ADPT

This article first appeared on GuruFocus. Total Revenue: $71.6 million, up 30% year-over-year. MRD Revenue: $66.2 million, up 33% year-over-year; core MRD revenue (excluding milestones) grew 49%. Clinical Revenue (MRD): Increased 53% year-over-year, driven by a 43% increase in testing volumes and a 7% increase in ASP. Pharma Sequencing Revenue (MRD): Grew 38% year-over-year, excluding milestones. Immune Medicine Revenue: $5.4 million, up 8% year-over-year. Sequencing Gross Margin (MRD): 72%, up from 64% a year ago. MRD Adjusted EBITDA: $9.1 million, compared to $1.9 million a year ago. Total Company Adjusted EBITDA: Loss of $0.7 million. GAAP Net Loss: $39.9 million, including $26.4 million of debt extinguishment expense and interest expense. Cash Position: Approximately $357 million at quarter-end. Full-Year MRD Revenue Guidance: Raised to a range of $268 million to $278 million. Full-Year Operating Expense Guidance: Narrowed to $350 million to $355 million. Warning! GuruFocus has detected 5 Warning Sign with ADPT. Is ADPT fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. MRD revenue (excluding milestones) grew 49% year-over-year, driven by 43% growth in clinical testing volume and strong pharma sequencing. Sequencing gross margin expanded to 72%, up from 64% a year ago, reflecting lower assay costs and operating leverage. Clinical testing volume reached over 36,100 clonoSEQ tests, with 11% sequential growth and broad-based gains across all reimbursed indications. Blood-based testing exceeded 50% of total clonoSEQ volume for the first time, supporting more frequent testing and community adoption. The company raised full-year MRD revenue guidance to $268-$278 million and expects to achieve positive adjusted EBITDA and free cash flow by year-end 2026. Immune Medicine revenue was only $5.4 million, up 8% year-over-year, and the segment reported an adjusted EBITDA loss of $6.3 million. The company is winding down its research use only pharma services business, which operated around breakeven but was not core to Immune Medicine. No milestone revenue was recognized in Q2 2026, compared to $5.5 million in the prior year quarter, highlighting lumpiness in pharma revenue. The separation of Immune Medicine is still in process, with the preferred path not expected to be identified until year-end, creating near-term uncertainty. GAAP net loss was $39.9 million, including $26.4 million in debt extinguishment and interest expenses related to the retired OrbiMed financing agreement. Q: Can you talk about the drivers behind the 15% sequential growth in multiple myeloma, your largest indication, given it's a more mature market?A: Susan Bobulsky, Chief Commercial Officer - MRD: The growth reflects our continued focus on this top priority indication, particularly driven by the increase in blood-based testing. This is critical for accessing untapped users in the community setting where bone marrows are difficult and for increasing interim surveillance testing. We will continue to invest in this blood testing strategy, develop clinical actionability data (like the MIDAS trial), and leverage EMR integrations to standardize testing. Chad Robins, CEO, added that despite this strong quarter, they are only 17% penetrated in multiple myeloma, indicating a long growth runway. Q: As blood-based testing becomes a larger share of volume and drives more serial testing, should we focus on reported ASP or per-patient economics as the key metric?A: Chad Robins, CEO: Both are intertwined. We are in productive dialogue with Medicare's MolDx program to expand the number of tests per episode, which is the quickest way to address coverage gaps. This only applies to the Medicare population (~30% of business), as commercial payers don't have test number limits. We are also working on a recurrence monitoring indication for CLL. The main strategy is to increase tests per patient over their lifecycle, and we have multiple paths to ensure we get paid for that, which will be captured in the revenue line. Q: Can you provide detail on the concentration of volume from top ordering HCPs and how that informs your strategy to go deeper vs. broader?A: Susan Bobulsky, Chief Commercial Officer - MRD: In Q2, over 5,100 HCPs ordered clonoSEQ. The top 100 users make up about 10% of volume, and it takes about 2,000 providers to get 80% of the volume. The user base has become more distributed over time, reflecting our strategy to broaden use in the community. We still have a significant opportunity to go broader, as nearly half of U.S. hematology clinicians currently order clonoSEQ, but we also have room to go deeper with top users by standardizing testing and optimizing frequency through EMR tools. Q: Where do you stand with the two large commercial health plans you are recontracting with, and is this necessary to hit your $1,400 ASP target?A: Chad Robins, CEO: We have a productive dialogue going on with both. It's a matter of time, and we hope it will be resolved in the second half of this year. However, it is not necessary to hit the $1,400 ASP target as we have many other paths to get there. We would consider it potential upside. Q: What are you seeing in the competitive environment, particularly with Natera's Foresight offering, and how do you view your positioning?A: Susan Bobulsky, Chief Commercial Officer - MRD: We see competition in the field, especially in DLBCL, but we have not yet seen any attributable impact on our growth. We believe we have a winning position with an unparalleled technology platform purpose-built for hematology, a strong evidence base, established reimbursement, and EMR integrations. The DLBCL market is still very early and underdeveloped, so we view it as a market expansion opportunity where increased awareness of MRD benefits us. We also expect to benefit long-term from the enhanced version of our ccDNA assay launched last year. Q: Can you walk through the pacing for the MRD guide in the back half of the year? Does the implied slowdown from the low 40s growth rate reflect conservatism or specific headwinds?A: Susan Bobulsky, Chief Commercial Officer - MRD: We are very pleased with the first-half growth and feel comfortable delivering on the full-year guide of 38-40%. The midpoint of that range is the same growth rate we delivered last year, but off a much larger base, so we view it as a prudent place to be. We do not have specific expectations of deceleration; in fact, we are monitoring all main growth drivers which have trended strongly. On the pharma side, the business is lumpy and dependent on trial enrollment timing, so we remain prudent, but we see great trends with continued opportunity in multiple myeloma and leukemia. Q: Can you provide any incremental updates on the separation of the Immune Medicine business and the strategic value of a standalone MRD business?A: Chad Robins, CEO: The "worst outcome" is that the MRD business is free and clear to pursue its growth strategy. Immune Medicine is a call option, and we are evaluating different value-maximizing