7 unchanged sentences
Our management is responsible for establishing and maintaining adequate internal control over financial reporting as such term as defined in Exchange Act Rule 13a-15(f).
−Removed: Internal control over financial reporting is a process designed under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with U.S.
+Added: Internal control over financial reporting is a process designed by, or under the supervision of, our principal executive officer and principal financial officer, and effected by our board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with U.S.
As of December 31, 2025, our management assessed the effectiveness of our internal control over financial reporting using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-Integrated Framework (2013 Framework) .
2 unchanged sentences
Changes in Internal Control over Financial Reporting
−Removed: There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) or 15d-15(f) of the Exchange Act) that occurred during the fourth quarter of 2024 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
+Added: There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) or 15d-15(f) under the Exchange Act) that occurred during the fourth quarter of 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Other Information.
Securities Trading Plans of Directors and Executive Officers
−Removed: On November 11, 2024 , Derek Maetzold , our Chief Executive Officer , adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to 301,404 shares of our common stock, less the number of shares withheld to cover tax withholding obligations in connection with the vesting and settlement of outstanding RSUs and PSUs, and less any shares that are sold under his previous arrangement.
+Added: On November 13, 2025 , Frank Stokes , our Chief Financial Officer , adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of 13,001 shares of our common stock.
The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c).
−Removed: The duration of the trading arrangement will be from February 24, 2025 through August 13, 2025 .
−Removed: On November 18, 2024 , Frank Stokes , our Chief Financial Officer , adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of up to 100% of the shares of our common stock issued upon the settlement of 14,617 outstanding RSUs, less the number of shares withheld to cover tax withholding obligations in connection with the vesting and settlement of such RSUs.
+Added: The duration of the trading arrangement is estimated to be from February 27, 2026 until the earlier of all transaction under the trading arrangement being completed or March 31, 2026 .
+Added: On December 3, 2025 , Derek Maetzold , our Chief Executive Officer , adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to 252,800 shares of our common stock and up to 100% of the shares of our common stock issued upon the settlement of 121,316 shares of RSUs and PSUs, less the number of shares withheld to cover tax withholding obligations in connection with the vesting and settlement of such RSUs and PSUs.
The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c).
−Removed: The duration of the trading arrangement will be from February 18, 2025 through December 31, 2026 or earlier if all transactions under the trading arrangement are completed.
+Added: The duration of the trading arrangement is estimated to be from March 11, 2026 until the earlier of all transaction under the trading arrangement being completed or August 31, 2026 .
+Added: On December 10, 2025 , Tobin Juvenal , our Chief Commercial Officer , adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to 45,000 shares of our common stock and up to 100% of the shares of our common stock issued upon the settlement of 34,978 shares of RSUs and PSUs, less the number of shares withheld to cover tax withholding obligations in connection with the vesting and settlement of such RSUs and PSUs.
+Added: The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c).
+Added: The duration of the trading arrangement is estimated to be from March 12, 2026 until the earlier of all transaction under the trading arrangement being completed or September 4, 2026 .
No other officers or directors, as defined in Rule 16a-1(f), adopted and/or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement, as defined in Regulation S-K Item 408, during the last fiscal quarter.
10 unchanged sentences
Such information is to be included in the Proxy Statement and is incorporated herein by reference.
−Removed: The information required by Item 408(b) of Regulation S-K will be set forth in the section captioned “ Insider Trading Arrangements and Policies ” in our Proxy Statement and is incorporated herein by reference.
+Added: The information required by Item 408(b) of Regulation S-K will be set forth in the section captioned “ Insider Trading Policy;
+Added: Prohibition on Hedging, Short Sales and Pledging ” in our Proxy Statement and is incorporated herein by reference.
We have adopted a written Code of Business Conduct and Ethics (“Ethics Code”) that applies to all officers, directors and employees, including our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.
The Ethics Code is available on our website at www.CastleBiosciences.com.
−Removed: If we ever were to amend or waive any provision that applies to our principal executive officer, principal financial officer, principal accounting officer or any person performing similar functions, we intend to satisfy our disclosure obligations, if any, with respect to any such waiver or amendment by posting such information on our website, rather than by filing a Current Report on Form 8-K.
+Added: If we ever were to amend or waive any provision that applies to our principal executive officer, principal financial officer, principal accounting officer or controller, or any person performing similar functions, we intend to satisfy our required disclosure obligations, if any, with respect to any such waiver or amendment by posting such information on our website, rather than by filing a Current Report on Form 8-K.
+Added: Information found on, or accessible through, our website is not part of, and is not incorporated into, this Annual Report on Form 10-K.
Executive Compensation.
−Removed: The information required by this item is to be included in the Proxy Statement under the section entitled “Executive Compensation” and is incorporated herein by reference, provided that the information required by Item 402(x) of Regulation S-K shall be set forth in the section headed “Policies and practices related to the grant of certain equity awards close in time to the release of material nonpublic information” in the Proxy Statement and is incorporated herein by reference.
+Added: The information required by this item is to be included in the Proxy Statement under the sections entitled “Compensation Discussion and Analysis,” “Executive Compensation Tables,” “Director Compensation,” “Compensation Committee Interlocks and Insider Participation,” and “Compensation Committee Report” and is incorporated herein by reference, provided that the information required by Item 402(x) of Regulation S-K shall be set forth in the section entitled “Policies and practices related to the grant of certain equity awards close in time to the release of material nonpublic information” in the Proxy Statement and is incorporated herein by reference.
+Added: Information disclosed therein pursuant to Item 402(v) of Regulation S-K relating to pay versus performance will not be incorporated herein by reference.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
1 unchanged sentence
Certain Relationships and Related Transactions, and Director Independence.
−Removed: The information required by this item is to be included in the Proxy Statement under the section entitled “Transactions with Related Persons and Indemnifications—Related Person Transactions Policy and Procedures” and is incorporated herein by reference.
+Added: The information required by this item is to be included in the Proxy Statement under the sections entitled “Transactions with Related Persons and Indemnifications—Related Person Transactions Policy and Procedures” and “Information Regarding the Board of Directors and Corporate Governance” and is incorporated herein by reference.
Principal Accountant Fees and Services.
11 unchanged sentences
Exhibit Number Description of document
−Removed: Agreement and Plan of Merger, dated October 18, 2021, by and among the Company, Space Merger Sub, Inc., Cernostics, Inc., and Shareholder Representative Services LLC, incorporated by reference to Exhibit 2.1 of the Registrant’s Current Report on Form 8-K, as amended, originally filed with the SEC on December 6, 2021.
−Removed: Agreement and Plan of Merger, dated April 4, 2022, by and among the Registrant, AltheaDx, Inc., Acorn Merger Sub, Inc.
−Removed: and Fortis Advisors LLC, incorporated by reference to Exhibit 2.1 of the Registrant’s Current Report on Form 8-K filed with the SEC on April 4, 2022.
−Removed: 3.1 Amended and Restated Certificate of Incorporation of the Registrant, incorporated by reference to Exhibit 3.
−Removed: 2 of the Registrant’s Current Report on Form 8-K filed with the SEC on July 29, 2019.
−Removed: 3.2 Amended and Restated Bylaws of the Registrant, incorporated by reference to Exhibit 3.2 of the Registrant’s Current Report on Form 8-K filed with the SEC on July 29, 2019.
+Added: 3.1 Amended and Restated Certificate of Incorporation of the Registrant, incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K filed with the SEC on May 23, 2025.
+Added: 3.2 Amended and Restated Bylaws of the Registrant, incorporated by reference to Exhibit 3.
+Added: 1 of the Registrant’s Current Report on Form 8-K filed with the SEC on August 8, 2025 .
4.1 Description of securities registered under Section 12 of the Exchange Act, incorporated by reference to Exhibit 4.1 of the Registrant's Annual Report on Form 10-K filed with the SEC on March 10, 2020.
1 unchanged sentence
333-232369), as amended, originally filed with the SEC on June 26, 2019.
−Removed: 4.3 Sixth Amended and Restated Investors’ Rights Agreement, dated July 12, 2019, by and among the Registrant and certain of its stockholders, incorporated by reference to Exhibit 4.2 of the Registrant’s Registration Statement on Form S-1 (File No.
−Removed: 333-232369), as amended, originally filed with the SEC on June 26, 2019.
−Removed: 10.1+ Form of Indemnity Agreement by and between the Registrant and its directors and officers, incorporated by reference to Exhibit 10.1 of the Registrant’s Registration Statement on Form S-1 (File No.
−Removed: 333-232369), as amended, originally filed with the SEC on June 26, 2019.
+Added: Equity Compensation Plans
Castle Biosciences, Inc.
11 unchanged sentences
333-232884), originally filed with the SEC on July 29, 2019.
−Removed: Exhibit Number Description of document
Forms of Stock Option Grant Notice, Option Agreement and Notice of Exercise under the 2019 Equity Incentive Plan, incorporated by reference to Exhibit 10.7 of the Registrant’s Registration Statement on Form S-1 (File No.
4 unchanged sentences
333-232369), as amended, originally filed with the SEC on June 26, 2019.
−Removed: 10.10+ Form of Director Agreement by and between the Registrant and certain of its directors, incorporated by reference to Exhibit 10.9 of the Registrant’s Registration Statement on Form S-1 (File No.
−Removed: 333-232369), as amended, originally filed with the SEC on June 26, 2019.
Castle Biosciences, Inc.
−Removed: 2022 Inducement Plan, incorporated by reference to Exhibit 99.1 of the Registrant’s Registration Statement on Form S-8 (File No.
−Removed: 333-275881), filed with the SEC on December 4, 2023.
+Added: 2022 Inducement Plan, as amended and restated, incorporated by reference to Exhibit 10.2 of the Registrant’s Quarterly Report on Form 10-Q filed with the SEC on No vember 3, 2025 .
+Added: Exhibit Number Description of document
Forms of Restricted Stock Unit Grant Notice and Restricted Stock Unit Award Agreement under the Castle Biosciences, Inc.
2 unchanged sentences
2022 Inducement Plan, incorporated by reference to Exhibit 10.13 of the Registrant ’ s Annual Report on Form 10-K filed with the SEC on February 28, 2023.
−Removed: 10.14+ Non-Employee Director Compensation Policy, as amended effective May 31, 2024 , incorporated by reference to Exhibit 10.
−Removed: 1 of the Registrant’s Quarterly Report on Form 10-Q filed with the SEC on August 5, 2024 .
+Added: Agreements with Executive Officers and Directors
+Added: Form of Indemnity Agreement by and between the Registrant and its directors and officers, incorporated by reference to Exhibit 10.1 of the Registrant’s Registration Statement on Form S-1 (File No.
+Added: 333-232369), as amended, originally filed with the SEC on June 26, 2019.
+Added: Form of Director Agreement by and between the Registrant and certain of its directors, incorporated by reference to Exhibit 10.9 of the Registrant’s Registration Statement on Form S-1 (File No.
+Added: 333-232369), as amended, originally filed with the SEC on June 26, 2019.
+Added: 10.14+ Non-Employee Director Compensation Policy, as amended , incorporated by reference to Exhibit 10.
+Added: 1 of the Registrant’s Quarterly Report on Form 10-Q filed with the SEC on November 3 , 2025.
10.15+ Amended and Restated Executive Employment Agreement, dated September 20, 2012, as amended, by and between the Registrant and Derek J.
4 unchanged sentences
10.17+ Executive Employment Agreement, dated September 15, 2008, as amended, by and between the Registrant and Kristen Oelschlager, incorporated by reference to Exhibit 10.2 of the Registrant’s Quarterly Report on Form 10-Q filed with the SEC on May 10, 2021.
−Removed: 10.18+ Executive Employment Agreement, dated October 1, 2008, as amended, by and between the Registrant and Tobin Juvenal, incorporated by reference to Exhibit 10.3 of the Registrant’s Quarterly Report on Form 10-Q filed with the SEC on May 10, 2021.
+Added: 10.18+ Executive Employment Agreement, dated October 1, 2008, as amended, by and between the Registrant and Tob y Juvenal, incorporated by reference to Exhibit 10.3 of the Registrant’s Quarterly Report on Form 10-Q filed with the SEC on May 10, 2021.
10.19+ Castle Biosciences, Inc.
2 unchanged sentences
Severance and Change in Control Plan, incorporated by reference to Exhibit 10.20 of the Registrant ’ s Annual Report on Form 10-K filed with the SEC on February 28, 2024.
−Removed: 10.21+ Amended Participation Agreement, dated April 1, 2024, by and between the Company and Tobin Juvenal, incorporated by reference to Exhibit 10.3 of the Registrant’s Quarterly Report on Form 10-Q filed with the SEC on May 2, 2024.
−Removed: 10.22+ Amended Participation Agreement, dated April 1, 2024, by and between the Company and Kristen Oelschlager, incorporated by reference to Exhibit 10.4 of the Registrant’s Quarterly Report on Form 10-Q filed with the SEC on May 2, 2024.
+Added: 10.21+ Amended Participation Agreement, dated June 20, 2025 by and between the Registrant and Toby Juvenal, incorporated by reference to Exhibit 10.6 of the Registrant’s Quarterly Report on Form 10-Q filed with the SEC on August 4, 2025 .
+Added: 10.22+ Amended Participation Agreement, dated June 20, 2025 by and between the Registrant and Kristen Oelschlager, incorporated by reference to Exhibit 10.7 of the Registrant’s Quarterly Report on Form 10-Q filed with the SEC on August 4, 2025.
10.23+ Amended Participation Agreement, dated April 2, 2024, by and between the Company and Derek Maetzold, incorporated by reference to Exhibit 10.5 of the Registrant’s Quarterly Report on Form 10-Q filed with the SEC on May 2, 2024.
−Removed: 10.24+ Amended Participation Agreement, dated April 2, 2024, by and between the Company and Frank Stokes, incorporated by reference to Exhibit 10.6 of the Registrant’s Quarterly Report on Form 10-Q filed with the SEC on May 2, 2024.
+Added: 10.24+ Amended Participation Agreement, dated June 20, 2025 by and between the Registrant and Frank Stokes, incorporated by reference to Exhibit 10.5 of the Registrant’s Quarterly Report on Form 10-Q filed with the SEC on August 4, 2025.
+Added: Lease Agreements
10.25 Standard Office Lease, dated as of October 5, 2015, by and between the Registrant and Merced Restart Phoenix Investors II, LLC, incorporated by reference to Exhibit 10.14 of the Registrant’s Registration Statement on Form S-1 (File No.
333-232369), as amended, originally filed with the SEC on June 26, 2019.
−Removed: Exhibit Number Description of document
10.26 First Amendment to Lease, dated December 4, 2018, by and between the Registrant and Alturas Siete I, LLC, incorporated by reference to Exhibit 10.15 of the Registrant ’ s Annual Report on Form 10-K, filed with the SEC on March 10, 2020.
10.27 Second Amendment to Standard Office Lease, dated December 16, 2019, by and between the Registrant and Alturas Siete I, LLC, incorporated by reference to Exhibit 10.2 of the Registrant’s Current Report on Form 8-K filed with the SEC on December 19, 2019.
