Financial Performance - Quarterly net sales increased by 42% year-over-year to $155.9 million, and net sales for the nine months ended September 30, 2025, reached $443.1 million, up from $391.6 million in the prior year[3][4][5] - Gross profit for the third quarter was $66.6 million, representing a gross profit margin of 42.7%, compared to 36.6% in the same quarter last year[6][7] - Adjusted EBITDA for the third quarter was $29.8 million, with an Adjusted EBITDA margin of 19.1%, an increase of 670 basis points year-over-year[10][11] - Net income for the third quarter was $10.9 million, or $0.27 per diluted share, compared to $3.7 million, or $0.09 per diluted share, in the same quarter last year[8][5] - Operating income for the nine months ended September 30, 2025, was $46.9 million, compared to $37.4 million for the same period in 2024, reflecting a 25.5% increase[27] - Net income for the nine months ended September 30, 2025, was $32.4 million, a 40% increase from $23.2 million in 2024[28] - Adjusted EBITDA for the nine months ended September 30, 2025, reached $66,335,000, with an adjusted EBITDA margin of 19.1% for the three months ended September 30, 2025[31] - The EBITDA for the last twelve months was reported at $96,420,000, showcasing strong operational performance[31] Cash and Debt Management - Cash and cash equivalents increased by $25.9 million to $150.9 million as of September 30, 2025, while total debt rose by $88.0 million to $311.2 million[16] - Cash and cash equivalents increased to $150.9 million as of September 30, 2025, from $124.9 million at the end of 2024[28] - Total assets grew to $792.1 million as of September 30, 2025, compared to $652.7 million at the end of 2024, marking a 21.4% increase[26] - Total liabilities increased to $451.7 million as of September 30, 2025, from $341.2 million at the end of 2024, representing a 32.5% rise[26] Business Developments - The company announced an agreement to acquire TYR Tactical for $175 million, expected to close in the first half of 2026, which produced approximately $92.6 million in revenue in 2024[14] - Med-Eng, a subsidiary, was awarded a $50 million contract by the Department of Defense, with the first purchase order of $10 million to be shipped in 2026[15] - Organic backlog increased by $20 million from Q2 to Q3 2025, indicating strong demand and growth potential[1] Expenses and Costs - Operating expenses for the nine months ended September 30, 2025, totaled $140.1 million, up from $118.9 million in 2024, reflecting a 17.5% increase[27] - The company incurred $89.6 million in business acquisitions during the nine months ended September 30, 2025[28] - Depreciation and amortization expenses for the year ended December 31, 2024, totaled $16,420,000, and interest expense, net, was $7,822,000 for the same period[31] - Restructuring and transaction costs amounted to $7,757,000 for the year ended December 31, 2024, reflecting significant transaction-related expenses[31] - Stock-based compensation expense was $8,369,000 for the year ended December 31, 2024, indicating a substantial investment in employee incentives[31] - The company incurred contingent consideration expenses of $1,185,000 related to the acquisition of ICOR[31] Dividends and Shareholder Returns - The company declared a quarterly cash dividend of $0.095 per share, with an annualized basis of $0.38 per share[17] Currency and Other Expenses - Other net expenses included a loss of $1,555,000 for the three months ended September 30, 2025, primarily due to foreign currency fluctuations[31] - The company reported a net provision for income taxes of $18,085,000 for the year ended December 31, 2024[31]

Financial Performance - Revenues for the nine months ended September 30, 2025, were $0.8 million, a decrease of $1.0 million, or 53%, compared to $1.8 million in 2024, primarily due to decreased participant demand for the Bahamas Registry Trial and reduced contract manufacturing services[13] - Clinical trial revenue from the Bahamas Registry Trial decreased by $0.3 million, or 36%, to $0.7 million for the nine months ended September 30, 2025, compared to $1.0 million in 2024[13] - Net loss increased to approximately $17.3 million for the nine months ended September 30, 2025, up $5.4 million, or 45%, from a net loss of $11.9 million in the same period in 2024[13] - Total revenues for the three months ended September 30, 2025, were $137,000, a decrease