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DATE

Wednesday, May 6, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

  • Founder, President, and Chief Executive Officer — Derek J. Maetzold
  • Chief Financial Officer — Frank Stokes
  • VP, Investor Relations and Corporate Communications — Camilla Zuckero

TAKEAWAYS

  • Revenue -- $83.7 million for the quarter, with year-over-year growth of 36% in core test report volumes.
  • Revenue Guidance -- Full-year revenue outlook raised to $345 million–$355 million from previous guidance of $340 million–$350 million.
  • Test Reports – DecisionDx-Melanoma -- 10,021 test reports delivered, a 16% increase compared to the prior year.
  • Test Reports – TissueCypher -- 11,745 delivered, a 58% year-over-year increase, with record months in both March and April noted.
  • Adjusted Revenue Growth (Excluding DecisionDx-SCC & ID Genetics) -- Approximately 42% year-over-year growth, highlighting double-digit test report volume gains in DecisionDx-Melanoma for the period.
  • Gross Margin -- 72.8%, compared to 49.2% in the prior-year quarter; excluding amortization impacts, adjusted gross margin was 75.6%, versus 81.2% last year.
  • Operating Expenses -- $102.1 million, reflecting lower total expenses compared to $115.9 million last year, while sales and marketing, as well as G&A expenses, increased due to higher headcount and travel; offset by lower professional fees.
  • Sales & Marketing Expense -- $41.0 million, up from $36.8 million last year, driven by personnel and increased field activity to support volume growth.
  • Net Loss -- $14.5 million, an improvement from a net loss of $25.8 million in the prior-year quarter.
  • Adjusted EBITDA -- Negative $5.1 million, compared to negative $13.0 million in the comparable period.
  • Cash Position -- $261.7 million in cash, cash equivalents, and marketable securities as of March 31, 2026.
  • Advanced ADTx Orders -- 650 orders for the atopic dermatitis test in the quarter, reflecting early clinician interest during limited access release.
  • Clinical Data -- Newly presented DecisionDx-Melanoma and TissueCypher studies demonstrated significant clinical utility for risk stratification and management decisions in melanoma and Barrett's esophagus, respectively.
  • FDA Submission Timeline -- Company reiterated that submission for FDA review of the melanoma test remains on track for 2026.
  • Sales Force Size -- Fewer than 100 representatives currently cover both dermatology and GI verticals.

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RISKS

  • Frank Stokes reported, "Net cash used in operating activities was $22.1 million for 1Q26," referencing annual cash bonus payments and healthcare benefits that are not expected to recur in subsequent quarters. This may signal front-loaded cash outflows.
  • Frank Stokes stated, "periods, was 75.6% for the quarter compared to 81.2% for the same quarter in 2025." This directly indicates margin compression versus the prior year excluding amortization impacts.
  • Derek J. Maetzold cited, "Most of that beat was driven by TissueCypher," clarifying that DecisionDx-SCC provided less contribution.

SUMMARY

Management delivered higher-than-expected quarterly revenue and raised full-year guidance, citing double-digit volume growth for both DecisionDx-Melanoma and TissueCypher, as well as strong clinical adoption evidenced by record monthly performance. Operating expenses increased primarily in sales, marketing, and administrative functions to support field activity and business growth, although overall expenses declined versus the prior year due to reduced professional fees. New peer-reviewed and conference data for lead products provided additional validation for clinical utility in patient management. Cash and short-term investments remain ample, supporting further expansion and potential M&A. Leadership identified this as a continuing component of the growth strategy.

  • The company highlighted that Advanced ADTx test adoption produced approximately 650 orders under a controlled limited-access program, with reimbursement details targeted for disclosure by the end of the third quarter.
  • Derek J. Maetzold confirmed that the transition to a new Phoenix laboratory is not expected to have a material impact on gross margins.
  • No formal updates have yet been provided on DecisionDx-SCC reconsideration requests pending before Medicare contractors. Management continues to expect decisions within the current year.
  • Sales force is expected to remain below 100 representatives across both verticals for the near term, according to management statements.

