NTRA

Natera’s second quarter results were positively received by the market, driven by robust sales volume growth and ongoing momentum in both established and emerging product lines. Management attributed the quarter’s strength to record-breaking test volumes—particularly for Signatera in oncology—and the successful launch of an enhanced Panorama prenatal test. CEO Steven Chapman highlighted increased adoption across tumor types and cited critical milestones, including FDA and Japanese regulatory approvals for Signatera, as key contributors to elevated clinical adoption. The quarter also saw a notable improvement in gross margins, which management linked to higher average selling prices and the scaling of recently launched products. Is now the time to buy NTRA? Find out in our full research report (it’s free). Revenue: $752.8 million vs analyst estimates of $662.6 million (37.7% year-on-year growth, 13.6% beat) Adjusted EPS: -$0.47 vs analyst estimates of -$0.53 (12% beat) Operating Margin: -10.1%, up from -20.2% in the same quarter last year Sales Volumes rose 22.4% year on year (12.2% in the same quarter last year) Market Capitalization: $45.54 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Puneet Souda (Leerink Partners) asked how sustainable the quarter’s Signatera growth and adoption are, and CEO Steven Chapman highlighted the cumulative effects of regulatory approvals, salesforce expansion, and strong data as drivers, but cautioned not to expect the same sequential growth each quarter. Dan Brennan (TD Cowen) questioned the ongoing potential for sequential pricing increases for Signatera, and CFO Michael Brophy explained that near-term ASP gains are likely to be modest, with larger step-ups dependent on future guideline and coverage decisions. David Westenberg (Piper Sandler) probed on competitive dynamics in MRD testing, and Chapman acknowledged competition but emphasized that market penetration is still low, leaving substantial growth potential for Natera despite new entrants. Noah Kava (Jefferies) sought color on share gains in women’s health, and Chapman pointed to recent product enhancements and technology investments as factors driving above-market growth and improved competitive positioning. Kallum Titchmarsh (Morgan Stanley) asked about the pace of Signatera’s Japan launch, and President Solomon Moshkevich expressed confidence in rapid awareness-building due to strong local guidelines and a combination of distribution and direct sales efforts. In upcoming quarters, StockStory analysts will closely monitor (1) further progress in securing expanded payer coverage and guideline inclusions for Signatera, (2) the commercial rollout and reimbursement ramp in Japan, and (3) the pace of prospective clinical study readouts supporting expanded product indications. Additionally, we will track improvements in cost of goods sold and operational efficiency as new products scale. Natera currently trades at $316.01, up from $265.38 just before the earnings. Is there an opportunity in the stock? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 4:30 p.m. ET Chief Financial Officer - Michael Brophy Chief Executive Officer - Steven Leonard Chapman President, Clinical Diagnostics - Solomon Moshkevich General Manager of Oncology and Chief Medical Officer - Alexey Aleshin Operator: Hello, everyone. Thank you for joining us, and welcome to Natera's second quarter 26 earnings conference call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Michael Brophy, chief financial officer. Michael, please go ahead. Michael Brophy: Thanks, operator. Good afternoon. Thank you for joining our conference call to discuss the results of our second quarter of 26. On the line, I am joined by Steven Leonard Chapman, our CEO Solomon Moshkevich, president, clinical diagnostics and Alexey Aleshin, general manager of oncology and our chief medical officer. Today's conference call is being broadcast live via webcast. We will be referring to a slide presentation that has been posted to investor.natera.com. A replay of the call will also be posted to our IR site as soon as it is available. Starting on Slide 2. During the course of this conference call, we will make forward looking statements regarding future events and our future performance, such as our operational and financial outlook and projections, our assumptions for that outlook, market size, partnerships, clinical studies, and expected results, opportunities, and strategies and expectations for various current and future products, including product capabilities, expected release dates, reimbursement coverage, and related effects on our financial and operating results. We caution you that such statements reflect our best judgment based on factors currently known to us and that actual events or results could differ materially. Please refer to the documents we file from time to time with the SEC including our most recent Form 10 k or 10 Q, and the Form 8-Ks filed with today's press release. Those documents identify important risks and other factors that may cause our actual results to differ materially from those contained in or suggested by the forward looking statements. Forward looking statements made during the call are being made as of today, August 6, 2020. If this call is replayed or reviewed after today, information presented during the call may not contain current or accurate information. Natera disclaims any obligation to update or revise any forward looking statements. We will provide guidance on today's call, but will not provide any further guidance or updates on our performance during the quarter unless we do so in a public forum. We will quote a number of numeric or growth changes as we discuss our financial performance. And unless otherwise noted, each such reference represents a year on year comparison. And now I would like to turn the call over to Steven. Steven? Steven Leonard Chapman: Great. Thanks, Mike. Let's get to the highlights on the next slide. We had an exceptional quarter. We processed approximately 1.044 million tests in the second quarter once again exceeding 1 million units and setting a new company record with strong volume performance across the business. In oncology, we processed 283 thousand clinical MRD units. Representing year over year growth of approximately 56% compared to Q2 of 2025. Clinical MRD volumes grew 34 thousand units over Q1 which is the largest sequential increase to date. Beyond volume growth, we met several crucial milestones in oncology. Signatera became the first MRD test to get US FDA approval as a companion diagnostic and the first MRD test to get Japanese PMDA approval. In addition, the NCCN Guideline Committee issued a Category 1 recommendation for Signatera guided adjuvant treatment in muscle invasive bladder cancer. We will get into all of these topics later on the call. We generated approximately $753 million in revenue in the quarter, which represents approximately 38% growth over Q2 of last year. Ex revenue true ups, our revenues grew approximately 40% year on year. Gross margins were strong again at approximately 65% driven by another quarter of sequential improvement in ASPs. We were also pleased to generate positive cash inflow again this quarter and trim operating losses while continuing to invest in growth initiatives in R&D. On the guide, we are in a position to completely reset the revenue range. Raising it $100 million at the midpoint. Our new range is $2.85 billion to $2.91 billion in revenues, and we are holding OpEx steady. The guide implies 31% revenue growth this year ex true ups, and we feel very good about hitting this range. We are clearly on a roll, I am excited to review the progress since our call in May. Okay. Let's get into some of the business trends on the next slide. I think the growth of total tests over time is remarkable. When you look at the longer term picture here in the chart. In the quarter, women's health results were particularly strong on a seasonally adjusted basis with high-single-digit growth versus Q2 of last year. Q2 is typically our softest quarter for women's health due to seasonality. But we counteracted that effect this year with particularly strong new account wins, driven by fetal focus adoption, and early returns on the launch of our newly enhanced panorama test. We think this puts us in a strong position to continue executing in women's health for the rest of the year. We also had another strong Oregon Health quarter as volume continued to ramp. And then, of course, we had our best quarter yet for Signatera. The next slide shows our clinical oncology units over time. As a reminder, that is primarily Signatera clinical units but also includes a small number of Latitude cases. Our sequential growth of 34 thousand units was well above our internal expectations performance fueled by a few drivers. Let's first look at the change in units between Q1 and Q2. You will recall that on the Q1 call in May, we described weather related events that suppressed Q1 MRD volumes by several thousand units, a lower Q1 number. We do not think we necessarily recovered those units in Q2 but the change quarter over quarter is exaggerated by that artificial-- Mike will expand on this as it relates to the guide later in the call. In addition, last year we made a significant investment in the size and the breadth of our commercial team. Most of these folks were hired in the first half of 25, so we are pleased now to see them hitting their stride. We also achieved some critical milestones for Signatera. Including FDA approval, and we have seen an uptick in general for Signatera as a result. We are seeing this in new accounts and new patient starts. Which were both very strong again this quarter. This broad based acceleration is happening across tumor types. With colorectal and breast remaining our largest indications. I am also really encouraged by the contribution from the long tail, both because it demonstrates broad adoption of Signatera in clinical practice, and also because it increases the revenue opportunity as we expand coverage to additional tumor types. At the end of the quarter, we got the NCCN guideline in muscle invasive bladder cancer and the PMDA approval in colorectal cancer. Both of which we think bode well in terms of future adoption. So we feel really good about where we are and the ongoing momentum. Moving to revenue on the next slide. Total revenues grew approximately 38% year over year as continued ASP execution accelerated growth on top of the volume performance. Maintaining this level of top line growth given the size of our revenue base is pretty remarkable. We had about $52 million in revenue true-ups this quarter, which is trending down in both absolute terms and as a percent of revenue. Ex true ups, our revenues grew about 40% year on year. We had another good quarter in women's health and organ health ASPs, and we are pleased to see Signatera ASPs increase again. Signatera ASPs were up to roughly $12.75 as we continue to drive more consistent reimbursement from Medicare Advantage and commercial plans in biomarker states. We made a significant investment in revenue cycle management a few years ago to get more consistent reimbursement for covered services. While we have completed most of the major initiatives for women's health and organ health, still think Signatera ASPs have the potential to grow substantially over time both from operational initiatives as well as potential additional MolDX coverage decisions and broader guideline inclusion. We talked in the past that we think a mature Signatera ASP can reach around $2,000 and we still feel good about that as our long term target. The next slide shows our gross margin progress across 2 time periods. The left chart shows reported gross margin versus Q2 of 25. With solid progress mainly driven by ASP improvements over the past year. On the right hand side, we are zooming in on sequential growth ex-true-ups where we had a roughly 50-basis-point improvement over Q1. This was due to several factors, including both ASP wins And returning to a more normalized ratio of reported to a session units compared to Q1. COGS increased slightly in Q2 as we saw an uptick in volumes from some of our recently launched products. Particularly for fetal focus, Latitude, and Signatera genome. When we launch these products, we leave a lot of room to achieve COGS improvements over time as volume scales. And we are already executing on that road map. Latitude and fetal focus also present ASP upside over time, For example, we have a latitude submission in currently to MolDX. We think we can keep improving margins slightly in the near term despite this new product COGS impact as we did this quarter. Longer term, we feel very comfortable about reaching our target of 70%+ gross margin. The margin improvement going forward is driven mostly by major events, like MolDX coverages, or the completion of key internal COGS projects. If you look at our progress, on gross margin from the mid-40s to the mid-60s, it was not strictly linear. We had periods of