Company: CSTL
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-048254
Chunk: 49

Company: CASTLE BIOSCIENCES INC
Filing Date: 2025-11-03
Form: 10-Q
Item: Item 1
Chunk 49
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 30,20252024Change(unaudited)Cost of sales (exclusive of amortization of acquired intangible assets)$1,446 $1,464 $(18)Research and development1,950 2,345 (395)Selling, general and administrative8,704 9,218 (514)Total stock-based compensation expense$12,100 $13,027 $(927)

The following table provides a disaggregation of net revenues by type (in thousands):

Three Months EndedSeptember 30,20252024Change(unaudited)Dermatologic(1)$48,523 $65,060 $(16,537)Non-Dermatologic(2)34,520 20,722 13,798 Total net revenues$83,043 $85,782 $(2,739)

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

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

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

 Three Months EndedSeptember 30, 20252024Change(unaudited)Net revenues$83,043 $85,782 $(2,739)Less: Cost of sales (exclusive of amortization of acquired intangible assets)18,704 15,609 3,095 Less: Amortization of acquired intangible assets2,276 2,272 4 Gross margin$62,063 $67,901 $(5,838)Gross margin percentage74.7 %79.2 %(4.5)%

Net Revenues

Net revenues for the three months ended September 30, 2025 decreased by $2.7 million, or 3.2%, to $83.0 million compared to the three months ended September 30, 2024, due to a $16.5 million decrease in revenue from our dermatologic tests offset by a $13.8 million increase in revenue from our non-dermatologic tests.

The $16.5 million decrease in net revenues for our dermatologic tests was primarily attributable to our DecisionDx-SCC test, which was due to lower realized average selling price (“ASP”). The reduction in ASP was primarily driven by the loss of Medicare LCD coverage in April 2025. For the