CareDx, Inc.

1. ORGANIZATION AND DESCRIPTION OF BUSINESS

CareDx, Inc. (“CareDx” or the “Company”), together with its subsidiaries, is a precision medicine company dedicated to advancing care in transplant, specialty oncology, and cell therapy. The Company delivers solutions designed to empower clinicians and improve patient outcomes. The Company’s portfolio spans non-invasive molecular testing, clinical practice management software, AI-powered data and analytics tools, and patient support solutions designed to connect diagnostic insight, clinical workflow, and patient engagement to help improve patient outcomes. The Company’s headquarters are in Brisbane, California. It operates laboratories in California, North Carolina and Massachusetts. It maintains pharmacies in Mississippi, Louisiana, and Georgia.

The Company’s commercially available post-transplant testing services consist of AlloSure® Kidney, a donor-derived cell-free DNA (“dd-cfDNA”) solution for kidney transplant patients, AlloMap® Heart, a gene expression profiling solution for heart transplant patients, AlloSure® Heart, a dd-cfDNA solution for heart transplant patients, HeartCare, the combined use of AlloMap Heart and AlloSure Heart, and AlloSure® Lung, a dd-cfDNA solution for lung transplant patients. The Company’s commercially available specialty oncology service is NavDx®, a blood-based test that detects and monitors human papillomavirus (“HPV”)-mediated cancers — including head, neck, and anal cancers — from diagnosis through post-treatment molecular residual disease (“MRD”) surveillance. The Company has initiated several clinical studies to generate data on its existing and planned future testing services. The Company has signed multiple biopharma research partnerships for AlloCell, a surveillance solution that monitors the level of engraftment and persistence of allogeneic cells for patients who have received cell therapy. The Company also provides digital and patient solutions, including clinical practice management software, data and analytics tools, and patient support offerings.

Sale of Lab Products Business

On April 15, 2026, the Company entered into a Purchase Agreement (the “Purchase Agreement”) with Eurobio Scientific S.A. (“Eurobio”) to sell Eurobio the shares of CareDx AB, the Company's wholly-owned Swedish subsidiary, and certain assets related to the Company’s kitted laboratory products business and related software (collectively, the “products business”).

The transaction closed on June 30, 2026 and the Company received cash proceeds of approximately $171.7 million, reflecting the base purchase price of $170.0 million, as adjusted for estimated working capital, cash, and other adjustments, subject to finalization of customary post-closing purchase price adjustments, excluding transaction costs. During the three and six months ended June 30, 2026, the Company recognized a gain on sale of lab products business of approximately $113.0 million, measured as the consideration received less the carrying amount of the net assets transferred to Eurobio or otherwise derecognized (including $4.4 million of goodwill allocated to the products business, which reduced the gain on sale), net of transaction costs of approximately $4.8 million. The foreign currency translation adjustment relates to the reclassification adjustment for accumulated foreign currency translation impacts from the sale of the foreign entities and is included in the gain on sale of lab products business. The gain on sale of lab products business is presented within operating expenses in the unaudited condensed consolidated statements of operations.

The products business was a component of the Company’s operations. The Company evaluated the sale under ASC 205-20, Presentation of Financial Statements — Discontinued Operations, and concluded that the transaction did not represent a strategic shift that has or will have a major effect on the Company’s operations and financial results. Accordingly, the historical operating results of the products business continue to be reported within continuing operations for all periods presented.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies and estimates used in the preparation of the unaudited condensed consolidated financial statements are described in the Company’s audited consolidated financial statements as of and for the year ended December 31, 2025, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the United States Securities and Exchange Commission (the “SEC”) on February 25, 2026.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”), and follow the requirements of the SEC for interim reporting. As permitted under those rules, certain notes and other financial information that are normally required by U.S. GAAP can be condensed or omitted.

These unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s annual consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments that are necessary for a fair statement of the Company’s financial information. The condensed consolidated balance sheet as of December 31, 2025 has been derived from audited consolidated financial statements as of that date but does not include all of the financial information required by U.S. GAAP for complete financial statements.

Certain reclassifications have been made to prior period amounts to conform to current period presentations. Operating results for the three and six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2026.

Use of Estimates

The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the Company’s unaudited condensed consolidated financial statements and accompanying notes. On an ongoing basis, management evaluates its estimates, including those related to transaction price estimates used for testing services revenue; accrued expenses for clinical studies; inventory valuation; the grant date fair value assumptions used to estimate stock-based compensation expense; income taxes; impairment of long-lived assets and indefinite-lived assets (including goodwill); gain on sale of lab products business, including estimated post-closing purchase price adjustments; and legal contingencies. Actual results could differ from those estimates.

For the three and six months ended June 30, 2026, the Company recognized $18.0 million and $35.6 million, respectively, in revenue for tests performed in prior periods, as all performance obligations were satisfied at the time the contract was established. For the three and six months ended June 30, 2026, testing services revenue was reduced by $2.4 million and $5.8 million, respectively, due to an increase in the refunds reserve to third-party payers.

