Natera, Inc.
For the period ended Jun 30, 2026. Filed Aug 7, 2026.
View on SEC.govAbout this filing
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 7, 2026
NTRA$310.67-14.6%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 2026-05-08.
0001628280-26-032478
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0001628280-26-054525
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 92 previous paragraphs and 102 current paragraphs.
58 unchanged; 20 reworded; 20 added; 12 removed; 2 previous and 4 current paragraphs rearranged.
Tables are not compared: 2 previous and 3 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 (20)
Current report
During the three months ended June 30, 2026, cost of product revenues increased compared to the three months ended June 30, 2025 by approximately $67.1 million, or 33.6%, primarily due to higher costs related to inventory consumption of $22.7 million, a $16.4 million increase in third-party fees, and a $12.5 million increase in other costs including equipment and related depreciation, shipping, and overhead expenses, all of which were driven by expansion of the business with an increase in accessioned cases by approximately 190,800 units, or 22.7%, during the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Additionally, labor costs increased $15.5 million due to the increase in hiring to support lab operations and increased volume of tests processed. Overall the cost of product revenues as a percent of total product revenues were 35.6% and 36.6% for the three months ended June 30, 2026 and 2025, respectively. The improvement was a result of a change in product mix where certain higher volume products have a lower cost per test, as well as a change in estimate related to collections for tests delivered in prior periods which were deemed probable that a significant reversal in the amount of cumulative revenue recognized will not occur, which increased revenue by approximately $7.0 million in the three months ended June 30, 2026 in comparison with the three months ended June 30, 2025. The increase in change in estimate was due to our continuous efforts to improve reimbursement from third party payors, including broader coverage for Signatera.
Current report
Research and Development (R&D)
Current report
Selling, General and Administrative (SG&A)
Current report
Income tax benefit was $0.3 million for the three months ended June 30, 2026, compared to an income tax expense of $0.3 million for the three months ended June 30, 2025, primarily due to state taxes.
Current report
Comparison of the six months ended June 30, 2026 and 2025
Current report
During thesix months ended June 30, 2026, product revenues increased by$397.3 million, or 38.0%, compared to thesix months ended June 30, 2025, primarily as a result of the continued revenue growth from increased test volumes, and average selling price improvements. During thesix months ended June 30, 2026 there was an increase in reported units by approximately 295,400 units, or 18.3%, in comparison with thesix months ended June 30, 2025. Average ASP increased during thesix months ended June 30, 2026 by approximately 16.7% in comparison with thesix months ended June 30, 2025. The increase in ASP was due to better reimbursement for our major products and an increase in the proportion of product revenues derived from Signatera, which commands higher ASPs than our women's health products. We also recognized additional revenue as part of the change in estimate process due toexcess collections for the tests delivered in prior periods which were deemed probable that a significant reversal in the amount of cumulative revenue recognized will not occur. This change in estimate increased revenues by approximately $33.7 million during thesix months ended June 30, 2026 compared with thesix months ended June 30, 2025. The total change in estimate recorded during the six months ended June 30, 2026 was $113.3 million. The increase in change in estimate is due to our continuous efforts to improve our revenue cycle operations and workflows, including automation and the use of artificial intelligence, as well as stronger reimbursement overall.
Current report
Licensing and other revenues increased by $3.6 million, or 91.5%, during the six months ended June 30, 2026 when compared to the six months ended June 30, 2025. The increase was primarily due to an increase in revenue from our collaborative agreements.
