Natera Raises Outlook as Oncology Testing Accelerates
Second-quarter revenue reached $752.8 million as higher test volumes and improved pricing drove growth.
Natera Inc. (NTRA), the genetic-testing company, raised its full-year revenue outlook after oncology testing and higher prices lifted second-quarter sales.
The quarter extended a shift toward faster test-volume growth even as revenue growth moderated. Tests processed rose 22.4% from a year earlier, accelerating from 18.5% growth in the first quarter, while revenue increased 37.7%, easing from 38.8%.
Revenue rose 37.7% to $752.8 million and increased about 8.1% from the first quarter. The net loss narrowed to $67.0 million, or $0.47 a share, from $100.9 million, or $0.74 a share, a year earlier. The first-quarter loss was $85.1 million, or $0.60 a share.
Oncology tests processed climbed 57.2% to about 296,700 and increased 14.6% sequentially. Clinical molecular residual disease volume rose by about 34,000 tests to roughly 283,000, the largest quarterly increase to date. Total tests reported increased 21.2% from a year earlier and 5.8% from the first quarter.
Higher volume and stronger average selling prices across women’s health, organ health and oncology allowed revenue growth to outpace test-volume growth. GAAP gross margin widened 1.1 percentage points from a year earlier to 64.5%, though it slipped from 64.7% in the first quarter. Excluding revenue true-ups, the margin increased about half a percentage point sequentially to 61.8%.
The operating loss narrowed to $75.8 million from $110.4 million a year earlier despite a 21.5% increase in operating expenses. Research-and-development spending rose $81.6 million to $228.1 million as Natera funded early-cancer-detection development, the FIND study and Signatera clinical trials. Quarterly cash generation slowed to about $3.6 million, while cash, equivalents and restricted cash totaled $1.0915 billion at June 30.
Natera now expects 2026 revenue of $2.85 billion to $2.91 billion, raising the midpoint by $100 million from its prior forecast and by $220 million from its initial outlook. The company continues to expect a gross margin of 64% to 66%, positive cash flow, SG&A spending of $1.125 billion to $1.225 billion and R&D spending of $800 million to $900 million.
The company also secured three Signatera regulatory approvals, including the first U.S. approval for a blood-based MRD companion diagnostic, and expanded Medicare surveillance coverage for Prospera. Natera launched an enhanced Panorama test that reduced no-call rates by about 80%, adding another product update as clinical investment remained elevated.