Natera, Inc.

Previous 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.

Current wording

During thenine months ended September 30, 2026, we processed approximately 3,150,600 tests, comprised of approximately 3,109,500 tests accessioned in our laboratory, compared to approximately 2,601,900 tests processed, comprised of approximately 2,559,800 tests accessioned in our laboratory, during thenine months ended September 30,

Previous 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%.

Current wording

The percent of our revenues attributable to our U.S. direct sales force for thenine months ended September 30, 2026 was 95%, a decrease compared to 96% for thenine months ended September 30, 2025. The percent of our revenues attributable to U.S. laboratory distribution partners for thenine months ended September 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 thenine months ended in both September 30, 2026 and 2025 was 2%.

Previous 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.

Current wording

For thenine months ended September 30, 2026, total revenues were$2,243.4 million compared to$1,640.6 million in thenine months ended September 30, 2025. Product revenues accounted for$2,231.8 million, nearly 99% of total revenues for thenine months ended September 30, 2026 compared to$1,634.7 million, representing nearly 100% of total revenues for thenine months ended September 30, 2025. For thenine months ended September 30, 2026 and 2025, no customers exceeded 10% of the total revenues on an individual basis. Revenues from customers outside the United States were$40.1 million, representing approximately 2% of total revenues for thenine months ended September 30, 2026. For thenine months ended September 30, 2025, revenues from customers outside the United States were$28.1 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 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.

Current wording

Our net loss for thenine months ended September 30, 2026 and 2025 was$212.0 million and$255.4 million, respectively. This included non-cash stock compensation expense of$304.3 million and$261.8 million for thenine months ended September 30, 2026 and 2025, respectively. As of September 30, 2026, we had an accumulated deficit of$3.0 billion.

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 June 30, 2026 increased by $206.2 million, or 37.7%, when compared to the three months ended June 30, 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 September 30, 2026 increased by $201.8 million, or 34.1%, when compared to the three months ended September 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 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.

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 September 30, 2026, total reported units were approximately 1,024,800, comprised of approximately 1,012,100 tests reported in our laboratories. Comparatively, during the three months ended September 30, 2025, total reported units were approximately 832,900, which is comprised of approximately 819,900 tests reported in our laboratory. During the three months ended September 30, 2026 and 2025, total oncology units processed were approximately 339,500 and 211,000, respectively.

Previous 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.

Current wording

During the three months ended September 30, 2026, product revenues increased by$199.8 million, or 33.9%, compared to the three months ended September 30, 2025, as a result of the continued revenue growth from increased test volumes, and average selling price improvements. During the three months ended September 30, 2026, there was an increase in total reported units by approximately 191,900 units, or 23.0%, in comparison with the three months ended September 30, 2025. Average selling price (“ASP”, calculated as total product revenue divided by total reported units) increased during the three months ended September 30, 2026 by approximately 8.8% in comparison with the three months ended September 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 decreased by approximately $22.8 million during the three months ended September 30, 2026 compared with the three months ended September 30, 2025. The total change in estimate recorded during the three months ended September 30, 2026 was$32.3 million. The decrease in the change inestimate reflects the continued accumulation of historical collection experience, which has resulted in our estimates of variable consideration at the time of revenue recognition more closely approximating subsequent cash collections.

Previous 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.

Current wording

Licensing and other revenues increased by $2.0 million, or 101.4%, during the three months ended September 30, 2026 when compared to the three months ended September 30, 2025. The increase was primarily due to an increase in revenue from our collaborative agreements.

Previous wording

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 wording

During the three months ended September 30, 2026, cost of product revenues increased compared to the three months ended September 30, 2025 by approximately $72.4 million, or 34.9%, primarily due to higher costs related to inventory consumption of $24.3 million, a $17.9 million increase in third-party fees, and a $13.8 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 200,600 units, or 22.8%, during the three months ended September 30, 2026 compared to the three months ended September 30, 2025. Additionally, labor costs increased $16.4 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 35.4% and 35.1% for the three months ended September 30, 2026 and 2025, respectively. The increase in cost of product revenue as a percentage of product revenues was primarily due to a reduction in the change in estimate of $22.8 million in the three months ended September 30, 2026 in comparison with the three months ended September 30, 2025.

Previous 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.

Current wording

The cost of licensing and other revenues for the three months ended September 30, 2026 increased by$0.3 million, or 58.9%, compared to the three months ended September 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 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.

Current wording

Research and development expenses during the three months ended September 30, 2026, increased by$69.0 million, or 39.8%, when compared to the three months ended September 30, 2025. The increase was attributable to a $25.8 million increase in salary and related compensation expenditures due to an increase in headcount (including a $7.3 million increase in stock-based compensation expense) to support clinical research, clinical publications, and development of our new products during the three months ended September 30, 2026 in comparison with the three months ended September 30, 2025, a $24.7 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 $13.0 million increase in office related expenses, and a $5.5 million net increase in consulting, travel, facilities, and other expenses.