Current report
During the six months ended June 30, 2026, cost of product revenues increased compared to the six months ended June 30, 2025 by approximately $127.7 million, or 33.2%, due to a $29.6 million increase in third-party fees, higher costs related to inventory consumption of $44.5 million driven by expansion of the business with an increase in processed cases by approximately 348,600 units during the six months ended June 30, 2026 in comparison with the six months ended June 30, 2025. In addition, labor costs increased by $33.2 million due to the increase in hiring to support lab operations and increased volume of tests processed during the six months ended June 30, 2026 in comparison with the six months ended June 30, 2025, and shipping, equipment and related depreciation expense, overhead, and other related costs increased by $20.4 million driven by headcount growth and product support. Overall, the cost of product revenues as a percent of total product revenues were 35.5% and 36.8% for the six months ended June 30, 2026 and 2025, respectively. The reduction was primarily the result of a change in product mix where certain higher volume products have a lower cost per test. Additionally, thereduction was partially driven by achange in estimate related to excess cash collections for tests delivered in prior periods which were deemed probable that a significant reversal in the amount of cumulative revenue recognized will not occur, which resulted in an increase in revenue of approximately $33.7 million in the six months ended June 30, 2026 in comparison with the six months ended June 30, 2025. The increase in change in estimate was due to our continuous efforts to improve our revenue cycle operations and workflows, including automation and the use of artificial intelligence, as well as stronger reimbursement overall.
Current report
Cost of licensing and other revenues for thesix months ended June 30, 2026, when compared to thesix months ended June 30, 2025, increased by$0.7 million, or 71.4%, primarily due to a net increase in costs to support our collaborative agreements.
Current report
Research and development expenses during thesix months ended June 30, 2026, increased by$163.3 million, or 59.3%, when compared to thesix months ended June 30, 2025. The increase was attributable to an increase of $66.0 million in salary and related compensation expenditures (including a $13.4 million increase in stock-based compensation expense) during thesix months ended June 30, 2026 in comparison with thesix months ended June 30, 2025 to support clinical research, clinical publications, and development of our new products, a $4.6 million increase in consulting expenses, a $22.3 million increase in office related expenses, a $65.1 million increase in lab related and clinical trial expenses where we continue investing in new product launches and clinical trials designed to accelerate guideline adoption, and a $5.3 million net increase in facilities, travel, and other expenses.
Current report
Selling, general and administrative expenses increased by $77.7 million, or 13.5%, during the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase was attributable to an increase of $85.4 million in salary and related compensation expenditures (including a $11.2 million increase in stock-based compensation expense) during the six months ended June 30, 2026 in comparison with the six months ended June 30, 2025, a $25.3 million increase in marketing expenses for continued product expansion and market penetration, a $8.4 million increase in travel related costs, a $6.1 million increase in office costs, and a $10.0 million net increase in facilities and other costs, offset by a $57.5 million decrease in legal and consulting expenses.
Current report
Amortization of Acquired Intangibles
Current report
Interest expense decreased $0.3 million, or 12.4%, in the six months ended June 30, 2026 compared to the same period in the prior year due to lower interest rates.
Current report
Interest and Other Income
Current report
Income Tax Benefit (Expense)
Current report
Overall, our cash flow position is significantly influenced by the timing of customer cash collections and the continued growth of the business. As our operations have expanded, including increased testing volumes, additional third-party vendors, and higher headcount, corresponding increases in operating cash outflows have occurred and are expected to continue. In addition, we invested heavily into research and development with focused efforts on building new products to support our patients, clinical trials to ensure our tests provide enhanced health benefits to patients and the ability to adopt clinical guidelines, and obtain test reimbursements from payors and patients. We expect to continue to invest heavily in research and development activities.
Current report
During the six months ended June 30, 2026, our reported test units increased by 295,400 compared to the six months ended June 30, 2025. This growth resulted in higher revenue and an increase in accounts receivable of $125.4 million. The increase in accounts receivable is consistent with our normal revenue cycle, as cash collections are generally received over an average period of approximately six to nine months following the delivery of test results.
Current report
Accounts payable, accrued compensation, and other accrued liabilities increased by an aggregate $138.7 million during the six-month period ended June 30, 2026. The increase primarily reflects the overall growth of the business, including higher expenditures for third-party vendors, consulting services, and employee-related costs where total employee headcount increased by approximately 1,000, to support expanded lab operations, research and development, clinical trials, billing and other critical functions, as well as normal timing differences between the recognition of expenses and the related cash payments.
