Natera, Inc.
NTRA · Nasdaq
Next quarter
Reports Nov 5, 2026.
Consensus is -$0.10 EPS for Sep 2026 across 4 estimates, ranging -$0.20 to $0.13.
NTRA Jun 2026
- 0.00%
- +21.37%
- -$0.47
- -$0.47
- —
- $752.75M
Reported results
- $752.75M
- -$75.79M
- -10.07%
- -$66.97M
- -$0.47
Highlights
- Revenue: Second-quarter revenue was $752.8 million, up 37.7% year over year and 8.1% from $696.6 million in Q1 FY2026; EPS of -$0.47 matched consensus exactly.
- Oncology growth: Oncology tests processed rose 57.2% year over year to approximately 296,700, while clinical MRD oncology units increased by 34,000 sequentially, the largest quarter-over-quarter increase to date.
- Testing scale: Total tests processed reached approximately 1,043,900, up 22.4% year over year and marking the second consecutive quarter above one million tests.
- Revenue quality: Tests reported increased 21.2% to approximately 985,500, while product revenue per reported test rose approximately 13.3%, reflecting a greater Signatera mix and improved reimbursement.
- Gross margin: GAAP gross margin was 64.5%, versus 63.4% a year ago and 64.7% in Q1; excluding revenue-accrual estimate changes, non-GAAP gross margin improved approximately 50 basis points sequentially.
- Operating leverage: Operating loss narrowed to $75.8 million from $110.4 million a year ago and $93.5 million in Q1, despite operating expenses rising 21.5% year over year to $555.3 million.
- Guidance: Natera raised 2026 revenue guidance by $100 million at the midpoint to $2.85 billion-$2.91 billion from $2.74 billion-$2.82 billion, while maintaining a forecast for positive cash flow.
- Cash and investment: Cash, cash equivalents and restricted cash increased $3.6 million during the quarter to $1.092 billion at June 30, against $80.3 million of debt and $20.0 million of remaining credit-line capacity.
Analysis
Natera’s second quarter was a high-growth volume and reimbursement print, with revenue of $752.8 million rising 37.7% year over year and 8.1% sequentially. EPS of -$0.47 was exactly in line with consensus. The net loss narrowed to $67.0 million from $100.9 million in the year-ago quarter and $85.1 million in Q1, while operating loss improved to $75.8 million from $110.4 million and $93.5 million, respectively.
The central feature was continued oncology acceleration: oncology volume grew 57.2% to 296,700 tests, and clinical MRD units added 34,000 sequentially. Overall testing increased 22.4% to 1.044 million, but revenue grew faster as reported-test ASP increased 13.3%, helped by a higher Signatera mix and better reimbursement. The quarter also included a $52.3 million favorable revenue-accrual estimate change, equivalent to 2.7% of reported revenue and reducing loss per share by $0.36. Gross margin reached 64.5%, though operating investment remained substantial, particularly R&D, which rose 55.8% year over year. Natera responded to the momentum by lifting full-year revenue guidance by $100 million at the midpoint to $2.85 billion-$2.91 billion.
Revenue and earnings
Revenue growth outpaced reported-test growth as Natera benefited from both rising volumes and a richer product mix. The quarter remained loss-making, but the operating deficit narrowed despite continued expansion in research, commercial and laboratory infrastructure.
- Revenue: Total revenue was $752.8 million, up 37.7% from $546.6 million in Q2 FY2025 and 8.1% from $696.6 million in Q1 FY2026. Product revenue contributed $747.9 million, while licensing and other revenue was $4.8 million.
- Reported tests: Tests reported to customers increased 21.2% year over year to approximately 985,500, including 972,000 reported from Natera’s laboratories.
- Profitability: Gross profit was $485.2 million versus $346.6 million a year ago. Operating loss was $75.8 million, net loss was $67.0 million and diluted EPS was -$0.47, compared with operating loss of $110.4 million, net loss of $100.9 million and EPS of -$0.74 a year ago.
