Summary of Seer Inc. Conference Call Company Overview - **Company**: Seer Inc. - **Industry**: Tools and diagnostics in the healthcare sector Key Points and Arguments Company Performance and Growth - Seer experienced substantial growth in 2025, with a **67% increase** in install base, reaching **82 instruments** [5] - Year-over-year consumable volume increased by **70%** [5] - Publications from customers rose from approximately **35** to **76**, with many appearing in high-impact journals [5] - Seer successfully conducted three population-scale studies using deep unbiased proteomics, with sample sizes of **10,000+** and **20,000+** [6] Product Development and Innovation - Launched the **Proteograph ONE Assay** in June 2025, which significantly improved operational efficiency by reducing runtime from **8.5 hours to 4.5 hours** and increasing throughput to **80 samples per run** [6][7] - The company aims for revenue growth of **50% to 100%** annually, emphasizing the need to build a market for their product [8] Market Strategy and Customer Engagement - Introduced the **Seer Technology Access Center (STAC)** to lower barriers for customer adoption, with **50%** of the install base in 2025 being previous STAC users [12] - The **Strategic Instrument Replacement Program (SIP)** allowed customers to test instruments with a significant upfront consumable purchase, leading to a **60% conversion rate** from loans to purchases [13] - Addressed bottlenecks in unbiased proteomics through various upgrades, including the **Proteograph Analysis Suite** [14] Financial Outlook and Market Challenges - Guidance for 2026 anticipates total revenue between **$16 million and $18 million**, with a growth rate of **3%** at the midpoint [9] - The company faces challenges from funding constraints in the academic market and NIH, impacting customer budgets [16][42] - Despite these challenges, discussions with population-scale cohorts are ongoing, indicating potential for future revenue growth [16] Competitive Landscape - Seer claims to have a unique position in the protein enrichment space, with over **200 patents** supporting their technology [45] - Competitors are noted to be inferior in performance, as evidenced by customer publications [45] - Seer emphasizes the importance of innovation over competition, focusing on moving the goalpost forward [45] Future Developments - A new detector, purpose-built for deep unbiased proteomics, is expected to change the landscape of the field, with data to be shared in the second half of the year [33][35] - The company remains optimistic about future growth, with a strong belief in the value of their technology and its potential impact on the market [48] Additional Important Insights - The company has maintained a **low operational expenditure (OpEx)** while investing in innovation, demonstrating financial discipline [37] - The gross margin is currently in the low **50% range**, with consumables driving the majority of profitability [18] - Seer is committed to competitive pricing to facilitate adoption, particularly in population studies, while ensuring the value of their offerings is recognized [19] This summary encapsulates the key insights from Seer Inc.'s conference call, highlighting the company's growth, product innovations, market strategies, and future outlook in the diagnostics industry.

Financial Performance - The company incurred net losses of $73.6 million and $86.6 million in 2025 and 2024, respectively, with an accumulated deficit of $466.0 million as of December 31, 2025[154]. - The company expects to continue incurring significant losses as it invests in the development and commercialization of the Proteograph Product Suite and related products[154]. - The company's operating results may fluctuate significantly, making future performance difficult to predict and potentially causing stock price volatility[158]. - The company may need to raise additional capital due to potential liquidity requirements, which could involve issuing equity or debt securities[234][235]. - The company has not paid dividends in the past and does not expect to pay dividends in the future, focusing instead on retaining earnings for operations and R&D[339]. - As of December 31, 2025, the company had U.S. federal net operating loss carryforwards (NOLs) of $262.4 million and state NOLs of $226.6 million, expiring in 2035 for state purposes[347]. - Changes in ownership may limit the NOLs available for U.S. federal income tax purposes, potentially increasing tax liabilities[348]. - Recent California legislation limits the use of state NOLs for tax years beginning on or after January 1, 2024, which may affect the company's ability to utilize NOLs even if profitability is achieved[349]. Market and Product Development - The company is in the commercialization stage of the Proteograph Product Suite, which may not achieve broad scientific and market acceptance, impacting future revenues[169]. - The market for the Proteograph Product Suite may be smaller than estimated, and new market opportunities may not develop as quickly as anticipated, limiting sales potential[163]. - The success of the Proteograph Product Suite depends on the ability to establish its value proposition with key opinion leaders and customers[165]. - The company expects to generate substantially all of its revenue from the sale of the Proteograph Product Suite and associated consumables and services for the foreseeable future[194]. - The successful commercialization of the Proteograph Product Suite depends on the company's ability to enhance