Natera Reports First Quarter 2025 Financial Results

Original from: Natera

Natera, Inc. (NASDAQ: NTRA), a global leader in cell-free DNA and precision medicine, today reported its financial results for the first quarter ended March 31, 2025.

Recent Strategic and Financial Highlights

· Generated total revenues of $501.8 million in the first quarter of 2025, compared to $367.7 million in the first 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 first quarter of 2025, compared to a gross margin of 56.7% in the first quarter of 2024.

· Processed approximately 855,100 tests in the first quarter of 2025, compared to approximately 735,800 tests in the first quarter of 2024, an increase of 16.2%.

· Performed approximately 167,700 oncology tests in the first quarter of 2025, compared to approximately 114,800 in the first quarter of 2024, an increase of 46.1%.

· Achieved positive cash flow of approximately $23.2 million1in the first 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 officer of Natera. “Our progress reflects 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 first quarter of 2025 compared to $367.7 million in the first quarter of 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 first quarter of 2025 compared to $364.7 million in the first 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 first 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 first quarter of 2024, an increase of 16.2% from the prior period.

In the first 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 first quarter of 2024, an increase of 18.5% from the prior period.

Gross profit2 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 first 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 first 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 offerings as well as increases in consulting and legal expenses.

Loss from operations for the first 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 first 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 first quarter of 2025 compared to 120.8 million in the first 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.

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 inflow to be positive.

Source: Natera Reports First Quarter 2025 Financial Results