Castle Biosciences, Inc. reported a significant increase in net revenues for the first quarter of 2025, reaching $87.99 million, a 20.6% rise from $72.97 million in the same period of 2024. This growth was primarily driven by a $11.4 million increase in revenue from non-dermatologic tests, particularly the TissueCypher test for Barrett’s esophagus, which saw a 117% increase in test report volumes. Dermatologic tests also contributed to the revenue growth, with a $3.6 million increase attributed to the DecisionDx-SCC test. However, the company reported a net loss of $25.85 million, compared to a loss of $2.53 million in the prior year, reflecting a substantial increase in operating expenses.
Total operating expenses surged to $115.92 million, up 47.8% from $78.45 million in the previous year. This increase was largely due to a significant rise in amortization expenses, which jumped to $28.33 million from $2.25 million, following the decision to discontinue the IDgenetix test. Selling, general, and administrative expenses also rose by 20.9% to $58.62 million, driven by higher personnel costs and increased marketing activities. Research and development expenses decreased slightly by 8.8% to $12.59 million, reflecting a strategic focus on cost management.
Operationally, Castle Biosciences delivered a total of 24,402 test reports in the first quarter of 2025, a 16.8% increase from 20,888 reports in the same quarter of 2024. The company’s workforce expanded to 784 employees, up from 638 a year earlier, indicating a commitment to scaling operations in response to growing demand. The company continues to focus on its core markets in the U.S., with all operations based domestically.
Looking ahead, Castle Biosciences anticipates that its existing cash and cash equivalents, along with marketable investment securities totaling $275.15 million, will be sufficient to fund operations for at least the next 12 months. However, the company faces challenges, particularly with the recent loss of Medicare coverage for the DecisionDx-SCC test, which is expected to impact future revenues. The company is actively monitoring macroeconomic conditions and their potential effects on its business, while also planning to invest in research and development to support its product pipeline and commercialization efforts.
About CASTLE BIOSCIENCES INC
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