Company: CSTL
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-048254
Chunk: 31

Company: CASTLE BIOSCIENCES INC
Filing Date: 2025-11-03
Form: 10-Q
Item: Item 1
Chunk 31
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20252024Average expected term (years)N/A5.0Expected stock price volatilityN/A80.20% - 80.20%Risk-free interest rateN/A4.39% - 4.39%Dividend yieldN/A—%The following table sets forth assumptions used to determine the fair value of the purchase rights issued under the ESPP: Nine Months EndedSeptember 30,20252024Average expected term (years)1.21.2Expected stock price volatility 56.55% - 85.21%59.85% - 130.95%Risk-free interest rate 3.52% - 4.22%3.82% - 5.33%Dividend yield—%—%We use the closing price of our common stock on the date of grant to determine the fair value of RSUs and PSUs.Fair ValueThere were no stock options granted for the nine months ended September 30, 2025. For the nine months ended September 30, 2024, the weighted-average grant date fair value of the stock options was $9.23 per share. For the nine months ended September 30, 2025 and 2024, the weighted-average grant date fair value of the purchase rights granted under the ESPP was $9.71 and $12.28 per share, respectively. 

24

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

Stock-Based Compensation ExpenseStock-based compensation expense is included in the condensed consolidated statements of operations as follows (in thousands): Three Months EndedSeptember 30,Nine Months EndedSeptember 30, 2025202420252024Cost of sales (exclusive of amortization of acquired intangible assets)$1,446 $1,464 $4,324 $4,179 Research and development1,950 2,345 5,807 7,611 Selling, general and administrative8,704 9,218 24,356 27,091 Total stock-based compensation expense$12,100 $13,027 $34,487 $38,881 Retirement Policy 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