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 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.

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 (“MM”), 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. During the third quarter of 2026, the National Comprehensive Cancer Network® Guidelines for MM were updated, strengthening MRD testing recommendations and specifically referencing clonoSEQ. Separately, on behalf of the International Myeloma Society and International Myeloma Working Group, global experts presented a new consensus definition of cure for MM, which includes at least four MRD assessments over a five-year treatment-free period, and requires sustained MRD negativity at 10-6 sensitivity. 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 the electronic medical record systems, including Epic Systems Corporation’s Aura and Flatiron Health, Inc.’s OncoEMR®, of numerous accounts.

Previous wording

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 wording

Immune Medicine leverages our proprietary ability to sequence, map, pair and characterize T cell receptors (“TCRs”) and B cell receptors at scale to drive opportunities in cancer and autoimmune disorders. In June 2026, we announced plans to pursue a separation of our MRD and Immune Medicine businesses, which remains ongoing. Following any such separation, Harlan Robins, our co-founder, former Chief Scientific Officer and brother of Chief Executive Officer Chad Robins, may hold a meaningful role in the Immune Medicine business. In July 2026, we decided to wind down our research-use-only pharma services offering for TCR sequencing, or Adaptive Immunosequencing. This change enables 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.

Previous 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.

Current wording

We recognized revenue of $83.9 million and $94.0 million for the three months ended September 30, 2026 and 2025, respectively, and $226.3 million and $205.3 million for the nine months ended September 30, 2026 and 2025, respectively. Net income attributable to Adaptive Biotechnologies Corporation was $2.9 million and $9.5 million for the three months ended September 30, 2026 and 2025, respectively. Net loss attributable to Adaptive Biotechnologies Corporation was $56.9 million and $45.9 million for the nine months ended September 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 September 30, 2026 and December 31, 2025, we had cash, cash equivalents and marketable securities of $400.2 million and $240.2 million, respectively. These balances include $13.8 million and $13.1 million of cash and cash equivalents held by Digital Biotechnologies, Inc., respectively.

Previous wording

For our target discovery agreement, we received an initial upfront payment and rights to additional consideration upon the delivery of completed disease-specific TCRs pursuant to a research plan. We identified two distinct performance obligations: (1) to provide Adaptive Immunosequencing services for customer provided specimens; and (2) the delivery of the disease-specific TCRs with the associated license rights. The consideration allocated to each of the respective performance obligations is recognized as revenue upon the delivery of the respective datasets. If the customer elects to further develop therapeutics, we may be eligible to receive additional development, commercial and sales milestone payments that could total up to $877.5 million. All such development, commercial and sales‑based milestone payments are fully constrained until the underlying triggering events occur. The customer is solely responsible for any subsequent development costs following the conclusion of the research plan.

Current wording

For our target discovery agreement, we received an initial upfront payment and rights to additional consideration upon the delivery of completed disease-specific TCRs pursuant to a research plan. We identified two distinct performance obligations: (1) to provide Adaptive Immunosequencing services for customer-provided specimens; and (2) the delivery of the disease-specific TCRs with the associated license rights, which took place during the three months ended September 30, 2026. The consideration allocated to each of the respective performance obligations is recognized as Immune Medicine service and licensing revenue upon the delivery of the respective datasets. If the customer elects to further develop therapeutics, we may be eligible to receive additional development, commercial and sales milestone payments that could total up to $877.5 million. All such development, commercial and sales‑based milestone payments are fully constrained until the underlying triggering events occur. The customer is solely responsible for any subsequent development costs following the conclusion of the research plan.

Previous 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.

Current wording

We expect our Immune Medicine revenue to decrease in the short term as we continue to wind down Adaptive Immunosequencing services and focus on target discovery business development efforts. Our Immune Medicine revenue may also 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 research and development expenses to moderately 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 be relatively stable 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

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.

Current wording

Interest expense includes the amortization of deferred costs related to issuance of the Notes, and, for periods prior to the third quarter of 2026, costs associated with our now settled revenue interest liability and the noncash interest costs associated with the amortization of deferred issuance costs related to the Purchase Agreement. 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, 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.

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, share-based compensation expense and revenue interest liability extinguishment loss. 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 $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.

Current wording

The $15.8 million increase in MRD revenue was primarily due to a $17.8 million increase in revenue generated from providing clonoSEQ to clinical customers and a $6.5 million increase in revenue generated from providing MRD sample testing services to biopharmaceutical customers. These increases were partially offset by a $6.5 million decrease in revenue recognized upon the achievement of regulatory milestones by our biopharmaceutical customers and a $2.2 million decrease in revenue generated from providing MRD sample testing services to investigator-led clinical trials. Our clonoSEQ test volume increased by 46% to 39,587 tests delivered in the three months ended September 30, 2026 from 27,111 tests delivered in the three months ended September 30, 2025.

Previous wording

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 wording

The $25.8 million decrease in Immune Medicine revenue was primarily due to a $33.7 million decrease in revenue generated from the Genentech Agreement, resulting from the termination of the Genentech Agreement in August 2025, and a $1.1 million decrease in revenue generated from our immunosequencing services. These decreases were partially offset by a $9.0 million increase in revenue generated from our target discovery agreement.

