Natera(NTRA) - 2025 Q1 - Quarterly Results

Overview and Highlights Q1 2025 Highlights Natera reported strong Q1 2025 results, with revenue up 36.5% to $501.8 million, gross margin at 63.1%, and positive cash flow - CEO highlighted strong volume growth, including record Signatera test performance, driven by technology and clinical data strength[3] Q1 2025 Key Performance Indicators | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues (Millions USD) | $501.8 | $367.7 | +36.5% | | Gross Margin (%) | 63.1% | 56.7% | +6.4 p.p. | | Total Tests Processed (Units) | ~855,100 | ~735,800 | +16.2% | | Oncology Tests Performed (Units) | ~167,700 | ~114,800 | +46.1% | | Cash Flow (Millions USD) | $23.2 | N/A | N/A | Financial Performance Q1 2025 Financial Results Natera's Q1 2025 revenues grew 36.5% to $501.8 million, gross margin expanded to 63.1%, and net loss was $66.9 million Q1 2025 vs Q1 2024 Financial Summary | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues (Thousands USD) | $501,830 | $367,741 | | Gross Profit (Thousands USD) | $316,800 | $208,600 | | Gross Margin (%) | 63.1% | 56.7% | | Loss from Operations (Thousands USD) | ($79,177) | ($74,314) | | Net Loss (Thousands USD) | ($66,936) | ($67,599) | | Diluted Net Loss per Share (USD) | ($0.50) | ($0.56) | - Product revenue growth was driven by higher test volumes, improved average selling price, and prior period cash collections[3] - Operating expenses increased due to headcount growth for new products, along with higher consulting and legal costs[7] Test Volume Analysis Q1 2025 test volumes grew, with total tests processed up 16.2% to 855,100 and tests reported increasing 18.5% Test Volume Breakdown (Q1 2025 vs Q1 2024) | Unit | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Tests processed (Units) | 855,100 | 735,800 | +16.2% | | Tests accessioned (Units) | 840,800 | 718,700 | +17.0% | | Tests reported (Units) | 804,800 | 679,400 | +18.5% | - Oncology tests significantly drove growth, increasing 46.1% year-over-year to approximately 167,700 tests in Q1 2025[4] Financial Position and Cash Flow Natera ended Q1 2025 with strong liquidity of $991.6 million in cash and equivalents, achieving positive cash flow - Achieved positive cash flow of approximately $23.2 million in Q1 2025, from $44.5 million operating cash flow and $0.5 million financing cash flow, offset by $21.8 million capital expenditures[4][19] Cash and Debt Position | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash, equivalents, investments, restricted cash (Millions USD) | $991.6 | $968.3 | | Total outstanding debt (Millions USD) | $80.3 | N/A | 2025 Financial Outlook Full-Year 2025 Guidance Natera projects 2025 total revenues of $1.94 billion to $2.02 billion, gross margins of 60-64%, and positive net cash inflow 2025 Financial Guidance | Metric | 2025 Guidance | | :--- | :--- | | Total Revenue (Billions USD) | $1.94 to $2.02 | | Gross Margin (% of Revenues) | ~60% to 64% | | Selling, General & Administrative Costs (Billions USD) | $0.975 to $1.05 | | Research & Development Costs (Millions USD) | $550 to $590 | | Net Cash Inflow | Positive | Consolidated Financial Statements Consolidated Balance Sheets As of March 31, 2025, Natera's total assets were $1.73 billion, liabilities $492.7 million, and stockholders' equity $1.24 billion Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets (Thousands USD) | $1,416,385 | $1,375,820 | | Total assets (Thousands USD) | $1,732,366 | $1,660,735 | | Total current liabilities (Thousands USD) | $365,677 | $344,045 | | Total liabilities (Thousands USD) | $492,691 | $465,315 | | Total stockholders' equity (Thousands USD) | $1,239,675 | $1,195,420 | Consolidated Statements of Operations and Comprehensive Loss Q1 2025 total revenues were $501.8 million, with a net loss of $66.9 million, an improvement from $67.6 million net loss in Q1 2024 Statement of Operations Summary (in thousands, except per share data) | Account | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Total revenues (Thousands USD) | $501,830 | $367,741 | | Total cost and expenses (Thousands USD) | $581,007 | $442,055 | | Loss from operations (Thousands USD) | ($79,177) | ($74,314) | | Net loss (Thousands USD) | ($66,936) | ($67,599) | | Net loss per share (USD) | ($0.50) | ($0.56) | Other Information About Natera Natera is a global leader in cell-free DNA and genetic testing, focusing on oncology, women's health, and organ health - Natera's core business areas include oncology, women's health, and organ health, leveraging cell-free DNA and genetic testing[12] Forward-Looking Statements and Risk Factors Forward-looking statements are subject to risks including financial goals, competition, product performance, reimbursement, and FDA LDT regulations - Report projections are forward-looking, based on current estimates, and not guarantees of future performance[14] - Significant risks include competition, reimbursement challenges, product liability, and compliance costs with governmental regulations like FDA LDT rules[15]