and improve the product, as well as introduce new products and services[179]. - The company plans to increase sales and marketing efforts to drive market adoption of the Proteograph Product Suite[237]. Risks and Challenges - The company faces risks related to the timing and cost of research and development activities, which may impact revenue generation[158]. - The company has a limited operating history, making it challenging to evaluate its current business and future viability[155]. - The commercialization of the Proteograph Product Suite may be hindered by delays in sales cycles and manufacturing ramp-up[172]. - The company faces risks in attracting and retaining a qualified sales, marketing, and customer service team necessary for the commercialization of the Proteograph Product Suite[178]. - The development cycle for new life sciences products is lengthy and complex, which may affect the timely introduction of new technologies or products[180]. - Adverse developments in the financial services industry could impair the company's ability to access cash and meet financial obligations[186]. - The company may need to implement additional cost-saving measures, including workforce reductions, which could impact its ability to pursue new opportunities[191]. - Recent budget cuts and layoffs at federal agencies, including the NIH, have created uncertainty and may lead to reduced funding for life sciences research, adversely affecting customer purchases of the company's products[201]. Supply Chain and Manufacturing - The company relies on a single contract manufacturer, Hamilton Company, for the Proteograph Product Suite, which poses risks related to supply and potential price increases[203]. - The complexity of manufacturing the Proteograph Product Suite may lead to difficulties in consistently meeting quality specifications and production timelines, impacting revenue generation[206]. - The company faces risks associated with the sourcing of components from limited suppliers, which could disrupt the supply chain and affect product delivery[205]. - As the company scales commercially, it may encounter challenges in maintaining product quality while increasing production volumes, potentially leading to defects and recalls[209]. - The company relies on commercial carriers for timely product delivery, and any disruptions in these services could harm its business operations[176]. Regulatory and Compliance - Compliance with international regulations, such as the GDPR, poses significant risks and could increase operational costs, affecting revenue and business operations[221]. - The company’s products are currently labeled as research use only (RUO) and are not intended for diagnostic procedures, which may require FDA approval if marketed for clinical diagnostics[251]. - Future regulatory compliance may necessitate the company to register as a medical device manufacturer, subjecting it to ongoing FDA controls and inspections[252]. - The FDA plans to reclassify certain high-risk in vitro diagnostics as Class II devices, which may require the company to invest significantly in obtaining FDA clearance[253]. - Legislative changes regarding FDA oversight of laboratory developed tests (LDTs) could affect the regulatory landscape and the company's ability to market its products[259]. Intellectual Property - The company relies on patent protection for its products, and failure to maintain adequate intellectual property rights could impair its competitive position[263]. - The patent application process is complex and costly, and the company may fail to secure necessary patents in a timely manner, affecting its market position[266]. - Changes in patent laws or interpretations may diminish the value of the company's intellectual property, leading to increased competition[268]. - The U.S. patent law landscape is uncertain and rapidly changing, which may adversely impact the company's existing patents and future patent applications[269]. - The company may face challenges in protecting its intellectual property rights globally, as some foreign jurisdictions do not offer the same level of protection as the U.S.[276]. - The company may face significant costs associated with defending against third-party claims of infringement, which could impact its financial resources[301]. - The company relies on a license from BWH for patents related to the Proteograph Product Suite, which is critical for its operations[307]. - The company may face litigation if it fails to comply with license agreements, which could lead to substantial costs and distract management[310]. Corporate Governance - The company has a share repurchase program authorized for up to $25.0 million of its Class A common stock, subject to market conditions and capital availability[335]. - The market price of the company's Class A common stock has been volatile, influenced by factors such as product launches, operating results, and market conditions[326]. - The company may fail to maintain compliance with Nasdaq listing requirements, which could lead to delisting and negatively impact stock price and capital access[324]. - The multi-class structure of the company's common stock may concentrate voting control and depress the trading price of Class A common stock[329]. - The company’s anti-takeover provisions may discourage changes in control, potentially affecting the trading price of its Class A common stock[344]. - Certain amendments to the company's bylaws require approval from stockholders holding two-thirds of the voting power, which may limit stockholder actions[345].