Current report
As discussed in Note 4, Revenue Recognition, during the six months ended June 30, 2026, we also recognized $113.3 million, as compared to $79.6 million for the six months ended June 30, 2025, related to favorable changes in estimate that increased revenue for tests delivered in prior periods that were deemed probable that a significant reversal in the amount of cumulative revenue recognized will not occur. This $33.7 million increase directly increased our cash provided by operating activities and helped fund our increased clinical trials, research and development expenses. To the extent we record a change in estimate that increases revenue for tests delivered in prior periods that were deemed probable that a significant reversal in the amount of cumulative revenue recognized will not occur, we expect to continue reinvesting into future clinical trials, research and development.
Current report
During the six months ended June 30, 2025, cash provided by operating activities was $82.0 million. Operating cash flows benefited from approximately $79.6 million of cash collections related to favorable changes in estimates for tests delivered in prior periods that were deemed probable that a significant reversal in the amount of cumulative revenue recognized will not occur. In addition, accounts receivable decreased by $4.9 million as overall payor collections improved and cash collection cycles accelerated. Operating liabilities increased by approximately $65.4 million, primarily due to the timing of cash payments for operating expenses, which also contributed positively to operating cash flows.
Removed paragraphs (12)
Previous report
Revenues
Previous report
Entering into in-network contracts continues to be an important part of our business strategy, as we believe that in-network coverage of our tests by third-party payers is crucial to our growth and long-term success, as in-network pricing is more predictable than out-of-network pricing, enables us to develop stable, long-term relationships with third-party payers, and provides access to a larger population of covered lives. However, the negotiated fees under our contracts with third-party payers are typically lower than the list price of our tests, and in some cases, the third-party payers that we contract with have negative coverage determinations for some of our offerings, in particular Panorama for microdeletions screening. Therefore, being in-network with third-party payers has in the past had, and may in the future have, an adverse impact on our revenues and gross margins. We intend to mitigate any impact by driving more business from our most profitable accounts.
Previous report
Cost of Product Revenues
Previous report
Expenses
Previous report
Interest Expense
Previous report
Revenues
Previous report
Cost of Product Revenues
Previous report
During the three months ended March 31, 2026, cost of product revenues increased compared to the three months ended March 31, 2025 by approximately $60.6 million, or 32.8%, primarily due to higher costs related to inventory consumption of $21.9 million driven by an increase in accessioned cases, a $17.7 million increase in labor costs, a $13.3 million increase in third-party fees, and a $7.7 million increase in equipment and related depreciation expense, labor, overhead, shipping and other related costs driven by headcount growth and product support.
Previous report
Expenses
Previous report
Interest Expense
Previous report
Cash provided by operating activities during thethree months ended March 31, 2026 was $40.2 million. The net loss of$85.1 million includes $128.1 million in non-cash charges resulting from $14.5 million of depreciation and amortization, $5.7 million of amortization of acquired intangible assets, $1.2 million non-cash settlement expense, $5.9 million of non-cash lease expense, $95.1 million of stock-based compensation expense, $6.1 million related to revaluation of contingent consideration, and $0.3 million of foreign exchange adjustment, offset by a $0.1 million change in fair value of warrants and preferred stock and a $0.6 million decrease in non-cash expense recovery. Operating assets had cash outflows of $140.1 million resulting from a $121.1 million decrease in accounts receivable, a $17.1 million decrease in prepaid expenses and other assets, and a $2.2 million decrease in inventory, offset by a $0.3 million increase in operating lease right-of-use assets. Operating liabilities had cash inflows of $137.3 million resulting from a $21.9 million increase in accounts payable, a $98.2 million increase in accrued compensation, a $12.1 million increase in other accrued liabilities, and a $11.9 million increase in deferred revenue, offset by a $5.9 million decrease in lease liabilities and a $0.9 million decrease in other long-term liabilities.