Previous wording

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 wording

The $1.8 million increase in cost of revenue was primarily attributable to a $0.7 million increase in labor and overhead costs, a $0.7 million increase in cost of materials and a $0.6 million increase in shipping and handling expenses.

Previous 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.

Current wording

The $5.0 million decrease in research and development expenses was primarily attributable to a $2.6 million decrease in personnel costs, a $1.3 million decrease in depreciation and other expenses, a $0.4 million decrease in laboratory materials and allocated production laboratory expenses, which was driven primarily by decreased investments in our broad platform, a $0.4 million decrease in allocable facility expenses and a $0.4 million decrease in software and cloud services expenses.

Previous wording

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 wording

The $3.4 million increase in sales and marketing expenses was primarily attributable to a $1.7 million increase in personnel costs, a $1.0 million increase in computer and software expenses, a $0.5 million increase in consulting costs and a $0.4 million increase in travel and customer event related expenses.

Previous 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.

Current wording

The $0.5 million increase in general and administrative expenses was primarily attributable to a $0.6 million increase in personnel costs and a $0.4 million increase in accounting and legal expenses. These increases were partially offset by a $0.5 million decrease in third-party billing service fees.

Previous 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.

Current wording

The $1.5 million increase in interest and other income, net was primarily attributable to an increase in net interest income and investment amortization driven by increased holdings of and interest rates pertaining to our cash, cash equivalents and marketable securities.

Previous wording

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 wording

The $2.5 million decrease in interest expense was primarily attributable to the early settlement of our revenue interest liability under the Purchase Agreement, partially offset by amortization of deferred costs related to issuance of the Notes.

Previous wording

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 wording

The $8.2 million improvement in MRD Adjusted EBITDA was primarily attributable to a $15.8 million increase in MRD revenue, partially offset by a $7.6 million increase in operating expenses, excluding segment non-cash expenses. The increase in these operating expenses was primarily due to a $3.9 million increase in sales and marketing expenses primarily driven by increased personnel costs and electronic medical record software expenses, a $1.9 million increase in cost of revenue expenses driven largely by increased testing volumes and related shipping expenses and a $1.0 million increase in general and administrative expenses driven largely by increased personnel costs.

Previous wording

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 wording

The $20.9 million decrease in Immune Medicine Adjusted EBITDA was primarily attributable to a $25.8 million decrease in Immune Medicine revenue, resulting largely from the termination of the Genentech Agreement in August 2025, partially offset by a $5.0 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 expenses, facility-related expenses and laboratory, material and depreciation costs.

Previous wording

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 wording

The $55.4 million increase in MRD revenue was primarily due to a $50.7 million increase in revenue generated from providing clonoSEQ to clinical customers and a $14.6 million increase in revenue generated from providing MRD sample testing services to biopharmaceutical customers. These increases were partially offset by a $7.5 million decrease in revenue recognized upon the achievement of regulatory milestones by our biopharmaceutical customers and a $2.8 million decrease in revenue generated from providing MRD sample testing services to investigator-led clinical trials. Our clonoSEQ test volume increased by 43% to 108,293 tests delivered in the nine months ended September 30, 2026 from 75,549 tests delivered in the nine months ended September 30, 2025.

Previous 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.

Current wording

The $34.3 million decrease in Immune Medicine revenue was primarily due to a $41.3 million decrease in revenue generated from the Genentech Agreement, resulting from the termination of the Genentech Agreement in August 2025, and a $2.1 million decrease in revenue generated from our immunosequencing services. These decreases were partially offset by a $9.0 million increase in revenue generated from our target discovery agreement.

Previous 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.

Current wording

The $5.7 million increase in cost of revenue was primarily attributable to a $2.5 million increase in labor and overhead costs, a $2.2 million increase in shipping and handling expenses and a $0.9 million increase in cost of materials.

Previous wording

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 wording

The $10.6 million decrease in research and development expenses was primarily attributable to a $4.3 million decrease in personnel costs (inclusive of a $1.1 million increase resulting from personnel-related restructuring costs), a $4.1 million decrease in depreciation and other expenses, a $2.3 million decrease in laboratory materials and allocated production laboratory expenses, which was driven primarily by decreased investments in our broad platform, clonoSEQ and drug discovery efforts, and a $0.9 million decrease in allocable facility expenses. These decreases were partially offset by a $1.0 million increase in software and cloud services expenses. A $2.6 million decrease in depreciation expense, $0.8 million decrease in expenses related to clinical study and validation activities and $0.7 million decrease in asset disposal costs were the primary drivers of the change in depreciation and other expenses.

Previous 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.

Current wording

The $9.6 million increase in sales and marketing expenses was primarily attributable to a $4.8 million increase in personnel costs, a $2.1 million increase in computer and software expenses, a $1.5 million increase in travel and customer event related expenses and a $1.0 million increase in consulting costs.

Previous wording

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 wording

The $7.5 million increase in general and administrative expenses was primarily attributable to a $2.7 million increase in personnel costs, a $2.1 million increase in legal and accounting expenses, a $1.7 million increase in computer and software expenses and a $1.1 million increase in third-party billing service fees.