paths with our advisor, Morgan Stanley. The separation could take several forms, and we will provide further information at the appropriate time. Q: Does the updated volume guide assume a benefit from serial testing, or is that still upside? How do you see serial testing trending in the back half?A: Susan Bobulsky, Chief Commercial Officer - MRD: The guide does not necessarily contemplate specific increases in serial testing, although it is a key area of focus. We are pleased with the progress, having increased pull-through from 60% to 75% in our Flatiron/OncoEMR setting. We are applying these lessons to other settings, like our Epic customers, where we did our first custom serial tester interface in Q2. This remains a source of potential upside in the guide. Q: Do you think a heme-only MRD platform is sufficient long-term, or would the separation change your outlook on bolstering capabilities in solid tumors?A: Chad Robins, CEO: The separation and the additional capital from the convertible note allow us to look at leveraging our platformincluding clinical evidence generation, market access, and scalable lab operationsfor other opportunities. This could potentially include solid tumors or other disease areas. However, we will be disciplined in our capital allocation, applying filters to ensure any opportunity has high gross margins, high sensitivity/specificity, and a differentiated competitive advantage. We also want to reiterate that there is still a long growth runway ahead in the MRD heme business. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Adaptive Biotechnologies Corporation? Here are five stocks we like better. Revenue and MRD growth accelerated: Q2 revenue rose 30% year over year to $71.6 million, driven by a 33% increase in MRD revenue to $66.2 million. Clinical testing revenue climbed 53% on higher volumes and pricing, while blood-based testing and community adoption expanded significantly. Guidance and margins improved: Adaptive raised its full-year MRD revenue outlook to $268 million-$278 million and reported sequencing gross margin of 72%, up from 64% a year earlier. The company remains on track for positive adjusted EBITDA and free cash flow by the end of 2026. Strategic restructuring strengthened the balance sheet: The company completed a $340 million convertible note offering, ended the quarter with approximately $357 million in cash and is evaluating options to separate its Immune Medicine business by year-end. Adaptive Biotechnologies (NASDAQ:ADPT) reported second-quarter results marked by accelerating growth in its minimal residual disease, or MRD, business, improved margins and an increased full-year revenue outlook. The company also outlined further steps toward separating its Immune Medicine operation and strengthened its balance sheet through a $340 million convertible note offering. Total revenue rose 30% year over year to $71.6 million in the second quarter, with MRD contributing 92% of company revenue. MRD revenue increased 33% to $66.2 million. Excluding $5.5 million in milestone revenue recognized during the prior-year quarter, core MRD revenue grew 49%, according to Chief Financial Officer Kyle Piskel. → This Tiny AI Supplier Could Be More Important Than the Chipmakers “Q2 was an exceptional quarter for Adaptive and a clear validation of our strategy and execution,” Chief Executive Officer and Co-founder Chad Robins said. “We delivered excellent operating performance, took decisive strategic actions to unlock shareholder value, and strengthened our balance sheet.” Clinical revenue increased 53% from a year earlier, supported by a 43% increase in testing volume and a 7% increase in average selling price. The company delivered more than 36,100 clonoSEQ tests in the quarter, up 11% sequentially. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? U.S. average selling price increased to $1,382 per test, reflecting reimbursement gains and operational improvements from bringing certain revenue-cycle-management functions in house. Management said it remains on track to reach approximately $1,400 per test for the full year, citing contract price increases scheduled to take effect in the second half, expanded coverage in diffuse large B-cell lymphoma and mantle cell lymphoma, and ongoing discussions with two large commercial payers. Growth was broad across reimbursed indications. Multiple myeloma, Adaptive’s largest indication and accounting for 44% of clinical testing volume, grew 15% sequentially. Robins said the company remains only 17% penetrated in multiple myeloma, leaving what he described as a long runway for further growth. → Innovative ETF Strategies That Are Paying Off This Summer Blood-based testing continued to drive volume expansion. Blood-based clonoSEQ testing grew 68% year over year and 14% sequentially, reaching 51% of total testing volume for the first time. Blood testing represented 30% of MRD testing in multiple myeloma and 42% in acute lymphoblastic leukemia. Community testing represented 36% of clonoSEQ volume, exceeding the company’s full-year target and increasing 65% year over year. Nearly 5,200 clinicians ordered clonoSEQ during the quarter, a 40% increase from a year earlier. Adaptive said 75% of repeat orders were fulfilled through its Flatiron integration, up from 60% when the company initially measured the metric in the fourth quarter. The company completed its first Epic integration during the second quarter with a custom serial-testing interface. Management said serial testing, EMR-enabled workflows and broader adoption of blood-based testing could provide additional upside beyond current guidance. The company is also discussing expansion of Medicare coverage for testing beyond the current number of tests per episode in multiple myeloma, while working on a recurrence-monitoring indication in chronic lymphocytic leukemia. MRD pharma sequencing revenue rose 38% year over year excluding milestones. Adaptive ended the quarter with 189 active global clinical trials and approximately $245 million in backlog, up 12% from the prior year. About 60% of active studies now use MRD as a regulated primary or secondary endpoint, compared with roughly 40% several years ago. Management said such studies generally carry higher economic value and could create opportunities for future milestone payments tied to regulatory approvals. While multiple myeloma remains the largest part of Adaptive’s registrational portfolio, the company said it is also seeing growth in chronic lymphocytic leukemia and acute lymphoblastic leukemia studies. Management noted that pharma revenue can be uneven because it depends on trial enrollment and sample-arrival timing. Adaptive raised its full-year MRD revenue outlook to a range of $268 million to $278 million, from a previous range of $260 million to $270 million. The revised outlook assumes clinical testing volume growth of 38% to 40%, compared with the company’s prior forecast of 35% growth. The outlook includes $9 million in MRD milestone revenue, all of which was