Castle Biosciences Exceeds Revenue Forecasts on Strong Test Demand

Castle Biosciences has outperformed its financial guidance for the full year 2025. The company’s latest projections reveal a revenue figure surpassing earlier estimates, driven primarily by robust demand for its key diagnostic offerings. This performance raises questions about its ability to maintain momentum within a competitive sector.

• Revised 2025 Revenue Guidance: Greater than $340 million (up from $327–335 million)
• Full-Year Core Test Volume Growth: +37% year-over-year
• Q4 Core Test Volume Growth: +42% year-over-year
• Earnings Report Date: Thursday, February 26, 2026

From a financial perspective, Castle Biosciences maintains a solid position. As of December 31, 2025, the firm reported holding approximately $300 million in cash, cash equivalents, and marketable securities. This substantial reserve is expected to fund ongoing growth initiatives and research and development efforts in the fast-evolving diagnostics landscape.

Beyond its financial health, the company is actively broadening its commercial reach. A strategic move in this direction was the November launch of its newest test, AdvanceAD-Tx. Designed to guide treatment decisions for patients with moderate-to-severe atopic dermatitis, this product exemplifies the company's focus on addressing unmet clinical needs through precision medicine.

Should investors sell immediately? Or is it worth buying Castle Biosciences?

Core Test Volumes Demonstrate Accelerating Momentum

The upward revision to annual revenue is directly attributable to exceptional operational execution for Castle Biosciences's flagship diagnostic tests. For the full year, report volume for core products, including DecisionDx-Melanoma and TissueCypher, grew by 37%. This growth trajectory accelerated significantly in the final quarter, reaching 42% year-over-year.

A closer look at individual test performance reveals substantial gains. Volume for the TissueCypher Barrett’s Esophagus assay nearly doubled, climbing from just under 21,000 reports in the prior year to over 39,000 in 2025. The DecisionDx-Melanoma skin cancer test also saw an increase, moving from approximately 36,000 to more than 39,000 reports delivered.

Investors and analysts will await further details upon the release of the official, audited financial results for the fourth quarter and full year 2025. The report, scheduled for Thursday, February 26, 2026, will provide final figures and is anticipated to offer crucial forward-looking commentary on the current fiscal year and the commercial progress of the expanded test portfolio.