of 82.3% compared to $773,000 for the same period in 2024[21] - The net loss for the three months ended September 30, 2025, was $7,221,000, compared to a net loss of $4,419,000 in the same period of 2024, indicating a 63.5% increase in losses[21] - Basic and diluted net loss per share for the three months ended September 30, 2025, was $(0.39), compared to $(0.34) for the same period in 2024[21] Expenses - Research and development expenses rose to approximately $9.3 million for the nine months ended September 30, 2025, an increase of $3.2 million, or 52%, compared to $6.1 million in 2024[13] - General and administrative expenses increased to approximately $9.1 million for the nine months ended September 30, 2025, up $1.7 million, or 22%, from $7.4 million in 2024[13] - Operating expenses increased to $7,435,000 for the three months ended September 30, 2025, compared to $5,331,000 for the same period in 2024, representing a 39.5% increase[21] Cash and Assets - Cash and cash equivalents as of September 30, 2025, were $9.2 million, expected to fund operations into the first quarter of 2026[13] - Cash and cash equivalents decreased to $9,244,000 as of September 30, 2025, from $19,232,000 as of December 31, 2024, a decline of 52.1%[19] - Total assets decreased to $15,557,000 as of September 30, 2025, down from $25,558,000 as of December 31, 2024, representing a 39.1% reduction[19] Liabilities and Deficit - Total current liabilities increased to $4,940,000 as of September 30, 2025, compared to $2,582,000 as of December 31, 2024, a rise of 91.3%[19] - The accumulated deficit increased to $(126,867,000) as of September 30, 2025, from $(109,607,000) as of December 31, 2024[19] Clinical Trials and Future Plans - The pivotal Phase 2b clinical trial (ELPIS II) for laromestrocel is fully enrolled with 40 pediatric patients, and top-line results are expected in the third quarter of 2026[6] - Laromestrocel has received multiple FDA designations, including Orphan Drug, Fast Track, and Rare Pediatric Disease designations for the treatment of HLHS[6] - The company plans to initiate a pivotal Phase 2 clinical trial for pediatric dilated cardiomyopathy (DCM) in 2026, subject to financing[10] Funding Activities - The company completed a public offering in August 2025, raising approximately $5.0 million, with potential additional proceeds of up to $12.5 million from short-term warrants[10] Share Information - The number of basic and diluted weighted average common shares outstanding increased to 18,373,198 as of September 30, 2025, from 13,627,793 in the same period of 2024[21]

"We continued to see year-over-year growth in RNG volumes in the third quarter along with solid financial results, meeting our expectations in line with our raised outlook for 2025 announced in August. On the RNG production side of our business, the operating dairy projects made good progress in increasing their overall volume production. But we feel like there is still room for improved production at these facilities which we are focused on. Construction of the five new dairy RNG projects is coming along v ...

Revenue Growth - Total revenue for Q3 2025 increased by 8% year-over-year to $365.4 million, with organic revenue growth of 5%[1] - Year-to-date total revenue grew by 9% to $1.158 billion, with organic revenue growth also at 9%[11] - For the three months ended September 30, 2025, revenues increased to $365.4 million, up from $338.9 million in the same period of 2024, representing a growth of approximately 7.5%[37] - Organic revenue for the three months ended September 30, 2025, was $350.1 million, reflecting a growth of $15.2 million or 5% compared to the same period in 2024[39] - Organic revenue growth for the nine months ended September 30, 2025, was 9%, down from 16% in the same period of 2024, indicating a slowdown in growth[39] Net Loss and Earnings Per Share - Q3 2025 net loss was $30.2 million, resulting in a diluted loss per share of $0.27; adjusted diluted EPS was $0.31, a decrease of 6% year-over-year[5] - Year-to-date net loss amounted to $10.5 million, with a diluted loss per share of $0.12; adjusted diluted EPS increased by 11% year-over-year to $1.37[11] - The net loss for the three months ended September 30, 2025, was $30.2 million, compared to a net loss of $14.5 million in the same period of 2024, indicating a significant increase in losses[37] - Adjusted net income for the three months