Core Insights - Natera has experienced remarkable growth in its Signatera product over the past few years, with over 100 publications supporting its clinical evidence [1] - The company has acquired technology for PhasED variance, which enhances sensitivity in its diagnostics [1] - Natera's women's health business is performing well, holding over 40% market share in non-invasive prenatal testing (NIPT) [1] - Despite increasing competition, Natera is proactively addressing challenges in the market [1]

Summary of Natera Conference Call Company Overview - **Company**: Natera (NasdaqGS:NTRA) - **Industry**: Life Sciences Tools and Diagnostics Key Points Signatera Growth and Performance - **Volume Growth**: Signatera has shown significant growth, with 22,500 growth units last quarter and a total of 225,000 units overall in the quarter, indicating a strong upward trajectory in demand [4][6] - **Sequential Volume Growth**: The average sequential volume growth is suggested to be assessed over the trailing four quarters to normalize for seasonality and variability [4][5] - **ASP (Average Selling Price)**: The ASP for Signatera is approximately $1,225 as of Q4, with reimbursement rates from Medicare being higher than commercial payers [7][8][10] Reimbursement Landscape - **Medicare Coverage**: Medicare broadly reimburses Signatera across various tumor types, which is crucial for its market penetration [12][14] - **Commercial Payers**: There is a significant opportunity to increase reimbursement rates from commercial payers, particularly Medicare Advantage plans, where reimbursement rates are currently around 80% [102][104] Clinical Evidence and Trials - **Ongoing Studies**: Natera is focused on generating clinical evidence through ongoing studies and presentations at academic conferences, which are not binary events but rather a continuous stream of data [30][31][38] - **Foresight Acquisition**: The acquisition of Foresight is aimed at enhancing the analytical performance of Signatera, particularly in sensitivity and clinical evidence [39][55] FDA Approval and Market Positioning - **FDA-Approved Version**: An FDA-approved version of Signatera is expected this year, which could enhance physician confidence and demand for the test [57][63] - **Standard of Care**: There is a growing belief among physicians that Signatera will become part of the standard of care in cancer monitoring, similar to routine CT scans [65][66] R&D Investment - **R&D Spending**: Natera has guided an $800 million R&D spend for the year, a 30% increase year-over-year, primarily focused on Signatera and colorectal cancer early detection screening [69][72] - **Clinical Trials**: Significant investments are being made in clinical trials to support existing franchises and new product development [70][72] Women's Health Business - **Fetal Focus Product**: The Fetal Focus product is positioned as complementary to existing offerings, with no significant cannibalization expected between it and Horizon volumes [84][89] - **Panorama NIPT**: The Panorama NIPT assay continues to see improvements in reimbursement rates and is becoming a standard of care [99][101] Colorectal Cancer Screening - **Market Opportunity**: There is a substantial market for early cancer detection in colorectal cancer, with around 40 million people not currently receiving adequate screening [122][130] - **Technological Challenges**: Launching new products in this space requires significant investment and infrastructure, which Natera is well-positioned to handle [134][135] Future Outlook - **Growth Drivers**: The company anticipates that the combination of Signatera's growth, new product launches, and advancements in colorectal cancer screening will drive significant shareholder value in the coming years [138][139] This summary encapsulates the key insights from the Natera conference call, highlighting the company's growth trajectory, market positioning, and strategic initiatives in the life sciences diagnostics industry.

Core Insights - Natera has recently announced its Q4 results, which were well received and set expectations for 2026 [1] - The company experienced significant revenue growth in the quarter, with record volumes for Signatera and strong gross margins [2] Financial Performance - In Q4, Natera achieved a gross margin of approximately 67%, which adjusted for true-ups, was close to 64% [2] - The company reported record absolute volumes and growth units for Signatera, indicating robust demand and operational performance [2]