Core Insights - Seer has demonstrated significant platform adoption through large-scale studies, including a 20,000-sample study with Korea University and a 10,000-sample project with Discovery Life Sciences, which traditional methods could not feasibly conduct [1] - Despite a challenging funding environment, Seer reported a 67% increase in installed instruments and a 69% year-over-year growth in consumable kit volume, with total revenue excluding related-party revenue growing by 33% in 2025 [2] - The company faced project delays due to NIH funding issues, which impacted customer purchasing decisions and led to results falling short of expectations [3] Financial Performance - Seer reported Q4 2025 revenue of $4.2 million and full-year revenue of $16.6 million, reflecting a 17% year-over-year growth, but cited budget pressures and NIH funding uncertainty as challenges [4] - The gross margin for Q4 was approximately 52%, with operating expenses down 23% year-over-year, resulting in a narrowed net loss of $16 million for the quarter [12][13] - For the full year, Seer ended with about $241 million in cash and investments, with a free cash flow loss of $45.6 million, an improvement from the previous year [14] Product Development and Roadmap - Seer launched its third-generation assay, Proteograph ONE, and its second-generation automation instrument, SP200, which can now process over 1,000 samples per week [7] - The company plans to release the fourth generation of its Proteograph Analysis Suite (PAS) in late 2026, incorporating AI capabilities for enhanced data interaction [7][8] - Seer is developing an end-to-end sample-to-data proteomic solution aimed at high-throughput biomarker discovery, with data expected to be shared in 2026 [9] Commercial Strategy - Approximately 60% of instruments installed in 2025 were through the Strategic Instrument Placement program, which helps customers with capital constraints [10] - Seer has expanded its partnership with Thermo Fisher Scientific to co-market the Proteograph product suite, targeting both individual accounts and large studies [11] - The company is also focusing on expanding into translational markets with plans to commercialize a proteoform profiling assay kit in 2027 [8] Future Guidance - For 2026, Seer projects revenue between $16 million and $18 million, indicating a modest growth outlook amid ongoing funding pressures [17] - The guidance does not account for potential contributions from additional population-scale studies that may be announced in 2026, which could provide upside [18] - Management views the guidance as cautious due to the current funding landscape and the challenges in shifting customer approaches to unbiased proteomics workflows [19]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $4.2 million, bringing full year 2025 revenue to $16.6 million, representing 17% year-over-year growth [4][27] - Total revenue for the fourth quarter of 2025 increased by 5% compared to $4 million in the fourth quarter of 2024, primarily due to higher product revenue [24] - Net loss for the fourth quarter of 2025 was $16 million, compared to $21.7 million in the fourth quarter of 2024 [26] Business Line Data and Key Metrics Changes - Product revenue for the fourth quarter of 2025 was $2.8 million, consisting of sales of Proteograph instruments and consumable kits [24] - Consumable kit volume increased by approximately 69% year-over-year, demonstrating increasing utilization of technology [28] - Total gross profit for the full year 2025 was $8.5 million, representing a gross margin of 51%, compared to $7.1 million in 2024 [30] Market Data and Key Metrics Changes - The installed base of instruments as of year-end 2025 was 82 instruments, representing a 67% increase from 49 at the end of 2024 [29] - Approximately 60% of the instruments installed in 2025 were part of the Strategic Instrument Placement program [21] - Cumulative publications nearly doubled from 36 at the end of 2024 to 70 at the end of 2025, reflecting growing validation around technology [17] Company Strategy and Development Direction - Innovation is a key strategic differentiator, with a focus on building a durable, world-class life science tools company [8] - The company plans to commercialize a proteoform profiling assay kit in 2027, expanding the utility of its platform for a broader range of proteomics applications [14] - The board of directors has authorized an additional $25 million share repurchase program, reflecting confidence in long-term intrinsic value [32] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing budgetary pressures and uncertainty around NIH funding impacting customer spending decisions [4] - The guidance for 2026 expects revenue to be in the range of $16 million-$18 million, reflecting ongoing pressure on instrument placements and new project funding [34][35] - Management expressed optimism about the potential for revenue growth once the activation energy for customers to shift to the new platform is realized [45] Other Important Information - The company ended the year with approximately $241 million in cash equivalents and investments, sufficient capital to reach cash flow breakeven [33] - A tax benefit preservation plan was adopted to help preserve and protect net operating loss carry-forwards and other tax assets [34] Q&A Session Summary Question: Can you walk us through some of the puts and takes of the quarter? - Management indicated that NIH funding delays impacted customer purchases, leading to lower revenue than expected [40][41] Question: With the momentum seen in 2025, why is growth not expected to be better in 2026? - Management acknowledged the growth in instrument placements but emphasized the need for clear momentum before adjusting revenue projections [43][47] Question: Are there any other factors limiting adoption beyond the funding environment? - Management noted that the evidence from customer data is growing, and the scientific community is recognizing the value of untargeted proteomics [49][51]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $4.2 million, bringing full year 2025 revenue to $16.6 million, representing 17% year-over-year growth [4][27] - Total revenue for the fourth quarter of 2025 increased by 5% compared to $4 million in the fourth quarter of 2024, primarily due to higher