Q - Adaptive Biotechnologies
For the period ended Jun 30, 2025. Filed Aug 5, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 5, 2025
ADPT$27.98+4.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0000950170-25-061897
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0000950170-25-103120
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 76 previous paragraphs and 91 current paragraphs.
55 unchanged; 21 reworded; 8 added; 0 removed; 0 previous and 7 current paragraphs rearranged.
Tables are not compared: 12 previous and 23 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
Impairment of long-lived assets expenses include our impairment charges for certain leased space, related long-lived assets (including leasehold improvements and laboratory equipment) and long-lived assets associated with our halted software enhancements. See Note 7, Leasesand Note 12, Restructuringsof the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report for details regarding our impairment assessments and considerations.
Current report
The $14.7 million increase in MRD revenue was primarily due to a $12.0 million increase in revenue generated from providing clonoSEQ to clinical customers, a $2.5 million increase in revenue recognized upon the achievement of regulatory milestones by certain of our biopharmaceutical customers and a $0.4 million increase in revenue generated from providing MRD sample testing services to biopharmaceutical customers. These increases were partially offset by a $0.3 million decrease in revenue generated from providing MRD sample testing services to investigator-led clinical trials. Our clonoSEQ test volume increased by 37% to 25,321 tests delivered in the three months ended June 30, 2025 from 18,520 tests delivered in the three months ended June 30, 2024.
Current report
The $1.0 million increase in Immune Medicine revenue was primarily due to a $2.1 million increase in revenue generated from the Genentech Agreement, partially offset by a $1.1 million decrease in revenue generated from our biopharmaceutical and academic customers.
Current report
The $0.1 million decrease in general and administrative expenses was primarily attributable to a $0.3 million decrease in building, facility and depreciation related expenses and a $0.3 million decrease in personnel costs. These decreases were partially offset by a $0.4 million increase in third-party billing service fees.
Current report
The $7.2 million decrease in impairment of long-lived assets expenses was attributable to the impairment of certain long-lived assets and our decision to vacate certain leased space as a result of various restructuring activities in 2024.
Current report
The $13.2 million increase in MRD Adjusted EBITDA was primarily attributable to a $14.7 million increase in MRD revenue, partially offset by an increase in operating expenses, excluding those identified as reconciling items between net loss and adjusted EBITDA. The increase in these operating expenses relates primarily to sales and marketing activities.
Current report
The $1.0 million reduction in Immune Medicine Adjusted EBITDA deficit was primarily attributable to a $1.0 million increase in Immune Medicine revenue, which was driven largely by revenue generated from the Genentech Agreement.
Current report
The $7.2 million decrease in impairment of long-lived assets expenses was attributable to the impairment of certain long-lived assets and our decision to vacate certain leased space as a result of various restructuring activities in 2024.
Reworded paragraphs (21)
Previous wording
Our current product and service offerings in MRD related to the MRD market are our clonoSEQ clinical diagnostic test, offered to clinicians, and our clonoSEQ or MRD assay, offered to biopharmaceutical partners to advance drug development efforts. Our first clinical diagnostic product, clonoSEQ, is the first test authorized by the Food and Drug Administration for the detection and monitoring of MRD in patients with multiple myeloma, B cell acute lymphoblastic leukemia and chronic lymphocytic leukemia, and is also available as a CLIA-validated laboratory developed test for patients with other lymphoid cancers, including diffuse large B-cell lymphoma and mantle cell lymphoma (“MCL”). In the fourth quarter of 2024, we obtained Medicare coverage for MCL and initiated promotional efforts in MCL. We also recently obtained a new Medicare Clinical Laboratory Fee Schedule rate of $2,007 per test for clonoSEQ and MolDX updated the clonoSEQ episode pricing to $8,029 for all covered indications. This represents a 17% increase from the previous episode price and the previous implied per test rate under the episode structure. In April 2025, Palmetto GBA expanded coverage of clonoSEQ to include single time point testing to monitor for recurrence in patients with a history of MCL. This expanded coverage is in addition to the existing Medicare episode payment structure for clonoSEQ. With the use of clonoSEQ, we are transforming how lymphoid cancers are treated by working with providers, pharmaceutical partners and payors. In an effort to enable easier test ordering, we have worked to integrate the clonoSEQ clinical diagnostic test via Epic System Corporation's comprehensive electronic medical record system into the records systems of numerous accounts, and continue to make more progress.