incremental progress, and also step-function changes. I think we will have a similar trajectory in the future. Okay. With that, let me turn it over to Solomon to discuss some of the exciting clinical and product developments this quarter. Solomon? Solomon Moshkevich: Thanks, Steven. Will talk through some of the catalysts that hit in the second quarter. And I want to start in women's health with our launch of the enhanced Panorama test. Because it addresses something that has been a gap in prenatal screening for a long time. Achieving reliable test performance at low. During pregnancy, fetal fraction is the proportion of placental DNA circulating in the mother's blood, and when that fraction is low, detecting chromosomal abnormalities becomes significantly more difficult. With 1 prior study indicating sensitivity as low as 62% for trisomy 21 using a different technology. Despite this limitation, most other labs who use a counting-based approach will routinely provide results at low fetal fraction without sufficient clinical performance data to back it up. Historically, Natera would return a no call in such cases. About 2% of the time. Our new enhanced panorama test closes that gap. Powered by our novel SNP-informed deep-sequencing technology, Panorama is now the only NIPT with clinical validation data for common trisomies specifically in low fetal fraction patients. Combines the best of both worlds. The power of SNPs for fetal fraction measurement, triploidy detection, and twin zygosity, and more. Along with excellent performance at low fetal fractions. Bringing the overall no call rate down to 0.5%. An improvement of roughly 80% compared to our prior version of the test. The prospective blinded studies supporting this launch included over 3.3 thousand patients with more than 240 low fetal fraction cases. And we detected 100% of the trisomy 21 cases in that cohort. We launched this in May, and the reception among OBGYN has been very enthusiastic. Resulting in many new account wins. This reflects a set of customers who always wanted to order SNP based testing with Natera but had held back due to the no call rates which is now resolved. We think this sets up nicely for volume growth in the back half of the year. This new panorama also rounds out a multiyear run of innovative launches in prenatal health. Last year, we launched Fetal Focus, our next gen single gene NIPT to detect inherited conditions like cystic fibrosis, has continued to exceed our expectations driven by the strength of the EXPAND trial. And the year before in 2024, we launched our fetal RHD test, addressing a significant unmet need given the nationwide rhodium shortage that year. Amazingly, the demand for RHD testing has continued to steadily increase, despite the alleviation of that original shortage. Taken together, these 3 launches reflect the breadth and consistency of our innovation and growth trajectory in women's health. Moving now to organ health. The final Medicare LCD for organ transplant surveillance was published in July. And it represents a meaningful expansion over the initial CMS proposal. Now in year 1 after surgery, Medicare will cover 6 tests for patients with kidney transplant at 12 tests for patients with heart and lung transplants. Then in years 2 and 3, Medicare will cover 4 tests per year across all 3 categories. is significantly higher than their original proposal. This improvement reflects strong advocacy from the clinical community. After the draft was originally published by Medicare in July 2025, Major transplant medical societies submitted letters to MolDx in support of expanded frequency. This included supportive comments from the American Society of Transplant Surgeons, the American Society of Transplantation, and the International Society of Heart and Lung Transplantation. We believe their unified voices helped move the needle on this final policy. We have spent years building the clinical evidence base, that made this outcome possible. And the August 30 effective date on the policy means we will start to see the benefit of Medicare reimbursement in the second half of the year. We expect this to drive improvements in Prospera ASP and in Prospera volumes. As physicians update their surveillance protocols to reflect the new policy. Turning now to oncology where we had a great quarter. Both in terms of commercial adoption and major milestones. In May, the FDA approved Signatera as a companion diagnostic for patients with muscle invasive bladder cancer. This is not just a Natera milestone. it is an industry first for the field of MRV testing. Backed by the global Phase 3 INVIGOR01 trial, it validates the whole-tumor concept of 'treat on MRD'. At the highest level. Then in June, the Japanese PMDA approved Signatera for patients with colorectal cancer. Supported by the Galaxy study. We expect a commercial launch later this year pending final pricing and reimbursement determination, which is on track. That commercial launch will be supported by society guidelines, from JSCO and JSMO, already strongly supportive of MRD assessment in the adjuvant setting. And then in July, Signatera received IVDR certification in the EU. Making it the first MRD test for solid tumors to achieve this designation in Europe. Under this certification, Signatera is indicated across more than 20 tumor types. This streamlines future clinical trial launches across the EU, creating a competitive advantage for us with biopharma. While also ensuring continuity of access for patients after the expected IVDD transition deadline in 2028. Also sets Natera up nicely. To achieve future reimbursement in Europe a key part of our long term global vision. These regulatory wins are the culmination of a long road Natera in developing our regulatory and quality capabilities. it is remarkable that these approvals have come in multiple different disease indications at the same time. These are also major proof points for our biopharma partners. We are building on this momentum with our newest submission to the Japanese PMDA for Signatera as a companion diagnostic in bladder cancer. With this submission, we are advancing in lockstep with Chugai, which markets atezolizumab in Japan. Japan reports approximately 34 thousand new cases of bladder cancer per year, of which around 20 percent to 25 percent will be the INVIGOR011 trial, and notably, that trial had more than 20 participating clinical sites in Japan. So the leading urologic oncologists in Japan already have experience with the protocol. Similar to what we saw with the Galaxy trial in CRC. We think bladder represents a compelling second indication for Signatera in Japan. With strong evidence for serial testing every 6 weeks and we expect regulatory approval later this year or early next year. Finally, we were very pleased to see the NCCN issue its Category 1 recommendation in support of Signatera testing in bladder cancer. Category 1 is NCCN's highest designation, and based on the most compelling randomized evidence. Furthermore, the NCCN specifically called for ctDNA testing using a personalized tumor informed multiplex PCR NGS assay. Which is language that uniquely describes Signatera. This is now the third NCCN guideline to positively recommend tumor informed MRD testing. With prior recommendations coming in Merkel cell carcinoma, and diffuse large B cell lymphoma. All of which reference Natera's data. This guideline update is expected to drive adoption across multiple vectors. As Steve described earlier in the call, it is already resulting in new customer starts and more systematic use among existing customers. Those who like to wait for NCCN recommendations prior to adoption into standard clinical use. it is really creating an inflection point in the field. For which Natera is exceptionally well positioned based on our gold standard clinical evidence our operational excellence, and our industry leading analytical performance especially with the phase variant technology acquired late last year from Foresight Diagnostics. The NCCN guideline is also driving new positive coverage policies among commercial payers. Far beyond what we could achieve with just the biomarker legislation alone. Some commercial plans already had blanket coverage policies in place, for FDA approved companion diagnostics or NCCN recommended tests. But most commercial plans are publishing new coverage policies, to cover Signatera. We expect this to drive meaningful ASP improvement. Finally, as more clinical evidence is published in support of MRD guided precision medicine, we expect further progress with Medicare coverage, and CCN guidelines and commercial payers. With that, I will hand it over to Alexey to discuss our clinical road map. Alexey Aleshin: Thanks, Solomon. I want to spend a couple of minutes on the depth of the clinical evidence engine we have built behind Signatera. And why we think it is such a durable advantage. If you look at slide 13, you can see the shape of that engine. For years, much of the MRD field ourselves included, built its early evidence on retrospective biobank studies. These studies are valuable. They are efficient, and they let you establish prognostic performance across many tumor types quickly. But retrospective data on its own only takes you so far. What actually moves guidelines and then logs broad reimbursement is prospective evidence. Studies designed upfront, run in real time, and in many cases, randomizing patients or tying Signatera directly to a treatment decision. That evidence is a different order of magnitude. It carries far more weight with guideline committees and with payers. It also takes real effort and takes years to generate. We made the decision to invest in that harder path early. We have been signing and initiating prospective studies since 2019. And we have been building this flywheel quietly in the background for more than 7 years. Today, as the chart shows, we have opened more than 70 prospective studies of various forms. Spanning our own sponsored trials pharma partnerships, and academic and cooperative group collaborations. The key point on this slide is what happens next. For most of that period, we were putting studies in. Investing ahead of the return. Now the flywheel is starting to really turn. These studies are beginning to read out. You can see this inflection on the right side of the chart. And we expect the pace of readouts to accelerate meaningfully over the next few years. Each readout is a potential catalyst. For guidelines for reimbursement and ultimately for volume. This is the part of the story that compounds. And it is very hard for anyone starting today to replicate. We are just now entering the harvest phase of an investment we began 7 years ago. I want to discuss in more detail the Natera sponsored portion of our clinical trial portfolio. I am excited to introduce SIGNAL-ER101 the first interventional prospective study that Natera is sponsoring and operationally running ourselves. End to end. The study is now open, and early reception from investigators has been excellent. Let me frame the clinical question because it is a big 1. In early stage HR positive HER 2 negative breast cancer, the most common form of breast cancer, the vast majority of patients today may be overtreated. When a patient is considered high risk, the standard is to add a CDK4/6 inhibitor on top of endocrine therapy. But these are difficult drugs to take. More than 60% of patients experience serious adverse events, and a full course of therapy can carry a US retail cost north of $400 thousand. And the reality is that many of these patients were likely already cured by standard perioperative therapy alone. SIGNAL-ER101 asks a simple but powerful question. Can we use Signatera to identify patients who actually need that escalation? In the study, patients are surveilled with Signatera after surgery, and treatment is escalated to CDK4/6 inhibitor only when we detect molecular residual disease. MRD negative patients are spared a toxic and expensive therapy they may never have needed. This is exactly the kind of high value clinical question MRD is uniquely positioned to answer. And the addressable population is large. Representing a meaningful share of the more than 200 thousand women diagnosed each year in the US with HR positive HER2 negative breast cancer. the majority of them early-stage. I want to be clear about why this matters strategically. SIGNAL-ER101 is the first of a broader interventional portfolio. The SIGNAL program. And we have multiple additional interventional studies launching over the next few months. Covering a significant portion of the largest tumor histologies. These studies are designed to a pharma standard. They can be viewed as equivalent to a Phase 2 or a Phase 3 trials. With the same implications if they succeed. Namely the potential to change practice and help define a new standard of care. And, critically, we have built the infrastructure to run these ourselves. Efficiently and cost effectively. Owning operational execution means we control the quality, the timelines, and the economics. It lets us bring rigorous, potentially practice changing studies to questions that matter most to physicians and their patients on our own terms. Finally, let me update you on the progress in early cancer detection. We continue to be enthusiastic about the data we previously presented. Proceed CRC demonstrated excellent performance including a 22.5% sensitivity and 91.5% specificity for advanced adenomas. Notoriously difficult target and a strong signal for the underlying technology. Additionally, case controlled CRC performance showed a sensitivity of 95% and a specificity of 91%. With stage 1 adjusted sensitivity of 91% in screen detected individuals. Our pivotal FIND study is now approaching full enrollment. We are on track to complete enrollment in the third quarter of this year. With roughly 24 thousand average risk adults enrolled today. Our conversations with the FDA have been productive and are ongoing. We plan to read out the FIND cohort in 2027, and we will provide additional color on the path from there at that time. Stepping back, we remain very excited about this opportunity. We believe we are developing a genuinely differentiated product. 