Caris Life Sciences, Inc. (CAI)

Price$24.76Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because strong growth is already carrying a demanding valuation.

Using the observed market price and 282.6 million recent shares, equity value is roughly $7.3 billion; subtracting about $300 million of net cash gives an operating-business value near $7.0 billion. That is about 7.1 times last-12-month revenue, 46 times operating profit, and 59 times free cash flow, meaning cash left after running and investing in the business. A 10% required-return scenario roughly fits today’s value only if revenue compounds near 20% for five years, cash-flow margins approach 20%, and investors still pay about 20 times that cash flow. That is achievable, but not conservative.

Big pictureRevenue growth is exceptional, but cash generation is still too young to call durable.

Revenue nearly doubled in 2025 to $812 million, then rose 59% year over year in the first half of 2026. Q2 revenue reached $263.7 million, up 45%, while profit from operations turned positive at $26.9 million. Operating cash flow was $61.4 million in the first half, versus a $24.1 million outflow a year earlier; free cash flow was $28.9 million versus negative $28.1 million. Oncology testing demand is not very economically cyclical, but pharma research revenue fell 38% in Q2, showing that smaller channel can be lumpy.

Business strengthCaris has a strong cash cushion, improving margins, and meaningful pricing power in its core testing business.

At June 30, cash and equivalents were about $693 million against $393 million of debt, leaving roughly $300 million of net cash; current assets were more than five times current liabilities. Q2 gross margin, the share of revenue left after direct service costs, reached 68%, up five percentage points, as molecular profiling revenue grew 55% from more cases and better reimbursement. The weak spot is concentration: one payer represented 37.3% of Q2 revenue, and Medicare-covered cases were 38.9% of molecular profiling revenue. The $400 million term loan also carried an 8.7% rate.

What could change the storyFaster adoption could justify the premium, while slower reimbursement gains or dilution would quickly weaken it.

The bull case is that Caris Detect and newer tests expand volumes while 68% gross margins convert growth into sustained cash. Management raised 2026 revenue guidance to $1.03-$1.04 billion, and Q2 cases rose 18%. The bear case is that today’s valuation leaves little room for growth to fade: a 15% five-year growth path with 20% cash-flow margins by year five falls short in a simple valuation model. Capital allocation is mixed: Caris bought back 1 million shares around $17.91 in June, but 8.16 million unvested stock awards remain, with $142.7 million of future compensation expense not yet recognized.

AI: News

Q2 beat and guidance raiseCaris beat revenue expectations, raised annual guidance, and the shares jumped sharply after the release.

On August 5, Caris reported Q2 revenue of $263.7 million, 45% above the prior year and about 11% above Wall Street’s estimate, then raised 2026 revenue guidance to $1.03-$1.04 billion. Q2 gross margin reached 68% and free cash flow was positive. The shares rose about 15% after hours and finished the next regular session about 22% higher. The reaction is consistent with investors rewarding faster volume growth, better reimbursement, and stronger profit conversion.

Caris Detect launchesCaris launched a multi-cancer blood test that could open a much larger preventive-testing market.

On July 1, Caris commercially launched Caris Detect, which uses whole-genome and whole-transcriptome sequencing plus artificial intelligence to look for signals from multiple cancers in blood. The strategic importance is that Caris can move beyond treatment selection into earlier detection, greatly expanding the potential testing pool if doctors and payers adopt it. Shares finished about 5% higher that day, although timing alone does not prove the launch caused the move. Commercial uptake and reimbursement remain the key value tests.

Share buyback authorizedCaris authorized a large buyback after a steep decline, signaling confidence but using cash aggressively.

On June 8, the board authorized up to $100 million of share repurchases, then bought 1 million shares in June for about $17.9 million. The authorization equaled roughly 2% of the company’s market value when announced. By quarter-end, about $82.1 million remained available. The move can support per-share value when stock is cheap, but it competes with product investment and debt service; the current market level is now more than 40% above Caris’s average June repurchase price.

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Revenue

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2023

2024

2025

Net income

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2023

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Free cash flow

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Total cash / debt

CashTotal debt

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Financial statements

	2025	2024	2023	2022
Revenue	$812.0M	$412.3M	$306.1M	$258.5M
Research & development	$101.6M	$113.9M	$116.9M	$101.3M
Operating expenses	$766.9M	$669.4M	$625.7M	$395.8M
Operating income	$45.1M	−$257.1M	−$319.6M	−$315.8M
Operating margin	5.56%	−62.37%	−104.38%	−122.16%
EBITDA	$67.7M	−$208.2M	−$270.6M	−$245.9M
EBITDA margin	8.34%	−50.50%	−88.38%	−95.13%
Net income	−$68.1M	−$281.9M	−$341.4M	−$320.8M
Net profit margin	−8.38%	−68.38%	−111.53%	−124.12%
Basic EPSper basic share	-$3.22	-$10.66	-$13.24	-$1.57
Diluted EPSper diluted share	-$3.22	-$10.66	-$13.24	-$1.57

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈43.74%of listed shares

HALBERT DAVID D123.6M shares · May 15, 2026

View holders

Top 20 reported holders of CAI
Holder	% owned
HALBERT DAVID D	≈43.74%123.6M shares
FMR LLC	10.94%30.92M shares
TSSP Sub-Fund HoldCo LLC / Waxman Alan	≈8.63%24.39M shares
ADAPT I Ltd. / Carisome I, L.P.	≈6.00%16.94M shares
J. H. Whitney Equity Partners VI, LLC	3.98%11.26M shares
CASTLEMAN PETER M	≈3.68%10.4M shares
COATUE MANAGEMENT LLC	3.48%9.82M shares
BRAIDWELL LP	2.92%8.26M shares
Sixth Street Partners Management Company, L.P.	2.59%7.33M shares
PointState Capital LP	2.42%6.83M shares
JPMORGAN CHASE & CO	2.32%6.56M shares
BlackRock, Inc.	1.96%5.54M shares
T. Rowe Price Investment Management, Inc.	1.80%5.08M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	1.71%4.84M shares
VANGUARD CAPITAL MANAGEMENT LLC	1.51%4.28M shares
LOS ANGELES CAPITAL MANAGEMENT LLC	1.40%3.96M shares
NEUBERGER BERMAN GROUP LLC	1.27%3.59M shares
ORBIMED ADVISORS LLC	0.99%2.81M shares
BNP PARIBAS FINANCIAL MARKETS	0.84%2.37M shares
MILLENNIUM MANAGEMENT LLC	0.78%2.2M shares

Percentages use 282.58M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Reported positions exceed 100% in total, so the circle shows the selected holder only.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys5$1.40M disclosed value

Sells (SEC code S)2$1.65M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 11, 2026Form 4	Vacirca Jeff LDirector	BuyCommon Stock	31.1K	$16.15	$501.5K	49.7K
Dec 11, 2025Form 4 · 10b5-1	Power Luke ThomasSee Remarks	SellCommon Stock	1.4K	$27.16	$38.0K	99.6K
Dec 11, 2025Form 4 · 10b5-1	Power Luke ThomasSee Remarks	SellCommon Stock	60.9K	$26.56	$1.62M	101.0K
Nov 7, 2025Form 4	Spetzler David BaxleyPresident	BuyCommon Stock	400	$23.85	$9.5K	460.8K
Nov 7, 2025Form 4	Denton John RusselSee Remarks	BuyCommon Stock · indirect	4.2K	$24.09	$100.8K	9.2K

Review ownership filings at SEC.gov ↗

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Caris Life Sciences, Inc. (CAI)

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