Workflow
Adaptive Biotechnologies(ADPT)
icon
Search documents
Adaptive Biotechnologies(ADPT) - 2025 Q2 - Quarterly Report
2025-08-05 20:31
[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section provides the unaudited condensed consolidated financial statements and notes, detailing financial position, performance, and cash flows [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (vs Dec 31, 2024) | | :--------------------------------- | :----------------------------- | :------------------------------- | :-------------------------------- | | Total Assets | $496,637 | $539,376 | -$42,739 | | Total Liabilities | $317,101 | $336,891 | -$19,790 | | Total Shareholders' Equity | $179,536 | $202,485 | -$22,949 | | Cash and Cash Equivalents | $43,163 | $47,920 | -$4,757 | | Short-term marketable securities | $154,710 | $174,374 | -$19,664 | | Current Assets | $261,856 | $283,752 | -$21,896 | | Current Liabilities | $92,141 | $98,053 | -$5,912 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (in thousands) | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (YoY) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (YoY) | | :------------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :------------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :------------------------------------------------ | | Revenue | $58,879 | $43,190 | +36.3% | $111,322 | $85,063 | +30.9% | | Total Operating Expenses | $83,915 | $90,508 | -7.29% | $165,962 | $181,143 | -8.27% | | Loss from Operations | $(25,036) | $(47,318) | +47.1% | $(54,640) | $(96,080) | +43.1% | | Net Loss attributable to Adaptive Biotechnologies Corporation | $(25,614) | $(46,222) | +44.6% | $(55,466) | $(93,729) | +40.8% | | Net Loss per Share (basic and diluted) | $(0.17) | $(0.31) | +45.2% | $(0.37) | $(0.64) | +42.2% | [Condensed Consolidated Statements of Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Condensed Consolidated Statements of Comprehensive Loss (in thousands) | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (YoY) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (YoY) | | :------------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :------------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :------------------------------------------------ | | Net Loss | $(25,593) | $(46,248) | +44.6% | $(55,423) | $(93,781) | +40.9% | | Change in unrealized gains and losses on investments | $(61) | $(76) | +19.7% | $(93) | $(397) | +76.6% | | Comprehensive Loss attributable to Adaptive Biotechnologies Corporation | $(25,675) | $(46,298) | +44.6% | $(55,559) | $(94,126) | +41.0% | [Condensed Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity) - Total shareholders' equity decreased from **$202,485 thousand** at December 31, 2024, to **$179,536 thousand** at June 30, 2025[11](index=11&type=chunk) - Net loss for the six months ended June 30, 2025, was **$(55,466) thousand**, contributing to the accumulated deficit[22](index=22&type=chunk) - Share-based compensation expense for the six months ended June 30, 2025, was **$25,506 thousand**[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (YoY) | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | :------------------------------------------------ | | Net cash used in operating activities | $(40,914) | $(55,656) | +26.5% (less cash used) | | Net cash provided by investing activities | $28,919 | $50,386 | -42.6% | | Net cash provided by financing activities | $7,061 | $74 | +9455.4% | | Net decrease in cash, cash equivalents and restricted cash | $(4,934) | $(5,196) | +5.0% (smaller decrease) | | Cash, cash equivalents and restricted cash at end of period | $45,883 | $62,800 | -27.0% | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1. Organization and Description of Business](index=10&type=section&id=1.%20Organization%20and%20Description%20of%20Business) - Adaptive Biotechnologies Corporation is a commercial-stage company advancing immune medicine by harnessing the adaptive immune system to transform disease diagnosis and treatment[27](index=27&type=chunk) - The company's immune medicine platform applies proprietary technologies, computational biology, and machine learning to decode a patient's immune system for tailored clinical products and services[27](index=27&type=chunk) [2. Significant Accounting Policies](index=10&type=section&id=2.%20Significant%20Accounting%20Policies) - The unaudited condensed consolidated financial statements are prepared in accordance with GAAP for interim financial information, including all necessary normal, recurring adjustments[31](index=31&type=chunk) - Revenue recognition follows a five-step process, involving identifying contracts and performance obligations, measuring transaction price, allocating price, and recognizing revenue upon satisfaction of obligations[35](index=35&type=chunk) - The company is evaluating the impact of new accounting pronouncements, ASU No. 2023-09 (Income Taxes) and ASU No. 2024-03 (Expense Disaggregation Disclosures), on its consolidated financial statements[42](index=42&type=chunk)[43](index=43&type=chunk) [3. Revenue](index=13&type=section&id=3.