For the three and six months ended June 30, 2025, the Company reduced revenue by $3.8 million and $4.9 million, respectively, for tests performed in prior periods. The reductions reflected a change in estimate and constraint of variable consideration under ASC 606.

Concentrations of Credit Risk and Other Risks and Uncertainties

For the three months ended June 30, 2026 and 2025, approximately 30% and 34%, respectively, of total revenue was derived from Medicare. For the six months ended June 30, 2026 and 2025, approximately 29% and 36%, respectively, of total revenue was derived from Medicare.

As of June 30, 2026 and December 31, 2025, approximately 21% and 21%, respectively, of accounts receivable was due from Medicare. No other payer or customer represented more than 10% of accounts receivable at either June 30, 2026 or December 31, 2025.

Recent Accounting Pronouncements

In November 2024, the Financial Accounting Standards Board (“FASB”) issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures. This standard requires entities to disaggregate certain costs and expenses into specific categories and by relevant expense caption in the statement of operations. This guidance will be effective for the Company’s annual disclosures for the fiscal year ending December 31, 2027 and for interim period disclosures beginning in the fiscal year ending December 31, 2028. The Company is currently evaluating the potential impact of the new standard on its consolidated financial statements and related disclosures.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This standard modernizes the accounting guidance for internal-use software costs to better reflect current development practices, including agile and iterative methodologies. This guidance is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years. The Company is currently evaluating the provisions of this ASU.

In December 2025, the FASB issued ASU 2025-11, Narrow-Scope Improvements (Topic 270): Interim Reporting. This update makes targeted, narrow-scope improvements to the interim reporting guidance in Topic 270 to clarify application and improve consistency in practice. The amendments do not change the underlying principles of interim reporting. The amendments in this ASU are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company expects to adopt the guidance in its Form 10-Q for the interim period ending March 31, 2028. The Company is currently evaluating the provisions of this ASU and does not expect to have a material impact on its consolidated financial statements.

In December 2025, the FASB issued ASU 2025-12, Codification Improvements. ASU 2025-12 addresses suggestions received from stakeholders regarding the Accounting Standards Codification and makes other incremental improvements to U.S. GAAP. The update represents changes to the Codification that clarify, correct errors in or make other improvements to a variety of topics that are intended to make it easier to understand and apply. ASU 2025-12 is effective for fiscal years beginning after December 15, 2026 and interim periods within those fiscal years. Entities are required to apply the amendments to ASC 260 retrospectively. Amendments to all other ASC topics may be applied prospectively or retrospectively. Early adoption is permitted. Other than Issue 10 of ASU 2025-12, which the Company early adopted as discussed under Recently Adopted Accounting Guidance, the Company is currently evaluating the remaining provisions of this ASU and does not expect them to have a material impact on its consolidated financial statements.

Recently Adopted Accounting Guidance

In December 2025, the FASB issued Accounting Standards Update No. 2025-12, “Codification Improvements,” which addresses stakeholders’ feedback on the Accounting Standards Codification and makes other incremental improvements to generally accepted accounting principles. Specifically, Issue 10 of ASU 2025-12 added a clarification within ASC 505-30 to provide a policy election to permit the excess of repurchase price over par value in a stock repurchase transaction to be accounted for entirely as a reduction in additional paid-in capital when the repurchased shares are retired, provided that such reduction does not cause additional paid-in capital to become negative.

The Company early adopted Issue 10 of ASU 2025-12 during the quarter ended June 30, 2026, applying the amendments retrospectively to the beginning of the earliest period presented. Management believes that presenting the excess of repurchase price over par value entirely as a reduction to additional paid-in capital, as explicitly permitted by ASU 2025-12, is preferable because it enhances comparability with other entities in this industry applying the same guidance and provides a clearer presentation of the components of stockholders' equity. As a result, the Company retrospectively adjusted additional paid-in capital and accumulated deficit for all periods presented.

This adjustment resulted in a reclassification of $116.5 million between additional paid-in capital and accumulated deficit as of the beginning of fiscal year 2026, withno effect on total stockholders’ equity for that period. The cumulative effect of the change on accumulated deficit as of the beginning of fiscal year 2025 was an increase of $28.7 million, with a corresponding offsetting decrease to additional paid-in capital, and no effect on total stockholders’ equity.

3. NET INCOME (LOSS) PER SHARE

Basic and diluted net income (loss) per share have been computed by dividing the net income (loss) by the weighted-average number of common shares outstanding during the period.

For the three and six months ended June 30, 2026, common share equivalents have been included in the calculation of diluted net income per share.

For the three and six months ended June 30, 2025, all common share equivalents have been excluded from the calculation of diluted net loss per share, as their effect would be antidilutive.

The following tables set forth the computation of the Company’s basic and diluted net income (loss) per share (in thousands, except shares and per share data):

The following potentially dilutive securities have been excluded from diluted net income (loss) per share as of June 30, 2026 and 2025 because their effect would be antidilutive:

4. FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The Company uses the U.S. GAAP fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows:

•Level 1: Inputs that include quoted prices in active markets for identical assets and liabilities.

•Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

•Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following table sets forth the Company’s financial assets and liabilities, measured at fair value on a recurring basis, as of June 30, 2026 and December 31, 2025 (in thousands):

The following table presents the changes in estimated fair value and payments of the Company’s Level 3 financial instruments that are measured at fair value on a recurring basis (in thousands):

In determining fair value, the Company uses various valuation approaches within the fair value measurement framework. The valuation methodologies used for the Company’s instruments measured at fair value and their classification in the valuation hierarchy are summarized below:

•Money market funds – Investments in money market funds are classified within Level 1. Money market funds are valued at the closing price using the fund’s net asset value reported by the fund sponsor, utilizing actively traded exchange information. As of December 31, 2025, money market funds were included as cash and cash equivalents in the condensed consolidated balance sheets.

•Contingent consideration– Contingent consideration is classified within Level 3. Contingent consideration relates to asset acquisitions and business combinations. The Company recorded the estimate of the fair value of the contingent consideration based on its evaluation of the probability of the achievement of the contractual conditions that would result in the payment of the contingent consideration. Contingent consideration was estimated using the fair value of the milestones to be paid if the contingency is met based on management’s estimate of the probability of success and projected revenues for revenue-based considerations at discounted rates of 7% at June 30, 2026 and 7% at December 31, 2025. The significant input in the Level 3 measurement that is not supported by market activity is the Company’s probability assessment of the achievement of the milestones. The value of the liability is subsequently remeasured to fair value at each reporting date, and the change in estimated fair value is recorded as income or expense within operating expenses in the condensed consolidated statements of operations until the milestones are paid, expire or are no longer achievable. Increases or decreases in the estimation of the probability percentage result in a directionally similar impact on the fair value measurement of the contingent consideration liability. The carrying amount of the contingent consideration liability represents its fair value.

5. CASH AND MARKETABLE SECURITIES

Cash, Cash Equivalents and Restricted Cash

A reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the amount reported within the condensed consolidated statements of cash flows is shown in the table below (in thousands):

Marketable Securities

The Company heldno marketable securities as of June 30, 2026. As of December 31, 2025, the Company had $135.9 million of marketable securities, which were classified as held-to-maturity and carried at amortized cost.

6. GOODWILL AND INTANGIBLE ASSETS

Goodwill

Goodwill is tested annually for impairment at the reporting unit level during the fourth quarter or upon the identification of triggering events that would more likely than not reduce the fair value of goodwill below its carrying amount.

On June 30, 2026, the Company completed the sale of its lab products business (see Note 1 to these financial statements). In accordance with ASC 350-20, the Company allocated $4.4 million of goodwill to the divested business based on the relative fair values of the business disposed of and the portion of the reporting unit retained. This amount was derecognized upon closing and included in the net assets sold in determining the gain on sale of lab products business. The Company evaluated the goodwill balance in the retained reporting unit for impairment indicators and no impairment was identified.

The following table presents changes in the carrying amount of goodwill for the six months ended June 30, 2026 (in thousands):

Intangible Assets

The following table presents details of the Company’s intangible assets as of June 30, 2026 (in thousands):

The following table presents details of the Company’s intangible assets as of December 31, 2025 (in thousands):

In connection with the sale of the lab products business completed on June 30, 2026 (see Note 1 to these financial statements), the Company derecognized intangible assets, consisting primarily of acquired and developed technology, customer relationships and trademarks. These assets were included in the net assets sold in determining the gain on sale of lab products business. Estimated future amortization expense presented below reflects only intangible assets retained by the Company.

As of June 30, 2026, the Company did not identify any impairment indicators suggesting that the carrying value of the intangible assets was not recoverable.

The following table summarizes the Company’s amortization expense of finite-lived intangible assets (in thousands):

The following table summarizes the Company’s estimated future amortization expense of intangible assets with finite lives as of June 30, 2026 (in thousands):

7. BALANCE SHEET COMPONENTS

Inventory

Inventory consisted of the following (in thousands):

Accrued and other liabilities consisted of the following (in thousands):

8. COMMITMENTS AND CONTINGENCIES

Leases

The Company leases its operating and office facilities for various terms under long-term, non-cancelable operating lease agreements at various locations which include Brisbane, California; West Chester, Pennsylvania; Flowood, Mississippi; Omaha, Nebraska; Fremantle, Australia; and Stockholm, Sweden. Effective June 30, 2026, the Australia and Sweden leases were transferred as part of the sale of the lab products business (see Note 1 to these financial statements). Accordingly, the Company derecognized operating lease right-of-use assets and related operating lease liabilities, which were included in the net assets sold in determining the gain on sale of lab products business.

The Company’s facility leases expire at various dates through 2033. In the normal course of business, it is expected that these leases will be renewed or replaced by leases on other properties.

As of June 30, 2026, the carrying value of the right-of-use asset was $16.2 million. The related current and non-current lease liabilities as of June 30, 2026 were $6.0 million and $13.2 million, respectively. The current and non-current lease liabilities are included in accrued and other liabilities and operating lease liabilities, less current portion, respectively, in the condensed consolidated balance sheets.

