Company: CSTL
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-048254
Chunk: 201

Company: CASTLE BIOSCIENCES INC
Filing Date: 2025-11-03
Form: 10-Q
Item: Item 2
Chunk 201
---
$193,223 $(25,441)Non-Dermatologic(2)89,437 52,535 36,902 Total net revenues$257,219 $245,758 $11,461 

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

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

38

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

 Nine Months EndedSeptember 30, 20252024Change(unaudited)Net revenues$257,219 $245,758 $11,461 Less: Cost of sales (exclusive of amortization of acquired intangible assets)52,713 44,022 8,691 Less: Amortization of acquired intangible assets32,562 6,766 25,796 Gross margin$171,944 $194,970 $(23,026)Gross margin percentage66.8 %79.3 %(12.5)%

Net Revenues

Net revenues for the nine months ended September 30, 2025 increased by $11.5 million, or 4.7%, to $257.2 million compared to the nine months ended September 30, 2024, due to a $36.9 million increase in revenue from our non-dermatologic tests and a $25.4 million decrease in revenue from our dermatologic tests.

The $36.9 million increase in revenue from our non-dermatologic tests was largely attributable to a 90.5% increase in tests report volumes for our TissueCypher test, and, to a much lesser extent, a higher realized ASP. Increases in our TissueCypher test report volumes reflect growth through our sales force efforts. Net revenue from our non-dermatologic tests as a percentage of total net revenue increased from 21.4% for the nine months ended September 30, 2024 to 34.8% for the nine months ended September 30, 2025.

The $25.4 million decrease from our dermatologic tests was primarily due to a lower ASP for DecisionDx-SCC test, where we stopped receiving Medicare coverage as of April 24, 2025, offset by 10.6% increase in DecisionDx-SCC test report volumes