%20Revenue) Revenue by Category (in thousands) | Revenue Category | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (YoY) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (YoY) | | :----------------------- | :------------------------------------------ | :------------------------------------------ | :------------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :------------------------------------------------ | | MRD Service Revenue | $44,438 | $32,284 | +37.6% | $83,659 | $60,410 | +38.5% | | MRD Regulatory Milestone Revenue | $5,500 | $3,000 | +83.3% | $10,000 | $7,500 | +33.3% | | Total MRD Revenue | $49,938 | $35,284 | +41.5% | $93,659 | $67,910 | +37.9% | | Immune Medicine Service Revenue | $5,001 | $6,148 | -18.6% | $10,123 | $10,707 | -5.4% | | Immune Medicine Collaboration Revenue | $3,940 | $1,758 | +124.1% | $7,540 | $6,446 | +17.0% | | Total Immune Medicine Revenue | $8,941 | $7,906 | +13.1% | $17,663 | $17,153 | +3.0% | | Total Revenue | $58,879 | $43,190 | +36.3% | $111,322 | $85,063 | +30.9% | - As of June 30, 2025, the company could receive up to an additional **$406.5 million** in milestone payments from customers' therapeutics achieving regulatory approvals related to MRD data[45](index=45&type=chunk) - Under the Genentech Agreement, the company may be eligible for an additional **$1.8 billion** in milestone payments (regulatory, development, commercial) and tiered royalties on net sales[47](index=47&type=chunk) [4. Deferred Revenue](index=16&type=section&id=4.%20Deferred%20Revenue) Deferred Revenue Balance (in thousands) | Metric (in thousands) | June 30, 2025 | | :------------------------------------ | :------------ | | Deferred revenue balance at December 31, 2024 | $82,945 | | Additions to deferred revenue during the period | $27,554 | | Revenue recognized during the period | $(35,166) | | Deferred revenue balance at June 30, 2025 | $75,333 | - Deferred revenue from the Genentech Agreement accounted for **$15.1 million** (current) and **$18.6 million** (non-current) of the total deferred revenue balances as of June 30, 2025[57](index=57&type=chunk) - The majority of non-current deferred revenue is expected to be recognized over approximately **three to four years** from June 30, 2025, representing the estimated research and development period[57](index=57&type=chunk) [5. Fair Value Measurements](index=16&type=section&id=5.%20Fair%20Value%20Measurements) Financial Assets Fair Value (in thousands) | Financial Assets (in thousands) | June 30, 2025 (Total) | December 31, 2024 (Total) | Change | | :------------------------------ | :-------------------- | :------------------------ | :----- | | Money market funds | $29,230 | $35,790 | -$6,560 | | Commercial paper | $1,465 | $2,479 | -$1,014 | | U.S. government treasury securities | $149,461 | $187,181 | -$37,720 | | Corporate bonds | $27,884 | $18,374 | +$9,510 | | Total financial assets | $208,040 | $243,824 | -$35,784 | - Level 1 securities include highly liquid money market funds, while Level 2 securities consist of U.S. government treasury securities, corporate bonds, and commercial paper, valued based on observable market data[61](index=61&type=chunk) [6. Investments](index=18&type=section&id=6.%20Investments) Marketable Securities Fair Value (in thousands) | Investment Category (in thousands) | June 30, 2025 (Estimated Fair Value) | December 31, 2024 (Estimated Fair Value) | | :--------------------------------- | :------------------------------------- | :----------------------------------------- | | Total short-term marketable securities | $154,710 | $174,374 | | Total long-term marketable securities | $24,100 | $33,660 | - As of June 30, 2025, gross unrealized holding losses for investments in a loss position totaled **$(60) thousand**, primarily due to changes in interest rates rather than credit loss[65](index=65&type=chunk)[66](index=66&type=chunk) - The company does not intend, nor is it likely to be required, to sell available-for-sale investments before the recovery of their amortized cost basis[66](index=66&type=chunk) [7. Leases](index=19&type=section&id=7.%20Leases) - The company has operating lease agreements for laboratory, office, and warehouse facilities in Seattle, Washington, South San Francisco, California, and Bothell, Washington[67](index=67&type=chunk) Operating Lease Liabilities (in thousands) | Lease Metric (in thousands) | Amount | | :------------------------------------ | :------- | | Total undiscounted lease payments | $100,611 | | Less: Imputed interest | $(16,241) | | Total operating lease liabilities | $84,370 | | Less: Current portion | $(9,957) | | Operating lease liabilities, less current portion | $74,413 | - Cash paid for amounts included in the measurement of lease liabilities was **$7.2 million** for the six months ended June 30, 2025, compared to **$7.0 million** in the prior year[68](index=68&type=chunk) [8. Revenue Interest Purchase Agreement](index=19&type=section&id=8.%20Revenue%20Interest%20Purchase%20Agreement) - In September 2022, the company entered into a Purchase Agreement with OrbiMed, receiving **$125.0 million** at closing and potentially up to **$125.0 million** in subsequent installments by September 12, 2025[70](index=70&type=chunk) - The transaction is accounted for as debt at amortized cost using the effective interest rate method, with an effective interest rate of **8.9%** as of June 30, 2025[73](index=73&type=chunk)[74](index=74&type=chunk) Revenue Interest Liability (in thousands) | Metric (in thousands) | Amount | | :------------------------------------ | :------- | | Revenue interest liability, net at December 31, 2024 | $133,279 | | Interest expense (6 months) | $5,853 | | Revenue interest payable (6 months) | $(5,567) | | Revenue interest liability, net at June 30, 2025 | $133,565 | [9. Commitments and Contingencies](index=21&type=section&id=9.%20Commitments%20and%20Contingencies) - The company is not a party to any material legal proceedings as of June 30, 2025[78](index=78&type=chunk) - The company provides indemnification to various parties, including directors and executive officers, with maximum potential future payments often unlimited, but has not incurred material costs from such indemnifications[79](index=79&type=chunk) [10. Shareholders' Equity](index=22&type=section&id=10.%20Shareholders%27%20Equity) - As of June 30, 2025, the company had **152,234,772 shares** of common stock issued and outstanding[11](index=11&type=chunk) - Total shares of common stock reserved for future issuance under equity incentive plans amounted to **45,544,717 shares** as of June 30, 2025[84](index=84&type=chunk) - The board of directors determined not to increase the 2019 Plan and ESPP reserves in 2025[83](index=83&type=chunk) [11. Equity Incentive Plans](index=22&type=section&id=11.