Castle Biosciences (NASDAQ:CSTL – Get Free Report) issued its quarterly earnings results on Thursday. The company reported ($0.13) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.35) by $0.22, FiscalAI reports. Castle Biosciences had a negative return on equity of 4.15% and a negative net margin of 5.43%. The business had revenue of $101.95 million for the quarter, compared to the consensus estimate of $92.77 million.
Here are the key takeaways from Castle Biosciences’ conference call:
- Revenue guidance increased substantially: Third-quarter revenue rose 24% year over year to $102.9 million, and Castle raised full-year 2026 guidance by $20 million at the midpoint to $385 million–$395 million, citing strong core-business performance, TissueCypher growth and ASP improvement.
- TissueCypher remained the main growth driver: Test reports increased 47% to 15,574, and the company reiterated its 50%–52% full-year volume-growth outlook. Management estimates market penetration at about 15%, while noting that seasonality and sales-team changes can make quarterly growth uneven.
- Cash generation and adjusted profitability strengthened: Adjusted EBITDA was $12.7 million versus $9.2 million a year earlier, and operating cash flow was $19.7 million for the quarter. Castle reported approximately $278 million in cash and investments and expects positive Adjusted EBITDA for 2026 and 2027.
- GAAP loss widened as expenses rose: Net loss increased to $4.1 million from $0.5 million in the year-ago quarter, while operating expenses including cost of sales grew to $105.6 million from $89.8 million, reflecting higher staffing and other costs.
- Medicare coverage remains a headwind for DecisionDx-SCC: Management said its 2027 revenue outlook does not assume a recovery in Medicare coverage, with a draft coverage decision possible in the coming months but no firm timeline provided.
Castle Biosciences Stock Performance
Shares of NASDAQ CSTL opened at $32.52 on Friday. The company has a current ratio of 6.04, a quick ratio of 5.85 and a debt-to-equity ratio of 0.02. Castle Biosciences has a 52 week low of $17.72 and a 52 week high of $44.28. The firm has a 50-day moving average price of $34.25 and a 200 day moving average price of $28.53.
Analyst Ratings Changes
CSTL has been the subject of several research analyst reports. BTIG Research lifted their target price on shares of Castle Biosciences from $40.00 to $44.00 and gave the company a “buy” rating in a research report on Monday, August 3rd. Wall Street Zen raised shares of Castle Biosciences from a “hold” rating to a “buy” rating in a research report on Sunday, November 1st. Mizuho began coverage on Castle Biosciences in a research note on Thursday, October 29th. They issued an “outperform” rating and a $60.00 price objective for the company. KeyCorp upped their price objective on Castle Biosciences from $35.00 to $40.00 and gave the company an “overweight” rating in a report on Friday. Finally, Robert W. Baird set a $36.00 target price on shares of Castle Biosciences in a research note on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $44.88.
View Our Latest Stock Report on CSTL
Insider Activity
In other news, insider Derek J. Maetzold sold 12,428 shares of the firm’s stock in a transaction on Friday, August 28th. The shares were sold at an average price of $33.20, for a total value of $412,609.60. Following the sale, the insider owned 21,479 shares in the company, valued at approximately $713,102.80. This trade represents a 36.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Kristen Oelschlager sold 12,384 shares of the business’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $34.42, for a total transaction of $426,257.28. Following the completion of the sale, the chief operating officer directly owned 72,649 shares in the company, valued at approximately $2,500,578.58. This represents a 14.56% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 126,184 shares of company stock worth $4,324,506. 6.10% of the stock is owned by corporate insiders.
Key Castle Biosciences News
Here are the key news stories impacting Castle Biosciences this week:
- Positive Sentiment: Q3 revenue rose 24% year over year to $102.9 million, beating analyst expectations, and the per-share loss of $0.13 was narrower than forecasts. Castle Biosciences Reports Third Quarter 2026 Results
- Positive Sentiment: Management raised 2026 revenue guidance to $385–$395 million from $365–$375 million. TissueCypher test report volume increased 47% year over year, with the company signaling 50%–52% volume growth for the full year. Revenue outlook and TissueCypher growth
- Positive Sentiment: KeyCorp raised its price target to $40 from $35 and maintained an Overweight rating, signaling potential upside in the firm’s view. KeyCorp recommendations
- Negative Sentiment: The company remains unprofitable: its quarterly loss widened from $0.02 per share a year earlier to $0.13, despite beating analyst estimates. Ongoing losses could weigh on sentiment alongside the otherwise strong growth and guidance update. Q3 loss and revenue results
About Castle Biosciences
Castle Biosciences, Inc is a molecular diagnostics company that develops and commercializes tests designed to help physicians diagnose cancer, assess disease risk and guide treatment decisions. The company focuses on conditions in which additional biological information can complement traditional pathology and clinical assessment.
Its portfolio includes DecisionDx-Melanoma, which helps evaluate the risk of metastatic recurrence in patients with cutaneous melanoma; DecisionDx-SCC, which assesses metastatic risk in cutaneous squamous cell carcinoma; and DecisionDx-UM, a test for determining metastatic risk in uveal melanoma.
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