Company: CSTL
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001447362-25-000069
Chunk: 128

Company: CASTLE BIOSCIENCES INC
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 8
Chunk 128
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 $3,628 Non-Dermatologic(2)25,026 13,640 11,386 Total net revenues$87,988 $72,974 $15,014 

(1)Consists of DecisionDx-Melanoma, DecisionDx-SCC and our Diagnostic GEP offering.

(2)Consists of TissueCypher, DecisionDx-UM and IDgenetix. 

The following table presents the calculation of gross margin (in thousands, except percentages):

 Three Months EndedMarch 31, 20252024Change(unaudited)Net revenues$87,988 $72,974 $15,014 Less: Cost of sales (exclusive of amortization of acquired intangible assets)16,383 13,894 2,489 Less: Amortization of acquired intangible assets28,325 2,247 26,078 Gross margin$43,280 $56,833 $(13,553)Gross margin percentage49.2 %77.9 %(28.7)%

Net Revenues

Net revenues for the three months ended March 31, 2025 increased by $15.0 million, or 20.6%, to $88.0 million compared to the three months ended March 31, 2024, due to a $11.4 million increase in revenue from our non-dermatologic tests and a $3.6 million increase in revenue from our dermatologic tests.

The $11.4 million increase in net revenues for our non-dermatologic tests was primarily attributable to our TissueCypher Barrett’s Esophagus test, which was due to higher test report volumes and, to a lesser extent, higher realized average selling price (“ASP”). For the three months ended March 31, 2025 compared to the three months ended March 31, 2024, test report volumes for our TissueCypher Barrett’s Esophagus tests increased by 117%.

The $3.6 million increase in net revenues from our dermatologic tests was largely attributable to an increase in test report volumes for our DecisionDx-SCC test. Increases in our DecisionDx-SCC test report volumes reflect growth through our sales force efforts. Net revenue from our dermatologic tests as a percentage of total net revenue increased from 18.7% for the three months ended March 31, 2024 to 28