01—Abstract
Summary
Summary of the 10-Q filed May 8, 2026. Cited figures are marked; the original filing is the authoritative source.
Natera, Inc. reported a first-quarter 2026 net loss of $85.1 milliona on total revenues of $696.6 million, up from $501.8 million in the prior-year quarter (an increase of $194.8 million, or 38.8%).
Product revenues were $693.9 millionb. Loss from operations was $93.5 million, compared with $79.2 million a year earlier. Stock-based compensation was $95.1 million for the quarter, and the company's accumulated deficit reached $2.9 billion as of March 31, 2026.
Management attributes revenue growth to higher test volumes and average selling price improvements, with oncology units rising to approximately 258,900 from 167,700. Gross margin was 64.7%, compared with 63.1% in the prior-year period. The filing also notes that the revenue figure includes a net $61.0 millionc increase from changes in estimates for tests delivered in prior periods.
The balance sheet shows cash, cash equivalents and restricted cash of $1.09 billiond at quarter-end, against $80.3 million drawn on the UBS Credit Line, with $20.0 million remaining available. Operating cash flow was positive at $40.2 million for the quarter, supported by a $98.2 million increase in accrued compensation, while accounts receivable rose by $121.1 million. Management states that existing cash should be sufficient to meet anticipated requirements for at least 12 months, while also noting that the company expects to keep incurring net losses and may need to raise additional capital.
The filing also covers the Foresight Diagnostics acquisition completed in December 2025 for total consideration of $424.5 million, including up to $175.0 million in contingent consideration, of which $125.6 million was recorded as a liability at March 31, 2026. Ongoing litigation includes a $292.5 million jury verdict against Guardant Health that the company plans to appeal, and an accrual of approximately $33.0 million for probable and estimable legal contingencies.
02—Key points
Key Highlights
- Total revenues of $696.6 million, up 38.8% from $501.8 million in Q1 2025, driven by product revenues of $693.9 million.
- Net loss widened to $85.1 million from $66.9 million, with stock-based compensation of $95.1 million included in operating costs.
- Gross margin was 64.7% versus 63.1% a year earlier; research and development expenses rose 63.2% to $210.7 million.
- Cash, cash equivalents and restricted cash totaled $1.09 billion at March 31, 2026; $80.3 million was drawn on the UBS Credit Line, with $20.0 million still available.
- Operating cash flow was $40.2 million, compared with $44.5 million in Q1 2025; accounts receivable increased by $121.1 million during the quarter.
- Included in product revenue is a net $61.0 million increase from changes in estimates for tests delivered in prior periods, which increased net income by a corresponding amount.
- Litigation remains significant, including a $292.5 million false advertising verdict against Guardant Health that the company plans to appeal, and a $96.3 million CareDx judgment that was later invalidated.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 8, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $696.64M$501.83M | +38.8% |
| R&D Expenses | $210.70M$129.08M | +63.2% |
| SG&A Expenses | $327.94M$266.86M | +22.9% |
| Operating Expenses | $790.16M$581.01M | +36.0% |
| Operating Income | -$93.52M-$79.18M | −18.1% |
| Net Income | -$85.09M-$66.94M | −27.1% |
| EPS (Basic) | $-0.60$-0.50 | −20.0% |
| EPS (Diluted) | $-0.60$-0.50 | −20.0% |
| Shares Outstanding (Basic) | 141.50M134.75M | +5.0% |
| Shares Outstanding (Diluted) | 141.50M134.75M | +5.0% |
05—Questions
Frequently Asked Questions
What drove the revenue increase in the first quarter of 2026?
Management attributed the 38.8% increase in total revenues to higher test volumes and average selling price improvements in product revenues. Total reported units rose to approximately 931,600 from 804,800, and oncology units processed increased to approximately 258,900 from 167,700. The filing also notes a net $61.0 million revenue increase from prior-period estimate changes.
Is the company generating enough cash to fund its operations?
The company reported positive operating cash flow of $40.2 million for the quarter, but it also recorded a net loss of $85.1 million and an accumulated deficit of $2.9 billion. Management states that existing cash should be sufficient for at least 12 months from the filing date, while also noting it expects continued net losses and may need to raise additional equity or debt financing.
What are the main drivers of the increase in operating expenses?
Research and development expenses increased by $81.6 million, or 63.2%, mainly due to higher salary and compensation costs from headcount growth and increased lab and clinical trial expenses. Selling, general and administrative expenses rose by $61.1 million, or 22.9%, largely from compensation costs. Amortization of acquired intangibles, which relates to the Foresight Diagnostics acquisition, added $5.7 million.
What is the status of the Foresight Diagnostics acquisition and its contingent payments?
The acquisition was completed on December 4, 2025, with total consideration of $424.5 million. Former Foresight shareholders may receive up to $175.0 million in additional common stock based on milestones through December 31, 2027. The contingent consideration liability was $125.6 million at March 31, 2026, after a $7.2 million increase during the quarter that was recorded in selling, general and administrative expenses.
What significant legal matters are disclosed?
The filing discloses several matters, including a $292.5 million jury verdict against the company in the Guardant Health false advertising case, which the court largely upheld in a post-trial order, with an appeal planned. The company also has a Ravgen judgment of $57.0 million pending and is appealing aspects of it. The company has accrued approximately $33.0 million for legal contingencies that are probable and reasonably estimable.
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