%20Equity%20Incentive%20Plans) - Stock options outstanding at June 30, 2025, totaled **11,393,433 shares** with a weighted-average exercise price of **$15.43** and a remaining contractual life of **5.5 years**[88](index=88&type=chunk) - Nonvested restricted stock units outstanding at June 30, 2025, totaled **11,598,813 shares** with a weighted-average grant date fair value of **$7.30**[89](index=89&type=chunk) Share-Based Compensation Expense (in thousands) | Expense Category (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Cost of revenue | $1,010 | $1,011 | $1,889 | $1,917 | | Research and development | $4,276 | $4,170 | $8,334 | $8,854 | | Sales and marketing | $3,508 | $3,177 | $6,652 | $6,190 | | General and administrative | $4,565 | $4,600 | $8,631 | $10,295 | | Total share-based compensation expense | $13,359 | $12,958 | $25,506 | $27,256 | [12. Restructurings](index=26&type=section&id=12.%20Restructurings) - During the six months ended June 30, 2024, the company recognized total restructuring costs of **$8.9 million**, primarily related to organizational alignment and consolidation of R&D workflows[105](index=105&type=chunk) - Restructuring initiatives in Q2 2024 led to **$7.2 million** in impairment charges for long-lived assets, including leased space and halted software enhancements[104](index=104&type=chunk) [13. Net Loss Per Share Attributable to Adaptive Biotechnologies Corporation Common Shareholders](index=27&type=section&id=13.%20Net%20Loss%20Per%20Share%20Attributable%20to%20Adaptive%20Biotechnologies%20Corporation%20Common%20Shareholders) Net Loss Per Share and Weighted-Average Shares | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Loss per Share (basic and diluted) | $(0.17) | $(0.31) | $(0.37) | $(0.64) | | Weighted-average shares (basic and diluted) | 152,082,284 | 147,414,095 | 150,646,632 | 146,600,811 | - Basic and diluted net loss per share are the same for all periods presented due to the company's loss position, making the inclusion of potential common shares anti-dilutive[106](index=106&type=chunk) - Approximately **28.8 million** (Q2 2025) and **27.9 million** (6M 2025) common stock equivalents were excluded from diluted EPS calculation due to their anti-dilutive effect[107](index=107&type=chunk) [14. Segment Information](index=27&type=section&id=14.%20Segment%20Information) Segment Revenue and Adjusted EBITDA (in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | MRD Revenue | $49,938 | $35,284 | +41.5% | $93,659 | $67,910 | +37.9% | | Immune Medicine Revenue | $8,941 | $7,906 | +13.1% | $17,663 | $17,153 | +3.0% | | MRD Adjusted EBITDA | $1,912 | $(11,289) | +$13,201 | $(2,199) | $(28,548) | +$26,349 | | Immune Medicine Adjusted EBITDA | $(6,069) | $(7,033) | +$964 | $(11,515) | $(13,960) | +$2,445 | - MRD Adjusted EBITDA significantly improved, increasing by **$13.2 million** for the three months and **$26.3 million** for the six months ended June 30, 2025, primarily due to increased MRD revenue[160](index=160&type=chunk)[174](index=174&type=chunk) - Immune Medicine Adjusted EBITDA deficit reduced by **$1.0 million** for the three months and **$2.4 million** for the six months ended June 30, 2025, driven by increased Genentech Agreement revenue and reduced operating expenses[161](index=161&type=chunk)[175](index=175&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial condition and operational results, highlighting improved net loss and Adjusted EBITDA driven by strong MRD revenue growth and cost management [Overview](index=30&type=section&id=Overview) - Adaptive Biotechnologies is an immune medicine company leveraging its proprietary platform, computational biology, and machine learning to decode the adaptive immune system for disease diagnosis and treatment[120](index=120&type=chunk) - The company's clonoSEQ clinical diagnostic test is FDA-authorized for MRD detection in multiple myeloma, B-cell ALL, and CLL, with expanded Medicare coverage for MCL[121](index=121&type=chunk) - Immune Medicine leverages immunosequencing technology and AI/ML for drug discovery, including a worldwide collaboration with Genentech for TCR-based cancer cell therapies[122](index=122&type=chunk) [Components of Results of Operations](index=31&type=section&id=Components%20of%20Results%20of%20Operations) - MRD revenue is expected to increase in the long term due to enhanced penetration in existing patient populations, expansion into new populations, and optimized payor coverage[130](index=130&type=chunk) - Immune Medicine revenue is expected to increase in the long term as the company or its collaborators advance therapies to commercialization[131](index=131&type=chunk) - Cost of revenue is expected to increase in absolute dollars but decrease per sample over the long term due to efficiencies from increased assay volume, automation, and value engineering[134](index=134&type=chunk) - Research and development expenses are expected to remain relatively consistent in the short term and decrease as a percentage of revenue in the long term[137](index=137&type=chunk) - Sales and marketing expenses are expected to increase in absolute dollars in the long term but decrease as a percentage of revenue due to increased marketing activities and adoption[139](index=139&type=chunk) - General and administrative expenses are expected to moderately increase in the short term and decrease as a percentage of revenue in the long term[141](index=141&type=chunk) [Statements of Operations Data and Other Financial and Operating Data](index=33&type=section&id=Statements%20of%20Operations%20Data%20and%20Other%20Financial%20and%20Operating%20Data) Statements of Operations Data (in