ended September 30, 2025, was $36.5 million, compared to $38.5 million in the same period of 2024, showing a decrease in adjusted net income[40] - The company reported an adjusted diluted EPS of $0.31 for the three months ended September 30, 2025, down from $0.33 in the same period of 2024[40] Adjusted EBITDA and Cash Flow - Adjusted EBITDA for Q3 2025 was $72.5 million, maintaining the same level year-over-year, with an adjusted EBITDA margin of 19.8%[5] - Year-to-date adjusted EBITDA grew by 9% to $271.8 million, with an adjusted EBITDA margin of 23.5%[11] - Adjusted EBITDA for the three months ended September 30, 2025, was $72.5 million, slightly down from $72.8 million in the same period of 2024, resulting in an adjusted EBITDA margin of 19.8%[37] - The pro forma adjusted EBITDA for the nine months ended September 30, 2025, was $279.9 million, compared to $247.7 million in the same period of 2024, indicating a year-over-year increase[43] - Adjusted free cash flow for Q3 2025 increased by 26% year-over-year to $41.8 million[5] - Adjusted free cash flow for the three months ended September 30, 2025, was $41,810 thousand, compared to $33,180 thousand for the same period in 2024, reflecting a year-over-year increase of 4.9%[47] - For the nine months ended September 30, 2025, adjusted free cash flow was $76,257 thousand, down from $86,043 thousand in 2024, indicating a decrease of 11.3%[47] Financial Position and Assets - As of September 30, 2025, cash and cash equivalents were $89.7 million, with a borrowing capacity of $524 million under the revolving credit facility[6] - Total assets increased to $3,793,774, up from $3,534,731, representing a growth of 7.3%[21] - Current liabilities decreased to $959,713 from $1,056,434, a reduction of 9.2%[21] - Total stockholders' equity increased to $1,127,680 from $1,008,344, reflecting a growth of 11.8%[21] - Cash and cash equivalents at the end of the period were $325,944, down from $344,716, a decrease of 5.3%[23] Capital Expenditures and Payments - Capital expenditures for the nine months were $29,174, slightly up from $28,897 in 2024[23] - The company reported a significant payment of $85,090 for contingent earnout consideration, compared to $21,145 in the prior year[23] - The payment of contingent earnout consideration in excess of purchase price accrual for the nine months ended September 30, 2025, was $85,090 thousand, significantly higher than $21,145 thousand in 2024[47] - The payment of colleague earnout incentives for the nine months ended September 30, 2025, was $30,854 thousand, compared to $11,144 thousand in 2024, showing a substantial increase of 176.5%[47] Strategic Focus and Future Plans - The CEO highlighted ongoing optimization of the capital stack and continued de-levering as key drivers for long-term shareholder value[4] - The company continues to focus on strategic acquisitions and partnerships to enhance its market position and operational efficiency[48] - The financial results reflect the company's ongoing commitment to improving cash flow and managing operational expenses effectively[48] - The company plans to present fiduciary assets and liabilities separately on the consolidated balance sheets starting January 1, 2025, which will affect the calculation of adjusted free cash flow[35]

Revenue Performance - Total revenue for Q3 2025 increased by 8% year-over-year to $365.4 million, with organic revenue growth of 5%[1] - Year-to-date total revenue grew by 9% to $1.158 billion, with organic revenue growth also at 9%[11] - Total revenues for Q3 2025 were $365,389,000, an increase from $338,938,000 in Q3 2024, with total revenues for the nine months reaching $1,157,605,000 compared to $1,059,145,000 in the prior year[37] - Organic revenue for Q3 2025 reached $350,095,000, reflecting a growth of 5% year-over-year, while organic revenue growth for the nine months ended September 30, 2025, was 9%[39] - Organic revenue growth for the nine months ended September 30, 2025, was $91,369,000, down from $144,844,000 in the same period of 2024, indicating a slowdown in growth[39] Net Loss and Earnings - Q3 2025 net loss was $30.2 million, resulting in a diluted loss per share of $0.27; adjusted diluted EPS was $0.31, a decrease of 6% year-over-year[5] - Year-to-date net loss amounted to $10.5 million, with a diluted loss per share of $0.12; adjusted diluted EPS increased by 11% year-over-year to $1.37[11] - The