EX-99.1 2 tm2529763d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

Natera Reports Third Quarter 2025 Financial Results

 

 

AUSTIN, Texas, November 6, 2025 / Business Wire/ — Natera, Inc. (NASDAQ:  NTRA), a global leader in cell-free DNA and precision medicine, today reported its financial results for the third quarter ended September 30, 2025.

  

Recent Financial Highlights

 

·Generated total revenues of $592.2 million in the third quarter of 2025, compared to $439.8 million in the third quarter of 2024, an increase of 34.7%. Product revenues grew 35.3% over the same period.

 

·Generated a gross margin percentage2 of 64.9% in the third quarter of 2025, compared to a gross margin percentage2 of 61.8% in the third quarter of 2024.

 

·Processed approximately 893,600 tests in the third quarter of 2025, compared to approximately 775,800 tests in the third quarter of 2024, an increase of 15.2%.

 

·Performed approximately 211,000 oncology tests in the third quarter of 2025, compared to approximately 137,100 in the third quarter of 2024, an increase of 53.9%. This included record sequential growth of approximately 21,500 clinical molecular residual disease (MRD) units compared to the second quarter of 2025.

 

·Achieved positive cash flow of approximately $26.4 million1 in the third quarter of 2025.

 

·Raising 2025 annual revenue guidance by $160 million at the midpoint, from $2.02 billion - $2.10 billion to $2.18 billion - $2.26 billion.

 

“Results in the third quarter were excellent, including our largest increase in quarterly clinical MRD units to date,” said Steve Chapman, chief executive officer of Natera. “We continue to advance innovation across the portfolio, with successful read-outs for Signatera™, positive new results for our early cancer detection program, and the announcement of an expanded panel for our Fetal Focus™ single-gene noninvasive prenatal test.”

 

Third Quarter Ended September 30, 2025 Financial Results

 

Total revenues were $592.2 million in the third quarter of 2025 compared to $439.8 million in the third quarter of 2024, an increase of 34.7%. The increase in total revenues was driven primarily by a 35.3% increase in product revenues, which were $590.2 million in the third quarter of 2025 compared to $436.1 million in the third quarter of 2024. The increase in product revenues was primarily driven by an increase in volume and average selling price improvements, as well as cash receipts that were collected during the quarter in excess of initial revenue estimates for tests delivered in prior quarters.

 

Natera processed approximately 893,600 tests in the third quarter of 2025, including approximately 879,700 tests accessioned in its laboratory, compared to approximately 775,800 tests processed, including approximately 760,700 tests accessioned in its laboratory, in the third quarter of 2024, an increase of 15.2% from the prior period.

 

In the third quarter of 2025, Natera recognized revenue on approximately 832,900 tests for which results were reported to customers in the period (tests reported), including approximately 819,900 tests reported from its laboratory, compared to approximately 750,100 tests reported, including approximately 735,900 tests reported from its laboratory, in the third quarter of 2024, an increase of 11.0% from the prior period.

 

Gross margin2 for the three months ended September 30, 2025 and 2024 was $384.4 million and $271.7 million, respectively, representing a gross margin percentage2 of 64.9% and 61.8%, respectively. Natera had higher gross margin2 in the third quarter of 2025 primarily as a result of higher revenues, continued progress in reducing cost of revenues associated with tests processed, as well as incremental cash receipts during the quarter in excess of initial revenue estimates for tests delivered in the prior period. Total operating expenses, representing research and development expenses and selling, general and administrative expenses, for the third quarter of 2025 were $482.0 million, compared to $311.1 million in the same period of the prior year, an increase of 54.9%. The increase was primarily driven by salary and related compensation expenditures, including stock-based compensation expense, to support new product offerings as well as increases in consulting and legal expenses.

 

 

 

 

Loss from operations for the third quarter of 2025 was $97.6 million compared to $39.3 million for the same period of the prior year.

 

Natera reported a net loss for the third quarter of 2025 of $87.5 million, or ($ 0.64 ) per diluted share, compared to a net loss of $31.6 million, or ($ 0.26 ) per diluted share, for the same period in 2024. Weighted average shares outstanding were approximately 137.2 million in the third quarter of 2025 compared to 123.8 million in the third quarter of the prior year.

 

At September 30, 2025, Natera held approximately $1,042.4 million in cash, cash equivalents, short-term investments and restricted cash, compared to $968.3 million as of December 31, 2024. As of September 30, 2025, Natera had a total outstanding debt balance of $80.3 million including accrued interest under its line of credit with UBS at a variable interest rate of 30-day SOFR plus 50 bps.