INDUSTRY GLOSSARY

  • DecisionDx-Melanoma: Proprietary gene expression profiling test for assessing metastatic risk in cutaneous melanoma patients.
  • TissueCypher: Molecular test for risk stratification and management of Barrett's esophagus.
  • Advanced ADTx: Molecular diagnostic test guiding systemic therapy selection for atopic dermatitis.
  • AJCC: American Joint Committee on Cancer, which provides standardized staging criteria for cancers including melanoma.
  • SEER-linked: Integration of patient data from the Surveillance, Epidemiology, and End Results database for research applications.
  • SLNB: Sentinel Lymph Node Biopsy, a procedure to stage melanoma.
  • NCCN: National Comprehensive Cancer Network, a body issuing cancer care guidelines relevant to insurance coverage and clinical decisions.
  • LCD: Local Coverage Determination, a Medicare policy specifying whether a particular service is covered in a region.
  • JAK inhibitor: A therapy targeting Janus kinase enzymes used in treating atopic dermatitis.
  • TH2 biological therapy: Biologic drugs targeting Th2-mediated immune pathways in atopic dermatitis.
  • RCM: Revenue Cycle Management, referring to the processes insurance and payment management for tests.

Full Conference Call Transcript

Camilla Zuckero: Thank you, operator. Good afternoon, everyone. Welcome to Castle Biosciences, Inc. first quarter 2026 results conference call. Joining me today are Castle Biosciences, Inc.'s founder, president, and chief executive officer, Derek J. Maetzold, and chief financial officer, Frank Stokes. Information recorded on this call speaks only as of today, 05/06/2026. Therefore, if you are listening to the replay, or reading the transcript of this call, any time-sensitive information may no longer be accurate. A recording of today's call will be available on the Investor Relations page of the company's website for approximately three weeks following the conclusion of the call.

Before we begin, I would like to remind you that some of the statements made today will contain forward-looking statements including statements about expected addressable markets, statements containing projections regarding future events, or our future financial or operational results and performance, including our anticipated 2026 total revenue and the impact of our investments and growth initiatives including our ability to achieve long-term growth and drive stockholder value. Forward-looking statements are based upon current expectations and involve inherent risks and uncertainties. There can be no assurances the results contemplated in these statements will be realized. A number of factors and risks could cause actual results to differ materially from those contained in these forward-looking statements.

Please refer to the risk factors in our most recent SEC filings for more information. These forward-looking statements speak only as of today, and we assume no obligation to update or revise these forward-looking statements as circumstances change. In addition, some of the information discussed today includes non-GAAP financial measures such as adjusted revenue, gross margin, and adjusted EBITDA that have not been calculated in accordance with U.S. GAAP. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the tables at the end of our earnings release issued earlier today, which has been posted on the Investor Relations page of the company's website. I will now turn the call over to Derek.

Derek J. Maetzold: Thank you, Camilla, and good afternoon, everyone. We delivered strong first quarter results, building on our momentum from 2025. Thanks to the strong execution by the entire Castle Biosciences, Inc. team, we delivered revenue of $83.7 million. Test report volumes for our core revenue drivers grew 36% compared to 2025. Excluding DecisionDx-SCC and ID Genetics revenue, our revenue growth for 2026 is approximately 42% compared to 2025, highlighted by double-digit year-over-year test report volume growth for both DecisionDx-Melanoma and 2026.

Our teams remain focused on executing our growth priorities, and our strong performance gives us confidence to raise our 2026 revenue outlook to between $345 million and $355 million, compared to our previously provided guidance of $340 million to $350 million. Now I will walk you through business highlights from the first quarter, and then Frank will provide additional financial highlights before we turn to your questions. Let us start with our core revenue drivers, and what we see as the bulk of our 2026 top line growth story: DecisionDx-Melanoma and TissueCypher. For DecisionDx-Melanoma, we delivered 10,021 test reports in the first quarter, representing 16% year-over-year growth. Further, March 2026 saw an all-time high record month for test reports delivered.

We believe DecisionDx-Melanoma remains a durable growth driver and continue to expect mid to high single-digit volume growth for full-year 2026. Driving test adoption and sustaining our competitive advantage through robust clinical evidence remains a key priority. We recently presented new data at the 2026 American Academy of Dermatology Annual Meeting demonstrating that our DecisionDx-Melanoma test can significantly improve risk prediction within the American Joint Committee on Cancer, or AJCC, stages for patients with cutaneous melanoma. These data from 1,868 SEER-linked patients showed that DecisionDx-Melanoma significantly stratifies five-year melanoma-specific survival within AJCC stages and T categories, identifying patients whose mortality risk is substantially higher or lower than staging alone would predict.