The following table summarizes the lease cost for the three and six months ended June 30, 2026 and 2025 (in thousands):

Maturities of operating lease liabilities as of June 30, 2026 are as follows (in thousands):

As of June 30, 2026, the Company’s leases had remaining terms of 0.39 years to 6.59 years, some of which include options to extend the lease term.

The following table summarizes the supplemental cash flow information related to leases for the three and six months ended June 30, 2026 and 2025 (in thousands):

Royalty Commitments

From time to time, the Company enters into license agreements related to certain technologies used in its products. These agreements generally require the Company to pay sales-based royalties on net sales of products covered by the applicable licenses. Royalty rates under these agreements range from the low single digits to the low double digits on sales of products covered by such agreements.

Other Commitments

Effective as of July 2023, the Company entered into a license and collaboration agreement with a private entity, or the Collaboration Agreement, pursuant to which the Company was granted an irrevocable, non-transferable right to commercialize its proprietary software, iBox, for the predictive analysis of post-transplantation kidney allograft loss in the field of transplantation for a period offour years with exclusive rights in the United States. Pursuant to the Collaboration Agreement, the Company will share an agreed-upon percentage of revenue with the private entity, if and when revenues are generated from iBox.

Litigation and Indemnification Obligations

From time to time, the Company may become involved in litigation and other legal actions. The Company estimates the range of liability related to any pending litigation where the amount and range of loss can be estimated. The Company records its best estimate of a loss when the loss is considered probable. Where a liability is probable and there is a range of estimated loss with no best estimate in the range, the Company records a charge equal to at least the minimum estimated liability for a loss contingency when both of the following conditions are met: (i) information available prior to issuance of the condensed consolidated financial statements indicates that it is probable that a liability had been incurred at the date of the condensed consolidated financial statements, and (ii) the range of loss can be reasonably estimated.

Natera

In response to the Company’s false advertising suit filed against Natera Inc., or Natera, on April 10, 2019, Natera filed a counterclaim against the Company on February 18, 2020, in the U.S. District Court for the District of Delaware, or the Court, alleging the Company made false and misleading claims about the performance capabilities of AlloSure. The suit seeks injunctive relief and unspecified monetary relief. On September 30, 2020, Natera requested leave of Court to amend its counterclaims to include additional allegations regarding purportedly false claims the Company made with respect to AlloSure, and the Court granted Natera’s request. The trial commenced on March 7, 2022 and concluded on March 14, 2022, with the jury finding that Natera violated the Lanham Act by falsely advertising the scientific performance of its Prospera transplant test and awarding the Company $44.9 million in damages, comprised of $21.2 million in compensatory damages and $23.7 million in punitive damages. In July 2023, the Court upheld and reaffirmed the March 2022 jury verdict but did not uphold the monetary damages awarded by the jury. In August 2023, the Court issued an injunction prohibiting Natera from making the claims the jury previously found to be false advertising. Both parties appealed. On October 8, 2024, the U.S. Court of Appeals for the Third Circuit remanded the case to make additional findings. On December 23, 2024, the Court issued an order concluding that there was sufficient evidence to support the jury’s findings of falsity oneight advertisements by Natera. Following the decision, the parties submitted additional briefing to the Court. On August 28, 2025, the U.S. Court of Appeals for the Third Circuit issued a decision affirming the District Court’s findings on both liability and damages. On September 25, 2025, the Company filed a petition for panel rehearing or rehearingen banc of the Court’s damages decision. On October 10, 2025, the Third Circuit denied the petition. On February 9, 2026, the Company filed a petition for Supreme Court review. On June 1, 2026, the U.S. Supreme Court denied the Company’s petition for a writ of certiorari, leaving the Third Circuit’s decision in place. The Company did not record a receivable or a gain from the judgment as the amount was not yet realized.

In addition, Natera filed suit against the Company on January 13, 2020, in the Court alleging, among other things, that AlloSure infringes Natera’s U.S. Patent 10,526,658. This case was consolidated with the Company’s patent infringement suit on February 4, 2020. On March 25, 2020, Natera filed an amendment to the suit alleging, among other things, that AlloSure also infringes Natera’s U.S. Patent 10,597,724. The suit seeks a judgment that the Company has infringed Natera’s patents, an order preliminarily and permanently enjoining the Company from any further infringement of such patents and unspecified damages.

On May 13, 2022, Natera filedtwo new complaints alleging that AlloSure infringes Natera’s U.S. Patents 10,655,180 and 11,111,544. Thesetwo cases were consolidated with the patent infringement case on June 15, 2022. On May 17, 2022, Natera agreed to dismiss the case alleging infringement of Natera’s U.S. Patent 10,526,658. On July 6, 2022, the Company moved to dismiss the rest of Natera’s claims. On September 6, 2022, the Company withdrew its motion to dismiss. On December 11, 2023, the Court dismissed the case alleging infringement of Natera’s U.S. Patent 10,597,724. Natera appealed that decision. On March 13, 2024, the Federal Circuit dismissed Natera’s appeal after Natera failed to file its brief and other required papers. On May 30, 2024, Natera filed a second notice of appeal of the dismissal of U.S. Patent 10,597,724. On June 19, 2024, the Company moved to dismiss Natera’s appeal. On September 11, 2024, the Federal Circuit denied that motion.