 

Financial Outlook

 

Natera anticipates 2025 total revenue of $2.18 billion - $2.26 billion; 2025 gross margin2 to be approximately 62% to 64% of revenues; selling, general and administrative costs to be approximately $1.08 billion to $1.18 billion; research and development costs to be approximately $575 million to $625 million; and net cash inflow to be approximately $100 million3.

 

Test Volume Summary

 

Unit  Q3 2025   Q3 2024  Definition
Tests processed     893,600   775,800  Tests accessioned in our laboratory plus units processed outside of our laboratory
Tests accessioned     879,700   760,700  Test accessioned in our laboratory
Tests reported     832,900   750,100  Total tests reported
Tests reported in our laboratory     819,900   735,900  Total tests reported less units reported outside of our laboratory

 

About Natera

 

Natera™ is a global leader in cell-free DNA and precision medicine, dedicated to oncology, women’s health, and organ health. We aim to make personalized genetic testing and diagnostics part of the standard of care to protect health and enable earlier, more targeted interventions that help lead to longer, healthier lives. Natera’s tests are validated by more than 325 peer-reviewed publications that demonstrate high accuracy. Natera operates ISO 13485-certified and CAP-accredited laboratories certified under the Clinical Laboratory Improvement Amendments (CLIA) in Austin, Texas and San Carlos, California. For more information, visit www.natera.com.

 

Conference Call Information

 

Event:  Natera’s Third quarter 2025 Financial Results Conference Call
Date:  Thursday, November 6, 2025 
Time:  4:30 p.m. ET
Live Dial-In: 1-888-770-7321      (Domestic)
1-929-201-7107      (International)
Conference ID: 7684785
Webcast Link: https://events.q4inc.com/attendee/822764987

 

 

 

 

Forward-Looking Statements

 

This press release contains forward-looking statements under the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts, including statements regarding its market opportunity, anticipated products and launch schedules, reimbursement coverage and product costs, commercial and strategic partnerships and acquisitions, user experience, clinical trials and studies, and its strategies, goals and general business and market conditions, are forward-looking statements. Any forward-looking statements contained in this press release are based upon Natera’s current plans, estimates, and expectations, as of the date of this release, and are not a representation that such plans, estimates, or expectations will be achieved.

 

These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially, including: we face numerous uncertainties and challenges in achieving our financial projections and goals; we may be unable to further increase the use and adoption of our products through our direct sales efforts or through our laboratory partners; we have incurred net losses since our inception and we anticipate that we will continue to incur net losses for the foreseeable future; our quarterly results may fluctuate from period to period; our estimates of market opportunity and forecasts of market growth may prove to be inaccurate; we may be unable to compete successfully with existing or future products or services offered by our competitors; we may engage in acquisitions, dispositions or other strategic transactions that may not achieve our anticipated benefits and could otherwise disrupt our business, cause dilution to our stockholders or reduce our financial resources; our products may not perform as expected; the results of our clinical studies may not support the use and reimbursement of our tests, particularly for microdeletions screening, and may not be able to be replicated in later studies required for regulatory approvals or clearances; if either of our primary CLIA-certified laboratories becomes inoperable, we will be unable to perform our tests and our business will be harmed; we rely on a limited number of suppliers or, in some cases, single suppliers, for some of our laboratory instruments and materials and may not be able to find replacements or immediately transition to alternative suppliers; if we are unable to successfully scale our operations, our business could suffer; the marketing, sale, and use of Panorama and our other products could result in substantial damages arising from product liability or professional liability claims that exceed our resources; we may be unable to expand, obtain or maintain third-party payer coverage and reimbursement for our tests, and we may be required to refund reimbursements already received; third-party payers may withdraw coverage or provide lower levels of reimbursement due to changing policies, billing complexities or other factors; we could incur substantial costs and delays complying with governmental regulations, including recently enacted FDA regulations regarding LDTs; litigation and other regulatory or governmental proceedings, related to our intellectual property or the commercialization of our tests, are costly, time- consuming, could result in our obligation to pay material judgments or incur material settlement costs, and could limit our ability to commercialize our tests; and any inability to effectively protect our proprietary technology could harm our competitive position or our brand.

 

We discuss these and other risks and uncertainties in greater detail in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our periodic reports on Forms 10-K and 10-Q and in other filings that we make with the SEC from time to time. These documents are available on our website at www.natera.com under the Investor Relations section and on the SEC’s website at www.sec.gov.

 

We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement. In light of these risks, uncertainties and assumptions, you should not place undue reliance on our forward-looking statements. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this presentation to conform these statements to actual results or to changes in our expectations.