thousands) | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | | :------------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | | Revenue | $58,879 | $43,190 | $111,322 | $85,063 | | Loss from operations | $(25,036) | $(47,318) | $(54,640) | $(96,080) | | Net loss attributable to Adaptive Biotechnologies Corporation | $(25,614) | $(46,222) | $(55,466) | $(93,729) | | Adjusted EBITDA | $(7,196) | $(21,446) | $(19,944) | $(49,626) | [Comparison of the Three Months Ended June 30, 2025 and 2024](index=34&type=section&id=Comparison%20of%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) Total revenue increased, driven by MRD growth, significantly reducing net loss and improving Adjusted EBITDA, with the MRD segment turning positive Financial Performance (3 Months Ended June 30, in thousands) | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | Change (YoY) | | :------------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :------------------------------------------------ | | Total Revenue | $58,879 | $43,190 | +36.3% | | MRD Revenue | $49,938 | $35,284 | +41.5% | | Immune Medicine Revenue | $8,941 | $7,906 | +13.1% | | Cost of Revenue | $17,999 | $19,317 | -7.2% | | Research and Development | $24,134 | $25,353 | -4.8% | | Sales and Marketing | $23,573 | $20,314 | +16.0% | | General and Administrative | $17,786 | $17,895 | -0.6% | | Impairment of Long-Lived Assets | $0 | $7,205 | -100% | | Net Loss attributable to Adaptive Biotechnologies Corporation | $(25,614) | $(46,222) | +44.6% (reduced loss) | | MRD Adjusted EBITDA | $1,912 | $(11,289) | +$13,201 | | Immune Medicine Adjusted EBITDA | $(6,069) | $(7,033) | +$964 (reduced deficit) | - clonoSEQ test volume increased by **37%** to **25,321 tests** delivered in the three months ended June 30, 2025[147](index=147&type=chunk) - The decrease in cost of revenue was primarily due to reductions in inventory reserve expense, assay costs, and overhead costs from reduced laboratory relocation activities[149](index=149&type=chunk) [Comparison of the Six Months Ended June 30, 2025 and 2024](index=37&type=section&id=Comparison%20of%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Total revenue increased, driven by MRD growth, leading to a significant reduction in net loss and improved Adjusted EBITDA across both segments Financial Performance (6 Months Ended June 30, in thousands) | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change (YoY) | | :------------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :------------------------------------------------ | | Total Revenue | $111,322 | $85,063 | +30.9% | | MRD Revenue | $93,659 | $67,910 | +37.9% | | Immune Medicine Revenue | $17,663 | $17,153 | +3.0% | | Cost of Revenue | $34,978 | $37,368 | -6.4% | | Research and Development | $48,337 | $55,598 | -13.1% | | Sales and Marketing | $46,620 | $42,633 | +9.4% | | General and Administrative | $35,185 | $37,492 | -6.1% | | Impairment of Long-Lived Assets | $0 | $7,205 | -100% | | Net Loss attributable to Adaptive Biotechnologies Corporation | $(55,466) | $(93,729) | +40.8% (reduced loss) | | MRD Adjusted EBITDA | $(2,199) | $(28,548) | +$26,349 (reduced deficit) | | Immune Medicine Adjusted EBITDA | $(11,515) | $(13,960) | +$2,445 (reduced deficit) | - clonoSEQ test volume increased by **36%** to **48,438 tests** delivered in the six months ended June 30, 2025[162](index=162&type=chunk) - The decrease in research and development expenses was primarily due to a **$5.7 million** decrease in personnel costs and a **$1.8 million** decrease in allocable facility expenses[166](index=166&type=chunk) [Adjusted EBITDA](index=39&type=section&id=Adjusted%20EBITDA) - Adjusted EBITDA is a non-GAAP financial measure used by management to evaluate business and segment financial performance and strategy effectiveness, excluding items not indicative of core operating performance[176](index=176&type=chunk)[177](index=177&type=chunk) Adjusted EBITDA Reconciliation (in thousands) | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net loss attributable to Adaptive Biotechnologies Corporation | $(25,614) | $(46,222) | $(55,466) | $(93,729) | | Adjusted EBITDA | $(7,196) | $(21,446) | $(19,944) | $(49,626) | - Adjusted EBITDA excludes interest and other income/expense, income tax, depreciation/amortization, impairment costs, restructuring expense, and share-based compensation[176](index=176&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, the company had an accumulated deficit of **$1.4 billion** and cash, cash equivalents, and marketable securities totaling **$222.0 million** (down from **$256.0 million** at December 31, 2024)[182](index=182&type=chunk)[183](index=183&type=chunk) - Management believes existing cash, cash equivalents, and marketable securities will be sufficient to fund operating expenses and capital expenditure requirements for at least the next **12 months**[184](index=184&type=chunk) - The company plans to use existing capital to fund commercial and marketing activities for clonoSEQ, streamline laboratory operations, and support drug discovery R&D initiatives[188](index=188&type=chunk) [Contractual Obligations](index=43&type=section&id=Contractual%20Obligations) - In March 2025, the company entered into a new **three-year, $17.5 million** commitment for certain cloud services[190](index=190&type=chunk) - There have been no other material changes to contractual obligations and commitments since the Annual Report on Form 10-K for the year ended December 31, 2024[190](index=190&type=chunk) [Cash Flows](index=43&type=section&id=Cash%20Flows) Cash Flow Activities (in thousands) | Cash Flow Activity (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :-------------------------------- | :--------------------------- | :--------------------------- | :----------- | | Net cash used in operating activities | $(40,914) | $(55,656) | +$14,742 (less cash