01—Abstract
Summary
Summary of the 10-Q filed November 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Natera, Inc. reported third-quarter 2025 results in this Form 10-Q, with total revenues of $592.2 milliona for the three months ended September 30, 2025, up 34.7% from $439.8 million a year earlier.
Product revenues were $590.2 millionb, and gross margin was 64.9% versus 61.8% in the prior-year quarter. Net loss widened to $87.5 million from $31.6 million, driven by higher research and development ($173.4 million vs. $96.9 million) and selling, general and administrative expenses ($308.5 million vs. $214.2 million). For the nine months, revenues were $1.64 billion and the net loss was $255.4 million, including $261.8 million of stock-based compensation.
The balance sheet remained liquid, with $1.04 billionc in cash, cash equivalents and restricted cash and $1.0 million in marketable securities at September 30, 2025. The company had $80.3 million outstanding on its UBS Credit Line, with $20.0 million still available, and it must maintain at least $150.0 million in its UBS accounts as collateral. Management states that existing cash and marketable securities are sufficient to meet anticipated cash requirements for at least 12 months, while also noting it will need to generate additional revenue to reach profitability and may need to raise capital.
Operating cash flow was positive at $141.4 milliond for the nine months, while investing outflows of $60.6 million reflected $70.1 million of property and equipment purchases. The filing also details extensive litigation. The company recorded accruals of approximately $40.8 million for probable and estimable legal contingencies, up from $12.6 million at year-end 2024.
Notable matters include a $292.5 million jury verdict in favor of Natera against Guardant Health for false advertising, which the court largely upheld in a July 2025 post-trial order, with no final judgment yet entered, and a $57.0 million damages verdict in the Ravgen case against Natera, for which judgment has not been entered. The company also settled its case with Labcorp in September 2025 and received a final judgment in favor of NeoGenomics in its RaDaR-related litigation.
02—Key points
Key Highlights
- Total revenues of $592.2 million for Q3 2025, up 34.7% from $439.8 million in Q3 2024; product revenues were $590.2 million.
- Gross margin was 64.9% for the three months ended September 30, 2025, compared with 61.8% a year earlier.
- Net loss widened to $87.5 million in Q3 2025 from $31.6 million, as R&D rose to $173.4 million and SG&A to $308.5 million.
- Nine-month net loss was $255.4 million, including $261.8 million of stock-based compensation expense.
- Cash, cash equivalents and restricted cash were $1.04 billion at September 30, 2025; $80.3 million was drawn on the UBS Credit Line with $20.0 million remaining available.
- Operating cash flow was $141.4 million for the nine months ended September 30, 2025, versus $82.8 million a year earlier.
- Legal contingency accruals rose to approximately $40.8 million from $12.6 million, and the filing details multiple patent and false advertising cases, including a $292.5 million jury verdict against Guardant Health in Natera's favor.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 7, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $592.18M$439.76M | +34.7% |
| R&D Expenses | $173.41M$96.93M | +78.9% |
| SG&A Expenses | $308.55M$214.15M | +44.1% |
| Operating Expenses | $689.76M$479.10M | +44.0% |
| Operating Income | -$97.58M-$39.34M | −148.0% |
| Interest Expense | $1.04M$3.14M | −66.7% |
| Net Income | -$87.54M-$31.59M | −177.1% |
| EPS (Basic) | $-0.64$-0.26 | −146.2% |
| EPS (Diluted) | $-0.64$-0.26 | −146.2% |
| Shares Outstanding (Basic) | 137.19M123.78M | +10.8% |
| Shares Outstanding (Diluted) | 137.19M123.78M | +10.8% |
05—Questions
Frequently Asked Questions
How did Natera's revenue and profitability trend in the third quarter of 2025?
Revenue grew 34.7% year over year to $592.2 million, and gross margin improved to 64.9% from 61.8%. However, the net loss increased to $87.5 million from $31.6 million because research and development and selling, general and administrative expenses grew faster than revenue.
Does Natera have enough cash to fund its operations?
Management believes existing cash, cash equivalents and marketable securities will meet anticipated cash requirements for at least 12 months after the financial statements' issuance date. The filing also states that the company will need to generate additional revenue to reach profitability and may need to raise equity or debt financing.
What is the status of the Credit Line with UBS?
As of September 30, 2025, $80.0 million had been drawn, with $80.3 million outstanding including accrued interest and $20.0 million still available. The interest rate is the 30-day SOFR average plus 0.5%, and the company must keep at least $150.0 million in its UBS accounts as collateral.
What major litigation developments were reported this quarter?
In July 2025 the court largely upheld a $292.5 million jury verdict in Natera's favor against Guardant Health, though no final judgment has been entered. A $57.0 million verdict against Natera in the Ravgen case has not yet been reduced to judgment. The company settled its case with Labcorp in September 2025, and a final judgment was entered in favor of NeoGenomics in the RaDaR-related case on September 29, 2025.
What drove the increase in operating expenses?
For the three months ended September 30, 2025, research and development rose $76.5 million, mainly from higher salary and compensation costs and lab and clinical trial expenses. Selling, general and administrative expenses rose $94.4 million, mainly from higher salary and compensation costs, consulting, and marketing expenses.
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