Previous report
Cash provided by operating activities during thethree months ended March 31, 2025 was $44.5 million. The net loss of $66.9 million includes $88.0 million in non-cash charges resulting from $9.2 million of depreciation and amortization, $77.8 million of stock-based compensation expense, $4.4 million of non-cash lease expense, and $0.1 million for foreign exchange adjustment, offset by a $0.3 million decrease in non-cash expense recovery and a $3.2 million change in fair value of warrants and preferred stock. Operating assets had cash outflows of $19.1 million resulting from a $9.4 million increase in prepaid expenses and other assets, a $4.1 million increase in accounts receivable, and a $5.6 million increase in inventory. Operating liabilities resulted in cash inflows of $42.5 million resulting from a $2.4 million increase in accounts payable, a $17.0 million increase in accrued compensation, a $26.9 million increase in other accrued liabilities and a $0.7 million increase in deferred revenue, offset by a $4.5 million decrease in lease liabilities.
Reworded paragraphs (20)
Previous wording
During thethree months ended March 31, 2026, we processed approximately 1,013,600 tests, comprised of approximately 999,200 tests accessioned in our laboratory, compared to approximately 855,100 tests processed, comprised of approximately 840,800 tests accessioned in our laboratory, during thethree months ended March 31, 2025. This increase in volume primarily represents continued commercial growth of Signatera, Panorama and Horizon, both as tests performed in our laboratories as well as through our Constellation software platform.
Current wording
During thesix months ended June 30, 2026, we processed approximately 2,056,800 tests, comprised of approximately 2,028,600 tests accessioned in our laboratory, compared to approximately 1,708,200 tests processed, comprised of approximately 1,680,100 tests accessioned in our laboratory, during thesix months ended June 30, 2025. This increase in volume primarily represents continued commercial growth of Signatera, Panorama and Horizon, both as tests performed in our laboratories as well as through our Constellation software platform.
Previous wording
The percent of our revenues attributable to our U.S. direct sales force for thethree months ended March 31, 2026 was 96%, consistent with 96% for thethree months ended March 31, 2025. The percent of our revenues attributable to U.S. laboratory distribution partners for thethree months ended March 31, 2026 was 3%, an increase compared to 2% from the same period in the prior year. Our ability to increase our revenues and gross profit will depend on our ability to further penetrate the U.S. market with our direct sales force. The percent of our revenues attributable to international laboratory distribution partners and other international sales for thethree months ended March 31, 2026 and 2025 was 1% and 2%, respectively.
Current wording
The percent of our revenues attributable to our U.S. direct sales force for thesix months ended June 30, 2026 was 95%, a decrease compared to 96% for thesix months ended June 30, 2025. The percent of our revenues attributable to U.S. laboratory distribution partners for thesix months ended June 30, 2026 was 3%, an increase compared to 2% from the same period in the prior year. Our ability to increase our revenues and gross profit will depend on our ability to further penetrate the U.S. market with our direct sales force. The percent of our revenues attributable to international laboratory distribution partners and other international sales for thesix months ended in both June 30, 2026 and 2025 was 2%.
Previous wording
For thethree months ended March 31, 2026, total revenues were$696.6 million compared to$501.8 million in thethree months ended March 31, 2025. Product revenues accounted for$693.9 million, nearly 100% of total revenues for thethree months ended March 31, 2026 compared to$500.0 million, representing nearly 100% of total revenues for thethree months ended March 31, 2025. For thethree months ended March 31, 2026 and 2025, no customers exceeded 10% of the total revenues on an individual basis. Revenues from customers outside the United States were$11.0 million, representing approximately 2% of total revenues for thethree months ended March 31, 2026. For thethree months ended March 31, 2025, revenues from customers outside the United States were$9.5 million, representing approximately 2% total revenues. Most of our revenues have been denominated in U.S. dollars, though we generate some revenue in foreign currency, primarily denominated in Euros and Singapore Dollars.