Previous 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.

Current wording

Selling, general, and administrative expenses increased by$25.1 million, or 8.1%, during the three months ended September 30, 2026, comp ared to the three months ended September 30, 2025. The increase was attributable to a $19.7 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 expanded general operations and billing during the three months ended September 30, 2026 in comparison with the three months ended September 30, 2025, a $9.8 million increase in marketing expenses to expand our market penetration and adoption, a $7.7 million increase for change in valuation of contingent consideration, and a $10.6 million net increase in certain travel, facilities, office and other costs, offset by a $22.7 million decrease in legal and consulting expenses.

Previous wording

Amortization of acquired intangibles increased by$5.7 million, or 100.0%, in the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was attributed to the amortization of intangibles acquired as part of the business combination with Foresight Diagnostics.

Current wording

Amortization of acquired intangibles increased by$5.7 million, or 100.0%, in the three months ended September 30, 2026 compared to the three months ended September 30, 2025. The increase was attributed to the amortization of intangibles acquired as part of the business combination with Foresight Diagnostics. The acquired intangibles are primarily used for research and development of future products.

Previous wording

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 wording

Interest and other income for the three months ended September 30, 2026, decreased by $1.7 million, or 14.8%, compared to the same period in the prior year, primarily due to lower interest income driven by lower interest rates.

Previous wording

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 wording

Income tax expense was $0.3 million for the three months ended September 30, 2026, compared to an income tax expense of $0.2 million for the three months ended September 30, 2025, primarily due to state taxes.

Previous wording

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 wording

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 thenine months ended September 30, 2026 increased by$602.8 million, or 36.7%, when compared to thenine months ended September 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 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 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 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 thenine months ended September 30, 2026, total reported units were approximately 2,941,900, comprised of approximately 2,902,200 tests reported in our laboratory. Comparatively, during thenine months ended September 30, 2025, total reported units were approximately 2,450,100, which is comprised of approximately 2,410,600 tests reported in our laboratory. During thenine months ended September 30, 2026 and 2025, total oncology units processed were approximately 895,100 and 567,500, respectively.

Previous wording

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 wording

During thenine months ended September 30, 2026, product revenues increased by$597.1 million, or 36.5%, compared to thenine months ended September 30, 2025, primarily as a result of the continued revenue growth from increased test volumes, and average selling price improvements. During thenine months ended September 30, 2026 there was an increase in reported units by approximately 491,800 units, or 20.1%, in comparison with thenine months ended September 30, 2025. Average ASP increased during thenine months ended September 30, 2026 by approximately 13.7% in comparison with thenine months ended September 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 by approximately $10.9 million during thenine months ended September 30, 2026 compared with thenine months ended September 30, 2025. The total change in estimate recorded during thenine months ended September 30, 2026 was $145.6 million. The increase in change in estimate reflects higher changes in estimate in the first half of 2026, partially offset by a lower change in estimate in the third quarter, as the continued accumulation of historical collection experience has resulted in our estimates of variable consideration at the time of revenue recognition more closely approximating subsequent cash collections.

Previous wording

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 wording

Licensing and other revenues increased by $5.6 million, or 94.8%, during the nine months ended September 30, 2026 when compared to the nine months ended September 30, 2025. The increase was primarily due to an increase in revenue from our collaborative agreements.

Previous wording

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 wording

During the nine months ended September 30, 2026, cost of product revenues increased compared to the nine months ended September 30, 2025 by approximately $200.0 million, or 33.8%, due to a $47.5 million increase in third-party fees, higher costs related to inventory consumption of $68.9 million driven by expansion of the business with an increase in accessioned cases by approximately 549,700 units during thenine months ended September 30, 2026 in comparison with thenine months ended September 30, 2025. In addition, labor costs increased by $49.7 million due to the increase in hiring to support lab operations and increased volume of tests processed during thenine months ended September 30, 2026 in comparison with thenine months ended September 30, 2025, and shipping, equipment and related depreciation expense, overhead, and other related costs increased by $33.9 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 36.2% for thenine months ended September 30, 2026 and 2025, respectively. The improvement was primarily the result of a change in product mix where certain 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 $10.9 million in thenine months ended September 30, 2026 in comparison with thenine months ended September 30, 2025.

Previous wording

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 wording

Cost of licensing and other revenues for thenine months ended September 30, 2026, when compared to thenine months ended September 30, 2025, increased by$1.0 million, or 66.8%, primarily due to a net increase in costs to support our collaborative agreements.

