Caris Life Sciences Raises 2026 Revenue Outlook as Q3 Sales Rise 27%

Caris Life Sciences raised its full-year 2026 revenue guidance after third-quarter revenue increased 27%, supported by higher molecular profiling volume and pricing. The company now expects revenue of $1.04 billion to $1.05 billion, representing growth of about 28% to 29%, compared with its previous forecast of $1.03 billion to $1.04 billion.

Third-quarter revenue reached $275.4 million, up from $216.8 million a year earlier. Molecular profiling services generated $262.7 million, also rising 27%, while revenue before prior-period true-ups increased 45%. Pharma research and development services revenue grew 37% to $12.7 million.

Clinical case volume rose 21% to approximately 61,500, with both tissue- and blood-based testing contributing to growth. The blended average selling price was $4,272, while the base ASP before true-ups exceeded $3,990, up 19% year over year. Caris said more than 75% of orders were placed through electronic medical record systems or its portal, with over 3,500 physicians using EMR-based ordering.

Profitability was mixed as the company expanded spending. GAAP gross margin declined 180 basis points to 66%, and operating expenses increased by $48.1 million to $163.0 million. GAAP net income was $15.3 million, compared with $24.3 million in the prior-year quarter. Adjusted EBITDA decreased to $44.4 million from $51.2 million, while free cash flow was negative $39.7 million versus positive $55.3 million a year earlier.

For the first nine months of 2026, revenue increased 45% to $755.2 million, including a 50% rise in molecular profiling revenue to $725.8 million. Nine-month GAAP net income was $14.1 million, compared with a $150.0 million loss in the same period of 2025. Adjusted EBITDA reached $126.3 million, while free cash flow was negative $10.8 million. Caris ended the quarter with $769.2 million in cash and securities.

Product expansion and clinical pipeline

Caris launched an enhanced version of its Caris Assure blood-based therapy selection product and introduced Caris Assure Therapy Response Monitoring during the quarter. The monitoring service uses serial blood draws to classify molecular response, stability or progression, with the company saying results can be available roughly four to eight weeks before a scheduled imaging scan. A MolDX reimbursement submission is being prepared.

The company also plans to launch Caris Confirm, its tissue-informed minimal residual disease test, in December 2026. The product is designed for patients with Stage I to Stage III cancers following curative-intent treatment and uses whole-genome sequencing of tumor tissue, matched normal samples and subsequent blood draws. Caris said its reimbursement strategy will proceed one cancer type at a time, while noting that the product remains in development and the launch date is a current target.

In multi-cancer early detection, Caris reported that approximately 20,000 participants had enrolled in ACHIEVE 2 as of October, representing about 80% of the study’s 25,000-patient target. An interim readout is expected in the first quarter of 2027. The company is also planning the ACHIEVE 3 and ACHIEVE 4 prospective studies in high-risk and general-risk populations, respectively.

Caris continues to develop digital pathology applications using HERO, its oncology foundation model. Potential applications under development include morphological subtype classification, tumor grading, mutation prediction, treatment response and survival prediction.

Updated 2026 outlook

Alongside its higher revenue forecast, Caris reaffirmed its expectation for approximately 20% growth in full-year clinical therapy selection volume. The company now expects GAAP operating expenses of about $620 million, up from its prior estimate of approximately $595 million to $600 million, reflecting continued commercial expansion and additional marketing spending.

Management expects both adjusted EBITDA and free cash flow to remain positive for the full year, even as Caris invests in its sales organization, product pipeline and infrastructure. The company also said the preliminary 2027 Clinical Laboratory Fee Schedule would raise the Caris Assure rate by 44% to $5,250, effective Jan. 1, 2027, while the MI Cancer Seek rate would remain at $8,455.

Key uncertainties include reimbursement and coverage decisions, adoption of new diagnostic and preventive testing products, execution of the sales-force expansion, regulatory requirements, competition and the development and commercialization of Caris Detect and Caris Confirm. The company also identified data security, patient privacy, artificial-intelligence deployment, reliance on suppliers and indebtedness among its risks.