Castle Biosciences (NASDAQ:CSTL) Posts Quarterly Earnings Results, Beats Expectations By $0.22 EPS

Castle Biosciences (NASDAQ:CSTL) released its earnings results on Thursday. The company reported ($0.13) earnings per share for the quarter, topping the consensus estimate of ($0.35) by $0.22, FiscalAI reports. The business had revenue of $101.95 million during the quarter, compared to the consensus estimate of $92.77 million. Castle Biosciences had a negative return on equity of 4.15% and a negative net margin of 5.43%.

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 Down 4.3%

Shares of NASDAQ:CSTL traded down $1.55 on Thursday, reaching $34.20. The company had a trading volume of 701,872 shares, compared to its average volume of 350,710. The firm has a market capitalization of $1.04 billion, a PE ratio of -51.82 and a beta of 1.00. 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’s 50 day simple moving average is $34.28 and its 200-day simple moving average is $28.57.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. Wall Street Zen upgraded shares of Castle Biosciences from a “hold” rating to a “buy” rating in a research note on Sunday. Robert W. Baird set a $36.00 target price on shares of Castle Biosciences in a research report on Friday, July 31st. BTIG Research lifted their price target on shares of Castle Biosciences from $40.00 to $44.00 and gave the company a “buy” rating in a research note on Monday, August 3rd. Mizuho assumed coverage on Castle Biosciences in a report on Thursday, October 29th. They issued an “outperform” rating and a $60.00 price target for the company. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Castle Biosciences in a research note on Thursday, October 29th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $44.25.

Insiders Place Their Bets

In other Castle Biosciences news, insider Tobin W. Juvenal sold 9,050 shares of the firm’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $35.04, for a total value of $317,112.00. Following the completion of the sale, the insider directly owned 66,914 shares in the company, valued at $2,344,666.56. This trade represents a 11.91% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Kristen M. Oelschlager sold 12,384 shares of Castle Biosciences 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 transaction, the chief operating officer directly owned 72,649 shares in the company, valued at $2,500,578.58. This represents a 14.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 126,184 shares of company stock worth $4,324,506. 6.10% of the stock is owned by corporate insiders.

Castle Biosciences Company Profile

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.