+Added: Exhibit Number Description of document
10.28 Third Amendment to Standard Office Lease, dated November 29, 2021, by and between the Company and Alturas Siete, I, LLC, incorporated by reference to Exhibit 10.2 of the Registrant’s Current Report on Form 8-K filed with the SEC on December 3, 2021.
9 unchanged sentences
10.38 Second Amendment to Commercial Lease, executed December 15, 2022, by and between the Registrant and Tannos Land Holdings III, LLC, incorporated by reference to Exhibit 10.32 of the Registrant ’ s Annual Report on Form 10-K filed with the SEC on February 28, 2023.
+Added: Third Amendment to Commercial Lease, executed April 14, 2025, by and between the Registrant and Tannos Land Holdings III, LLC incorporated by reference to Exhibit 10.2 of the Registrant’s Quarterly Report on Form 10-Q filed with the SEC on May 5, 2025 .
Lease Agreement, dated April 1, 2022, by and between the Registrant and ACA Concourse East Unit 3 LLC, incorporated by reference to Exhibit 10.3 of the Registrant ’ s Quarterly Report on Form 10-Q filed with the SEC on May 9, 2022.
1 unchanged sentence
Confirmation of Amendment Provisions, dated as of August 8, 2024, to the Lease Agreement, dated April 1, 2022, by and between the Registrant and ACA Concourse East Unit 3 LLC, incorporated by reference to Exhibit 10.1 of the Registrant’s Quarterly Report on Form 10-Q filed with the SEC on November 4, 2024.
+Added: Office Lease Agreement dated May 14, 2025, by and between the Registrant and Perimeter Gateway Portfolio LLC , incorporated by reference to Exhibit 10.3 of the Registrant ’ s Quarterly Report on Form 10-Q filed with the SEC on Augu st 4, 2025.
+Added: Purchase Sale Agreements
Purchase Sale Agreement of Land, dated Jul 10, 2023, by and between the Registrant and Hal B.
5 unchanged sentences
Boone, incorporated by reference to Exhibit 10.38 of the Registrant ’ s Annual Report on Form 10-K filed with the SEC on February 28, 2024.
+Added: Loan and Security Agreements
+Added: Loan and Security Agreement, dated March 26, 2024, by and among the Registrant and Silicon Valley Bank, incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K filed with the SEC on March 27, 2024.
+Added: Consent and First Amendment to the Loan and Security Agreement, dated April 4, 2025, by and among the Registrant, Castle Narnia Way Real Estate Holding 1, LLC and Silicon Valley Bank incorporated by reference to Exhibit 10.1 of the Registrant’s Quarterly Report on Form 10-Q filed with the SEC on May 5, 2025
+Added: Other Agreements
Exclusive License Agreement, dated as of November 14, 2009, by and between the Registrant and The Washington University, incorporated by reference to Exhibit 10.17 of the Registrant’s Registration Statement on Form S-1 (File No.
333-232369), as amended, originally filed with the SEC on June 26, 2019.
−Removed: 10.46# Loan and Security Agreement, dated March 26, 2024, by and among the Registrant and Silicon Valley Bank, incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on March 27, 2024.
−Removed: 19.1* Insider Trading Policy
+Added: Other Exhibits
+Added: Insider Trading Policy, incorporated by reference to Exhibit 19.1 of the Registrant ’ s Annual Report on Form 10-K filed with the SEC on February 27, 2025.
21.1* Subsidiaries of the Registrant.
23.1* Consent of KPMG LLP, Independent Registered Public Accounting Firm.
+Added: P ower of Attorney.
+Added: Reference is made to the signature page hereto.
31.1* Certification of Principal Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) of the Exchange Act.
11 unchanged sentences
104* Cover Page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101).
−Removed: _____________________________________
* Filed herewith
12 unchanged sentences
(Principal Executive Officer)
+Added: KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Derek J.
+Added: Maetzold and Frank Stokes and each of them, as his or her true and lawful attorneys-in-fact and agents, each with the full power of substitution, for him or her and in his or her name, place or stead, in any and all capacities, to sign any and all amendments to this Annual Report on Form 10‑K, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacity and on the dates indicated.
19 unchanged sentences
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: Report of Independent Registered Public Accounting Firm
+Added: Report of Independent Registered Public Accounting Firm ( PCA OB ID:
Consolidated Balance Sheets as of December 31, 2025 and 2024
Consolidated Statements of Operations for the Years Ended December 31, 2025, 2024 and 2023
−Removed: Consolidated Statements of Comprehensive Income ( Loss ) for the Years Ended December 31, 2024, 2023 , and 2022
+Added: Consolidated Statements of Comprehensive (Loss) Income for the Years Ended December 31, 2025, 2024 and 2023
Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2025, 2024 and 2023
6 unchanged sentences
We have audited the accompanying consolidated balance sheets of Castle Biosciences, Inc.
−Removed: and subsidiaries (the Company) as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive income (loss), stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2024, and the related notes (collectively, the consolidated financial statements).
+Added: and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive (loss) income, stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes (collectively, the consolidated financial statements).
We also have audited the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
62 unchanged sentences
Accrued compensation 38,287 32,555
+Added: Contingent consideration 1,000 —
Operating lease liabilities 1,325 1,665
3 unchanged sentences
Long-term debt 9,640 9,745
+Added: Noncurrent portion of contingent consideration 1,500 —
Noncurrent operating lease liabilities 25,217 14,345
4 unchanged sentences
Stockholders’ Equity
−Removed: Preferred stock, $ 0.001 par value;
+Added: Preferred stock, $ 0.001 par value per share;
10,000,000 shares authorized as of December 31, 2025 and 2024;
no shares issued and outstanding as of December 31, 2025 and 2024
−Removed: Common stock, $ 0.001 par value;
+Added: Common stock, $ 0.001 par value per share;
200,000,000 authorized as of December 31, 2025 and 2024;
12 unchanged sentences
NET REVENUES $ 344,229 $ 332,069 $ 219,788
−Removed: OPERATING EXPENSES AND OTHER OPERATING INCOME
+Added: OPERATING EXPENSES
Cost of sales (exclusive of amortization of acquired intangible assets) 71,028 60,205 44,982
2 unchanged sentences
Amortization of acquired intangible assets 34,838 11,106 9,013
−Removed: Change in fair value of contingent consideration — — ( 18,287 )
Total operating expenses, net 387,039 323,399 287,765
−Removed: Operating income (loss) 8,670 ( 67,977 ) ( 72,855 )
+Added: Operating (loss) income ( 42,810 ) 8,670 ( 67,977 )
Interest income 11,772 12,916 10,623
−Removed: Changes in fair value of trading securities 555 — —
+Added: Net gains on equity securities 1,466 555 —
Interest expense ( 86 ) ( 577 ) ( 11 )
−Removed: Income (loss) before income taxes 21,564 ( 57,365 ) ( 68,904 )
−Removed: Income tax expense (benefit) 3,319 101 ( 1,766 )
−Removed: Net income (loss) $ 18,245 $ ( 57,466 ) $ ( 67,138 )
−Removed: Earnings (loss) per share:
+Added: Other income 144 — —
+Added: (Loss) income before income taxes ( 29,514 ) 21,564 ( 57,365 )
+Added: Income tax (benefit) expense ( 5,356 ) 3,319 101
+Added: Net (loss) income $ ( 24,158 ) $ 18,245 $ ( 57,466 )
+Added: (Loss) earnings per share:
Basic $ ( 0.83 ) $ 0.66 $ ( 2.14 )
5 unchanged sentences
CASTLE BIOSCIENCES, INC.
−Removed: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
+Added: CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(in thousands)
1 unchanged sentence
2025 2024 2023
−Removed: Net income (loss) $ 18,245 $ ( 57,466 ) $ ( 67,138 )
−Removed: Other comprehensive income (loss):
−Removed: Net unrealized gain (loss) on debt securities held as available-for-sale 94 517 ( 381 )
−Removed: Comprehensive income (loss) $ 18,339 $ ( 56,949 ) $ ( 67,519 )
+Added: Net (loss) income $ ( 24,158 ) $ 18,245 $ ( 57,466 )
+Added: Other comprehensive income:
+Added: Net unrealized gain on marketable investment securities 37 94 517
+Added: Comprehensive (loss) income $ ( 24,121 ) $ 18,339 $ ( 56,949 )
The accompanying notes are an integral part of these consolidated financial statements.
5 unchanged sentences
Deficit Accumulated
−Removed: Other Comprehensive Income (Loss) Total
+Added: Other Comprehensive (Loss) Income
Stockholders’
4 unchanged sentences
Exercise of common stock options 71,525 — 269 — — 269
−Removed: Issuance of common stock from vested restricted stock units and payment of employees’ taxes 183,887 — ( 1,688 ) — — ( 1,688 )
+Added: Issuance of common stock from vested restricted stock units, net of shares withheld for taxes 645,454 — ( 5,134 ) — — ( 5,134 )
Issuance of common stock under the employee stock purchase plan 139,872 — 2,714 — — 2,714
−Removed: Issuance of common stock in acquisition of business 763,887 1 17,110 — — 17,111
−Removed: Net unrealized loss on marketable investment securities — — — — ( 381 ) ( 381 )
+Added: Net unrealized gain on marketable investment securities — — — — 517 517
Net loss — — — ( 57,466 ) — ( 57,466 )
3 unchanged sentences
Exercise of common stock options 135,875 — 2,017 — — 2,017
−Removed: Issuance of common stock from vested restricted stock units and payment of employees’ taxes 645,454 — ( 5,134 ) — — ( 5,134 )
+Added: Issuance of common stock from vested restricted stock units, performance stock units, net of shares withheld for taxes 769,100 — ( 8,762 ) — — ( 8,762 )
Issuance of common stock under the employee stock purchase plan 167,688 1 2,651 — — 2,652
Net unrealized gain on marketable investment securities — — — — 94 94
−Removed: Net loss — — — ( 57,466 ) — ( 57,466 )
+Added: Net income — — — 18,245 — 18,245
BALANCE, DECEMBER 31, 2024
2 unchanged sentences
Exercise of common stock options 108,458 — 2,206 — — 2,206
−Removed: Issuance of common stock from vested restricted stock units, performance stock units and payment of employees’ taxes 769,100 — ( 8,762 ) — — ( 8,762 )
+Added: Issuance of common stock from vested restricted stock units, net of shares withheld for taxes 933,763 1 ( 11,658 ) — — ( 11,657 )
Issuance of common stock under the employee stock purchase plan 160,898 1 2,716 — — 2,717
Net unrealized gain on marketable investment securities — — — — 37 37
−Removed: Net income — — — 18,245 — 18,245
+Added: Net loss — — — ( 24,158 ) — ( 24,158 )
BALANCE, DECEMBER 31, 2025
7 unchanged sentences
OPERATING ACTIVITIES
−Removed: Net income (loss) $ 18,245 $ ( 57,466 ) $ ( 67,138 )
−Removed: Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
+Added: Net (loss) income $ ( 24,158 ) $ 18,245 $ ( 57,466 )
+Added: Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation and amortization 40,771 15,997 12,330
Stock-based compensation expense 45,893 50,320 51,219
−Removed: Change in fair value of contingent consideration — — ( 18,287 )
−Removed: Change in fair value of trading securities ( 555 ) — —
+Added: Net gains on equity securities ( 1,466 ) ( 555 ) —
Deferred income taxes ( 6,228 ) 1,401 ( 223 )
15 unchanged sentences
Proceeds from maturities of marketable investment securities 189,200 183,900 186,500
+Added: Proceeds from sale of equity securities 1,533 — —
+Added: Purchases of debt securities classified as held-to-maturity ( 5,569 ) — —
+Added: Asset acquisition, net of cash and cash equivalents acquired ( 18,727 ) — —
+Added: Issuance of loan receivable ( 2,114 ) — —
Purchases of property and equipment ( 36,021 ) ( 28,326 ) ( 13,621 )
Proceeds from sale of property and equipment 45 18 13
−Removed: Acquisition of business, net of cash and cash equivalents acquired — — ( 26,966 )
−Removed: Asset acquisitions, net of cash and cash equivalents acquired — — 547
Net cash used in investing activities ( 60,367 ) ( 50,137 ) ( 16,183 )
4 unchanged sentences
Repayment of principal portion of finance lease liabilities ( 115 ) ( 97 ) ( 142 )
+Added: Proceeds from lease incentives received 190 — —
Proceeds from issuance of term debt — 10,000 —
−Removed: Net cash provided by (used in) financing activities 6,139 ( 2,298 ) 1,515
+Added: Net cash (used in) provided by financing activities ( 6,960 ) 6,139 ( 2,298 )
+Added: NET CHANGE IN CASH AND CASH EQUIVALENTS ( 2,980 ) 20,868 ( 24,107 )
+Added: Beginning of year 119,709 98,841 122,948
+Added: End of year $ 116,729 $ 119,709 $ 98,841
The accompanying notes are an integral part of these consolidated financial statements.
4 unchanged sentences
2025 2024 2023
−Removed: NET CHANGE IN CASH AND CASH EQUIVALENTS 20,868 ( 24,107 ) ( 206,685 )
−Removed: Beginning of year 98,841 122,948 329,633
−Removed: End of year $ 119,709 $ 98,841 $ 122,948
SUPPLEMENTAL DISCLOSURE OF CASH PAID FOR:
−Removed: Interest $ 434 $ 11 $ 16
−Removed: Income taxes $ 2,503 $ 198 $ 120
+Added: Interest paid, net of amounts capitalized $ 59 $ 434 $ 11
+Added: Income taxes, net $ 1,601 $ 2,503 $ 198
DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
+Added: Asset acquisition, liability for contingent consideration $ 2,500 $ — $ —
Accrued purchases of property and equipment $ 11,337 $ 2,231 $ 1,226
3 unchanged sentences
Finance lease assets obtained in exchange for lease obligations $ 119 $ 218 $ —
−Removed: Common stock issued in acquisition of business $ — $ — $ 17,111
The accompanying notes are an integral part of these consolidated financial statements.
24 unchanged sentences
GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.
−Removed: Significant items subject to such estimates include revenue recognition, the valuation of stock-based compensation, assessing future tax exposure and the realizability of deferred tax assets, the useful lives and recoverability of long-lived assets, the goodwill impairment test, the valuation of acquired intangible assets and the valuation of contingent consideration and other contingent liabilities.
+Added: Significant items subject to such estimates include revenue recognition, the valuation of stock-based compensation, assessing future tax exposure and the realizability of deferred tax assets, the useful lives and recoverability of long-lived assets, the goodwill impairment test, the valuation of acquired intangible assets, allowance for credit losses for assets measured at amortized cost, the valuation of contingent consideration, and other contingent liabilities.
We base these estimates on historical and anticipated results, trends and various other assumptions that we believe are reasonable under the circumstances, including assumptions as to future events.
1 unchanged sentence
Actual results could differ from those estimates and assumptions.
