforts, believing its pricing is stable.

    AI-generated summary of the company’s earnings call. Not investment advice.