1 that from the very beginning was designed around high sensitivity for advanced adenomas. The precursors we most want to catch early. With that, let me hand it back to Mike to walk through the financials. Mike? Michael Brophy: Great. Thanks, Alexey. The next page is just a summary of the financials compared to last year. I will not belabor all the points that Steven already covered, but there are a few items that I want to highlight. The revenue growth over Q2 of last year is particularly notable because you will recall that Q2 25 itself was a strong quarter where we put up 20 thousand sequential Signatera growth units for the first time. Obviously, the 34 thousand-unit growth number this quarter shows you we moved yet again into new territory. You can see positive gross margin trends here year on year and organically ex true ups sequentially versus Q1 despite our rapid cadence of launching new products this year that are not yet optimized for COGS. As Steve described. I was pleased to see loss per share continue to narrow even as we aggressively double down on the future of the business. After ticking upwards last quarter, I was also pleased to see DSO come down again roughly 4 days to an average of 57 days this quarter as we continue to do a nice job converting our volumes to cash. On the next slide, I would like to give more granular detail on our OpEx. Particularly in R&D. Given the successful commercial team expansion last year, SG and A is relatively stable in 2026. And, obviously, that investment is paying off really well this year. We did have some expenses in the first half on SG and A are not budgeted to recur in the second half. To the extent we exceed the SG and A guide range, this year, I expect the majority of the overage would come from noncash expenses like stock based compensation charges related to the business hitting long term incentive targets and litigation expenses. In R&D, we are remaining very ambitious in our core areas of MRD, organ health, and women's health. You can easily measure our productivity over time just by reviewing the speed and breadth of the new products we have launched and the clinical trials we have read out over the last few years. Given the speed of our revenue and gross margin growth, however, we can afford to make these investments to remain in pole position while getting scale on the enterprise. As you can see on the chart, while R&D in our core areas is clearly growing, the gross profit dollars are accelerating over and above this growth. what is unique about our current R&D spend is the scale of the investment we are making in early cancer detection this year which at the moment does not yield any top line or margin benefits at all. You can see that visually as the large change on the chart which represents the roughly $100 million we are spending this year on development work and to fund the ECD trial. I think that ECD has enormous future potential once launched, and we expect a growth wave from 0 currently to millions of tests per year. So we expect the scaling benefits to arrive for that fourth area of the business relatively soon. Okay. Great. Let's wrap up with the guide for the rest of the year on the next slide. We are going to significantly bump the revenue guide now at $2.85 billion to $2.91 billion which implies roughly 31% annual growth ex true ups. And meaningful growth in the second half over the first half of this year. We feel good about hitting this guide range given the volume and AST trends in the business. Obviously, with Signatera, but also given the better than expected seasonal dip we experienced in women's health. For Signatera volume growth assumptions, keep in mind Q2 sequential volume was exaggerated by several thousand units due to weather negatively impacting us in Q1 as Steven described. So while we had another very strong month in July, We do not expect to set a new volume record again in Q3. We continue to think the right framework for forecasting Signatera growth units is this linear growth model we have described in the past. If you take the average growth in units over the prior 4 quarters, that solves for randomness around weather, and any seasonality or receiving day variances over the past year. Overall, the guide is just driven by volume growth and stable ASPs through the balance of the year. On Signatera, we have made a bunch of progress with biomarker state and Medicare Advantage coverage. So I think really to drive ASPs meaningfully higher, I think we are going to need to expand MolDX indication coverage get some benefit from the bladder NCCN guideline, and eventually get guidelines in additional indications. Our approach this entire year has been that those drivers are going to help us in 2027, and so we will continue to keep them out of the guide. For 2026, the rest of the guide, we are going to hold steady. Gross margins, we bumped 100 basis points last quarter. And what you have seen this quarter is the benefit from ASP improvement and a normalizing test reported to test a session ratio that was balanced out by step up in volumes in the new products. Which, as Steven mentioned, we think is a healthy development and sets us up to generate returns from COGS reduction projects next year. We are holding steady on OpEx. We will keep the same mindset we have to keep our foot on the gas and invest in future growth. If additional high return projects come our way, we are going to make the investments and update you on the quarterly calls. Finally, we are in good shape to generate cash for the year again, which is a priority for us even as we are in growth mode. Okay. With that, let's turn it over to the operator for questions. Operator? Operator: We will now begin the question and answer session. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Puneet Souda with Leerink Partners. Your line is open. Please go ahead. Puneet Souda: Yeah. Hi, guys. Thanks for taking the questions here and a really impressive quarter for Signatera. So first 1, if I could, Steven, you talked about a bit about the drivers But if you if you could double click on that, clearly, you are building very strong evidence that is playing out. Could you elaborate a little bit on how should we think about how are these increases sort of sustainable? Any color you can provide into, you know, 2027. And maybe just if you could double click on the what is powering this growth? Is it the sales rep, the commercial execution? Clearly, data's strong. NCCN data readouts. I mean, you could say all of those things, but maybe just the principal component that you think is driving this. And keeps this sustainable in terms of quarter-over-quarter growth, that remarkable growth that we are seeing here. Steven Leonard Chapman: Yeah. Thanks for the question. Yeah. So I think there is some things that happened this quarter that we think were very beneficial. You know, you look at that FDA approval, you know, certainly, there is some halo effect coming off of that. That was received very positively after the INVIGA readout. But, you know, if you take a step back and you look at the preparations that we have made over the last couple of years, you know, we made big investments in the commercial team. We made big investments in medical affairs. We have been investing in large scale clinical trials and data readouts. So all of those things have put us in a position to now be executing and, you know, outperforming. So we are super excited to see that the planning that we put in now coming to fruition. But, ultimately, we really focus on sort of the 4, 5 core things. Across all of our businesses. 1 is, like, an extreme focus on a technology and being on that cutting edge of technology. The second is backing everything with a very significant amount of peer reviewed evidence, and you can see we have continued to invest in that and continued to extend our lead. And then the third is focused extensively on user experience. We have done a lot of things to you know, implement new ways to reduce TMP issues on tissue to be able to accept more samples. Mobile phlebotomy expansion, so forth. And then the fourth is the team, and we have a excellent team of on the commercial side and the 34 thousand quarter over quarter is just a blowout record I think, compared to anything that we have done you know, previously. You know? But you know, I would not say necessarily we are going to repeat that immediately. But, you know, if you look at, I think the previous record was maybe 25 thousand quarter over quarter or something like that. And I think we can outperform that, you know, as we as we move forward. And, you know, Q3 is off to a very good start. So, you know, I would expect us to be kind of somewhere right in the middle there. Puneet Souda: Got it. And then follow-up for you on, maybe this is just going a bit deeper into Slide 13. Thanks for providing that. I think it is a very good perspective, given the competition questions that we normally receive. Could you, maybe dive a little bit deeper into it? Maybe Alexey if you can talk about it. You know, how should you know, this clearly lays out 2027 to 2028. You know, readouts that are steadily going to be coming out. But are there any specific readouts that you would point to? And maybe if you could just dial a little bit into the ER101 study again, how should we think about that? Is that something a practice changing study? Is that how we should be thinking about that study? Thank you. Steven Leonard Chapman: Yeah. Operator: Go ahead. Alexey Aleshin: Hey, Thanks, Puneet, for the question. So I think slide 13, this is just the prospective portion of our studies. So on top of this, we still continue to invest and read out biobank studies as well. So we do expect a large bolus of readouts in the next few years. The way I would kind of think about especially the prospective readouts, you know, would say there are definitely a few studies that we are kind of monitoring very closely. I think Vega is, for example, a good study that, you know, we have discussed in the past. But a lot of these studies are also, I would say, important in smaller indications. And because they are perspective and many of them are now interventional, I think the readouts do have a significant impact in terms of changing care and possibly changing guidelines and reimbursement. So we cannot, given the number, provide details on every single study, kind of an exact dates for when it will read out. Some of this is variable. Some of this, we do not control. Because some of these are being done with collaborators. But as we get closer to, kind of, entering 2027, we will try to provide a little bit more guidance about the studies that we think are important and a little bit more information about their timing. Going back to ER101 and the broader signal portfolio, I think we will be announcing additional studies as they come online. We are extremely excited about the pipeline. Think the main point is these studies are designed to a high level. I think we said in the prepared remarks, pharma-level. And many of them are actually randomized. Signal ER is not randomized, but it is not randomized because we could not randomize it, but because we are actually looking for performance. So for the CTA negative arm to do so well that really, what we are doing is almost comparing to close to a 100% mean, that is how high of a bar we are setting. And if the study is positive, we do believe that this study will be practice changing, and that is the mentality we have taken with every single signal study that we have designed and plan to initiate in the next few months. Got it. Puneet Souda: Great. Thanks, guys. Steven Leonard Chapman: And, Puneet, let me just add to that a little bit too. So Basically what we did is we sort of went across every histology that we thought could make a major impact on the business, and we said, let's design