What this means is that in this study, DecisionDx-Melanoma provided clinically meaningful differences in risk within the same stage, enabling more personalized, risk-aligned management decisions by helping clinicians identify patients who may warrant closer monitoring or early intervention while also recognizing those who may safely be managed less intensively. These results are in addition to our recently published data from the PRO multicenter study evaluating DecisionDx-Melanoma's i31-SLNB test result. Data from this prospective U.S.-based study confirmed again that our test identifies patients with a less than 5% predicted risk consistent with the National Comprehensive Cancer Network guideline thresholds while maintaining favorable outcomes and outperforming traditional staging criteria. Now let us turn to our gastroenterology franchise.

During 2026, we delivered 11,745 TissueCypher test reports compared to 7,432 in 2025, which is 58% growth. Consistent with our DecisionDx-Melanoma test, March also represented an all-time record month for TissueCypher. Two studies were recently presented at Digestive Disease Week by researchers at the Mayo Clinic. The findings demonstrated how molecular risk stratification with the TissueCypher test refined risk assessment and directly informed real-world management decisions for patients with Barrett's esophagus, with one study showing changes in surveillance intervals in more than half of patients compared with recommendations guided by traditional histopathology alone, supporting more personalized, risk-aligned patient management. Look to our news release from earlier this month for more information on these studies.

For the full year, we expect to add a similar number of tests in 2026 as we did in 2025, indicating year-over-year growth approaching 50%. Let us move on to what we believe are our midterm—2027 and 2028—revenue drivers, which includes our Advanced ADTx test in addition to our core revenue drivers. As a reminder, Advanced ADTx is our first-in-class test designed to guide systemic treatment selection for patients 12 years of age and older with moderate to severe atopic dermatitis, or AD. You may recall that we released this test under a limited program in 2025. Continuing on our limited access during the first quarter, we received approximately 650 orders.

Initial responses indicate that clinicians appreciate that Advanced ADTx integrates into their existing AD care pathway, helping them make more informed systemic therapy choices early in the patient treatment journey. Supporting this claim, during the quarter we published data from a prospective multicenter clinical validation study in the Journal of the American Academy of Dermatology, demonstrating that Advanced ADTx can identify patients with moderate to severe atopic dermatitis who are significantly more likely to achieve greater and faster responses when treated with a JAK inhibitor compared to a TH2 biological therapy.

The data showed that Advanced ADTx can stratify patients by molecular profile, identifying those more likely to achieve near-clear skin or EASI-90, faster time to response, and meaningful patient-reported benefits when taking a JAK inhibitor, supporting improved outcomes and more biologically informed systemic treatment decisions early in the treatment journey with JAK inhibitor therapy as compared to TH2-targeted biologic therapy. Based on revenue cycle timelines, we expect to be in a position to provide more detail on reimbursement by the end of the third quarter 2026. And with that, I will now turn the call over to Frank.

Frank Stokes: Thank you, Derek, and good afternoon, everyone. As Derek noted, our first quarter financial performance marks a strong start to 2026. Revenue was $83.7 million for 1Q26, driven by continued strength in our core revenue drivers. For total revenue for 2026, we are raising our revenue guidance to $345 million to $355 million, up from the previously provided range of $340 million to $350 million. This is growth of high-teens to low-20s in 2026 over 2025, excluding revenue from DecisionDx-SCC and ID Genetics from the 2025 and 2026 totals. Our gross margin during 1Q26 was 72.8% compared to 49.2% in 1Q25. As a reminder, 1Q25 gross margin reflects the one-time adjustment of accelerated amortization expense of approximately $20.1 million.

Our adjusted gross margin, which excludes the effects of intangible asset amortization related to our acquisitions and excludes the effects of revenue adjustments in the current period associated with test reports delivered in prior periods, was 75.6% for the quarter compared to 81.2% for the same quarter in 2025. Turning to expenses. Our total operating expenses, including cost of sales, for 1Q26 were $102.1 million compared to $115.9 million for 1Q25. Sales and marketing expenses for the quarter were $41.0 million compared to $36.8 million for the same period in 2025, primarily driven by higher personnel costs and higher sales-related travel expenses.

Increases in personnel costs reflect a higher headcount driven by salesforce expansion as well as merit and annual inflationary wage adjustments for existing employees. Higher sales-related travel expenses reflect increased field activity to support growing test report volumes. General and administrative expenses were $23.9 million for the quarter, compared to $21.8 million for the same period in 2025, primarily attributable to higher personnel costs, higher information technology-related costs, and higher travel costs, partially offset by a decrease in professional fees. Increases in personnel costs reflect headcount expansions in our administrative support functions as well as merit and annual inflationary wage adjustments for existing employees.