Current wording
For thesix months ended June 30, 2026, total revenues were$1,449.4 million compared to$1,048.4 million in thesix months ended June 30, 2025. Product revenues accounted for$1,441.8 million, nearly 99% of total revenues for thesix months ended June 30, 2026 compared to$1,044.5 million, representing nearly 100% of total revenues for thesix months ended June 30, 2025. For thesix months ended June 30, 2026 and 2025, no customers exceeded 10% of the total revenues on an individual basis. Revenues from customers outside the United States were$24.3 million, representing approximately 2% of total revenues for thesix months ended June 30, 2026. For thesix months ended June 30, 2025, revenues from customers outside the United States were$18.3 million, representing approximately 2% of total revenues. Most of our revenues have been denominated in U.S. dollars, though we generate some revenue in foreign currency, primarily denominated in Euros and Singapore Dollars.
Previous wording
Our net loss for thethree months ended March 31, 2026 and 2025 was$85.1 million and$66.9 million, respectively. This included non-cash stock compensation expense of$95.1 million and$77.8 million for thethree months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, we had an accumulated deficit of $2.9 billion.
Current wording
Our net loss for thesix months ended June 30, 2026 and 2025 was$152.1 million and$167.9 million, respectively. This included non-cash stock compensation expense of$198.2 million and$171.2 million for thesix months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, we had an accumulated deficit of $2.9 billion.
Previous wording
Our ability to increase our revenues will depend on our ability to further penetrate the domestic and international markets and, in particular, generate sales through our direct sales force, develop and commercialize additional tests, obtain reimbursement from additional third-party payers and increase our reimbursement rates for tests performed. For example, our financial performance depends on reimbursement for microdeletions testing. Many third-party payers do not currently reimburse for microdeletions screening in part because there has historically been limited published data on the performance of microdeletions screening tests, with our single nucleotide polymorphism-based Microdeletion and Aneuploidy RegisTry, or SMART study results only being published in early 2022.
Current wording
Our ability to increase our revenues will depend on our ability to further penetrate our core markets in oncology, organ health, and women’s health and, in particular, generate sales through our direct sales force, develop and commercialize additional tests, obtain reimbursement from additional third-party payers and maintain our reimbursement rates for tests performed. For example, we believe that the market for minimal residual disease (MRD) testing is significantly underpenetrated today, as Signatera was among the first of its kind of blood-based MRD personalized to be launched commercially in 2020. In order to further penetrate this market, we must continue to deliver excellent customer service, scale our laboratory operations, update the performance and features of our offering, and effectively communicate our offering to physicians via effective sales and marketing efforts. Beyond increasing volumes, an additional pathway to increasing revenues depends on increasing third party reimbursement for Signatera. Many third-party payers do not currently reimburse for Signatera, in part because Signatera is not yet broadly included in oncology clinical practice guidelines. In order to gain broader guideline inclusion, we will need to continue to publish positive clinical trial results in a wide array of cancer types.
Previous wording
Total revenues are comprised of product revenues, which are primarily driven by sales of our Panorama and Horizon tests, Signatera and other oncology testing, and licensing and other revenues, which primarily includes development licensing revenue and licensing of our Constellation software. Total revenues for the three months ended March 31, 2026 increased by $194.8 million, or 38.8%, when compared to the three months ended March 31, 2025.
Current wording
Total revenues are comprised of product revenues, which are primarily driven by sales of our Panorama and Horizon tests, Signatera and other oncology testing, and licensing and other revenues, which primarily includes development licensing revenue and licensing of our Constellation software. Total revenues for the three months ended June 30, 2026 increased by $206.2 million, or 37.7%, when compared to the three months ended June 30, 2025.
Previous wording
We derive our revenues from tests based on units reported to customers—tests delivered with a result. All reported units are either accessioned in our laboratories or processed outside of our laboratories. As noted in the section titled “Overview” above, the number of tests that we process is a key metric as it tracks our overall volume growth. During the three months ended March 31, 2026, total reported units were approximately 931,600, comprised of approximately 918,100 tests reported in our laboratories. Comparatively, during the three months ended March 31, 2025, total reported units were approximately 804,800, which is comprised of approximately 791,400 tests reported in our laboratory. During the three months ended March 31, 2026 and 2025, total oncology units processed were approximately 258,900 and 167,700, respectively.
