Company: CSTL
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001447362-25-000097
Chunk: 30

Company: CASTLE BIOSCIENCES INC
Filing Date: 2025-08-04
Form: 10-Q
Item: Item 1
Chunk 30
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 our effective tax rate for the period. Because this benefit is nonrecurring and not reflective of ongoing operations, the effective tax rate for the period is not meaningful. The effective rate for the three and six months ended June 30, 2025 differed from our federal statutory rate of 21% primarily due to the tax impact from the valuation allowance for current year activity including the acquisition of Capsulomics, state income taxes and the non-deductibility of other permanent items.Our effective income tax rate was (13.1)% and (18.3)% for the three and six months ended June 30, 2024. The effective rate for the three and six months ended June 30, 2024 differed from our federal statutory rate of 21% primarily due to the tax impact from the valuation allowance for current year activity, state income taxes and the non-deductibility of other permanent items.

15. Segment and Related Information

The Company derives revenues through the delivery of test reports for our molecular diagnostic tests. All of our operations are located within the United States and our business is focused on the U.S. market. We have a single reportable segment consisting of a single operating segment.

24

Table of ContentsCASTLE BIOSCIENCES, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)(UNAUDITED)

The measures of segment profit and loss for of our single reportable segment were as follows (in thousands):Three Months EndedJune 30,Six Months EndedJune 30,2025202420252024Net revenues from external customers(1)$86,188 $87,002 $174,176 $159,976 Significant segment expenses:Personnel costs51,551 48,051 103,751 93,967 Organizational and business development costs14,487 11,835 28,716 22,835 Inventory usage5,458 5,013 10,189 9,800 Clinical studies and publication costs1,923 3,177 4,008 5,814 Professional services2,298 2,420 5,874 5,544 Other segment items5,948 7,586 42,963 15,630 Segment income (loss)$4,523 $8,920 $(21,325)$6,386 (1)For information on disaggregation of segment revenue by type and information about payor concentration, see Note