Previous wording

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 wording

Research and development expenses during thenine months ended September 30, 2026, increased by$232.3 million, or 51.7%, when compared to thenine months ended September 30, 2025. The increase was attributable to an increase of $91.8 million in salary and related compensation expenditures (including a $20.7 million increase in stock-based compensation expense) during thenine months ended September 30, 2026 in comparison with thenine months ended September 30, 2025 to support clinical research, clinical publications, and development of our new products, a $5.9 million increase in consulting expenses, a $35.3 million increase in office related expenses, a $89.8 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 $9.5 million net increase in facilities, travel, and other expenses.

Previous wording

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 wording

Selling, general and administrative expenses increased by $102.8 million, or 11.6%, during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. The increase was attributable to an increase of $105.0 million in salary and related compensation expenditures (including a $17.9 million increase in stock-based compensation expense) during the nine months ended September 30, 2026 in comparison with the nine months ended September 30, 2025, a $35.0 million increase in marketing expenses for continued product expansion and market penetration, a $8.7 million increase in travel related costs, a $11.3 million increase in office costs, a $8.2 million increase for change in valuation of contingent consideration, and a $14.8 million net increase in facilities and other costs, offset by a $80.2 million decrease in legal and consulting expenses.

Previous wording

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.

Current wording

Amortization of acquired intangibles increased by$17.1 million, or 100.0%, in thenine months ended September 30, 2026 compared to thenine months ended September 30, 2025. The increase was attributed to the amortization of intangibles acquired as part of the business combination with Foresight Diagnostics. The acquired intangibles are primarily used for research and development of future products.

Previous wording

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 wording

Interest expense decreased $0.4 million, or 12.8%, in the nine months ended September 30, 2026 compared to the same period in the prior year due to lower interest rates.

Previous 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.

Current wording

Interest and other income for the nine months ended September 30, 2026 decreased $6.8 million, or 19.1%, 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 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.

Current wording

Income tax expense slightly decreased in the nine months ended September 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 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.

Current wording

We have incurred net losses each year since our inception. For the nine months ended September 30, 2026, we had a net loss of $212.0 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 September 30, 2026, we had an accumulated deficit of $3.0 billion. As of September 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 September 30, 2026, we have $20.0 million remaining and available on the Credit Line.

Previous wording

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 wording

During the nine months ended September 30, 2026, our reported test units increased by 491,800 compared to the nine months ended September 30, 2025. This growth resulted in higher revenue and an increase in accounts receivable of $174.8 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.

Previous wording

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 wording

Operating liabilities were primarily driven by an aggregate increase in accounts payable, accrued compensation, and other accrued liabilities of approximately $165.0 million during the nine-month period ended September 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 1,200, 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.

Previous wording

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 wording

As discussed in Note 4, Revenue Recognition, during the nine months ended September 30, 2026, we also recognized $145.6 million, as compared to $134.7 million for the nine months ended September 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 $10.9 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.

Previous wording

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.

Current wording

During the nine months ended September 30, 2025, cash provided by operating activities was $141.4 million. Operating cash flows benefited from approximately $134.7 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 $27.8 million as overall payor collections improved and cash collection cycles accelerated. Operating liabilities were primarily driven by an aggregate increase in accounts payable, accrued compensation, and other accrued liabilities of approximately $108.7 million, primarily due to the timing of cash payments for operating expenses, which also contributed positively to operating cash flows.

Previous 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.

Current wording

Cash used in investing activities for thenine months ended September 30, 2026 totaled$134.5 million, comprised of $124.2 million in acquisitions of property and equipment to support expanded facilities to accommodate growth of the business, $10.0 million of investment in a related party, and $0.2 million of cash paid for a business combination.

Previous 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.

Current wording

Cash used in investing activities for thenine months ended September 30, 2025 totaled$60.6 million, comprised of $70.1 million in acquisitions of property and equipment to support expanded facilities to accommodate growth of the business and $12.5 million in acquisition of intangible assets offset by $22.0 million from proceeds of investments maturities.

Previous 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.

Current wording

Cash provided by financing activities for thenine months ended September 30, 2026, totaled$16.6 million which was comprised of $5.7 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 $5.4 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 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.

Current wording

Cash provided by financing activities for thenine months ended September 30, 2025, totaled$15.1 million which was comprised of $2.9 million from proceeds from the exercise of stock options and $12.2 million from the issuance of common stock under the employee stock purchase plan.

Previous 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.

Current wording

Our future minimum lease payments consist of$199.8 million of payments, as described in Note 9, Leases, of which none was for payments for leases executed but not yet commenced. The leases have not commenced under Accounting Standards Codification, or ASC, Topic 842, Leases (ASC 842), as of September 30, 2026. As a result, these leases are not reflected within the consolidated balance sheets.