a practice changing, you know, potentially guideline enabling study and then we are going to fund those trials. And that is sort of what we have done. And that is why you see, you know, a lot of our investment going into these clinical trials. So SIGNAL breast is the first 1 that we are announcing, but there is going to be a suite across all different histologies You know? So stay tuned, and it is a it is a it is a big part of our strategy going forward. Fabulous. Alright. Congrats, guys. Thanks. Operator: Your next question comes from the line of Daniel Brennan with TD Cowen. Your line is open. Please go ahead. Dan Brennan: Great. Thank you. Thanks for the questions. Congrats on a strong quarter. Maybe could I start just on Signatera volumes again, given how strong it was this quarter. So a couple of thousand tests from the weather recapture, that is 32 thousand And I guess, Steven, you talked about that Salesforce expansion productivity, which is just beginning to hit. So I am just kind of wondering how we should be thinking about the go-forward pace because it sounds like, you know, given the size of the Salesforce expansion, that possibly you could see really, you know, another couple of quarters here really significant volume quarter to quarter growth based upon-- I mean, new salespeople are probably just getting going. That productivity enhancement. Steven Leonard Chapman: Yeah. I think that is right. I mean, we have got you know, we got these sales folks that have just come online. We made a big investment in medical affairs. We are seeing a lot of momentum you know, coming off the trials that have read out coming off the halo effect of the FDA approval. You know, there is some things like, you know, even in bladder, for example, where you know, the Invigor protocol is sort of moving to kind of an every 6 week protocol, as outlined in the in the approval. Know? And I think things like that can kinda give us an upside, opportunity as well where people may be you know, starting to draw more frequently where they have traditionally drawn, say, quarterly or every 6 months. So there is a lot of momentum right now. And, you know, I do not think we will do 34 thousand. You know, obviously, we I think here we have really outperformed even our own internal expectations, but you know, like I said, our previous record all time record had been, I think, 25 thousand. And, you know, if we can outperform that, I think that would be you know, that would be a good achievement. And, you know, we think we are in a position to be able to do that. And kind of continue to notch up as the year goes on. But very strong momentum. I think we are crossing the sort of tipping point in the field where doctors are really starting to believe in MRD as a core part of their practice. And I think we are we are the major beneficiary of that. Given the breadth of our presence in the field and the amount of data that we put out you know, the size of our sales team. So everything's sort of starting to come together. Terrific. Dan Brennan: Then maybe just on the price, you know, the $25 sequential increase, you know, ahead of expectations. I think you have had $25 and $22 the last 2 quarters sequentially. But what I am hearing, you know, Mike talked about more of the benefit in 2027, but I heard Solomon say several commercial payers are kind of putting Signatera in their plans. You have got 3 NCCN guideline inclusions. And, Steven, you talked about the benefits you had on rev cycle, as well. That you experienced in transplant women's health, and you are seeing really an opportunity now more so in Signatera. So I am just wondering if you can unpack that all? Is there a chance this price really begins to take off here the next few quarters more so? Or is, you know, $5 sequential still the right way to think about it for a little while? Thank you. Steven Leonard Chapman: Yeah. Mike, do you want to take that? Michael Brophy: Yeah. Dan, thanks for the question. I mean, I think that so as we mentioned on the prepared remarks, the guide that we put out presumes just a stable ASP of $12.75 for Signatera through the balance of the year. I think, you know, if you are looking for, like what would be an upside case beyond the guide, which we normally set as something that is, you know, difficult but achievable. I think it would be something in that ZIP code of another $25 through the balance of the year. And I can talk a little bit about why. I mean, the things that drive immediate term ASP upside are things that we are basically getting paid on already right now. Or if you think about the timing of the accrual for Q3, we have gotta be receiving reimbursement for that unit effectively right now for us to count it in the Q3 results. So that tends to be things that are kind of more tactical in nature. These are things like improving Medicare advantages, compliance with reimbursing for covered services. Expanding coverage within the biomarker states, things like that. The things that we are mentioning on the call are the longer term drivers and will have a bigger impact on ASP. I feel better about the long term vision for getting the $2,000. I feel better about that now than I really ever have since we launched Signatera. 6, 7, 8 years ago. But I think just if you are looking for kind of tactical moves over the next couple quarters, I mean, I think an upside case would be something like $25. Just because these recent wins that we have had take a little while to get into the revenue recognition. Recognition. Got it. Thanks, Mike. Operator: Your next question comes from the line of David Westenberg with Piper Sandler. Your line is open. Please go ahead. David Westenberg: Alright. Thank you for taking the question, and, yeah, congrats on the good MRD numbers. So 1 of the things I think that was kind of fascinating, we see really good growth in a lot of the different MRD competitors or new entrants. Obviously, it is not having any impact on you with the 50% growth rate. So can you tell us, you know, is there still, like, a market education from some of these competitors? And how do you think as these competitors come in? Is there lanes for each, or is there, you know, some crossover? Or do you think maybe they are kind of just getting their own customers? I just want to think about how it plays out as you know, they are on the market and they do seem to be getting traction at this point. Steven Leonard Chapman: Yeah. that is a good question. I mean, you know, there is always going to be competition, and, you know, we have seen that I think if you if you look at you know, probably, you know, 4 years now, maybe 3+ years, there is been major oncology competitors that have had MRD tests that are approved by MolDx on the market. So it is not it is not necessarily a sort of a new dynamic. And you can see we have done really well in the face of competition. I think we are going to continue to do really well because we are doing all the right things. So we are investing in the technology, you know, when we see an opportunity to round out the portfolio or enhance the portfolio. We are we are we are taking those opportunities. We are doing all the right clinical studies. So, you know, I think we are in a really good spot going forward. You know, I would just say, there is always going to be competition and other companies are gonna do well. But because it is such a large market, it really does not have a significant impact on us. I mean, we are still very early and penetration in the overall market. You know, I would I would sort of say mid-single digits You know? So we think there is a lot of upside here, and we are we are really in the in the best position to capture that upside. Now with that said, we are you know, very keenly watching what everybody else is doing. And, you know, if we think there is an opportunity for us to you know, push harder in 1 particular area, or sort of close gaps in a particular area, we are gonna be really focused on that. David Westenberg: Great. Thank you very good. And you mentioned in your prepared remarks some of the new patient starts again being extremely high in the gross margin commentary. Now I know you do not give out mix of brand new patient starts versus continued seeking the patient-paid continued patients, but can you maybe give some of the mix on terms of tissue types? Are you gaining new or a lot more new patient starts in some of the covered versus uncovered indications, some of the more newer indications. Just trying to get a flavor of what might be coming down the pipeline. In terms of what you are seeing in, say, tissue types in, say, 2028. Thank you again for the questions. Steven Leonard Chapman: Yeah. it is a great question. So, you know, as you know, we have we have many tissue types now that or many histologies that are covered by MolDx, and we have a handful you know, where we where we still do not have coverage, but we have submissions. And I think you know, we have sort of reported before that we had 7 submissions in, you know, which are at various stages. And we are excited about the opportunity of getting coverage there. As far as what we are seeing in the field, and we are continuing to grow colorectal and breast which I think are the, you know, the 2 sort of largest as we said in the remarks. But there is a lot of opportunity beyond that. And as we turn out new publications, we generate new data, We start to see, you know, uptick in these other histologies as well. And we think we are in a really good position to continue to drive growth across the business, both in CRC and breast, but also across this longer tail of other histologies. Thanks. Operator: Your next question comes from the line of Daniel Markowitz with Evercore. Your line is open. Please go ahead. Daniel Markowitz: Hey, guys. Congrats on the good results, and thanks for taking my questions. First, I wanted to ask on Signatera ASP it is nice to see the continued progress there. Steven and Mike, you both had some helpful comments on the step function improvements that we could see from specific catalyst. So what I wanted to specifically ask about is the 7 indications submitted to MolDX. Should we think about that in 2027? Is it coming online in the first half, and maybe it will take a few quarters? Get fully rolled out and realized? And then once it is fully ramped, in terms of the P and L impact, could it be, like, $200+ contribution to ASPs on that path to $2,000? And are there any incremental costs that come with it? Like, the way I am thinking about it, could be a really nice step up to the ASPs and also a nice inflection towards positive EBITDA. Is that the right way to think about it? Any color would be super helpful. Steven Leonard Chapman: Yeah. it is a great question. I would say you know, with regards to the timing, you know, it is it is always hard to say. You know, but, generally, we have been able to sort of work through these submissions very successfully over time. Mean, usually, if you have a good peer reviewed published paper, and you submit to MolDx, there is gonna be some back and forth. there is gonna be a couple of rounds of revision, and then, you know, ultimately, you will you will end up getting coverage. And so that is why we feel like we are in a good position on these. I do not think that timeline of you know, at some point over the kind of second half of 26 and then kind of into the first half of 27, I think that is a reasonable time line. You know, which is basically you know, rolling coverages over the next sort of 12 months or, you know, something in that range. And frankly, I think it is good that they are very sort of strict in the way that they are, and I think that is benefited us because we generated so much data and so much quality data. And it really, in some ways, is a competitive moat. For others that are now entering the market where you know, it really takes a long time to generate this level of evidence that you can go to MolDX with. So we think we think it is an opportunity. On the path to 2000, you know, certainly, this would make a major impact on the path to 2000. But, Mike, do you want to comment specifically on sort of what number you think this might give us? Michael Brophy: Yeah. I mean, I think if you just kind of sum up the indications where we have got submissions in-flight or we are planning on submitting to MolDx. I mean, I would estimate that is worth something like $150 to the ASP, perhaps $200. So, Daniel, I think your estimate's roughly in the right range. So, obviously, that is that is a transformational difference. When you started December and you add that Steven mentioned the timing to, you know, to starting to get these coverages, and I think that is right. I mean. I think over the next 12 months, I think you start to get these coverages, and I would just reiterate what Steven was just mentioning on the process. it is, you know, it is hard to forecast with precision. But, I mean, I think rolling approvals over the next 12 to 18 months is probably the right way to think about Great. Daniel