Current wording
We derive our revenues from tests based on units reported to customers—tests delivered with a result. All reported units are either accessioned in our laboratories or processed outside of our laboratories. As noted in the section titled “Overview” above, the number of tests that we process is a key metric as it tracks our overall volume growth. During the three months ended June 30, 2026, total reported units were approximately 985,500, comprised of approximately 972,000 tests reported in our laboratories. Comparatively, during the three months ended June 30, 2025, total reported units were approximately 812,900, which is comprised of approximately 799,900 tests reported in our laboratory. During the three months ended June 30, 2026 and 2025, total oncology units processed were approximately 296,700 and 188,800, respectively.
Previous wording
During the three months ended March 31, 2026, product revenues increased by$193.8 million, or 38.8%, compared to the three months ended March 31, 2025, as a result of the continued revenue growth from increased test volumes, and average selling price improvements.
Current wording
During the three months ended June 30, 2026, product revenues increased by$203.5 million, or 37.4%, compared to the three months ended June 30, 2025, as a result of the continued revenue growth from increased test volumes, and average selling price improvements. During the three months ended June 30, 2026, there was an increase in total reported units by approximately 172,600 units, or 21.2%, in comparison with the three months ended June 30, 2025. Average selling price (“ASP”, calculated as total product revenue divided by total reported units) increased during the three months ended June 30, 2026 by approximately 13.3% in comparison with the three months ended June 30, 2025. The increase in ASP was due to an increase in the proportion of product revenues derived from Signatera, which commands higher ASPs than our women's health products, and improved coverage from third party payers, primarily for Signatera. In addition, we recognized additional revenue as part of the change in estimate process due to excess collections for tests delivered in prior periods which were deemed probable that a significant reversal in the amount of cumulative revenue recognized will not occur. This change in estimate increased revenues by approximately $7.0 million during the three months ended June 30, 2026 compared with the three months ended June 30, 2025. The total change in estimate recorded during the three months ended June 30, 2026 was $52.3 million. The increase in change in estimate was due to our continuous efforts to improve our revenue cycle management operations and workflows, including automation and the use of artificial intelligence, as well as stronger reimbursement overall.
Previous wording
Licensing and other revenues increased by $1.0 million, or 54.7%, during the three months ended March 31, 2026 when compared to the three months ended March 31, 2025. The increase was primarily due to an increase in revenue from our collaborative agreements.
Current wording
Licensing and other revenues increased by $2.6 million, or 121.9%, during the three months ended June 30, 2026 when compared to the three months ended June 30, 2025. The increase was primarily due to an increase in revenue from our collaborative agreements.
Previous wording
The cost of licensing and other revenues for the three months ended March 31, 2026, slightly increased compared to the three months ended March 31, 2025, primarily due to a net increase in costs to support our collaborative agreements.
Current wording
The cost of licensing and other revenues for the three months ended June 30, 2026 increased by$0.5 million, or 107.3%, compared to the three months ended June 30, 2025, primarily due to a net increase in costs to support our collaborative agreements.
Previous wording
Research and development expenses during the three months ended March 31, 2026, increased by$81.6 million, or 63.2%, when compared to the three months ended March 31, 2025. The increase was attributable to a $37.7 million increase in salary and related compensation expenditures due to an increase in headcount (including a $6.8 million increase in stock-based compensation expense), a $28.1 million increase in lab and clinical trial-related expenses, a $9.7 million increase in office related expenses, and a $6.1 million net increase in consulting, travel, facilities, and other expenses.