recognized in the first quarter, and assumes no additional milestone revenue in the second half. At the midpoint, the guidance implies 29% year-over-year MRD revenue growth, or 37% growth excluding milestones. Sequencing gross margin, excluding MRD milestones, was 72% in the quarter, compared with 64% a year earlier. Piskel attributed the improvement to lower assay costs following the NovaSeq X transition and operating leverage from higher volumes. MRD adjusted EBITDA rose to $9.1 million from $1.9 million in the prior-year quarter. The company narrowed its full-year operating expense outlook to $350 million to $355 million, from $350 million to $360 million, reflecting lower expected spending in Immune Medicine. Adaptive said it remains on track to achieve positive adjusted EBITDA and positive free cash flow for the entire company by the end of 2026. GAAP net loss was $39.9 million, including $26.4 million of debt-extinguishment expense and interest expense associated with the settled OrbiMed financing agreement. Adaptive said it continues to evaluate strategic and structural alternatives to separate its Immune Medicine business and expects to identify a preferred path by year-end. Morgan Stanley has been retained as an adviser. As part of the process, Harlan Robins is transitioning from his role as chief scientific officer to a consultant role. He will support MRD research and development initiatives while spending substantial time on the Immune Medicine separation, according to the company. Adaptive also said it will wind down its research-use-only pharma services business, which management said operated around break-even but was not central to Immune Medicine’s differentiated assets. The remaining focus will be on proprietary T-cell receptor antigen data, artificial intelligence and machine-learning digital models, and autoimmune-disease target discovery. The company plans to enter a trial agreement with Harrell Data Corp., an independent cloud-based marketplace founded by Harlan Robins, to explore a commercialization model for proprietary datasets and AI models. Adaptive also said its rheumatoid arthritis program with Pfizer remains an important Immune Medicine initiative. During the quarter, Adaptive completed a $340 million zero-coupon convertible note offering, retired the OrbiMed agreement and ended the period with approximately $357 million in cash. The financing included a capped-call transaction and share repurchase intended to reduce potential shareholder dilution, management said. Adaptive Biotechnologies is a clinical-stage biotechnology company that focuses on harnessing the adaptive immune system to transform the diagnosis and treatment of disease. Through proprietary immune receptor sequencing and analysis, the company decodes the genetic information of T-cell and B-cell receptors to identify signatures of immune response. Its core technology platform provides insights into immune-driven conditions, enabling more precise monitoring and targeted therapeutic development. The company's flagship product, immunoSEQ, offers high-throughput immune repertoire profiling for researchers and pharmaceutical partners. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Adaptive Biotechnologies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

SEATTLE, July 29, 2026 (GLOBE NEWSWIRE) -- Adaptive Biotechnologies Corporation (“Adaptive Biotechnologies”) (Nasdaq: ADPT), a commercial stage biotechnology company that aims to translate the genetics of the adaptive immune system into clinical products to diagnose and treat disease, today reported financial results for the quarter ended June 30, 2026. “We delivered an exceptional second quarter, driven by expanding growth and profitability in MRD, including both our clinical and biopharma businesses,” said Chad Robins, chief executive officer and co-founder of Adaptive Biotechnologies. “The combination of our operating performance, fortified balance sheet and plan to separate the Immune Medicine business enhances our ability to create long-term value for our shareholders.” Recent Highlights Revenue for the second quarter of 2026 was $71.6 million. The MRD business, which contributed 92% of revenue, grew 33% versus the second quarter of 2025. clonoSEQ® test volume in the second quarter of 2026 increased 43% to 36,111 tests delivered versus the second quarter of 2025. Completed a $345 million zero-coupon convertible senior notes offering, repaid the OrbiMed Purchase Agreement, and increased financial flexibility to support strategic priorities. The company announced plans to pursue a separation of its MRD and Immune Medicine businesses. Harlan Robins is transitioning roles at Adaptive from Chief Scientific Officer to a strategic consultant focused on key MRD R&D initiatives and the separation of the Immune Medicine business. Raising full year 2026 MRD revenue guidance to a new range of $268 million to $278 million, implying annual growth of 26% to 31%. Second Quarter 2026 Financial Results Revenue was $71.6 million for the quarter ended June 30, 2026, representing a 22% increase from the second quarter in the prior year. Excluding revenue recognized under the Genentech Agreement, which did not generate revenue in the quarter ended June 30, 2026, revenue for the current quarter increased 30% from the second quarter in the prior year. MRD revenue was $66.2 million for the quarter, representing a 33% increase from the second quarter in the prior year. Immune Medicine revenue was $5.4 million for the quarter, representing a 40% decrease from the second quarter in the prior year. Excluding revenue generated from the Genentech Agreement, Immune Medicine revenue for the quarter ended June 30, 2026 increased 8% from the second quarter in the prior year. Operating expenses for the second quarter of 2026 were $87.3 million, compared to $83.9 million in the second quarter of the prior year, representing an increase of 4%. Interest and other income, net was $2.3 million for the second quarter of 2026, compared to $2.4 million in the second quarter of the prior year. Interest expense was $2.7 million for the second quarter of 2026, compared to $2.9 million in the second quarter of the prior year. Net loss was $39.9 million for the second quarter of 2026, compared to $25.6 million for the same period in 2025. Excluding the loss recognized on the settlement of the OrbiMed Purchase Agreement, net loss was $16.2 million for the second quarter of 2026. Excluding revenue generated from the Genentech Agreement, net loss was $29.5 million for the second quarter of 2025. Adjusted EBITDA (non-GAAP) was a loss of $0.7 million for the second quarter of 2026, compared to a loss of $7.2 million for the second quarter of the prior year. Excluding revenue generated from the Genentech Agreement, Adjusted EBITDA was a loss of $11.1 million for the second quarter of 2025. Cash, cash equivalents and marketable securities was $371.7 million as of June 30, 2026, inclusive of $15.1 million of cash and cash equivalents held by Digital