- Revenue estimate change: Natera recognized a $52.3 million favorable change in its estimate of collections for tests delivered in prior periods, versus $45.3 million a year ago. The adjustment increased revenue and reduced loss per share by $0.36.
Oncology volume
Oncology was the most important growth engine in the quarter. Management attributed the broader volume increase primarily to continued commercial growth in Signatera, Panorama and Horizon, with Signatera also supporting higher average selling prices.
- Oncology tests: Oncology tests processed reached approximately 296,700, up 57.2% from 188,800 in Q2 FY2025.
- MRD momentum: Clinical MRD oncology units increased by 34,000 from Q1, the largest sequential increase Natera has reported to date.
- ASP: Product revenue per reported test increased approximately 13.3% year over year, driven by the higher-ASP Signatera mix and improved third-party reimbursement, primarily for Signatera.
- Scale: Total tests processed rose 22.4% to approximately 1,043,900, including 1,030,100 tests accessioned in Natera’s laboratories.
Margins and investment
The gross-margin trend was positive, but Natera is still prioritizing capacity, clinical evidence and new product development over near-term profitability. Cost efficiencies and mix helped offset higher laboratory and personnel expenses.
- Gross margin: GAAP gross margin was 64.5%, up from 63.4% a year ago and down modestly from 64.7% in Q1. Excluding revenue-accrual estimate changes, non-GAAP gross margin improved approximately 50 basis points sequentially.
- Operating expenses: Research and development expense rose 55.8% year over year to $228.1 million, driven by headcount, laboratory work and clinical trials. SG&A increased 5.4% to $327.2 million.
- Capacity investment: Six-month capital expenditures were $85.6 million, primarily for expanded facilities and equipment, while property and equipment rose to $317.6 million at June 30 from $241.2 million at December 31, 2025.
- Stock compensation: Six-month stock-based compensation increased to $198.2 million from $171.2 million a year ago, including $71.0 million in R&D and $113.3 million in SG&A.
Guidance and milestones
The stronger first-half trajectory led Natera to raise its 2026 revenue outlook while retaining its positive-cash-flow target. The company also highlighted regulatory, reimbursement and product-development milestones that support its commercial expansion.
- 2026 revenue: Guidance increased to $2.85 billion-$2.91 billion from $2.74 billion-$2.82 billion, a $100 million increase at the midpoint.
- Other outlook: Natera continues to expect 2026 gross margin of approximately 64%-66%, SG&A of $1.125 billion-$1.225 billion, R&D expense of $800 million-$900 million and positive cash flow.
- Regulatory and reimbursement: Signatera received three regulatory approvals, Medicare coverage expanded for Prospera, and Natera launched a major enhancement to Panorama NIPT.
- Foresight integration: The Foresight Diagnostics acquisition contributed $5.7 million of acquired-intangible amortization in the quarter; contingent consideration was $120.5 million at June 30.
Cash and liquidity
Natera preserved its cash balance while funding substantial capital expenditure and clinical investment. Cash generation benefited from collections and favorable revenue-estimate changes, although the company remains unprofitable and continues to disclose the potential need for future financing.
- Cash balance: Cash, cash equivalents and restricted cash were $1.092 billion at June 30, up from $1.076 billion at December 31, 2025 and approximately $3.6 million during the quarter.
- Cash flow: Operating cash flow was $95.0 million for the first six months, compared with $82.0 million in the prior-year period. The increase included the benefit of $113.3 million of favorable revenue-estimate changes.
- Debt: Outstanding debt, including accrued interest, was $80.3 million under the UBS credit line at a variable rate of 30-day SOFR plus 50 basis points, leaving $20.0 million available.
- Liquidity caveat: Natera reported a six-month net loss of $152.1 million and an accumulated deficit of $2.9 billion, although management said existing cash should meet anticipated requirements for at least 12 months.
