Adaptive Biotechnologies Corp
For the period ended Jun 30, 2026. Filed Aug 4, 2026.
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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, 2026 · Filed Aug 4, 2026
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 2026-03-31; filed 2026-05-05.
0001193125-26-206546
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-04.
0001193125-26-332940
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 79 previous paragraphs and 98 current paragraphs.
47 unchanged; 29 reworded; 14 added; 2 removed; 1 previous and 8 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 (14)
Current report
Recent Developments
Current report
In June 2026, we announced our intention to pursue a separation of our Immune Medicine and MRD businesses, with the intent to identify our preferred path of separation by year-end 2026. Additionally, in July 2026, we decided to wind down our research-use-only pharma services offering for T-cell receptor sequencing, or Adaptive Immunosequencing. The change will enable the Immune Medicine business to focus on our proprietary TCR-antigen dataset, our artificial intelligence and machine learning digital models and our target discovery platform for autoimmune disease.
Current report
Also in June 2026, we issued $345.0 million in aggregate principal amount of Notes and used $25.6 million of the proceeds to enter into privately negotiated capped call transactions. The capped call transactions are generally expected to reduce the potential dilution to our common stock upon any conversion of the Notes and/or offset any potential cash payments we are required to make in excess of the principal amount of converted Notes, as the case may be, with such reduction and/or offset subject to a cap. We also used $156.9 million of the proceeds to extinguish our revenue interest liability under the Purchase Agreement and $25.0 million to repurchase 1,451,800 shares of our common stock.
Current report
Loss on revenue interest liability extinguishment represents the loss recognized in connection with our early settlement of the revenue interest liability under the Purchase Agreement.
Current report
The $2.8 million increase in sales and marketing expenses was primarily attributable to a $1.3 million increase in personnel costs, a $0.7 million increase in computer and software expenses, a $0.4 million increase in consulting costs and a $0.3 million increase in travel and customer event related expenses.
Current report
The $0.3 million decrease in interest expense was primarily attributable to the early settlement of our revenue interest liability under the Purchase Agreement.
Current report
The $23.7 million increase in loss on revenue interest liability extinguishment represents the loss incurred in June 2026 in connection with our early settlement of the revenue interest liability under the Purchase Agreement.
Current report
The $7.2 million improvement in MRD Adjusted EBITDA was primarily attributable to a $16.2 million increase in MRD revenue, partially offset by a $9.0 million increase in operating expenses, excluding segment non-cash and restructuring expenses. The increase in these operating expenses was primarily due to a $3.4 million increase in general and administrative expenses driven largely by increased legal expenses, third-party billing service fees and computer and software expenses, a $2.8 million increase in sales and marketing expenses driven primarily by increased market access and personnel expenses and a $2.5 million increase in cost of revenue expenses driven largely by increased testing volumes.
Current report
The $7.0 million increase in general and administrative expenses was primarily attributable to a $2.1 million increase in personnel costs, a $1.7 million increase in third-party billing service fees, a $1.6 million increase in legal expenses and a $1.5 million increase in computer and software expenses.
Current report
The $0.3 million decrease in interest expense was primarily attributable to the early settlement of our revenue interest liability under the Purchase Agreement.
Current report
The $23.7 million increase in loss on revenue interest liability extinguishment represents the loss incurred in June 2026 in connection with our early settlement of the revenue interest liability under the Purchase Agreement.
Current report
The $23.5 million improvement in MRD Adjusted EBITDA was primarily attributable to a $39.6 million increase in MRD revenue, partially offset by a $16.1 million increase in operating expenses, excluding segment non-cash and restructuring expenses. The increase in these operating expenses was primarily due to a $5.9 million increase in sales and marketing expenses driven primarily by increased market access and personnel expenses, a $5.8 million increase in general and administrative expenses driven largely by increased legal expenses, third-party billing service fees and computer and software expenses and a $3.9 million increase in cost of revenue expenses driven largely by increased testing volumes.
Current report
The $5.8 million increase in Immune Medicine Adjusted EBITDA deficit was primarily attributable to an $8.5 million decrease in Immune Medicine revenue, resulting largely from the termination of the Genentech Agreement in August 2025, partially offset by a $2.7 million decrease in operating expenses, excluding segment non-cash and restructuring expenses. The decrease in these operating expenses was primarily due to a decrease in research and development expenses driven largely by reduced personnel and laboratory materials costs.
Current report
(4) Represents the loss recognized in connection with our early settlement of the Purchase Agreement.
Removed paragraphs (2)
Previous report
The nominal decrease in interest expense was attributable to a change in our assumptions regarding the timeframe in which our Purchase Agreement will be fully repaid.