company reported a net loss of $30,237,000 for Q3 2025, compared to a net loss of $14,475,000 in Q3 2024, resulting in a net loss margin of -8%[37] - Net loss for the nine months ended September 30, 2025, was $10,480, compared to a loss of $6,242 in the same period of 2024, reflecting a deterioration of 68.0%[23] Adjusted EBITDA and Cash Flow - Adjusted EBITDA for Q3 2025 was $72.5 million, maintaining the same level year-over-year, with an adjusted EBITDA margin of 19.8%[5] - Year-to-date adjusted EBITDA grew by 9% to $271.8 million, with an adjusted EBITDA margin of 23.5%[11] - Adjusted EBITDA for Q3 2025 was $72,520,000, slightly down from $72,751,000 in Q3 2024, with an adjusted EBITDA margin of 19.8% compared to 21.5% in the previous year[37] - Adjusted free cash flow for Q3 2025 increased by 26% year-over-year to $41.8 million[5] - Adjusted free cash flow for the three months ended September 30, 2025, was $41,810,000, up from $33,180,000 in 2024, indicating a growth of 26%[47] - Adjusted free cash flow for the nine months ended September 30, 2025, was $76,257,000, down from $86,043,000 in 2024, reflecting a decline of 11%[47] Financial Position - As of September 30, 2025, cash and cash equivalents were $89.7 million, with a borrowing capacity of $524 million under the revolving credit facility[6] - Total assets increased to $3,793,774, up from $3,534,731, representing a growth of 7.3%[21] - Current liabilities decreased to $959,713 from $1,056,434, a reduction of 9.2%[21] - Total stockholders' equity increased to $1,127,680 from $1,008,344, a rise of 11.8%[21] - Cash and cash equivalents at the end of the period were $325,944, down from $344,716, a decrease of 5.0%[23] Capital Expenditures and Contingent Payments - The company reported capital expenditures of $29,174 for the nine months ended September 30, 2025, compared to $28,897 in 2024, indicating a slight increase of 1.0%[23] - The company reported a significant payment of $85,090 for contingent earnout consideration, compared to $21,145 in the previous year, reflecting an increase of 302.5%[23] - Payment of contingent earnout consideration in excess of purchase price accrual for the nine months ended September 30, 2025, was $85,090,000, compared to $21,145,000 in 2024[47] - Payment of colleague earnout incentives for the nine months ended September 30, 2025, was $30,854,000, up from $11,144,000 in 2024[47] Future Reporting Changes - The company plans to present fiduciary assets and liabilities separately on the consolidated balance sheets starting January 1, 2025, which will affect the calculation of adjusted free cash flow[35] - Adjusted free cash flow is now impacted by changes in fiduciary cash presentation, which may affect previously reported figures for prior periods[35] Management Insights - The CEO highlighted ongoing optimization of the capital stack and continued de-levering as key drivers for long-term shareholder value[4] - The company highlighted the importance of organic revenue growth as a key metric for assessing financial performance, although specific figures were not provided[28]

Revenue Performance - Revenue for Q3 2025 was $2.2 million, down from $4.2 million in Q3 2024, primarily due to lower milestone and service revenue[3] - Revenue for the nine months ended September 30, 2025, was $10.3 million, down from $15.6 million for the same period in 2024[6] - Total revenue for the three months ended September 30, 2025, was $2,239,000, a decrease of 46.4% compared to $4,172,000 for the same period in 2024[30] - License and milestone revenue decreased to $616,000 from $1,375,000, representing a decline of 55.2% year-over-year[30] - Service revenue also saw a decline, falling to $1,188,000 from $2,479,000, a decrease of 52.0%[30] Expenses and Losses - Research and development expense decreased to $10.4 million in Q3 2025 from $13.3 million in Q3 2024, attributed to lower personnel and external expenses[4] - Net loss for Q3 2025 was $16.5 million, or $0.14 per share, compared to a net loss of $16.4 million, or $0.16 per share, in Q3 2024[5] - Research and development expenses for the nine months ended September 30, 2025, were $33,845,000, down from $41,804,000 in 2024, a reduction of 19.1%[30] - The net loss for the three months ended September 30, 2025, was $16,525,000, compared to a net loss of $16,373,000 for the same period in 2024, indicating a slight increase in losses[30] - The