01—Abstract
Summary
Summary of the 10-Q filed May 9, 2025. Cited figures are marked; the original filing is the authoritative source.
Natera, Inc. reported a first-quarter 2025 net loss of $66.9 milliona on total revenues of $501.8 million, up from $367.7 million in the prior-year quarter, according to the Form 10-Q for the period ended March 31, 2025.
Product revenues were $500.0 millionb, and loss from operations was $79.2 million. Stock-based compensation was $77.8 million in the quarter, and the company reported an accumulated deficit of $2.6 billion. Gross margin was 63.1%, compared with 56.7% a year earlier, per the segment note.
At March 31, 2025, the company held $973.8 millionc in cash, cash equivalents and restricted cash and $17.8 million in marketable securities. It had $80.3 million outstanding on its UBS Credit Line, with $20.0 million remaining available. Management states that existing cash and marketable securities are sufficient to meet anticipated cash requirements for at least 12 months after May 8, 2025.
Cash provided by operating activities was $44.5 milliond in the quarter. The filing also details extensive litigation. A jury awarded Natera $96.3 million in lost profits and royalties against CareDx, but in February 2025 the court granted CareDx's motion for judgment as a matter of law and invalidated both asserted patents, and Natera has appealed.
Conversely, a jury found Natera liable for false advertising in a suit brought by Guardant and awarded $292.5 million in damages, with no final judgment entered yet. The company accrued approximately $22.6 million for probable and reasonably estimable legal contingencies, and it states it cannot predict the ultimate outcome of these matters.
02—Key points
Key Highlights
- Total revenues rose to $501.8 million from $367.7 million, with product revenues of $500.0 million.
- Net loss narrowed slightly to $66.9 million from $67.6 million a year earlier.
- Gross margin was 63.1%, up from 56.7% in the prior-year quarter.
- Stock-based compensation was $77.8 million, a major component of operating expenses.
- Cash, cash equivalents and restricted cash totaled $973.8 million, with $80.3 million drawn on the UBS Credit Line.
- Guardant false-advertising verdict of $292.5 million against Natera; no final judgment has been entered, and the company plans to appeal any adverse judgment.
- The CareDx $96.3 million patent award was invalidated by the court in February 2025, and Natera has filed an appeal.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 9, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $501.83M$367.74M | +36.5% |
| R&D Expenses | $129.08M$88.64M | +45.6% |
| SG&A Expenses | $266.86M$194.28M | +37.4% |
| Operating Expenses | $581.01M$442.06M | +31.4% |
| Operating Income | -$79.18M-$74.31M | −6.5% |
| Interest Expense | $1.00M$3.12M | −67.8% |
| Net Income | -$66.94M-$67.60M | +1.0% |
| EPS (Basic) | $-0.50$-0.56 | +10.7% |
| EPS (Diluted) | $-0.50$-0.56 | +10.7% |
| Shares Outstanding (Basic) | 134.75M120.81M | +11.5% |
| Shares Outstanding (Diluted) | 134.75M120.81M | +11.5% |
05—Questions
Frequently Asked Questions
Is Natera generating enough cash to fund its operations?
Cash provided by operating activities was $44.5 million for the three months ended March 31, 2025, though the company still reported a $66.9 million net loss. Management states that its existing cash and marketable securities will be sufficient to meet anticipated cash requirements for at least 12 months after May 8, 2025.
What drove the increase in revenue?
Total revenues increased $134.1 million, or 36.5%, to $501.8 million. The company attributed product revenue growth to increased test volumes and average selling price improvements, primarily from Panorama, Horizon and Signatera, and recorded a $34.3 million net increase from changes in estimates for previously delivered tests.
What are the main litigation risks?
The company is involved in many matters. The most notable include a $292.5 million false-advertising verdict against it in the Guardant case, which has not yet been entered as a final judgment, and a $57 million infringement verdict in the Ravgen case that has not been entered as judgment. Natera has accrued about $22.6 million for probable and estimable legal contingencies, and management says it cannot predict the ultimate outcome.
How much debt does the company carry?
Natera had $80.3 million outstanding on its UBS Credit Line, including accrued interest, as of March 31, 2025, with $20.0 million remaining available. Its 2.25% Convertible Notes were fully redeemed in October 2024, with most converted into about 7.5 million shares of common stock.
06—Continue