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

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

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 Stock Up 9.5%

CSTL stock traded up $2.33 during mid-day trading on Thursday, hitting $26.79. 690,216 shares of the company were exchanged, compared to its average volume of 390,150. The firm has a market cap of $812.54 million, a P/E ratio of -60.89 and a beta of 1.00. 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’s 50 day simple moving average is $22.61 and its 200 day simple moving average is $26.51.

Analyst Ratings Changes

A number of research firms recently commented on CSTL. Weiss Ratings lowered Castle Biosciences from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Monday, June 1st. Roth Capital began coverage on Castle Biosciences in a research report on Wednesday, June 24th. They issued a “buy” rating and a $40.00 price objective for the company. Robert W. Baird decreased their target price on Castle Biosciences from $44.00 to $43.00 and set an “outperform” rating on the stock in a report on Thursday, May 7th. BTIG Research lowered their target price on Castle Biosciences from $50.00 to $40.00 and set a “buy” rating for the company in a research note on Wednesday, May 13th. Finally, Wall Street Zen cut Castle Biosciences from a “hold” rating to a “sell” rating in a report on Saturday, May 9th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $42.43.

Insider Buying and Selling at Castle Biosciences

In related news, COO Kristen M. Oelschlager sold 8,586 shares of the firm’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $24.42, for a total transaction of $209,670.12. Following the sale, the chief operating officer directly owned 21,874 shares in the company, valued at $534,163.08. This trade represents a 28.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Derek J. Maetzold sold 3,622 shares of the company’s stock in a transaction on Monday, July 27th. The stock was 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. The trade was a 23.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 55,025 shares of company stock valued at $1,252,199 in the last three months. 6.10% of the stock is owned by insiders.

Institutional Investors Weigh In On Castle Biosciences

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Federated Hermes Inc. bought a new position in Castle Biosciences in the fourth quarter valued at approximately $26,000. Kemnay Advisory Services Inc. bought a new stake in Castle Biosciences in the fourth quarter valued at approximately $35,000. Jones Financial Companies Lllp lifted its position in shares of Castle Biosciences by 10,592.0% in the first quarter. Jones Financial Companies Lllp now owns 2,673 shares of the company’s stock valued at $54,000 after buying an additional 2,648 shares during the last quarter. Tower Research Capital LLC TRC lifted its position in shares of Castle Biosciences by 256.9% in the second quarter. Tower Research Capital LLC TRC now owns 2,791 shares of the company’s stock valued at $57,000 after buying an additional 2,009 shares during the last quarter. Finally, Russell Investments Group Ltd. boosted its stake in shares of Castle Biosciences by 63.7% during the 3rd quarter. Russell Investments Group Ltd. now owns 2,508 shares of the company’s stock worth $57,000 after acquiring an additional 976 shares during the period. 92.60% of the stock is currently owned by institutional investors and hedge funds.

About Castle Biosciences

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.