On January 26, 2024, following afive-day trial, a jury concluded that the Company did not infringe Natera’s U.S. Patent 10,655,180 but did infringe Natera’s U.S. Patent 11,111,544. The jury awarded Natera approximately $96.3 million in damages based on sales of AlloSure and AlloSeq between September 2021 and August 2023. Natera’s U.S. Patent 11,111,544 expires in September 2026. Following trial, Natera moved for an injunction on the Company’s prior AlloSure process and the parties engaged in motion practice regarding the jury’s verdict and discovery as to whether the Company’s current AlloSure process infringes Natera’s U.S. Patent 11,111,544. On September 11, 2024, Natera informed the Court that it was abandoning claims of ongoing infringement. On January 3, 2025, the Court issued an order denying Natera’s motion to set aside the jury’s finding that the Company did not infringe Natera’s U.S. Patent 10,655,180. On February 24, 2025, the Court issued an order concluding that Natera’s U.S. Patents 11,111,544 and 10,655,180 were invalid for lack of written description, thereby overturning the jury verdict. On February 25, 2025, the Court issued an order denying Natera’s motion for an injunction as moot. Natera has appealed the Court’s invalidation of the three patents it asserted against CareDx. The Company intends to defend these matters vigorously, and believes that the Company has good and substantial defenses to the claims alleged in the suits, but there is no guarantee that the Company will prevail.

In addition, Natera’s U.S. Patent 10,597,724 was subject to an ex parte reexamination before the United States Patent and Trademark Office, or PTO. On December 17, 2025, a PTO examiner issued a non-final office action rejecting Claims 1 and 4-6 of the patent. On July 17, 2026, the PTO issued a reexamination certificate finding that Natera had overcome the prior rejections of the 10,597,724 patent, concluding the reexamination proceeding.

Natera’s U.S. Patent 11,111,544 was previously subject to an ex parte reexamination before the PTO. On February 14, 2025, a PTO examiner issued a non-final Office action rejecting Claims 21, 26, and 27 of the patent, the claims CareDx was found to have infringed in the litigation. On July 9, 2025, the PTO issued a reexamination certificate finding that Natera had overcome the prior rejections of the 11,111,544 patent, concluding the reexamination proceeding.

After the jury finding, the Company recognized the damages of $96.3 million as other liabilities on the consolidated balance sheets as of December 31, 2023 as the loss was probable and reasonably estimable at that time. After the Court order overturned the jury finding, the Company derecognized the $96.3 million as of December 31, 2024 as the Company concluded that the loss was no longer probable. It is reasonably possible that the Company may not prevail if Natera continues to pursue the case through appeal, in which case the range of loss could be up to the jury awarded amount of $96.3 million plus potential interest.

United States Department of Justice and United States Securities and Exchange Commission Investigations

As previously disclosed, in 2021, the Company received a civil investigative demand, or CID, from the United States Department of Justice, or DOJ, requesting that the Company produce certain documents in connection with a False Claims Act investigation by the DOJ regarding certain business practices related to the Company’s kidney testing and phlebotomy services, and a subpoena from the SEC in relation to an investigation by the SEC in respect of matters similar to those identified in the CID, as well as certain of the Company’s accounting and public reporting practices. By letter dated September 19, 2023, the Company was notified by the staff of the SEC that the SEC has concluded its investigation as to the Company and does not intend to recommend an enforcement action by the SEC against the Company. The notice was provided under the guidelines set out in the final paragraph of Securities Act Release No. 5310.

In a court document unsealed on October 7, 2024, the DOJ notified the United States District Court for the Eastern District of New York that it was declining to intervene in a qui tam action filed against the Company by a former employee that served as the basis for the CID. Accordingly, CareDx understands that the DOJ has closed its investigation of the Company with no finding of wrongdoing. On April 8, 2025, the private plaintiff who originally filed the qui tam action in 2021, or the Relator, filed an amended complaint on the public docket. On July 16, 2025, the District Court held a conference, at which it set a briefing schedule for a motion to dismiss. On October 17, 2025, Relator filed an opposition to the Company’s motion to dismiss, and on October 31, 2025, the Company filed its reply in further support of its motion to dismiss. The Company denied the allegations in the qui tam action. On April 23, 2026, the Relator filed a notice of voluntary dismissal of the case, the DOJ informed the District Court that it consented to dismissal of the action, and the District Court dismissed the matter.

The Company may receive additional requests for information from the DOJ, the SEC, or other regulatory and governmental agencies regarding similar or related subject matters. Although the Company remains committed to compliance with all applicable laws and regulations, it cannot predict the outcome of, or any other requests or investigations that may arise in the future.

Securities Class Action

On April 22, 2025, the Company reached an agreement-in-principle to resolve a securities class action (the “Securities Class Action”), under which the Company would pay or cause to be paid a settlement payment of approximately $20.25 million. On December 4, 2025, the United States District Court for the Northern District of California provided final approval of the settlement and the Company paid the settlement amount.