Biotechnologies, Inc. 2026 Updated Financial Guidance Adaptive Biotechnologies expects full year revenue for the MRD business to be between $268 million and $278 million, updated from the previous range between $260 million and $270 million. No revenue guidance is provided for the Immune Medicine business. We expect full year total company operating expenses, including cost of revenue, to be between $350 million and $355 million, updated from the previous range between $350 million and $360 million. Management will provide further details on the outlook during the conference call. Webcast and Conference Call Information Adaptive Biotechnologies will host a conference call to discuss its second quarter 2026 financial results after market close on Wednesday, July 29, 2026 at 4:30 PM Eastern Time. The conference call can be accessed at http://investors.adaptivebiotech.com. The webcast will be archived and available for replay at least 90 days after the event. About Adaptive Biotechnologies Adaptive Biotechnologies (“we” or “our”) is a commercial-stage biotechnology company focused on harnessing the inherent biology of the adaptive immune system to transform the diagnosis and treatment of disease. We believe the adaptive immune system is nature’s most finely tuned diagnostic and therapeutic for most diseases, but the inability to decode it has prevented the medical community from fully leveraging its capabilities. Our proprietary immune medicine platform reveals and translates the massive genetics of the adaptive immune system with scale, precision and speed. We apply our platform to partner with biopharmaceutical companies, inform drug development, and develop clinical diagnostics across our two business segments: Minimal Residual Disease (MRD) and Immune Medicine. Our commercial products and clinical pipeline enable the diagnosis, monitoring, and treatment of diseases such as cancer and autoimmune disorders. Our goal is to develop and commercialize immune-driven clinical products tailored to each individual patient. Forward-Looking Statements This press release contains forward-looking statements that are based on management’s beliefs and assumptions and on information currently available to management. All statements contained in this release other than statements of historical fact are forward-looking statements, including statements regarding our ability to develop, commercialize and achieve market acceptance of our current and planned products and services, our research and development efforts and other matters regarding our business strategies, use of capital, results of operations and financial position and plans and objectives for future operations. In some cases, you can identify forward-looking statements by the words “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties and other factors are described under "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in the documents we file with the Securities and Exchange Commission from time to time. We caution you that forward-looking statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. As a result, the forward-looking statements may not prove to be accurate. The forward-looking statements in this press release represent our views as of the date hereof. We undertake no obligation to update any forward-looking statements for any reason, except as required by law. Use of Non-GAAP Financial Measure To supplement our unaudited condensed consolidated statements of operations and unaudited condensed consolidated balance sheets, which are prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”), this press release also includes references to Adjusted EBITDA, which is a non-GAAP financial measure that we define as net loss attributable to Adaptive Biotechnologies Corporation adjusted for interest and other income, net, interest expense, income tax (expense) benefit, depreciation and amortization expense, impairment costs for long-lived assets, restructuring expense, share-based compensation expense and revenue interest liability extinguishment loss. We define our segment Adjusted EBITDA in the same way to the extent the net loss attributable to Adaptive Biotechnologies Corporation and adjustments are allocable to each segment. We have provided reconciliations of net loss attributable to Adaptive Biotechnologies Corporation, the most directly comparable GAAP financial measure, to Adjusted EBITDA at the end of this press release. Management uses Adjusted EBITDA, including segment Adjusted EBITDA, to evaluate the financial performance of our business and segments and to evaluate the effectiveness of our strategies. We present these figures because we believe it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry and it facilitates comparisons on a consistent basis across reporting periods. Further, we believe it is helpful in highlighting trends in our operating results because it excludes items that are not indicative of our core operating performance. Adjusted EBITDA, including segment Adjusted EBITDA, has limitations as an analytical tool and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. We may in the future incur expenses similar to the adjustments we make. In particular, we expect to incur meaningful share-based compensation expense in the future. Other limitations include that Adjusted EBITDA, including segment Adjusted EBITDA, does not reflect: all expenditures or future requirements for capital expenditures or contractual commitments; changes in our working capital needs; interest income and interest expense, which is an ongoing element of our costs to operate; income tax (expense) benefit, which may be a necessary element of our costs and ability to operate; the costs of replacing the assets being depreciated and amortized, which will often have to be replaced in the future; the noncash component of employee compensation expense; long-lived assets impairment costs; and the impact of earnings or charges resulting from matters we consider not to be reflective, on a recurring basis, of our ongoing operations, such as our restructuring activities, reductions in workforce and our revenue interest liability extinguishment loss. In addition, Adjusted EBITDA, including segment Adjusted EBITDA, may not be comparable to similarly titled measures used by other companies in our industry or across different industries. ADAPTIVE INVESTORSKarina Calzadilla, Vice President, Investor Relations and FP&[email protected] ADAPTIVE MEDIAErica Jones, Associate Corporate Communications [email protected] Adjusted EBITDA The following is a reconciliation of net loss attributable to Adaptive Biotechnologies Corporation, the most directly comparable GAAP financial measure, to Adjusted EBITDA for the periods presented (in thousands, unaudited): Segment Information (Including Segment Adjusted EBITDA) The following sets forth segment information for the periods presented (in thousands, unaudited): (1) Expenses related to Digital Biotechnologies, Inc. are no longer included in the Immune Medicine segment.