used) | | Net cash provided by investing activities | $28,919 | $50,386 | -$21,467 | | Net cash provided by financing activities | $7,061 | $74 | +$6,987 | - The decrease in net cash used in operating activities was primarily driven by an increase in customer collections[194](index=194&type=chunk) - The increase in net cash provided by financing activities was due to an increase in proceeds from the exercise of stock options[196](index=196&type=chunk) [Net Operating Loss Carryforwards](index=44&type=section&id=Net%20Operating%20Loss%20Carryforwards) - Utilization of net operating loss (NOL) carryforwards and credits may be subject to annual limitations under Section 382 of the Internal Revenue Code[198](index=198&type=chunk) - Federal NOLs incurred in 2018 and future years can be carried forward indefinitely, but their deductibility is subject to an annual limitation[198](index=198&type=chunk) - A full valuation allowance was applied against net deferred tax assets as of December 31, 2024, as management determined it was not more likely than not that they would be realizable[198](index=198&type=chunk) [Critical Accounting Policies and Estimates](index=44&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - There have been no material changes to the company's critical accounting policies and estimates as previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024[200](index=200&type=chunk) - Key critical accounting policies include revenue recognition, imputing interest for the Purchase Agreement, goodwill, and recoverability and impairment of long-lived assets[202](index=202&type=chunk) [Recent Accounting Pronouncements](index=44&type=section&id=Recent%20Accounting%20Pronouncements) - Information regarding recent accounting pronouncements is provided in Note 2, Significant Accounting Policies, of the accompanying notes to the unaudited condensed consolidated financial statements[201](index=201&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses the company's exposure to market risks, primarily interest rate risk, and confirms no material changes since the last annual report - The company is exposed to market risk from changes in interest rates, primarily related to its cash, cash equivalents, and marketable securities[204](index=204&type=chunk) - There have been no material changes to the company's market risks as previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024[204](index=204&type=chunk) - The company does not enter into investments for trading purposes and has not used derivative financial instruments to manage interest rate risk[204](index=204&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the Chief Executive Officer and Chief Financial Officer, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, and reported no material changes to internal control over financial reporting - The company's disclosure controls and procedures were evaluated and deemed effective as of June 30, 2025, under the supervision of management, including the CEO and CFO[205](index=205&type=chunk) - There was no change in the company's internal control over financial reporting during the three months ended June 30, 2025, that materially affected or is reasonably likely to materially affect it[205](index=205&type=chunk) [PART II. OTHER INFORMATION](index=46&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings that are expected to have a material adverse effect on its business, financial condition, or results of operations - The company is not currently a party to or aware of any legal proceedings that are believed to have a material adverse effect on its business, financial condition, or results of operations[208](index=208&type=chunk) - Litigation, regardless of outcome, can negatively impact the company due to defense and settlement costs, diversion of management resources, and other factors[208](index=208&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the Annual Report on Form 10-K for a comprehensive discussion of risk factors, noting that there have been no material changes to these risks since the previous filing - Investing in the company's common stock involves a high degree of risk due to operating in a rapidly changing environment[209](index=209&type=chunk) - There have been no material changes to the risk factors described in the Annual Report on Form 10-K for the year ended December 31, 2024[209](index=209&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable to the current report - Not applicable[210](index=210&type=chunk) [Item 3. Defaults Upon Senior Securities](index=46&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the current report - Not applicable[211](index=211&type=chunk) [Item 4. Mine Safety Disclosures](index=46&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the current report - Not applicable[212](index=212&type=chunk) [Item 5. Other Information](index=46&type=section&id=Item%205.%20Other%20Information) This item is not applicable to the current report - Not applicable[213](index=213&type=chunk) [Item 6. Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including corporate governance documents, compensation policies, officer certifications, and XBRL interactive data files - Exhibits include the Amended and Restated Articles of Incorporation and Bylaws, and the Seventh Amended and Restated Investors' Rights Agreement[215](index=215&type=chunk) - Certifications of the Principal Executive Officer and Principal Financial Officer (pursuant to Rule 13a-14(a) and 18 U.S.C. Section 1350) are included[215](index=215&type=chunk) - The report includes Inline XBRL Instance Document, Taxonomy Extension Schema, and Cover Page Interactive Data File[215](index=215&type=chunk) [Signatures](index=48&type=section&id=Signatures) This section contains the official signatures of the company's Chief Executive Officer and Chief Financial Officer, certifying the filing of the report - The report was signed on August 5, 2025, by Chad Robins, Chief Executive Officer and Director, and Kyle Piskel, Chief Financial Officer[219](index=219&type=chunk)
