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    CAI
    Earnings call· Jun 2026(Q2 FY26)

    Caris Life Sciences Q2 FY26 earnings call CAI

    Aug 5, 2026 Source

    Executive summary

    Caris Life Sciences Q2 FY26 — Record Clinical Volume and Strong Financials Drive Raised Outlook

    Caris Life Sciences delivered a strong Q2 FY26, marked by record clinical volume and robust financial performance, driven by the successful realignment of its commercial strategy. The company's comprehensive molecular profiling platform continues to expand with new product launches, including Caris Detect for multi-cancer early detection and MIClarity V2, alongside pipeline advancements in MRD. This financial strength enables significant investment in capacity and product development, supporting a raised full-year revenue outlook despite potential near-term capacity constraints for new offerings.

    Highlights

    5

    • Achieved record clinical volume of 59,200 cases, an 18% increase year-over-year.

    • Reported record sequential case additions of 6,400 cases in the quarter.

    • Total revenue increased 45% year-over-year to $263.7 million.

    • Molecular profiling services revenue grew 55% year-over-year to $252.3 million.

    • Generated positive adjusted EBITDA of $55.7 million, up from $16.7 million last year, marking the fifth consecutive quarter of positive adjusted EBITDA and free cash flow ($6.4 million).

    Concerns

    4

    • Near-term demand for Caris Detect may run ahead of rollout capacity, potentially leading to back orders.

    • GAAP net loss narrowed to $0.6 million but included a $25 million one-time extinguishment charge for term loan refinancing.

    • Pharma R&D services revenue of $11.4 million reflected timing of deliverables, with a longer sales cycle than desired.

    • Free cash flow in Q3 is expected to be neutral due to significant investments in inventory and lab capacity for new product launches.

    Guidance & targets

    11
    CategoryTargetConfidence
    Full-year total revenue
    $1.03 billion to $1.04 billion
    high materiality
    High
    Full-year total revenue growth
    27% to 28%
    high materiality
    High
    Full-year clinical therapy selection volume growth
    approximately 20%
    medium materiality
    High
    Q3 clinical therapy selection volume growth
    20%
    medium materiality
    High
    Full-year GAAP operating expenses
    $595 million to $600 million
    medium materiality
    High
    Full-year adjusted EBITDA
    positive
    high materiality
    High
    Full-year free cash flow
    positive
    high materiality
    High
    Q3 EBITDA
    $10 million to $16 million
    medium materiality
    Medium
    Q3 Capital Expenditures
    $15 million to $20 million
    medium materiality
    High
    Q3 blended clinical ASP
    $3,800 to $3,900
    medium materiality
    High
    MRD launch
    back half of this year
    high materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Molecular Profiling Services
    Strong growth driven by increased volume and clinical ASP.
    		$252.3 million55%——
    Pharma R&D Services
    Revenue reflects timing of deliverables and focus on longer-term strategic partnerships.
    		$11.4 million———
    MI Profile tissue cases
    Reaccelerated growth in tissue volume, contributing to overall clinical case volume.
    Cases completed: 48,300
    		—13%11%—
    Caris Assure blood cases
    Continued strong growth in blood-based assays.
    Cases completed: 10,700
    		—50%17%—

    Operational metrics

    47
    Total clinical case volume
    59,200up 18% year-over-year, 12% sequential
    Q2 FY26

    Record quarter for clinical volume, driven by commercial engine investment.

    Sequential case additions
    6,400
    Q2 FY26

    Record sequential case additions, indicating strong momentum.

    Clinical oncology tests run
    over 345,000
    Q2 FY26

    Reflects the comprehensive nature of Caris' approach, where each case involves multiple tests.

    Whole Exome and Whole Transcriptome tests run
    over 114,000
    Q2 FY26

    Highlights the depth of sequencing performed per case.

    Molecular database patients
    over 1.13 million
    as of Q2 FY26

    Size of the proprietary molecular database used for AI training and comparative analyses.

