Natera, Inc. reported fourth‑quarter 2025 revenue of $665.5 million, a 39.8% year‑over‑year increase, and full‑year revenue of $2.306 billion, up 35.9% from 2024. The growth was driven by a sharp rise in oncology test volume, which increased 54.7% year‑over‑year, and by a shift toward higher‑margin Signatera tests that helped lift overall revenue.
The company posted a Non‑GAAP earnings per share of $0.35, beating the consensus estimate of a loss of $(0.52) per share. The beat was largely a result of disciplined cost management and the continued expansion of the Signatera MRD test, which has higher pricing power and lower cost of revenue than many of the company’s other offerings.
Gross margin for the quarter reached 66.9%, a 4.0‑percentage‑point improvement over the prior year. The margin expansion reflects higher product volumes, a favorable mix shift toward the higher‑margin Signatera platform, and ongoing operational efficiencies that have reduced the cost of revenue as the business scales.
Operating cash flow for the full year 2025 was a positive $107.6 million, indicating that the company has moved from a decade of losses to a cash‑generating model. The first nine months of 2025 cash flow was not disclosed, but the full‑year figure demonstrates the company’s ability to generate cash from its growing test portfolio.
Management maintained its 2026 guidance, projecting revenue of $2.62 billion to $2.70 billion and a gross margin of 63%–65%. The unchanged guidance signals confidence that the company’s growth trajectory and margin expansion will continue, and that Medicare coverage for the Signatera test will unlock additional revenue streams.
The company highlighted continued investment in the DEFINE trial for early colorectal cancer detection and ongoing MRD clinical trials, underscoring its commitment to expanding the Signatera pipeline. These investments, coupled with the strong oncology test volume growth, position Natera to capture a larger share of the molecular diagnostics market while maintaining a robust balance sheet with $1.08 billion in cash and minimal debt.
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