Markowitz: Thank you. And then the second thing I wanted to ask about was the progress in biomarker states. It sounds like that got a little bit better this quarter. Are we seeing an inflection of this starting to flow through? And then will you be able to be trued up on, like, retrospectively, since biomarker bills went into effect? So in other words, should we expect some outsized true ups in the quarters and years to come based on the biomarker states? Thanks again for taking the questions, guys. Michael Brophy: Yeah. I am not really expecting Yeah. Thanks. Thanks for that question. I am not I am not really expecting you know, a lump of, you know, of true ups specifically from biomarker. I mean, the way that you see this happening is you get a biomarker state law, and then you interact with payers in that state. And it is kind of a linear kind of grinding process that takes quite a bit of time as we have described in the past. So that kind of linear process of getting payers on, you know, 1 by 1 sometimes it feels like it is unit by unit. That contributes to the drip of continued true ups rather than a bolus. I mean, more generally, we said this in the prepared remarks. I mean, the ambition is to is to you know, have the trips kind of gradually come down, and you have seen that happen both in terms of absolute dollars, but particularly as a percent of revenue. So that is the plan. Operator: Your next question comes from the line of Tycho Peterson with Jefferies. Your line is open. Please go ahead. Noah Kava: Hey, team. This is Noah on for Tycho. Thanks for taking the questions and congrats on the quarter. Wanted to ask on Women's Health. I think the high-single-digit growth a little bit better than we were expecting. curious, what are you seeing from an underlying market growth standpoint? And then when your competitors flagged some share loss there, so curious if you think you have been a beneficiary of share gain there. Steven Leonard Chapman: Yeah. it is a good question. Yeah. We definitely think we are we are we are benefiting from share gains here. You know, we had, in the last couple of years, we have had we have had some big investments sort of behind the scenes in technology development, you know, that led us to beginning of this year and launching the Fetal Focus product and then, you know, more recently, launching an enhanced version of Panorama that really closed 1 of the major gaps that you know, people had with the product. So I think right now, we are in probably the best position we have been in from a competitive standpoint. And we really started to see the impact of that, you know, over Q2. You know, typically, it is you know, Q2 can be a softer quarter. Just because of seasonality. And we were really able to overcome that this quarter, I think, with just the interest in the product portfolio and the interest in the enhancements and the sales team is feeling very positive right now in women's health. Noah Kava: Thanks. that is helpful color. And then for my follow-up, I wanted to ask on the SG and A guidance. It looks like you are expecting a step down in the second half versus the dollars last year around $80 million Just curious where these efficiencies coming from. I think you mentioned an AI project last year that could drive $200 million in cost savings over time. So any incremental progress there? And how are you thinking about the longer term path to profitability? Steven Leonard Chapman: Yeah. Mike, do you want to take that? Michael Brophy: Yeah. Sure. Thanks. Yeah. Thanks for the question. Yeah. I think, you know, I mentioned in the prepared remarks, there were a couple of onetime expenses in Q1 that I would not forecast in the guide to have them repeat in the second half, around noncash accruals of stock-based comp and some litigation expenses. So that is that makes up the majority, I think, of that delta. I mean, more generally, I think we are getting a lot more efficient. and we are deploying AI really across the business at a at a pretty frenetic pace. And we are just seeing efficiencies all the time. We have given a bunch of examples in the past. Where we can deploy that in a large operation like this. So you got a large lab. You got a lot of employees, a lot of patients, a lot of volumes. there is lots of opportunities to automate workflows. And to move the employees up the value chain as it were. So we continue to see just a lot of progress there. Operator: Your next question comes from the line of Kallum Titchmarsh with Morgan Stanley. Your line is open. Please go ahead. Kallum Titchmarsh: Maybe first 1 on the Japan launch. Could you just help us understand a little more how that ramp could look in 2027? How quickly do you think reps could get out there into accounts? And then maybe just talk through your confidence in securing coverage for perhaps more frequent testing based on some of the studies that you have run in the region? Thank you. Steven Leonard Chapman: Yeah. that is a good question. So, Solomon, I will have you kind of comment on the sales penetration but I will I will comment first on the coverage. So I think as we said on the last call, you know, we are sort of initially looking for that sort of adjuvant you know, coverage. And then I think following on after that, you know, at some point, the surveillance coverage. Now we think we will be in a position to be able to offer surveillance you know, but that we think the coverage will probably come sort of shortly after that. You know, there is a lot of opportunity there just given the number CRC patients that are diagnosed. And then now also, I think, bladder as well is gonna be a big opportunity. So Solomon, do you wanna comment on the penetration? Solomon Moshkevich: Sure. Hi. Thanks for the question. Yeah. With the launch in Japan for CRC expected at the end of the year, we think we are poised for penetration or market adoption, I would prefer to say, that meets or exceeds the rates we saw in The United States. When we introduced Signatera for colorectal cancer, and that is because of the we are starting further along, you know, with more significant published data with medical societies having published guidelines and strengthening those guidelines, over time. Including expected updates this year. From multiple different guideline bodies in Japan And then the reimbursement is really gonna be the unlock. Because it is not the way the tests are ordered. it is really a for the reimbursement to be in place in order for clinics to order the test. I will just add 1 other thing. You know, we have a really strong partner in Japan. But we are supplementing that distribution partner with direct sales effort, sales and effort. and marketing in Japan. So we feel pretty confident we are gonna be able to get awareness out very quickly. We think given the Japanese thought leadership with the Galaxy study, that there is already a strong understanding appreciation for the technology and it is really gonna be about user experience, making it easy to order, easy to get results, and we look forward to launching. that is great color. Kallum Titchmarsh: And, Mike, maybe just 1 for you. Outside of the ASP uptick, highlighted some internal work that is being done to drive down COGS. Could you maybe just detail in a little more what those actions are and when you think those can come through the P and L? Thanks, guys. Michael Brophy: Yeah. Thanks for the question. This is really kind of our standard playbook. We launched new products very frequently. You have seen that pace of the new launches been quite intense over the last year. As those products launch, obviously, they are not yet optimized for COGS as they kind of they get to volume scale. So as they scale, you get some natural efficiencies with workflows in the lab. And then also once you see you confirm that you do have the demand for the new product and the investment is worth it, then it is relatively straightforward to then deploy resources then to the workflow itself for COGS. Those are some of my favorite R&D projects because you can see what the demand is. You can see what the savings per unit is, and so it is quite easy to calculate returns on invested capital for those for those projects. And we have generated very high returns on these cost reduction projects. Over the last decade. So just given the pace of the new product launches we have had over the past year, we are well set up to have another wave of cost reduction projects that hit over the next 12 to 18 months. Operator: Your next question comes from the line of Subhalaxmi Nambi with Guggenheim. Your line is open. Please go ahead. Subhalaxmi Nambi: Hey, guys. Thank you for taking my questions. There are 2 topics I wanna address, and 1 of it was partially addressed. But I will touch on it anyway. First on R&D, it looks like you increased the budget for early cancer detection program. Are you accelerating timelines here What is driving the investment? And second, on margins, in a huge revenue quarter, gross margins did not increase by that much sequentially. There are some good reasons that could happen, things like a jump in new Signatera starts, or more latitude growth. Is that right? 1, and then do these mixed dynamics start to flip later this year? Thank you so much. Steven Leonard Chapman: Yeah. Thanks for the question. So I will take the first 1 on ECD. So, you know, we are actually really tracking along at where we thought we would on the f enabling study, the FIND study. We think we are gonna be done recruiting this quarter, which is sort of what we outlined in the prepared remarks. So, you know, that is really on schedule. We are excited about that. You know, we have kind of backed that with just readout of proceed that we had early, you know, I think, at the JPM conference previously, which we are excited about. So now we are doing the development work. You know, we are getting the assay ready to be in a position to run the FIND study. When all after all the samples are collected and then be in a position to submit to the FDA. So these are all expenses that you know, over time will go away. You know? But I think for now, you know, this is sort of what needs to be done to be in a position to submit to the FDA. We think this is a huge market opportunity, and we are in a position to be you know, potentially 1 of the key players in this space. So, Mike, do you wanna comment on the margin? Michael Brophy: Yeah. it is very similar to the, you know, to the topic we were covering with Kallum, which is yeah. We did have a huge number of new Signatera starts commensurate with the blowout in volumes that we had for Signatera. And then we had some very promising growth in a bunch of these new products. The COGS are not yet optimized. But as I just mentioned, we have got ample opportunity now, now that we see the volume coming in. To go and tighten down those COGS and optimize those workflows, which we are excited to do, again, over the next kind of 12 to 18 months. Steven Leonard Chapman: Yeah. And I will just reiterate this point on new patients. I mean, new patients coming in for Signatera was way up. So we are seeing this you know, very significant excitement And the good thing about that is that sort of usually kind of foreshadows, you know, significant growth in recurrence monitoring and surveillance in the future. Perfect. Subhalaxmi Nambi: Thank you so much, guys. Operator: We have reached the end of the Q&A session. This concludes today's call. Thank you for attending. You may now disconnect. 