Natera, Inc 10-Q for FY2025 Q1

Natera, Inc. (NTRA)

10-Q 2025-05-09 For: 2025-03-31

Added on April 10, 2026

About this 10-Q

Natera, Inc filed this 10-Q on May 9, 2025, covering the quarter ended March 31, 2025 (FY2025 Q1).

Headline figures

Quarter ended March 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $501.83M; up 36.5% from $367.74M a year earlier
Net loss: $66.94M; compared with a net loss of $67.6M a year earlier
Diluted EPS: -$0.50; compared with -$0.56 a year earlier

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Delaware	01-0894487
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered

Common Stock, par value $0.0001 per share	NTRA	The Nasdaq Stock Market LLC (Nasdaq Global Select Market)


Large accelerated filer	⌧	Accelerated filer	◻
Non-accelerated filer	◻	Smaller reporting company	◻
		Emerging growth company	◻


		Page

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Part I — Financial Information
	Item 1. Financial Statements (unaudited)	5
	Condensed Consolidated Balance Sheets at March 31, 2025 and December 31, 2024	5
	Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2025 and 2024	6
	Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2025 and 2024	7
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2025 and 2024	8
	Notes to Unaudited Interim Condensed Consolidated Financial Statements	9
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
	Item 3. Quantitative and Qualitative Disclosures About Market Risk	42
	Item 4. Controls and Procedures	43

Part II — Other Information
	Item 1. Legal Proceedings	43
	Item 1A. Risk Factors	44
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	44
	Item 3. Defaults Upon Senior Securities	44
	Item 4. Mine Safety Disclosures	44
	Item 5. Other Information	44
	Item 6. Exhibits	45
	Signatures	47


	March 31,		December 31,
	2025		2024
Assets
Current assets:
Cash, cash equivalents and restricted cash	$	973,768	$	945,587
Short-term investments		17,832		22,689
Accounts receivable, net of allowance of $7,434 and $7,259 at March 31, 2025 and December 31, 2024, respectively		318,233		314,165
Inventory		50,367		44,744
Prepaid expenses and other current assets, net		56,185		48,635
Total current assets		1,416,385		1,375,820
Property and equipment, net		180,453		162,046
Operating lease right-of-use assets		94,631		86,149
Other assets		40,897		36,720
Total assets	$	1,732,366	$	1,660,735
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	39,240	$	34,922
Accrued compensation		47,086		62,114
Other accrued liabilities		178,449		146,893
Deferred revenue, current portion		20,557		19,754
Short-term debt financing		80,345		80,362
Total current liabilities		365,677		344,045
Deferred revenue, long-term portion and other liabilities		23,958		24,682
Operating lease liabilities, long-term portion		103,056		96,588
Total liabilities		492,691		465,315

Commitments and contingencies (Note 8)

Stockholders’ equity:
Common stock, $0.0001 par value: 750,000 shares authorized at both March 31, 2025 and December 31, 2024; 135,932 and 132,646 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively		14		12
Additional paid-in capital		3,874,656		3,763,614
Accumulated deficit		(2,634,798)		(2,567,862)
Accumulated other comprehensive loss		(197)		(344)
Total stockholders’ equity		1,239,675		1,195,420
Total liabilities and stockholders’ equity	$	1,732,366	$	1,660,735


	Three months ended
	March 31,
	2025		2024

Revenues
Product revenues	$	500,036	$	364,672
Licensing and other revenues		1,794		3,069
Total revenues		501,830		367,741
Cost and expenses
Cost of product revenues		184,613		158,833
Cost of licensing and other revenues		452		307
Research and development		129,078		88,637
Selling, general and administrative		266,864		194,278
Total cost and expenses		581,007		442,055
Loss from operations		(79,177)		(74,314)
Interest expense		(1,005)		(3,124)
Interest and other income, net		13,419		10,267
Loss before income taxes		(66,763)		(67,171)
Income tax expense		(173)		(428)
Net loss	$	(66,936)	$	(67,599)
Unrealized gain on available-for-sale securities, net of tax		147		893
Comprehensive loss	$	(66,789)	$	(66,706)