Current wording
Our current product and service offerings in MRD related to the MRD market are our clonoSEQ clinical diagnostic test, offered to clinicians, and our clonoSEQ or MRD assay, offered to biopharmaceutical partners to advance drug development efforts. Our first clinical diagnostic product, clonoSEQ, is the first test authorized by the Food and Drug Administration for the detection and monitoring of MRD in patients with multiple myeloma, B cell acute lymphoblastic leukemia and chronic lymphocytic leukemia, and is also available as a CLIA-validated laboratory developed test for patients with other lymphoid cancers, including diffuse large B-cell lymphoma and mantle cell lymphoma (“MCL”). In the fourth quarter of 2024, we obtained Medicare coverage for MCL and initiated promotional efforts in MCL. We also obtained a new Medicare Clinical Laboratory Fee Schedule rate of $2,007 per test for clonoSEQ and MolDX updated the clonoSEQ episode pricing to $8,029 for all covered indications. This represents a 17% increase from the previous episode price and the previous implied per test rate under the episode structure. In April 2025, Palmetto GBA expanded coverage of clonoSEQ to include single time point testing to monitor for recurrence in patients with a history of MCL. This expanded coverage is in addition to the existing Medicare episode payment structure for clonoSEQ. With the use of clonoSEQ, we are transforming how lymphoid cancers are treated by working with providers, pharmaceutical partners and payors. In an effort to enable easier test ordering, we have worked to integrate the clonoSEQ clinical diagnostic test via Epic System Corporation's comprehensive electronic medical record system into the records systems of numerous accounts, and continue to make more progress.
Previous wording
We recognized revenue of $52.4 million and $41.9 million for the three months ended March 31, 2025 and 2024, respectively. Net loss attributable to Adaptive Biotechnologies Corporation was $29.9 million and $47.5 million for the three months ended March 31, 2025 and 2024, respectively. We have funded our operations to date principally from the sale of convertible preferred stock and common stock, including the sale of common stock in our initial public offering and follow-on offering, and, to a lesser extent, revenue and proceeds from the revenue interest purchase agreement we entered into in September 2022 (the “Purchase Agreement”). As of March 31, 2025 and December 31, 2024, we had cash, cash equivalents and marketable securities of $232.8 million and $256.0 million, respectively.
Current wording
We recognized revenue of $58.9 million and $43.2 million for the three months ended June 30, 2025 and 2024, respectively, and $111.3 million and $85.1 million for the six months ended June 30, 2025 and 2024, respectively. Net loss attributable to Adaptive Biotechnologies Corporation was $25.6 million and $46.2 million for the three months ended June 30, 2025 and 2024, respectively, and $55.5 million and $93.7 million for the six months ended June 30, 2025 and 2024, respectively. We have funded our operations to date principally from the sale of convertible preferred stock and common stock, including the sale of common stock in our initial public offering and follow-on offering, and, to a lesser extent, revenue and proceeds from the revenue interest purchase agreement we entered into in September 2022 (the “Purchase Agreement”). As of June 30, 2025 and December 31, 2024, we had cash, cash equivalents and marketable securities of $222.0 million and $256.0 million, respectively.
Previous wording
We expect research and development expenses to decrease in the short term and to decrease as a percentage of revenue in the long term, although the percentage may fluctuate from period to period due to the timing and extent of our development and commercialization efforts.
Current wording
We expect research and development expenses to remain relatively consistent in the short term and to decrease as a percentage of revenue in the long term, although the percentage may fluctuate from period to period due to the timing and extent of our development and commercialization efforts.
Previous wording
The $6.0 million decrease in research and development expenses was primarily attributable to a $4.2 million decrease in personnel costs and a $1.3 million decrease in laboratory materials and allocated production laboratory expenses, which was driven primarily by decreased investments in drug discovery efforts, partially offset by an increase in investments related to the MRD business. There was also a $0.9 million decrease in allocable facility expenses.
Current wording
The $1.2 million decrease in research and development expenses was primarily attributable to a $1.4 million decrease in personnel costs and a $0.9 million decrease in allocable facility expenses. These decreases were partially offset by a $0.6 million increase in laboratory materials and allocated production laboratory expenses, which was driven primarily by increased investments in drug discovery efforts.