Current wording
Research and development expenses during the three months ended June 30, 2026, increased by$81.6 million, or 55.8%, when compared to the three months ended June 30, 2025. The increase was attributable to a $28.3 million increase in salary and related compensation expenditures due to an increase in headcount (including a $6.7 million increase in stock-based compensation expense) to support clinical research, clinical publications, and development of our new products during the three months ended June 30, 2026 in comparison with the three months ended June 30, 2025, a $37.0 million increase in lab and clinical trial-related expenses where we continue investing in new product launches and clinical trials, such as early cancer detection, a $12.6 million increase in office related expenses, and a $3.7 million net increase in consulting, travel, facilities, and other expenses.
Previous wording
Selling, general, and administrative expenses increased by$61.1 million, or 22.9%, during the three months ended March 31, 2026, comp ared to the three months ended March 31, 2025. The increase was attributable to a $56.6 million increase in salary and related compensation expenditures due to an increase in headcount (including a $9.2 million increase in stock-based compensation expense), a $6.4 million increase in marketing expenses, and a $8.6 million net increase in travel, legal related, facilities, office and other costs, offset by a $10.5 million decrease in consulting expenses.
Current wording
Selling, general, and administrative expenses increased by$16.7 million, or 5.4%, during the three months ended June 30, 2026, comp ared to the three months ended June 30, 2025. The increase was attributable to a $28.8 million increase in salary and related compensation expenditures due to an increase in headcount (including a $2.0 million increase in stock-based compensation expense) to support expanded general operations and billing during the three months ended June 30, 2026 in comparison with the three months ended June 30, 2025, a $18.9 million increase in marketing expenses to expand our market penetration and adoption, a $4.9 million net increase in travel expenses, and a $8.3 million net increase in certain facilities, office and other costs, offset by a $38.6 million decrease in legal and consulting expenses and a $5.6 million decrease for change in valuation of contingent consideration.
Previous wording
Interest and other income for the three months ended March 31, 2026, decreased $3.8 million compared to the same period in the prior year, primarily due to a reduction in the revaluation of warrants and preferred shares along with lower interest income driven by lower interest rates.
Current wording
Interest and other income for the six months ended June 30, 2026 decreased $5.1 million, or 21.1%, compared to the same period in the prior year, primarily due to a reduction in the revaluation of warrants and preferred shares along with lower interest income driven by lower interest rates.
Previous wording
Income tax expense slightly increased in the three months ended March 31, 2026, compared to the same period in the prior year, primarily due state and foreign taxes.
Current wording
Income tax expense slightly decreased in the six months ended June 30, 2026, compared to the same period in the prior year, primarily due to state and foreign taxes.
Previous wording
We have incurred net losses each year since our inception. For the three months ended March 31, 2026, we had a net loss of $85.1 million, and we expect to continue to incur net losses in future periods as we continue to devote a substantial portion of our resources to our research and development and commercialization efforts for our existing and new products. As of March 31, 2026, we had an accumulated deficit of $2.9 billion. As of March 31, 2026, we had $1.1 billion in cash and cash equivalents and restricted cash, and $80.3 million of outstanding balance on the Credit Line, including accrued interest. As of March 31, 2026, we have $20.0 million remaining and available on the Credit Line.
Current wording
We have incurred net losses each year since our inception. For the six months ended June 30, 2026, we had a net loss of $152.1 million, and we expect to continue to incur net losses in future periods as we continue to devote a substantial portion of our resources to our research and development and commercialization efforts for our existing and new products. As of June 30, 2026, we had an accumulated deficit of $2.9 billion. As of June 30, 2026, we had $1.1 billion in cash and cash equivalents and restricted cash, and $80.3 million of outstanding balance on the Credit Line, including accrued interest. As of June 30, 2026, we have $20.0 million remaining and available on the Credit Line.
Previous wording
Cash used in investing activities for thethree months ended March 31, 2026 totaled $32.1 million, comprised of $22.1 million in acquisitions of property and equipment and $10.0 million of investment in a related party.
Current wording
Cash used in investing activities for thesix months ended June 30, 2026 totaled$95.6 million, comprised of $85.6 million in acquisitions of property and equipment to support expanded facilities to accommodate growth of the business and $10.0 million of investment in a related party.
