Natera Reports Fourth Quarter and Full Year 2025 Financial Results
AUSTIN, Texas--(BUSINESS WIRE)--Natera, Inc. (NASDAQ: NTRA), a global leader in cell-free DNA and genetic testing, today reported its financial results for the fourth quarter and full year ended December 31, 2025.
Recent Financial Highlights
- Generated total revenues of $665.5 million in the fourth quarter of 2025, compared to $476.1 million in the fourth quarter of 2024, an increase of 39.8%. Product revenues grew 39.8% over the same period.
- Generated a gross margin1 of 66.9% in the fourth quarter of 2025, compared to a gross margin1 of 62.9% in the fourth quarter of 2024.
- Generated total revenues of $2,306.1 million in the full year 2025, compared to $1,696.9 million in the full year 2024, an increase of 35.9%. Product revenues grew 36.2% over the same period.
- Generated a gross margin1 of 64.7% in the full year of 2025, compared to a gross margin1 of 60.3% in the full year of 2024.
- Processed approximately 923,600 tests in the fourth quarter of 2025, compared to approximately 792,800 tests in the fourth quarter of 2024, an increase of 16.5%.
- Processed approximately 3,525,500 tests in the full year 2025, compared to approximately 3,064,600 tests in the full year 2024, an increase of 15.0%.
- Processed approximately 233,300 oncology tests in the fourth quarter of 2025, compared to approximately 150,800 in the fourth quarter of 2024, an increase of 54.7%.
- Processed approximately 800,800 oncology tests in the full year 2025, compared to approximately 528,200 in the full year 2024, an increase of 51.6%.
- Achieved positive cash inflow of approximately $107.6 million2 in the full year 2025.
“We delivered an outstanding finish to 2025 with record test volumes, strong revenue that exceeded our January pre-announcement, and gross margins well ahead of our expectations even as we continued to invest significantly throughout the year,” said Steve Chapman, chief executive officer of Natera. “With solid momentum already in 2026, we remain focused on our mission to transform the management of disease worldwide by expanding access to our testing and advancing the data that supports better patient care.”
Fourth Quarter and Year Ended December 31, 2025 Financial Results
Total revenues were $665.5 million in the fourth quarter of 2025 compared to $476.1 million in the fourth quarter of 2024, an increase of 39.8%. The increase in total revenues was driven primarily by a 39.8% increase in product revenues, which were $661.2 million in the fourth quarter of 2025 compared to $472.9 million in the fourth quarter of 2024. The increase in product revenues was driven by an increase in volume and average selling price improvements.
Natera processed approximately 923,600 tests in the fourth quarter of 2025, including approximately 909,000 tests accessioned in its laboratory, compared to approximately 792,800 tests processed, including approximately 778,400 tests accessioned in its laboratory, in the fourth quarter of 2024.
In the fourth quarter of 2025, Natera recognized revenue on approximately 892,400 tests for which results were reported to customers in the period (tests reported), including approximately 878,000 tests reported from its laboratory, compared to approximately 771,700 tests reported, including approximately 758,200 tests reported from its laboratory, in the fourth quarter of 2024, an increase of 15.6% from the prior period.
Total revenues were $2,306.1 million in the full year 2025 compared to $1,696.9 million in the full year 2024, an increase of 35.9%. The increase in total revenues was driven primarily by a 36.2% increase in product revenues, which were $2,295.8 million in the full year 2025 compared to $1,685.1 million in the full year 2024. The increase in product revenues was driven by an increase in volume and average selling price improvements.
Natera processed approximately 3,525,500 tests in the full year 2025, including approximately 3,468,700 tests accessioned in its laboratory, compared to approximately 3,064,600 tests processed, including approximately 3,001,900 tests accessioned in its laboratory, in the full year 2024.
In the full year 2025, Natera recognized revenue on approximately 3,342,500 tests for which results were reported to customers in the period (tests reported), including approximately 3,288,600 tests reported from its laboratory, compared to approximately 2,926,400 tests reported, including approximately 2,867,400 tests reported from its laboratory, in the full year 2024, an increase of 14.2% from the prior period.
