CDNA

The headline looks ugly — net income swung to a -$21.4M loss in FY2025 from +$52.5M in FY2024 (a -140.6% move) — but the comparison is misleading. The MD&A shows Q4 2024 alone carried $88M of net income, so FY2024's profit was a one-time event (a discrete gain/tax item), not run-rate earnings; CareDx's underlying history is chronically unprofitable on a GAAP basis (-$30.7M, -$76.6M, -$190M in 2021-2023, accumulated deficit of -$735M). What actually matters is that the operating engine is improving on every line that isn't one-time: FY2025 revenue grew +13.8% to $380M and accelerated to +25% YoY in Q4, testing-services volume rose ~14% for the year (~200,000 tests), and the higher-margin patient/digital (+31%) and product (+19%) lines are growing faster than the base. Crucially, the business now self-funds: operating cash flow was a positive $42.0M (+10.5%), so the GAAP loss is largely non-cash (D&A $15.0M) rather than a cash burn.

The balance sheet removes the existential risk that usually dogs a serially loss-making diagnostics name. CareDx carries no meaningful debt (liabilities/equity 0.36x), ~$200M of cash and marketable securities per the MD&A, and a current ratio near 2.9x ($257M current assets vs $89.8M current liabilities). That financial strength let management buy back $88M of stock (5.8M shares at an avg $15.16) during 2025 — well-timed capital return given the shares now trade at $29.28, roughly double the repurchase price, and the 7.6% reduction in share count is a real per-share tailwind.