Caris Life Sciences, Inc.

Q2 2026 total revenue was $263.7 million, up 45% year over year. Molecular profiling services revenue was $252.3 million, up 55%, and pharma R&D services revenue was $11.4 million. GAAP gross margin was 68%, versus 63% last year. GAAP net loss narrowed to $0.6 million, including a $25 million one-time extinguishment charge from refinancing the term loan in April. Adjusted EBITDA was $55.7 million, up from $16.7 million last year, and free cash flow was $6.4 million; net cash from operations was $28.5 million. Clinical case volume was approximately 59,200, up 18% year over year, with about 48,300 MI profile tissue cases and 10,700 Caris Assure blood cases. Cash and investments were $793 million at quarter end. Full-year 2026 guidance was raised to total revenue of $1.03 billion-$1.04 billion, implying 27%-28% growth, from the prior $1.0 billion-$1.02 billion range. Management still expects clinical therapy selection volume to grow about 20%, GAAP operating expenses of $595 million-$600 million, full-year adjusted EBITDA positive, and full-year free cash flow positive.

David Halbert framed the quarter as a validation of Caris' long-held strategy of combining Whole Exome, Whole Transcriptome, and AI across a large molecular database. He emphasized record clinical volume, record tissue and blood volume, and said the commercial investment in Q1 is now paying off. He was especially enthusiastic about Caris Detect, saying physician, health system, and patient interest has run ahead of expectations and that demand may exceed rollout capacity. His tone was highly confident and strategic, with repeated emphasis on the company’s platform breadth and future expansion into early detection, early interception, and eventually other disease areas.

Luke Power highlighted the core financial story: revenue growth of 45%, gross margin expansion to 68%, adjusted EBITDA of $55.7 million, and positive free cash flow of $6.4 million despite $22.1 million of capital expenditures. He noted cash and investments of $793 million and said the board authorized up to $100 million of share repurchases, with about $18 million bought back in Q2. On the operating side, he pointed to a record blended ASP above $3,850, about $47 million of inventory build tied to Detect readiness, and updated full-year guidance that raises revenue but also nudges operating expenses higher to $595 million-$600 million. He also said the company is assessing additional sequencing suppliers that could increase capacity and reduce COGS, and that Q3 free cash flow should be roughly neutral before turning positive again in Q4.

Analysts focused on what drove the Q2 volume reacceleration, especially after the Q1 salesforce reorganization, and management said the field realignment is beginning to work as reps mature in new territories. Questions also centered on how much new products like Detect, ChromoSeq, MI Clarity, and future MRD could contribute to guidance; management said the raised outlook is based on the existing molecular profiling business only, with Detect and other launches not yet included. On Detect, management said it is pursuing a self-pay, channel-partner-led model for now, while still monitoring reimbursement and FDA-related pathways for related products. Analysts also pressed on gross margin, sequencing capacity, and salesforce expansion; management said margins should remain in the high-60% range in the near term, capacity is being expanded aggressively, and the sales organization will likely keep growing beyond 300 reps.