Gross profit2 for the three months ended December 31, 2025 and 2024 was $445.2 million and $299.6 million, respectively, representing a gross margin1 of 66.9% and 62.9%, respectively. Gross profit1 for the year ended December 31, 2025 and 2024 was $1,493.2 million and $1,023.2 million, respectively, representing a gross margin1 of 64.7% and 60.3%, respectively. Natera had higher gross margin1 in the fourth quarter of 2025 and for the full year 2025 primarily as a result of higher revenues and continued progress in reducing cost of revenues associated with tests processed. Total operating expenses, representing research and development expenses and selling, general and administrative expenses, for the fourth quarter of 2025 was $466.5 million, compared to $364.4 million in the same period of the prior year, an increase of 28.0%. Total operating expense for the full year 2025 were $1,801.4 million, compared to $1,245.5 million in the same period of the prior year, an increase of 44.6%. The increases in both periods were primarily driven by headcount growth to support new product offerings as well as increases in consulting and legal expenses. Amortization of acquired intangible assets for the fourth quarter and full year of 2025 was $1.7 million. No such amortization occurred in the fourth quarter or full year of 2024.
Loss from operations for the fourth quarter of 2025 was $22.8 million compared to $64.7 million for the same period of the prior year. Loss from operations for full year 2025 was $309.9 million compared to $222.3 million for the same period of the prior year.
Natera’s net loss for the full year 2025 was $208.2 million, or ($1.52) per diluted share, compared to a net loss of $190.4 million, or ($1.53) per diluted share, in 2024. Weighted average shares outstanding were 136.7 million in the full year 2025 compared to 124.7 million for the same period in the prior year.
At December 31, 2025, Natera held approximately $1,076.1 million in cash, cash equivalents, short-term investments and restricted cash, compared to $968.3 million as of December 31, 2024. As of December 31, 2025, Natera had a total outstanding debt balance of $80.3 million including accrued interest under its line of credit with UBS at a variable interest rate of 30-day SOFR plus 50 bps.
Financial Outlook
Natera anticipates 2026 total revenue of $2.62 billion to $2.70 billion; 2026 gross margin1 to be approximately 63% to 65%; selling, general and administrative costs to be approximately $1.125 billion to $1.225 billion; research and development costs to be $750 million to $850 million; and net cash inflow to be positive3.
Test Volume Summary
Unit
Q4 2025
Q4 2024
FY 2025
FY 2024
Definition
Tests processed
923,600
792,800
3,525,500
3,064,600
Tests accessioned in our laboratory plus units processed outside of our laboratory
Tests accessioned
909,000
778,400
3,468,700
3,001,900
Test accessioned in our laboratory
Tests reported
892,400
771,700
3,342,500
2,926,400
Total tests reported
Tests reported in our laboratory
878,000
758,200
3,288,600
2,867,400
Total tests reported in our laboratory less units reported outside of our laboratory
About Natera
Natera™ is a global leader in cell-free DNA and precision medicine, dedicated to oncology, women’s health, and organ health. We aim to make personalized genetic testing and diagnostics part of the standard-of-care to protect health and inform earlier, more targeted interventions that help lead to longer, healthier lives. Natera’s tests are supported by more than 350 peer-reviewed publications that demonstrate excellent performance. Natera operates ISO 13485-certified and CAP-accredited laboratories certified under the Clinical Laboratory Improvement Amendments (CLIA) in Austin, Texas, and San Carlos, California, and through Foresight Diagnostics, its subsidiary, operates an ISO 27001-certified and CAP-accredited laboratory certified under CLIA in Boulder, Colorado. For more information, visit www.natera.com.