−Removed: Segment Reporting
−Removed: Operating segments are components of an enterprise engaging in business activities from which it may recognize revenues and incur expenses, where discrete financial information is available, and where its operating results are regularly reviewed by the public entity's chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and to assess its performance.
−Removed: A CODM may be an individual or a
CASTLE BIOSCIENCES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: decision-making group.
+Added: Segment Reporting
+Added: Operating segments are components of an enterprise engaging in business activities from which it may recognize revenues and incur expenses, where discrete financial information is available, and where its operating results are regularly reviewed by the public entity’s chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and to assess its performance.
+Added: A CODM may be an individual or a decision-making group.
A reportable segment consists of one or more operating segments.
10 unchanged sentences
Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such determination at each balance sheet date.
−Removed: All debt securities are classified as available-for-sale (“AFS”) and are recorded at fair value in accordance with ASC 320.
−Removed: We recognize the unrealized gains and losses related to changes in fair value as a separate component of accumulated other comprehensive income (loss) within total stockholders’ equity, net of any related deferred income tax effects, on the consolidated balance sheets.
−Removed: Premiums or discounts from par value are amortized over the life of the underlying investment and are included in interest income in the consolidated statements of operations.
−Removed: Realized gains and losses on available-for-sale securities, if any, are calculated at the individual security level and are included in interest income in the consolidated statements of operations.
−Removed: Impairments of available-for-sale debt securities, if any, are recorded in the consolidated statements of operations.
−Removed: Our equity securities consist of investments in shares of common stock which are listed and traded on the Nasdaq Global Market.
−Removed: All trading securities are recognized in accordance with ASC Topic 321, Investments-Equity Securities and reported at their readily determinable fair values as quoted by market exchanges where changes in fair value are included in changes in fair value of trading securities in the consolidated statements of operations.
−Removed: All changes in a marketable security’s fair value are reported in earnings as they occur, as such, the sale of our trading securities does not necessarily give rise to a significant gain or loss.
+Added: Debt securities that are classified as available-for-sale (“AFS”) are recorded at fair value in accordance with ASC 320.
+Added: We recognize the unrealized gains and losses related to changes in fair value as a separate component of accumulated other comprehensive (loss) income within total stockholders’ equity, net of any related deferred income tax effects, on the consolidated balance sheets.
+Added: Debt securities that are classified as held-to-maturity (“HTM”) are reported at amortized cost in accordance with ASC 320.
+Added: Premiums or discounts from par value are amortized to interest income over the life of the underlying investment and are included in interest income in the consolidated statements of operations.
+Added: Realized gains and losses on AFS and HTM debt securities, if any, are calculated at the individual security level and are included in interest income in the consolidated statements of operations.
+Added: Impairments of AFS or HTM debt securities, if any, are recorded in the consolidated statements of operations.
+Added: Our equity securities consist of investments in shares of common stock which are listed and traded on the Nasdaq Global Market and certain foreign exchanges.
+Added: All equity securities are recognized in accordance with ASC Topic 321, Investments-Equity Securities (“ASC 321”) and reported at their readily determinable fair values based on quoted market prices where changes in fair value are included in net gains on equity securities in the consolidated statements of operations.
+Added: For investments denominated in a foreign currency, the fair value is remeasured into U.S.
+Added: dollars using exchange rates in effect at each balance sheet date in accordance with ASC Topic 830, Foreign Currency Matters (“ASC 830”).
+Added: As a result, changes in fair value include the effects of both market price movements and foreign currency exchange rate fluctuations.
+Added: All changes in a marketable security’s fair value are reported in earnings as they occur, and the sale of our equity securities does not necessarily give rise to a significant gain or loss.
Investments in equity securities are classified as either current or long-term depending upon management’s intentions.
+Added: We updated our terminology to refer to these investments as equity securities rather than trading securities to align with the terminology in ASC 321.
See Notes 5 and 11 for further details.
6 unchanged sentences
See Note 3 for further details.
+Added: CASTLE BIOSCIENCES, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Added: Collaborative Arrangements
+Added: We assess whether our licensing and other agreements are collaborative arrangements based on whether they involve joint operating activities and whether both parties have active participation in the arrangement and are exposed to significant risks and rewards.
+Added: For arrangements that we determine are collaborations, we identify each unit of account and then determine whether a customer relationship exists for that unit of account.
+Added: If we determine that a performance obligation within the collaborative arrangement is with a customer, we apply ASC 606.
+Added: If a portion of a distinct bundle of goods or services within the collaborative arrangement is not with a customer, we apply recognition and measurement based on an analogy to authoritative accounting literature or, if there is no appropriate analogy, a reasonable, rational, and consistently applied accounting policy election.
+Added: To the extent the arrangement is within the scope of ASC Topic 808, Collaborative Arrangements (“ASC 808”), we assess whether aspects of the arrangement are within the scope of other accounting literature.
+Added: In June 2025, we entered into a Collaboration and License Agreement with SciBase Holding AB (“SciBase”).
+Added: Following approval under the Swedish Screening of Foreign Direct Investments Act in the third quarter of 2025, subsequent to approval, we completed our investment in SciBase.
+Added: The agreement aims to jointly develop diagnostic tests for dermatologic diseases, initially focused on atopic dermatitis, by combining SciBase’s Electrical Impedance Spectroscopy technology with our diagnostic and development expertise.
+Added: Under the arrangement, we hold development and commercialization rights in North America, while SciBase retains rights in certain other territories.
+Added: SciBase is entitled to royalties on our product sales, a mark-up on product sales to us, and a milestone payment upon achieving specified sales thresholds.
+Added: Development costs are shared;
+Added: however, SciBase deferred its initial clinical development costs for the initial indication and we will recover those costs through future royalty payments reductions.
+Added: We determined the agreement is a collaborative arrangement under ASC 808.
+Added: Certain elements of the arrangement, including license rights and sales-based royalty provisions, represent transactions with a customer and are therefore accounted for under ASC 606.
+Added: Other elements, such as shared development activities and cost reimbursements, are accounted for in accordance with ASC 808 and presented as reductions to research and development (“R&D”) expenses.
Accounts Receivable and Allowance for Credit Losses
9 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Added: Convertible Loan Receivable
+Added: On November 7, 2025, we entered into a Convertible Loan Agreement with SciBase (the “Convertible Loan Receivable”), pursuant to which we loaned SEK 20.0 million, approximately $ 2.1 million based on the exchange rate in effect on November 7, 2025.
+Added: The Convertible Loan Receivable bears interest at a rate of 2.00 % plus the three-month Stockholm Interbank Offered Rate (“STIBOR”), payable quarterly.
+Added: SciBase may prepay all or a portion of the Convertible Loan Receivable at any time.
+Added: The Convertible Loan Receivable matures on November 7, 2030, at which time we have the option, at our sole discretion, to convert the outstanding principal plus accrued interest into shares of SciBase that are listed on the Nasdaq First North Growth Market in Sweden, receive full repayment in cash, or receive a combination of cash and shares.
+Added: We accounted for the convertible loan as a receivable within the scope of ASC Topic 310, Receivables.
+Added: The carrying amount of the convertible loan is presented at amortized cost, within long-term other assets in the consolidated balance sheets.
+Added: The Convertible Loan Agreement is remeasured into U.S.
+Added: dollars using exchange rates in effect at each balance sheet date in accordance with ASC 830 with changes in exchange rates recognized in earnings.
+Added: In addition, the embedded conversion feature to shares of SciBase did not meet the definition of a derivative and was not bifurcated from the host contract under ASC Topic 815, Derivatives and Hedging .
+Added: We have determined that expected credit losses associated with the loan are insignificant and, accordingly, have not recorded a credit loss allowance under ASC Topic 326-20, Financial Instruments - Credit Losses.
+Added: Interest income on the Convertible Loan Receivable is recognized quarterly and included in interest income in the consolidated statements of operations.
+Added: Accrued interest receivable is recorded within prepaid expenses and other current assets in the consolidated balance sheets.
We carry inventories of test supplies in our laboratory facilities.
4 unchanged sentences
Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life of the asset or the term of the lease.
−Removed: Our leasehold improvements primarily relate to our office and laboratory facilities in Friendswood, Texas, Phoenix, Arizona and Pittsburgh, Pennsylvania, and are generally being depreciated through the end of the lease terms in 2025 and 2033, respectively.
+Added: Our leasehold improvements primarily relate to our office and laboratory facilities located in Friendswood, Texas, Phoenix, Arizona and Pittsburgh, Pennsylvania, and are generally depreciated over the remaining lease terms, which end in 2026, 2034 and 2033, respectively.
Maintenance and repairs are charged to expense as incurred, and material improvements are capitalized.
7 unchanged sentences
Events and changes in circumstances indicating that goodwill may be impaired include sustained declines in the price of our common stock, increased competition, changes in macroeconomic developments, unfavorable government or regulatory developments and changes in coverage or reimbursement conditions.
−Removed: Goodwill is tested for impairment at the reporting until level where goodwill is held.
+Added: CASTLE BIOSCIENCES, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Added: Goodwill is tested for impairment at the reporting unit level where goodwill is held.
Testing begins with completion of an optional qualitative assessment.
17 unchanged sentences
Asset acquisitions are accounted for by allocating the cost of the acquisition, including transaction costs, to the individual assets acquired and liabilities assumed on a relative fair value basis without recognition of goodwill.
−Removed: Business combinations
−Removed: CASTLE BIOSCIENCES, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: are accounted for using the acquisition method.
+Added: If the total consideration transferred is less than the aggregate fair value of the net assets acquired (i.e., a bargain purchase), the difference is not recognized as a gain.
+Added: Instead, the difference is allocated to the cost of the acquired assets on a relative fair value basis.
+Added: Business combinations are accounted for using the acquisition method.
Under the acquisition method, goodwill is measured as a residual amount equal to the fair value of the consideration transferred less the net recognized fair value of the identifiable assets acquired and the liabilities assumed, as of the acquisition date, and transaction costs are expensed as incurred.
Contingent Consideration
−Removed: Under the terms of business combinations or asset acquisitions, we may be required to pay additional contingent consideration if specified future events occur or if certain conditions are met.
−Removed: In a business combination, in accordance with ASC 805, contingent consideration is recorded at fair value as of the acquisition date and classified as liabilities or equity based on applicable U.S.
−Removed: For contingent consideration classified as liabilities, we remeasure the contingent consideration at fair value each period with changes in fair value recorded in the statements of operations each period.
−Removed: For contingent consideration in transactions that are not business combinations, we apply U.S.
−Removed: With respect to additional contingent consideration that must or may be settled by issuance of a variable number of shares, we account for the contingent consideration as a liability in accordance with ASC Topic 480, Distinguishing Liabilities from Equity (“ASC 480”).
−Removed: In accordance with ASC 480, we record the contingent consideration initially and subsequently at fair value with changes in fair value recorded in the statements of operations each period.
+Added: Under the terms of business combinations or asset acquisitions, we may be required to pay additional consideration if specified future events occur or if certain conditions are met.
+Added: In May 2025, we acquired Capsulomics, Inc., d/b/a Previse (“Previse”), which was recorded as an asset acquisition, and agreed to pay additional consideration of up to $ 2.5 million in cash based on the achievement of certain commercial milestones (the “Earnout Payments”).
+Added: We account for the contingent consideration as a liability in accordance with ASC Topic 450-20, Loss Contingencies (“ASC 450-20”) when it is both probable and reasonably estimable.
+Added: In accordance with ASC 450-20, we recorded the contingent consideration at the amount required to settle the respective obligation, and subsequent changes are recognized as adjustments to the cost basis of the acquired assets.
+Added: These changes are allocated to the acquired assets based on their relative fair values as of the date of acquisition.
+Added: In December of 2025, one of the commercial milestones was achieved.
+Added: As a result, an Earnout Payment of $ 0.5 million became payable and will be paid within 60 days of milestone achievement.
Contingent consideration is classified as current or noncurrent in the consolidated balance sheets based on the contractual timing of future settlement.
−Removed: For additional information on the contingent consideration, see Notes 6 and 12.
+Added: CASTLE BIOSCIENCES, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
We account for leases in accordance with ASC Topic 842, Leases (“ ASC 842”) .
8 unchanged sentences
Research and Development
−Removed: Research and development (“R&D”) costs are charged to operations as incurred.
+Added: R&D costs are charged to operations as incurred.
Advance payments for goods and services that will be used in future R&D activities are expensed when the activity has been performed or when the goods have been received rather than when the payment is made.
5 unchanged sentences
We expense all SG&A costs as incurred.
−Removed: CASTLE BIOSCIENCES, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Accrued Compensation
4 unchanged sentences
As of December 31, 2025 and 2024, we accrued approximately $ 28.1 million and $ 23.3 million, respectively, for liabilities associated with these bonus plans.
−Removed: These amounts are classified as current or noncurrent accrued liabilities in the balance sheets based on the expected timing of payment.
+Added: These amounts are classified as current or noncurrent accrued liabilities based on the expected timing of payment.
Retirement Plan
3 unchanged sentences
The higher amount for the year ended December 31, 2025 primarily reflects an increase in the number of employees compared to the years ended December 31, 2024 and 2023.
+Added: CASTLE BIOSCIENCES, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
We use the asset and liability method of accounting for income taxes.
10 unchanged sentences
The effect of a change in tax rates is recognized in the period of enactment.
−Removed: If we were to be levied interest and penalties by the Internal Revenue Service, these amounts would be recognized as a component of income tax expense in the consolidated statement of operations.
+Added: If we were to be levied interest and penalties by the Internal Revenue Service, these amounts would be recognized as a component of income tax expense in the consolidated statements of operations.
Our policy for recording interest and penalties associated with uncertain tax positions is to record such items as a component of tax expense.
9 unchanged sentences
The requisite service period for PSUs is based on an analysis of vesting requirements and performance conditions for the particular award.
−Removed: Certain employees are entitled to acceleration of vesting of a portion of their awards upon retirement, subject to age, service and notice requirements.
−Removed: Share-based awards falling into the scope of the 2023 Retirement Policy are accounted
−Removed: CASTLE BIOSCIENCES, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: for as a modification of existing awards under ASC Topic 718, Compensation – Stock Compensation.
−Removed: The modifications do not result in recognition of incremental compensation cost however, do result in a new estimate of the requisite service period, which we reassess at each balance sheet date.
+Added: Certain employees are entitled to acceleration of vesting of a portion of their awards upon retirement, subject to age, service and notice requirements (“Retirement Policy”).
+Added: Stock-based awards falling into the scope of the Retirement Policy are accounted for as a modification of existing awards under ASC Topic 718, Compensation – Stock Compensation .
+Added: The modifications do not result in the recognition of incremental compensation cost, however, they do result in a new estimate of the requisite service period, which we reassess at each balance sheet date.
For the ESPP, the requisite service period is generally the period of time from the offering date to the purchase date.
Forfeitures are accounted for as they occur.
−Removed: Comprehensive Income (Loss)
−Removed: Comprehensive income (loss) is defined as a change in equity during a period from transactions and other events and circumstances from non-owner sources.
