01—Abstract
Summary
Summary of the 10-Q filed August 8, 2025. Cited figures are marked; the original filing is the authoritative source.
Natera, Inc. reported a 10-Q for the quarter ended June 30, 2025.
Total revenues were $546.6 milliona for the three months ended June 30, 2025, up from $413.4 million a year earlier, and $1.048 billion for the six months, up from $781.1 million. Product revenues drove the increase, which the filing attributes to test volume growth and average selling price improvements. Net loss widened to $100.9 million for the quarter (from $37.5 million) and $167.9 million for the six months (from $105.1 million).
Research and development and selling, general and administrative expenses both rose sharply, and stock-based compensation was $171.2 millionb for the six months. At June 30, 2025, the company held $1.00 billion in cash, cash equivalents and restricted cash and $16.0 million in marketable securities, against $80.3 million outstanding on its UBS Credit Line, with $20.0 million still available. Management states these resources should be sufficient for at least 12 months after August 7, 2025.
Operating cash flow was positive at $82.0 millionc for the six months. The company's accumulated deficit reached $2.7 billion. The filing also details extensive litigation.
A jury verdict in Guardant Health's favor carried damages of $292.5 milliond, and a final order largely upholding it was entered July 28, 2025, with an appeal planned. Other matters include the Ravgen case with a $57 million jury damages finding (judgment not yet entered) and the ArcherDX and CareDx patent cases. The company accrued approximately $40.6 million for probable and reasonably estimable legal contingencies as of June 30, 2025, up from $12.6 million at December 31, 2024.
02—Key points
Key Highlights
- Total revenues rose 32.2% to $546.6 million in Q2 2025 versus $413.4 million in Q2 2024, and 34.2% to $1.048 billion for the six months.
- Gross margin was 63.4% for the quarter (58.8% in the prior-year quarter) and 63.3% for the six months (57.8% prior year).
- Net loss widened to $100.9 million in Q2 2025 from $37.5 million, with R&D up 64.3% and SG&A up 56.9% for the quarter.
- Stock-based compensation totaled $93.4 million in Q2 2025 and $171.2 million for the six months, compared with $131.9 million in the prior-year six-month period.
- Cash, cash equivalents and restricted cash were $1.00 billion at June 30, 2025, and the company states this is sufficient for at least 12 months after August 7, 2025.
- Operating cash flow was $82.0 million for the six months ended June 30, 2025, compared with $31.0 million a year earlier.
- Legal contingency accrual rose to approximately $40.6 million from $12.6 million, and the Guardant Health false advertising verdict of $292.5 million was largely upheld by a final order on July 28, 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 8, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $546.60M$413.35M | +32.2% |
| R&D Expenses | $146.43M$89.11M | +64.3% |
| SG&A Expenses | $310.55M$197.97M | +56.9% |
| Operating Expenses | $656.97M$457.25M | +43.7% |
| Operating Income | -$110.37M-$43.90M | −151.4% |
| Interest Expense | $1.03M$3.13M | −67.1% |
| Net Income | -$100.94M-$37.46M | −169.4% |
| EPS (Basic) | $-0.74$-0.30 | −146.7% |
| EPS (Diluted) | $-0.74$-0.30 | −146.7% |
| Shares Outstanding (Basic) | 136.39M122.85M | +11.0% |
| Shares Outstanding (Diluted) | 136.39M122.85M | +11.0% |
05—Questions
Frequently Asked Questions
How much did Natera's revenue grow and what drove it?
Total revenues were $546.6 million for the quarter ended June 30, 2025, up $133.2 million or 32.2% from the prior year. The filing attributes product revenue growth primarily to increased test volumes and average selling price improvements, driven by Panorama, Horizon and Signatera. Oncology units processed rose to approximately 188,800 in the quarter from 125,400.
Is Natera's cash position sufficient to fund operations?
The company reported $1.00 billion in cash, cash equivalents and restricted cash and $16.0 million in marketable securities at June 30, 2025. It had drawn $80.0 million on its UBS Credit Line, with $20.0 million remaining available, and management believes existing resources will meet cash requirements for at least 12 months after August 7, 2025. The filing also notes the company expects to continue incurring losses and may need to raise additional equity or debt.
What are the main litigation risks disclosed?
The most prominent item is the Guardant Health false advertising case, where a November 2024 jury verdict found Natera liable and awarded $292.5 million in damages; a final order largely upholding the verdict was entered July 28, 2025, and the company plans to appeal. Other disclosed matters include a $57 million Ravgen damages finding (judgment not yet entered), CareDx and ArcherDX patent disputes, and several class actions and securities suits. The company accrued about $40.6 million for probable and estimable legal losses but states it cannot predict ultimate outcomes.
Why did operating losses increase despite strong revenue growth?
Operating expenses grew faster than revenue. For the quarter, research and development rose $57.3 million (64.3%) and selling, general and administrative expenses rose $112.6 million (56.9%), with increases in salaries and stock-based compensation, consulting and legal costs. Total cost and expenses rose 43.7% against revenue growth of 32.2%, so loss from operations widened to $110.4 million from $43.9 million.
Did the company change its debt or convertible notes during the period?
No convertible notes remained outstanding in 2025. The 2.25% Convertible Notes due 2027 were redeemed in October 2024, with $287.4 million converted into approximately 7.5 million shares of common stock and the remainder settled in cash. The only remaining debt is the UBS Credit Line, with $80.3 million outstanding including accrued interest at June 30, 2025, bearing interest at 30-day SOFR plus 0.5%.
06—Continue