Adaptive Biotechnologies Corp

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 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 integrated our clonoSEQ test into electronic medical record systems, including Epic System Corporation's Aura and Flatiron Health's OncoEMR, of numerous accounts.

Previous wording

Immune Medicine leverages our proprietary ability to sequence, map, pair and characterize T cell receptors (“TCRs”) and B cell receptors (“BCRs”) at scale to drive opportunities in cancer and autoimmune disorders. Our immunosequencing technology, which includes our Adaptive Immunosequencing research product, serves as the research and development engine driving our immune medicine platform and generates revenue from biopharmaceutical and academic customers. We are applying artificial intelligence and machine learning models to map at scale TCR sequences to the diseases they bind to enable our drug discovery efforts. Also in our drug discovery programs, we use our proprietary capabilities to discover new drug targets and leverage our validated TCR and BCR discovery approaches to discover and develop TCR or antibody therapeutic assets. Our drug discovery efforts include our worldwide collaboration and license agreement with Genentech (the “Genentech Agreement”) under which we support Genentech in the development of cancer antigen-directed TCR-based cancer cell therapies for the treatment of patients with solid tumors.

Current wording

Immune Medicine leverages our proprietary ability to sequence, map, pair and characterize T cell receptors (“TCRs”) and B cell receptors (“BCRs”) at scale to drive opportunities in cancer and autoimmune disorders. Our immunosequencing technology, which includes our Adaptive Immunosequencing research product, serves as the research and development engine driving our immune medicine platform and generates revenue from biopharmaceutical and academic customers. We are applying artificial intelligence and machine learning models to map at scale TCR sequences to the diseases they bind to enable our drug discovery efforts. Also in our drug discovery programs, we use our proprietary capabilities to discover new drug targets and leverage our validated TCR and BCR discovery approaches to discover and develop TCR or antibody therapeutic assets.

Previous 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.

Current wording

We recognized revenue of $94.0 million and $46.4 million for the three months ended September 30, 2025 and 2024, respectively, and $205.3 million and $131.5 million for the nine months ended September 30, 2025 and 2024, respectively. Net income attributable to Adaptive Biotechnologies Corporation was $9.5 million for the three months ended September 30, 2025. Net loss attributable to Adaptive Biotechnologies Corporation was $32.1 million for the three months ended September 30, 2024. Net loss attributable to Adaptive Biotechnologies Corporation for the nine months ended September 30, 2025 and 2024 was $45.9 million and $ 125.8 million, 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, revenue and the proceeds from the revenue interest purchase agreement we entered into in September 2022 (the “Purchase Agreement”). As of September 30, 2025 and December 31, 2024, we had cash, cash equivalents and marketable securities of $216.8 million and $256.0 million, respectively.

Previous wording

We derive revenue by providing diagnostic and research services in our MRD and Immune Medicine business areas. Our MRD revenue consists of revenue generated from (1) providing our clonoSEQ report to clinical customers; (2) providing MRD sample testing services to biopharmaceutical customers and certain academic institutions, including investigator-led clinical trials; and (3) providing our clonoSEQ report or results to certain international laboratory sites through technology transfers. We disclose our clonoSEQ test volume, which includes the number of clonoSEQ reports and results we have provided to ordering physicians in the United States (“U.S.”) and international technology transfer sites. These volumes do not include sample results from our biopharmaceutical customers or academic institutions utilizing our MRD services. Our Immune Medicine revenue consists of revenue generated from (1) providing sample testing services for our commercial research product, Adaptive Immunosequencing, to biopharmaceutical customers and academic institutions; and (2) our collaboration agreement with Genentech.

Current wording

We derive revenue by providing diagnostic and research services in our MRD and Immune Medicine business areas. Our MRD revenue consists of revenue generated from (1) providing our clonoSEQ report to clinical customers; (2) providing MRD sample testing services to biopharmaceutical customers and certain academic institutions, including investigator-led clinical trials; and (3) providing our clonoSEQ report or results to certain international laboratory sites through technology transfers. We disclose our clonoSEQ test volume, which includes the number of clonoSEQ reports and results we have provided to ordering physicians in the United States (“U.S.”) and international technology transfer sites. These volumes do not include sample results from our biopharmaceutical customers or academic institutions utilizing our MRD services. Our Immune Medicine revenue consists of revenue generated from (1) providing sample testing services for our commercial research product, Adaptive Immunosequencing, to biopharmaceutical customers and academic institutions; and (2) our former collaboration with Genentech under the Genentech Agreement.