    Molecular database Whole Exomes
    over 733,000
    as of Q2 FY26

    Component of the comprehensive molecular database.

    Molecular database Transcriptomes
    over 783,000
    as of Q2 FY26

    Component of the comprehensive molecular database.

    Molecular database matched cases with clinical outcomes
    approximately 843,000
    as of Q2 FY26

    Component of the comprehensive molecular database, enabling AI training on real-world outcomes.

    Precision Oncology Alliance members
    101
    Q2 FY26

    Growth in the alliance, adding UC San Francisco and Northwell Health.

    Total revenue
    $263.7 millionup 45% year-over-year
    Q2 FY26

    Strong revenue performance driven by clinical profiling.

    GAAP gross margin
    68%up from 63% last year and 65% last quarter
    Q2 FY26

    Improved gross margins reflecting operating leverage.

    Adjusted EBITDA
    $55.7 millionup from $16.7 million last year
    Q2 FY26

    Fifth consecutive quarter of positive adjusted EBITDA.

    Capital expenditures
    $22.1 million
    Q2 FY26

    Investments in MCED lab capacity and new product launches.

    Cash and investments balance
    $793 million
    quarter end

    Strong balance sheet providing strategic flexibility.

    Share repurchase program authorization
    $100 million
    authorized

    Board authorized program to return capital to shareholders.

    Share repurchase executed
    $18 million
    Q2 FY26

    Amount purchased in the open market during the quarter.

    Ordering oncologists supported
    more than 6,200
    Q2 FY26

    Broad reach of the platform to physicians.

    Orders through EHR and portal channels
    more than 74%
    Q2 FY26

    Indicates high adoption of digital ordering channels, up from just above 50% in Q1 last year.

    Commercial team members
    more than 290up from 270 at end of Q1
    end of Q2 FY26

    Continued build-out of the field organization.

    Sales territories
    146expanded from 82
    Q2 FY26

    Realignment and expansion of sales territories to improve coverage.

    Clinical ASP (blended base)
    over $3,850
    Q2 FY26

    New record for blended average selling price, demonstrating strength of approach.

    MI Cancer Seek volume
    approximately 75%
    Q2 FY26

    Proportion of MI Profile volume attributed to MI Cancer Seek.

    MI Cancer Seek covered lives
    approximately $239.5 million
    Q2 FY26

    Number of lives covered for MI Cancer Seek, indicating broad payer traction.

    Caris Assure covered lives
    approximately $131.9 million
    Q2 FY26

    Number of lives covered for Caris Assure, surpassing the 130 million milestone.

    Inventory increase
    $47 million
    Q1 to Q2 FY26

    Proactive investment to prepare for anticipated volume from Caris Detect.

    GAAP net loss
    $0.6 million
    Q2 FY26

    Narrowed GAAP net loss, including a one-time charge.

    GAAP operating expenses
    $152.7 millionup about $21 million year-over-year
    Q2 FY26

    Increased expenses due to investment in commercial expansion and product pipeline.

    One-time extinguishment charge
    $25 million
    Q2 FY26

    Charge related to the refinancing of the term loan in April.

    Prior period collections
    $24 million
    Q2 FY26

    Collections from prior periods, consistent with industry trends.

    Caris Detect current capacity (revenue equivalent)
    $1 billion
    current

    Current capacity for Caris Detect, with plans to triple.

    Caris Detect planned capacity (revenue equivalent)
    $3 billion
    planned

    Planned capacity expansion for Caris Detect to meet anticipated demand.

    Caris Detect cancer types identified
    58
    current

    Breadth of multi-cancer early detection assay.

    Caris Detect tissue of origin resolution (single workup)
    83.9%
    validation data

    High resolution for identifying cancer origin, minimizing procedures.

    Caris Detect tissue of origin resolution (within 2 workups)
    99.8%
    validation data

    Nearly complete resolution within two diagnostic procedures.

