Natera (NTRA) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $502M, up 37% year-over-year, with 855,100 tests processed and record growth in Signatera clinical volumes, which rose 52% year-over-year and 16,500 units sequentially.

• Gross margin improved to 63.1% from 56.7% in Q1 2024, and $23M in positive cash flow was generated despite increased R&D and SG&A investments.

• Net loss was $66.9M, or ($0.50) per diluted share, nearly flat year-over-year despite higher operating expenses.

• Raised full-year 2025 revenue guidance to $1.94B–$2.02B, a $70M increase at the midpoint, and maintained a positive cash flow outlook.

• Strong clinical data readouts in organ health and oncology, including Prospera outperforming biopsy in heart transplant and significant new data for Signatera in breast cancer and sarcoma.

Financial highlights

• Product revenues were $500.0M, up from $364.7M in Q1 2024; total revenues were $501.8M, a 37% increase.

• Gross margin rose to 63.1%, a 640 bps increase year-over-year.

• Net loss per diluted share improved to ($0.50) from ($0.56) in Q1 2024.

• Cash and investments stood at $991.6M as of March 31, 2025.

• Operating cash flow was $44.5M, up from $27.0M in Q1 2024.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $1.94B–$2.02B, with gross margin expected at 60%–64%.

• SG&A guidance raised to $975M–$1.05B; R&D guidance increased to $550M–$590M.

• Plans to remain cash flow break-even or positive for the year.

• Existing cash and marketable securities expected to cover anticipated cash requirements for at least 12 months after May 8, 2025.