Derivative Actions

On February 26, 2025, the plaintiffs in a previously-dismissed consolidated derivative action initiated a new action, captioned Edelman v. Bickerstaff, 3:25-c-02036 (N.D. Cal. filed Feb. 26, 2025), purporting to reinstate their claims and updating and amending their prior complaint (the “Edelman Derivative Action”). The Edelman Derivative Action asserts claims against the Company as nominal defendant and Drs. Seeto and Maag and Mr. Dhingra, and other current and former members of the Company’s Board of Directors alleging, among other things, breaches of fiduciary duty and various state and federal claims based on the factual allegations of the Securities Class Action.

On March 19, 2025, the parties to the Edelman Derivative Action and the Securities Action filed an administrative motion to consider whether the Edelman Derivative Action should be related to the Securities Class Action. On April 1, 2025, the Court granted the motion.

On April 1, 2025, a mediation was held between the parties to the Edelman Derivative Action with the assistance of Phillips ADR Enterprises. No settlement was reached during the mediation.

On April 10, 2025, the Court held an Initial Case Management Conference in the Edelman Derivative Action and thereafter issued a Case Management and Scheduling Order setting a trial date of July 19, 2027, among other deadlines.

On April 21, 2025, plaintiffs in the Edelman Derivative Action submitted a letter motion to the Court seeking to have the Court lift the discovery stay provided by the Private Securities Litigation Reform Act of 1995, 15 U.S.C. § 78u-4 (the “PSLRA”). On April 23, 2025, CareDx submitted a brief in opposition and a hearing was held on June 10, 2025. On June 12, 2025, the Court issued an order denying plaintiffs’ letter motion to lift the PSLRA’s discovery stay.

On March 20, 2024, Edward W. Burns IRA filed a stockholder derivative action complaint in the Court of Chancery of the State of Delaware against the Company as nominal defendant and Dr. Seeto, Mr. Dhingra, Dr. Maag, and other current and former members of the Company’s Board of Directors (the “Burns Derivative Action”). Prior to filing the complaint, the Company produced documents to the plaintiff in response to a books and records inspection demand made pursuant to Section 220 of the Delaware General Corporation Law. The plaintiff purports to incorporate those documents in the complaint. The plaintiff alleges that the individual defendants breached their fiduciary duties as directors and/or officers of the Company and engaged in insider trading, unjust enrichment, waste of corporate assets, and aiding and abetting breaches of fiduciary duty. The suit seeks declaratory relief, recovery of alleged damages sustained by the Company as a result of the alleged violations, equitable relief, restitution, and plaintiff’s costs incurred in the lawsuit, including reasonable attorneys’, accountants’, and experts’ fees, costs, and expenses. On April 11, 2024, the Court entered an order staying the Burns Derivative Action pursuant to a stipulation filed by the parties.

On March 10, 2025, the parties to the Burns Derivative Action filed an amended stipulation and proposed order to continue the stay in that action, which was so-ordered by the Court on the same day. On April 1, 2025, a mediation was held between the parties to the Burns Derivative Action with the assistance of Phillips ADR Enterprises. No settlement was reached. On June 9, 2025, in accordance with the Court’s March 10, 2025 order, the parties submitted a joint status report, informing the Court that subject to Court approval, the Securities Class Action has been settled and that settlement discussions in the Burns and Edelman Derivative Actions were ongoing.

On July 22, 2025, the parties reached an agreement in principle to resolve the case, subject to the negotiation of an agreed-upon attorney fee, and informed the Court. On July 31, 2025, the parties submitted a joint status report, notifying the Court that the parties selected a JAMS mediator to oversee attorney’s fee negotiation.

On September 9, 2025, the parties participated in a mediation session to mediate attorneys’ fees which was unsuccessful. On September 11, 2025, the parties in the Edelman Derivative Action submitted a joint status report notifying the Court that because a request for attorneys’ fees is not evaluated at the preliminary approval stage, plaintiffs intended to file a motion for preliminary approval of the derivative settlement.

On September 26, 2025, the parties entered into a stipulation and agreement of compromise, settlement and release resolving and settling, subject to court approval, both the Edelman and Burns Derivative Actions. The same day, plaintiffs in the Edelman Derivative Action filed their unopposed motion for preliminary approval. The deadline to oppose the motion was October 10,

2025 and no opposition was filed. On October 13, 2025, plaintiffs filed a notice of non-opposition, requesting that the Court enter an order granting the motion for preliminary approval without oral argument.

On October 1, 2025 the parties to the Burns Derivative Action filed a third amended stipulation and proposed order to continue the stay in that action through the pendency of a determination on the proposed settlement in the Edelman Derivative Action. The court entered this stipulated order on October 6, 2025.

On December 9, 2025, the Court issued an order preliminarily approving the parties’ settlement. On March 31, 2026, with the assistance of a JAMS mediator, the parties agreed to a monetary settlement of $0.6 million, inclusive of attorney's fees. On July 3, 2026, the Court entered a final order approving the settlement. On July 10, 2026, the Chancery Court in the Burns Derivative Action dismissed the action.