Earlier this week, Adaptive Biotechnologies was upgraded to a Zacks Rank #2 (Buy) following upward revisions to its earnings estimates and expectations for a smaller quarterly loss alongside higher revenue for the June 2026 quarter. This shift in analyst expectations suggests confidence that the company’s underlying business trends are improving, supported by a recent pattern of earnings estimate beats. Now we’ll examine how this upward revision in earnings expectations may influence Adaptive Biotechnologies’ existing investment narrative around MRD growth and profitability. The future of work is here. Discover the 33 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. To own Adaptive Biotechnologies, you need to believe that MRD testing via clonoSEQ can scale into a durable, higher-margin business while the company narrows its overall losses. The Zacks Rank upgrade, tied to expectations for a smaller June 2026 quarterly loss and higher revenue, directly supports the near term profitability catalyst, but does not remove the key risk that sustained company-wide losses and cash burn could eventually force tough funding or cost decisions. The most relevant recent news alongside this upgrade is Adaptive’s raised 2026 MRD revenue guidance to US$260 million to US$270 million, which aligns with the improved earnings outlook and reinforces MRD as the core growth driver. As investors weigh this against continued unprofitability and the planned separation of MRD and Immune Medicine, the question is whether MRD progress can offset partnership, reimbursement, and competition risks quickly enough to reshape the overall story. Yet behind the improving estimates, investors should be aware that prolonged overall unprofitability could still force difficult choices around... Read the full narrative on Adaptive Biotechnologies (it's free!) Adaptive Biotechnologies' narrative projects $451.6 million revenue and $70.4 million earnings by 2029. This assumes 15.2% yearly revenue growth and an earnings increase of about $120 million from -$49.7 million today. Uncover how Adaptive Biotechnologies' forecasts yield a $20.14 fair value, a 8% downside to its current price. While consensus is cautious, the most optimistic analysts see revenue reaching about US$475.6 million and earnings of roughly US$20.5 million by 2029, so this earnings upgrade may either support that faster payer adoption thesis or highlight how much still has to go right, depending on how you weigh the risk of sustained high R&D and SG&A spending slowing the path to true profitability. Explore 3 other fair value estimates on Adaptive Biotechnologies - why the stock might be worth as much as 30% more than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Adaptive Biotechnologies research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Our free Adaptive Biotechnologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Adaptive Biotechnologies' overall financial health at a glance. Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay: We've uncovered the 7 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This technology could replace computers: discover 26 stocks that are working to make quantum computing a reality. Invest in the nuclear renaissance through our list of 90 elite nuclear energy infrastructure plays powering the global AI revolution. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ADPT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Wall Street expects a year-over-year increase in earnings on higher revenues when Agios Pharmaceuticals (AGIO) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This biopharmaceutical company is expected to post quarterly loss of $1.86 per share in its upcoming report, which represents a year-over-year change of +3.6%. Revenues are expected to be $22.68 million, up 82.2% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Agios Pharmaceuticals, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +12.67%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Agios Pharmaceuticals will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Agios Pharmaceuticals would post a loss of$1.81 per share when it actually produced a loss of -$1.69, delivering a surprise of +6.63%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Agios Pharmaceuticals appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Medical - Biomedical and Genetics industry, Adaptive Biotechnologies (ADPT), is soon expected to post loss of $0.13 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +23.5%. This quarter's revenue is expected to be $66.27 million, up 12.6% from the year-ago quarter. The consensus EPS estimate for Adaptive Biotechnologies has remained unchanged over the last 30 days. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Adaptive Biotechnologies will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Agios Pharmaceuticals, Inc. (AGIO) : Free Stock Analysis Report Adaptive Biotechnologies Corporation (ADPT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Adaptive Biotechnologies (ADPT) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 29. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This life-sciences research company is expected to post quarterly loss of $0.13 per share in its upcoming report, which represents a year-over-year change of +23.5%. Revenues are expected to be $66.27 million, up 12.6% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Adaptive Biotechnologies, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that Adaptive Biotechnologies will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Adaptive Biotechnologies would post a loss of$0.16 per share when it actually produced a loss of -$0.13, delivering a surprise of +18.75%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Adaptive Biotechnologies doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Medical - Biomedical and Genetics industry, Alkermes (ALKS), is soon expected to post loss of $0.04 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -107.7%. This quarter's revenue is expected to be $453.98 million, up 16.2% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Alkermes has remained unchanged. Nevertheless, the company now has an Earnings ESP of +125.00%, reflecting a higher Most Accurate Estimate. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Alkermes will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Adaptive Biotechnologies Corporation (ADPT) : Free Stock Analysis Report Alkermes plc (ALKS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