−Removed: Comprehensive income (loss) is made up of net loss plus net unrealized gain (loss) on marketable investment securities, which is our only other item of other comprehensive income (loss).
−Removed: CARES Act Payroll Tax Deferral
−Removed: The CARES Act permitted employers to defer the payment of the employer share of social security taxes due for the period beginning March 27, 2020 and ending December 31, 2020.
−Removed: Of the amounts deferred, 50% were required to be paid by December 31, 2021 and the remaining 50% were required to be paid by December 31, 2022.
−Removed: We began deferring payment of the employer share of social security taxes in May 2020.
−Removed: Of the $ 0.6 million originally deferred, 50% was repaid during the year ended December 31, 2021 and the remaining $ 0.3 million of such taxes were repaid during the year ended December 31, 2022.
+Added: Comprehensive (Loss) Income
+Added: Comprehensive (loss) income is defined as a change in equity during a period from transactions and other events and circumstances from non-owner sources.
+Added: Comprehensive (loss) income is made up of net (loss) income plus net unrealized gain (loss) on marketable investment securities, which is our only other item of other comprehensive (loss) income.
+Added: CASTLE BIOSCIENCES, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Recently Adopted Accounting Pronouncements
−Removed: In November 2023, the FASB issued ASU No.
−Removed: 2023-07, Segment Reporting (Topic 280)—Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which require public companies disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually.
−Removed: The guidance was effective for public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.
−Removed: Early adoption was permitted.
−Removed: The guidance was applied retrospectively to all periods presented in the financial statements, unless it was impracticable.
−Removed: We have adopted the guidance under this ASU 2023-07 on a retrospective basis with an effective date January 1, 2022.
−Removed: For additional information on our segment reporting, see Note 17.
−Removed: Accounting Pronouncements Yet to be Adopted
−Removed: In December 2023, the FASB issued ASU No.
+Added: In December 2023, the FASB issued Accounting Standards Update (“ASU”) No.
2023-09, Income Taxes (Topic 740) — Improvements to Income Tax Disclosures (“ASU 2023-09”), which is intended to enhance the transparency and decision usefulness of income tax disclosures.
The amendments in ASU 2023-09 provide for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information.
−Removed: ASU 2023-09 is effective for the Company prospectively to all annual periods beginning after December 15, 2024.
−Removed: Early adoption is permitted.
−Removed: We are currently evaluating the impact this update will have on the consolidated financial statements and disclosures.
+Added: The guidance was effective for public entities for fiscal years beginning after December 15, 2024.
+Added: We adopted ASU 2023-09 prospectively in fiscal year 2025 for the annual reporting period ending December 31, 2025.
+Added: F or additional information on our tax disclosure, see Note 15.
+Added: Accounting Pronouncements Yet to be Adopted
In November 2024, the FASB issued ASU No.
5 unchanged sentences
We are currently evaluating the impact this update will have on the consolidated financial statements and disclosures.
+Added: In July 2025, the FASB issued ASU No.
+Added: 2025-05, Financial Instruments— Credit Losses (Topic 326):
+Added: Practical Expedient for Certain Current Receivables (“ASU 2025-05”), which provides a practical expedient for estimating expected credit losses on current accounts receivable and contract assets arising from transactions under ASC 606.
+Added: The practical expedient allows entities to assume that current conditions remain unchanged over the remaining life of the receivables.
+Added: ASU 2025-05 is effective for annual periods beginning after December 15, 2025, including interim periods within those annual periods.
+Added: Early adoption is permitted.
+Added: We are currently evaluating the impact this update will have on the consolidated financial statements and disclosures.
W e have evaluated all other recently issued, but not yet effective, accounting pronouncements and do not believe that these accounting pronouncements will have any material impact on the consolidated financial statements or disclosures upon adoption.
All of our revenues from contracts with customers are associated with the provision of testing services.
−Removed: Our revenues are primarily attributable to our DecisionDx®-Melanoma test for cutaneous melanoma and our DecisionDx®-SCC test for cutaneous squamous cell carcinoma (“SCC”).
−Removed: We also provide a test for patients diagnosed with Barrett’s esophagus (“BE”), the TissueCypher® test, a test for patients with suspicious pigmented
−Removed: CASTLE BIOSCIENCES, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: lesions, MyPath® Melanoma and DiffDx®-Melanoma, and a test for uveal melanoma (“UM”), DecisionDx®-UM.
−Removed: We also began offering a pharmacogenomics (“PGx”) testing service focused on mental health, IDgenetix®, following a business combination completed in April 2022.
−Removed: Information on the disaggregation of revenues is included below.
+Added: Our revenues are primarily attributable to our DecisionDx®-Melanoma test for cutaneous melanoma, our TissueCypher® test for patients diagnosed with Barrett’s esophagus and our DecisionDx®-SCC test for cutaneous squamous cell carcinoma.
+Added: We also provide our MyPath® Melanoma test for patients with melanocytic lesions, our DecisionDx®-UM test for uveal melanoma, and a pharmacogenomic testing service focused on mental health, IDgenetix®.
Once we satisfy our performance obligations and bill for the service, the timing of the collection of payments may vary based on the payment practices of the third-party payor and the existence of contractually established reimbursement rates.
5 unchanged sentences
These situations may result in a delay in the collection of payments.
+Added: CASTLE BIOSCIENCES, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The Medicare claims that are covered by Medicare are generally paid at a rate established on Medicare’s Clinical Laboratory Fee Schedule or by the respective Medicare contractor within 30 days from receipt.
−Removed: Medicare claims that were either submitted to Medicare prior to the LCD or other coverage commencement date or are not covered but meet the definition of being medically reasonable and necessary pursuant to the controlling Section 1862(a)(1)(A) of the Social Security Act are generally appealed and may ultimately be paid at the first (termed ‘‘redetermination’’), second (termed ‘‘reconsideration’’) or third level of appeal ( de novo hearing with an Administrative Law Judge).
+Added: Medicare claims that were either submitted to Medicare prior to the local coverage determination or other coverage commencement date or are not covered but meet the definition of being medically reasonable and necessary pursuant to the controlling Section 1862(a)(1)(A) of the Social Security Act are generally appealed and may ultimately be paid at the first (termed “redetermination”), second (termed “reconsideration”) or third level of appeal ( de novo hearing with an Administrative Law Judge).
A successful appeal at any of these levels may result in prompt payment.
−Removed: In the absence of Medicare coverage, contractually established reimbursements rates or other coverage, we have concluded that our contracts include variable consideration because the amounts paid by Medicare or commercial health insurance carriers may be paid at less than our standard rates or not paid at all, with such differences considered implicit price concessions.
+Added: In the absence of Medicare coverage, contractually established reimbursement rates or other coverage, we have concluded that our contracts include variable consideration because the amounts paid by Medicare or commercial health insurance carriers may be paid at less than our standard rates or not paid at all, with such differences considered implicit price concessions.
Variable consideration attributable to these price concessions is measured at the expected value using the “most likely amount” method under ASC 606.
5 unchanged sentences
Variable consideration is evaluated each reporting period and adjustments are recorded as increases or decreases in revenues.
−Removed: Included in revenues for the years ended December 31, 2024, 2023, and 2022 were $ 1.8 million of net negative revenue adjustments, $ 4.5 million of net negative revenue adjustments, and $ 2.0 million of net negative revenue adjustments, respectively, associated with changes in estimated variable consideration related to performance obligations satisfied in previous periods.
+Added: Included in revenues for the years ended December 31, 2025, 2024 and 2023 were $ 7.6 million, $ 1.8 million and $ 4.5 million of net negative revenue adjustments, respectively, associated with changes in estimated variable consideration related to performance obligations satisfied in previous periods.
These amounts include (i) adjustments for actual collections versus estimated amounts and (ii) cash collections and the related recognition of revenue in current period for tests delivered in prior periods due to the release of the constraint on variable consideration.
2 unchanged sentences
Contract balances consisted solely of accounts receivable (both current and noncurrent) as of December 31, 2025 and 2024.
−Removed: CASTLE BIOSCIENCES, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Disaggregation of Revenues
7 unchanged sentences
Total net revenues $ 344,229 $ 332,069 $ 219,788
−Removed: (1) Consists of DecisionDx-Melanoma, DecisionDx-SCC and our Diagnostic Gene Expression Profile offering (MyPath Melanoma and DiffDx-Melanoma)
+Added: (1) Consists of DecisionDx-Melanoma, DecisionDx-SCC and MyPath Melanoma.
(2) Consists of TissueCypher, DecisionDx-UM and IDgenetix.
1 unchanged sentence
The characteristics for each test in our single segment are similar, with each test having a single performance obligation.
−Removed: Our CODM is the single individual responsible for managing our segment and reviews consolidated results and budgets in assessing performance and in allocated resources.
+Added: Our CODM is the single individual responsible for managing our segment and reviews consolidated results and budgets in assessing performance and in allocating resources.
See Note 16 for additional information about our reportable segment.
+Added: CASTLE BIOSCIENCES, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Payor Concentration
We rely upon reimbursements from third-party government payors (primarily Medicare) and private-payor insurance companies to collect accounts receivable related to sales of our tests.
−Removed: Our significant third-party payors and their related revenues as a percentage of total revenues and accounts receivable balances were as follows:
+Added: Our significant third-party payors and their related revenues, each of which accounted for more than 10% of total revenues or accounts receivable balances were as follows:
Percentage of Revenues Percentage of
2 unchanged sentences
Accounts Receivable
−Removed: Year Ended December 31, As of December 31, As of December 31,
+Added: Years Ended December 31,
+Added: As of December 31, As of December 31,
2025 2024 2023 2025 2024 2025 2024
3 unchanged sentences
* Less than 10%
−Removed: There were no other third-party payors that individually accounted for more than 10% of our total revenue or accounts receivable for the periods shown in the table above.
−Removed: Earnings (loss) Per Share
−Removed: Basic earnings (loss) per share is computed by dividing net loss for the period by the weighted-average number of common shares outstanding during the period.
−Removed: Diluted earnings (loss) per share reflects the additional dilution from potential issuances of common stock, such as stock issuable pursuant to the exercise of stock options, vesting of RSUs and PSUs or purchases under the ESPP.
+Added: (Loss) Earnings Per Share
+Added: Basic (loss) earnings per share is computed by dividing net (loss) income for the period by the weighted-average number of common shares outstanding during the period.
+Added: Diluted (loss) earnings per share reflects the additional dilution from potential issuances of common stock, such as stock issuable pursuant to the exercise of stock options, vesting of RSUs and PSUs or purchases under the ESPP.
The treasury stock method is used to calculate the potential dilutive effect of these common stock equivalents.
−Removed: Contingently issuable PSU awards are included in the computation of diluted loss per share when the applicable performance criteria would be met and the common shares would be issuable if the end of the reporting period were the end of the contingency period.
−Removed: However, potentially dilutive shares are excluded from the computation of diluted loss per share when their effect is antidilutive.
−Removed: CASTLE BIOSCIENCES, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: The following table shows the computation of basic and diluted earnings (loss) per share for the following year ended December 31, 2024, 2023, and 2022 (in thousands, except per share data):
+Added: Contingently issuable PSU awards are included in the computation of diluted (loss) earnings per share when the applicable performance criteria would be met and the common shares would be issuable if the end of the reporting period were the end of the contingency period.
+Added: However, potentially dilutive shares are excluded from the computation of diluted (loss) earnings per share when their effect is antidilutive.
+Added: The following table shows the computation of basic and diluted (loss) earnings per share (in thousands, except per share data):
Years Ended December 31,
2025 2024 2023
−Removed: Net income (loss) $ 18,245 $ ( 57,466 ) $ ( 67,138 )
+Added: Net (loss) income $ ( 24,158 ) $ 18,245 $ ( 57,466 )
Weighted-average common shares outstanding, basic 28,986 27,776 26,802
4 unchanged sentences
Weighted-average common shares outstanding, diluted 28,986 29,255 26,802
−Removed: Earnings (loss) per share:
+Added: (Loss) earnings per share:
Basic $ ( 0.83 ) $ 0.66 $ ( 2.14 )
Diluted $ ( 0.83 ) $ 0.62 $ ( 2.14 )
+Added: CASTLE BIOSCIENCES, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Due to the Company reporting a net loss attributable to common stockholders for years ended December 31, 2025 and 2023, all potentially dilutive securities are antidilutive and are excluded from the computations of diluted loss per share.
−Removed: The table below provides the weighted-average number of potential common shares associated with outstanding securities not included in our calculation of diluted earnings (loss) per share for the years ended December 31, 2024, 2023, and 2022 because to do so would be antidilutive.
−Removed: With regard to the PSUs, we assume that the associated performance targets will be met at the target level of performance for purposes of calculating diluted net income per common share until such time that it is probable that actual performance will be above or below target (in thousands):
+Added: The table below provides the weighted-average number of potential common shares associated with outstanding securities not included in our calculation of diluted (loss) earnings per share for the years ended December 31, 2025, 2024 and 2023 because to do so would be antidilutive.
+Added: With regard to the PSUs, we assume that the associated performance targets will be met at the target level of performance for purposes of calculating diluted earnings per common share until such time that it is probable that actual performance will be above or below target (in thousands):
Years Ended December 31,
4 unchanged sentences
Total 7,171 3,136 6,999
−Removed: In addition, in connection with our acquisition of AltheaDx, Inc.
−Removed: (“AltheaDx”) in April 2022, no such shares were determined to have been issued and were excluded from the calculation of diluted income (loss) per share because none of the applicable conditions have been met during the earnout periods and based on the final valuation of the contingent consideration as required in the definitive agreement to acquire AltheaDx.
−Removed: See Notes 6 and 12 for additional information.
−Removed: CASTLE BIOSCIENCES, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Added: In connection with our acquisition of AltheaDx, Inc.
+Added: (“AltheaDx”) in April 2022, we agreed to pay up to an additional $ 75.0 million in cash and common stock upon the achievement of certain commercial milestones for the IDgenetix test during 2022, 2023 and 2024.
+Added: The milestones required to trigger these additional payments were not met in any of those years.
+Added: As a result, no cash payments were made, and no shares of common stock were issued or excluded from the calculation of diluted (loss) earnings per share during those years.
Marketable Investment Securities
1 unchanged sentence
As of December 31,
−Removed: Trading securities (1)
−Removed: Debt securities 169,866 144,258
−Removed: Marketable investment securities $ 173,421 $ 144,258
−Removed: (1) We had no trading securities as of December 31, 2023.
−Removed: Trading securities
−Removed: We recognized $ 0.6 million in gains, all of which were unrealized, on our trading securities for the year ended December 31, 2024.
−Removed: We recognized no gains or losses for the years ended December 31, 2023 and 2022.
+Added: Current marketable investment securities:
+Added: Equity securities $ 5,555 $ 3,555
+Added: Debt securities - AFS 171,631 169,866
+Added: Debt securities - HTM (1)
+Added: Total current marketable investment securities $ 182,776 $ 173,421
+Added: (1) We held no HTM debt securities as of December 31, 2024.