company reported a loss from operations of $18,140,000 for the three months ended September 30, 2025, compared to a loss of $19,764,000 for the same period in 2024, showing an improvement of 8.2%[30] Financial Position - As of September 30, 2025, OmniAb had cash, cash equivalents, and short-term investments totaling $59.5 million, following a $30 million private placement in August[8] - Total assets decreased to $309,690,000 as of September 30, 2025, from $325,558,000 at December 31, 2024, a decline of 4.9%[28] - Total liabilities decreased to $32,246,000 as of September 30, 2025, from $37,940,000 at December 31, 2024, a reduction of 15.0%[28] - Stockholders' equity decreased to $277,444,000 as of September 30, 2025, from $287,618,000 at December 31, 2024, a decline of 3.5%[28] Future Outlook - OmniAb expects 2025 revenue to be between $18 million and $22 million, with operating expenses projected between $82 million and $86 million[9] - OmniAb plans to launch its new OmniUltra™ technology in December 2025, which is expected to create new business opportunities[2] - OmniAb's effective tax rate for 2025 is expected to be approximately 0%[9] Partnerships and Programs - The company had 104 active partners and 399 active programs as of September 30, 2025, including 32 programs in clinical development[10] - The company reported other operating income of $2.7 million for the nine months ended September 30, 2025, including a $3.0 million gain from the sale of a small molecule program[7]

Financial Performance - Net loss attributable to common stockholders for the quarter was $(8.2) million, or $(0.12) per diluted share, with Adjusted funds from operations (AFFO) at $(0.19) per diluted share[4] - Net income for the three months ended September 30, 2025, was $4.7 million, down from $39.8 million in the same period of 2024, representing a decline of 88.2%[27] - Operating income for the three months ended September 30, 2025, was $29.8 million, compared to $70.3 million for the same period in 2024, a decrease of 57.6%[27] - The company reported a net loss attributable to common stockholders of $8.2 million for the three months ended September 30, 2025, compared to a loss of $1.4 million in the same period of 2024[27] - Hotel net income for the three months ended September 30, 2025, was $33.765 million, down 56.62% from $77.832 million in 2024[46] - Hotel net income attributable to the Company and OP unitholders was $37.065 million, a decrease of 35.19% from $57.191 million in 2024[50] - The company reported a net income of $39.835 million for the period, with a significant increase compared to the previous loss of $37.997 million[117] Revenue Metrics - Comparable RevPAR for all hotels increased 1.4% year-over-year to $257, while Comparable ADR rose 4.7% to $401, and Comparable Occupancy decreased 3.2% to 64.3%[4] - Total hotel revenue for the three months ended September 30, 2025, was $143.6 million, a decrease of 3.8% compared to $148.4 million for the same period in 2024[27] - Total hotel revenue for the three months ended September 30, 2025, was $144.585 million, a decrease of 3.13% compared to $149.255 million in 2024[46] - Total hotel revenue for the three months ended September 30, 2025, was $128.719 million, a decrease of 2.54% compared to $132.071 million in 2024[50] - Total hotel revenue for the trailing twelve months (TTM) was $718,154,000, with a comparable revenue of $686,164,000 after adjustments[84] - Total hotel revenue for Resort Properties reached $494.451 million, with a hotel net income of $46.020 million, resulting in a net income margin of 9.31%[75] EBITDA and Operational Metrics - Comparable Hotel EBITDA was $21.4 million for the quarter, reflecting a 15.1% increase over the prior year quarter[4] - Adjusted EBITDAre for the nine months ended September 30, 2025, was $118.2 million, down from $127.4 million for the same period in 2024, a decline of 7.5%[29] - Hotel EBITDA for the three months ended September 30, 2025, was $25.562 million, a slight increase of 2.04% from $25.050 million in 2024[46] - Total hotel EBITDA attributable to the company reached $24,625 million, reflecting robust operational efficiency[91] - Hotel EBITDA for the company reached $91.964 million, reflecting a strong performance across its properties[117] - Comparable hotel EBITDA was reported at $126.3 million, showing strong operational performance[123] Cash and Debt Management - The