Castle Biosciences (NASDAQ:CSTL) Announces Earnings Results, Beats Expectations By $0.37 EPS

Castle Biosciences (NASDAQ:CSTL) announced its earnings results on Thursday. The company reported ($0.07) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.44) by $0.37, FiscalAI reports. The business had revenue of $99.86 million for the quarter, compared to the consensus estimate of $86.24 million. Castle Biosciences had a negative net margin of 3.78% and a negative return on equity of 2.77%.

Here are the key takeaways from Castle Biosciences’ conference call:

• Revenue guidance was raised: Second-quarter revenue reached $103.5 million, up 20% year over year, prompting Castle to increase its 2026 revenue outlook to $365 million–$375 million from $345 million–$355 million.
• TissueCypher remained the primary growth engine: Test reports rose 63% year over year to 14,988, and management now expects full-year volume growth of approximately 50%–52%; the company cited continued physician adoption and substantial remaining market opportunity.
• AdvanceAD-Tx commercialization advanced: The test generated more than 1,000 orders in the quarter, received a unanimous recommendation for a $36.75 CMS crosswalk rate, and showed strong real-world treatment-concordance results, supporting a broader commercial launch over time.
• Profitability was pressured by investment spending: Gross margin declined to 74.9% from 77.3%, while the company posted a $2.1 million net loss versus $4.5 million of net income a year earlier, reflecting higher laboratory, personnel, sales, marketing, and R&D costs.
• Melanoma growth remained steady but moderated: DecisionDx-Melanoma report volume increased 3% year over year, below typical seasonal sequential growth, as the sales force adapted to promoting three products; management nevertheless maintained its expectation for mid- to high-single-digit full-year volume growth.

Castle Biosciences Trading Up 9.5%

Shares of NASDAQ CSTL traded up $2.33 during mid-day trading on Thursday, hitting $26.79. The stock had a trading volume of 690,216 shares, compared to its average volume of 286,229. The business has a 50 day moving average price of $22.61 and a two-hundred day moving average price of $26.51. Castle Biosciences has a 1 year low of $14.59 and a 1 year high of $44.28. The company has a debt-to-equity ratio of 0.02, a quick ratio of 6.53 and a current ratio of 6.75. The firm has a market cap of $812.54 million, a P/E ratio of -60.89 and a beta of 1.00.

Analyst Ratings Changes

Several research analysts recently issued reports on the stock. BTIG Research cut their target price on shares of Castle Biosciences from $50.00 to $40.00 and set a “buy” rating for the company in a research report on Wednesday, May 13th. KeyCorp set a $35.00 price target on Castle Biosciences in a research note on Friday, May 29th. Zacks Research downgraded Castle Biosciences from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, May 26th. Robert W. Baird cut their target price on Castle Biosciences from $44.00 to $43.00 and set an “outperform” rating for the company in a research note on Thursday, May 7th. Finally, Roth Capital assumed coverage on shares of Castle Biosciences in a research report on Wednesday, June 24th. They set a “buy” rating and a $40.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Castle Biosciences currently has an average rating of “Moderate Buy” and a consensus price target of $42.43.

Insider Buying and Selling at Castle Biosciences

In other news, insider Derek J. Maetzold sold 3,622 shares of the company’s stock in a transaction dated Monday, July 27th. The shares were sold at an average price of $24.16, for a total transaction of $87,507.52. Following the completion of the transaction, the insider directly owned 11,812 shares of the company’s stock, valued at approximately $285,377.92. This represents a 23.47% 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 M. Oelschlager sold 8,586 shares of the stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $24.42, for a total transaction of $209,670.12. Following the sale, the chief operating officer owned 21,874 shares of the company’s stock, valued at approximately $534,163.08. This represents a 28.19% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 55,025 shares of company stock valued at $1,252,199 in the last three months. 6.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Nebula Research & Development LLC grew its position in shares of Castle Biosciences by 18.2% in the 2nd quarter. Nebula Research & Development LLC now owns 44,472 shares of the company’s stock worth $908,000 after buying an additional 6,855 shares during the last quarter. Deutsche Bank AG increased its stake in shares of Castle Biosciences by 34.5% during the fourth quarter. Deutsche Bank AG now owns 22,384 shares of the company’s stock valued at $871,000 after buying an additional 5,742 shares during the period. Verition Fund Management LLC raised its holdings in shares of Castle Biosciences by 7.5% during the fourth quarter. Verition Fund Management LLC now owns 16,811 shares of the company’s stock valued at $654,000 after acquiring an additional 1,169 shares in the last quarter. JPMorgan Chase & Co. raised its holdings in shares of Castle Biosciences by 4.2% during the third quarter. JPMorgan Chase & Co. now owns 27,778 shares of the company’s stock valued at $633,000 after acquiring an additional 1,115 shares in the last quarter. Finally, Janus Henderson Group PLC lifted its stake in Castle Biosciences by 64.6% in the fourth quarter. Janus Henderson Group PLC now owns 15,037 shares of the company’s stock worth $585,000 after acquiring an additional 5,900 shares during the period. Institutional investors own 92.60% of the company’s stock.

Castle Biosciences Company Profile

Castle Biosciences, Inc is a molecular diagnostics company specializing in the development and commercialization of prognostic and diagnostic tests for patients with dermatologic conditions. The company’s proprietary portfolio of genomic assays is designed to improve risk assessment and guide clinical decision-making for individuals with skin cancers and other skin-related diseases. By combining genomic data with advanced statistical algorithms, Castle Biosciences seeks to provide actionable insights that help physicians tailor treatment plans and monitoring strategies.

The company’s flagship test, DecisionDx-Melanoma, evaluates the probability of metastasis in patients diagnosed with cutaneous melanoma, supporting more personalized surveillance and therapeutic approaches.