Previous wording
The $1.5 million decrease in interest and other income, net was primarily attributable to a decrease in net interest income and investment amortization driven by decreased holdings of and interest rates pertaining to our cash, cash equivalents and marketable securities.
Current wording
The $1.4 million decrease in interest and other income, net was primarily attributable to a decrease in net interest income and investment amortization driven by decreased holdings of and interest rates pertaining to our cash, cash equivalents and marketable securities.
Previous wording
The $0.1 million decrease in interest expense was attributable to a change in our assumptions regarding the timeframe in which our Purchase Agreement will be fully repaid.
Current wording
The $0.3 million increase in interest expense was attributable to a change in our assumptions regarding the timeframe in which our Purchase Agreement will be fully repaid.
Previous wording
The $11.1 million increase in MRD revenue was primarily due to a $9.9 million increase in revenue generated from providing clonoSEQ to clinical customers and a $1.0 million increase in revenue generated from providing MRD sample testing services to biopharmaceutical customers. Our clonoSEQ test volume increased by 36% to 23,117 tests delivered in the three months ended March 31, 2025 from 17,040 tests delivered in the three months ended March 31, 2024.
Current wording
The $25.7 million increase in MRD revenue was primarily due to a $21.9 million increase in revenue generated from providing clonoSEQ to clinical customers, a $2.5 million increase in revenue recognized upon the achievement of regulatory milestones by certain of our biopharmaceutical customers and a $1.4 million increase in revenue generated from providing MRD sample testing services to biopharmaceutical customers. Our clonoSEQ test volume increased by 36% to 48,438 tests delivered in the six months ended June 30, 2025 from 35,560 tests delivered in the six months ended June 30, 2024.
Previous wording
The $0.5 million decrease in Immune Medicine revenue was primarily due to a $1.1 million decrease in revenue generated from the Genentech Agreement, which resulted from decreased collaboration expenses, partially offset by a $0.6 million increase in revenue generated from our biopharmaceutical and academic customers.
Current wording
The $0.5 million increase in Immune Medicine revenue was primarily due to a $1.1 million increase in revenue generated from the Genentech Agreement, partially offset by a $0.6 million decrease in revenue generated from our biopharmaceutical and academic customers.
Previous wording
The $1.1 million decrease in cost of revenue was primarily attributable to a $1.2 million decrease in cost of materials, which was due primarily to reductions in inventory reserve expense and assay costs, and a $1.4 million decrease in labor and overhead costs, which was largely driven by reduced headcount and a reduction in laboratory relocation and consolidation activities. These decreases were partially offset by a $0.6 million increase related to higher usage of our production laboratory to process revenue samples versus research and development samples, a $0.5 million increase in materials cost resulting from increased revenue sample volume and a $0.3 million increase in shipping and handling expenses for sample collection kits.
Current wording
The $2.4 million decrease in cost of revenue was primarily attributable to a $2.6 million decrease in labor and overhead costs, which was largely driven by reduced headcount and a reduction in laboratory relocation and consolidation activities, as well as a $2.6 million decrease in cost of materials due primarily to reductions in inventory reserve expense and assay costs. These decreases were partially offset by a $1.2 million increase in materials cost resulting from increased revenue sample volume, a $0.9 million increase related to higher usage of our production laboratory to process revenue samples versus research and development samples and a $0.5 million increase in shipping and handling expenses.
Previous wording
The $0.7 million increase in sales and marketing expenses was primarily attributable to a $0.7 million increase in personnel costs, a $0.5 million increase in allocated facility and overhead expenses and a $0.4 million increase in consulting costs. These increases were partially offset by a $1.1 million decrease in marketing expenses, largely driven by reduced clonoSEQ and corporate marketing activities.
Current wording
The $4.0 million increase in sales and marketing expenses was primarily attributable to a $2.2 million increase in personnel costs, a $0.9 million increase in consulting costs, a $0.8 million increase in allocated facility and overhead expenses and a $0.6 million increase in computer and software expenses. These increases were partially offset by a $0.8 million decrease in marketing expenses, driven largely by reduced clonoSEQ and corporate marketing activities.
Previous wording
The $2.2 million decrease in general and administrative expenses was primarily attributable to a $2.2 million decrease in personnel costs, a $0.4 million decrease in computer and software expenses and a $0.4 million decrease in accounting and tax fees. These decreases were partially offset by a $0.6 million increase in legal fees.