Company ended the quarter with cash and cash equivalents of $116.3 million and restricted cash of $47.7 million[4] - Net debt to gross assets was 43.2% at the end of the third quarter, with total assets of $2.0 billion and total loans of $1.2 billion[8] - Indebtedness, net, was $1.16 billion as of September 30, 2025, compared to $1.21 billion as of December 31, 2024, a decrease of 4.5%[25] - The weighted average interest rate on total indebtedness as of September 30, 2025, was 6.88%[36] - Total interest expense amounted to $22,674 million, reflecting a substantial financial burden on the company's operations[97] Strategic Initiatives and Future Outlook - The Company initiated a sale process in August 2025 to explore strategic alternatives aimed at maximizing shareholder value[6] - The company is focusing on market expansion and new product development to enhance future growth prospects[91] - Future guidance indicates a continued emphasis on operational efficiency and strategic investments in technology[91] - The company is actively exploring acquisition opportunities to strengthen its market position and diversify its portfolio[120] - Future outlook remains positive with expectations for continued recovery and growth in the upcoming quarters[104] Property-Specific Performance - Rooms revenue for PIER HOUSE RESORT & SPA increased to $3,782 million, up 2.19% from $3,701 million in 2024[55] - Total hotel revenue for PIER HOUSE RESORT & SPA reached $5,418 million, reflecting a 5.55% increase compared to $5,133 million in 2024[55] - Hotel net income for PIER HOUSE RESORT & SPA surged to $1,140 million, a significant increase of 8,669.23% from $13 million in 2024[55] - Rooms revenue for PARK HYATT BEAVER CREEK RESORT & SPA decreased to $2,915 million, down 18.82% from $3,591 million in 2024[55] - Total hotel revenue for THE NOTARY HOTEL increased to $26,747, a 3.22% increase from $25,913 in 2024[64] - Hotel net income for THE NOTARY HOTEL rose to $4,109, a 25.66% increase compared to $3,270 in 2024[64]

Financial Performance - Total revenue for Q3 2025 was $56.3 million, exceeding previous guidance[7] - Subscription revenue reached $30.9 million, while Amwell Medical Group visit revenue was $21.2 million[7] - Gross margin reported at 52.4%[7] - Revenue for the three months ended September 30, 2025, was $56,286 thousand, a decrease from $61,046 thousand in the same period of 2024, representing a decline of 12.9%[15] - Total costs and operating expenses for the three months ended September 30, 2025, were $85,618 thousand, down from $108,416 thousand in 2024, a reduction of 21.0%[15] - The net loss attributable to American Well Corporation for the three months ended September 30, 2025, was $32,378 thousand, compared to a net loss of $43,464 thousand in 2024, reflecting an improvement of 25.0%[15] - Adjusted EBITDA for the three months ended September 30, 2025, was $(12,669) thousand, an improvement from $(31,013) thousand in the same period of 2024[23] Loss and Cash Flow - Net loss for the quarter was ($31.9) million, an increase from ($19.5) million in Q2 2025[7] - Adjusted EBITDA loss was ($12.7) million, compared to ($4.7) million in the previous quarter[7] - The net cash used in operating activities for the nine months ended September 30, 2025, was $(48,598) thousand, compared to $(113,903) thousand in 2024, indicating a reduction in cash outflow of 57.3%[17] - Cash, cash equivalents, and restricted cash at the end of the period on September 30, 2025, totaled $201,683 thousand, down from $245,442 thousand at the end of September 30, 2024, a decrease of 17.8%[17] Guidance and Projections - Revised 2025 revenue guidance is now between $245 million and $248 million, down from $245 million to $250 million[7] - Q4 2025 revenue is projected to be between $51 million and $54 million[7] - Q4 adjusted EBITDA is expected to range from ($15) million to ($12) million[7] - The company aims to achieve positive cash flow from operations by the end of 2026[5] Operational Metrics - Total visits in Q3 2025 were 1.1 million[7] - Research and development expenses for the three months ended September 30, 2025, were $18,582 thousand, slightly down from $19,797 thousand in 2024, a decrease of 6.1%[15] - Sales and marketing expenses for the three months ended September 30, 2025, were $9,078 thousand, a significant decrease from $16,771 thousand in 2024, representing a decline of 45.8%[15] - The company reported a net gain on divestiture of $2,000 thousand for the three months ended September 30, 2025, compared to no gain in the same period of 2024[15] - The weighted-average common shares outstanding for the three months ended September 30, 2025, were 16,214,711, an increase from 15,135,421 in 2024[15]

