CAIHIGH SIGNALFINANCIAL10-Q

CAI demonstrated exceptional financial turnaround with revenue surging 72% to $519M and operating cash flow swinging dramatically from -$24M to +$38M, marking a significant inflection point in business performance.

This represents a material positive development showing CAI has achieved substantial scale and operational efficiency improvements. The dramatic operating cash flow turnaround from deeply negative to strongly positive, combined with 72% revenue growth, suggests the company has reached an inflection point in its business model execution and cash generation capability.

Comparing 2025-11-05 vs 2025-08-12View on EDGAR →
FINANCIAL ANALYSIS

CAI delivered outstanding financial performance with revenue jumping 72% to $519M while simultaneously achieving a remarkable $62M improvement in operating cash flow from -$24M to +$38M. Operating losses narrowed significantly from -$76M to -$43M despite increased R&D investment of $70M, demonstrating strong operating leverage, while the sharp decline in accounts receivable from $51M to $27M indicates improved collections and cash conversion. This combination of explosive revenue growth, positive cash generation, and improved working capital management signals a fundamental transformation in CAI's financial profile and business momentum.

FINANCIAL STATEMENT CHANGES
Operating Cash Flow
Cash Flow
+259.6%
-$24.1M$38.4M

Operating cash flow surged 259.6% — exceptional cash generation, highest quality earnings signal.

Capital Expenditure
Cash Flow
+174.1%
$4.1M$11.2M

Capital expenditure jumped 174.1% — major investment cycle underway; assess returns on deployment.

Revenue
P&L
+71.7%
$302.3M$519.1M

Strong top-line growth of 71.7% — accelerating demand or successful expansion into new markets.

Accounts Receivable
Balance Sheet
-47.5%
$50.9M$26.7M

Receivables declined — improved collection efficiency or conservative revenue recognition.

R&D Expense
P&L
+44.9%
$48.1M$69.7M

R&D investment increased 44.9% — signals commitment to future product development, though near-term margin impact.

Operating Income
P&L
+43%
-$75.9M-$43.3M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Net Income
P&L
+14%
-$174.4M-$150.0M

Net income grew 14% — bottom-line growth signals improving overall business health.

LANGUAGE CHANGES
NEW — 2025-11-05
PRIOR — 2025-08-12
ADDED
(the Company or Caris ) is a patient-centric, next-generation artificial intelligence ( AI ) TechBio company and precision medicine pioneer.
The condensed consolidated balance sheet as of December 31, 2024 included herein was derived from the audited financial statements as of that date and should be read in conjunction with the audited annual consolidated financial statements.
As of September 30, 2025, no shares of preferred stock are outstanding.
The vested restricted stock units were settled in August 2025.
Revenue Recognition The Company recognizes revenue under ASC Topic 606, Revenue from Contracts with Customers ( ASC 606 ).
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REMOVED
Exhibits 125 Signatures 129 Table of Cont e n t s Special Note Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q (this Quarterly Report ) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws.
1 Table of Cont e n t s Part I - Financial Information Item 1.
(the Company or Caris ) is a patient-centric, next-generation artificial intelligence ("AI") TechBio company and precision medicine pioneer.
The condensed consolidated balance sheet as of December 31, 2024 included herein was derived from the audited financial statements as of that date.
Additionally, the gross proceeds of $ 167.7 million, less issuance costs of $ 8.3 million, were allocated as follows: $ 27.9 million to the 2025 Convertible Notes, 7 Table of Cont e n t s $ 10.3 million to the 2025 Warrants, $ 87.6 million to the Series E Preferred Stock, and $ 33.6 million to the Series F Preferred Stock.
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