    Caris Detect average procedures per patient
    1.19
    validation data

    Low average number of procedures needed for diagnostic resolution.

    Caris Detect Stage 1/II sensitivity
    60%
    validation data

    Sensitivity for detecting early-stage cancers, which have high cure rates.

    Caris MAX depth of coverage
    10,000x
    current

    Ultra-deep mutational analysis for identifying immunogenic mutations.

    Caris MAX positive predictive value (top variant)
    83.8%
    validation data

    Performance of AI in scoring candidate mutations for immunogenicity.

    Caris MAX sensitivity (top variant)
    86.5%
    validation data

    Performance of AI in scoring candidate mutations for immunogenicity.

    MRD analytic performance linear dynamic range
    over 5 logs
    current

    High dynamic range for MRD assay.

    MRD median trackers per patient
    roughly 15,000
    current

    High number of trackers for MRD assay, minimizing false negatives.

    MRD R-squared
    above 0.99
    current

    High correlation for MRD assay across its dynamic range.

    FDA-approved targeted therapies identified from re-interrogation
    13,293
    since launch

    Number of patients newly eligible for therapies identified by re-analyzing prior comprehensive results.

    Molecular profiles reviewed for re-interrogation
    over 483,000
    since launch

    Number of molecular profiles reviewed for new therapy options.

    TMB assay disagreement with smaller panels
    10% to 15%
    study data

    Percentage of cases where targeted panels disagreed with Whole Exome on TMB, impacting immunotherapy decisions.

    Blood-tissue attach rate
    approximately 40%
    current

    Consistent attach rate for blood cases also having tissue testing.

    Commercial team members (July)
    over 300
    July 2026

    Continued expansion of the sales force beyond Q2 numbers.

    Industry KPIs

    5
    MetricValueDetails
    Launch access metricsMI Cancer Seek covered lives ~$239.5 million; Caris Assure covered lives ~$131.9 millionlives
    Pipeline read out calendarMRD launch in H2 FY26; MIClarity V2 launch in H2 FY26
    Regulatory approvals filingsChromoSeq MolDX coverage received; Caris Assure FDA submission in planning; New York State approval for liquid under review
    Clinical trial efficacy safety dataCaris MAX PPV 83.8%, sensitivity 86.5% (top variant); TMB assay disagreement with smaller panels 10%-15%%
    Cumulative patients uptake since launchover 1.13 millionpatients

    Product announcements

    3
    ProductTypeDetails
    ChromoSeqlaunch
    MIClarityupdate
    Caris Detectlaunch

    Deals & partnerships

    3
    UC San FranciscoAddition to Precision Oncology Alliance

    UC San Francisco, a leading NCI academic cancer center, joined the Precision Oncology Alliance.

    Northwell HealthAddition to Precision Oncology Alliance

    Northwell Health, New York State's largest health care provider, joined the Precision Oncology Alliance.

    EverlywellChannel partner for Caris Detect

    Everlywell is one of the digital platforms partnering for the Caris Detect launch.

    Risks & headwinds

    4
    Caris Detect demand exceeding rollout capacitynear-term

    Near-term demand may run ahead of our rollout, and we can see back orders as we scale.

    Mitigation: Aggressively expanding capacity (tripling current $1B/year revenue equivalent capacity to $3B/year) and utilizing channel partners for sales.

    Pharma R&D services revenue timingQ2 FY26, ongoing

    $11.4 million in Q2 FY26

    Mitigation: Focusing on longer-term partnerships and strategic deals rather than smaller, one-time transactions. Expecting improvement from Q2 to Q3 and a heavier weighting towards Q4.

    Q3 free cash flow neutrality due to investmentsQ3 FY26

    Utilizing $30-ish million from the first 6 months, spending that in Q3

    Mitigation: Strategic investment in inventory ramp-up for Caris Detect and initiatives, with positive free cash flow expected to resume in Q4.