Summary of Natera's Conference Call Company Overview - Natera is a diagnostics and life science tools company, focusing on genetic testing and monitoring, particularly in oncology and women's health [1] Financial Performance - Q4 results showed strong revenue growth, with record volumes for Signatera, a product for minimal residual disease (MRD) monitoring [2][3] - Gross margins reached approximately 67%, with a sequential increase of 240 basis points from Q3 [3] - The company generated over $100 million in free cash flow for the year, indicating strong financial health [9] - Natera aims for continued revenue growth across its portfolio, particularly in women's health and organ health, with a focus on pricing improvements for Signatera [11] Product Development and Market Strategy - Natera is expanding Signatera's penetration among oncologists, with 50% of oncologists currently ordering the test [14] - The company sees significant opportunities for growth in both indication expansion and deeper adoption within existing practices [15][16] - Natera is committed to aggressive R&D spending to support clinical trials and new product development, maintaining a stable SG&A year-on-year [12] Coverage and Reimbursement - Approximately 30%-35% of Signatera's volume comes from non-covered areas, representing a potential $200 million opportunity if coverage expands [20] - Natera is actively working with Medicare to improve coverage for various cancer types, with expectations for more announcements in the near future [24][25] - The company has improved its reimbursement rates from Medicare Advantage plans, currently at 80% compared to 99% for Medicare fee-for-service [27] Clinical Guidelines and Adoption - Clinical guidelines remain crucial for the adoption of Signatera, with ongoing studies expected to support guideline inclusion for colorectal cancer and muscle-invasive bladder cancer [30][31] - Natera is optimistic about the potential for guideline updates that could enhance the adoption of Signatera in clinical practice [32][33] Women's Health Segment - Natera's women's health business is projected to grow mid-single digits, driven by increased interest in carrier screening and ongoing product innovation [53][54] - The recent launch of the Fetal Focus test is part of Natera's strategy to maintain competitiveness in a challenging market [56] R&D and Future Outlook - Natera is focused on growing its R&D investments to drive innovation and improve product offerings, with a bias towards ambitious clinical trials [71] - The company aims to achieve sustainable earnings per share through revenue growth and efficient operational management [66] Conclusion - Natera is well-positioned for future growth with a strong product pipeline, ongoing improvements in reimbursement, and a commitment to innovation in both oncology and women's health [73]

Core Insights - Natera had a strong performance in Q4 2025, exceeding internal expectations in both volumes and revenues [3] - The company reported a significant increase in gross margins, with organic gross margins reaching approximately 64% and 67% when including true-ups [3] - The growth across the portfolio was robust, with the Signatera product achieving record unit sales and notable clinical trial data contributing to its success [4] Financial Performance - Q4 2025 finished with strong revenue growth, surpassing consensus estimates [2] - Gross margin improved by approximately 240 basis points, indicating strong operational efficiency [3] - The overall performance in 2025 was characterized by significant growth across various product lines [4] Strategic Focus - Key priorities for 2026 include maintaining growth momentum and leveraging positive clinical trial outcomes to drive further product adoption [2][4] - Continued emphasis on enhancing gross margins and operational performance is expected to be a focus area moving forward [3]

Core Insights - The fourth quarter of 2025 saw mixed results for midcap stocks, with the Russell Midcap® Growth Index decreasing by 3.70% and the Russell Midcap® Value Index increasing by 1.41% [1] - The Russell Midcap Growth Index rose by 8.66% in 2025, trailing the Russell Midcap Value Index's 11.04% return [1] - Carillon Eagle Mid Cap Growth Fund anticipates favorable equity market conditions and identifies potential opportunities in sectors such as Cyclicals, Healthcare, Information Technology, Financials, and Consumer Spending through 2026 [1] Company Insights: Natera, Inc. (NASDAQ:NTRA) - Natera, Inc. is highlighted as a leading contributor to the Carillon Eagle Mid Cap Growth Fund, specializing in ctDNA molecular testing services [2][3] - As of March 03, 2026, Natera's stock closed at $207.04 per share, with a one-month return of 0.70% and a 52-week gain of 39.97% [2] - Natera reported revenue of approximately $666 million in Q4 2025, representing a growth of around 40% compared to Q4 2024 [4] - The company’s flagship Signatera oncology test has driven growth, with volumes exceeding consensus estimates, leading to an increase in revenue growth guidance [3] - Natera's market capitalization stands at $28.872 billion, and it has shown strengthening profitability with rising gross margins and sustained positive free cash flow [2][3]