Cost of sales expenses were $20.5 million in 1Q26, compared to $16.4 million in 1Q25, primarily due to higher expenses for lab supplies, higher lab services costs, higher personnel costs, and higher depreciation expense. The increase in expenses for lab supplies and lab services expense was driven by higher test report volumes. Increases in personnel costs reflect a higher headcount due to additions made to support business growth in response to growing test report volumes as well as merit and annual inflationary wage adjustments for existing employees. The higher depreciation expense reflects continued investment in and expansion of our laboratory facilities.

R&D expenses were $14.4 million for the quarter, compared to $12.6 million for the same period in 2025, primarily due to higher personnel costs and higher clinical studies costs. The increases in personnel costs reflect a higher headcount to support continued business growth, and increases in clinical studies costs reflect investment in our pipeline products. Total noncash stock-based compensation expense, which is allocated among cost of sales, R&D, and SG&A expense, was $9.0 million for 1Q26, compared to $11.2 million in 1Q25. Interest income was $2.5 million for 1Q26, compared to $3.1 million in 1Q25. Our net loss for the quarter was $14.5 million compared to a net loss of $25.8 million for 1Q25.

Diluted loss per share for the first quarter was $0.49 compared to a diluted loss per share of $0.90 for the same period in 2025. Adjusted EBITDA for the first quarter was negative $5.1 million compared to negative $13.0 million for the comparable period in 2025. The year-over-year change primarily reflects a one-time noncash amortization expense recognized in 2025 related to the accelerated amortization of our ID Genetics test. Net cash used in operating activities was $22.1 million for 1Q26, due in part to annual cash bonus payments and certain healthcare benefit payments that do not recur through the remaining three quarters of the year.

Net cash used in investing activities was $25.8 million for the first quarter, consisting primarily of purchases of marketable investment securities of $55.1 million and purchases of property and equipment, partially offset by the maturities of marketable investment securities and the sale of equity securities. As of 03/31/2026, we had cash, cash equivalents, and marketable securities of $261.7 million. As we have discussed, we expect M&A to play a role in our growth story, and we intend to continue to evaluate candidates that fit within our strategic opportunities criteria. In closing, I am pleased with our strong first quarter results and increased guidance which reflect the consistent execution and momentum we are building across the entire business.

I will now turn the call back over to Derek.

Derek J. Maetzold: Thank you, Frank. In summary, I am pleased with our strong start to 2026. We remain confident in our ability to execute our growth strategy and drive long-term value to our stockholders. Finally, I want to thank the entire Castle Biosciences, Inc. team for their dedication to advancing patient care and improving patients' lives. We are proud of our accomplishments and excited about the path ahead, and we look forward to sharing our continued progress in the coming quarters. Thank you for your continued interest in Castle Biosciences, Inc. Now we will be happy to take your questions. Operator?

Operator: We will now open the call for questions. In order to allow everyone in the queue an opportunity to address the Castle Biosciences, Inc. management team, please limit your time on the call to one question and only one follow-up. If you have additional questions, please return to the queue. If you would like to ask a question, please type star one on your telephone keypad to raise your hand. Your first question comes from the line of Mason Owen Carrico with Stephens. Your line is open. Please go ahead.

Mason Owen Carrico: Hey, guys. Thanks for taking the questions here. I want to start out with TissueCypher volume: 58% growth year over year, obviously that is great growth, but volumes did decline very modestly quarter over quarter. That just has not happened since early 2024, I think. So any unique dynamics to call out in the quarter that may have contributed to that, whether seasonality, anything capacity-related? Just any color there would be great.

Derek J. Maetzold: Yes, sure, Mason. Thanks. As you know, we continue to see really strong growth there with 58% year-over-year growth. On the sequential or quarter-to-quarter trend there, I think we finally have hit the penetration level where we are seeing seasonality and sensing that. Based on looking at IQVIA third-party data, historically, the first quarter of the year has fewer GI procedures than the other quarters. But having said that, importantly, March was a record month for TissueCypher, and that trend continued in April. So we would expect to add a similar number of test reports in 2026 as we did in 2025, and that gets us something close to 50% year-over-year growth for the year.

So a good performance on the test, and we continue to be pleased with what we are seeing.

Mason Owen Carrico: Got it. Thanks, Frank. And could you give us an update on the reimbursement initiatives for your ADTx test or the progress you have made on that front? And then as a follow-up, on the potential for revenue to become material there in 2027 or 2028, where do you expect that revenue to come from? Is it all from appeals, or could there be some other revenue model contributing next year by 2028?