Adaptive Biotechnologies(ADPT) - 2025 Q2 - Earnings Call Presentation
2025-08-05 20:30
Financial Performance - MRD revenue reached $49.9 million, a 42% year-over-year increase[6] - Excluding milestones, MRD revenue grew by 38% year-over-year[6] - Total revenue increased by 36% to $58.9 million[31] - Sequencing gross margin increased to 64%, up 14 percentage points year-over-year[6] - The company's cash position is strong at $222 million[6] - Q2 2025 cash burn was approximately $11 million, a 36% decrease compared to Q2 2024[6] MRD Business - Clinical testing revenue increased by 57% year-over-year in Q2 2025[9] - clonoSEQ US volume reached 24,624 tests in Q2 2025[10] - 44% of MRD tests were conducted in blood in Q2 2025[11] - MRD pharma backlog is approximately $218 million, a 21% year-over-year growth[19]
Adaptive Biotechnologies(ADPT) - 2025 Q2 - Quarterly Results
2025-08-05 20:15
[Q2 2025 Financial and Operational Highlights](index=1&type=section&id=Adaptive%20Biotechnologies%20Reports%20Second%20Quarter%202025%20Financial%20Results) [Second Quarter 2025 Financial Performance](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance) Adaptive Biotechnologies reported strong Q2 2025 results, with total revenue up 36% to $58.9 million, driven by MRD segment growth and profitability Financial Metric | Financial Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $58.9 million | $43.2 million | +36% | | **Net Loss** | $25.6 million | $46.2 million | Improved by 45% | | **Adjusted EBITDA (non-GAAP)** | ($7.2 million) | ($21.4 million) | Improved by 66% | Revenue Segment | Revenue Segment | Q2 2025 Revenue | YoY Growth | | :--- | :--- | :--- | | **MRD** | $49.9 million | +42% | | **Immune Medicine** | $8.9 million | +13% | - The Minimal Residual Disease (MRD) business segment achieved profitability in Q2 2025, reporting an **Adjusted EBITDA of $1.9 million**[5](index=5&type=chunk) - Operating expenses decreased by **7% to $83.9 million** in Q2 2025 from $90.5 million in Q2 2024, with only a 1% increase excluding a prior year impairment charge[6](index=6&type=chunk) [Key Operational Achievements](index=1&type=section&id=Key%20Operational%20Achievements) Operational achievements include a 37% increase in clonoSEQ test volume and strategic integration into Flatiron's OncoEMR - clonoSEQ test volume grew **37% to 25,321 tests** delivered compared to Q2 2024[5](index=5&type=chunk) - Strategic partnerships advanced with the launch and integration of clonoSEQ into Flatiron's OncoEMR, a leading electronic medical record platform for community oncology[5](index=5&type=chunk) - The company recognized **$5.5 million** in MRD pharma regulatory milestone revenue during the quarter[5](index=5&type=chunk) [Updated 2025 Financial Guidance](index=2&type=section&id=2025%20Updated%20Financial%20Guidance) Updated 2025 guidance reflects raised MRD revenue expectations and a lowered total company cash burn forecast Guidance Metric | Guidance Metric | Previous 2025 Range | Updated 2025 Range | | :--- | :--- | :--- | | **MRD Business Revenue** | $180M - $190M | $190M - $200M | | **Total Company Cash Burn** | $50M - $60M | $45M - $55M | - Full-year total company operating expenses, including the cost of revenue, are expected to be between **$335 million and $345 million**[9](index=9&type=chunk) - No revenue guidance is provided for the Immune Medicine business[9](index=9&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 statements show increased revenue and reduced operational and net losses, driven by growth and expense control Condensed Consolidated Statements of Operations (in thousands) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Revenue** | $58,879 | $43,190 | | **Total operating expenses** | $83,915 | $90,508 | | **Loss from operations** | ($25,036) | ($47,318) | | **Net loss** | ($25,593) | ($46,248) | | **Net loss per share** | ($0.17) | ($0.31) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The June 30, 2025 balance sheet shows $222.0 million in cash and equivalents, with total assets decreasing from operational cash usage Condensed Consolidated Balance Sheets (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash, cash equivalents & marketable securities** | $221,973 | $255,954 | | **Total current assets** | $261,856 | $283,752 | | **Total assets** | $496,637 | $539,376 | | **Total liabilities** | $317,101 | $336,891 | | **Total shareholders' equity** | $179,536 | $202,485 | [Non-GAAP Financial Measures and Segment Information](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Segment%20Information) [Reconciliation of Net Loss to Adjusted EBITDA](index=7&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) Q2 2025 Adjusted EBITDA loss improved to $7.2 million, reflecting higher revenue and lower operating expenses post non-cash adjustments Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Reconciliation (in thousands) | Three Months Ended June 30, 2025 | | :--- | :--- | | **Net loss attributable to Adaptive** | ($25,614) | | Interest and other income, net | ($2,391) | | Interest expense | $2,948 | | Depreciation and amortization expense | $4,502 | | Share-based compensation expense | $13,359 | | **Adjusted EBITDA** | **($7,196)** | [Segment Performance](index=8&type=section&id=Segment%20Performance) Segment data shows robust MRD growth with 42% revenue increase and positive Adjusted EBITDA, while Immune Medicine had modest growth and improved loss Segment Performance (in thousands) | Segment Performance (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **MRD Revenue** | $49,938 | $35,284 | | **MRD Adjusted EBITDA** | $1,912 | ($11,289) | | **Immune Medicine Revenue** | $8,941 | $7,906 | | **Immune Medicine Adjusted EBITDA** | ($6,069) | ($7,033) | - The MRD segment's Adjusted EBITDA turned positive in Q2 2025, marking a significant milestone towards profitability[25](index=25&type=chunk)