Financial Data and Key Metrics Changes - The company processed approximately 924,000 tests in Q4 2025, achieving a record growth of 56% in MRD clinical unit tests compared to Q4 2024 [6][10] - Revenue for the quarter reached around $666 million, representing a 40% increase year-over-year [6][7] - Gross margin improved to 66.9% in Q4, exceeding expectations and reflecting strong operational performance [6][11] - Cash flow generated in 2025 was over $107 million, with expectations for continued strong cash flow in 2026 [7][30] Business Line Data and Key Metrics Changes - The MRD product portfolio expanded significantly with the launch of the genome version of Signatera and the Latitude MRD test, contributing to strong growth in oncology [8][9] - The average selling price (ASP) for Signatera increased to approximately $1,225 in Q4, with cash collections accelerating [11][30] - The women's health segment saw robust performance, particularly with the Fetal Focus test, which achieved high sensitivity and specificity [15][16] Market Data and Key Metrics Changes - Over 50% of oncologists in the U.S. ordered a Signatera test in Q4, indicating strong adoption of MRD testing in clinical practice [10] - The company is seeing increased engagement from commercial payers, enhancing reimbursement opportunities for its tests [12][30] Company Strategy and Development Direction - The company plans to generate between $2.62 billion and $2.7 billion in revenues for 2026, with a focus on maintaining gross margins between 63% and 65% while investing in R&D [7][31] - Strategic investments in clinical trials and product launches are expected to drive future growth, particularly in oncology and women's health [8][36] - The company is pursuing broader Medicare reimbursement for Signatera, which could significantly enhance revenue potential [12][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory, citing strong performance in Q4 and a solid start to 2026 [6][7] - The company is focused on maintaining operational improvements and expects to continue narrowing operating losses while investing in growth [30][31] - Management highlighted the importance of generating clinical evidence to support product adoption and reimbursement [46][61] Other Important Information - The company completed the acquisition of Foresight Diagnostics, integrating phased variant technology to enhance MRD test sensitivity [27][28] - The Latitude MRD assay has shown promising clinical validation, with significant prognostic capabilities for colorectal cancer [24][25] Q&A Session Summary Question: Update on Signatera ASPs and Medicare changes - Management indicated that changes in ADLT rates and bundle rates roughly net each other out, with continued execution on reimbursement expected to drive ASP growth [38][39] Question: Signatera mix by indication and potential impact on ASPs - The majority of Signatera volume comes from CRC, but management anticipates that breast and lung cancer indications will gain traction, potentially impacting ASPs positively [41][42] Question: Growth expectations for Signatera and data catalysts - Management suggested using trailing four-quarter averages for modeling growth, with expectations for continued strong performance across various tumor types [45][50] Question: Marketing approach for Fetal Focus and market share - Management noted significant physician interest in Fetal Focus, with flexible ordering options contributing to market share gains [52][54] Question: Contribution from lymphoma and multiple myeloma volumes - Management acknowledged limited current contributions from these areas but sees potential for growth driven by the Foresight team and their data [74][75] Question: Approval and launch plans for Signatera in Japan - Management confirmed a strong sales team and distribution partnership in Japan, anticipating a positive impact on revenue once approval is secured [76][79]

Financial Data and Key Metrics Changes - The company generated approximately $666 million in revenue for Q4 2025, representing a 40% increase compared to Q4 2024 [6][30] - Gross margin for the quarter was 66.9%, exceeding expectations and reflecting a significant improvement [6][11] - Cash flow for the year reached over $107 million, indicating strong financial health despite increased growth investments [7][30] Business Line Data and Key Metrics Changes - The company processed about 924,000 tests in Q4 2025, with MRD clinical unit growth reaching 225,000 tests, a 56% increase year-over-year [6][10] - Average selling prices (ASPs) for Signatera increased to approximately $1,225 in Q4 2025, contributing to revenue growth [11][30] - The Women's Health segment saw significant growth, particularly with the launch of the Fetal Focus test, which is expected to drive further market share gains [15][54] Market Data and Key Metrics Changes - Over 50% of oncologists in the U.S. ordered a Signatera test in Q4 2025, indicating strong adoption of MRD testing in clinical practice [10] - The company anticipates continued growth in Women's Health volumes and ASPs, with a strong start to 2026 [33][64] - The Organ Health products are expected to maintain a growth trajectory, driven by the increasing relevance of cell-free DNA in patient care [64] Company Strategy and Development Direction - The company plans to generate between $2.62 billion and $2.7 billion in revenues for 2026, with a focus on maintaining gross margins between 63% and 65% [7][31] - Investments will continue in R&D and clinical trials, particularly in MRD and early cancer detection technologies [36] - The company is pursuing broader Medicare reimbursement for Signatera, which could enhance ASPs and revenue potential [12][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth trajectory, citing strong performance in Q4 2025 and a solid start to 2026 [6][7] - The management highlighted the importance of clinical data generation and its role in expanding market share across various cancer types [20][61] - There is a clear path to profitability, with a focus on balancing growth investments and operational efficiency [30][36] Other Important Information - The company has submitted its Latitude tissue-free MRD assay to MolDX, which is expected to enhance its product offerings in colorectal cancer [24][26] - The acquisition of Foresight Diagnostics is anticipated to strengthen the company's capabilities in MRD testing [27][30] Q&A Session Summary Question: Can you discuss the net ASP impact from changes in Medicare rates? - Management indicated that changes in ADLT rates and bundle rates roughly net each other out, with continued execution on reimbursement expected to drive ASP growth [38] Question: What is the current mix of Signatera by indication? - The majority of Signatera volume is currently from colorectal cancer, but other tumor types are beginning to accelerate, with a significant focus on expanding coverage for additional indications [41][68] Question: How does the company view the potential for growth in heme MRD volumes? - Management acknowledged that while the current contribution from heme MRD volumes is limited, there is significant upside potential as the company leverages its recent acquisition and data generation capabilities [74] Question: What are the expectations for the Women's Health market in 2026? - The company expects to see mid-single-digit growth in Women's Health volumes, with potential for revenue growth driven by pricing gains [64]