Net loss per share (Note 12):
Basic and diluted	$	(0.50)	$	(0.56)
Weighted-average number of shares used in computing basic and diluted net loss per share:
Basic and diluted		134,750		120,814


	Three months ended March 31, 2025
	Common Stock			Additional Paid-in		Accumulated		Accumulated Other Comprehensive		Total Stockholders'
	Shares	Amount		Capital		Deficit		Loss		Equity
Balance as of December 31, 2024	132,646	$	12	$	3,763,614	$	(2,567,862)	$	(344)	$	1,195,420
Issuance of common stock upon exercise of stock options	50		—		544		—		—		544
Vesting of restricted stock units	3,014		2		—		—		—		2
Stock-based compensation	—		—		78,435		—		—		78,435
Issuance of common stock for bonus	222				32,063						32,063
Unrealized gain on available-for sale securities	—		—		—		—		147		147
Net loss	—		—		—		(66,936)		—		(66,936)
Balance as of March 31, 2025	135,932	$	14	$	3,874,656	$	(2,634,798)	$	(197)	$	1,239,675


	Three months ended March 31, 2024
	Common Stock			Additional Paid-in		Accumulated		Accumulated Other Comprehensive		Total Stockholders'
	Shares	Amount		Capital		Deficit		Loss		Equity
Balance as of December 31, 2023	119,581	$	11	$	3,145,837	$	(2,377,436)	$	(3,085)	$	765,327
Issuance of common stock upon exercise of stock options	792		—		6,466		—		—		6,466
Vesting of restricted stock units	1,591		1		—		—		—		1
Stock-based compensation	—		—		64,952		—		—		64,952
Issuance of common stock for bonus	270		—		24,071		—		—		24,071
Unrealized gain on available-for sale securities	—		—		—		—		893		893
Net loss	—		—		—		(67,599)		—		(67,599)
Balance as of March 31, 2024	122,234	$	12	$	3,241,326	$	(2,445,035)	$	(2,192)	$	794,111


	Balance at
	March 31,		December 31,
	2025		2024

	(in thousands)
Assets:
Accounts receivable, net	$	318,233	$	314,165
Liabilities:
Deferred revenue, current portion	$	20,557	$	19,754
Deferred revenue, long-term portion⁽¹⁾		16,705		16,838
Total deferred revenues	$	37,262	$	36,592


	March 31, 2025								December 31, 2024
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total

	(in thousands)
Financial Assets:
Cash, cash equivalents and restricted cash⁽¹⁾	$	973,768	$	—	$	—	$	973,768	$	945,587	$	—	$	—	$	945,587
Municipal securities		—		17,832		—		17,832		—		22,689		—		22,689
Total financial assets	$	973,768	$	17,832	$	—	$	991,600	$	945,587	$	22,689	$	—	$	968,276


	March 31, 2025								December 31, 2024
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Estimated Fair Value		Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Estimated Fair Value

	(in thousands)
Cash, cash equivalents and restricted cash⁽²⁾	$	973,768	$	—	$	—	$	973,768	$	945,587	$	—	$	—	$	945,587
Municipal securities⁽¹⁾		18,009		—		(177)		17,832		23,019		—		(330)		22,689
Total	$	991,777	$	—	$	(177)	$	991,600	$	968,606	$	—	$	(330)	$	968,276

Classified as:
Cash, cash equivalents and restricted cash⁽²⁾								973,768								945,587
Short-term investments								17,832								22,689
Total							$	991,600							$	968,276


		Total
		Fair Value		Unrealized Loss

	(in thousands)
Municipal securities			17,832		(177)
Total		$	17,832	$	(177)


		March 31,		December 31,
	Useful Life	2025		2024
		(in thousands)
Machinery and equipment	3-5 years	$	129,005	$	117,076
Computer equipment	3 years		3,287		3,178
Purchased and capitalized software held for internal use	3 years		14,587		13,178
Leasehold improvements	Lesser of useful life or lease term		48,883		48,569
Construction-in-process			71,271		58,461
			267,033		240,462
Less: Accumulated depreciation and amortization			(86,580)		(78,416)
Total property and equipment, net		$	180,453	$	162,046