Adaptive Biotechnologies Reports Second Quarter 2025 Financial Results
Globenewswire· 2025-08-05 20:05
Core Insights - Adaptive Biotechnologies reported strong financial results for Q2 2025, achieving profitability in its Minimal Residual Disease (MRD) business with significant revenue growth [2][4][8] - The company raised its MRD revenue guidance for the full year 2025, reflecting confidence in continued growth [8] Financial Performance - Total revenue for Q2 2025 was $58.9 million, a 36% increase from Q2 2024 [4] - MRD revenue reached $49.9 million, marking a 42% increase year-over-year, while Immune Medicine revenue was $8.9 million, up 13% [4] - Operating expenses decreased to $83.9 million from $90.5 million in the prior year, a 7% reduction [5] - The net loss for Q2 2025 was $25.6 million, significantly improved from a loss of $46.2 million in Q2 2024 [6] Adjusted EBITDA and Cash Position - Adjusted EBITDA for Q2 2025 was a loss of $7.2 million, an improvement from a loss of $21.4 million in the same quarter last year [7][26] - As of June 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $222.0 million [7] Updated Financial Guidance - The company updated its full-year MRD revenue guidance to a range of $190 million to $200 million, up from the previous range of $180 million to $190 million, indicating an expected annual growth of 31% to 37% [8] - Total company operating expenses for the full year are expected to be between $335 million and $345 million, with cash burn guidance reduced to $45 million to $55 million [9]
Adaptive Biotechnologies to Report Second Quarter 2025 Financial Results on August 5, 2025
Globenewswire· 2025-07-15 20:05
Core Insights - Adaptive Biotechnologies Corporation will report its financial results for Q2 2025 on August 5, 2025, after market close [1] - A conference call will follow the financial results announcement, starting at 1:30 p.m. Pacific Time [1] Company Overview - Adaptive Biotechnologies is a commercial-stage biotechnology company focused on utilizing the adaptive immune system for disease diagnosis and treatment [3] - The company aims to decode the adaptive immune system's genetics to enhance medical capabilities in diagnosing and treating diseases [3] - Its proprietary immune medicine platform is designed to provide scalable, precise, and rapid insights into the adaptive immune system [3] - The company operates in two business segments: Minimal Residual Disease (MRD) and Immune Medicine, targeting diseases such as cancer and autoimmune disorders [3] - The goal is to develop and commercialize immune-driven clinical products tailored to individual patients [3]
Are Medical Stocks Lagging Adaptive Biotechnologies (ADPT) This Year?
ZACKS· 2025-07-04 14:40
Company Performance - Adaptive Biotechnologies (ADPT) has gained approximately 96.8% year-to-date, significantly outperforming the average return of -3.1% for Medical companies [4] - The Zacks Consensus Estimate for ADPT's full-year earnings has increased by 5.5% over the past 90 days, indicating improved analyst sentiment and a stronger earnings outlook [4] - Adaptive Biotechnologies holds a Zacks Rank of 2 (Buy), suggesting it has favorable characteristics to outperform the market in the near term [3] Industry Context - Adaptive Biotechnologies is part of the Medical - Biomedical and Genetics industry, which consists of 495 companies and currently ranks 85 in the Zacks Industry Rank [6] - The average performance of the Medical - Biomedical and Genetics industry has seen a loss of 1.1% year-to-date, highlighting ADPT's superior performance within its industry [6] - Another company in the same sector, Anavex Life Sciences (AVXL), has also shown strong performance with a year-to-date increase of 0.5% and a Zacks Rank of 2 (Buy) [5][6]
Adaptive Biotechnologies and Flatiron Health Announce Integration of clonoSEQ® MRD Testing into OncoEMR®
Globenewswire· 2025-07-01 11:30
Core Viewpoint - The integration of Adaptive Biotechnologies' clonoSEQ test for measurable residual disease (MRD) assessment into Flatiron Health's OncoEMR platform enhances access to MRD testing for clinicians, improving treatment decision-making for blood cancer patients [1][2][3][4]. Company Overview - Adaptive Biotechnologies is a commercial-stage biotechnology company focused on translating the genetics of the adaptive immune system into clinical products for disease diagnosis and treatment [8][9]. - Flatiron Health is a healthtech company dedicated to advancing point-of-care solutions in oncology, utilizing data to improve cancer care [10]. Product Integration - The clonoSEQ test will be integrated into OncoEMR, allowing over 4,500 clinicians across 1,000 community-based cancer care locations in the U.S. to order and review MRD testing results directly within the EMR [2][4]. - This integration aims to streamline access to MRD data, enabling community clinicians to make more informed treatment decisions for blood cancer patients [3][4]. Clinical Significance - clonoSEQ is the first FDA-cleared in vitro diagnostic test for detecting and tracking MRD in multiple myeloma, B-cell acute lymphoblastic leukemia, and chronic lymphocytic leukemia, among other lymphoid cancers [5][6]. - The test can detect one cancer cell in one million healthy cells, providing precise monitoring of MRD over time, which is crucial for predicting patient outcomes and informing treatment strategies [6][7]. Market Impact - The integration of clonoSEQ into OncoEMR is expected to enhance the efficiency of testing workflows and provide real-time insights into patients' disease status, ultimately improving patient care in community oncology settings [2][4][11].
