📊 CDNA Key Takeaways
Is CareDx, Inc. (CDNA) a Good Investment?
CareDx demonstrates solid revenue growth of 13.8% YoY, but profitability is critically weak with operating margins collapsing to 1.0% and free cash flow generation negligible at $514K on $117.7M revenue. Despite a fortress balance sheet with zero debt and $77.9M cash, the company's inability to convert revenue growth into operating profit or meaningful cash flow raises serious concerns about operational efficiency and business model sustainability.
CareDx shows a mixed fundamental profile: revenue growth of 13.8% and solid free cash flow generation indicate the business still has commercial momentum, while the balance sheet remains strong with no long-term debt and ample liquidity. However, persistent operating and net losses, weak margins, and sharply deteriorating diluted EPS limit conviction until profitability improves more sustainably.
CareDx, Inc. Key Strengths (CDNA)
- Strong revenue growth of 13.8% YoY shows market demand for services
- Healthy gross margin of 44.8% indicates pricing power and reasonable unit economics at gross level
- Zero long-term debt and strong liquidity position ($77.9M cash, 3.4x current ratio) provides financial flexibility
- Revenue grew 13.8% year over year, indicating continued demand and business expansion
- Strong financial health with $65.43M in cash, a 2.86x current ratio, and no long-term debt
- Positive operating cash flow and $40.23M of free cash flow support flexibility despite accounting losses
CDNA Stock Risks: CareDx, Inc. Investment Risks
- Operating margin at 1.0% and declining is unsustainably thin; company barely profitable despite revenue scale
- Free cash flow of only 0.4% margin is critically low; growth is not translating to cash generation
- Diluted EPS down 143% YoY while ROE and ROA remain under 1%, indicating deteriorating returns and shareholder value destruction
- Operating cash flow of $4.3M insufficient relative to $3.8M capex, limiting reinvestment capacity
- Profitability remains weak with negative operating margin of -8.1% and net margin of -5.6%
- Gross margin of 13.9% is low and leaves limited room to absorb costs or execution missteps
- Diluted EPS fell sharply year over year, signaling pressure on per-share earnings quality
Key Metrics to Watch
- Operating margin expansion trajectory and cost structure leverage
- Free cash flow conversion and working capital efficiency
- Gross margin sustainability and potential pricing pressure in competitive landscape
- Operating margin and gross margin trend
- Free cash flow consistency relative to net income
CareDx, Inc. (CDNA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.4% FCF margin may limit capital allocation flexibility. Strong liquidity with a 3.40x current ratio provides a solid financial cushion.
CDNA Profit Margin, ROE & Profitability Analysis
CDNA vs Healthcare Sector: How CareDx, Inc. Compares
How CareDx, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is CareDx, Inc. Stock Overvalued? CDNA Valuation Analysis 2026
Based on fundamental analysis, CareDx, Inc. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
CareDx, Inc. Balance Sheet: CDNA Debt, Cash & Liquidity
CDNA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: CareDx, Inc.'s revenue has grown significantly by 28% over the 5-year period, indicating strong business expansion. The most recent EPS of $-3.54 indicates the company is currently unprofitable.
CDNA Revenue Growth, EPS Growth & YoY Performance
CDNA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $84.7M | $2.8M | $0.05 |
| Q3 2025 | $82.9M | $1.7M | $0.03 |
| Q2 2025 | $86.7M | -$4.6M | $-0.09 |
| Q1 2025 | $72.0M | -$10.4M | $-0.19 |
| Q3 2024 | $67.2M | -$1.4M | $-0.14 |
| Q2 2024 | $70.3M | -$1.4M | $-0.03 |
| Q1 2024 | $72.0M | -$16.7M | $-0.32 |
| Q3 2023 | $67.2M | -$16.9M | $-0.32 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CareDx, Inc. Dividends, Buybacks & Capital Allocation
CDNA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for CareDx, Inc. (CIK: 0001217234)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 9, 2026 | 4 | xslF345X06/form4-06092026_040601.xml | View → |
| Jun 8, 2026 | 4 | xslF345X06/form4-06082026_040601.xml | View → |
| May 18, 2026 | 4 | xslF345X06/form4-05182026_040501.xml | View → |
| May 6, 2026 | 4 | xslF345X06/form4-05062026_040502.xml | View → |
| May 4, 2026 | 4 | xslF345X06/form4-05042026_080507.xml | View → |
❓ Frequently Asked Questions about CDNA
What is the AI rating for CDNA?
CareDx, Inc. (CDNA) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CDNA's key strengths?
Claude: Strong revenue growth of 13.8% YoY shows market demand for services. Healthy gross margin of 44.8% indicates pricing power and reasonable unit economics at gross level. ChatGPT: Revenue grew 13.8% year over year, indicating continued demand and business expansion. Strong financial health with $65.43M in cash, a 2.86x current ratio, and no long-term debt.
What are the risks of investing in CDNA?
Claude: Operating margin at 1.0% and declining is unsustainably thin; company barely profitable despite revenue scale. Free cash flow of only 0.4% margin is critically low; growth is not translating to cash generation. ChatGPT: Profitability remains weak with negative operating margin of -8.1% and net margin of -5.6%. Gross margin of 13.9% is low and leaves limited room to absorb costs or execution missteps.
What is CDNA's revenue and growth?
CareDx, Inc. reported revenue of $117.7M.
Does CDNA pay dividends?
CareDx, Inc. does not currently pay dividends.
Where can I find CDNA SEC filings?
Official SEC filings for CareDx, Inc. (CIK: 0001217234) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CDNA's EPS?
CareDx, Inc. has a diluted EPS of $0.05.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CDNA's fundamental grade?
Based on our AI fundamental analysis in June 2026, CareDx, Inc. has a C grade with 76% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CDNA stock overvalued or undervalued?
Valuation metrics for CDNA: ROE of 0.9% (sector avg: 15%), net margin of 2.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is CDNA's AI grade for 2026?
Our dual AI analysis gives CareDx, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CDNA's free cash flow?
CareDx, Inc.'s operating cash flow is $4.3M, with capital expenditures of $3.8M. FCF margin is 0.4%.
How does CDNA compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 2.4% (avg: 12%), ROE 0.9% (avg: 15%), current ratio 3.40 (avg: 2).