Conference Call Information
Event:
Natera’s Fourth Quarter and Full Year 2025 Financial Results Conference Call
Date:
Thursday, February 26, 2026
Time:
1:30 p.m. PT (4:30 p.m. ET)
Live Dial-In:
1-888-770-7321 (Domestic) 1-929-201-7107 (International)
Conference ID:
7684785
Webcast Link:
https://events.q4inc.com/attendee/730547572
Natera, Inc. Consolidated Balance Sheets (Unaudited) (in thousands, except shares)
December 31,
December 31,
2025
2024
(1)
Assets
Current assets:
Cash, cash equivalents and restricted cash
$
1,076,140
$
945,587
Short-term investments
—
22,689
Accounts receivable, net of allowance of $8,018 in 2025 and $7,259 in 2024
296,528
314,165
Inventory
68,443
44,744
Prepaid expenses and other current assets
55,828
48,635
Total current assets
1,496,939
1,375,820
Property and equipment, net
241,184
162,046
Operating lease right-of-use assets
108,541
86,149
Goodwill
141,070
—
Intangible assets
373,713
10,933
Other assets
36,897
25,787
Total assets
$
2,398,344
$
1,660,735
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
33,156
$
34,922
Accrued compensation
92,603
62,114
Contingent consideration payable, current portion
21,580
—
Deferred revenue, current portion
24,907
19,754
Short-term debt financing
80,323
80,362
Other accrued liabilities
188,659
146,893
Total current liabilities
441,228
344,045
Contingent consideration payable, long-term portion
96,780
—
Deferred tax liability, long-term portion
701
—
Operating lease liabilities, long-term portion
118,473
96,588
Deferred revenue, long-term portion
17,062
16,838
Other liabilities
11,687
7,844
Total liabilities
685,931
465,315
Commitments and contingencies
Stockholders’ equity:
Common stock (2)
14
12
Additional paid in capital
4,488,679
3,763,614
Accumulated deficit
(2,776,022
)
(2,567,862
)
Accumulated other comprehensive loss
(258
)
(344
)
Total stockholders’ equity
1,712,413
1,195,420
Total liabilities and stockholders’ equity
$
2,398,344
$
1,660,735
(1)
The consolidated balance sheet at December 31, 2024 has been derived from the audited consolidated financial statements at that date included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
(2)
As of December 31, 2025 and December 31, 2024, there were approximately 139,693,000 and 132,646,000 shares of common stock, respectively, issued and outstanding.
Natera, Inc. Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (in thousands, except per share data)
Year ended December 31,
2025
2024
2023
Revenues
Product revenues
$
2,295,820
$
1,685,074
$
1,068,522
Licensing and other revenues
10,293
11,837
14,049
Total revenues
2,306,113
1,696,911
1,082,571
Cost and expenses
Cost of product revenues
810,627
672,304
588,564
Cost of licensing and other revenues
2,306
1,449
1,267
Research and development
624,110
404,138
320,678
Selling, general and administrative
1,177,261
841,314
618,307
Amortization of acquired intangible assets
1,720
—
—
Total cost and expenses
2,616,024
1,919,205
1,528,816
Loss from operations
(309,911
)
(222,294
)
(446,245
)
Interest expense
(4,069
)
(10,685
)
(12,638
)
Interest and other income, net
45,891
43,248
24,353
Loss before income taxes
(268,089
)
(189,731
)
(434,530
)
Income tax benefit (expense)
59,929
(695
)
(271
)
Net loss
$
(208,160
)
$
(190,426
)
$
(434,801
)
Unrealized gain on available-for-sale securities and foreign currency translation adjustment
86
2,741
13,277
Comprehensive loss
$
(208,074
)
$
(187,685
)
$
(421,524
)
Net loss per share:
Basic and diluted
$
(1.52
)
$
(1.53
)
$
(3.78
)
Weighted-average number of shares used in computing basic and diluted net loss per share:
Basic and diluted
136,721
124,718
114,997
Contacts
Investor Relations Mike Brophy, CFO, Natera, Inc., 510-826-2350
Media Lesley Bogdanow, VP of Corporate Communications, Natera, Inc., [email protected]