    MRD MolDX submission timelineat least 6 months

    Probably another 6 months at least of clinical maturity that we need, but it could be more than that.

    Mitigation: Waiting for clinical outcome data to mature for the tumor-naive MRD platform.

    What to watch in Q3 FY26

    5

    Clinical therapy selection volume growth

    Q3 FY26
    Current18% YoY, 12% sequential (Q2 FY26)
    Target20%

    Why it matters

    Verifies the continued success of the commercial strategy realignment and sales team productivity, impacting overall revenue growth.

    We continue to expect clinical therapy selection volume to grow approximately 20%, with Q3 expected to hit that market continuing to improve from there.

    Q&A highlights

    6

    What drove the reacceleration of total clinical volume from Q1 to Q2, and was any Q1 disruption recaptured?

    Management attributed the reacceleration to the sales team's effective work post-realignment, leading to record sequential case additions. Even excluding Q1 rollover cases, Q2 was a record for sequential growth, particularly in tissue volume, while blood volume continued strong growth.

    “But seeing those KPIs play out in Q2 and the great work done by the sales team once they're starting to mature, that's what's given us confidence as we go in.”

    asked by Michael Ryskin · answered by Luke Power

    2 min read5 chapters

    Detailed Narrative

    01

    Commercial Strategy and Volume Growth Reacceleration

    Caris Life Sciences successfully re-aligned its sales team in Q1 2026, expanding territories from 82 to 146 and growing the commercial team to over 300 members by July. This strategic investment led to a record sequential addition of 6,400 cases in Q2, bringing total clinical volume to 59,200 cases, an 18% year-over-year increase. The reacceleration was particularly notable in tissue volume, while blood cases continued strong growth at 50% year-over-year, demonstrating the effectiveness of the new commercial approach.

    02

    New Product Launches and Pipeline Expansion

    The company launched several key products in Q2, including ChromoSeq on April 1, a heme therapy selection assay that received MolDX coverage at $3,228. MIClarity, a digital pathology prognostic for breast cancer, is now live, with an expanded version (V2) featuring chemotherapy and endocrine therapy decision support planned for H2. Most significantly, Caris Detect, a multi-cancer early detection assay, launched in June, generating strong interest. The company also confirmed plans to launch its Minimal Residual Disease (MRD) program in the second half of the year.

    03

    Caris Detect: Breadth, Precision, and Interception

    Caris Detect leverages Whole Genome and Whole Transcriptome Sequencing to identify 58 distinct cancer types from a single blood draw. Its tissue of origin classifier resolves 83.9% of true positives in a single workup and 99.8% within two, averaging 1.19 procedures per patient. Beyond detection, the 'mutational cleanse' strategy uses the Caris MAX assay (10,000x depth of coverage) and AI to identify immunogenic mutations, aiming for 'early interception' by targeting dangerous clones before overt disease emerges, with 60% Stage 1/II sensitivity.

    04

    Financial Strength and Strategic Investments

    Caris achieved its fifth consecutive quarter of positive adjusted EBITDA ($55.7 million) and free cash flow ($6.4 million), providing significant strategic flexibility. This financial strength is being deployed into key growth initiatives, including a $47 million increase in inventory from Q1 to Q2 to prepare for Caris Detect volume, ongoing capital expenditures ($22.1 million in Q2, $15-$20 million guided for Q3) for lab capacity expansion, and continued sales force growth. The company also authorized a $100 million share repurchase program, executing $18 million in Q2.

    05

    Data and Technology-Driven Advantage

    The company's proprietary molecular database, comprising over 1.13 million patient profiles (including 733,000+ Whole Exomes and 783,000+ Transcriptomes), underpins its AI and machine learning capabilities. This depth-first approach is validated by studies showing comprehensive testing reveals therapeutic options missed by smaller panels and improves overall survival. The platform's ability to re-interrogate prior results identified 13,293 patients newly eligible for FDA-approved therapies, showcasing its enduring value.

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