 

 

 

 

References

 

1.Positive cash flow for the quarter ended September 30, 2025, is derived from the GAAP Statement of Cash Flows as follows: net cash provided by operating activities of $59.4 million, net cash provided by financing activities of $1.9 million, offset by net cash used in investing activities for purchases of property and equipment and acquisition of intangible assets of $34.9 million.

 

2.Gross margin is calculated as GAAP total revenues less GAAP cost of revenues. Gross margin percentage is calculated as gross margin divided by GAAP total revenues.

 

3.Cash (outflow) inflow is calculated as the sum of GAAP net cash provided by (used in) operating activities, GAAP net cash provided by (used in) financing activities, and GAAP net cash provided by (used in) investing activities for purchases of property and equipment.

 

Contacts

 

Investor Relations
Mike Brophy, CFO, Natera, Inc., investor@natera.com

 

Media
Lesley Bogdanow, VP of Corporate Communications, Natera, Inc., pr@natera.com

 

 

 

 

Natera, Inc.

 

Consolidated Balance Sheets

(Unaudited)

 

(in thousands, except shares)

 

   September 30,   December 31, 
   2025   2024 (1) 
Assets          
Current assets:          
Cash, cash equivalents and restricted cash  $1,041,438   $945,587 
Short-term investments   1,000    22,689 
Accounts receivable, net of allowance of $8,419 and $7,259 at September 30, 2025 and December 31, 2024, respectively   286,379    314,165 
Inventory   64,644    44,744 
Prepaid expenses and other current assets, net   53,862    48,635 
Total current assets   1,447,323    1,375,820 
Property and equipment, net   206,496    162,046 
Operating lease right-of-use assets   96,988    86,149 
Other assets   70,675    36,720 
Total assets  $1,821,482   $1,660,735 
Liabilities and Stockholders’ Equity          
Current liabilities:          
Accounts payable  $46,499   $34,922 
Accrued compensation   77,439    62,114 
Other accrued liabilities   215,951    146,893 
Deferred revenue, current portion   21,786    19,754 
Short-term debt financing   80,341    80,362 
Total current liabilities   442,016    344,045 
Deferred revenue, long-term portion and other liabilities   22,898    24,682 
Operating lease liabilities, long-term portion   104,380    96,588 
Total liabilities   569,294    465,315 
           
Commitments and contingencies          
           
Stockholders’ equity:          
Common stock (2)   14    12 
Additional paid-in capital   4,075,641    3,763,614 
Accumulated deficit   (2,823,280)   (2,567,862)
Accumulated other comprehensive loss   (187)   (344)
Total stockholders’ equity   1,252,188    1,195,420 
Total liabilities and stockholders’ equity  $1,821,482   $1,660,735 

 

(1)The consolidated balance sheet at December 31, 2024 has been derived from the audited consolidated financial statements at that date included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

 

(2)As of September 30, 2025 and December 31, 2024, there were approximately 137,533,000 and 132,646,000 shares of common stock issued and outstanding, respectively.

 

 

 

 

Natera, Inc.

 

Consolidated Statements of Operations and Comprehensive Loss

 

(Unaudited)

 

(in thousands, except per share data)

 

   Three months ended   Nine months ended 
   September 30,   September 30, 
   2025   2024   2025   2024 
Revenues                    
Product revenues  $590,197   $436,127   $1,634,660   $1,212,163 
Licensing and other revenues   1,986    3,631    5,955    8,687 
Total revenues   592,183    439,758    1,640,615    1,220,850 
Cost and expenses                    
Cost of product revenues   207,253    167,657    591,397    496,340 
Cost of licensing and other revenues   548    354    1,465    990 
Research and development   173,412    96,931    448,917    274,677 
Selling, general and administrative   308,546    214,154    885,962    606,397 
Total cost and expenses   689,759    479,096    1,927,741    1,378,404 
Loss from operations   (97,576)   (39,338)   (287,126)   (157,554)
Interest expense   (1,045)   (3,142)   (3,078)   (9,393)
Interest and other income, net   11,284    11,618    35,441    32,342 
Loss before income taxes   (87,337)   (30,862)   (254,763)   (134,605)
Income tax expense   (207)   (730)   (655)   (2,050)
Net loss  $(87,544)  $(31,592)  $(255,418)  $(136,655)
Unrealized (loss) gain on available-for-sale securities, net of tax   100    593    157    2,320 
Comprehensive loss  $(87,444)  $(30,999)  $(255,261)  $(134,335)
                     
Net loss per share:                    
Basic and diluted  $(0.64)  $(0.26)  $(1.88)  $(1.12)
Weighted-average number of shares used in computing basic and diluted net loss per share:                    
Basic and diluted   137,187    123,775    136,181    122,486