Previous wording

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 wording

The $2.7 million decrease in interest expense was primarily attributable to the early settlement of our revenue interest liability under the Purchase Agreement, partially offset by amortization of deferred costs related to issuance of the Notes.

Previous wording

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 wording

The $31.6 million improvement in MRD Adjusted EBITDA was primarily attributable to a $55.4 million increase in MRD revenue, partially offset by a $23.8 million increase in operating expenses, excluding segment non-cash and restructuring expenses. The increase in these operating expenses was primarily due to a $9.9 million increase in sales and marketing expenses driven primarily by increased personnel costs and electronic medical record software expenses, a $6.8 million increase in general and administrative expenses driven largely by increased personnel costs and third-party billing service fees, a $5.8 million increase in cost of revenue expenses driven largely by increased testing volumes and related shipping expenses and a $1.3 million increase in research and development expenses driven largely by increased personnel costs and cloud services expenses.

Previous 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.

Current wording

The $26.7 million increase in Immune Medicine Adjusted EBITDA deficit was primarily attributable to a $34.3 million decrease in Immune Medicine revenue, resulting largely from the termination of the Genentech Agreement in August 2025, partially offset by a $7.7 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 expenses, facility-related expenses and laboratory, material and depreciation costs.

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, 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.

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, 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 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

(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.

Current wording

(1)Represents the amortization of deferred costs related to issuance of the Notes, and, for periods prior to the third quarter of 2026, costs associated with our now settled revenue interest liability and the noncash interest costs associated with the amortization of deferred issuance costs related to the Purchase Agreement. See 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 details on interest expense.

Previous 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 June 30, 2026, with the exception of certain 2019 periods for which we had positive cash flows from operations. As of June 30, 2026, we had an accumulated deficit of $1.4 billion.

Current wording

We have incurred losses since inception, apart from the three month periods ended September 30, 2026 and 2025, and have incurred negative cash flows from operations since inception through September 30, 2026, with the exception of certain 2019 periods for which we had positive cash flows from operations. As of September 30, 2026, 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, 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.

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 $127.3 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 September 30, 2026, we had cash, cash equivalents and marketable securities of $386.4 million, excluding $13.8 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, commercial paper 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 assay development initiatives associated with clonoSEQ. 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.

Previous wording

The following table summarizes our uses and sources of cash for the six months ended June 30, 2026 and 2025 (in thousands):

Current wording

The following table summarizes our uses and sources of cash for the nine months ended September 30, 2026 and 2025 (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 the loss recognized upon our early settlement of the Purchase Agreement and share-based compensation.

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 consisted primarily of share-based compensation and the loss recognized upon our early settlement of the Purchase Agreement.

Previous 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.

Current wording

Net cash used in operating activities was $6.3 million as compared to $48.0 million for the nine months ended September 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 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.

Current wording

Net cash used in investing activities was $159.4 million as compared to $46.2 million net cash provided by investing activities for the nine months ended September 30, 2026 and 2025, respectively. The increase in net cash used in investing activities was primarily due to an increase in purchases of marketable securities and a decrease in proceeds from maturities of marketable securities.

Previous 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.

Current wording

Net cash provided by financing activities was $170.9 million as compared to $8.7 million for the nine months ended September 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.

Previous wording

We have prepared the unaudited condensed consolidated financial statements in accordance with GAAP. Our preparation of these unaudited condensed consolidated financial statements requires us to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the unaudited condensed consolidated financial statements, as well as the reported amounts of revenues and expenses recorded during the periods presented. We evaluate our estimates and judgments on an ongoing basis. We base our estimates on historical experience and other relevant assumptions that we believe to be reasonable under the circumstances. Estimates are used in several areas, including, but not limited to, estimates of progress to date for certain performance obligations and the transaction price for certain contracts with customers, imputing interest for the Purchase Agreement, the provision for income taxes, including related reserves, the analysis of goodwill impairment and the recoverability and impairment of long-lived assets, among others. These estimates generally involve complex issues and require judgments, involve the analysis of historical results and prediction of future trends, can require extended periods of time to resolve and are subject to change from period to period. Actual results may differ materially from management’s estimates.

Current wording

We have prepared the unaudited condensed consolidated financial statements in accordance with GAAP. Our preparation of these unaudited condensed consolidated financial statements requires us to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the unaudited condensed consolidated financial statements, as well as the reported amounts of revenues and expenses recorded during the periods presented. We evaluate our estimates and judgments on an ongoing basis. We base our estimates on historical experience and other relevant assumptions that we believe to be reasonable under the circumstances. Estimates are used in several areas, including, but not limited to, estimates of progress to date for certain performance obligations and the transaction price for certain contracts with customers, imputing interest for the Purchase Agreement (prior to settlement), the provision for income taxes, including related reserves, the analysis of goodwill impairment and the recoverability and impairment of long-lived assets, among others. These estimates generally involve complex issues and require judgments, involve the analysis of historical results and prediction of future trends, can require extended periods of time to resolve and are subject to change from period to period. Actual results may differ materially from management’s estimates.