Previous wording
Cash used in investing activities for thethree months ended March 31, 2025 totaled $16.8 million, comprised of $21.8 million in acquisitions of property and equipment, offset by $5.0 million from proceeds of investments maturities.
Current wording
Cash used in investing activities for thesix months ended June 30, 2025 totaled$40.7 million, comprised of $47.7 million in acquisitions of property and equipment to support expanded facilities to accommodate growth of the business offset by $7.0 million from proceeds of investments maturities.
Previous wording
Cash provided by financing activities for thethree months ended March 31, 2025, totaled $0.5 million which was comprised of proceeds from the exercise of stock options.
Current wording
Cash provided by financing activities for thesix months ended June 30, 2026, totaled$16.0 million which was comprised of $4.7 million from proceeds from the exercise of stock options, and $16.4 million proceeds from the issuance of common stock under the employee stock purchase plan offset by a payment to process $5.0 million employment taxes from the issuance of common stock upon cashless exercise of stock options and $0.1 million of stock issuance costs.
Previous wording
Cash provided by financing activities for thethree months ended March 31, 2026, totaled $3.8 million which was comprised of $3.9 million from proceeds from the exercise of stock options, offset by $0.1 million of stock issuance costs.
Current wording
Cash provided by financing activities for thesix months ended June 30, 2025, totaled$13.1 million which was comprised of $0.9 million from proceeds from the exercise of stock options and $12.2 million proceeds from the issuance of common stock under the employee stock purchase plan.
Previous wording
Our future minimum lease payments consist of$204.5 million of payments, as described in Note 9, Leases, which excludes $0.1 million of lease commitments related to payments for leases executed but not yet commenced to be paid over the respective terms of such leases. The leases have not commenced under Accounting Standards Codification, or ASC, Topic 842, Leases (ASC 842), as of March 31, 2026. As a result, these leases are not reflected within the consolidated balance sheets.
Current wording
Our future minimum lease payments consist of$200.8 million of payments, as described in Note 9, Leases, which excludes $0.4 million of lease commitments related to payments for leases executed but not yet commenced to be paid over the respective terms of such leases. The leases have not commenced under Accounting Standards Codification, or ASC, Topic 842, Leases (ASC 842), as of June 30, 2026. As a result, these leases are not reflected within the consolidated balance sheets.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Interest and other income for the three months ended June 30, 2026, decreased by $1.3 million, or 12.0%, compared to the same period in the prior year, primarily due to lower interest income driven by lower interest rates.
Current report — wording carried from elsewhere
Total revenues are comprised of product revenues, which are primarily driven by sales of our Panorama and Horizon tests, oncology testing, and licensing and other revenues, which primarily includes development licensing revenue and licensing of our Constellation software. Total revenues for thesix months ended June 30, 2026 increased by$401.0 million, or 38.2%, when compared to thesix months ended June 30, 2025.
Current report — wording carried from elsewhere
We derive our revenues from tests based on units reported to customers—tests delivered with a result. All reported units are either accessioned in our laboratory or processed outside of our laboratory. As noted in the section titled “Overview” above, the number of tests that we process is a key metric, as it tracks overall volume growth. During thesix months ended June 30, 2026, total reported units were approximately 1,913,100, comprised of approximately 1,886,200 tests reported in our laboratory. Comparatively, during thesix months ended June 30, 2025, total reported units were approximately 1,617,700, which is comprised of approximately 1,591,300 tests reported in our laboratory. During thesix months ended June 30, 2026 and 2025, total oncology units processed were approximately 554,800 and 356,500, respectively.
Current report — wording carried from elsewhere
Amortization of acquired intangibles increased by$11.4 million, or 100.0%, in thesix months ended June 30, 2026 compared to thesix months ended June 30, 2025. The increase was attributed to the amortization of intangibles acquired as part of the business combination with Foresight Diagnostics.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Cost of Licensing and Other Revenues
Previous report — wording carried elsewhere
Cost of Licensing and Other Revenues