Previous wording

For our clonoSEQ coverage under Medicare, we bill an episode of treatment when we deliver the first eligible test report. This billing contemplates all necessary tests required during a patient’s treatment cycle, which is currently estimated at approximately four tests per patient, including the initial sequence identification test. Revenue recognition commences at the time the initial billable test report is delivered and is based upon cumulative tests delivered to date. Any unrecognized revenue from the initial billable test is recorded as deferred revenue and recognized either as we deliver our estimate of the remaining tests in a patient’s treatment cycle or when the likelihood becomes remote that a patient will receive additional testing.

Current wording

For our clonoSEQ coverage under Medicare, we bill an episode of treatment when we deliver the first eligible test report. This billing contemplates all necessary tests required during a patient’s treatment cycle, which is currently estimated at approximately four tests per patient, including the initial sequence identification test. Revenue recognition commences at the time the initial billable test report is delivered and is based upon cumulative tests delivered to date. Any unrecognized revenue from the initial billable test is recorded as deferred revenue and recognized either as we deliver our estimate of the remaining tests in a patient’s treatment cycle or when the likelihood becomes remote that a patient will receive additional testing. In certain cases, we continue to provide services and incur costs for patients who exceed our number of estimated tests.

Previous wording

Under certain agreements with our biopharmaceutical customers who seek access to our platform to support their therapeutic development activities, revenues are generated from research and development support services that we provide. These agreements may include substantial non-refundable upfront payments, which we recognize over time as we perform the respective services. Revenue recognized from these activities relate to the Genentech Agreement.

Current wording

Under certain agreements with our biopharmaceutical customers who seek access to our platform to support their therapeutic development activities, revenues are generated from research and development support services that we provide. These agreements may include substantial non-refundable upfront payments, which we recognize over time as we perform the respective services. Revenue recognized from these activities include revenue recognized from the Genentech Agreement.

Previous wording

We expect our Immune Medicine revenue to increase in the long term as we or our collaborators advance therapies to commercialization. Our Immune Medicine revenue may fluctuate from period to period due to the timing of expenses incurred, changes in estimates of total anticipated costs related to the Genentech Agreement and other events not within our control, including the recognition of milestones under the Genentech Agreement and the timing of receipt of customer samples from our biopharmaceutical customers.

Current wording

We expect our Immune Medicine revenue to decrease in the short term given the termination of the Genentech Agreement. Our Immune Medicine revenue may fluctuate from period to period due to the timing of receipt of customer samples from our biopharmaceutical customers.

Previous wording

(1) Adjusted EBITDA is a non-GAAP financial measure that we define as net loss attributable to Adaptive Biotechnologies Corporation adjusted for interest and other income, net, interest expense, income tax (expense) benefit, depreciation and amortization expense, impairment costs for long-lived assets, restructuring expense and share-based compensation expense. See “Adjusted EBITDA” below for a reconciliation between Adjusted EBITDA and net loss attributable to Adaptive Biotechnologies Corporation, the most directly comparable GAAP financial measure, and a discussion about the limitations of Adjusted EBITDA.

Current wording

(1) Adjusted EBITDA is a non-GAAP financial measure that we define as net income (loss) attributable to Adaptive Biotechnologies Corporation adjusted for interest and other income, net, interest expense, income tax (expense) benefit, depreciation and amortization expense, impairment costs for long-lived assets, restructuring expense and share-based compensation expense. See “Adjusted EBITDA” below for a reconciliation between Adjusted EBITDA and net income (loss) attributable to Adaptive Biotechnologies Corporation, the most directly comparable GAAP financial measure, and a discussion about the limitations of Adjusted EBITDA.

Previous wording

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 wording

The $19.3 million increase in MRD revenue was primarily due to a $15.4 million increase in revenue generated from providing clonoSEQ to clinical customers, a $1.8 million increase in revenue generated from providing MRD sample testing services to investigator-led clinical trials, a $1.5 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. Our clonoSEQ test volume increased by 38% to 27,111 tests delivered in the three months ended September 30, 2025 from 19,600 tests delivered in the three months ended September 30, 2024.

Previous wording

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 wording

The $28.2 million increase in Immune Medicine revenue was primarily due to a $30.2 million increase in revenue generated from the Genentech Agreement, driven largely by the termination of the Genentech Agreement and the resulting recognition of cash consideration received that was previously classified as deferred revenue, partially offset by a $2.0 million decrease in revenue generated from our biopharmaceutical and academic customers.

Previous 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.

Current wording

The $1.5 million increase in cost of revenue was primarily attributable to a $1.7 million increase in materials cost resulting from increased revenue sample volume, a $0.4 million increase in shipping and handling expenses and a $0.4 million increase related to higher usage of our production laboratory to process revenue samples versus research and development samples. These increases were partially offset by a $1.1 million decrease in cost of materials due primarily to reductions in assay costs, as well as a $0.4 million decrease in overhead costs.

Previous 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.