MRD-driven beat and raised guidance: Q1 revenue was $70.9M (+45% y/y) with MRD comprising ~95% of sales and MRD revenue up 53% to $67.1M, and management raised full-year MRD guidance to $260M–$270M (midpoint ≈ 25% y/y growth, 33% excluding a $9M milestone recognized in Q1). Clinical adoption accelerating: clonoSEQ tests set a quarterly record (~632,600), community volumes grew 67% y/y and blood-based testing comprised 49% of MRD volume, while U.S. average selling price rose 11% to $1,360 (target ~ $1,400 in 2026). Biopharma bookings and improving margins point to cash-path: backlog climbed to ~$254M (+24% y/y) with the company recognizing its first U.S. MRD milestone in CEPHEUS, sequencing gross margin rose to 70% (from 62%), MRD adjusted EBITDA was $12.1M, cash was ~$222M, and management targets positive adjusted EBITDA and free cash flow for the full company by end of 2026. Interested in Adaptive Biotechnologies Corporation? Here are five stocks we like better. Adaptive Biotechnologies (NASDAQ:ADPT) reported first-quarter 2026 results that executives said showed “accelerating momentum” in measurable residual disease (MRD) testing, alongside continued operational efficiency gains and a higher full-year MRD revenue outlook. Total revenue was $70.9 million, up 45% year over year, according to Chief Financial Officer Kyle Piskel. MRD represented about 95% of revenue, with MRD revenue rising 53% to $67.1 million. Piskel said MRD revenue was split 65% clinical and 35% biopharma. Immune Medicine revenue was $3.8 million, down 26% from the prior year due primarily to the timing of sample receipts and processing. → Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook Chief Executive Officer and Co-founder Chad Robins said the company is “raising our full-year MRD revenue guidance to a range of $260 million-$270 million,” citing strength in the MRD business. Piskel said the updated range includes $9 million of MRD milestone revenue recognized in the first quarter and that the company “do[es] not anticipate additional milestone revenue for the remainder of the year.” He added that, at the midpoint, the guidance implies about 25% year-over-year growth, or 33% excluding milestones, and that MRD revenue is expected to be weighted 45% in the first half and 55% in the second half of 2026. Robins said MRD clinical revenue increased 54% year over year, and that clonoSEQ clinical volumes grew 41% year over year. He reported clonoSEQ tests reached “another quarterly record of almost 632,600 in Q1,” up 9% sequentially, with growth across reimbursed indications led by DLBCL at “over 19% growth versus prior quarter.” → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches Robins highlighted several adoption dynamics the company views as durable drivers: Blood-based testing: 49% of MRD volume, with multiple myeloma blood-based MRD rising to 29% (up 8 percentage points year over year). Community setting growth: Community volumes grew 67% year over year and represented 35% of total testing. EMR-enabled workflows and repeat utilization: Robins said serial monitoring orders available to Flatiron-integrated accounts are “widely being utilized,” and that 72% of repeat orders due are being fulfilled. Ordering clinician expansion: Ordering clinicians rose 43% year over year to nearly 5,000. Pricing: U.S. average selling price increased 11% year over year to $1,360 per test, with the company targeting roughly $1,400 per test in 2026. Robins also noted clonoSEQ’s inclusion in the Texas Medicaid Policy Manual, stating it is “1 of only 2 specific tests included in the newly developed genetic testing section,” with patients eligible for up to six tests per year. → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries On the evolution of community adoption, Chief Commercial Officer Susan Bobulsky told analysts conversations have moved from “what is MRD” to “practical implementation,” including the establishment of standardized testing protocols in large community centers and networks. In biopharma, Robins said the company delivered “one of the strongest quarters to date” in MRD pharma, with revenue up 53% year over year, or 33% excluding milestones. He said Adaptive recognized its “first milestone in the U.S. tied to MRD as a primary endpoint in the CEPHEUS trial in multiple myeloma.” Robins said new bookings were strong, lifting backlog to about $254 million, up 24% year over year. He added that bookings came primarily from regulated studies, including several registrational trials using MRD as a primary or co-primary endpoint in multiple myeloma and CLL, and that the company has about 20 ongoing interventional studies using MRD for enrollment, stratification, or to guide therapy decisions. Bobulsky later provided a breakdown of active study types, saying the company has about 190 active studies, with 111 categorized as primary or secondary endpoint studies; of those, 23 are primary and 88 are secondary. Piskel said primary endpoint milestones are “typically a little bit higher” than the secondary endpoint milestones that have historically represented most of the company’s milestone experience, while noting terms vary by deal. Asked about accelerating pharma MRD bookings and potential revenue conversion, Piskel said the company was “prudent” in maintaining expectations given pharma lumpiness, but added that continued momentum could create “opportunity to lift the guide in the back half of the year or even potentially next quarter.” Piskel said sequencing gross margin (excluding MRD milestones) was 70% in the quarter, up from 62% a year ago, driven by reduced assay costs from efficiencies tied to the NovaSeq launch in the second half of 2025, overhead leverage as volumes grew, and “favorable pricing trends across both clinical and pharma.” Robins also cited an 8-percentage-point year-over-year increase in sequencing gross margin to 70%. Total operating expenses, including cost of revenue, were $90.1 million, up 10% year over year, which Piskel attributed mainly to investments in commercial infrastructure such as EMR integrations and reimbursement, as well as higher personnel costs. Segment results showed MRD adjusted EBITDA of $12.1 million compared with a loss of $4.1 million a year ago, while Immune Medicine adjusted EBITDA was a loss of $10.4 million. At the company level, adjusted EBITDA was a loss of $2.5 