Seer Q2 Earnings Call Highlights

Seer’s second-quarter revenue fell year over year to $3.1 million from $4.1 million, pressured by academic and government funding constraints and longer commercial sales cycles. The company nevertheless reaffirmed 2026 revenue guidance of $16 million to $18 million. The company ended the quarter with $209.5 million in cash, equivalents and investments and reduced operating expenses to $18.3 million, though it still posted a $16.9 million net loss and negative first-half free cash flow of $25.3 million. Management highlighted expanding scientific validation and commercial efforts, including more than 95 Proteograph-related publications, progress on the 100,000-sample PRECISE-SG100K study, and a sales strategy focused on larger accounts and recurring consumable revenue.

Seer NASDAQ: SEER reported second-quarter revenue of $3.1 million, down from $4.1 million a year earlier but up from $2.8 million in the first quarter, as the proteomics company cited continued pressure on academic and government funding and longer sales cycles among some commercial customers. Chief Executive Officer and Chair Omid Farokhzad said the company believes its current revenue does not yet reflect the value of its Proteograph technology or the market it is seeking to develop. Seer ended the quarter with $209.5 million in cash, cash equivalents and investments, which Chief Financial Officer and President David Horn said the company believes is sufficient to reach cash-flow breakeven.

Seer reaffirmed its full-year 2026 revenue guidance of $16 million to $18 million, representing roughly 3% growth at the midpoint compared with 2025. Management said it expects customer interest, publications, population-scale study data and changes to its commercial organization to support stronger revenue in the second half.

Second-quarter product revenue was $2.3 million, consisting of Proteograph instrument and consumable-kit sales, while service revenue totaled $700,000. Other revenue, including lease and shipping revenue, was $100,000. Horn said revenue declined year over year because of lower product and service revenue amid macroeconomic headwinds in academic and government funding. He also cited extended customer evaluations that have lengthened sales cycles for certain commercial accounts. Still, the company saw higher consumable pull-through and STAC service revenue from the prior quarter. Seer views STAC, its service offering, as a potential leading indicator of future instrument placements. Of instruments shipped during the first half of 2026, one-third went to prior STAC customers and another one-third involved the company’s SIP program. In response to an analyst question, Horn said the SIP figures reflect both new instruments placed through the program and conversions of SIP instruments into customer-owned instruments.

Total gross profit was $1.5 million, translating to a 49% gross margin. That compared with 52% in the year-earlier quarter, although gross margin improved 1,300 basis points sequentially. Horn said quarterly margins can vary with the mix of instrument, consumable and service revenue, while the company continues to target long-term gross margins of 70% to 75% at scale. Operating expenses fell to $18.3 million from $22.6 million a year earlier. Research and development expense declined to $8.2 million from $12 million, while selling, general and administrative expense decreased to $10.1 million from $10.7 million. Seer reported a net loss of $16.9 million, compared with a $19.4 million loss in the second quarter of 2025. Free cash flow for the first six months of 2026 was negative $25.3 million, defined by the company as net cash used in oper...