01—Abstract
Summary
Summary of the 8-K filed November 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Natera, Inc. (NASDAQ: NTRA) reported third-quarter 2025 results on November 6, 2025, with total revenues of $592.2 milliona, up 34.7% from $439.8 million in the third quarter of 2024.
Product revenues were $590.2 millionb, up 35.3%. Gross margin percentage was 64.9%, compared with 61.8% a year earlier. The company processed approximately 893,600 tests, a 15.2% increase, and approximately 211,000 oncology tests, a 53.9% increase.
The company cited record sequential growth of approximately 21,500 clinical molecular residual disease (MRD) units. Revenue growth was driven primarily by higher volume, better average selling prices, and cash receipts collected in excess of initial revenue estimates for tests delivered in prior quarters. Natera reported a net loss of $87.5 millionc, or $(0.64) per diluted share, for the quarter, compared with a net loss of $31.6 million, or $(0.26) per diluted share, a year earlier.
Total operating expenses rose 54.9% to $482.0 milliond, driven mainly by salary and stock-based compensation to support new product offerings, along with higher consulting and legal expenses. The company reported positive cash flow of approximately $26.4 million for the quarter. Cash, cash equivalents, short-term investments and restricted cash totaled approximately $1,042.4 million at September 30, 2025.
Management raised its 2025 total revenue guidance by $160 million at the midpoint, to $2.18 billion to $2.26 billion, from $2.02 billion to $2.10 billion. The outlook also calls for a 2025 gross margin of approximately 62% to 64%, SG&A of approximately $1.08 billion to $1.18 billion, R&D of approximately $575 million to $625 million, and net cash inflow of approximately $100 million.
02—Key points
Key Highlights
- Third-quarter total revenues of $592.2 million, up 34.7% year over year, with product revenues up 35.3%
- Gross margin percentage of 64.9%, up from 61.8% in the third quarter of 2024
- Clinical MRD units grew by a record of approximately 21,500 sequentially, and oncology tests rose 53.9% year over year to approximately 211,000
- Net loss widened to $87.5 million, or $(0.64) per diluted share, from $31.6 million, or $(0.26) per diluted share, as operating expenses rose 54.9%
- 2025 total revenue guidance raised by $160 million at the midpoint to $2.18 billion to $2.26 billion
- Positive cash flow of approximately $26.4 million in the quarter; cash and investments of approximately $1,042.4 million at September 30, 2025
- Outstanding UBS line of credit balance of $80.3 million at a variable rate of 30-day SOFR plus 50 bps
03—Questions
Frequently Asked Questions
Why did Natera raise its 2025 revenue guidance?
The company raised its 2025 total revenue outlook by $160 million at the midpoint, to $2.18 billion to $2.26 billion. The investor presentation attributes the increase to continued volume growth, conservative average selling price assumptions, and strong oncology contribution.
What drove the increase in third-quarter revenue?
The filing attributes the increase primarily to a 35.3% rise in product revenues, driven by higher volume and average selling price improvements, as well as cash receipts collected during the quarter in excess of initial revenue estimates for tests delivered in prior quarters. The company reported that these collections added $55.1 million in change in revenue estimate for tests delivered in prior periods that were fully collected.
Why did the net loss increase compared with the prior year?
Total operating expenses rose 54.9% to $482.0 million, primarily due to higher salary and related compensation, including stock-based compensation, to support new product offerings, along with increased consulting and legal expenses. Research and development expense rose to $173.4 million from $96.9 million a year earlier, while SG&A rose to $308.5 million from $214.2 million.
What is the company's cash position and debt?
At September 30, 2025, Natera held approximately $1,042.4 million in cash, cash equivalents, short-term investments and restricted cash, up from $968.3 million at December 31, 2024. Total outstanding debt under its UBS line of credit was $80.3 million, including accrued interest, at a variable rate of 30-day SOFR plus 50 bps.
What product and clinical developments did the company highlight?
The company cited a record quarter for Signatera clinical MRD volumes and the announcement of an expanded 20-gene panel for its Fetal Focus single-gene noninvasive prenatal test, which is set to launch in the fourth quarter. It also highlighted early cancer detection data for advanced adenomas, including 22.5% sensitivity and 91.5% specificity, and ESMO presentations supporting Signatera.
04—Continue