Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 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.
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