Financial Performance - Total revenue for Q3 2025 was $14.5 million, a decrease of $11.2 million or 44% compared to Q3 2024, primarily due to a decline in revenue from Natera and population sequencing[133] - Total revenue for the three months ended September 30, 2025, was $14,495,000, a decrease of 44% compared to $25,709,000 in the same period of 2024[148] - Revenue from pharma tests and services decreased by 16% to $13,137,000 in Q3 2025, primarily due to a reduction in clinical trial samples processed for Moderna[150] - Enterprise sales revenue fell by 88% to $650,000 in Q3 2025, attributed to a decrease in samples processed for Natera[151] - Clinical diagnostic revenue increased by 42% to $384,000 in Q3 2025, driven by higher volumes of NeXT Dx tests and reimbursements[154] - The net loss for Q3 2025 was $21.7 million, compared to a net loss of $39.1 million in Q3 2024[145] - Total costs and expenses for the three months ended September 30, 2025, were $37,786,000, a decrease of 6% from $40,091,000 in Q3 2024[155] Operational Highlights - The company delivered 4,388 clinical tests in Q3 2025, representing a 26% sequential increase and a 364% year-over-year growth, driven by the adoption of the NeXT Personal platform[134] - Approximately 552,000 human samples have been sequenced to date, including about 206,000 whole human genomes[132] - The company has submitted a third dossier for Medicare coverage for lung cancer, with three pending indications[134] - The company has expanded its collaboration with Tempus to market NeXT Personal Dx for colorectal cancer, extending the agreement through November 2029[135] Expenses and Liabilities - Research and development expenses for Q3 2025 were $12.2 million, compared to $11.7 million in Q3 2024, indicating a focus on growth in clinical diagnostic offerings[139] - Selling, general and administrative expenses increased to $13.0 million in Q3 2025 from $11.4 million in Q3 2024, reflecting the company's investment in growth[141] - Total liabilities increased to $71.4 million as of September 30, 2025, compared to $67.3 million at the end of 2024[147] Cash and Investments - The company has a cash and cash equivalents balance of $150.5 million as of September 30, 2025, down from $185.0 million at the end of 2024[147] - Cash and cash equivalents as of September 30, 2025, were $150,515,000, down from $185,009,000 at the end of 2024[168] - Net cash used in operating activities increased by 41% to $52,700,000 in the nine months ended September 30, 2025, compared to $37,354,000 in the same period of 2024[172] - The company anticipates that current cash and cash equivalents, along with cash from operations, will be sufficient to fund near-term capital and operating needs for at least the next 12 months[169] - As of September 30, 2025, the company has cash and cash equivalents totaling $150.5 million to fund material cash requirements[175] Future Projections - The company expects variable costs of revenue to increase in 2025 to support planned clinical test volume increases ahead of Medicare reimbursement[176] - Operating expenditures are anticipated to rise slightly above 2024 levels, primarily driven by employee compensation and research and development[177] - Capital expenditures are projected to be approximately $7.0 million in 2025, with expectations of $13.0 million to $14.0 million in 2026 and 2027[178] Accounting Policies - Critical accounting policies include revenue recognition, leases, and common stock warrants, which have the greatest potential impact on financial statements[182] - There have been no material changes to critical accounting policies compared to the previous fiscal year[183]

