Natera Q2 Earnings Call Highlights

Natera NASDAQ: NTRA reported second-quarter 2026 revenue of approximately $753 million, up about 38% from a year earlier, as record testing volumes and higher average selling prices supported growth across its oncology, women’s health and organ health businesses.

The company processed approximately 1.044 million tests during the quarter, its second consecutive quarter above 1 million units.

Clinical molecular residual disease, or MRD, testing volume reached 283,000 units, up about 56% from the prior-year period and 34,000 units higher than in the first quarter.

Natera raised its full-year revenue outlook to a range of $2.85 billion to $2.91 billion, increasing the midpoint by $100 million.

The updated outlook implies approximately 31% annual revenue growth excluding revenue true-ups, according to management.

The company held its operating-expense outlook steady.

Second-quarter revenue included about $52 million of revenue true-ups, which management said were declining both in dollar terms and as a share of revenue.

Excluding those true-ups, revenue increased about 40% year over year.

Gross margin was approximately 65%, aided by improved average selling prices.

Signatera’s average selling price rose to roughly $1,275, as the company cited more consistent reimbursement from Medicare Advantage and commercial insurers in states with biomarker legislation.

Management said it continues to target a mature Signatera average selling price of about $2,000 over the long term.

Chief Financial Officer Mike Brophy said the company’s full-year guidance assumes stable Signatera pricing through the remainder of 2026, though an upside case could include another roughly $25 of sequential price improvement.

Natera also reported positive cash inflow during the quarter and a narrower loss per share.

Days sales outstanding declined by roughly four days sequentially to an average of 57 days, Brophy said.

The company highlighted several developments for Signatera, its tumor-informed MRD test.

In May, the FDA approved Signatera as a companion diagnostic for patients with muscle-invasive bladder cancer, which Natera described as the first FDA approval of an MRD test as a companion diagnostic.

In June, Japan’s Pharmaceuticals and Medical Devices Agency approved Signatera for colorectal cancer.

Natera expects a commercial launch in Japan later in 2026, pending final pricing and reimbursement decisions.

The company also submitted Signatera for Japanese approval as a companion diagnostic in bladder cancer and expects a decision later this year or in early 2027.

In July, Signatera received IVDR certificati.