Full Press Release Details
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
"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
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
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
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.
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.
| 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 |
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.
Mike Brophy, CFO, Natera, Inc., investor@natera.com
Lesley Bogdanow, VP of Corporate Communications, Natera, Inc., pr@natera.com
Consolidated Balance Sheets
(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 |
Consolidated Statements of Operations and Comprehensive
(in thousands, except per share data)