product revenue [24] - Net loss for the fourth quarter of 2025 was $16 million, compared to $21.7 million in the fourth quarter of 2024 [26] Business Line Data and Key Metrics Changes - Product revenue for the fourth quarter of 2025 was $2.8 million, consisting of sales of Proteograph instruments and consumable kits [24] - Consumable kit volume increased by approximately 69% year-over-year, demonstrating increasing utilization of technology [28] - Total gross profit for the full year 2025 was $8.5 million, representing a gross margin of 51%, compared to $7.1 million in 2024 [30] Market Data and Key Metrics Changes - The installed base of instruments grew by 67% to 82 instruments by the end of 2025 [29] - Approximately 60% of the instruments installed in 2025 were part of the Strategic Instrument Placement program [21] - The consumable spend across the installed base represents a pull-through per instrument of approximately $113,000 [29] Company Strategy and Development Direction - Innovation is a key strategic differentiator, with a focus on building a durable, world-class life science tools company [8] - The company plans to commercialize a proteoform profiling assay kit in 2027, expanding its addressable market opportunity [14] - The board of directors has authorized an additional $25 million share repurchase program due to perceived dislocation in share price [32] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing budgetary pressures and uncertainty around NIH funding impacting customer spending decisions [4] - The guidance for 2026 expects revenue to be in the range of $16 million-$18 million, reflecting ongoing pressure on instrument placements and new project funding [34][35] - Management expressed confidence in the transformative potential of their technology and the growing demand for unbiased proteomics [7][38] Other Important Information - The company ended the year with approximately $241 million in cash equivalents and investments, sufficient to reach cash flow breakeven [33] - A tax benefit preservation plan was adopted to protect net operating loss carry-forwards, with an NOL balance of approximately $262 million [34] Q&A Session Summary Question: Can you walk us through some of the puts and takes of the quarter? - Management indicated that NIH funding delays impacted customer purchases, leading to lower revenue than expected [40] Question: Can you walk us through the guide for 2026? - Management acknowledged the momentum in 2025 but emphasized caution due to ongoing NIH funding uncertainties [41][42] Question: Are there any other factors limiting adoption beyond the funding environment? - Management highlighted that customer feedback is positive, with increasing recognition of the value of untargeted proteomics [47][48]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $4.2 million, bringing full year 2025 revenue to $16.6 million, representing 17% year-over-year growth [4][27] - Total revenue for the fourth quarter of 2025 increased by 5% compared to $4 million in the fourth quarter of 2024, primarily due to higher product revenue [24] - Net loss for the fourth quarter of 2025 was $16 million, compared to $21.7 million in the fourth quarter of 2024 [26] Business Line Data and Key Metrics Changes - Product revenue for the fourth quarter of 2025 was $2.8 million, consisting of sales of Proteograph instruments and consumable kits [24] - Service revenue for the fourth quarter of 2025 was $1.2 million, primarily from STAC service projects [24] - Consumable kit volume increased by approximately 69% year-over-year, reflecting increasing utilization of technology [28] Market Data and Key Metrics Changes - The installed base of instruments grew by 67% to 82 instruments by the end of 2025 [30] - Approximately 60% of the instruments installed in 2025 were part of the Strategic Instrument Placement program [21] - The company recognized $761,000 of related party revenue in 2025, compared to $2.3 million in 2024, indicating a transition in customer focus [27] Company Strategy and Development Direction - Innovation is a key strategic differentiator, with a focus on building a world-class life science tools company [8] - The company plans to commercialize a proteoform profiling assay kit in 2027, expanding its addressable market [13] - The board has authorized an additional $25 million share repurchase program, reflecting confidence in long-term intrinsic value [33] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing budgetary pressures and uncertainty around NIH funding impacting customer spending decisions [4] - The guidance for 2026 expects revenue in the range of $16 million to $18 million, reflecting cautious customer behavior due to funding uncertainties [35][36] - Management expressed optimism about the potential for significant revenue growth once the value of the new platform becomes clear [47] Other Important Information - The company ended the year with approximately $241 million in cash equivalents and investments, sufficient to reach cash flow breakeven [34] - A tax benefit preservation plan was adopted to protect net operating loss carry-forwards, with an NOL balance of approximately $262 million [35] Q&A Session Summary Question: Can you walk us through some of the challenges in the fourth quarter? - Management indicated that delays in NIH funding caused some customers to postpone purchases from the fourth quarter into 2026 [42] Question: What factors are limiting growth in 2026 despite momentum in 2025? - Management acknowledged that while there is momentum, the cautious spending environment and the need for clear momentum in customer engagement are challenges [44][45] Question: Are there any other factors limiting adoption beyond funding? - Management noted that the growing body of publications and customer feedback reflects the profound biological insights enabled by untargeted proteomics [50]

Q4 & FY 2025 Earnings Call February 26, 2026 Safe harbor disclosures Certain statements in this presentation and the accompanying oral commentary are forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact could be deemed forward-looking. These forward- looking statements relate to future events or results of Seer, Inc. (the "Company") and involve known and unknown risks, uncertainties and other factors that may cause the actual r ...