+Added: Equity Securities
+Added: The portion of unrealized gains related to equity securities still held during the period is as follows (in thousands):
+Added: Years Ended December 31,
+Added: 2025 2024 2023
+Added: Net gains on equity securities $ 1,466 $ 555 $ —
+Added: Net gain recognized on equity securities sold 484 — —
+Added: Net unrealized gains recognized on equity securities still held
+Added: $ 982 $ 555 $ —
+Added: CASTLE BIOSCIENCES, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Debt Securities
2 unchanged sentences
Amortized Cost Unrealized Estimated Fair Value
−Removed: government securities $ 169,636 $ 244 $ ( 14 ) $ 169,866
−Removed: Total $ 169,636 $ 244 $ ( 14 ) $ 169,866
+Added: government securities - AFS $ 171,364 $ 269 $ ( 2 ) $ 171,631
+Added: government securities - HTM 5,590 11 — 5,601
+Added: Total debt securities $ 176,954 $ 280 $ ( 2 ) $ 177,232
December 31, 2024
Amortized Cost Unrealized Estimated Fair Value
−Removed: government securities $ 144,122 $ 143 $ ( 7 ) $ 144,258
−Removed: Total $ 144,122 $ 143 $ ( 7 ) $ 144,258
−Removed: Although our U.S.
−Removed: government securities are available to be sold to meet operating needs or otherwise, these securities are generally held through maturity.
−Removed: We classify all investments as current assets, as these are readily available for use in current operations.
−Removed: The cost of securities sold is determined based on the specific identification method for purposes of recording gains and losses.
−Removed: There were no realized gains or losses on sales of debt securities for the years ended December 31, 2024, 2023, and 2022.
+Added: government securities - AFS $ 169,636 $ 244 $ ( 14 ) $ 169,866
+Added: government securities - HTM (1)
+Added: Total debt securities $ 169,636 $ 244 $ ( 14 ) $ 169,866
+Added: (1) We held no HTM debt securities as of December 31, 2024.
+Added: government securities includes both AFS and HTM securities.
+Added: The AFS securities are available to be sold to meet operating needs or otherwise, but are generally held through maturity.
+Added: We classify all AFS investments as current assets, as these are readily available for use in current operations.
+Added: As of December 31, 2025 and 2024, all of our AFS securities had contractual maturities of one year or less.
+Added: We classify our HTM investments as current assets, as we have the positive intent and ability to hold these investments to maturity, and all such maturities are less than one year from the balance sheet date.
We evaluated our U.S.
−Removed: government securities under the available-for-sale debt securities impairment model guidance and determined our investment portfolio is comprised of low-risk, investment grade securities.
+Added: government securities under the AFS and HTM impairment model guidance, respectively, and determined our investment portfolio is comprised of low-risk, investment grade securities.
+Added: For the years ended December 31, 2025, 2024 and 2023, the unrealized losses on our AFS and HTM U.S.
+Added: government securities are not attributed to credit risk.
We believe that an allowance for credit losses is unnecessary because the unrealized losses on certain of our marketable investment securities are due to market factors.
−Removed: Unrealized losses were immaterial for the years ended December 31, 2024, 2023, and 2022.
−Removed: In addition, there were no attributable credit risks, and no credit-related or noncredit-related impairment losses recognized, for the years ended December 31, 2024, 2023 and 2022.
The allowance for credit losses was zero as of December 31, 2025 and 2024.
−Removed: As of December 31, 2024 and 2023, all of our available-for-sale debt securities had contractual maturities of one year or less.
−Removed: Accrued interest receivable is included in prepaid expenses and other current assets in the consolidated balance sheets.
−Removed: As of December 31, 2024 and 2023 the accrued interest receivable balance was immaterial.
+Added: There were no realized gains or losses on sales of debt securities for the years ended December 31, 2025, 2024 and 2023.
+Added: In addition, there were no credit-related or noncredit-related impairment losses recognized for the years ended December 31, 2025, 2024 and 2023.
+Added: Accrued interest receivable for our AFS and HTM U.S.
+Added: government securities is included in prepaid expenses and other current assets in the consolidated balance sheets.
+Added: As of December 31, 2025 and 2024, the accrued interest receivable related to AFS securities was $ 1.1 million and $ 0.6 million, respectively.
+Added: As of December 31, 2025, the accrued interest receivable related to HTM securities was immaterial.
+Added: There were no amounts accrued as of December 31, 2024, as no securities were classified as HTM at that time.
Additional information relating to the fair value of marketable investment securities can be found in Note 11.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: AltheaDx, Inc.
−Removed: On April 26, 2022, we completed the acquisition of 100 % of the equity interests in AltheaDx which offers the IDgenetix test that focuses on mental health.
−Removed: We acquired AltheaDx for $ 30.5 million in cash and $ 17.1 million in common stock issued, for total consideration of $ 47.6 million.
−Removed: The fair value of assets acquired and liabilities assumed primarily consisted of finite-lived intangible assets of $ 35.0 million, goodwill of $ 10.7 million, cash and cash equivalents of $ 3.5 million and deferred tax liabilities of $ 1.7 million.
−Removed: We concluded that the transaction represents a business combination under ASC 805.
−Removed: The financial results of AltheaDx have been included in the consolidated financial statements since the date of the acquisition.
−Removed: The amount of revenue attributable to AltheaDx included in the consolidated statements of operations from the acquisition date through December 31, 2022 was $ 0.9 million.
−Removed: The loss attributable to AltheaDx included in the consolidated statements of operations from the acquisition date through December 31, 2022 was approximately $ 12.4 million.
−Removed: This amount did not reflect transaction costs from the acquisition or the effects of the valuation allowance reduction discussed in Note 16.
−Removed: Transaction costs associated with the acquisition were $ 1.7 million for the year ended December 31, 2022 and were recognized as expenses, included in SG&A expenses in the consolidated statements of operations.
−Removed: In connection with the acquisition of AltheaDx, we also agreed to pay up to an additional $ 75.0 million in cash and common stock in connection with the achievement of certain milestones based on 2022, 2023, and 2024 commercial milestones for the IDgenetix test (the “AltheaDx Earnout Payments”).
−Removed: Achievement of milestones required to receive additional payment of cash and issuance of stock were not met during the years ended December 31, 2024, 2023 and 2022 and as such, no payments were made during the same periods.
−Removed: As of December 31, 2024, no future obligations exist relating to AltheaDx Earnout Payments and the contingent consideration period had ended.
−Removed: Contingent consideration liability associated with the AltheaDx Earnout Payments was zero as of the April 26, 2022 date of acquisition and remained unchanged through the ending of the milestone performance period on December 31, 2024.
−Removed: Our calculations of the consideration transferred and the purchase price allocation for the acquisition of AltheaDx were finalized as of December 31, 2022.
−Removed: During the measurement period, we recorded adjustments to accrued liabilities, income taxes, intangible assets, contingent consideration and the resulting goodwill after finalizing our valuation of these items.
−Removed: CASTLE BIOSCIENCES, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: The following table presents the acquisition-date fair value of the consideration transferred, summarizes the final allocation of the fair values of assets acquired and liabilities assumed in the acquisition of AltheaDx, and includes measurement period adjustments recorded during 2022 (in thousands, except for shares):
−Removed: April 26, 2022
−Removed: (as initially reported) Measurement Period Adjustments April 26, 2022
−Removed: (as adjusted)
−Removed: Consideration Transferred
−Removed: Cash $ 30,510 $ ( 8 ) $ 30,502
−Removed: Common stock ( 763,887 shares)
−Removed: 17,111 — 17,111
−Removed: Contingent consideration 1,528 ( 1,528 ) —
−Removed: Total consideration transferred $ 49,149 $ ( 1,536 ) $ 47,613
−Removed: Fair Value Allocation
−Removed: Cash and cash equivalents $ 3,536 $ — $ 3,536
−Removed: Accounts receivable 302 — 302
−Removed: Inventory 279 — 279
−Removed: Prepaid expenses and other current assets 262 — 262
−Removed: Property and equipment 314 — 314
−Removed: Intangible asset 37,000 ( 2,000 ) 35,000
−Removed: Other assets – long-term 12 — 12
−Removed: Accounts payable ( 231 ) — ( 231 )
−Removed: Accrued compensation ( 380 ) — ( 380 )
−Removed: Other accrued and current liabilities ( 532 ) 119 ( 413 )
−Removed: Deferred tax liabilities ( 1,819 ) 147 ( 1,672 )
−Removed: Other liabilities ( 88 ) — ( 88 )
−Removed: Net identifiable assets acquired 38,655 ( 1,734 ) 36,921
−Removed: Goodwill 10,494 198 10,692
−Removed: Total fair value of net assets assumed $ 49,149 $ ( 1,536 ) $ 47,613
−Removed: The fair value of the common stock issued was measured using the April 26, 2022 closing price of $ 22.40 per share, as reported by the Nasdaq Global Market.
−Removed: A portion of the upfront cash and stock consideration was held in escrow following closing to secure indemnification claims, if any, and were released during the year ended December 31, 2023.
−Removed: During the fourth quarter of 2022, we reversed losses originally recorded during the second and third quarters of 2022 that were associated with the remeasurement of contingent consideration before finalizing the valuation.
−Removed: Also during the fourth quarter of 2022, we recorded an immaterial adjustment to reduce the amortization expense associated with the intangible asset.
−Removed: The goodwill, which is not deductible for income tax purposes, was primarily attributable to potential future growth opportunities and the organized workforce.
−Removed: The intangible asset is comprised of developed technology with an estimated useful life of 15 years and is being amortized on a straight-line basis.
−Removed: See Note 8 for additional information on the useful life of IDgenetix developed technology.
−Removed: Unaudited Pro Forma Financial Information
−Removed: The following unaudited pro forma financial information for the year ended December 31, 2022 combines our historical financial results and the results of AltheaDx, assuming that the companies were combined as of January 1, 2022, and includes adjustments for amortization expense from the acquired intangible assets and additional stock-based compensation expense.
−Removed: Non-recurring pro forma adjustments consist of acquisition-related transaction
−Removed: CASTLE BIOSCIENCES, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: costs of $ 1.7 million and an income tax benefit of $ 1.6 million, both assumed to have been recognized during the year ended December 31, 2022 and therefore removed from the year ended December 31, 2022.
−Removed: The following unaudited pro forma financial information (in thousands) is for informational purposes only and is not necessarily indicative of (i) the results of operations that would have been achieved if the acquisition had taken place as of January 1, 2022 or (ii) the results of operations that are expected in future periods:
−Removed: Pro Forma Data
−Removed: Year Ended December 31, 2022
−Removed: Net revenues $ 137,591
−Removed: Net loss $ ( 72,819 )
−Removed: Related Parties
−Removed: Maetzold, our President and Chief Executive Officer (“CEO”), and a member of our board of directors, and Daniel M.
−Removed: Bradbury, the Chairperson of our board of directors, each served on the board of directors of AltheaDx until the acquisition of AltheaDx was completed, were direct or indirect beneficial owners of AltheaDx securities and received consideration in connection with our acquisition of AltheaDx.
−Removed: Further, Frank Stokes, our Chief Financial Officer;
−Removed: Juvenal, our Chief Commercial Officer;
−Removed: Kristen Oelschlager, our Chief Operating Officer and certain immediate family members of Mr.
−Removed: Maetzold and Ms.
−Removed: Oelschlager were direct or indirect beneficial owners of AltheaDx securities and received consideration in the transaction.
−Removed: Our entry into the definitive agreement to acquire AltheaDx was approved by our board of directors based upon the unanimous recommendation of a special transaction committee comprised entirely of independent members of our board of directors without any financial interest in AltheaDx or any conflict of interest with respect to the acquisition of AltheaDx.
−Removed: As of December 31, 2024, the milestone period ended, no future obligations existing relating to AltheaDx Earnout Payments, and contingent consideration liability was zero .
−Removed: The named related parties did not receive additional contingent consideration over the duration of the milestone and contingent consideration period.
−Removed: See Note 12 for additional information on fair value measurement of contingent consideration liability.
Property and Equipment, Net
1 unchanged sentence
As of December 31,
+Added: Land $ 7,245 $ 7,245
Lab equipment 33,034 23,633
4 unchanged sentences
Total 115,740 63,955
−Removed: Less accumulated depreciation ( 12,833 ) ( 8,111 )
+Added: Accumulated depreciation
+Added: ( 18,297 ) ( 12,833 )
Property and equipment, net $ 97,443 $ 51,122
−Removed: (1) On February 9, 2024, we purchased approximately 23 acres of land in Friendswood, Texas for purpose of developing a commercial office building to be used as our future corporate headquarters.
−Removed: CASTLE BIOSCIENCES, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Depreciation expense was recorded in the consolidated statements of operations as follows (in thousands):
4 unchanged sentences
Selling, general and administrative 1,662 1,587 1,229
−Removed: Total $ 4,891 $ 3,317 $ 2,278
+Added: Total depreciation expense
+Added: $ 5,933 $ 4,891 $ 3,317
Goodwill and Other Intangible Assets, Net
−Removed: We had a single reporting unit where all goodwill was allocated for the years ended December 31, 2024, 2023 and 2022.
−Removed: No impairment charges were recorded against goodwill for the years ended December 31, 2024, 2023 and 2022.
−Removed: The balance of our goodwill, net zero accumulated impairments, was $ 10.7 million as of December 31, 2024 and 2023.
−Removed: We had a single reportable segment consisting of a single operating segment where the operating segment and the single reporting unit where the same for the years ended December 31, 2024, 2023, and 2022.
+Added: We had a single reportable segment consisting of a single operating segment where the operating segment and the single reporting unit were the same for the years ended December 31, 2025, 2024 and 2023, where all goodwill was allocated.
+Added: As of December 31, 2025 and 2024, our goodwill balance was $ 10.7 million.
See Note 16 for additional information on our reportable segment.
−Removed: We conducted annual impairment testing of goodwill in the fourth quarter which indicated the fair value of our reporting unit exceeded its carrying value by 117 % and therefore no impairment was indicated.
+Added: We conducted annual impairment testing of goodwill in the fourth quarter which indicated the fair value of our reporting unit exceeded its carrying value by approximately 80 %.
+Added: Therefore, no impairment was indicated for the year ended December 31, 2025.
To measure the fair value of our single reporting unit, we used a market approach whereby we calculated our total market capitalization on the impairment test date, based on the closing price of our common stock as reported on the Nasdaq Global Market, and applied a reasonable control premium.
The control premium was based on an analysis of control premiums paid in recent acquisitions of companies in the same or similar industry as us.
+Added: No impairment charges were recorded against goodwill for the years ended December 31, 2025, 2024 and 2023.