Previous report
The $16.2 million improvement in MRD Adjusted EBITDA was primarily attributable to a $23.4 million increase in MRD revenue, partially offset by an increase in operating expenses, excluding those identified as reconciling items between segment net income and segment net loss, respectively, and segment Adjusted EBITDA. The increase in these operating expenses relates primarily to sales and marketing and general and administrative activities.
Reworded paragraphs (29)
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 separately updated the clonoSEQ episode pricing to $8,029 for all covered indications. This represented a 17% increase from the previous episode price. 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, Inc.’s OncoEMR®, of numerous accounts.
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 separately updated the clonoSEQ episode pricing to $8,029 for all covered indications. This represented a 17% increase from the previous episode price. 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 Systems Corporation’s Aura and Flatiron Health, Inc.’s OncoEMR®, of numerous accounts.
Previous wording
We recognized revenue of $70.9 million and $52.4 million for the three months ended March 31, 2026 and 2025, respectively. Net loss attributable to Adaptive Biotechnologies Corporation was $20.0 million and $29.9 million for the three months ended March 31, 2026 and 2025, 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 received from the revenue interest purchase agreement we entered into in September 2022 (the “Purchase Agreement”). As of March 31, 2026 and December 31, 2025, we had cash, cash equivalents and marketable securities of $237.2 million and $240.2 million, respectively. These balances include $15.3 million and $13.1 million of cash and cash equivalents held by Digital Biotechnologies, Inc., respectively.
Current wording
We recognized revenue of $71.6 million and $58.9 million for the three months ended June 30, 2026 and 2025, respectively, and $142.4 million and $111.3 million for the six months ended June 30, 2026 and 2025, respectively. Net loss attributable to Adaptive Biotechnologies Corporation was $39.8 million and $25.6 million for the three months ended June 30, 2026 and 2025, respectively, and $59.8 million and $55.5 million for the six months ended June 30, 2026 and 2025, 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, proceeds received from the revenue interest purchase agreement entered into in September 2022 (the “Purchase Agreement”) and proceeds received from the June 2026 issuance of 0% convertible senior notes due 2031 (the “Notes”). As of June 30, 2026 and December 31, 2025, we had cash, cash equivalents and marketable securities of $371.7 million and $240.2 million, respectively. These balances include $15.1 million and $13.1 million of cash and cash equivalents held by Digital Biotechnologies, Inc., 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 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; (2) data licensing and target discovery services; and (3) for periods prior to October 1, 2025, our former collaboration with Genentech, Inc. (“Genentech”) under the worldwide collaboration and license agreement with Genentech (the “Genentech Agreement”).
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; (2) data licensing and target discovery services; and (3) for periods prior to October 1, 2025, our former collaboration with Genentech, Inc. (“Genentech”) under the worldwide collaboration and license agreement with Genentech (the “Genentech Agreement”).
Previous wording
We expect our Immune Medicine revenue to increase in the short term. Our Immune Medicine revenue may fluctuate from period to period due to the timing of receipt of customer samples from our biopharmaceutical customers and the potential recognition of milestones under our target discovery agreement.
Current wording
We expect our Immune Medicine revenue to decrease in the short term as we wind down Adaptive Immunosequencing services over the second half of 2026 and focus on target discovery business development efforts. Following the wind down of Adaptive Immunosequencing services, our Immune Medicine revenue may fluctuate from period to period due to the potential recognition of milestones under our target discovery agreement and any future licensing agreements.
Previous wording
We expect general and administrative expenses to moderately decrease in the short term and to decrease as a percentage of revenue in the long term.
Current wording
We expect general and administrative expenses to moderately increase in the short term and to decrease as a percentage of revenue in the long term.
Previous wording
Interest expense includes costs associated with our revenue interest liability related to the Purchase Agreement and noncash interest costs associated with the amortization of the related deferred issuance costs. We impute interest expense using the effective interest rate method. We calculate an effective interest rate which will amortize our related obligation to zero over the anticipated repayment period. A significant increase or decrease in or changes in timing of forecasted revenue will prospectively impact our interest expense.
Current wording
Interest expense includes costs associated with our now settled revenue interest liability and the noncash interest costs associated with the full amortization of deferred issuance costs related to the Purchase Agreement, as well as the amortization of deferred costs related to issuance of the Notes. We impute interest expense using the effective interest method.
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 loss attributable to Adaptive Biotechnologies Corporation adjusted for interest and other income, net, interest expense, income tax (expense) benefit, depreciation and amortization expense, impairment costs for long-lived assets, restructuring expense, share-based compensation expense and revenue interest liability extinguishment loss. 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.