	Operating Leases
	(in thousands)
As of March 31, 2025
2025 (remaining 9 months)	$	14,794
2026		20,287
2027		19,673
2028		19,779
2029		18,291
2030 and thereafter		56,602
Total future minimum lease payments		149,426
Less: imputed interest		(34,171)
Operating lease liabilities	$	115,255


Party	Commitments		Expiry Date
	(in thousands)
Laboratory instruments supplier	$	21,443	December 2027
Material suppliers		70,395	December 2026
Application service providers		4,733	January 2028
Cloud platform service provider		27,430	December 2028
Other material suppliers		44,570	Various
Total	$	168,571


	Three months ended March 31,
		2025		2024

	(in thousands)
Cost of revenues	$	5,270	$	3,777
Research and development		26,511		20,649
Selling, general and administrative		46,046		40,021
Total	$	77,827	$	64,447


		Weighted-
	Number of	Average
	Shares	Exercise
	Outstanding	Price

	(in thousands, except for per share data)
December 31, 2024	3,875	$	30.22
Options exercised	(50)	$	11.80
Options forfeited/cancelled	(3)	$	3.78
March 31, 2025	3,822	$	30.47



		Weighted-
		Average
		Grant Date
	Shares	Fair Value

	(in thousands, except for per share data)
Balance at December 31, 2024	10,593	$	61.28
Granted	2,721	$	171.72
Vested	(3,236)	$	59.65
Cancelled/Forfeited	(104)	$	74.42
Balance at March 31, 2025	9,974	$	86.75


	Three Months Ended
	March 31,				Change
	2025		2024		Amount		Percent

	(in thousands except percentage)
Revenues
Product revenues	$	500,036	$	364,672	$	135,364	37.1	%
Licensing and other revenues		1,794		3,069		(1,275)	(41.5)
Total revenues		501,830		367,741		134,089	36.5
Cost and expenses
Cost of product revenues		184,613		158,833		25,780	16.2
Cost of licensing and other revenues		452		307		145	47.2
Research and development		129,078		88,637		40,441	45.6
Selling, general and administrative		266,864		194,278		72,586	37.4
Total cost and expenses		581,007		442,055		138,952	31.4
Loss from operations		(79,177)		(74,314)		(4,863)	(6.5)
Interest expense		(1,005)		(3,124)		2,119	67.8
Interest and other income, net		13,419		10,267		3,152	30.7
Loss before income taxes		(66,763)		(67,171)		408	0.6
Income tax expense		(173)		(428)		255	59.6
Net loss	$	(66,936)	$	(67,599)	$	663	1.0	%


		Incorporated by Reference
Exhibit No.	Description	Form	File No.	Exhibit	Filing Date	Filed Herewith
10.1*+	Tenth Amendment to Supply Agreement, dated January 10, 2025, by and between the Registrant and Illumina, Inc.	10-K	001-37478	10.2.10	02/28/2025
31.1	Certification of Principal Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.					X
31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.					X
32.1†	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.					X
32.2†	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.					X
101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.					X
101.SCH	XBRL Taxonomy Extension Schema Document.					X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.					X
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.					X
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.					X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.					X

	NATERA, INC.

Date: May 8, 2025	By:	/ s / Steve Chapman
	Name:	Steve Chapman
	Title:	Chief Executive Officer, President, and Director
		(Principal Executive Officer)

	By:	/ s / Michael Brophy
	Name:	Michael Brophy
	Title:	Chief Financial Officer
		(Principal Financial and Accounting Officer)

3
Date: May 8, 2025	By:	/s/ Steve Chapman
	Name:	Steve Chapman
	Title:	Chief Executive Officer and President
		(Principal Executive Officer)

ovemb
Date: May 8, 2025	By:	/ s / Steve Chapman
	Name:	Steve Chapman
	Title:	Chief Executive Officer and President
		(Principal Executive Officer)