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While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Natera. The Motley Fool has a disclosure policy. Natera (NTRA) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Stanley Druckenmiller (Trades, Portfolio) recently submitted the 13F filing for the second quarter of 2026, providing insights into his investment moves during this period. Born in 1953 in Pittsburgh, Pennsylvania, Druckenmiller is the President, CEO and Chairman of Duquesne Capital, which he founded in 1981 and converted into a family office in 2010. He managed money for George Soros (Trades, Portfolio) from 1988 to 2000 as the lead portfolio manager for Quantum Fund, famously shorting the British Pound in 1992. Highly influenced by Soros' trading style, Druckenmiller employs a top-down approach that combines long and short positions across stocks, bonds, currencies and futures, making his quarterly filings a must-read for value investors seeking to understand macro-driven capital allocation. Warning! GuruFocus has detected 6 Warning Signs with NTRA. Is NTRA fairly valued? Test your thesis with our free DCF calculator. Stanley Druckenmiller (Trades, Portfolio) added total of 44 stocks, among them: The most significant addition was Alphabet Inc (NASDAQ:GOOGL), with 336,300 shares, accounting for 2.31% of the portfolio and a total value of $120.18 million. The second largest addition to the portfolio was Fox Corp (NASDAQ:FOXA), consisting of 2,204,600 shares, representing approximately 2.21% of the portfolio, with a total value of $114.99 million. The third largest addition was CDW Corp (NASDAQ:CDW), with 743,950 shares, accounting for 2.01% of the portfolio and a total value of $104.63 million. Stanley Druckenmiller (Trades, Portfolio) also increased stakes in total of 14 stocks, among them: The most notable increase was Amazon.com Inc (NASDAQ:AMZN), with an additional 495,800 shares, bringing the total to 541,600 shares. This adjustment represents a significant 1,082.53% increase in share count, a 2.27% impact on the current portfolio, and a total value of $129.09 million. The second largest increase was United Airlines Holdings Inc (NASDAQ:UAL), with an additional 532,300 shares, bringing the total to 794,795. This adjustment represents a significant 202.78% increase in share count, with a total value of $108.08 million. Stanley Druckenmiller (Trades, Portfolio) completely exited 23 of the holdings in the second quarter of 2026, as detailed below: Broadcom Inc (NASDAQ:AVGO): Stanley Druckenmiller (Trades, Portfolio) sold all 195,955 shares, resulting in a -1.8% impact on the portfolio. Option Care Health Inc (NASDAQ:OPCH): Stanley Druckenmiller (Trades, Portfolio) liquidated all 1,868,550 shares, causing a -1.49% impact on the portfolio. Stanley Druckenmiller (Trades, Portfolio) also reduced positions in 10 stocks. The most significant changes include: Reduced Alcoa Corp (NYSE:AA) by 1,307,750 shares, resulting in a -87.57% decrease in shares and a -2.57% impact on the portfolio. The stock traded at an average price of $66.96 during the quarter and has returned -24.03% over the past 3 months and -5.46% year-to-date. Reduced Roku Inc (NASDAQ:ROKU) by 566,135 shares, resulting in a -75.47% reduction in shares and a -1.58% impact on the portfolio. The stock traded at an average price of $121.55 during the quarter and has returned 25.29% over the past 3 months and 45.34% year-to-date. At the second quarter of 2026, Stanley Druckenmiller (Trades, Portfolio)'s portfolio included 95 stocks. The top holdings included 16.6% in Natera Inc (NASDAQ:NTRA), 5.4% in Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM), 4.46% in STMicroelectronics NV (NYSE:STM), 2.92% in Insmed Inc (NASDAQ:INSM), and 2.74% in YPF SA (NYSE:YPF). The holdings are mainly concentrated in 10 of all the 11 industries: Healthcare, Technology, Consumer Cyclical, Communication Services, Industrials, Basic Materials, Energy, Consumer Defensive, Financial Services, and Real Estate. This quarter's filing underscores Druckenmiller's dynamic, macro-driven strategy. The aggressive reduction in Alcoa, a cyclical basic materials play, suggests a bearish outlook on commodity prices or a reallocation toward growth-oriented tech and consumer names like Alphabet and Amazon. Meanwhile, the complete exit from Broadcom and Option Care Health indicates a sharp pivot away from semiconductor and healthcare services exposure. For value investors, these moves highlight the importance of monitoring not just what gurus buy, but also what they sell, as Druckenmiller's top-down analysis often signals broader market trends. As always, his concentrated bets in healthcare and technology reveal a continued conviction in innovation-driven sectors, even as he trims positions that may face headwinds in the current economic cycle.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Processed a record 1.044 million tests, driven by a sequential increase of 34,000 clinical MRD units, the largest in company history. Oncology growth was fueled by the long-term impact of commercial team investments made in 2025 and a 'halo effect' from recent FDA and PMDA approvals. Women's Health outperformed seasonal expectations due to strong adoption of the enhanced Panorama test, which significantly reduced 'no call' rates at low fetal fractions. Signatera ASPs increased to roughly $12.75., supported by improved Medicare Advantage compliance and biomarker legislation in several states. Gross margins reached 65% as ASP improvements and operational efficiencies offset the temporary COGS impact of scaling newly launched products. Management attributes the broad-based acceleration to a 'tipping point' where MRD testing is becoming a standard clinical practice across multiple tumor types. Strategic investments in revenue cycle management have matured for Women's Health and Organ Health, with focus now shifting to optimizing Signatera reimbursement. Raised full-year 2026 revenue guidance by $100 million to a range of $2.85 billion to $2.91 billion, implying 31% annual growth excluding true-ups. Anticipates Signatera ASPs could reach a long-term target of $2,000, driven by future MolDX coverage expansions and broader NCCN guideline inclusions. Expects to complete enrollment for the pivotal FIND study in early cancer detection by Q3 2026, with a cohort readout planned for 2027. The Japan commercial launch for Signatera in colorectal cancer is on track for late 2026, pending final pricing and reimbursement determinations. Management assumes stable ASPs for the remainder of 2026, keeping potential gains from new bladder cancer guidelines as upside for 2027. Signatera became the first MRD test to receive US FDA approval as a companion diagnostic and Japanese PMDA approval for colorectal cancer. NCCN issued a Category 1 recommendation for Signatera in muscle-invasive bladder cancer, which is expected to drive both clinical adoption and commercial payer coverage. Achieved IVDR certification in the EU for Signatera across more than 20 tumor types, streamlining future clinical trials and ensuring long-term market access. Launched the SIGNAL-ER101 study, the first in a suite of Natera-sponsored interventional trials designed to establish MRD-guided treatment as a new standard of care. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that while the 34,000-unit sequential jump was partly exaggerated by Q1 weather issues, the underlying momentum remains exceptionally strong. Future growth will be supported by the 'harvest phase' of prospective clinical trials reading out and the continued productivity of the expanded sales force. Seven submissions are currently at various stages with MolDX, which management estimates could represent a $150 to $200 increase to Signatera ASP. The timeline for these coverage decisions is expected to roll out over the next 12 to 18 months, primarily impacting 2027 results. Management believes their deep clinical evidence base and 'SNP-informed' technology create a significant moat against new market entrants. In Women's Health, Natera is gaining market share from competitors by addressing technical gaps like performance at low fetal fractions. Current R&D includes approximately $100 million in annual spending for ECD that currently yields no revenue but represents a massive future growth wave. Operating expenses are expected to stabilize as the company leverages AI and automation to move employees up the value chain.

Interested in Natera, Inc.? Here are five stocks we like better. Natera reported strong Q2 growth, with revenue up approximately 38% year over year to $753 million and testing volume surpassing 1 million units for the second consecutive quarter. MRD testing volume rose 56% year over year to 283,000 tests. The company raised its 2026 revenue guidance to $2.85 billion-$2.91 billion, while gross margin reached about 65% and Signatera’s average selling price increased to approximately $1,275. Signatera gained major regulatory and clinical momentum, including FDA companion-diagnostic approval in bladder cancer, Japanese approval for colorectal cancer, European IVDR certification and a Category 1 NCCN recommendation for bladder cancer treatment guidance. 3 Under-the-Radar Healthcare Companies Natera (NASDAQ:NTRA) reported second-quarter 2026 revenue of approximately $753 million, up about 38% from a year earlier, as record testing volumes and higher average selling prices supported growth across its oncology, women’s health and organ health businesses. The company processed approximately 1.044 million tests during the quarter, its second consecutive quarter above 1 million units. Clinical molecular residual disease, or MRD, testing volume reached 283,000 units, up about 56% from the prior-year period and 34,000 units higher than in the first quarter. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Myriad Genetics Sees Stock Surge with Hereditary Cancer Tests Chief Executive Officer Steve Chapman called the period “an exceptional quarter,” citing commercial momentum for the Signatera oncology test, favorable regulatory developments and continued reimbursement progress. Natera raised its full-year revenue outlook to a range of $2.85 billion to $2.91 billion, increasing the midpoint by $100 million. The updated outlook implies approximately 31% annual revenue growth excluding revenue true-ups, according to management. The company held its operating-expense outlook steady. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Second-quarter revenue included about $52 million of revenue true-ups, which management said were declining both in dollar terms and as a share of revenue. Excluding those true-ups, revenue increased about 40% year over year. Gross margin was approximately 65%, aided by improved average selling prices. Signatera’s average selling price rose to roughly $1,275, as the company cited more consistent reimbursement from Medicare Advantage and commercial insurers in states with biomarker legislation. → Ulta's Growth Is Real, But So Are the Risks Management said it continues to target a mature Signatera average selling price of about $2,000 over the long term. Chief Financial Officer Mike Brophy said the company’s full-year guidance assumes stable Signatera pricing through the remainder of 2026, though an upside case could include another roughly $25 of sequential price improvement. Natera also reported positive cash inflow during the quarter and a narrower loss per share. Days sales outstanding declined by roughly four days sequentially to an average of 57 days, Brophy said. The company highlighted several developments for Signatera, its tumor-informed MRD test. In May, the FDA approved Signatera as a companion diagnostic for patients with muscle-invasive bladder cancer, which Natera described as the first FDA approval of an MRD test as a companion diagnostic. In June, Japan’s Pharmaceuticals and Medical Devices Agency approved Signatera for colorectal cancer. Natera expects a commercial launch in Japan later in 2026, pending final pricing and reimbursement decisions. The company also submitted Signatera for Japanese approval as a companion diagnostic in bladder cancer and expects a decision later this year or in early 2027. In July, Signatera received IVDR certification in Europe across more than 20 solid-tumor types. Natera said the designation should streamline future clinical-trial launches in the European Union and support its longer-term reimbursement efforts in the region. The National Comprehensive Cancer Network also issued a Category 1 recommendation for Signatera-guided adjuvant treatment in muscle-invasive bladder cancer. Solomon Moshkevich, president of clinical diagnostics, said the recommendation has contributed to new customer starts, broader use among existing customers and new commercial payer coverage policies. Management said colorectal and breast cancer remain Signatera’s largest indications, while adoption has also expanded across a longer tail of tumor types. Chapman said the company sees the MRD market as still in an early stage of penetration. Women’s health delivered high-single-digit growth on a seasonally adjusted basis, despite the second quarter typically being Natera’s softest period for the business. The company attributed the performance to new account wins associated with Fetal Focus and the May launch of an enhanced Panorama prenatal test. Moshkevich said the updated Panorama test uses SNP-informed deep sequencing technology and reduced the overall no-call rate to 0.5% from about 2% under the prior version. He said prospective blinded studies supporting the launch included more than 3,300 patients, including more than 240 low-fetal-fraction cases. In organ health, Natera said a final Medicare local coverage determination for transplant surveillance, published in July and effective Aug. 30, expanded the frequency of covered testing for kidney, heart and lung transplant recipients. Management expects the policy to benefit Prospera testing volumes and average selling prices during the second half of the year. Natera said it has opened more than 70 prospective studies involving Signatera through company-sponsored trials, biopharmaceutical partnerships and academic collaborations. Chief Medical Officer Alexey Aleshin said the company expects study readouts to accelerate over the next several years and views them as potential catalysts for clinical guidelines, reimbursement and testing volume. The company also announced that its SIGNAL-ER 101 breast-cancer study is open. The prospective interventional study is evaluating whether Signatera can identify patients with early-stage HR-positive, HER2-negative breast cancer who may benefit from escalation to a CDK4/6 inhibitor after surgery and treatment. For early cancer detection, Natera said its pivotal FIND study is approaching full enrollment. The company expects to complete enrollment in the third quarter with approximately 24,000 average-risk adults enrolled and plans to report FIND results in 2027. Brophy said Natera expects to spend roughly $100 million this year on early cancer detection development work and the FIND trial. He added that the company is pursuing cost-reduction projects for recently introduced products, including Fetal Focus, Latitude and Signatera Genome, as testing volumes scale over the next 12 to 18 months. Natera is a global diagnostics company that develops and commercializes cell-free DNA and other genetic testing technologies for clinical applications. The company focuses on three principal areas: reproductive health (including non-invasive prenatal testing and carrier screening), oncology (tumor-informed assays for minimal residual disease and recurrence monitoring), and organ transplantation (cell-free DNA tests to detect allograft injury). Natera combines laboratory testing, proprietary bioinformatics, and clinical reporting to deliver personalized genetic information to clinicians and patients. Key product offerings include Panorama, a non-invasive prenatal test that screens for fetal chromosomal abnormalities and select single-gene conditions; Horizon carrier screening for inherited conditions; Signatera, a personalized, tumor-informed assay used for detecting minimal residual disease and monitoring treatment response in cancer patients; and Prospera, a donor-derived cell-free DNA test used to assess the risk of organ rejection. 