Revenue Growth - Revenue for Q4 2025 was $4.2 million, a 5% increase from $4.0 million in Q4 2024, driven by higher product revenue [4]. - Full year 2025 revenue reached $16.6 million, a 17% increase from $14.2 million in 2024, attributed to increased product sales and service revenue [8]. - Seer expects full year 2026 revenue to be in the range of $16 million to $18 million, indicating approximately 3% growth at the midpoint over 2025 [11]. Installed Base - The installed base grew to 82 instruments, representing a 67% year-over-year increase, with 33 instruments installed during 2025 [7]. Profitability and Loss - Gross profit for Q4 2025 was $2.2 million, with a gross margin of 52% [5]. - Net loss for Q4 2025 was $16.0 million, an improvement from a net loss of $21.7 million in Q4 2024 [6]. - Full year 2025 net loss was $73.6 million, compared to a net loss of $86.6 million in 2024 [10]. Operating Expenses - Operating expenses decreased by 23% to $19.6 million in Q4 2025, down from $25.5 million in Q4 2024 [5]. Financial Position - Cash, cash equivalents, and investments totaled approximately $240.6 million as of December 31, 2025 [10]. Research and Development - Significant customer studies published in Nature and Nature Genetics demonstrated the capabilities of the Proteograph for biomarker discovery [7].

Core Viewpoint - Seer, Inc. has adopted a tax benefit preservation plan (NOL Plan) to protect its net operating loss carryforwards and other tax assets, which are valued at approximately $262 million as of December 31, 2025 [2][3]. Group 1: NOL Plan Details - The NOL Plan aims to prevent substantial impairment of Seer's NOLs due to potential ownership changes as defined by Section 382 of the Internal Revenue Code [3]. - The plan creates a disincentive for shareholders to accumulate beneficial ownership of 4.9% or more of Seer's Class A common stock without Board approval [5]. - The NOL Plan will be submitted for ratification at Seer's 2026 annual meeting and will expire on February 25, 2029, unless ratified, in which case it will expire on February 25, 2027 [4][7]. Group 2: Shareholder Rights and Dividends - A dividend of one "right" will be issued for each outstanding share of Seer's Class A common stock to shareholders of record as of March 9, 2026, which is not taxable to Seer or its shareholders [6]. - Shareholders who own 4.9% or more of Seer's Class A common stock prior to the announcement can maintain their ownership but cannot acquire additional shares without Board approval [5]. Group 3: Company Overview - Seer, Inc. specializes in deep proteomics, providing insights that are scalable, precise, and reproducible, overcoming challenges faced by traditional proteomic methods [8].

Core Insights - Seer, Inc. reported financial results for Q4 and full year 2025, highlighting a challenging year due to budgetary pressures and NIH funding uncertainty, but noted significant progress in business growth and product adoption [3][4]. Financial Performance - Q4 2025 revenue was $4.2 million, a 5% increase from $4.0 million in Q4 2024, driven by higher product revenue [4]. - Full year 2025 revenue reached $16.6 million, a 17% increase from $14.2 million in 2024, attributed to increased product sales and service revenue [7]. - Gross profit for Q4 2025 was $2.2 million with a gross margin of 52%, while for the full year, gross profit was $8.5 million with a gross margin of 51% [5][8]. - Operating expenses for Q4 2025 were $19.6 million, a 23% decrease from $25.5 million in Q4 2024, primarily due to reduced stock-based compensation and other costs [5]. - The net loss for Q4 2025 was $16.0 million, an improvement from a net loss of $21.7 million in the same period of the previous year [6]. Business Growth and Developments - The installed base of instruments grew to 82, representing a 67% year-over-year increase, with 33 instruments installed during 2025 [10]. - Seer’s Proteograph was selected for multiple population-scale studies, and significant customer studies were published in reputable journals, showcasing its capabilities [3][10]. - The company ended 2025 with approximately $240.6 million in cash, cash equivalents, and investments [11]. Future Outlook - For 2026, Seer expects revenue to be in the range of $16 million to $18 million, indicating a projected growth of approximately 3% at the midpoint compared to 2025 [12].