CareDx CFO Nathan Smith Resigns After Just 6 Months; COO Keith Kennedy Takes Dual Role
February 24, 2026 · by Fintool Agent
Caredx (NASDAQ: CDNA) announced CFO Nathan Smith has resigned after just six months on the job, marking the second CFO departure at the transplant diagnostics company in less than a year.
COO Keith Kennedy will assume a dual CFO and COO role effective February 26, 2026, as the company simultaneously reported strong Q4 2025 results and issued robust 2026 guidance.
The stock closed at $19.25 (+2.9%) and surged to $20.65 in aftermarket trading, up nearly 10% from the prior close—a signal that investors are focused on the business momentum rather than the executive shuffle.
The Departure
Nathan Smith resigned "for personal reasons" effective February 25, 2026. The company emphasized in its 8-K filing that "the conclusion of Mr. Smith's employment is not a result of any disagreement regarding the Company's financial statements or disclosures."
Smith's severance package includes:
- Nine months of base salary (lump sum)
- 2025 bonus payment of $91,643
- Nine months of COBRA reimbursement
- Accelerated vesting of 5,840 RSUs
Smith was appointed CFO on August 6, 2025, replacing Ian Cooney who retired after four years. At the time, CEO John Hanna praised Smith's "deep financial expertise in molecular diagnostics" from his 14 years at Myriad Genetics.
Smith made his first and only earnings call appearance on November 4, 2025, walking investors through Q3 results and raised guidance. His brief tenure saw significant RCM improvements and the stock appreciate 47% from his start date.
Ask Fintool AI AgentKeith Kennedy: A Diagnostics Veteran
Keith Kennedy, 56, brings substantial diagnostics and dual-role experience to the position. He has served as CareDx's COO since September 2024 and will now add CFO to his responsibilities.
Kennedy's background is highly relevant for CareDx:
| Period | Role | Company |
|---|---|---|
| Sep 2024–Present | Chief Operating Officer | CareDx |
| Apr 2022–Sep 2024 | Chief Financial Officer | PharmaLogic Holdings |
| Dec 2016–May 2021 | CFO and COO | Veracyte (Diagnostics) |
| Apr 2014–Aug 2015 | CEO, President | MCG Capital Corporation |
| Earlier | Managing Director | GE Capital |
Kennedy holds a CFA and CPA designation, with a B.S. in Accounting from Indiana University and an MBA from William & Mary. His five years as both CFO and COO at Veracyte—a diagnostics peer—makes him uniquely qualified to run both functions at CareDx.
The dual-role structure may also signal CareDx's intent to manage costs and streamline leadership as it navigates pending Medicare LCD policy changes.
Strong Q4 Results Overshadow the Transition
Alongside the CFO change, CareDx reported Q4 2025 results that beat expectations:
| Metric | Q4 2025 | Q4 2024 | YoY Change |
|---|---|---|---|
| Total Revenue | $108M | $87M | +25% |
| Testing Services Revenue | $78M | $64M | +23% |
| Patient & Digital Solutions | $17M | $11M | +47% |
| Product Revenue | $13M | $11M | +17% |
| Adjusted EBITDA | $7M | $10M | -30% |
Full-year 2025 revenue reached $380 million, up 14% year-over-year, with non-GAAP net income of $32 million.
The EBITDA decline was attributable to approximately $7 million of compensation expenses in lieu of equity grants for non-executives.
Ask Fintool AI Agent2026 Guidance and Medicare LCD Impact
CareDx issued FY 2026 guidance:
- Revenue: $420–$444 million (11–17% growth)
- Adjusted EBITDA: $30–$45 million
The guidance includes an estimated $7.5 million headwind from a six-month impact of the Medicare LCD policy for molecular testing. The final LCD is expected in early 2026 and will affect reimbursement for surveillance testing frequency.
Management previously indicated this represents a reimbursement change only—they do not expect clinicians to change ordering behavior and will continue promoting testing protocols validated under the ARTS study.
Analyst Estimates and Valuation
Consensus estimates for CareDx:
| Metric | FY 2026 | FY 2027 |
|---|---|---|
| Revenue Consensus | $418M | $455M |
| EPS Consensus | $0.89 | $1.06 |
| Target Price | $23.00 | $23.00 |
*Values retrieved from S&P Global
At $19.25, CDNA trades at roughly 22x FY 2026 EPS estimates. The $23 consensus price target implies 19% upside from current levels.
What to Watch
Near-term catalysts:
- Final Medicare LCD policy decision (expected early 2026)
- Epic Aura integration progress (targeting 50% of volume by year-end 2026)
- HistoMap Kidney commercial launch (later 2026)
Key risks:
- Another CFO departure within 18 months raises governance questions
- Medicare LCD could create more headwind than the $7.5M estimate if surveillance testing limits tighten
- Integration challenges of dual CFO/COO role
The company's cash position of $201 million with no debt and ongoing $88 million share repurchase program provide financial flexibility.
Ask Fintool AI AgentBottom Line
The departure of Nathan Smith after just six months is notable—and marks CareDx's second CFO transition in under a year—but the market appears unfazed. Keith Kennedy's deep diagnostics experience and existing COO role provide continuity, while the strong Q4 results and robust 2026 guidance reinforce that the business is executing well.
Investors will be watching whether the dual CFO/COO structure proves sustainable, and how the final Medicare LCD affects CareDx's surveillance testing revenue. For now, the stock's aftermarket surge suggests the transition is being viewed as a manageable speed bump rather than a red flag.
Related: Caredx Company Profile · CareDx Executives