9. STOCK INCENTIVE PLANS

As of June 30, 2026, the Company had a total of 1,859,952 shares available for grant under its 2016 Inducement Equity Incentive Plan, 2019 Inducement Equity Incentive Plan, 2024 Equity Incentive Plan and 2025 Inducement Equity Incentive Plan.

Stock Options

There wereno stock options granted to employees during the six months ended June 30, 2026.

The following table summarizes stock option activity during the six months ended June 30, 2026:

Restricted Stock Units and Performance Restricted Stock Units

The following table summarizes restricted stock units, or RSUs, and performance restricted stock units, or PSUs, activity during the six months ended June 30, 2026:

The Company granted PSUs under the stock incentive plans. The PSUs granted to employees include financial and operational vesting metrics to be met over a performance period ofthree years. The number of shares expected to vest, based on initial grant date expected performance achievement, underlying outstanding PSUs was 651,927 and 226,183 as of June 30, 2026 and December 31, 2025, respectively.

During the six months ended June 30, 2026, the Company granted 570,634 PSUs (“2026 PSUs”) to employees with an aggregate grant date fair value of $11.7 million at target achievement. The 2026 PSUs provide for a performance period from February 1, 2026 through January 31, 2029 to achieve a defined performance metric. The percentage of 2026 PSUs eligible to vest will be determined based on the metric achieved during the performance period and may range from 0% to 200%. As of June 30, 2026, the achievement of the metric was probable, resulting in expense recognition of $2.5 million and $4.1 million for the three and six months ended June 30, 2026, respectively. Compensation expense is being recognized from the grant date through the final vest date of January 31, 2029. The PSU expense for the three and six months ended June 30, 2025 was $0.6 million and $0.8 million, respectively, related to PSUs granted in prior periods.

2014 Employee Stock Purchase Plan

The Company has an Employee Stock Purchase Plan (the “ESPP”), under which employees can purchase shares of its common stock based on a percentage of their compensation, but not greater than 15% of their respective earnings, provided that an eligible employee’s right to purchase shares of the Company’s common stock may not accrue at a rate which exceeds $25,000 of the fair market value of such shares for each calendar year in which such rights are outstanding. The ESPP has consecutive offering periods of approximatelysix months in length. The purchase price per share must be equal to the lower of 85% of the fair value of the common stock on the first day of the offering period or on the exercise date.

During the offering period in 2026 that ended on June 30, 2026,92,553 shares were purchased pursuant to the ESPP for aggregate proceeds of $1.5 million from the issuance of such shares, which occurred on June 30, 2026.

During the offering period in 2025 that ended on December 31, 2025,61,866 shares were purchased pursuant to the ESPP for aggregate proceeds of $1.0 million from the issuance of such shares, which occurred on January 2, 2026.

Stock-Based Compensation Expense

The following table summarizes stock-based compensation expense relating to employee and non-employee stock-based awards for the three and six months ended June 30, 2026 and 2025, included in the condensed consolidated statements of operations as follows (in thousands):

As of June 30, 2026, unrecognized stock-based compensation expense related to stock options, RSUs, and PSUs was approximately $3.8 million, $37.2 million, and $21.3 million, respectively. The remaining unrecognized compensation cost related to the unvested stock options, RSUs, and PSUs is expected to be recognized over a weighted-average period of 1.84 years,2.19 years, and 2.43 years, respectively.

10. STOCKHOLDERS’ EQUITY

Stock Repurchase Programs

On May 30, 2025, the Company’s Board of Directors authorized a new share repurchase program of up to $50.0 million in shares of its common stock over a period of up totwo years, commencing on May 30, 2025, or the May 2025 Repurchase Program. The May 2025 Repurchase Program may be carried out, subject to approval by a committee of the Company’s Board of Directors, through open market purchases, one or more Rule 10b5-1 trading plans, block trades and in privately negotiated transactions. During the three and six months ended June 30, 2026, the Company purchased an aggregate of 0.6 million shares of its common stock under the May 2025 Repurchase Program for an aggregate purchase price of $12.2 million. As of June 30, 2026, no amounts were available for future share repurchases under the May 2025 Repurchase Program.

Additionally, on April 24, 2026, the Company's Board of Directors authorized the April 2026 Repurchase Program, which provides for the repurchase of up to $100.0 million in shares of the Company's common stock over a period of up totwo years, commencing on April 30, 2026. The April 2026 Repurchase Program may be carried out, subject to approval by a committee of the Company's Board of Directors, through open market purchases, one or more Rule 10b5-1 trading plans, block trades and in privately negotiated transactions. There wereno repurchases made during the three and six months ended June 30, 2026 under the April 2026 Repurchase Program.

Common Stock

Holders of common stock are entitled toone vote per share on all matters to be voted upon by the stockholders of the Company.

The Company has reserved common stock, on an if-converted basis, for issuance as follows:

Preferred Stock

As of June 30, 2026 and December 31, 2025, the Company had 10,000,000 shares of preferred stock authorized with a par value of $0.001 per share. No shares of preferred stock were outstanding as of June 30, 2026 and December 31, 2025.

