CDNA

Interest Rate Risk We are exposed to market risks in the ordinary course of our business. We had cash and cash equivalents of $373.6 million at June 30, 2026, which consisted of bank deposits. However, we have not been exposed to, nor do we anticipate being exposed to, material risks due to changes in interest rates. A hypothetical 100 basis point increase or decrease in interest rates during any of the periods presented would have an approximate impact of $3.7 million on our unaudited condensed consolidated balance sheets. Foreign Currency Exchange Risk We had operations in Sweden and sell to other countries throughout the world. As a result, we were subject to foreign currency risks, including transacting in foreign currencies, investment in a foreign entity, as well as assets and debts denominated in foreign currencies. Our testing services revenue is primarily denominated in U.S. dollars. Our product revenue was denominated primarily in U.S. dollars and the Euro. Our patient and digital solutions revenue is primarily denominated in U.S. dollars. Consequently, our revenue denominated in foreign currency was subject to foreign currency exchange risk. A portion of our operating expenses were incurred outside of the U.S. and were denominated in Swedish Krona, Australian Dollar and the Euro, which were also subject to fluctuations due to changes in foreign currency exchange rates. Following the sale of our lab products business, our exposure to foreign currency exchange risk is not significant. We do not enter into hedging transactions, and we do not believe a hypothetical 10% change in foreign currency exchange rates would have a material effect on our financial condition or results of operations.

The information set forth in Note 8, Commitments and Contingencies, under the caption “Litigation and Indemnification Obligations”, to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q is incorporated herein by reference.

• A Final LCD effective August 30, 2026 affirms Medicare coverage for kidney, heart, and lung transplant tests but introduces defined coverage criteria that could change utilization or payment.
• Medicare revenue from AlloSure and AlloMap tests represented 30% of total revenue in Q2 2026, and a new PAMA private-payer rate reporting period begins in 2027.
• The Naveris acquisition closed July 1, 2026, expanding the business into HPV-driven cancer testing, a market with different clinical, reimbursement, and competitive dynamics.
• A dispute with a significant Medicare Advantage payer involves claims the company believes were improperly denied, underpaid, or recouped, with the payer asserting additional recoupment rights.
• The company reported net income of $110.6 million for Q2 2026 but has a $505.4 million accumulated deficit and may not sustain profitability.
• Competitors including Natera, Eurofins, and Thermo Fisher are commercializing molecular tests for post-transplant surveillance, and new entrants with kitted products are emerging.