million. Net loss was $20 million, including approximately $2.9 million of interest expense related to a royalty financing agreement with OrbiMed. Robins said the company ended the quarter with about $222 million in cash and “reducing cash burn.” Piskel reiterated full-year operating expense guidance of $350 million to $360 million, with spend allocated approximately 75% to MRD, around 20% to Immune Medicine, and the remainder to corporate. He also said the company remains on track to achieve “positive adjusted EBITDA and positive free cash flow for the full company by the end of 2026.” During Q&A, Robins addressed questions about reimbursement dynamics and the potential impact of CMS initiatives. He said Adaptive determined, after internal and external evaluation with outside counsel, that it is “currently not subject to PAMA reporting requirements for this cycle,” pointing to statutory requirements and explaining that clonoSEQ’s episodic billing structure is not identified by CMS as being on the Clinical Laboratory Fee Schedule list. He added that Medicare revenue under the PLA code used for mantle cell lymphoma recurrence monitoring is considered on the CLFS, but those revenues are “well below the 50% revenue threshold” for the current reporting period. Robins said the company is pursuing a “multi-pronged strategy” including recurrence monitoring and “productive discussion with MolDX to increase the number of tests per bundle” under the episode structure, while declining to predict timing due to the nature of government agencies and contractors. Management also discussed ongoing Immune Medicine work, including scaling TCR-antigen datasets and a rheumatoid arthritis target discovery partnership with Pfizer. Robins said the company has received over 1,000 patient samples and is on track to deliver the RA data package in the second half of 2026, while operating within an expected Immune Medicine cash burn range of $15 million to $20 million for the year. Adaptive Biotechnologies is a clinical-stage biotechnology company that focuses on harnessing the adaptive immune system to transform the diagnosis and treatment of disease. Through proprietary immune receptor sequencing and analysis, the company decodes the genetic information of T-cell and B-cell receptors to identify signatures of immune response. Its core technology platform provides insights into immune-driven conditions, enabling more precise monitoring and targeted therapeutic development. The company's flagship product, immunoSEQ, offers high-throughput immune repertoire profiling for researchers and pharmaceutical partners. The article "Adaptive Biotechnologies Q1 Earnings Call Highlights" was originally published by MarketBeat.

SEATTLE, May 05, 2026 (GLOBE NEWSWIRE) -- Adaptive Biotechnologies Corporation (“Adaptive Biotechnologies”) (Nasdaq: ADPT), a commercial stage biotechnology company that aims to translate the genetics of the adaptive immune system into clinical products to diagnose and treat disease, today reported financial results for the quarter ended March 31, 2026. “We delivered strong first quarter results based on accelerating adoption of MRD across both clinical testing and drug development. Our performance reinforces our market leadership position and the differentiated value of our platform,” said Chad Robins, chief executive officer and co-founder of Adaptive Biotechnologies. “With disciplined execution and multiple growth drivers in place, we are well positioned to sustain our growth trajectory and create long-term value.” Recent Highlights Revenue for the first quarter of 2026 was $70.9 million. The MRD business, which contributed 95% of revenue, grew 53% versus the first quarter of 2025. clonoSEQ® test volume in the first quarter of 2026 increased 41% to 32,595 tests delivered versus the first quarter of 2025. Recognized $9.0 million in MRD pharma regulatory milestone revenue, the first U.S. primary endpoint milestone. Raising full year 2026 MRD revenue guidance to a new range of $260 million to $270 million, implying annual growth of 22% to 27%. First Quarter 2026 Financial Results Revenue was $70.9 million for the quarter ended March 31, 2026, representing a 35% increase from the first quarter in the prior year. Excluding revenue recognized under the Genentech Agreement, which did not generate revenue in the quarter ended March 31, 2026, revenue for the current quarter increased 45% from the first quarter in the prior year. MRD revenue was $67.1 million for the quarter, representing a 53% increase from the first quarter in the prior year. Immune Medicine revenue was $3.8 million for the quarter, representing a 57% decrease from the first quarter in the prior year. Excluding revenue from the Genentech Agreement, Immune Medicine revenue for the quarter ended March 31, 2026 decreased 26% from the first quarter in the prior year. Operating expenses for the first quarter of 2026 were $90.1 million, compared to $82.0 million in the first quarter of the prior year, representing an increase of 10%. Interest and other income, net was $2.1 million for the first quarter of 2026, compared to $2.7 million in the first quarter of the prior year. Interest expense from our revenue interest purchase agreement was $2.9 million in both the first quarter of 2026 and the first quarter of the prior year. Net loss was $20.0 million for the first quarter of 2026, compared to $29.8 million for the same period in 2025. Excluding revenue generated from the Genentech Agreement, net loss was $33.4 million for the first quarter of 2025. Adjusted EBITDA (non-GAAP) was a loss of $2.5 million for the first quarter of 2026, compared to a loss of $12.7 million for the first quarter of the prior year. Excluding revenue generated from the Genentech Agreement, Adjusted EBITDA was a loss of $16.3 million for the first quarter of 2025. Cash, cash equivalents and marketable securities was 237.2 million as of March 31, 2026, inclusive of $15.3 million of cash and cash equivalents held by Digital Biotechnologies, Inc. 2026 Updated Financial Guidance Adaptive Biotechnologies expects full year revenue for the MRD business to be between $260 million and $270 million, updated from the previous range between $255 million and $265 million. No revenue guidance is provided for the Immune Medicine business. We expect full year total company operating expenses, including cost of revenue, to be between $350 million and $360 million. Management