11. INCOME TAXES

The Company's effective tax rate may vary from the U.S. federal statutory tax rate due to a change in valuation allowance, change in the mix of earnings in tax jurisdictions with different statutory rates, benefits related to tax credits, and the tax impact of non-deductible expenses and other permanent differences between income before income taxes and taxable income.

For each of the three and six months ended June 30, 2026, the Company recorded an income tax expense of $3.9 million. For each of the three and six months ended June 30, 2025, the Company recorded an income tax benefit of $0.1 million. The increase in income tax expense was primarily attributable to the taxable gain recognized on the sale of the Company's lab products business, including CareDx AB, the Company's wholly-owned Swedish subsidiary, together with its related entities, CareDx Lab Solutions (U.S.) and CareDx Pty (Australia), which was completed on June 30, 2026 (see Note 1 to these financial statements). As a result of the sale, the Company recognized a current tax expense of $3.8 million, primarily attributable to the taxable gain on the transaction. These amounts are reflected in income from continuing operations for the period.

The Company assesses the realizability of its net deferred tax assets by evaluating all available evidence, both positive and negative, including (i) cumulative results of operations in recent years, (ii) sources of recent losses, (iii) estimates of future taxable income, and (iv) the length of net operating loss carryforward periods. The Company believes that based on the history of its U.S. losses and other factors, the weight of available evidence indicates that it is more likely than not that it will not be able to realize its U.S. net deferred tax assets. Accordingly, the U.S. net deferred tax assets have been offset by a full valuation allowance.

12. SEGMENT REPORTING

Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the Company’s Chief Operating Decision Maker, or CODM, or decision making group, whose function is to allocate resources to and assess the performance of the operating segments. The Company has identified its President and Chief Executive Officer as the CODM. In determining its reportable segments, the Company considered the markets and types of customers served and the products or services provided in those markets. The Company has determined that it hasone operating segment and, therefore, one reportable segment.

Revenue by geographic regions are based upon the customers’ ship-to address for product revenue, the region of testing for testing services revenue and the region where the performance obligation is satisfied for patient and digital solutions revenue. The following table summarizes reportable revenue by geographic regions (in thousands):

The following table summarizes long-lived assets, consisting of property and equipment, net, by geographic regions (in thousands):

The CODM assesses the Company’s performance by using net income (loss). The CODM uses net income (loss) predominately in the annual budget and forecasting process. The Company’s objective in making resource allocation decisions is to optimize the consolidated financial results. The CODM considers budget-to-actual variances on a quarterly basis for the profit measure when making decisions. The CODM organizes the business and leaders functionally. The CODM assesses performance and resources are allocated to functions which utilize those allocations across the business’s testing services, products and digital solutions offerings.

In connection with the sale of the lab products business completed on June 30, 2026 (see Note 1 to these financial statements), the Company derecognized property and equipment located in Stockholm, Sweden and Fremantle, Australia, which was included in the net assets sold in determining the gain on sale of lab products business.

The following table summarizes the reconciliation to net income (loss) (in thousands):

1 Cost of testing services, cost of product and cost of patient and digital solutions include depreciation expense.

2 Business development and portfolio optimization expense primarily includes legal, consulting, financial advisory, due diligence, and other transaction-related costs incurred in connection with business development activities, including the sale of lab products business and the acquisition of Naveris, Inc.

3 Other segment items include the following: acquisition costs, software expenses, corporate expenses, rent and maintenance expense, travel and event related expense, income tax (expense) benefit and other expenses (income).

13. SUBSEQUENT EVENTS

Acquisition of Naveris, Inc.

On July 1, 2026, the Company and Nautilus Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary of the Company (“Merger Sub”), completed the previously announced acquisition of Naveris, Inc., a Delaware corporation (“Naveris”), pursuant to the Agreement and Plan of Merger (the “Merger Agreement”) by and among the Company, Naveris, Merger Sub, and Shareholder Representative Services LLC, solely in its capacity as the representative of the securityholders of Naveris. Pursuant to, and subject to the terms and conditions set forth in, the Merger Agreement, Merger Sub merged with and into Naveris, with Naveris continuing as the surviving corporation and a wholly owned subsidiary of the Company (the “Naveris Transaction”). As a result, the Company acquired 100% of the outstanding equity interests of Naveris.

The Company acquired Naveris to strengthen its position as a precision medicine diagnostics company focused on transplant, specialty oncology, and cell therapy.

The amount paid by the Company consisted of $161.8 million in cash, subject to certain customary adjustments specified in the Merger Agreement for Naveris’ cash, indebtedness, transaction expenses and net working capital. Additionally, under the terms and subject to the conditions set forth in the Merger Agreement, Naveris’ equity holders will be eligible to receive up to $100.0 million in additional cash consideration contingent upon the achievement of specified revenue-based milestones in respect of fiscal years ending December 31, 2026 and December 31, 2027.

Since the Naveris Transaction was completed on July 1, 2026, shortly before the date these unaudited condensed consolidated financial statements were issued, the Company has not yet finalized the fair value assessment of the assets acquired and liabilities assumed, and the initial accounting for the transaction remains in process.