Current wording

The $0.5 million decrease in research and development expenses was primarily attributable to a $1.2 million decrease in laboratory materials and allocated production laboratory expenses, driven primarily by decreased investments in clonoSEQ and drug discovery efforts, and a $0.8 million decrease in allocable facility expenses. These decreases were partially offset by a $1.1 million increase in software and cloud services expenses and a $0.7 million increase in depreciation and other expenses.

Previous wording

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 wording

The $2.9 million increase in sales and marketing expenses was primarily attributable to a $2.0 million increase in personnel costs, a $0.5 million increase in computer and software expenses and a $0.5 million increase in consulting costs.

Previous wording

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 wording

The $0.7 million increase in general and administrative expenses was primarily attributable to a $0.6 million increase in third-party billing service fees, a $0.4 million increase in legal fees and a $0.3 million increase in computer and software expenses. These increases were partially offset by a $0.5 million decrease in personnel costs and a $0.3 million decrease in building, facility and depreciation related expenses.

Previous 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.

Current wording

The $1.2 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 $0.3 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.

Current wording

The nominal 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 $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 wording

The $13.1 million reduction in MRD Adjusted EBITDA deficit was primarily attributable to a $19.3 million increase in MRD revenue, partially offset by an increase in operating expenses, excluding those identified as reconciling items between segment net loss and segment adjusted EBITDA. The increase in these operating expenses relates primarily to sales and marketing activities.

Previous wording

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 wording

The $28.9 million reduction in Immune Medicine Adjusted EBITDA deficit was primarily attributable to a $28.2 million increase in Immune Medicine revenue, which was driven largely by revenue generated due to the termination of the Genentech Agreement.

Previous 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.

Current wording

The $45.1 million increase in MRD revenue was primarily due to a $37.3 million increase in revenue generated from providing clonoSEQ to clinical customers, a $4.0 million increase in revenue recognized upon the achievement of regulatory milestones by certain of our biopharmaceutical customers, a $1.8 million increase in revenue generated from providing MRD sample testing services to biopharmaceutical customers and a $1.6 million increase in revenue generated from providing MRD sample testing services to investigator-led clinical trials. Our clonoSEQ test volume increased by 37% to 75,549 tests delivered in the nine months ended September 30, 2025 from 55,160 tests delivered in the nine months ended September 30, 2024.

Previous 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.

Current wording

The $28.7 million increase in Immune Medicine revenue was primarily due to a $31.3 million increase in revenue generated from the Genentech Agreement, driven largely by the termination of the Genentech Agreement and the resulting recognition of cash consideration received that was previously classified as deferred revenue, partially offset by a $2.6 million decrease in revenue generated from our biopharmaceutical and academic customers.

Previous wording

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 wording

The $0.9 million decrease in cost of revenue was primarily attributable to a $3.8 million decrease in cost of materials due primarily to reductions in inventory reserve expense and assay costs and a $3.0 million decrease in overhead costs, which was largely driven by consolidation activities. These decreases were partially offset by a $3.0 million increase in materials cost resulting from increased revenue sample volume, a $1.2 million increase related to higher usage of our production laboratory to process revenue samples versus research and development samples and a $1.0 million increase in shipping and handling expenses.

Previous wording

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 wording

The $7.8 million decrease in research and development expenses was primarily attributable to a $5.9 million decrease in personnel costs, a $2.6 million decrease in allocable facility expenses and a $2.0 million decrease in laboratory materials and allocated production laboratory expenses, which was driven primarily by decreased investments in drug discovery and clonoSEQ efforts. These decreases were partially offset by a $1.4 million increase in depreciation and other expenses and a $1.3 million increase in software and cloud services expenses.

Previous 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.

Current wording

The $6.9 million increase in sales and marketing expenses was primarily attributable to a $4.2 million increase in personnel costs, a $1.3 million increase in consulting costs, a $1.1 million increase in computer and software expenses, a $0.8 million increase in allocated facility and overhead expenses and a $0.4 million increase in travel and customer event related expenses. These increases were partially offset by a $1.1 million decrease in marketing expenses, driven largely by reduced clonoSEQ and corporate marketing activities.

Previous 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.

Current wording

The $1.6 million decrease in general and administrative expenses was primarily attributable to a $2.9 million decrease in personnel costs, a $0.8 million decrease in building, facility and depreciation related expenses and a $0.5 million decrease in accounting and tax fees. These decreases were partially offset by a $1.1 million increase in third-party billing service fees, a $1.1 million increase in legal fees and a $0.4 million increase in consulting costs.

Previous wording

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 wording

The $4.2 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 $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.

Current wording

The $31.4 million reduction in Immune Medicine Adjusted EBITDA deficit was primarily attributable to a $28.7 million increase in Immune Medicine revenue, which was driven largely by revenue generated due to the termination of the Genentech Agreement, and a reduction in operating expenses, excluding those identified as reconciling items between segment net loss and segment adjusted EBITDA. The primary drivers of the operating expense reduction relate to cost of revenue and research and development activities.