Previous wording
The $1.7 million increase in cost of revenue was primarily attributable to a $0.9 million increase in shipping and handling expenses and a $0.7 million increase in labor and overhead costs.
Current wording
The $2.2 million increase in cost of revenue was primarily attributable to a $1.1 million increase in labor and overhead costs and a $0.8 million increase in shipping and handling expenses.
Previous wording
The $0.6 million decrease in research and development expenses was primarily attributable to a $1.0 million decrease in depreciation and other expenses and a $0.6 million decrease in laboratory materials and allocated production laboratory expenses, which was driven primarily by decreased investments in clonoSEQ efforts. These decreases were partially offset by a $0.7 million increase in software and cloud services expenses and a $0.4 million increase in personnel costs.
Current wording
The $5.0 million decrease in research and development expenses was primarily attributable to a $2.2 million decrease in personnel costs, a $1.9 million decrease in depreciation and other expenses, a $1.3 million decrease in laboratory materials and allocated production laboratory expenses, which was driven primarily by decreased investments in drug discovery and clonoSEQ efforts, and a $0.5 million decrease in allocable facility expenses. These decreases were partially offset by a $0.8 million increase in software and cloud services expenses.
Previous wording
The $3.6 million increase in general and administrative expenses was primarily attributable to a $1.7 million increase in personnel costs, a $0.9 million increase in computer and software expenses and a $0.8 million increase in third-party billing service fees.
Current wording
The $3.4 million increase in general and administrative expenses was primarily attributable to a $1.3 million increase in legal expenses, $0.8 million increase in third-party billing service fees, a $0.5 million increase in computer and software expenses and a $0.4 million increase in personnel costs.
Previous wording
The $5.3 million increase in Immune Medicine Adjusted EBITDA deficit was primarily attributable to a $4.9 million decrease in Immune Medicine revenue, resulting largely from the termination of the Genentech Agreement in August 2025.
Current wording
The $0.5 million increase in Immune Medicine Adjusted EBITDA deficit was primarily attributable to a $3.6 million decrease in Immune Medicine revenue, resulting largely from the termination of the Genentech Agreement in August 2025, partially offset by a $3.1 million decrease in operating expenses, excluding segment non-cash and restructuring expenses. The decrease in these operating expenses was primarily due to a decrease in research and development expenses driven largely by reduced personnel and laboratory materials costs.
Previous wording
The $23.4 million increase in MRD revenue was primarily due to a $15.8 million increase in revenue generated from providing clonoSEQ to clinical customers, a $4.5 million increase in revenue recognized upon the achievement of regulatory milestones by certain of our biopharmaceutical customers and a $3.5 million increase in revenue generated from providing MRD sample testing services to biopharmaceutical customers, partially offset by a $0.6 million decrease in revenue generated from providing MRD sample testing services to investigator-led clinical trials. Our clonoSEQ test volume increased by 41% to 32,595 tests delivered in the three months ended March 31, 2026 from 23,117 tests delivered in the three months ended March 31, 2025.
Current wording
The $39.6 million increase in MRD revenue was primarily due to a $32.9 million increase in revenue generated from providing clonoSEQ to clinical customers and an $8.0 million increase in revenue generated from providing MRD sample testing services to biopharmaceutical customers. These increases were partially offset by a $1.0 million decrease in revenue recognized upon the achievement of regulatory milestones by our biopharmaceutical customers and a $0.6 million decrease in revenue generated from providing MRD sample testing services to investigator-led clinical trials. Our clonoSEQ test volume increased by 42% to 68,706 delivered in the six months ended June 30, 2026 from 48,438 tests delivered in the six months ended June 30, 2025.
Previous wording
The $4.9 million decrease in Immune Medicine revenue was primarily due to a $3.6 million decrease in revenue generated from the Genentech Agreement, resulting from the termination of the Genentech Agreement in August 2025, and a $1.3 million decrease in sample testing revenue generated from our biopharmaceutical and academic customers.
Current wording
The $8.5 million decrease in Immune Medicine revenue was primarily due to a $7.5 million decrease in revenue generated from the Genentech Agreement, resulting from the termination of the Genentech Agreement in August 2025, and a $1.0 million decrease in revenue generated from our biopharmaceutical and academic customers.
Previous wording
The $3.3 million increase in sales and marketing expenses was primarily attributable to a $1.8 million increase in personnel costs, a $0.8 million increase in travel and customer event related expenses and a $0.5 million increase in computer and software expenses.
