01—Abstract
Summary
Summary of the 10-Q filed August 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Natera, Inc. reported a sharply larger top line for the second quarter and first half of 2026, with total revenues of $752.8 milliona for the three months ended June 30, 2026 (up from $546.6 million) and $1,449.4 million for the six months (up from $1,048.4 million).
Product revenues drove the growth, and the filing attributes part of it to a $52.3 millionb change in estimate for tests delivered in prior periods during the quarter, versus $113.3 million for the six months. Net loss narrowed to $67.0 million for the quarter ($0.47 per share) from $100.9 million a year earlier, and to $152.1 million for the six months from $167.9 million. Stock-based compensation was $198.2 million for the six months, a large share of the operating loss.
Research and development expense rose to $228.1 millionc for the quarter from $146.4 million, and selling, general and administrative expense rose to $327.2 million from $310.5 million. Gross margin on total revenues was 64.5% for the quarter and 64.6% for the six months, per the segment note. Operating cash flow was $95.0 million for the six months, while capital expenditures were $85.6 million.
Cash, cash equivalents and restricted cash were $1.09 billiond at June 30, 2026, against $80.3 million outstanding on the UBS Credit Line, with $20.0 million remaining available. Management states that existing cash should cover requirements for at least 12 months from the filing date. Litigation remains significant.
The filing describes a $292.5 million jury verdict against the Company in favor of Guardant Health, which has been entered as final judgment and is being appealed to the Ninth Circuit, and a $57.0 million Ravgen damages verdict with a notice of appeal filed. The accrual for probable and estimable legal contingencies was $33.2 million at June 30, 2026. The Company also has contingent consideration of up to $175.0 million tied to the Foresight Diagnostics acquisition, with $120.5 million recognized at fair value.
02—Key points
Key Highlights
- Total revenues rose 37.7% to $752.8 million in Q2 2026, and 38.2% to $1,449.4 million for the six months, with product revenues accounting for nearly all of the total.
- Changes in estimate for prior-period test collections added $52.3 million to Q2 2026 revenue and $113.3 million to six-month revenue, and reduced loss per share by $0.36 in the quarter and $0.80 for the six months.
- Net loss narrowed to $67.0 million in Q2 2026 from $100.9 million, and to $152.1 million for the six months from $167.9 million.
- Research and development expense increased 55.8% in Q2 2026 to $228.1 million, reflecting headcount growth, lab and clinical trial spending, and new product launches.
- Cash and restricted cash totaled $1.09 billion at June 30, 2026, against $80.3 million drawn on the UBS Credit Line, and the Company expects existing cash to be sufficient for at least 12 months.
- The Foresight Diagnostics acquisition, completed December 4, 2025 for $424.5 million in total consideration, added $141.1 million of goodwill and $335.3 million of developed technology intangible assets.
- The filing discloses multiple material patent and false-advertising matters, including a $292.5 million Guardant jury verdict now in final judgment and under appeal, and a $57.0 million Ravgen verdict under appeal.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 7, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $752.75M$546.60M | +37.7% |
| R&D Expenses | $228.07M$146.43M | +55.8% |
| SG&A Expenses | $327.20M$310.55M | +5.4% |
| Operating Expenses | $828.54M$656.97M | +26.1% |
| Operating Income | -$75.79M-$110.37M | +31.3% |
| Net Income | -$66.97M-$100.94M | +33.7% |
| EPS (Basic) | $-0.47$-0.74 | +36.5% |
| EPS (Diluted) | $-0.47$-0.74 | +36.5% |
| Shares Outstanding (Basic) | 143.28M136.39M | +5.1% |
| Shares Outstanding (Diluted) | 143.28M136.39M | +5.1% |
05—Questions
Frequently Asked Questions
How much of the revenue growth came from one-time or prior-period adjustments?
The filing states that changes in estimate related to tests delivered in prior periods increased revenue by $52.3 million in the second quarter of 2026 and by $113.3 million for the six months. Of that six-month amount, the filing says the year-over-year increase in the estimate effect was about $33.7 million, from $79.6 million in the prior-year period. Product revenues otherwise grew with test volume, which rose 21.2% in reported units for the quarter, and higher average selling price.
Is the company funding its operations and when may it need more capital?
At June 30, 2026, cash, cash equivalents and restricted cash was $1.09 billion. The Company states that its existing cash should meet anticipated requirements for at least 12 months after the issuance date of the financial statements. The filing also says it expects to need additional revenue to reach profitability and may need to raise equity or debt, and that any new equity would dilute stockholders.
What are the most significant pending legal matters?
The filing describes a $292.5 million jury verdict in Guardant Health's false-advertising case, which was entered as a final judgment in June 2026 and is being appealed to the Ninth Circuit. It also describes a $57.0 million Ravgen damages verdict, with a notice of appeal filed on certain rulings. The Company states it cannot predict the ultimate outcome, and its accrual for probable and estimable legal contingencies was $33.2 million at June 30, 2026.
What drove the increase in operating expenses?
Research and development expense rose $81.6 million (55.8%) in the quarter, driven by higher salary and stock-based compensation from headcount growth, a $37.0 million increase in lab and clinical trial costs, and a $12.6 million increase in office expenses. Selling, general and administrative expense rose $16.7 million (5.4%) in the quarter, as higher compensation and marketing costs were partly offset by a $38.6 million decrease in legal and consulting expenses. The filing also reports $5.7 million of quarterly amortization of acquired intangibles tied to Foresight Diagnostics.
06—Continue