Earnings release
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NEWS RELEASE Natera Reports First Quarter 2025 Financial Results 2025-05-08 AUSTIN, Texas--(BUSINESS WIRE)-- Natera, Inc. (NASDAQ: NTRA), a global leader in cell-free DNA and precision medicine, today reported its nancial results for the rst quarter ended March 31, 2025. Recent Strategic and Financial Highlights Generated total revenues of $501.8 million in the rst quarter of 2025, compared to $367.7 million in the rst quarter of 2024, an increase of 36.5%. Product revenues grew 37.1% over the same period. Generated a gross margin of 63.1% in the rst quarter of 2025, compared to a gross margin of 56.7% in the rst quarter of 2024. Processed approximately 855,100 tests in the rst quarter of 2025, compared to approximately 735,800 tests in the rst quarter of 2024, an increase of 16.2%. Performed approximately 167,700 oncology tests in the rst quarter of 2025, compared to approximately 114,800 in the rst quarter of 2024, an increase of 46.1%. Achieved positive cash ow of approximately $23.2 million1in the rst quarter of 2025. “We delivered another strong quarter, with volume growth across the business, including a record growth quarter for Signatera,” said Steve Chapman, chief executive o cer of Natera. “Our progress re ects the strength of our technology and the breadth and quality of the clinical data. With multiple high-impact datasets reading out and trials underway, we believe we’re in a strong position to help millions of patients in the future.” First Quarter Ended March 31, 2025 Financial Results Total revenues were $501.8 million in the rst quarter of 2025 compared to $367.7 million in the rst quarter of 1
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2024, an increase of 36.5%. The increase in total revenues was driven primarily by a 37.1% increase in product revenues, which were $500.0 million in the rst quarter of 2025 compared to $364.7 million in the rst quarter of 2024. The increase in product revenues was primarily driven by an increase in volume and average selling price improvements, as well as cash receipts that were collected during the quarter in excess of initial revenue estimates for tests delivered in prior quarters. Natera processed approximately 855,100 tests in the rst quarter of 2025, including approximately 840,800 tests accessioned in its laboratory, compared to approximately 735,800 tests processed, including approximately 718,700 tests accessioned in its laboratory, in the rst quarter of 2024, an increase of 16.2% from the prior period. In the rst quarter of 2025, Natera recognized revenue on approximately 804,800 tests for which results were reported to customers in the period (tests reported), including approximately 791,400 tests reported from its laboratory, compared to approximately 679,400 tests reported, including approximately 663,500 tests reported from its laboratory, in the rst quarter of 2024, an increase of 18.5% from the prior period. Gross pro t2 for the three months ended March 31, 2025 and 2024 was $316.8 million and $208.6 million, respectively, representing a gross margin of 63.1% and 56.7%, respectively. Natera had higher gross margin in the rst quarter of 2025 primarily as a result of higher revenues, continued progress in reducing cost of revenues associated with tests processed, as well as incremental cash receipts during the quarter in excess of initial revenue estimates for tests delivered in the prior period. Total operating expenses, representing research and development expenses and selling, general and administrative expenses, for the rst quarter of 2025 were $395.9 million, compared to $282.9 million in the same period of the prior year, an increase of 39.9%. The increase was primarily driven by headcount growth to support new product o erings as well as increases in consulting and legal expenses. Loss from operations for the rst quarter of 2025 was $79.2 million compared to $74.3 million for the same period of the prior year. Natera reported a net loss for the rst quarter of 2025 of $66.9 million, or ($0.50) per diluted share, compared to a net loss of $67.6 million, or ($0.56) per diluted share, for the same period in 2024. Weighted average shares outstanding were approximately 134.8 million in the rst quarter of 2025 compared to 120.8 million in the rst quarter of the prior year. At March 31, 2025, Natera held approximately $991.6 million in cash, cash equivalents, short-term investments and restricted cash, compared to $968.3 million as of December 31, 2024. As of March 31, 2025, Natera had a total outstanding debt balance of $80.3 million including accrued interest under its line of credit with UBS at a variable interest rate of 30-day SOFR plus 50 bps. 2
