Caris Life Sciences shares drop 14% after hours despite Q3 revenue beat

Caris Life Sciences (CAI) said on Nov. 4 that third-quarter revenue rose 27% to $275.36 million, topping the $257.92 million consensus estimate, and that it raised its full-year revenue forecast.

Shares fell 14.0% in after-hours trading as of 5:36 p.m. ET, from a regular-session close of $33.23.

Here's how the company did:

• Revenue: $275.36 million vs. $216.8 million a year earlier, $257.92 million expected
• Diluted EPS (GAAP): 5 cents vs. 8 cents a year earlier, 3 cents expected
• Net income: $15.3 million vs. $24.3 million a year earlier
• Adjusted EBITDA: $44.4 million vs. $51.2 million a year earlier

Diluted earnings per share of 5 cents beat the 3-cent consensus estimate. Revenue growth came mainly from molecular profiling services, where the company said higher clinical case volume and higher average selling prices drove the increase.

Founder, Chairman and CEO David Dean Halbert said in the company's press release: "Every case we run carries real molecular depth, whether Whole Exome, Whole Transcriptome, Whole Genome, or AI-driven digital pathology, and that depth is what allows us to move across the entire cancer journey."

Segment results

Molecular profiling services revenue rose to $262.7 million from $207.6 million. Pharma research and development services revenue was $12.7 million, up from $9.2 million.

Gross margin was 66%, down from 68% a year earlier.

2026 guidance

The company now expects full-year 2026 revenue of $1.04 billion to $1.05 billion, growth of 28% to 29%. That raises the range it gave on Aug. 5, when it expected $1.03 billion to $1.04 billion, or growth of 27% to 28%.

It reaffirmed its forecast for clinical therapy selection volume growth of about 20%.

Costs and cash flow

Operating expenses rose 42% to $163.0 million from $114.9 million, driven by headcount costs, research and development, and marketing.

Net cash used in operating activities was $22.2 million, against $62.4 million provided a year earlier. Free cash flow was negative $39.7 million, compared with $55.3 million.

Net income has swung from a profit of $82.0 million in the fourth quarter of 2025 to a loss of $0.5 million in the first quarter of 2026, according to its SEC filings.

About $72.1 million remains available of a $100.0 million share repurchase program, a regulatory filing showed.