Current wording
The $6.1 million increase in sales and marketing expenses was primarily attributable to a $3.1 million increase in personnel costs, a $1.1 million increase in travel and customer event related expenses, a $1.1 million increase in computer and software expenses and a $0.5 million increase in consulting costs.
Previous wording
The $0.6 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 $0.7 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
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 13, 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 loss attributable to Adaptive Biotechnologies Corporation adjusted for interest and other income, net, interest expense, income tax (expense) benefit, depreciation and amortization expense, impairment costs for long-lived assets, restructuring expense, share-based compensation expense and revenue interest liability extinguishment loss. We define our segment Adjusted EBITDA in the same way to the extent the net loss attributable to Adaptive Biotechnologies Corporation and adjustments are allocable to each segment. 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
Management uses Adjusted EBITDA, including segment Adjusted EBITDA, to evaluate the financial performance of our business and segments and to evaluate the effectiveness of our strategies. We present these figures because we believe it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry and it facilitates comparisons on a consistent basis across reporting periods. Further, we believe it is helpful in highlighting trends in our operating results because it excludes items that are not indicative of our core operating performance.
Current wording
Management uses Adjusted EBITDA, including segment Adjusted EBITDA, to evaluate the financial performance of our business and segments and to evaluate the effectiveness of our strategies. We present these figures because we believe they are frequently used by analysts, investors and other interested parties to evaluate companies in our industry and they facilitate comparisons on a consistent basis across reporting periods. Further, we believe it is helpful in highlighting trends in our operating results because it excludes items that are not indicative of our core operating performance.
Previous wording
interest expense, which is an ongoing element of our costs to operate;
Current wording
interest income and interest expense, which is an ongoing element of our costs to operate;
Previous wording
the impact of earnings or charges resulting from matters we consider not to be reflective, on a recurring basis, of our ongoing operations, such as our restructuring activities and reductions in workforce.
Current wording
the impact of earnings or charges resulting from matters we consider not to be reflective, on a recurring basis, of our ongoing operations, such as our restructuring activities, reductions in workforce and our revenue interest liability extinguishment loss.
Previous wording
(1)Represents costs associated with our revenue interest liability and noncash interest costs associated with the amortization of the related deferred issuance costs. See Note 8, Revenue Interest Purchase Agreementof the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report for details on the Purchase Agreement.
Current wording
(1)Represents costs associated with our now settled revenue interest liability and the noncash interest costs associated with the full amortization of deferred issuance costs related to the Purchase Agreement, as well as the amortization of deferred costs related to issuance of the Notes. See Note 9, Revenue Interest Purchase Agreementand Note 8, Convertible Senior Notes and Capped Call Transactionsof the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report for details on interest expense.
Previous wording
We have funded our operations to date principally from the sale of convertible preferred stock and common stock, revenue and the proceeds received 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. As of March 31, 2026, we had cash, cash equivalents and marketable securities of $221.9 million, excluding $15.3 million of cash and cash equivalents held by Digital Biotechnologies, Inc.
Current wording
We have funded our operations to date principally from the sale of convertible preferred stock and common stock, revenue, proceeds received from the Purchase Agreement and proceeds received from the Notes offering. Pursuant to the Purchase Agreement entered into in September 2022, we received net cash proceeds of $124.4 million, after deducting issuance costs. In June 2026, we issued the Notes, whereby we received net cash proceeds of $128.0 million, after deducting issuance costs paid, costs to extinguish our revenue interest liability under the Purchase Agreement, fees paid for the capped call transactions and costs to repurchase 1,451,800 shares of our common stock. As of June 30, 2026, we had cash, cash equivalents and marketable securities of $356.7 million, excluding $15.1 million of cash and cash equivalents held by Digital Biotechnologies, Inc.
Previous wording
We plan to utilize the existing cash, cash equivalents and marketable securities on hand primarily to fund our commercial and assay development initiatives associated with clonoSEQ, our continued research and development initiatives related to mapping TCRs to antigens and the advancement of our target discovery capabilities. 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 and agency 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 our commercial and assay development initiatives associated with clonoSEQ, our continued research and development initiatives related to mapping TCRs to antigens and the advancement of our target discovery capabilities. 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 and agency securities, commercial paper and corporate bonds.
Previous wording
See Note 7, Leasesand Note 8, Revenue Interest Purchase Agreementof the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report for more information regarding our contractual obligations relating to lease agreements and the Purchase Agreement, respectively.
