second quarter of 2026
Filed Aug 6, 2026Natera Reports Second Quarter 2026 Financial Results
Total revenues increased 37.7%, test volumes increased 22.4%, gross margin expanded to 64.5%, and net loss narrowed to $67.0 million. The company also raised 2026 annual revenue guidance by $100 million at the midpoint.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $752.8 million | – | 37.7% |
| Gross profitGAAP | $485.2 million | – | – |
| Gross marginGAAP | 64.5% | – | – |
| Non-GAAP gross-margin sequential improvement, excluding revenue true-upsnon-GAAP | approximately 0.5% | approximately 0.5% | – |
| Total operating expensesGAAP | $555.3 million | – | 21.5% |
| Amortization of acquired intangible assetsGAAP | $5.7 million | – | – |
| Loss from operationsGAAP | $75.8 million | – | – |
| Net lossGAAP | $67.0 million | – | – |
| Net loss per diluted shareGAAP | ($0.47) per diluted share | – | – |
| Weighted average shares outstandingGAAP | 143.3 million | – | – |
| Tests processedother | approximately 1,043,900 tests | – | 22.4% |
| Tests accessioned in laboratoryother | approximately 1,030,100 tests | – | – |
| Tests reportedother | approximately 985,500 tests | – | 21.2% |
| Tests reported in laboratoryother | approximately 972,000 tests | – | – |
| Oncology tests processedother | approximately 296,700 oncology tests | – | 57.2% |
| Clinical molecular residual disease oncology-unit growthother | 34,000 units | 34,000 units | – |
| Change in estimate in revenue accrualGAAP | approximately $52.3 million | – | – |
| Gross-margin impact from changes in estimatesGAAP | 2.7% | – | – |
| Gross-profit impact from changes in estimatesGAAP | $52.3 million | – | – |
2026 outlook
- Revenue$2.85 billion to $2.91 billion
- Gross marginapproximately 64% to 66%
- NoteSelling, general and administrative costs to be approximately $1.125 billion to $1.225 billion
- NoteResearch and development costs to be $800 million to $900 million
- NoteCash flow to be positive
What drove it
- Revenue growth was driven by an increase in volume and average selling price improvements.
- Higher gross margin was primarily the result of higher revenues and continued progress in reducing cost of revenues associated with tests processed.
- Operating-expense growth was primarily driven by headcount growth to support new product offerings and increases in clinical trial expenses.
- Oncology test volume increased 57.2%, and clinical molecular residual disease oncology units recorded the largest sequential increase to-date.
- Signatera achieved three significant regulatory approvals, Medicare coverage expanded for Prospera, and Natera launched a major enhancement to Panorama NIPT.
Concerns
- Natera reported a net loss of $67.0 million and loss from operations of $75.8 million.
- Total operating expenses increased 21.5% to $555.3 million, reflecting headcount growth and clinical trial expenses.
- Changes in estimates for revenue accrual increased revenue, gross margin, and gross profit by 2.7% and $52.3 million, respectively.
- The company had a total outstanding debt balance of $80.3 million including accrued interest under its UBS line of credit.
What to watch
- Delivery against 2026 total revenue guidance of $2.85 billion to $2.91 billion.
- Sustainability of gross margin within guidance of approximately 64% to 66%, including progress in reducing cost of revenues associated with tests processed.
- Oncology-volume growth and further clinical molecular residual disease oncology-unit additions.
- Selling, general and administrative costs of approximately $1.125 billion to $1.225 billion and research and development costs of $800 million to $900 million.
- Whether cash flow becomes positive, as anticipated in the 2026 outlook.
Balance sheet and cash flow
- Increased cash by approximately $3.6 million during the second quarter of 2026.
- 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.
Analysis
Natera reported strong second-quarter growth, with total revenues of $752.8 million, up 37.7% from $546.6 million. The release attributed the revenue increase to higher volume and average selling price improvements. Test throughput supported that growth: tests processed increased 22.4% to approximately 1,043,900 tests, while tests reported increased 21.2% to approximately 985,500 tests. Oncology was the principal volume-growth highlight, with approximately 296,700 oncology tests processed, up 57.2%.
Gross profit rose to $485.2 million and gross margin increased to 64.5% from 63.4%. Management cited higher revenue and progress reducing test-processing costs as the primary factors. Reported gross margin was below the 64.7% reported for the three months ended March 31, 2026, while the company said non-GAAP gross margin, excluding changes in revenue-accrual estimates, increased by approximately 0.5% sequentially. The estimate change increased second-quarter revenue, gross margin, and gross profit by 2.7% and $52.3 million, respectively, making the underlying-margin progression an important point of focus.
Operating expenses increased 21.5% to $555.3 million, driven by headcount growth for new product offerings and higher clinical trial expenses. Despite that spending growth, loss from operations narrowed to $75.8 million from $110.4 million and net loss narrowed to $67.0 million from $100.9 million. Diluted net loss per share improved to ($0.47) from ($0.74), although weighted average shares outstanding increased to 143.3 million from 136.4 million.
Liquidity increased during the quarter, with cash, cash equivalents, and restricted cash of approximately $1,091.5 million at June 30, 2026, compared with $1,076.1 million at December 31, 2025. Natera also reported $80.3 million of total outstanding debt including accrued interest under its UBS line of credit. The company did not report dividends or share repurchases in the filing.
Management raised 2026 annual revenue guidance by $100 million at the midpoint and now anticipates $2.85 billion to $2.91 billion of total revenue. It guided to approximately 64% to 66% gross margin, selling, general and administrative costs of approximately $1.125 billion to $1.225 billion, research and development costs of $800 million to $900 million, and positive cash flow. The outlook places execution emphasis on sustaining oncology growth, maintaining margin performance after excluding revenue true-ups, and converting revenue growth into positive cash flow while funding commercial and clinical expansion.
Management, verbatim
We had an exceptional quarter helping patients, with over one million tests processed for the second consecutive quarter and record growth in oncology volumes. We also reached several landmark milestones in the last few months: Signatera™ achieved three significant regulatory approvals, Medicare coverage expanded for Prospera™, and we launched a major enhancement to our Panorama™ NIPT.
Steve Chapman, chief executive officer of Natera
Not in the filing
stated, not guessed- Segment revenue and segment profitability were not disclosed.
- GAAP operating cash flow was not disclosed.
- Free cash flow was not disclosed.
- Dividends and share repurchases were not disclosed.
- Non-GAAP net income and non-GAAP EPS were not disclosed.
- A tax-rate metric and tax-rate guidance were not disclosed.
- Separate second-quarter research and development expense and selling, general and administrative expense amounts were not disclosed.
- Prior-quarter total revenue, operating expenses, operating loss, net loss, EPS, and test-volume metrics were not disclosed.
- Previous-release outlook was not provided; therefore, no actual-versus-prior-guidance comparisons are included.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.