Adaptive Biotechnologies (ADPT) Surges 12.5%: Is This an Indication of Further Gains?
ZACKS· 2025-06-26 14:51
Company Overview - Adaptive Biotechnologies (ADPT) shares increased by 12.5% to close at $11.98, with a notable trading volume compared to normal sessions, and a total gain of 16.5% over the past four weeks [1][2] Financial Performance - The company is expected to report a quarterly loss of $0.24 per share, reflecting a year-over-year change of +7.7%, while revenues are projected to be $49.7 million, an increase of 15.1% from the same quarter last year [3] - The consensus EPS estimate for the upcoming quarter has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - Adaptive Biotechnologies operates within the Zacks Medical - Biomedical and Genetics industry, where another company, Fortrea Holdings Inc. (FTRE), experienced a 2.4% decline to $5.19, despite a 28% return over the past month [5] - Fortrea Holdings Inc. has a consensus EPS estimate of $0.06 for the upcoming report, representing a significant year-over-year change of +300%, and currently holds a Zacks Rank of 2 (Buy) [6]
What Makes Adaptive Biotechnologies (ADPT) a New Buy Stock
ZACKS· 2025-06-13 17:01
Core Viewpoint - Adaptive Biotechnologies (ADPT) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Outlook - The Zacks rating system reflects changes in earnings estimates, which are crucial for predicting near-term stock price movements [2][4]. - The recent upgrade for Adaptive Biotechnologies suggests an improvement in the company's underlying business, likely leading to an increase in stock price [5]. Earnings Estimate Revisions - The Zacks Consensus Estimate for Adaptive Biotechnologies has increased by 5.5% over the past three months, with expected earnings of -$0.87 per share for the fiscal year ending December 2025, showing no year-over-year change [8]. - The correlation between earnings estimate revisions and stock price movements is strong, making it beneficial for investors to track these revisions [6]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The upgrade to Zacks Rank 2 places Adaptive Biotechnologies in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].
Adaptive Biotechnologies (ADPT) FY Conference Transcript
2025-06-11 13:40
Summary of Adaptive Biotechnologies (ADPT) FY Conference Call - June 11, 2025 Company Overview - **Company**: Adaptive Biotechnologies (ADPT) - **Industry**: Life Sciences, Diagnostics Key Highlights 1. **Strong Q1 Performance**: The first quarter of 2025 was noted as the best in Adaptive's history, with significant growth in clinical volumes and margin expansion, achieving a volume growth target increase from 25% to 30% [3][4][6] 2. **Average Selling Price (ASP)**: The company is targeting an average selling price of $1,300 for the year, with confidence in achieving this figure based on strong ASP trends [4][30] 3. **EMR Integrations**: Integration of Electronic Medical Records (EMR) is expected to drive significant volume growth, with projections that 50% of order volume will come from EMR integrations by year-end [9][10] 4. **Community Engagement**: 60% of blood cancer patients are treated in community settings, and Adaptive is focusing on expanding its presence in these areas to increase testing frequency [13][14] 5. **New Indications**: The launch of new indications, such as MCL (Mantle Cell Lymphoma) with Medicare coverage, is expected to contribute to growth, with a lifetime value of approximately $15,000 per MCL patient [15][20] 6. **Blood-Based Testing Growth**: Blood-based testing is becoming increasingly important, with a notable increase in testing frequency for ALL (Acute Lymphoblastic Leukemia) from 23% to 37% [25][26] 7. **Payer Contracts**: The company has successfully renegotiated contracts with major payers at or near Medicare rates, ensuring the value of their tests is maintained [27][28] 8. **Partnership with NeoGenomics**: Progress is being made towards a Phase one launch in the second half of the year, with expectations of a 26-27% uplift in volume from this partnership [39][42] 9. **Transition to NovaSeq X**: The transition to NovaSeq X is anticipated to improve margins by 5-8 percentage points within twelve months, with a long-term goal of achieving double-digit margin improvements [58][62] 10. **Research and Development Focus**: The company plans to continue investing in R&D for assay enhancements and blood-based testing, while maintaining a budget of $80-90 million for the entire company [66] Additional Insights - **Market Dynamics**: The company is monitoring the impact of political changes on pharma customers but has not observed any slowdown in trial initiations [38] - **Long-Term Margin Goals**: The company aims for gross margins of over 70% and EBITDA margins exceeding 20% in the MRD segment [70] - **Upcoming Data Readouts**: Significant data readouts are expected at ASH, with studies demonstrating the clinical utility of MRD in guiding therapy decisions [71][73] This summary encapsulates the key points discussed during the conference call, highlighting the company's performance, strategic initiatives, and future outlook in the diagnostics industry.