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Financial Outlook Natera anticipates 2025 total revenue of $1.94 billion to $2.02 billion; 2025 gross margin to be approximately 60% to 64% of revenues; selling, general and administrative costs to be approximately $0.975 billion to $1.05 billion; research and development costs to be $550 million to $590 million; and net cash in ow to be positive3. Unit Q1 2025Q1 2024 De nition Tests processed 855,100735,800Tests accessioned in our laboratory plus unitsprocessed outside of our laboratoryTests accessioned 840,800718,700Test accessioned in our laboratoryTests reported 804,800679,400Total tests reported Tests reported in our laboratory791,400663,500Total tests reported in our laboratory less unitsreported outside of our laboratory About Natera Natera™ is a global leader in cell-free DNA and genetic testing, dedicated to oncology, women’s health, and organ health. We aim to make personalized genetic testing and diagnostics part of the standard of care to protect health and enable earlier, more targeted interventions that help lead to longer, healthier lives. Natera’s tests are validated by more than 250 peer-reviewed publications that demonstrate high accuracy. Natera operates ISO 13485-certi ed and CAP-accredited laboratories certi ed under the Clinical Laboratory Improvement Amendments (CLIA) in Austin, Texas and San Carlos, California. For more information, visit www.natera.com. Conference Call Information Event: Natera’s First Quarter 2025 Financial Results Conference CallDate: Thursday, May 8, 2025Time: 1:30 p.m. PT (4:30 p.m. ET)Live Dial-In:1-888-596-4144 (Domestic) 1-646-968-2525 (International)Conference ID:7684785Webcast Link:https://events.q4inc.com/attendee/454317205 Forward-Looking Statements This press release contains forward-looking statements under the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts, including statements regarding its market opportunity, anticipated products and launch schedules, reimbursement coverage and product costs, commercial and strategic partnerships and acquisitions, user experience, clinical trials and studies, and its strategies, goals and general business and market conditions, are forward-looking statements. Any forward-looking statements contained in this press release are based upon Natera’s current plans, estimates, and expectations, as 3
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of the date of this release, and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to di er materially, including: we face numerous uncertainties and challenges in achieving our nancial projections and goals; we may be unable to further increase the use and adoption of our products through our direct sales e orts or through our laboratory partners; we have incurred net losses since our inception and we anticipate that we will continue to incur net losses for the foreseeable future; our quarterly results may uctuate from period to period; our estimates of market opportunity and forecasts of market growth may prove to be inaccurate; we may be unable to compete successfully with existing or future products or services o ered by our competitors; we may engage in acquisitions, dispositions or other strategic transactions that may not achieve our anticipated bene ts and could otherwise disrupt our business, cause dilution to our stockholders or reduce our nancial resources; our products may not perform as expected; the results of our clinical studies may not support the use and reimbursement of our tests, particularly for microdeletions screening, and may not be able to be replicated in later studies required for regulatory approvals or clearances; if either of our primary CLIA-certi ed laboratories becomes inoperable, we will be unable to perform our tests and our business will be harmed; we rely on a limited number of suppliers or, in some cases, single suppliers, for some of our laboratory instruments and materials and may not be able to nd replacements or immediately transition to alternative suppliers; if we are unable to successfully scale our operations, our business could su er; the marketing, sale, and use of Panorama and our other products could result in substantial damages arising from product liability or professional liability claims that exceed our resources; we may be unable to expand, obtain or maintain third-party payer coverage and reimbursement for our tests, and we may be required to refund reimbursements already received; third-party payers may withdraw coverage or provide lower levels of reimbursement due to changing policies, billing complexities or other factors; we could incur substantial costs and delays complying with governmental regulations, including recently enacted FDA regulations regarding LDTs; litigation and other regulatory or governmental proceedings, related to our intellectual property or the commercialization of our tests, are costly, time- consuming, could result in our obligation to pay material judgments or incur material settlement costs, and could limit our ability to commercialize our tests; and any inability to e ectively protect our proprietary technology could harm our competitive position or our brand.. We discuss these and other risks and uncertainties in greater detail in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our periodic reports on Forms 10-K and 10-Q and in other lings that we make with the SEC from time to time. These documents are available on our website at www.natera.com under the Investor Relations section and on the SEC’s website at www.sec.gov. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not 4