Financial Agreements and Commitments - The company entered into an option agreement with Sutro Biopharma in December 2022, paying $22.5 million upfront, which included $10.0 million in cash and $7.5 million in common stock[73][74]. - On November 21, 2023, the company exercised the option, paying $50.0 million in cash as the first installment, with a second installment of $25.0 million due in May 2024[76]. - The company agreed to pay Sutro Biopharma additional milestone payments totaling up to $60.0 million in cash upon the occurrence of certain regulatory milestones[76]. - The total non-cancelable purchase commitments related to manufacturing services and raw materials due to key manufacturing partners amount to $631.7 million, with $283.5 million due in the remainder of 2025[80][79]. Stock and Equity - As of September 30, 2025, the company had issued and outstanding 130,029,111 shares of common stock, an increase from 124,893,034 shares as of December 31, 2024[82]. - The company raised $1.4 billion in net proceeds from an underwritten public offering on September 6, 2024, selling 12,087,378 shares at a price of $103.00 per share[89]. - The company has $129.7 million remaining for future sales under the Amended ATM Sales Agreement, having sold 4,211,367 shares at a weighted average price of $64.19 per share for aggregate gross proceeds of $270.3 million[84]. - The 2020 Equity Incentive Plan has 8,848,520 shares of common stock available for issuance as of September 30, 2025, following an increase of 6,244,651 shares effective January 1, 2025[95]. - The company has no shares of preferred stock issued or outstanding as of September 30, 2025[81]. - As of September 30, 2025, the company had 11,018,025 stock options outstanding with a weighted average exercise price of $43.65 and an intrinsic value of $72.07 million[97]. - For the nine months ended September 30, 2025, the company exercised options for 568,497 shares at a weighted average price of $13.15, resulting in an intrinsic value of $33.7 million[98]. - The company granted 1,743,601 restricted stock units (RSUs) during the nine months ended September 30, 2025, with a weighted average grant-date fair value of $49.12 per share[101]. - As of September 30, 2025, the unrecognized stock-based compensation cost related to unvested RSUs and performance stock units (PSUs) was $141.9 million, expected to be recognized over 2.99 years[102]. - The weighted average grant date fair value of options granted for the nine months ended September 30, 2025 was $32.60, compared to $46.46 for the same period in 2024[98]. - The total stock-based compensation expense for the nine months ended September 30, 2025 was $102.8 million, compared to $60.5 million for the same period in 2024[106]. - The company has a total of 2,084,007 shares available under the 2020 Employee Stock Purchase Plan as of September 30, 2025[104]. Financial Performance - The company reported a net loss of $212.8 million for the three months ended September 30, 2025, compared to a net loss of $103.1 million for the same period in 2024[112]. - The net loss for the nine months ended September 30, 2025, was $520.1 million, compared to $326.8 million for the same period in 2024, reflecting a 59% increase[118]. - For the three months ended September 30, 2025, total operating expenses were $242.4 million, compared to $139.9 million for the same period in 2024, representing a 73.3% increase[118]. - Research and development external costs for the three months ended September 30, 2025, were $161.3 million, up from $82.3 million in 2024, indicating a 96% increase[118]. - Total other income for the nine months ended September 30, 2025, was $129.3 million, compared to $80.5 million for the same period in 2024, marking a 60.5% increase[118]. Cash and Investments - As of September 30, 2025, the company had approximately $2.7 billion in cash, cash equivalents, and investments, down from $3.1 billion as of December 31, 2024[220]. - A hypothetical 10% increase in interest rates would impact net assets by $9.6 million and net loss by $8.3 million for the nine months ended September 30, 2025[220]. Foreign Currency and Inflation - Foreign currency denominated accounts payable and accrued expenses were $138.5 million as of September 30, 2025, compared to $72.4 million as of December 31, 2024[222]. - The company had foreign currency denominated property, plant, and equipment valued at $214.1 million as of September 30, 2025, up from $157.6 million in 2024[222]. - Inflation has increased costs related to labor and research and development contracts, although the company does not believe it had a material effect on operations during the reported periods[224]. - The company intends to evaluate alternative strategies, including hedging, to mitigate foreign currency exposure as risks increase in the future[222].