Derek J. Maetzold: Hi, Mason. We think based upon the long revenue cycles from an RCM perspective, we could be in a position probably by the end of the third quarter to provide some good evidence-based clarity in terms of what we are seeing, but we can assume for 2027 and 2028 under a traditional reimbursement approach. There are, of course, other avenues as well in terms of interested parties who may be interested in controlling the cost of having patients keep cycling around medications. And, of course, there is always an opportunity to partner with some of the commercial companies who might have an interest in having their share shifted.

But for right now, I would say we are relying primarily on traditional governmental or private payer category reimbursement, and we expect probably in the third quarter to give some strong clarity based on evidence.

Operator: Your next question comes from the line of Thomas Flaten with Lake Street. Your line is open. Please go ahead.

Thomas Flaten: Yeah, good afternoon. I appreciate you taking the questions. I think you guys were relocating to a new Phoenix lab at some point this year. Any update on what impact that might have on gross margins going forward? I do not think we will—

Derek J. Maetzold: I do not think we will see much impact on gross margins, Thomas. We have not made that change yet. We are moving into an expanded facility in the Phoenix area, and that is really with an eye toward, as you recall from working with us for a while, staying a couple of years ahead of demand in terms of capacity. As we look at the expanding derm franchise and the growth in those test volumes in particular, we are trying to stay ahead of it.

I do not have guidance for you on when we will make that move, but I do not think you will see much impact on gross margin at all as we shift from one facility to the other.

Thomas Flaten: Got it. And then on Advanced ADTx, any thoughts on broadening this initial rollout? I think you had 150 accounts targeted as the first group. Will that stay at those 150 for the foreseeable future, at least until you have more visibility into reimbursement?

Derek J. Maetzold: We opened up access a bit more late in the first quarter. We will look at our volume, look at our early RCM assumptions, make sure we are on track, and then continue to release it over time. That being said, having 650 orders come in the door in the first quarter is very nice reinforcement of the opportunity that we have here when the field force is 100% focused on melanoma and we have such limited access to our customer base. We are quite pleased with the continued early response of the dermatologic clinicians out there in the field.

Operator: Your next question comes from the line of Analyst with Baird. Your line is open. Please go ahead.

Analyst: Hi, guys. Thanks for the questions. Maybe first, for the mid to high single-digit melanoma volume growth for the year, off to a really strong start there with mid-teens growth in 1Q. Should that double-digit growth continue in the second quarter with some conservatism baked into the back half? Or how should we think about the phasing there?

Derek J. Maetzold: We did reiterate our 2026 mid to high single-digit growth expectations. Q1 was a bit of an easier comp than we expect for the rest of the year. We are pleased with that, and I think that is where we see the business trending.

Analyst: Okay.

Analyst: And then, have you been getting any feedback from clinicians regarding some of the moving pieces on NCCN guidelines and any feedback you have received on the Future Oncology publication or any other data that you have put out recently?

Derek J. Maetzold: We continue to get good feedback on, “I do not quite understand what NCCN sees here.” This is a failed study—failed to meet the 5% cut point—so what is trying to be said? Which is good for us, I think. Unfortunately, from an NCCN standpoint, there is a belief that this is really more political than we even thought. We are hearing that from most of our customers. The recent SIDE study which came out in Future Oncology earlier this year was another strong reinforcement that if you use our test to look at accuracy, once again, we have one more study showing that we comfortably get way below 5% predicted risk in people who actually undergo SLNB.

As important in that same publication is that people who used our test to move away from SLNB—meaning you did not know if you were going to be positive or negative—had extremely strong outcomes; it was 97% or 98% recurrence-free survival over the time period of the publication. That is a really safe melanoma patient, if you can use those two words together. That continues to be strong reinforcement that we have data that clinicians can rely upon that is consistent over time, which is excellent. I think that also led to having our greatest month ever in March.

Operator: Your next question comes from the line of Analyst with Guggenheim. Your line is open. Please go ahead.

Analyst: Hi, guys. This is Thomas on for Suvi. Thanks for taking our questions. Frank, you mentioned M&A. Is that something you are looking at near term? Can you just walk us through the factors you are considering when evaluating targets and your criteria there?

Derek J. Maetzold: I think we always keep an open eye to what may be a possibility. We own things as we become aware of them. We do not feel compelled to chase anything. We have a great opportunity with what we own and control today. But we do look at things as they come around or come across us. The “Goldilocks” approach is pretty tough. Things have to look pretty good, but we do think that could be part of the future.