will provide further details on the outlook during the conference call. Webcast and Conference Call Information Adaptive Biotechnologies will host a conference call to discuss its first quarter 2026 financial results after market close on Tuesday, May 5, 2026 at 4:30 PM Eastern Time. The conference call can be accessed at http://investors.adaptivebiotech.com. The webcast will be archived and available for replay at least 90 days after the event. About Adaptive Biotechnologies Adaptive Biotechnologies (“we” or “our”) is a commercial-stage biotechnology company focused on harnessing the inherent biology of the adaptive immune system to transform the diagnosis and treatment of disease. We believe the adaptive immune system is nature’s most finely tuned diagnostic and therapeutic for most diseases, but the inability to decode it has prevented the medical community from fully leveraging its capabilities. Our proprietary immune medicine platform reveals and translates the massive genetics of the adaptive immune system with scale, precision and speed. We apply our platform to partner with biopharmaceutical companies, inform drug development, and develop clinical diagnostics across our two business segments: Minimal Residual Disease (MRD) and Immune Medicine. Our commercial products and clinical pipeline enable the diagnosis, monitoring, and treatment of diseases such as cancer and autoimmune disorders. Our goal is to develop and commercialize immune-driven clinical products tailored to each individual patient. Forward-Looking Statements This press release contains forward-looking statements that are based on management’s beliefs and assumptions and on information currently available to management. All statements contained in this release other than statements of historical fact are forward-looking statements, including statements regarding our ability to develop, commercialize and achieve market acceptance of our current and planned products and services, our research and development efforts and other matters regarding our business strategies, use of capital, results of operations and financial position and plans and objectives for future operations. In some cases, you can identify forward-looking statements by the words “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties and other factors are described under "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in the documents we file with the Securities and Exchange Commission from time to time. We caution you that forward-looking statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. As a result, the forward-looking statements may not prove to be accurate. The forward-looking statements in this press release represent our views as of the date hereof. We undertake no obligation to update any forward-looking statements for any reason, except as required by law. Use of Non-GAAP Financial Measure To supplement our unaudited condensed consolidated statements of operations and unaudited condensed consolidated balance sheets, which are prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”), this press release also includes references to Adjusted EBITDA, which is a non-GAAP financial measure that we define as net loss attributable to Adaptive Biotechnologies Corporation adjusted for interest and other income, net, interest expense, income tax (expense) benefit, depreciation and amortization expense, impairment costs for long-lived assets, restructuring expense and share-based compensation expense. We define our segment Adjusted EBITDA in the same way to the extent the net loss attributable to Adaptive Biotechnologies Corporation and adjustments are allocable to each segment. We have provided reconciliations of net loss attributable to Adaptive Biotechnologies Corporation, the most directly comparable GAAP financial measure, to Adjusted EBITDA at the end of this press release. Management uses Adjusted EBITDA, including segment Adjusted EBITDA, to evaluate the financial performance of our business and segments and to evaluate the effectiveness of our strategies. We present these figures because we believe it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry and it facilitates comparisons on a consistent basis across reporting periods. Further, we believe it is helpful in highlighting trends in our operating results because it excludes items that are not indicative of our core operating performance. Adjusted EBITDA, including segment Adjusted EBITDA, has limitations as an analytical tool and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. We may in the future incur expenses similar to the adjustments we make. In particular, we expect to incur meaningful share-based compensation expense in the future. Other limitations include that Adjusted EBITDA, including segment Adjusted EBITDA, does not reflect: all expenditures or future requirements for capital expenditures or contractual commitments; changes in our working capital needs; interest expense, which is an ongoing element of our costs to operate; income tax (expense) benefit, which may be a necessary element of our costs and ability to operate; the costs of replacing the assets being depreciated and amortized, which will often have to be replaced in the future; the noncash component of employee compensation expense; long-lived assets impairment costs; and the impact of earnings or charges resulting from matters we consider not to be reflective, on a recurring basis, of our ongoing operations, such as our restructuring activities and reductions in workforce. In addition, Adjusted EBITDA, including segment Adjusted EBITDA, may not be comparable to similarly titled measures used by other companies in our industry or across different industries. ADAPTIVE INVESTORS Karina Calzadilla, Vice President, Investor Relations and FP&A 201-396-1687 [email protected] ADAPTIVE MEDIA Erica Jones, Associate Corporate Communications Director 206-279-2423 [email protected] Adjusted EBITDA The following is a reconciliation of net loss attributable to Adaptive Biotechnologies Corporation, the most directly comparable GAAP financial measure, to Adjusted EBITDA for the periods presented (in thousands, unaudited): Segment Information (Including Segment Adjusted EBITDA) The following sets forth segment information for the periods presented (in thousands, unaudited): (1) Expenses related to Digital Biotechnologies, Inc. are no longer included in the Immune Medicine segment.