+Added: CASTLE BIOSCIENCES, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Other Intangible Assets, Net
−Removed: Our other intangible assets, net consist of the following (in thousands):
+Added: Our other intangible assets, net consisted of the following (in thousands):
As of December 31, 2025
8 unchanged sentences
Total other intangible assets, net $ 125,880 $ ( 30,343 ) $ 95,537
−Removed: CASTLE BIOSCIENCES, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The estimated future aggregate amortization expense as of December 31, 2025 was as follows (in thousands):
Years Ending December 31,
−Removed: 2025 $ 33,358
Thereafter 44,174
Total $ 88,882
−Removed: On December 1, 2024, we revised the estimated remaining useful life of our IDgenetix developed technology intangible asset from approximately 12 years to 13 months, where the useful life is expected to end on December 31, 2025.
−Removed: The change in estimate resulted in our recognition of an additional $ 2.1 million in expense from amortization of acquired intangible assets, reducing net income by the same amount, for the fourth quarter and year ended December 31, 2024.
−Removed: The change in estimate is expected to increase expense from amortization of acquired intangible assets by approximately $ 24.3 million for the year ended December 31, 2025.
+Added: On December 1, 2024, we revised the estimated remaining useful life of our IDgenetix developed technology intangible asset, which resulted in our recognition of an additional $ 2.1 million in expense from amortization of acquired intangible assets, reducing net income by the same amount for the year ended December 31, 2024.
+Added: During the first quarter of 2025, we decided to discontinue our IDgenetix test offering, effective May 2025.
+Added: As a result, we revised the estimated useful life of the related intangible asset and fully amortized the asset as of March 31, 2025, resulting in an acceleration of amortization expense of approximately $ 20.1 million.
+Added: In May 2025, in connection with the acquisition of Previse, and in accordance with ASC 805, we determined that substantially all of the fair value of the gross assets acquired was concentrated in a single identifiable asset;
+Added: accordingly, the transaction was accounted for as an asset acquisition.
+Added: The acquired intangible asset consists of developed technology with a fair value of $ 28.2 million, an estimated useful life of 12 years, and is amortized on a straight-line basis.
Amortization expense of intangible assets was $ 34.8 million, $ 11.1 million and $ 9.0 million for the years ended December 31, 2025, 2024 and 2023, respectively.
+Added: CASTLE BIOSCIENCES, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Other Accrued and Current Liabilities
1 unchanged sentence
As of December 31,
−Removed: Clinical studies $ 2,580 $ 3,475
Accrued service fees $ 3,213 $ 2,338
+Added: Clinical studies 2,674 2,580
ESPP Contributions
−Removed: Accrued taxes 1,076 401
Other 2,126 1,850
1 unchanged sentence
Long-Term Debt
−Removed: We had no debt as of December 31, 2023.
−Removed: Our long-term debt as of December 31, 2024 is presented in the table below (in thousands):
+Added: Our long-term debt consisted of the following (in thousands):
As of December 31,
4 unchanged sentences
Total long-term debt $ 9,640 $ 9,745
−Removed: CASTLE BIOSCIENCES, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Future maturities of principal amounts on long-term debt as of December 31, 2025 were as follows (in thousands):
2 unchanged sentences
2024 Loan and Security Agreement
−Removed: On March 26, 2024 (the ‘‘Closing Date’’), we entered into a Loan and Security Agreement (the ‘‘2024 LSA”), by and between us, our wholly owned subsidiary, Castle Narnia Real Estate Holding 1, LLC and Silicon Valley Bank, a division of First-Citizens Bank & Trust Company (the “Lender’’).
−Removed: The 2024 LSA provides for (i) on the Closing Date, $ 10.0 million aggregate principal amount of Term Loans (the “2024 Term Loan,” as more fully discussed in the ‘‘2024 Term Loan’’ section below), and (ii) from the Closing Date until March 31, 2025, an additional line of credit of $ 25.0 million with the same interest rate and maturity as the term debt available (the “2024 Credit Line,” as more fully discussed in the ‘‘2024 Credit Line’’ section below) at our option.
−Removed: The obligations under the 2024 LSA are secured by substantially all of our assets, excluding intellectual property, the real property held by us, and are subject to certain other exceptions and limitations.
−Removed: We have the right to prepay the 2024 LSA in whole, subject to a prepayment fee of approximately 1.50 % if prepaid prior to March 26, 2026.
−Removed: Amounts repaid under the 2024 LSA may not be reborrowed.
−Removed: In addition, the 2024 LSA contains customary conditions of borrowing, events of default and covenants, including covenants that restrict our ability to dispose of assets, merge with or acquire other entities, incur indebtedness and make distributions to holders of our capital stock.
+Added: On March 26, 2024 (the “Closing Date”), we entered into a Loan and Security Agreement, as amended in April 2025 (the “2024 LSA”), by and between us, our wholly owned subsidiary, Castle Narnia Real Estate Holding 1, LLC and Silicon Valley Bank, a division of First-Citizens Bank & Trust Company (the “Lender”).
+Added: The 2024 LSA provides for a term loan in the principal amount of $ 10.0 million, which was drawn on the Closing Date (the “2024 Term Loan”) and provided for a $ 25.0 million line of credit that was available at our option from the Closing Date through September 30, 2025, with the same interest rate and maturity as the 2024 Term Loan (the “2024 Credit Line”).
+Added: The Consent and First Amendment executed on April 4, 2025, modified certain terms of the 2024 LSA, including the extension of the draw period for the 2024 Credit Line from March 31, 2025 to September 30, 2025, which expired on September 30, 2025, the 2024 Credit Line expired as discussed below.
+Added: The obligations under the 2024 LSA are secured by substantially all of our assets, excluding intellectual property, the real property held by the Company, and are subject to certain other exceptions and limitations.
+Added: We have the right to prepay the 2024 LSA in whole, subject to a prepayment fee of approximately 1.50 % if paid prior to March 26, 2026.
+Added: Amounts repaid may not be reborrowed.
+Added: CASTLE BIOSCIENCES, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Added: The 2024 LSA contains customary conditions of borrowing, events of default and covenants, including covenants that restrict our ability to dispose of assets, merge with or acquire other entities, incur indebtedness and make distributions to holders of our capital stock.
Should an event of default occur, including the occurrence of a material adverse change, we could be liable for immediate repayment of all obligations under the 2024 LSA.
−Removed: Should we seek to amend the terms of the 2024 LSA, the consent of the Lender would be required.
+Added: Should we seek to further amend the terms of the 2024 LSA, the consent of the Lender would be required.
As of December 31, 2025, we were in compliance with all of the covenants.
The 2024 LSA bears interest at a floating rate equal to the greater of (a) the WSJ Prime Rate plus 0.25 % or (b) 6.00 % per annum.
−Removed: The Term Loans are interest only from the Closing Date through November 30, 2025, which may be extended at our option through November 30, 2026 as long as no event of default under the 2024 LSA has occurred.
−Removed: After the end of the interest only period, we are required to pay equal monthly installments of principal through the maturity date of November 1, 2028.
−Removed: We are also obligated to make an additional final payment of 2.00 % of the aggregate original principal amounts of Term Loans advanced by the Lender, due at the earlier of the maturity date or date the Term Loans are repaid in full.
+Added: The 2024 Term Loan was interest-only from the Closing Date through November 30, 2025, subject to extension under the Interest-Only Extension Milestone provision (as defined in the 2024 LSA).
+Added: On August 26, 2025, we elected to extend the interest-only period to December 1, 2026.
+Added: Beginning in December 2026, the principal payments will be made in equal monthly installments through the maturity date of November 1, 2028.
+Added: In addition, we are required to make a final payment equal to 2.00 % of the aggregate original principal amounts of the 2024 Term Loan, due at maturity or upon full repayment.
2024 Term Loan
−Removed: On the Closing Date, we drew $ 10.0 million in Term Loans under the terms and provisions of the 2024 LSA.
+Added: On the Closing Date, we drew $ 10.0 million under the 2024 Term Loan.
We are obligated to make a final payment of $ 0.2 million under the terms of the 2024 LSA final payment provisions.
A discount on debt equal to this obligation was recorded on the draw date and is being amortized as additional interest expense using the effective interest method over the term of the debt.
−Removed: As of December 31, 2024, no payment on principal has been made.
−Removed: As of December 31, 2024, the weighted average effective interest rate for all outstanding debt under the 2024 Term Loan was 8.19 %.
+Added: As of December 31, 2025, no principal payments have been made and the weighted-average effective interest rate for all outstanding debt under the 2024 Term Loan was 7.69 %.
2024 Credit Line
−Removed: We have a $ 25.0 million line of credit under the terms and provisions of the 2024 LSA available from the Closing Date until March 31, 2025.
−Removed: Amounts repaid under the 2024 Credit Line may not be reborrowed.
−Removed: As of December 31, 2024, no draws had been made on the 2024 Credit Line.
+Added: We had a $ 25.0 million line of credit under the 2024 Line of Credit, from the Closing Date through September 30, 2025.
+Added: The 2024 Credit Line expired on September 30, 2025 and no amounts were drawn during the term.
Interest Expense on Long-Term Debt
−Removed: We recognized $ 0.5 million of interest expense for year ended December 31, 2024, the components of which included $ 0.7 million interest expense on long term debt less $ 0.2 million capitalized interest.
−Removed: There was no interest expense on long term debt or capitalized interest for the years ended December 31, 2023 and 2022.
−Removed: CASTLE BIOSCIENCES, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Added: Interest expense on long-term debt consisted of the following (in thousands):
+Added: Years Ended December 31,
+Added: Interest expense on long-term debt $ 807 $ 685
+Added: Capitalized interest ( 758 ) ( 180 )
+Added: Total $ 49 $ 505
+Added: There was no interest expense on long-term debt or capitalized interest for the year ended December 31, 2023.
Operating Leases
−Removed: We lease office space in Friendswood, Texas (the “Friendswood Lease”) for use as our corporate headquarters.
−Removed: The Friendswood Lease commenced in late 2020 under a 60-month term and a renewal option for one additional five-year term.
−Removed: We lease two facilities in Phoenix, Arizona for laboratory and office space.
−Removed: For both leases, the current terms end in 2033 with options to renew for two additional five-year terms.
+Added: We lease office space in Friendswood, Texas (the “Friendswood Lease”) which previously served as our corporate headquarters before moving in January 2026.
+Added: The Friendswood Lease commenced in late 2020 under a 60-month term and, under a subsequent amendment, now expires in March 2026.
+Added: We lease two facilities in Phoenix, Arizona for laboratory and office space under two agreements with terms expiring in July 2033 and February 2034, respectively.
+Added: Each contract provides two five-year renewal options.
We lease general office and laboratory facilities in Pittsburgh Pennsylvania (the “Pittsburgh Lease”).
−Removed: The Pittsburgh Lease commenced in late 2022 under a term of 10.5 years, and with a five-year renewal option and an early termination clause.
−Removed: On August 1, 2024, we amended our Pittsburgh Lease to take early possession of additional square footage under an expansion provision in the original contract at an earlier date than provided for under the original agreement.
−Removed: The expansion option provided us with 23,821 additional square feet, most of which will be dedicated laboratory space, in exchange for an incremental increase in our fixed monthly payments.
−Removed: The amendment did not change the end date under the original lease term, or provide any additional options not already provided for under the original agreement.
−Removed: We evaluated the amendment under ASC Topic 842, Leases, and determined that it constituted a modification to an existing contract and assessed the classification remained an operating lease.
−Removed: Following the modification, our obligations for the remaining lease term increased and we used $ 1.3 million of lease incentives for leasehold improvements.
−Removed: As of December 31, 2024, we had no remaining credits for leasehold improvements under this contract.
−Removed: In our remeasurement, we recognized an additional $ 0.6 million in operating lease assets in exchange for an equal amount of additional lease liabilities.
+Added: The Pittsburgh Lease commenced in April 2023 under a term of 10.5 years, and with a five-year renewal option and an early termination clause.
+Added: The lease was originally executed in April 2022.
+Added: CASTLE BIOSCIENCES, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Added: We lease general office and laboratory facilities in Scottsdale, Arizona (the “Scottsdale Lease”).
+Added: On May 14, 2025, we entered into a lease agreement (the “Scottsdale Commencement Date”) with Perimeter Gateway Portfolio, LLC (the “Lessor”) for approximately 55,573 square feet.
+Added: The Scottsdale Lease has a term of 143 months that will expire in April 2037, and provides a right of refusal to lease any additional adjacent space that may become available.
+Added: The Scottsdale Lease includes two optional five-year term extensions, and a one -time option to terminate the lease on the last day of the 96 th month following the Scottsdale Commencement Date, subject to certain conditions, in exchange for early termination fee.
+Added: The fee would equal the unamortized balance of commissions paid to the Lessor’s broker and our broker, plus the amortized balance of hard and soft costs incurred by the Lessor in connection with the tenant improvement allowance.
+Added: The Scottsdale Lease also provides for $ 7.2 million in lease incentives in form of Lessor-paid improvements.
+Added: Rent for the first twelve months is abated, totaling $ 1.8 million, with any unamortized amounts becoming payable in the event of a default under the lease.
We have not included the optional renewal periods in the measurement of the lease obligations because it is not reasonably certain that we will exercise these renewal options.
1 unchanged sentence
Finance Lease
−Removed: We lease office printers and other office equipment (the “Finance Leases”) for use across our facilities.
−Removed: The Finance Leases commenced in June 2024 under a 64-month term, with an automatic one year extension that becomes effective unless we provide advanced notice of our intent not to extend the term, and a cash lease incentive of $ 0.2 million.
−Removed: We currently do not expect to extend the term after the original term ends.
+Added: We lease office printers and other office equipment (the “Finance Leases”) for use across our facilities, which expire in 2029.
+Added: Certain of our Finance Leases contain automatic one year extensions that become effective unless we provide advanced notice of our intent not to extend the term.
+Added: In 2025, we received a cash lease incentive of $ 0.2 million for certain Finance Leases.
+Added: There were no cash lease incentives received in 2024 or 2023.
Discount Rates
−Removed: We discount our lease obligations using our incremental borrowing rate at the commencement date of the lease or as of the effective date of a lease modification.
−Removed: The incremental borrowing rate is the rate of interest we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.
−Removed: As of March 26, 2024, we had outstanding borrowings under the 2024 LSA and referred to the interest rate of such debt for use as our incremental borrowing rate.
−Removed: Prior to having outstanding borrowing under the 2024 LSA, we primarily considered industry data, our credit rating and the lease term to determine our incremental borrowing rate.
−Removed: CASTLE BIOSCIENCES, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Added: We discount our lease obligations using our incremental borrowing rate as of the lease commencement date or, for lease modifications, as of the effective date of the modification.
+Added: The incremental borrowing rate represents the rate of interest we would expect to pay to borrow on a collateralized basis over a similar term in an amount equal to the lease payments in a similar economic environment.
+Added: Beginning March 26, 2024, we had outstanding borrowings under the 2024 LSA and used the interest rate on those borrowings to determine our incremental borrowing rate for lease measurement.
+Added: We then adjust our incremental borrowing rate for the economic environment, collateral and other information available at the lease commencement date to develop a discount rate appropriate for each lease.