Current wording
In June 2026, we issued $345.0 million in aggregate principal amount of Notes. We used a portion of the proceeds from the Notes offering to extinguish our revenue interest liability under the Purchase Agreement. See Note 7, Leases, Note 8, Convertible Senior Notes and Capped Call Transactions and Note 9, Revenue Interest Purchase Agreementof the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report for more information regarding our contractual obligations relating to lease agreements, the Notes and the settlement of our obligations under the Purchase Agreement, respectively.
Previous wording
There have been no material changes outside the ordinary course of business to our contractual obligations and commitments as previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “Annual Report”) filed with the SEC on February 26, 2026.
Current wording
There have been no other material changes outside the ordinary course of business to our contractual obligations and commitments as previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “Annual Report”) filed with the SEC on February 26, 2026.
Previous wording
The following table summarizes our uses and sources of cash for the three months ended March 31, 2026 and 2025 (in thousands):
Current wording
The following table summarizes our uses and sources of cash for the six months ended June 30, 2026 and 2025 (in thousands):
Previous 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.
Current 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 the loss recognized upon our early settlement of the Purchase Agreement and share-based compensation.
Previous wording
Net cash used in operating activities was $9.5 million as compared to $28.5 million for the three months ended March 31, 2026 and 2025, 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 $15.9 million as compared to $40.9 million for the six months ended June 30, 2026 and 2025, respectively. The decrease in net cash used in operating activities was primarily driven by an increase in customer collections, partially offset by an increase in interest payments.
Previous wording
Net cash provided by investing activities was $9.1 million as compared to $25.6 million for the three months ended March 31, 2026 and 2025, 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.
Current wording
Net cash used in investing activities was $34.3 million as compared to $28.9 million net cash provided by investing activities for the six months ended June 30, 2026 and 2025, respectively. The increase in net cash used in investing activities was primarily due to a decrease in proceeds from maturities of marketable securities and an increase in purchases of marketable securities.
Previous wording
Cash provided by financing activities was $7.5 million as compared to $5.5 million for the three months ended March 31, 2026 and 2025, respectively. The increase in cash provided by financing activities was primarily due to proceeds received from Digital Biotechnologies, Inc.’s Series A Preferred Stock financing, partially offset by a decrease in proceeds from the exercise of stock options.
Current wording
Net cash provided by financing activities was $149.7 million as compared to $7.1 million for the six months ended June 30, 2026 and 2025, respectively. The increase in net cash provided by financing activities was primarily due to proceeds received from the Notes, an increase in proceeds from the exercise of stock options and proceeds received from Digital Biotechnologies, Inc.’s Series A Preferred Stock financing, partially offset by the revenue interest liability extinguishment, the purchase of capped calls and the repurchase of our common stock.
Rearranged current paragraphs (8)
Current report — wording carried from elsewhere
The $16.2 million increase in MRD revenue was primarily due to a $17.0 million increase in revenue generated from providing clonoSEQ to clinical customers and a $4.5 million increase in revenue generated from providing MRD sample testing services to biopharmaceutical customers. These increases were partially offset by a $5.5 million decrease in revenue recognized upon the achievement of regulatory milestones by our biopharmaceutical customers. Our clonoSEQ test volume increased by 43% to 36,111 tests delivered in the three months ended June 30, 2026 from 25,321 tests delivered in the three months ended June 30, 2025.
Current report — wording carried from elsewhere
The $3.6 million decrease in Immune Medicine revenue was primarily due to a $3.9 million decrease in revenue generated from the Genentech Agreement, resulting from the termination of the Genentech Agreement in August 2025, partially offset by a $0.4 million increase in revenue generated from our biopharmaceutical and academic customers.
Current report — wording carried from elsewhere
The $0.1 million decrease in interest and other income, net was primarily attributable to a nominal decrease in net interest income and investment amortization.
Current report — wording carried from elsewhere
The $3.9 million increase in cost of revenue was primarily attributable to a $1.8 million increase in labor and overhead costs, a $1.7 million increase in shipping and handling expenses and a $0.2 million increase in cost of materials.
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 $5.6 million decrease in research and development expenses was primarily attributable to a $2.8 million decrease in depreciation and other expenses, a $1.9 million decrease in laboratory materials and allocated production laboratory expenses, which was driven primarily by decreased investments in clonoSEQ and drug discovery efforts, a $1.7 million decrease in personnel costs and a $0.5 million decrease in allocable facility expenses. These decreases were partially offset by a $1.4 million increase in software and cloud services expenses.
Current report — wording carried from elsewhere
(1)Costs related to Digital Biotechnologies, Inc. are no longer included as Immune Medicine costs and have been reclassified to our unallocated corporate category.
Current report — wording carried from elsewhere
(2)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.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
imputing interest for the Purchase Agreement;