Castle Biosciences (NASDAQ:CSTL) Posts Earnings Results, Hits Expectations

06 May 2026, 21:48 by Doug Wharley · The Cerbat Gem

Castle Biosciences (NASDAQ:CSTL – Get Free Report) posted its quarterly earnings data on Wednesday. The company reported ($0.49) EPS for the quarter, meeting analysts’ consensus estimates of ($0.49), FiscalAI reports. The business had revenue of $84.23 million during the quarter, compared to analysts’ expectations of $79.23 million. Castle Biosciences had a negative return on equity of 0.89% and a negative net margin of 7.02%.

Here are the key takeaways from Castle Biosciences’ conference call:

Q1 revenue was $83.7 million and management raised 2026 revenue guidance to $345–$355 million (up from $340–$350M), implying high-teens to low-20s growth ex DecisionDx‑SCC and IDgenetix.
Core test volumes grew 36% year-over-year with DecisionDx‑Melanoma at 10,021 reports (+16% YoY) and TissueCypher at 11,745 reports (+58% YoY), each posting record months in March (TissueCypher also in April).
AdvanceAD‑Tx showed early commercial traction with ~650 orders in Q1 and published prospective data that stratifies patients likely to respond faster to JAK inhibitors; management expects reimbursement clarity by end of Q3 2026.
Profitability signals are mixed: GAAP gross margin was 72.8% (adjusted gross margin 75.6%), net loss narrowed to $14.5 million, but adjusted EBITDA remained negative $5.1 million (impacted by prior-year non‑cash items).
Balance sheet and capacity moves support growth: cash and marketable securities were $261.7 million at March 31, 2026, the company plans an expanded Phoenix lab (no expected margin hit) and remains opportunistic on M&A.

Castle Biosciences Trading Up 0.6%

Shares of Castle Biosciences stock traded up $0.15 during trading hours on Wednesday, hitting $24.75. The company’s stock had a trading volume of 701,819 shares, compared to its average volume of 295,398. Castle Biosciences has a twelve month low of $14.59 and a twelve month high of $44.28. The firm has a fifty day moving average of $25.62 and a 200-day moving average of $32.17. The stock has a market cap of $749.93 million, a price-to-earnings ratio of -29.12 and a beta of 1.11. The company has a debt-to-equity ratio of 0.02, a quick ratio of 5.11 and a current ratio of 5.26.

Insiders Place Their Bets

In related news, insider Tobin W. Juvenal sold 20,863 shares of the business’s stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $25.24, for a total value of $526,582.12. Following the sale, the insider owned 86,825 shares in the company, valued at approximately $2,191,463. The trade was a 19.37% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Frank Stokes sold 7,000 shares of the business’s stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $27.44, for a total value of $192,080.00. Following the completion of the sale, the chief financial officer owned 52,483 shares in the company, valued at $1,440,133.52. This represents a 11.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 74,575 shares of company stock worth $1,948,344. Company insiders own 6.10% of the company’s stock.

Institutional Investors Weigh In On Castle Biosciences

Institutional investors and hedge funds have recently modified their holdings of the company. RTW Investments LP purchased a new stake in Castle Biosciences during the 4th quarter worth about $82,283,000. Dimensional Fund Advisors LP increased its holdings in Castle Biosciences by 7.0% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,474,089 shares of the company’s stock worth $33,564,000 after purchasing an additional 96,084 shares during the period. Wasatch Advisors LP increased its holdings in Castle Biosciences by 5.1% during the 2nd quarter. Wasatch Advisors LP now owns 1,049,773 shares of the company’s stock worth $21,436,000 after purchasing an additional 51,318 shares during the period. State Street Corp increased its holdings in Castle Biosciences by 1.7% during the 4th quarter. State Street Corp now owns 736,454 shares of the company’s stock worth $28,648,000 after purchasing an additional 12,374 shares during the period. Finally, Geode Capital Management LLC increased its holdings in Castle Biosciences by 2.3% during the 4th quarter. Geode Capital Management LLC now owns 714,913 shares of the company’s stock worth $27,815,000 after purchasing an additional 16,303 shares during the period. Hedge funds and other institutional investors own 92.60% of the company’s stock.

Wall Street Analyst Weigh In

A number of research firms have weighed in on CSTL. Zacks Research raised Castle Biosciences from a “hold” rating to a “strong-buy” rating in a research note on Monday, April 27th. Morgan Stanley raised Castle Biosciences to a “buy” rating in a research note on Monday, March 2nd. Guggenheim boosted their price objective on Castle Biosciences from $43.00 to $47.00 and gave the stock a “buy” rating in a research note on Monday, January 26th. Lake Street Capital boosted their price objective on Castle Biosciences from $35.00 to $52.00 and gave the stock a “buy” rating in a research note on Monday, January 12th. Finally, KeyCorp reissued an “overweight” rating and set a $50.00 price objective on shares of Castle Biosciences in a research note on Thursday, January 29th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has given a Sell rating to the company. According to MarketBeat, Castle Biosciences has a consensus rating of “Moderate Buy” and an average target price of $46.14.

Check Out Our Latest Report on Castle Biosciences

About Castle Biosciences

(Get Free Report)

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.