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 "Natera Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Total Revenue: Approximately $753 million in Q2 2026, representing roughly 38% year-over-year growth. Revenue Growth (Ex True-ups): Approximately 40% year-over-year growth. Revenue Guidance: Raised to $2.85 billion to $2.91 billion for fiscal 2026, implying roughly 31% annual growth ex true-ups. Gross Margin: Approximately 65% for Q2 2026, with a roughly 50 basis point sequential improvement ex true-ups. Total Tests Processed: Approximately 1,044,000 tests in Q2 2026, a new company record. Oncology (Signatera) Volume: 283,000 clinical MRD units processed, representing approximately 56% year-over-year growth and a sequential increase of 34,000 units. Signatera ASP: Approximately $1,275, up from the prior quarter. Days Sales Outstanding (DSO): Decreased by roughly four days to an average of 57 days in Q2 2026. R&D Investment: Approximately $100 million planned for early cancer detection development and the FIND ECD trial in 2026. Warning! GuruFocus has detected 5 Warning Signs with NTRA. Is NTRA fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record-breaking test volumes with over 1,044,000 tests processed in Q2 2026, including a 56% year-over-year increase in clinical MRD units. Signatera achieved significant regulatory milestones, including FDA approval as a companion diagnostic and Japanese PMDA approval, enhancing its market position. Strong revenue growth of approximately 38% year-over-year, with revenue guidance raised by $100 million at the midpoint. Gross margins improved to approximately 65%, driven by ASP gains and operational efficiencies, with a long-term target of 70%+. Positive cash flow generation and reduced operating losses, supported by improved DSOs and effective revenue cycle management. Launch of enhanced Panorama test addresses low fetal fraction gap, leading to new account wins and strong women's health growth. Expansion of Medicare coverage for organ transplant surveillance, expected to drive Prospera ASP and volume improvements. Robust clinical evidence pipeline with over 70 prospective studies, positioning Natera for future guideline and reimbursement catalysts. NCCN Category 1 recommendation for Signatera in bladder cancer, driving adoption and commercial payer coverage. Early cancer detection program progressing on track with FIND study nearing full enrollment, presenting a significant future growth opportunity. Q2 Signatera volume growth was exaggerated by weather-related suppression in Q1, making sequential comparisons less reliable. Signatera ASPs remain below long-term targets, with meaningful improvement expected only in 2027 from MolDX coverage and guideline updates. COGS increased due to new product launches (Fetal Focus, LATITUDE, Signatera Genome) that are not yet optimized for cost efficiency. R&D spending is elevated, particularly for early cancer detection, which currently provides no top-line or margin benefits. SG&A expenses may exceed guidance due to noncash stock-based compensation and litigation costs. Revenue true-ups, while declining, still represent a significant portion of revenue and add volatility to financial results. Competition in the MRD market is increasing, though Natera believes its scale and evidence provide a competitive moat. The company does not expect to repeat the record sequential volume growth in Q3, indicating potential for slower growth. Japan launch is pending pricing and reimbursement determination, with commercial ramp expected only later this year. Gross margin improvement was modest sequentially, with new product mix offsetting ASP gains. Q: Can you elaborate on the key drivers behind the exceptional sequential growth in Signatera volumes, and how sustainable is this growth into 2027?A: Steve Chapman (CEO) attributed the blowout quarter to a combination of factors: the halo effect from the FDA approval, the productivity of the expanded commercial team hitting its stride, and the culmination of years of investment in medical affairs and clinical trials. He emphasized that while the 34,000-unit sequential increase was a record, it was exaggerated by weather-related suppression in Q1. He expects future growth to be strong but more normalized, potentially outperforming the previous record of 25,000 sequential units, driven by a "tipping point" in physician adoption of MRD testing. Q: Regarding Signatera ASPs, what is the potential impact of the pending MolDX coverage submissions, and what is the expected timeline for these to flow through?A: Michael Brophy (CFO) estimated that the pending MolDX submissions for additional indications could add roughly $150 to $200 to the Signatera ASP, which is currently around $1,275. He expects these coverages to roll in over the next 12 to 18 months, acting as a major step-function improvement on the path to the long-term target of a $2,000 ASP. Steve Chapman added that the strict MolDX process acts as a competitive moat, as it requires the high-quality evidence Natera has generated. Q: Can you provide more detail on the new SIGNAL-ER 101 study and the broader SIGNAL program? How should we think about its potential impact?A: Alexey Aleshin (CMO) explained that SIGNAL-ER 101 is the first of a new portfolio of interventional, pharma-standard studies Natera is sponsoring and running itself. The study uses Signatera to guide the use of CDK4/6 inhibitors in early-stage HR+/HER2- breast cancer, potentially sparing MRD-negative patients from toxic and expensive therapy. He stated that if positive, the study would be practice-changing. Steve Chapman added that this is the first of a suite of studies across major histologies designed to be guideline-enabling, representing a major strategic investment. Q: With the strong growth in women's health, are you seeing share gains from competitors, and what is driving this performance?A: Steve Chapman (CEO) confirmed that Natera is definitely benefiting from share gains in women's health. He attributed this to recent product launches, particularly the enhanced Panorama test, which resolved the historical gap of high no-call rates at low fetal fractions, and the Fetal Focus product. He noted that Q2 is typically a soft quarter due to seasonality, but the company overcame this with strong interest in its enhanced product portfolio, putting the sales team in a very positive position. Q: What is the outlook for the commercial launch of Signatera in Japan, and how quickly can the market adoption ramp?A: Solomon Moshkevich (President, Clinical Diagnostics) stated that the launch is on track for the end of the year, pending pricing and reimbursement. He expects market adoption to meet or exceed the rates seen in the US when Signatera was first launched for colorectal cancer, due to the strong existing data and supportive society guidelines in Japan. He noted that reimbursement is the key unlock for ordering, and Natera is supplementing its distribution partner with a direct sales effort to drive awareness quickly. Q: Can you unpack the drivers of the sequential ASP increase and the potential for further near-term upside?A: Michael Brophy (CFO) explained that the current guidance assumes stable ASPs of $1,275 for Signatera. He noted that an upside case for the year could include another $25 sequential increase, driven by tactical wins like improving Medicare Advantage compliance and expanding coverage in biomarker states. However, he emphasized that the larger, more impactful drivers like MolDX coverage expansions and NCCN guideline benefits are expected to contribute more significantly in 2027. Q: With the strong volume growth, why didn't gross margins increase more significantly, and when will the mix dynamics start to flip?A: Michael Brophy (CFO) explained that the margin improvement was balanced out by a step-up in volumes from recently launched products like Fetal Focus, LATITUDE, and Signatera Genome, which are not yet optimized for COGS. He noted that this is a healthy development, as it sets up the company to generate returns from COGS reduction projects over the next 12 to 18 months, now that the demand for these products is confirmed. Q: How should we think about the competitive landscape in MRD, given the growth of new entrants?A: Steve Chapman (CEO) acknowledged that competition is a constant factor but noted that major competitors have been in the market for years without impacting Natera's growth. He attributed Natera's success to its investments in technology, clinical evidence, and commercial execution. He emphasized that the market is still in its early stages with mid-single-digit penetration, and Natera is best positioned to capture the upside, while closely monitoring competitors to close any potential gaps. Q: Can you provide more color on the drivers of the strong new patient starts and the mix of tumor types?A: Steve Chapman (CEO) stated that colorectal and breast remain the largest indications, but there is significant growth in the "long tail" of other histologies as new data is published. He noted that new patient starts were "way up," which foreshadows significant future growth in recurrence monitoring and surveillance. He also mentioned that there are seven MolDX submissions in flight for additional indications, which will drive further adoption. Q: Regarding the SG&A guidance, where are the efficiencies coming from, and what is the path to profitability?A: Michael Brophy (CFO) clarified that the step-down in SG&A in the second half is largely due to onetime expenses in Q1, such as noncash stock-based compensation accruals and litigation expenses, which are not expected to recur. He also highlighted that Natera is deploying AI across the business at a "frenetic pace," driving significant efficiencies in the lab and workflows, which is contributing to the longer-term path to profitability. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