Current wording
The $2.3 million decrease in general and administrative expenses was primarily attributable to a $2.4 million decrease in personnel costs, a $0.5 million decrease in building, facility and depreciation related expenses, which was driven by office space transitions made to support laboratory consolidation activities, a $0.5 million decrease in accounting and tax fees and a $0.5 million decrease in computer and software expenses. These decreases were partially offset by a $0.7 million increase in legal fees, a $0.5 million increase in third-party billing service fees and a $0.3 million increase in consultant costs.
Previous wording
The $13.1 million reduction in MRD Adjusted EBITDA deficit was primarily attributable to a $11.1 million increase in MRD revenue and a reduction in operating expenses, excluding those identified as reconciling items between net loss and adjusted EBITDA. The primary driver of the operating expense reduction relates to research and development activities.
Current wording
The $26.3 million reduction in MRD Adjusted EBITDA deficit was primarily attributable to a $25.7 million increase in MRD revenue and a reduction in operating expenses, excluding those identified as reconciling items between net loss and adjusted EBITDA. The primary driver of the operating expense reduction relates to research and development activities.
Previous wording
The $1.5 million reduction in Immune Medicine Adjusted EBITDA deficit was primarily attributable to a reduction in operating expenses, excluding those identified as reconciling items between net loss and adjusted EBITDA, partially offset by a $0.5 million reduction in Immune Medicine revenue. The primary driver of the operating expense reduction relates to research and development activities.
Current wording
The $2.4 million reduction in Immune Medicine Adjusted EBITDA deficit was primarily attributable to a reduction in operating expenses, excluding those identified as reconciling items between net loss and adjusted EBITDA, and a $0.5 million increase in Immune Medicine revenue. The primary drivers of the operating expense reduction relate to cost of revenue and research and development activities.
Previous wording
(2) Represents expenses recognized in conjunction with restructuring activities. See Note 12, Restructuring of the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report for details on our restructuring expense.
Current wording
(2) Represents expenses recognized in conjunction with restructuring activities. See Note 12, Restructurings of the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report for details on our restructuring expense.
Previous wording
We have incurred losses since inception and have incurred negative cash flows from operations since inception through March 31, 2025, with the exception of certain 2019 periods for which we had positive cash flows from operations. As of March 31, 2025, we had an accumulated deficit of $1.3 billion.
Current wording
We have incurred losses since inception and have incurred negative cash flows from operations since inception through June 30, 2025, with the exception of certain 2019 periods for which we had positive cash flows from operations. As of June 30, 2025, we had an accumulated deficit of $1.4 billion.
Previous wording
We have funded our operations to date principally from the sale of convertible preferred stock and common stock, and, to a lesser extent, revenue and proceeds from the Purchase Agreement. Pursuant to the Purchase Agreement entered into in September 2022, we received net cash proceeds of $124.4 million, after deducting issuance costs. We are also entitled to receive up to $125.0 million in subsequent installments as follows: (i) $75.0 million upon our request occurring no later than September 12, 2025 and (ii) $50.0 million upon our request in connection with certain permitted acquisitions occurring no later than September 12, 2025, in each case subject to certain funding conditions. As of March 31, 2025, we had cash, cash equivalents and marketable securities of $232.8 million.
Current wording
We have funded our operations to date principally from the sale of convertible preferred stock and common stock, and, to a lesser extent, revenue and proceeds from the Purchase Agreement. Pursuant to the Purchase Agreement entered into in September 2022, we received net cash proceeds of $124.4 million, after deducting issuance costs. We are also entitled to receive up to $125.0 million in subsequent installments as follows: (i) $75.0 million upon our request occurring no later than September 12, 2025 and (ii) $50.0 million upon our request in connection with certain permitted acquisitions occurring no later than September 12, 2025, in each case subject to certain funding conditions. As of June 30, 2025, we had cash, cash equivalents and marketable securities of $222.0 million.
Previous wording
We plan to utilize the existing cash, cash equivalents and marketable securities on hand primarily to fund our commercial and marketing activities associated with clonoSEQ, our continued investments in streamlining our laboratory operations and our continued research and development initiatives related to drug discovery. Cash in excess of immediate requirements is invested in accordance with our investment policy, primarily with a view to capital preservation and liquidity. Currently, our funds are held in money market funds and marketable securities consisting of U.S. government treasury securities and corporate bonds.