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possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to di er materially from those contained in any forward-looking statement. In light of these risks, uncertainties and assumptions, you should not place undue reliance on our forward-looking statements. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this presentation to conform these statements to actual results or to changes in our expectations. References 1. Positive cash ow for the quarter ended March 31, 2025, is derived from the GAAP Statement of Cash Flows as follows: net cash provided by operating activities of $44.5 million, net cash provided by nancing activities of $0.5 million, o set by net cash used in investing activities for purchases of property and equipment of $21.8 million. 2. Gross pro t is calculated as GAAP total revenues less GAAP cost of revenues. Gross margin is calculated as gross pro t divided by GAAP total revenues. 3. Cash (out ow) in ow is calculated as the sum of GAAP net cash provided by (used in) operating activities, GAAP net cash provided by (used in) nancing activities, and GAAP net cash provided by (used in) investing activities for purchases of property and equipment, investment in related party, and acquisition of intangible assets. Natera, Inc.Consolidated Balance Sheets (Unaudited)(in thousands, except shares) March 31,December 31,2025 2024 (1) AssetsCurrent assets:Cash, cash equivalents and restricted cash$ 973,768$ 945,587Short-term investments 17,832 22,689Accounts receivable, net of allowance of $7,434 and $7,259 at March 31, 2025 and December31, 2024, respectively 318,233 314,165Inventory 50,367 44,744 Prepaid expenses and other current assets, net56,185 48,635 Total current assets 1,416,3851,375,820Property and equipment, net 180,453 162,046Operating lease right-of-use assets 94,631 86,149 Other assets 40,897 36,720 Total assets $ 1,732,366$ 1,660,735 Liabilities and Stockholders’ EquityCurrent liabilities:Accounts payable $ 39,240$ 34,922Accrued compensation 47,086 62,114Other accrued liabilities 178,449 146,893Deferred revenue, current portion 20,557 19,754 Short-term debt nancing 80,345 80,362 Total current liabilities 365,677 344,045Deferred revenue, long-term portion and other liabilities23,958 24,682 Operating lease liabilities, long-term portion103,056 96,588 Total liabilities 492,691 465,315 Commitments and contingenciesStockholders’ equity:Common stock (2) 14 12Additional paid-in capital 3,874,6563,763,614A l dd i (2634798) (2567862) 5
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Accumulated de cit (2,634,798) (2,567,862)Accumulated other comprehensive loss (197) (344) Total stockholders’ equity 1,239,6751,195,420 Total liabilities and stockholders’ equity$ 1,732,366$ 1,660,735 (1)The consolidated balance sheet at December 31, 2024 has been derived from the audited consolidated nancial statements at that date included inthe Company’s Annual Report on Form 10-K for the year ended December 31, 2024.(2)As of March 31, 2025 and December 31, 2024, there were approximately 135,932,000 and 132,646,000 shares of common stock issued andoutstanding, respectively. Natera, Inc.Consolidated Statements of Operations and Comprehensive Loss (Unaudited)(in thousands, except per share data) Three months endedMarch 31, 2025 2024 Revenues Product revenues $ 500,036$ 364,672Licensing and other revenues 1,794 3,069 Total revenues 501,830367,741 Cost and expenses Cost of product revenues 184,613158,833Cost of licensing and other revenues 452 307Research and development 129,07888,637Selling, general and administrative 266,864194,278 Total cost and expenses 581,007442,055 Loss from operations (79,177) (74,314)Interest expense (1,005) (3,124)Interest and other income, net 13,419 10,267 Loss before income taxes (66,763) (67,171)Income tax expense (173) (428) Net loss $ (66,936) $ (67,599) Unrealized gain on available-for-sale securities, net of tax147 893 Comprehensive loss $ (66,789) $ (66,706) Net loss per share:Basic and diluted $ (0.50) $ (0.56) Weighted-average number of shares used in computing basic and diluted net loss per share:Basic and diluted 134,750120,814 Investor Relations Mike Brophy, CFO, Natera, Inc., investor@natera.com Media Lesley Bogdanow, VP of Corporate Communications, Natera, Inc., pr@natera.com Source: Natera, Inc. 6