AUSTIN, Texas, August 06, 2026--(BUSINESS WIRE)--Natera, Inc. (NASDAQ: NTRA), a global leader in cell-free DNA and genetic testing, today reported its financial results for the second quarter ended June 30, 2026. Recent Financial Highlights Generated total revenues of $752.8 million in the second quarter of 2026, compared to $546.6 million in the second quarter of 2025, an increase of 37.7%. Generated a gross margin1 of 64.5% in the second quarter of 2026, compared to a gross margin1 of 63.4% in the second quarter of 2025. Excluding revenue true-ups, second quarter non-GAAP gross margin2 improved 50 basis points over the first quarter of 2026. Processed approximately 1,043,900 tests in the second quarter of 2026, compared to approximately 853,100 tests in the second quarter of 2025, an increase of 22.4%. Processed approximately 296,700 oncology tests in the second quarter of 2026, compared to approximately 188,800 in the second quarter of 2025, an increase of 57.2%. Clinical molecular residual disease (MRD) oncology units grew 34,000 units over the first quarter of 2026, the largest sequential increase to-date. Increased cash by approximately $3.6 million3 during the second quarter of 2026. Raised 2026 annual revenue guidance by $100 million at the midpoint, from $2.74 billion - $2.82 billion to $2.85 billion - $2.91 billion. "We had an exceptional quarter helping patients, with over one million tests processed for the second consecutive quarter and record growth in oncology volumes," said Steve Chapman, chief executive officer of Natera. "We also reached several landmark milestones in the last few months: SignateraTM achieved three significant regulatory approvals, Medicare coverage expanded for ProsperaTM, and we launched a major enhancement to our PanoramaTM NIPT." Second Quarter Ended June 30, 2026 Financial Results Total revenues were $752.8 million in the second quarter of 2026 compared to $546.6 million in the second quarter of 2025, an increase of 37.7%. The increase in revenues was driven by an increase in volume and average selling price improvements. Natera processed approximately 1,043,900 tests in the second quarter of 2026, including approximately 1,030,100 tests accessioned in its laboratory, compared to approximately 853,100 tests processed, including approximately 839,300 tests accessioned in its laboratory, in the second quarter of 2025. In the second quarter of 2026, Natera recognized revenue on approximately 985,500 tests for which results were reported to customers in the period (tests reported), including approximately 972,000 tests reported from its laboratory, compared to approximately 812,900 tests reported, including approximately 799,900 tests reported from its laboratory, in the second quarter of 2025, an increase of 21.2% from the prior period. Gross profit1 for the three months ended June 30, 2026 and 2025 was $485.2 million and $346.6 million, respectively, representing a gross margin1 of 64.5% and 63.4%, respectively. Natera had higher gross margin1 in the second quarter of 2026 primarily as a result of higher revenues and continued progress in reducing cost of revenues associated with tests processed. There was also a change in estimate of approximately $52.3 million in the second quarter of 2026 in revenue accrual as compared to $45.3 million in the second quarter of 2025. Changes in estimates for the three months ended June 30, 2026 and 2025 increased revenue and, as a result, increased gross margin1 and gross profit1 by 2.7% and $52.3 million, and by 3.3% and $45.3 million, respectively. Gross margin1 for the three months ended March 31, 2026 was 64.7%. Excluding the change in estimates in revenue accruals of approximately $52.3 million and $61.0 million during the three months ended June 30, 2026 and March 31, 2026, respectively, Natera’s non-GAAP gross margin2 increased by approximately 0.5% sequentially. Total operating expenses, representing research and development expenses and selling, general and administrative expenses, for the second quarter of 2026 was $555.3 million, compared to $457.0 million in the same period of the prior year, an increase of 21.5%. The increase was primarily driven by headcount growth to support new product offerings as well as increases in clinical trial expenses. Amortization of acquired intangible assets for the second quarter of 2026 was $5.7 million. No such amortization occurred in the second quarter of 2025. Loss from operations for the second quarter of 2026 was $75.8 million compared to $110.4 million for the same period of the prior year. Natera’s net loss for the second quarter of 2026 was $67.0 million, or ($0.47) per diluted share, compared to a net loss of $100.9 million, or ($0.74) per diluted share, in the second quarter of 2025. Weighted average shares outstanding were 143.3 million in the second quarter of 2026 compared to 136.4 million for the same period in the prior year. At June 30, 2026, Natera held approximately $1,091.5 million in cash, cash equivalents, and restricted cash, compared to $1,076.1 million as of December 31, 2025. As of June 30, 2026, Natera had a total outstanding debt balance of $80.3 million including accrued interest under its line of credit with UBS at a variable interest rate of 30-day SOFR plus 50 bps. Financial Outlook Natera anticipates 2026 total revenue of $2.85 billion to $2.91 billion; 2026 gross margin1 to be approximately 64% to 66%; selling, general and administrative costs to be approximately $1.125 billion to $1.225 billion; research and development costs to be $800 million to $900 million; and cash flow to be positive. About Natera Natera™ is a global leader in cell-free DNA and precision medicine, dedicated to oncology, women’s health, and organ health. We aim to make personalized genetic testing and diagnostics part of the standard-of-care to protect health and inform earlier, more targeted interventions that help lead to longer, healthier lives. Natera’s tests are supported by more than 400 peer-reviewed publications that demonstrate excellent performance. Natera operates ISO 13485-certified and CAP-accredited laboratories certified under the Clinical Laboratory Improvement Amendments (CLIA) in Austin, Texas, and San Carlos, California, and through Foresight Diagnostics, its subsidiary, operates an ISO 27001-certified and CAP-accredited laboratory certified under CLIA in Boulder, Colorado. For more information, visit www.natera.com. Conference Call Information Forward-Looking Statements This press release contains forward-looking statements under the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts, including statements regarding our market opportunity, anticipated products and launch schedules, reimbursement coverage, product costs, and gross margins, commercial and strategic partnerships and acquisitions, user experience, clinical trials and studies, and our strategies, goals and general business and market conditions, are forward-looking statements. Any forward-looking statements contained in this press release are based upon Natera’s current plans, estimates, and expectations, as of the date of this release, and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially, including: we face numerous uncertainties and challenges in achieving our financial projections and goals; we may be unable to further increase the use and adoption of our products through our direct sales efforts or through our laboratory partners; we have incurred net losses since our inception and we anticipate that we will continue to incur net losses for the foreseeable future; our quarterly results may fluctuate from period to period; unless otherwise indicated, all financial data for the current and prior quarters are unaudited and subject to adjustment in connection with the completion of our quarterly and annual financial reporting processes; our estimates of market opportunity and forecasts of market growth may prove to be inaccurate; we may be unable to compete successfully with existing or future products or services offered by our competitors; we may engage in acquisitions, dispositions or other strategic transactions that may not achieve our anticipated benefits and could otherwise disrupt our business, cause dilution to our stockholders or reduce our financial resources; our products may not perform as expected; the results of our clinical studies may not support the use and reimbursement of our tests, particularly for microdeletions screening, and may not be able to be replicated in later studies required for regulatory approvals or clearances; if either of our primary CLIA-certified laboratories becomes inoperable, we will be unable to perform our tests and our business may be harmed; we rely on a limited number of suppliers or, in some cases, single suppliers, for some of our laboratory instruments and materials and may not be able to find replacements or immediately transition to alternative suppliers; if we are unable to successfully scale our operations, our business could suffer; the marketing, sale, and use of Panorama and our other products could result in substantial damages arising from product liability or professional liability claims that exceed our resources; we may be unable to expand, obtain or maintain third-party payer coverage and reimbursement for our tests, and we may be required to refund reimbursements already received; third-party payers may withdraw coverage or provide lower levels of reimbursement due to changing policies, billing complexities or other factors; we could incur substantial costs and delays complying with governmental regulations; litigation and other regulatory or governmental proceedings related to our intellectual property or the commercialization of our tests, are costly, time-consuming, could result in our obligation to pay material judgments or incur material settlement costs, and could limit our ability to commercialize our tests; and any inability to effectively protect our proprietary technology could harm our competitive position or our brand. We discuss these and other risks and uncertainties in greater detail in the sections entitled "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our periodic reports on Forms 10-K and 10-Q and in other filings that we make with the SEC from time to time. These documents are available on our website at www.natera.com under the Investor Relations section and on the SEC’s website at www.sec.gov. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement. In light of these risks, uncertainties and assumptions, you should not place undue reliance on our forward-looking statements. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this presentation to conform these statements to actual results or to changes in our expectations. References: Gross profit is calculated as GAAP total revenues less GAAP cost of revenues. Gross margin is calculated as gross profit divided by GAAP total revenues. Excluding the change in estimates in revenue accruals of approximately $52.3 million and $61.0 million during the three months ended June 30, 2026 and March 31, 2026, respectively, Natera’s non-GAAP gross margin increased by approximately 0.5% sequentially. Includes GAAP cash, cash equivalents and restricted cash. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806933033/en/ Contacts Investor Relations Mike Brophy, CFO, Natera, Inc., 510-826-2350 Media Lesley Bogdanow, VP of Corporate Communications, Natera, Inc., [email protected]

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Natera (NTRA) is drawing fresh attention after announcing plans to report second quarter 2026 results on August 6, 2026, after the market close, followed by a conference call and webcast. See our latest analysis for Natera. At a latest share price of US$267.76, Natera has seen short term share price momentum cool slightly over the past month, while its 90 day share price return of 29.18% and one year total shareholder return of 98.96% point to strong underlying interest ahead of the earnings update. If this earnings release has your attention, it could be a good moment to widen your watchlist with other healthcare related AI opportunities using the 41 healthcare AI stocks Bulls point to Natera’s strong share price run and revenue growth, while bears focus on its losses and rich valuation signals. The next step is to test which side the current numbers and implied intrinsic value lean toward. The most followed valuation narrative for Natera puts fair value at about $282.14 per share, a touch above the latest close of $267.76. This frames the coming earnings against expectations of modest undervaluation. Read the complete narrative. Want to see what sits behind that fair value for Natera? The narrative leans on rapid earnings expansion, richer margins and a premium future profit multiple that would usually turn heads. Result: Fair Value of $282.14 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Natera’s story can change quickly if key clinical trials disappoint or if reimbursement policies tighten, which could pressure both volumes and margins. Find out about the key risks to this Natera narrative. The analyst narrative puts Natera at about 5.1% undervalued using future earnings assumptions and target multiples. Our DCF model points in a very different direction, with an estimated future cash flow value of around $556.56 per share, well above the current US$267.76. Which lens do you trust more when earnings land? Look into how the SWS DCF model arrives at its fair value. With both optimism and caution running through the Natera story, this is a moment to move quickly and weigh the full picture for yourself. To see how the positives and risks line up in one place, review the 2 key rewards and 1 important warning sign If Natera is already on your radar, do not stop there. Broaden your watchlist now so you do not miss opportunities that match your own investing style. Target companies that pair quality with attractive pricing by checking out the 55 high quality undervalued stocks. Prioritise resilience in tougher markets and review the 81 resilient stocks with low risk scores for stocks with steadier risk profiles. Hunt for less crowded opportunities by scanning the screener containing 19 high quality undiscovered gems before other investors pay attention. 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 NTRA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]