CSTLCASTLE BIOSCIENCES INC
Services-Medical Laboratories
- Revenue
- $344M
- 3.7% YoY
- Operating margin
- -12.4%
- 576% YoY
- EBITDA
- −$2M
- 108% YoY
- Market cap
- $1.1B
- Employees
- 883
- $390K revenue each
- Net debt / EBITDA
- —
- −$52M net debt
- AI in 10-K
- 1.2
- mentions per 10K words
Takeover score 4 of 13
Fixable underperformance 2 of 7
- TSR below peersYes5 of 5 years3+ of last 5 years
- High CEO pay despite TSRNo$7M medianMedian CEO pay ≥ $15M while TSR trails
- Earnings not backed by cashNo—Cash flow under 80% of net income
- Dilutive SBCYes13% of revenueOver 10% of revenue
- Payouts exceed cash flowNo0% of cash flowBuybacks + dividends over cash flow
- Goodwill-heavyNo2% of assetsOver 40% of assets
- Shareholder dissentNo86% lowest supportAny vote under 80% support
Buyer economics 1 of 4
- Low revenue per employeeNo$390K · 69th pctBottom quartile of its SIC industry
- Quiet on AINo1.2 per 10K words · 39th pctBottom quartile of AI mentions in 10-Ks
- Net cashNo—More cash than debt, positive EBITDA
- Buyout-sizedYes$1.1B market capMarket cap $500M–$5B
Catalysts 1 of 2
- Active 13DNo0 filingsActive-intent 13D in 18 months
- Net insider sellingYes−$19M netNet sales over $10M in 12 months
Financials
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|---|---|
| Revenue | $94M | $137M | $220M | $332M | $344M | 3.7% |
| Operating income | −$40M | −$73M | −$68M | $9M | −$43M | 594% |
| Net income | −$31M | −$67M | −$57M | $18M | −$24M | 232% |
| Operating cash flow | −$19M | −$42M | −$6M | $65M | $64M | 0.8% |
| Capex | $3M | $6M | $14M | $28M | $36M | 27% |
| Stock-based comp | $22M | $36M | $51M | $50M | $46M | 8.8% |
Deal filings
None.
13D filers
| Filed | Filer | Form | Stake | Intent |
|---|---|---|---|---|
| Oct 9, 2020 | Sofinnova HealthQuest Partners, L.P. | SC 13D/A | 5.0% | Active |
| Jul 14, 2020 | Sofinnova HealthQuest Partners, L.P. | SC 13D/A | 6.0% | Active |
| Jun 24, 2020 | Sofinnova HealthQuest Partners, L.P. | SC 13D/A | 7.2% | Active |
| May 14, 2020 | Sofinnova HealthQuest Partners, L.P. | SC 13D/A | 8.3% | Active |
| Aug 5, 2019 | Sofinnova HealthQuest Partners, L.P. | SC 13D | 11.0% | Passive |
Insider trading
- Open-market buys, 12 mo
- $0 · 0
- Open-market sells, 12 mo
- $19M · 218
- Net
- −$19M
Pay vs performance
| Year | CEO total comp | Comp actually paid | TSR (indexed) | Peer TSR |
|---|---|---|---|---|
| FY2025 | $7M | $13M | 58 | 125 |
| FY2024 | $7M | $10M | 40 | 93 |
| FY2023 | $2M | $780K | 32 | 94 |
| FY2022 | $8M | $3M | 35 | 90 |
| FY2021 | $7M | $2M | 64 | 100 |