Analyst: Great. And then separately, maybe on sales—can you just give an update today on derm and GI? And then how is headcount expansion expected to look for this year, and how does that translate to selling and marketing spend?

Derek J. Maetzold: We have said we think we can cover, for the time being in the near term, both of those verticals with fewer than 100 reps, and that is where we are today.

Operator: Your next question comes from the line of Matthew Parisi with KeyBanc Capital Markets. Your line is open. Please go ahead.

Matthew Parisi: Hi. Sorry, I was on mute. This is Matthew on for Paul Knight at KeyBanc Capital Markets. Congrats on the quarter and thanks for taking my question. You previously mentioned in 2025 that melanoma received FDA Breakthrough designation, and I was wondering if Castle Biosciences, Inc. was still preparing for an FDA submission in 2026 that you had mentioned.

Derek J. Maetzold: We are moving forward with a submission along that same timeline, sometime in 2026, yes.

Matthew Parisi: Alright, thank you. And then just one other follow-up. Wondering if there has been an update on SCC—I know you had received acceptance of the reconsideration request for both Novitas and MolDx—and if there is any update or an idea on timing.

Derek J. Maetzold: No official update from either one of the Medicare contractors, Palmetto or Novitas, since our year-end earnings call a few weeks ago. We still continue to believe that a year-plus review cycle should be plenty of time for reconsideration requests that were accepted in, I guess, July and September accordingly between Novitas and MolDx. We are not at this point in time thinking that there is a later posting of a draft LCD than the second half of this year. That would be surprising.

Operator: Your next question comes from the line of Kyle Alexander Mikson with Canaccord. Your line is open. Please go ahead.

Kyle Alexander Mikson: Hey, guys. Thanks for the questions. On the 650 orders for the atopic dermatitis test, could you talk about recent trends and how you expect that to accelerate going forward? And when you think about that number getting into the thousands in the near term, how does that affect the cost structure of the company? As we see gross margin decline sequentially and things like that, how should we be thinking about P&L impact?

Derek J. Maetzold: So you know about COGS and [inaudible].

Frank Stokes: Yeah, so, Kyle, I think what we see right now is that the primary hurdle for our AD test is just our willingness—candidly—on how available we want to make it. In terms of impacting the overall COGS profile, that is a pretty efficient test. It is a PCR-based test, and so we would not expect a material impact on the blended adjusted COGS even with some growth in volumes from where we were in Q1. Certainly not in the next several quarters anyway.

Kyle Alexander Mikson: Okay. On that note, how do you anticipate the cadence of expenses throughout this year? It was a little bit surprising to see the net loss and the lower-than-expected EBITDA in the quarter. As we think about cash flow positivity—that has been a goal for 2026–2027 for a while—how should we look at that metric?

Frank Stokes: Yeah, so as you know, we continue to focus growth on three windows—near, medium, and long term. As we support that, we do expect some growth in operating expenses. I think as we get through Q1 here and we lap the more meaningful change in SCC revenue, we will get to a more meaningful comparability period going forward. But I think that we continue to grow into the P&L and leverage the cost structure, and our intent is to generate meaningful returns on those operating expenses, driving value going forward.

Operator: Your next question comes from the line of Puneet Souda with Leerink Partners. Your line is open. Please go ahead.

Puneet Souda: Yes. Hi, guys. Thanks for the question here. First one, on the guide itself—you beat by $4 million and raised by $5 million, largely banking the beat. I wanted to understand how much of the beat was from SCC.

Derek J. Maetzold: Most of that beat was driven by TissueCypher.

Puneet Souda: Okay, got it. And then, can you provide a little more color on the TissueCypher ramp throughout the year? I think you called out you had two best months—March and April—but maybe it was sequentially down. I did not exactly catch that. How should we think about the ramp from 1Q to 2Q? It seems it could be larger than what you saw last year.

Derek J. Maetzold: As we said, we continue to think we will add a similar number of test reports for 2026 as in 2025. I think we are big enough, or penetrated enough now, that seasonality is finally to the point where we feel it. As I referenced, the number of procedures tends to be lower in Q1. So I think we will see that growth come ratably through the year. I am not aware of things quarter to quarter that should shift that from more of a ratable ramp.

Operator: There are no further questions at this time. I will now turn the call back to Derek for closing remarks.

Derek J. Maetzold: This concludes our first quarter 2026 earnings call. Thank you again for joining us today and for your continued interest in Castle Biosciences, Inc.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.