Financial Data and Key Metrics Changes - The company processed approximately 924,000 tests in Q4 2025, with MRD clinical unit growth reaching 225,000 tests, a 56% increase compared to Q4 2024 [5][10] - Revenue for the quarter was around $666 million, representing a 40% growth year-over-year [5][6] - Gross margin for Q4 was reported at 66.9%, exceeding expectations and reflecting strong operational performance [5][11] - Cash flow generated in 2025 was over $107 million, with expectations for continued strong cash flow in 2026 [6][29] Business Line Data and Key Metrics Changes - The MRD product portfolio was significantly expanded with the launch of the genome version of Signatera and the Latitude MRD test [9][25] - The Fetal Focus single gene NIPT test was launched, addressing unmet clinical needs and showing robust performance metrics [12][14] - The organ health portfolio, particularly the Prospera donor DNA monitoring, continues to evolve, with significant investments aimed at improving clinical utility [16][18] Market Data and Key Metrics Changes - Over 50% of oncologists in the U.S. ordered a Signatera test in Q4, indicating strong adoption of MRD testing in clinical practice [10] - The company anticipates continued growth in women's health volumes and ASPs, with a strong start in Q1 2026 [32][62] - The organ health products are expected to maintain a growth trend, driven by the increasing relevance of cell-free DNA in patient care [62] Company Strategy and Development Direction - The company plans to invest in R&D while holding SG&A stable, focusing on targeted investments to drive future growth [6][36] - There is a strong emphasis on expanding reimbursement coverage for Signatera, with ongoing efforts to secure broader Medicare reimbursement [12][30] - The integration of AI-enabled workflows is expected to enhance operational efficiency and reimbursement processes [12][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operational and financial outlook for 2026, expecting revenue between $2.62 billion and $2.7 billion [6][30] - The company is focused on maintaining a path to profitability while continuing to invest in growth opportunities [29][36] - Management highlighted the importance of generating clinical evidence to support product adoption and market expansion [19][46] Other Important Information - The company has submitted its Latitude MRD assay to MolDX for colorectal cancer, which is expected to enhance MRD assessment capabilities [24][25] - The phased variant technology integrated into the Signatera platform is anticipated to improve detection sensitivity significantly [25][26] Q&A Session Summary Question: Can you discuss the net ASP impact from changes in Medicare rates? - Management indicated that changes in ADLT rates and bundle rates roughly net each other out, with continued execution on reimbursement for covered services expected to drive ASP growth [38] Question: What is the current mix of Signatera by indication? - The majority of Signatera volume is currently from CRC, but management expects other tumor types like breast and lung to gain traction, potentially normalizing the mix over time [66] Question: What are the expectations for women's health market share in 2025? - The company reported a record year in women's health and anticipates further growth with the introduction of the Fetal Focus test, which is expected to attract new customers [82]

Natera, Inc. Q4'2025 Earnings Presentation February 26, 2026 Safe harbor statement This presentation contains forward-looking statements under the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this presentation, including statements regarding our market opportunity, our anticipated products and launch schedules, our reimbursement coverage and our product costs, our commercial and strategic partnerships and potential acq ...