Current wording
We plan to utilize the existing cash, cash equivalents and marketable securities on hand primarily to fund our commercial and marketing activities associated with clonoSEQ, our continued investments in streamlining our laboratory operations and our continued research and development initiatives related to drug discovery. Cash in excess of immediate requirements is invested in accordance with our investment policy, primarily with a view to capital preservation and liquidity. Currently, our funds are held in money market funds and marketable securities consisting of U.S. government treasury securities, corporate bonds and commercial paper.
Previous wording
The following table summarizes our uses and sources of cash for the three months ended March 31, 2025 and 2024 (in thousands):
Current wording
The following table summarizes our uses and sources of cash for the six months ended June 30, 2025 and 2024 (in thousands):
Previous wording
Net cash used in operating activities was $28.5 million as compared to $38.4 million for the three months ended March 31, 2025 and 2024, respectively. The decrease in net cash used in operating activities was primarily driven by an increase in customer collections.
Current wording
Net cash used in operating activities was $40.9 million as compared to $55.7 million for the six months ended June 30, 2025 and 2024, respectively. The decrease in net cash used in operating activities was primarily driven by an increase in customer collections.
Previous wording
Net cash provided by investing activities was $25.6 million as compared to $44.5 million for the three months ended March 31, 2025 and 2024, respectively. The decrease in net cash provided by investing activities was primarily due to a decrease in proceeds from maturities of marketable securities.
Current wording
Net cash provided by investing activities was $28.9 million as compared to $50.4 million for the six months ended June 30, 2025 and 2024, respectively. The decrease in net cash provided by investing activities was primarily due to a decrease in proceeds from maturities of marketable securities, partially offset by an increase in purchases of marketable securities.
Previous wording
Cash provided by financing activities was $5.5 million as compared to a nominal amount for the three months ended March 31, 2025 and 2024, respectively. This increase was due to an increase in proceeds from the exercise of stock options.
Current wording
Cash provided by financing activities was $7.1 million as compared to a nominal amount for the six months ended June 30, 2025 and 2024, respectively. The increase in net cash provided by financing activities was due to an increase in proceeds from the exercise of stock options.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
The $1.3 million decrease in cost of revenue was primarily attributable to a $1.4 million decrease in cost of materials due primarily to reductions in inventory reserve expense and assay costs, as well as a $1.3 million decrease in overhead costs, which was largely driven by a reduction in laboratory relocation and consolidation activities. These decreases were partially offset by a $0.7 million increase in materials cost resulting from increased revenue sample volume, a $0.3 million increase related to higher usage of our production laboratory to process revenue samples versus research and development samples and a $0.2 million increase in shipping and handling expenses.
Current report — wording carried from elsewhere
The $3.3 million increase in sales and marketing expenses was primarily attributable to a $1.6 million increase in personnel costs, a $0.4 million increase in consulting costs and a $0.4 million increase in computer and software expenses. There was also a $0.3 million increase in allocated facility and overhead expenses and a $0.3 million increase in marketing expenses, largely driven by increased clonoSEQ marketing activities.
Current report — wording carried from elsewhere
The following table presents disaggregated research and development expenses by cost classification for the periods presented:
Current report — wording carried from elsewhere
The $7.3 million decrease in research and development expenses was primarily attributable to a $5.7 million decrease in personnel costs, a $1.8 million decrease in allocable facility expenses and a $0.7 million decrease in laboratory materials and allocated production laboratory expenses, which was driven primarily by decreased investments in drug discovery efforts. These decreases were partially offset by a $0.7 million increase in depreciation and other expenses.
Current report — wording carried from elsewhere
The $2.9 million decrease in interest and other income, net was primarily attributable to a decrease in net interest income and investment amortization driven by decreased holdings of and interest rates pertaining to our cash, cash equivalents and marketable securities.
Current report — wording carried from elsewhere
The $0.2 million increase in interest expense was attributable to a change in our assumptions regarding the timeframe in which our Purchase Agreement will be fully repaid.
Current report — wording carried from elsewhere
(1)Adjusted EBITDA is a non-GAAP financial measure. See “Adjusted EBITDA” below for an explanation of how it is calculated and used by management. Adjusted EBITDA related to our unallocated corporate category is included in the calculation of consolidated Adjusted EBITDA but not shown above in the breakout of segment Adjusted EBITDA.