Natera, Inc.

Natera reported second-quarter revenue of approximately $753 million, up approximately 38% year over year, or about 40% ex revenue true-ups. Gross margin was approximately 65%, and management said Q2 gross margin improved sequentially by roughly 50 basis points ex true-ups. The company processed approximately 1.044 million tests in the quarter, including 283 thousand clinical MRD units, up approximately 56% year over year, with clinical MRD units up 34 thousand sequentially, the largest sequential increase to date. Management said it generated positive cash inflow again, trimmed operating losses, and brought DSO down to 57 days. For the full year, revenue guidance was raised to $2.85 billion to $2.91 billion, implying roughly 31% growth ex true-ups, with OpEx held steady and gross margin guidance unchanged aside from prior improvement already embedded.

Steven Leonard Chapman called Q2 an exceptional quarter and framed the results as evidence that prior investments in technology, commercial staffing, medical affairs, and clinical evidence are now paying off. He emphasized broad-based Signatera acceleration across tumor types, strong women’s health performance despite seasonal softness, and the company’s growing ability to win new accounts and expand adoption through product launches and guideline wins. His tone was confident and upbeat, while cautioning that the Q2 Signatera volume jump was unusually strong and not likely to repeat immediately.

Michael Brophy highlighted the company’s financial leverage: revenue growth, roughly 65% gross margin, narrowing loss per share, and DSO improving to 57 days. He said SG&A is relatively stable in 2026, with some first-half expenses not expected to recur and any guide overage likely to come from noncash items like stock-based compensation and litigation. He also stressed that R&D is still expanding, including roughly $100 million this year for early cancer detection work, but said the business is generating enough gross profit growth to support those investments and that the company is in good shape to generate cash again this year.

Analysts focused heavily on whether Signatera’s volume surge and ASP gains are sustainable, and management pointed to FDA approval, the commercial team ramp, more medical affairs activity, stronger evidence, and growing guideline support as the main drivers. On ASP, Brophy said the guide assumes a stable $12.75 Signatera ASP through year-end and suggested another roughly $25 of near-term upside is possible, while the bigger ASP step-up from MolDX coverage and broader guidelines is more likely a 2027 story. Questions also probed competition, Japan launch timing, and biomarker-state true-ups; management said competition has not materially slowed growth, Japan adoption will depend heavily on reimbursement and local sales execution, and biomarker-state benefits should come through gradually rather than as a lump of retroactive true-ups.