+Added: Prior to having outstanding borrowings under the 2024 LSA, we primarily considered industry data, our credit rating and the lease term to determine our incremental borrowing rate.
Lease Balances and Costs
−Removed: Lease balances reflected in the consolidated balance sheet were as follows (in thousands):
+Added: Lease balances reflected in the consolidated balance sheets were as follows (in thousands):
As of December 31,
7 unchanged sentences
Finance Noncurrent finance lease liabilities $ 314 $ 311
−Removed: Lease costs included in the consolidated statement of operations were as follows (in thousands):
+Added: CASTLE BIOSCIENCES, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Added: Lease costs included in the consolidated statements of operations were as follows (in thousands):
Years Ended December 31,
−Removed: Lease Cost 2024 2023 2022
+Added: 2025 2024 2023
Operating lease cost (1)
14 unchanged sentences
Financing cash flows from finance leases $ 115 $ 97 $ 142
−Removed: CASTLE BIOSCIENCES, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: Information regarding the weighted-average lease term and weighted-average discount rate is presented below:
+Added: The weighted-average remaining lease term and weighted-average discount rates used were as follows:
As of December 31,
5 unchanged sentences
Finance leases 8.2 % 8.4 %
+Added: CASTLE BIOSCIENCES, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Future maturities for operating lease and finance lease liabilities as of December 31, 2025 were as follows (in thousands):
5 unchanged sentences
2029 4,396 97
−Removed: 2029 2,544 73
Thereafter 20,104 —
12 unchanged sentences
Our assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability.
−Removed: The use of different assumptions and/or estimation methodologies may have a material effect on estimated fair values.
+Added: For equity securities traded on foreign exchanges, fair values are determined based on quoted market prices in the applicable foreign markets and are remeasured into U.S.
+Added: dollars using exchange rates in effect at each balance sheet date in accordance with ASC 830.
+Added: The use of different assumptions, exchange rates and/or estimation methodologies may have a material effect on estimated fair values.
Accordingly, the fair value estimates disclosed, or amounts recorded may not be indicative of the amount that we or holders of the instruments could realize in a current market exchange.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: The table below provides information by level within the fair value hierarchy, of our financial assets and liabilities that are accounted for at fair value on a recurring basis as of December 31, 2024 and 2023 (in thousands):
+Added: The tables below provide information by level within the fair value hierarchy, of our financial assets and liabilities that are accounted for at fair value on a recurring basis (in thousands):
As of December 31, 2025
4 unchanged sentences
$ 108,914 $ — $ — $ 108,914
−Removed: government securities (2)
+Added: government securities - AFS (2)
$ 171,631 $ — $ — $ 171,631
−Removed: Trading securities (2)
+Added: Equity securities (2)
$ 5,555 $ — $ — $ 5,555
7 unchanged sentences
$ 114,091 $ — $ — $ 114,091
−Removed: government securities (2)
+Added: government securities - AFS (2)
$ 169,866 $ — $ — $ 169,866
+Added: Equity securities (2)
+Added: $ 3,555 $ — $ — $ 3,555
+Added: Term Debt (3)(4)
+Added: $ — $ 10,023 $ — $ 10,023
(1) Classified as “Cash and cash equivalents” in the consolidated balance sheets.
1 unchanged sentence
(3) Classified as “Current portion of long-term debt” and “Long-term debt” in the consolidated balance sheets.
−Removed: Contingent Consideration
−Removed: In connection with our acquisition of Cernostics in December 2021, we recorded a liability for contingent consideration that was payable based on the achievement of certain commercial milestones relating to the year ending December 31, 2022 (“Cernostics Earnout Payments”).
−Removed: There were no Cernostics Earnout Payments that became payable because the commercial milestones were not achieved during the earnout period and the final valuation of the contingent consideration was assessed to be zero as of December 31, 2022, resulting in a loss of $ 18.3 million associated with the change in fair value of the contingent consideration.
−Removed: In connection with our acquisition of AltheaDx, we agreed to pay contingent consideration of up to $ 75.0 million relating to the AltheaDx Earnout Payments, as discussed further in Note 6.
−Removed: The portions of the AltheaDx Earnout Payments associated with the commercial milestones for the years ended December 31, 2024, 2023 and 2022 were $ 20.0 million, $ 37.5 million (contained a 2022 catch-up provision for additional payment up to $ 17.5 million) and $ 35.0 million, respectively, and were not paid at each of these milestone events due to the applicable commercial milestones not being met.
−Removed: The contingent consideration was classified as a Level 3 fair value measurement due to the use of significant unobservable inputs and a Monte Carlo simulation to determine its fair value.
−Removed: The Monte Carlo simulation uses projections of the commercial milestones for the applicable period as well as the corresponding targets and approximate timing of payment based on the terms of the arrangement.
−Removed: The final valuation for the contingent consideration as of the date of acquisition was assessed to be zero and resulted in a measurement period adjustment.
−Removed: See Note 6 for additional information on the measurement period adjustment.
−Removed: There were no AltheaDx Earnout Payments that became payable because the commercial milestones were not achieved during the earnout periods and the final valuation of the contingent consideration was assessed to be zero as of December 31, 2024.
+Added: (4) Borrowings approximate their fair value as the interest rate is variable and reflects market rates.
+Added: government securities that are HTM investments and are carried at amortized costs.
+Added: The fair value of our HTM investments is classified as Level 1 of the fair value hierarchy.
+Added: For additional information on the carrying amount and fair value of our HTM investments, see Note 5.
+Added: The Convertible Loan Receivable with SciBase is carried at amortized cost which approximates fair value due to the variable interest rate and market-based terms of the instrument.
+Added: Fair value is estimated using a discounted cash flow model.
+Added: The inputs used to fair value the Convertible Loan Receivable are classified as Level 2 in the fair value hierarchy and include three-month STIBOR and a market credit spread.
+Added: For additional information on the carrying amount and estimated fair value of our Convertible Loan Receivable, see Note 2.
CASTLE BIOSCIENCES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: No gains or losses were recorded associated with changes in fair value during the years ended December 31, 2024, 2023, and 2022.
−Removed: The contingent consideration liability was remeasured at fair value at each reporting period taking into account any updated assumptions or changes in circumstances.
−Removed: Any changes in the fair value were recorded as gains or losses in the consolidated statement of operations.
−Removed: A measurement period adjustment was recognized in the fourth quarter of 2022 to reverse the preliminary valuation of the contingent consideration and losses recorded during the interim period.
Commitments and Contingencies
From time to time, we may be involved in legal proceedings arising in the ordinary course of business.
−Removed: We believe there is no threatened litigation or litigation pending that could have, individually or in the aggregate, a material adverse effect on our financial position, results of operations or cash flows.
On February 1, 2024, we received a subpoena from the Department of Health and Human Services, Office of Inspector General, seeking documents and information concerning claims submitted for payment under federal healthcare programs.
7 unchanged sentences
We are unable to predict the outcome and are unable to make a meaningful estimate of the amount or range of loss, if any, that could result from any unfavorable outcome.
+Added: In November 2025, we entered into a subscription agreement in connection with SciBase’s proposed rights offering.
+Added: Under the agreement, we are committed to subscribe for its pro rata share of shares issuable under the rights offering and, if requested by SciBase, to subscribe for up to an additional 115.0 million shares.
+Added: The subscription commitment is subject to an ownership limitation such that our ownership interest in SciBase may not reach or exceed 20 % of the outstanding shares following the offering.
+Added: The rights offering was completed in January 2026, see Note 17.
Stockholders’ Equity
Capital Stock
−Removed: The Company’s Amended and Restated Certificate of Incorporation, dated July 29, 2019, authorizes the Company to issue up to 200,000,000 shares of common stock with a par value of $ 0.001 per share.
−Removed: The Company is also authorized to issue up to 10,000,000 shares of preferred stock with a par value of $ 0.001 per share.
+Added: Our Amended and Restated Certificate of Incorporation, dated July 29, 2019, authorizes us to issue up to 200,000,000 shares of common stock with a par value of $ 0.001 per share.
+Added: We are also authorized to issue up to 10,000,000 shares of preferred stock with a par value of $ 0.001 per share.
No dividends were declared or paid during the years ended December 31, 2025 or 2024.
12 unchanged sentences
The Inducement Plan provides for the granting of awards as inducement material to the grantee’s entering into employment with us to the extent such grantee was not previously an employee of ours or is entering into employment following a bona fide period of non-employment with us.
−Removed: Our Inducement Plan provides for the grant of RSU awards and other stock awards made as an inducement material to the grantee’s entering into employment with us to the extent such grantee was not previously an employee of ours or is entering into employment following
+Added: On August 5, 2025, our compensation committee amended the Inducement Plan to increase the number of shares issuable under the Inducement Plan by 700,000 shares.
+Added: As of December 31, 2025, there were 718,454 shares available for grant under the amended Inducement Plan.
CASTLE BIOSCIENCES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: a bona fide period of non-employment with us.
−Removed: As of December 31, 2024, there were 191,156 shares available for grant under the Inducement Plan.
Options Granted Under our Plans
8 unchanged sentences
Stock Options
−Removed: Stock option activity under our stock plans for the years ended December 31, 2024, 2023, and 2022 is set forth below:
+Added: The following table summarizes our stock option activity:
Weighted-Average
17 unchanged sentences
Balance as of December 31, 2025 2,784,432 $ 36.53 4.6 $ 24,372
−Removed: Exercisable at December 31, 2024 2,819,446 $ 35.88 5.5 $ 11,684
+Added: Exercisable as of December 31, 2025 2,779,739 $ 36.55 4.6 $ 24,306
Restricted Stock Units
4 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: The following table summarizes our RSU activity for the years ended December 31, 2024, 2023, and 2022:
+Added: The following table summarizes our RSU activity:
Restricted Stock Units Outstanding Weighted-Average Grant Date Fair Value
16 unchanged sentences
We issue new shares of common stock upon the vesting of PSUs.
−Removed: On August 9, 2024 (the “Initial Vesting Date”), the Board certified that the revenue goal for the PSUs granted on December 23, 2022 (“2022 PSUs”) was achieved.
+Added: On August 9, 2024 (the “Initial Vesting Date”), the board of directors certified that the revenue goal for the PSUs granted on December 23, 2022 (“2022 PSUs”) was achieved.
Therefore, 50 % of the 2022 PSUs were vested and we immediately recognized approximately $ 0.1 million of stock-based compensation related to this performance metric.
−Removed: The remaining 50 % of the 2022 PSUs are all subject to time-based vesting and will vest in full on the one-year anniversary of the Initial Vesting Date.
+Added: The remaining 50 % of the 2022 PSUs were subject to time-based vesting and vested in full on August 9, 2025.
CASTLE BIOSCIENCES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: The following table summarizes our PSU activity for the year ended December 31, 2024:
+Added: The following table summarizes our PSU activity:
Performance-Based Restricted Stock Units Outstanding Weighted-Average Grant Date Fair Value
4 unchanged sentences
Granted 177,513 $ 21.23
+Added: ( 98,018 ) $ 23.23
Forfeited/Cancelled — $ —
4 unchanged sentences
Balance as of December 31, 2025 350,144 $ 21.72
−Removed: (1) The aggregate number of shares withheld upon vesting for employee tax obligations was 30,046 for the year ended December 31, 2024 .
−Removed: Retirement Policy
−Removed: In January 2023, our board of directors approved a retirement policy (the “Retirement Policy”) that provides for acceleration of a portion of unvested awards granted to and held by certain eligible employees upon meeting age, service and notice requirements.
−Removed: No shares vested under this policy during the years ended December 31, 2024 and 2023.
+Added: (1) The aggregate number of shares withheld upon vesting for employee tax obligations was 35,426 and 30,046 for the years ended December 31, 2025 and 2024, respectively .
Employee Stock Purchase Plan
10 unchanged sentences
We issue new shares to satisfy the ESPP purchases.
−Removed: CASTLE BIOSCIENCES, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Determining Fair Value - Summary of Assumptions
We use the closing price of our common stock on the date of grant to determine the fair value of RSUs and PSUs.
−Removed: We use the Black-Scholes option pricing model to estimate the fair value of stock options and purchase rights granted under the ESPP at the date of grant, start of the offering or other relevant measurement date.
−Removed: Set forth below is a description of the significant assumptions used in the option pricing model:
+Added: We use the Black-Scholes option-pricing model to estimate the fair value of stock options and purchase rights issued under the ESPP at the date of grant, start of the offering or other relevant measurement date.
+Added: Set forth below is a description of the significant assumptions used:
• Expected term .
2 unchanged sentences
For the ESPP, the expected term is the period of time from the offering date to the purchase date.
+Added: CASTLE BIOSCIENCES, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
• Expected volatility .
−Removed: Previously, because of the limited period of time our stock had been traded in an active market, we calculated expected volatility by using the historical stock prices of a group of similar companies looking back over the estimated life of the option or the ESPP purchase right and averaging the volatilities of these companies.
−Removed: In the third quarter of 2021, we adjusted this calculation to include our own stock price on a relative basis to the peer group in the calculation of expected volatility, as our common stock had been traded in an active market for more than two years.
+Added: For our ESPP, we estimate expected volatility based on the historical volatility of our common stock.
+Added: For stock options, we previously estimated expected volatility using the historical stock prices of a group of comparable companies, together with our own stock price on a relative basis, due to the limited period during which our common stock had been actively traded.
+Added: Beginning in the third quarter of 2025, our common stock established a sufficient trading history and, therefore, we use solely the historical volatility of our own stock in determining expected volatility.
• Risk-free interest rate .
8 unchanged sentences
Years Ended December 31,
−Removed: 2024 2023 2022
−Removed: Average expected term (years) 5.0
−Removed: Expected stock price volatility 80.20 % - 80.20 %
+Added: Average expected term (years) N/A
+Added: Expected stock price volatility N/A
80.20 % - 80.20 %
75.57 % - 76.01 %
−Removed: Risk-free interest rate 4.39 % - 4.39 %
+Added: Risk-free interest rate N/A
4.39 % - 4.39 %
3.57 % - 3.57 %
−Removed: Dividend yield — %
+Added: Dividend yield N/A
+Added: (1) For the year ended December 31, 2025, no stock options were granted.
The following table sets forth assumptions used to determine the fair value of the purchase rights issued under the ESPP:
10 unchanged sentences
Dividend yield — %
−Removed: CASTLE BIOSCIENCES, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Fair Value and Intrinsic Value
−Removed: For the years ended December 31, 2024, 2023, and 2022 the weighted-average grant date fair value of stock options was $ 9.23 , $ 15.99 , and $ 14.34 per option, respectively, and the weighted-average grant date fair value of the purchase rights granted under the ESPP was $ 12.66 , $ 11.43 , and $ 16.79 per share, respectively.
+Added: For the year ended December 31, 2025, no stock options were granted.
+Added: For the years ended December 31, 2024 and 2023 the weighted-average grant date fair value of stock options was $ 9.23 and $ 15.99 per option, respectively.