Previous wording

Adjusted EBITDA is a non-GAAP financial measure that we define as net loss attributable to Adaptive Biotechnologies Corporation adjusted for interest and other income, net, interest expense, income tax (expense) benefit, depreciation and amortization expense, impairment costs for long-lived assets, restructuring expense and share-based compensation expense. We define our segment Adjusted EBITDA in the same way to the extent the net loss attributable to Adaptive Biotechnologies Corporation and adjustments are allocable to each segment. See Note 14, Segment Informationof the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report for more information regarding segment Adjusted EBITDA.

Current wording

Adjusted EBITDA is a non-GAAP financial measure that we define as net income (loss) attributable to Adaptive Biotechnologies Corporation adjusted for interest and other income, net, interest expense, income tax (expense) benefit, depreciation and amortization expense, impairment costs for long-lived assets, restructuring expense and share-based compensation expense. We define our segment Adjusted EBITDA in the same way to the extent the net income (loss) attributable to Adaptive Biotechnologies Corporation and adjustments are allocable to each segment. See Note 14, Segment Informationof the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report for more information regarding segment Adjusted EBITDA.

Previous wording

The following is a reconciliation of net loss attributable to Adaptive Biotechnologies Corporation, the most directly comparable GAAP financial measure, to Adjusted EBITDA for the periods presented (in thousands):

Current wording

The following is a reconciliation of net income (loss) attributable to Adaptive Biotechnologies Corporation, the most directly comparable GAAP financial measure, to Adjusted EBITDA for the periods presented (in thousands):

Previous 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.

Current wording

We have incurred losses since inception, apart from the three month period ended September 30, 2025, and have incurred negative cash flows from operations since inception through September 30, 2025, with the exception of certain 2019 periods for which we had positive cash flows from operations. As of September 30, 2025, we had an accumulated deficit of $1.3 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 June 30, 2025, we had cash, cash equivalents and marketable securities of $222.0 million.

Current wording

We have funded our operations to date principally from the sale of convertible preferred stock and common stock, revenue and the 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 September 30, 2025, we had cash, cash equivalents and marketable securities of $216.8 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, corporate bonds and commercial paper.

Current wording

We plan to utilize the existing cash, cash equivalents and marketable securities on hand primarily to fund both our commercial and marketing activities associated with clonoSEQ 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

While we may experience variability in revenue in the near term, over the long-term we expect revenue from our current and future products and services to grow. Accordingly, we expect our accounts receivable and inventory balances to increase. Our levels of accounts receivable may fluctuate relative to our revenue for a number of reasons, including the timing of milestone triggers and related payment of those milestones, as well as reductions in revenue derived from the upfront payment received under the Genentech Agreement and an increase in revenue generated from clinical customers, which may result in more billings in arrears as opposed to upfront payments. Any increase in accounts receivable and inventory may not be completely offset by increases in accounts payable and accrued expenses, which could result in greater working capital requirements.

Current wording

While we may experience variability in revenue in the near term, over the long-term we expect revenue from our current and future products and services to grow. Accordingly, we expect our accounts receivable and inventory balances to increase. Our levels of accounts receivable may fluctuate relative to our revenue for a number of reasons, including the timing of milestone triggers and related payment of those milestones and an increase in revenue generated from clinical customers, which may result in more billings in arrears as opposed to upfront payments. Any increase in accounts receivable and inventory may not be completely offset by increases in accounts payable and accrued expenses, which could result in greater working capital requirements.

Previous wording

The following table summarizes our uses and sources of cash for the six months ended June 30, 2025 and 2024 (in thousands):

Current wording

The following table summarizes our uses and sources of cash for the nine months ended September 30, 2025 and 2024 (in thousands):

Previous wording

Net cash used in operating activities was primarily comprised of net loss, as adjusted for noncash items, and changes in operating assets and liabilities. Noncash adjustments consist primarily of share-based compensation, depreciation and amortization and noncash lease expense.

Current wording

Net cash used in operating activities was primarily comprised of changes in operating assets and liabilities and net loss, as adjusted for noncash items. Noncash adjustments consist primarily of share-based compensation, depreciation and amortization and noncash lease expense.

Previous 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.

Current wording

Net cash used in operating activities was $48.0 million as compared to $82.7 million for the nine months ended September 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 $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.

Current wording

Net cash provided by investing activities was $46.2 million as compared to $55.7 million for the nine months ended September 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 a reduction in purchases of marketable securities and property and equipment.

Previous 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.

Current wording

Cash provided by financing activities was $8.7 million as compared to $0.1 million for the nine months ended September 30, 2025 and 2024, respectively. The increase in cash provided by financing activities was due to an increase in proceeds from the exercise of stock options.