Caris Life Sciences, Inc.

Good afternoon, everyone, and welcome to the Keras Life Sciences Q1 2026 Earnings Call. My name is Steven, and I will be your coordinator today. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand it over to Russ Denton at Karis. Please go ahead. Thank you.

Earlier today, Karis Life Sciences released financial results for the quarter ended March 31, 2026. Joining from Karis today are David Dean-Halbert, our founder, chairman, and CEO. David Spetzler, our president, Brian Brilli, our vice chairman and EVP, Bobby Hill, our chief commercial officer, and Luke Power, our CFO. Before we begin, I'd like to remind you that during this call, management will make forward-looking statements within the meeting of federal securities laws. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated. These risks are discussed in our SEC filings, including our annual report on Form 10-K filed with the SEC. Except as required by law, CARES disclaims any intention or obligation to update or revise financial projections and forward-looking statements, whether because of new information, future events, or otherwise. The information discussed in this conference call is accurate only as of the live broadcast. This call will also include a discussion of non-GAAP financial measures, which are adjusted to exclude certain specified items. The reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures are available in the press release CARES issued today. A copy of today's presentation materials can be found on our investor relations website. I will now turn the call over to Brian. Thanks, Ross, and thank you all for joining our first quarter of 2026 earnings call.

This is a strong start to the year, and we're pleased to report continued growth, profitability, and cash generation, which will continue to support our investment strategy focused on MSED launch, the broader product pipeline, and commercial platform expansion. As illustrated on slide three, our platform continues to expand across technology, scale, and commercial breadth. We're now supporting more than 6,100 ordering oncologists with approximately 70% of orders coming through our EHR and portal channels. In the first quarter, we completed 52,800 cases, up 15% year over year. We're very excited about the initiatives that our CCO, Bobby Hill, is driving, and we began to see the benefits of these in February and March. With this clinical activity, our data set has surpassed 1.07 million profile cases, including more than 677,000 whole exomes, 728,000 whole transcriptomes, and roughly 790,000 matched profiles. We also reached another important milestone with the recent addition of the 100th Precision Oncology Alliance member, UC San Francisco. We've launched two exciting products, CARES ChromaSeq and CARES MiCLARITY. ChromaSeq is a therapy selection assay for hematological cancers which expands the breadth of our offerings and features a cutting-edge whole-genome technology. ChromaSeq was launched on April 1st. In addition, we launched CARES-MI Clarity, an exciting prognostic test designed to deliver insight into both early and late-distance recurrence risk for breast cancer by digital pathology. Finally, and importantly, we're making progress with CARES Detect, plans to add additional channel partners. Our philosophy is a long-term strategic orientation to develop the best offerings on the market and to pursue this innovation while generating profitable growth and maintaining financial strength. We had a strong first quarter with total revenues increasing 79% year-over-year to $216 million. As demonstrated on slide 4, this result was driven primarily by strong performance from clinical profiling. molecular profiling services revenues increased to $211 million in the first quarter, representing an increase of 85% year-over-year. In summary, across the board, we had a very productive first quarter, illustrated by the quarter highlights on slide 5. This strong revenue performance, combined with the operating leverage inherent in our business model, has produced continued positive financial results while we ramp up investments. including revenue growth of 79%, which was driven by volume growth of 15% and a 61% increase in clinical ASP. This revenue growth has led to improved gross margins of 65% on a GAAP basis, up from 47% in the first quarter last year. We've invested significantly this quarter while maintaining financial discipline. This approach has produced positive adjusted EBITDA of $26 million, as well as positive free cash flow of $22.5 million. This is our fourth straight quarter of positive adjusted EBITDA and positive free cash flow and provides us with valuable strategic flexibility for ongoing investment in our tech platform for new products, as well as the ability to develop new channels, such as MSET. In addition, our balance sheet continues to strengthen with cash on hand growing to slightly above $825 million, an increase of $23.4 million in the quarter. Finally, as a result of this profitability profile, we were able to attractively refinance our credit facility. The new $400 million debt facility, led by Blue Owl and Blackstone, offers many advantages. Lower costs, saving approximately $6 million in annual interest, an extension of the maturity date three years from January 2028 to April 2031, and a committed delayed draw term loan of $300 million on the same terms for any potential strategic acquisitions. We believe that our financial performance gives us unique strategic flexibility, which supported our investment program in the first quarter. We're continuing to invest in our product pipeline, importantly in our MSED business, which Dr. Spessler will describe in detail, as well as the expansion plan for our sales organization. We believe that our commercial channel is highly differentiated and has many strategic edges. Bobby Hill is bringing enhanced discipline and alignment to the overall platform. We're committing new resources to expand the commercial footprint with important hires across the platform, expanding the number of territories covered, and building product-focused sales teams. As stated previously, our strategy is to maintain financial discipline through a strong balance sheet and profitability. These financial pillars of strength will allow us to realize our mission of making precision medicine a reality to benefit patients and support physicians. I'll now throw the presentation over to Bobby to provide an update and our commercial business and related strategic initiatives. Bobby?