+Added: For the years ended December 31, 2025, 2024 and 2023 the weighted-average grant date fair value of the purchase rights issued under the ESPP was $ 9.71 , $ 12.66 and $ 11.43 per share, respectively.
The aggregate intrinsic value of stock options exercised during the years ended December 31, 2025, 2024 and 2023 was $ 1.2 million, $ 1.7 million and $ 1.3 million, respectively.
1 unchanged sentence
The aggregate fair value of RSUs that vested during the years ended December 31, 2025, 2024 and 2023 was $ 36.1 million, $ 27.7 million and $ 18.1 million, respectively.
+Added: CASTLE BIOSCIENCES, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Stock-Based Compensation Expense
6 unchanged sentences
Total stock-based compensation expense $ 45,893 $ 50,320 $ 51,219
+Added: Included in total stock-based compensation expense for the years ended December 31, 2025, 2024 and 2023 is $ 0.7 million, $ 0.7 million and $ 1.6 million, respectively, from the accelerated recognition of expense for modifications of awards falling in scope of the Retirement Policy.
+Added: No tax benefits related to stock-based compensation expense were recorded in the consolidated statements of operations during the years ended December 31, 2025, 2024 and 2023 due to the valuation allowance on net deferred tax assets.
As of December 31, 2025, the total unrecognized stock-based compensation cost related to outstanding awards was $ 64.7 million, which is expected to be recognized over a weighted-average period of 2.4 years.
The total unrecognized compensation cost will be adjusted for forfeitures in future periods as they occur.
−Removed: Included in total stock-based compensation expense for the years ended December 31, 2024 and 2023 is $ 0.7 million and $ 1.6 million, respectively, from the accelerated recognition of expense for modifications of awards falling in scope of the Retirement Policy.
−Removed: The Retirement Policy was adopted in January 2023, so there was no accelerated recognition of stock-based compensation expense for the year ended December 31, 2022.
−Removed: No tax benefits related to stock-based compensation expense were recorded in the consolidated statements of operations during the years ended December 31, 2024, 2023, and 2022 due to the valuation allowance on net deferred tax assets.
−Removed: The components of income tax expense (benefit) are as follows (in thousands):
+Added: The components of income tax (benefit) expense are as follows (in thousands):
Years Ended December 31,
8 unchanged sentences
Total deferred ( 6,228 ) 1,401 ( 223 )
−Removed: Total income tax expense (benefit) $ 3,319 $ 101 $ ( 1,766 )
+Added: Total income tax (benefit) expense
+Added: $ ( 5,356 ) $ 3,319 $ 101
CASTLE BIOSCIENCES, INC.
1 unchanged sentence
The differences between income taxes expected at the U.S.
−Removed: federal statutory rate (21%) and the reported income tax expense (benefit) are summarized as follows (in thousands):
−Removed: Years Ended December 31,
+Added: federal statutory rate (21%) and the reported income tax benefit, following the adoption of ASU 2023-09, are summarized as follows (in thousands):
+Added: December 31, 2025
+Added: federal statutory income tax rate ( 6,199 ) 21.0 %
+Added: State and local income taxes, net of federal effect 742 ( 2.5 ) %
+Added: R&D tax credit ( 2,078 ) 7.0 %
+Added: Non-taxable and non-deductible items:
+Added: Non-deductible meals and entertainment 2,032 ( 6.9 ) %
+Added: Stock-based compensation 2,374 ( 8.0 ) %
+Added: Other 119 ( 0.4 ) %
+Added: Change in valuation allowance ( 2,401 ) 8.1 %
+Added: Other 55 ( 0.2 ) %
+Added: Income tax benefit
$ ( 5,356 ) 18.1 %
+Added: The differences between income taxes expected at the U.S.
+Added: federal statutory rate (21%) and the reported income tax expense, prior to the adoption of ASU 2023-09, are summarized as follows (in thousands):
+Added: Years Ended December 31,
Pre-tax income (loss) $ 21,564 $ ( 57,365 )
5 unchanged sentences
Non-deductible officers’ compensation 2,651 2,377
−Removed: Change in fair value of contingent consideration — — ( 3,840 )
−Removed: Transaction costs — — 359
Permanent differences 1,712 1,474
−Removed: Other 67 27 26
−Removed: Income tax expense (benefit) $ 3,319 $ 101 $ ( 1,766 )
+Added: Income tax expense
+Added: $ 3,319 $ 101
+Added: CASTLE BIOSCIENCES, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Added: Income taxes paid (net of refunds) that exceed 5% of total income taxes paid (net of refunds) by jurisdictions following the adoption of ASU 2023-09, are as follows (in thousands):
+Added: December 31, 2025
+Added: federal $ 1,172
+Added: State and local
+Added: Virginia ( 138 )
+Added: Total income taxes paid, net of refunds received $ 1,601
Significant components of deferred tax assets and liabilities are as follows (in thousands):
18 unchanged sentences
Net deferred tax liability $ ( 2,335 ) $ ( 1,607 )
+Added: On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law.
+Added: The OBBBA includes a broad range of tax reform provisions affecting businesses, including reinstatement of permanent expensing of domestic research and development costs, higher EBITDA cap on the deduction for interest expense and 100% bonus depreciation.
+Added: We will benefit from the reinstatement of permanent expensing of domestic research and development costs and 100% bonus depreciation.
As of December 31, 2025, we had federal NOL carryforwards of approximately $ 134.8 million of which $ 52.9 million will begin to expire in 2032 if not utilized to offset taxable income, and $ 81.9 million may be carried forward indefinitely.
1 unchanged sentence
As of December 31, 2025, we had state NOL carryforwards of approximately $ 113.0 million, which begin to expire in 2030 if not utilized to offset state taxable income.
−Removed: As of December 31, 2024,
+Added: As of December 31, 2025, we had $ 13.0 million of R&D tax credit carryforwards, including $ 1.4 million of state credits.
+Added: These credits begin to expire in 2037 if not utilized to offset federal income tax liabilities.
CASTLE BIOSCIENCES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: we had R&D tax credit carryforwards of $ 9.7 million, which includes $ 0.9 million of state credits, which will begin to expire in 2034 if not utilized to offset federal income tax.
In general, under Section 382 and 383 of the IRC, a corporation that undergoes an “ownership change” is subject to limitations on its ability to utilize its pre-change NOLs and certain tax credits, to offset future taxable income and tax.
3 unchanged sentences
However, future changes in ownership may further limit our ability to utilize our NOL carryforwards and R&D tax credit carryforwards.
−Removed: We have also performed Section 382 analyses with respect to the NOLs we obtained in our acquisitions of Cernostics and AltheaDx.
−Removed: Based on changes in ownership that have occurred, $ 36.3 million of NOLs are expected to expire unused as a result of Section 382 limitations.
+Added: We have also performed Section 382 analyses with respect to the NOLs we obtained in our acquisitions of Cernostics, AltheaDx and Previse.
+Added: Based on changes in ownership that have occurred, $ 36.3 million of NOLs relating to Cernostics and AltheaDx and zero relating to Previse are expected to expire unused as a result of Section 382 limitations.
+Added: With respect to Previse, we acquired $ 2.3 million of NOLs that can be carried forward indefinitely to offset future taxable income.
As of December 31, 2025 and 2024, we placed a valuation allowance of $ 48.7 million and $ 50.5 million, respectively, against our net deferred tax asset balance, as we have determined that it is more likely than not that they will not be realized.
The valuation allowance as of December 31, 2025 and 2024 was primarily related to NOL and R&D tax credit carryforwards that more likely than not, will expire unused.
−Removed: The net change in total valuation allowance for each of the years ended December 31, 2024, 2023 and 2022 was a decrease of $ 4.5 million, an increase of $ 5.1 million, and an increase of $ 32.2 million, respectively.
−Removed: During the year ended December 31, 2022, in connection with the acquisition of AltheaDx, we recorded additional net deferred tax liability of $ 1.7 million, primarily due to book-tax differences related to the acquired intangible assets.
−Removed: As a result of these additional deferred tax liabilities, we determined that $ 1.6 million of our valuation allowance should be reduced, which was reflected in our income tax benefit for the year ended December 31, 2022.
+Added: The net change in total valuation allowance for each of the years ended December 31, 2025, 2024 and 2023 was a decrease of $ 1.9 million, a decrease of $ 4.5 million, and an increase of $ 5.1 million, respectively.
We assessed whether we had any significant uncertain tax positions related to open tax years and concluded there were none.
3 unchanged sentences
However, since we have been in an NOL position since 2008 until recently, our 2008 to 2021 federal tax returns and our 2008 to 2020 state tax returns are potentially subject to examination adjustments to the extent of those NOL carryforwards.
+Added: We are currently under IRS audit for fiscal year 2023.
+Added: We believe our provisions for income taxes is adequate;
+Added: however, any assessment may affect our results of operations and cash flows.
No material amounts of tax-related interest or penalties were recorded during the years ended December 31, 2025, 2024 and 2023.
2 unchanged sentences
Clinicians use the results from these tests to aid in the diagnosis and treatment of dermatologic cancers, Barrett’s esophagus, uveal melanoma and in the treatment of mental health conditions.
−Removed: All of our operations are located within the United States and our business is focused on the U.S.
+Added: All of our operations are located within the United States (“U.S.”) and our business is focused on the U.S.
Budgets and financial information for net revenues are maintained and are regularly reviewed for each of our tests but expense information is not maintained and readily available below the consolidated results of operations level of aggregation.
4 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
−Removed: For the years ended December 31, 2024, 2023 and 2022, the measures of segment profit and loss for of our single reportable segment were as follows (in thousands):
+Added: The measures of segment loss or profit for of our single reportable segment were as follows (in thousands):
Years Ended December 31,
4 unchanged sentences
Personnel costs 209,816 189,883 172,248
−Removed: Organizational and business development costs 44,178 39,481 31,894
+Added: Organizational and marketing costs 51,545 44,178 39,481
Inventory usage 21,821 19,930 15,475
2 unchanged sentences
Other segment items 65,500 39,406 30,630
−Removed: Segment profit (loss) $ 18,245 $ ( 57,466 ) $ ( 67,138 )
+Added: Segment (loss) profit $ ( 24,158 ) $ 18,245 $ ( 57,466 )
(1) For information on disaggregation of segment revenue by type and information about payor concentration, see Note 3.
2 unchanged sentences
Personnel costs consist of salaries and wages, bonuses, employee benefits, stock-based compensation expense and payroll taxes.
−Removed: Personnel costs are a significant portion of operating expenses and are a component of cost of sales, research and development expense, and selling and general administrative expense.
+Added: Personnel costs are a significant portion of operating expenses and are a component of cost of sales, R&D expense and SG&A expense.
Our CODM considers this information injunction with test report deliveries in assessing budgeted and actual operational performance and in allocating resources.
−Removed: Organizational and business development costs
−Removed: Organizational and business development costs include expense incurred for travel, transportation, meals and lodging, training, and conference and venue fees and are a component of cost of sales, research and development expense, and selling and general administrative expense.
−Removed: Our CODM considers this information in their assessment of operating expense results and in planning and budgeting for future corporate development activities.
+Added: Organizational and Marketing Costs
+Added: Organizational and marketing costs include expense incurred for travel, transportation, meals and lodging, training and conference and venue fees and are a component of cost of sales, R&D expense and SG&A expense.
+Added: Our CODM considers this information in their assessment of operating expense results and in planning and budgeting for future corporate organizational and marketing activities.
Inventory Usage
3 unchanged sentences
Clinical studies and publication costs include expenses incurred through our pipeline initiatives as well as in gathering evidence to support the clinical validity and utility of our existing test portfolio.
−Removed: Our CODM considers this information in their assessment of research and development results and in planning and budgeting activities.
+Added: Our CODM considers this information in their assessment of R&D results and in planning and budgeting activities.
Professional Services
Professional services include expenses incurred for legal and advisory services across our business as well as expenses incurred for services provided by our independent auditors.
−Removed: Professional service expenses are a component of cost of sales, research and development expense, and selling and general administrative expense.
+Added: Professional service expenses are a component of cost of sales, R&D expense and SG&A expense.
Our CODM considers this information in their assessment of operating expense results and in planning and budgeting activities.
2 unchanged sentences
Other Segment Items
−Removed: Other segment items include all other operating expenses types to included IT service and software licensing costs, fixed and variable expenses incurred for leasing of facilities and equipment, depreciation and amortization, changes in fair value of contingent consideration, gain or losses on disposal of fixed assets in the routine course of business, fair value adjustment for trading securities, realized gains or losses on investment securities, administrative costs, expense for use of prepaids to include insurance premiums and warranties for lab equipment, public company costs (less audit fees), interest and other non-operating income, and income tax expense or benefits.
+Added: Other segment items include all other operating expenses types to included IT service and software licensing costs, fixed and variable expenses incurred for leasing of facilities and equipment, depreciation and amortization, gain or losses on disposal of fixed assets in the routine course of business, fair value adjustment for equity securities, realized gains or losses on investment securities, foreign currency exchange for certain equity securities and loan receivable, administrative costs, expense for use of prepaids to include insurance premiums and warranties for lab equipment, public company costs (less audit fees), interest and other non-operating income and income tax expense or benefits.
Our CODM does not individually review budgets or results for these activities.
−Removed: Other amounts included in the measure of segment profit or loss for the years ended December 31, 2024, 2023 and 2022 were as follows (in thousands):
+Added: Other amounts included in the measure of segment loss or profit were as follows (in thousands):
Years Ended December 31,
3 unchanged sentences
Depreciation and amortization $ 40,771 $ 15,997 $ 12,330
−Removed: Income tax expense (benefit) 3,319 101 ( 1,766 )
+Added: Income tax (benefit) expense $ ( 5,356 ) $ 3,319 $ 101
Stock-based compensation expense $ 45,893 $ 50,320 $ 51,219
−Removed: Changes in fair value of trading securities 555 — —
−Removed: Change in fair value of contingent consideration — — ( 18,287 )
−Removed: Total assets for our reportable segment were located in the United States and were $ 531.2 million and $ 453.3 million as of December 31, 2024 and 2023, respectively.
+Added: Net gains on equity securities $ 1,466 $ 555 $ —
+Added: Total assets for our reportable segment were located in the U.S.
+Added: and were $ 578.6 million and $ 531.2 million as of December 31, 2025 and 2024, respectively.
Expenditures for additions to long-lived assets were $ 45.1 million, $ 29.3 million and $ 13.5 million for the years ended December 31, 2025, 2024 and 2023, respectively.
+Added: Subsequent Events
+Added: On January 26, 2026, in connection with SciBase’s rights offering, we completed an amendment to our previously disclosed subscription commitment.
+Added: We agreed to increase our commitment to subscribe for shares without subscription rights from 115.0 million shares to 125.0 million shares.
+Added: This amendment was intended to achieve an outcome substantially similar to full participation under our subscription rights.
+Added: In addition, we purchased subscription rights for another 30.5 million shares from a separate SciBase shareholder.
+Added: These purchased rights, together with our shares without subscription rights, aggregated to a total share purchase of 155.5 million shares for $ 3.6 million.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.