You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our unaudited condensed consolidated financial statements and related notes included in Part I, Item 1 of this report. Our actual results could differ materially from those discussed below. Factors that could cause or contribute to such differences include, but are not limited to, those identified below and those discussed in “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission on February 27, 2026. Overview We are a diagnostics company with proprietary molecular and bioinformatics technology that we are applying to change disease management worldwide. Our cell-free DNA ("cfDNA") technology combines our novel molecular assays, which reliably measure many informative regions across the genome, from samples as small as a single cell, with our statistical algorithms that incorporate data available from the broader scientific community to identify genetic variations, covering a wide range of serious conditions with high accuracy and coverage. We aim to make personalized genetic testing and diagnostics part of the standard of care to protect health and inform earlier and provide more targeted interventions that help lead to longer, healthier lives. We provide a comprehensive suite of products to improve patient care outcomes in three main areas of healthcare – oncology, women’s health, and organ health. We generate the majority of our revenues from the sale of Panorama, our non-invasive prenatal test (“NIPT”) and Horizon, our genetic carrier screening test. In addition to Panorama, our product offerings in women’s health include Fetal Focus, our noninvasive prenatal test for single-gene inherited conditions, Vistara, our single-gene NIPT that screens for conditions that may affect quality of life, and Anora, our test to help determine underlying reasons for occurrence of miscarriage, and Empower, our hereditary cancer screening test which we also offer through our oncology sales channel. In oncology, we offer Signatera, our personalized ctDNA blood test for MRD assessment, early recurrence monitoring, and evaluation of treatment response in patients previously diagnosed with cancer. We also offer Latitude, our blood-based MRD test for colorectal cancer that does not require a tumor tissue sample, as well as Altera, a comprehensive genomic profiling test to support treatment decisions and therapy selection. We process tests in our laboratories certified under the Clinical Laboratory Improvement Amendments of 1988, or CLIA, primarily in Austin, Texas and San Carlos, California; our laboratory in Boulder, Colorado performs clinical trials testing. A portion of our testing is performed by third-party laboratories. Our customers include independent laboratories, national and regional reference laboratories, medical centers and physician practices for our screening tests, and research laboratories and pharmaceutical companies. We market and sell our tests through our direct sales force and, for our women’s health tests, through our laboratory distribution partners. We bill clinics, laboratory distribution partners, patients, pharmaceutical companies and insurance payers for the tests we perform. In cases where we bill laboratory distribution partners, our partners in turn bill clinics, patients and insurers. The majority of our revenue comes from insurers with whom we have in-network contracts. Such insurers reimburse us for our tests pursuant to our in-network contracts with them, based on positive coverage determinations, which means that the insurer has determined that the test in general is medically necessary for this category of patient. In addition to offering tests to be performed at our laboratories, either directly or through our laboratory distribution partners, we also establish licensing arrangements with laboratories under Constellation, our cloud-based distribution model, whereby our laboratory licensees run the molecular workflows themselves and then access our bioinformatics algorithms through our cloud-based software. This cloud-based distribution model results in lower revenues and gross profit per test than cases in which we process a test ourselves; however, because we do not incur the costs of processing the tests, our costs per test under this model are also lower. The principal focus of our commercial operations is to offer our tests through both our direct sales force and laboratory distribution partners. The number of tests that we accession is a key indicator that we use to assess our business. A test is accessioned when we receive the test at our laboratory, the relevant information about the test is entered into our computer system, and the test sample is routed into the appropriate workflow. This number is a subset of the number of tests that we process. The number of tests that we process is a key metric as it tracks overall volume growth. During the six months ended June 30, 2026, we processed approximately 2,056,800 tests, comprised of approximately 2,028,600 tests accessioned in our laboratory, compared to approximately 1,708,200 tests processed, comprised of approximately 1,680,100 tests accessioned in our laboratory, during the six months ended June 30, 2025. This 36 Table of Contents increase in volume primarily represents continued commercial growth of Signatera, Panorama and Horizon, both as tests performed in our laboratories as well as through our Constellation software platform. The percent of our revenues attributable to our U.S. direct sales force for the six months ended June 30, 2026 was 95%, a decrease compared to 96% for the six months ended June 30, 2025. The percent of our revenues attributable to U.S. laboratory distribution partners for the six months ended June 30, 2026 was 3%, an increase compared to 2% from the same period in the prior year. Our ability to increase our revenues and gross profit will depend on our ability to further penetrate the U.S. market with our direct sales force. The percent of our revenues attributable to international laboratory distribution partners and other international sales for the six months ended in both June 30, 2026 and 2025 was 2%. For the six months ended June 30, 2026, total revenues were $1,449.4 million compared to $1,048.4 million in the six months ended June 30, 2025. Product revenues accounted for $1,441.8 million, nearly 99% of total revenues for the six months ended June 30, 2026 compared to $1,044.5 million, representing nearly 100% of total revenues for the six months ended June 30, 2025. For the six months ended June 30, 2026 and 2025, no customers exceeded 10% of the total revenues on an individual basis. Revenues from customers outside the United States were $24.3 million, representing approximately 2% of total revenues for the six months ended June 30, 2026. For the six months ended June 30, 2025, revenues from customers outside the United States were $18.3 million, representing approximately 2% of total revenues. Most of our revenues have been denominated in U.S. dollars, though we generate some revenue in foreign currency, primarily denominated in Euros and Singapore Dollars. Our net loss for the six months ended June 30, 2026 and 2025 was $152.1 million and $167.9 million, respectively. This included non-cash stock compensation expense of $198.2 million and $171.2 million for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, we had an accumulated deficit of $2.9 billion. Components of the Results of Operations Revenues Product Revenues We generate revenues from the sale of our tests, primarily from the sale of our Signatera, Panorama and Horizon tests. Our two primary distribution channels are our direct sales force and our laboratory partners. In cases where we promote our tests through our direct sales force, we generally bill directly to a patient, clinic or insurance carrier, or a combination of the insurance carrier and patient, for the fees. Sales of our clinical tests are recorded as product revenues. Revenues recognized from tests processed through our Constellation model, and from our strategic partnership agreements, are reported in licensing and other revenues. In cases where we sell our tests through our laboratory partners, the majority of our laboratory partners bill the patient, clinic or insurance carrier for the performance of our tests, and we are entitled to either a fixed price per test or a percentage of their collections. Our ability to increase our revenues will depend on our ability to further penetrate our core markets in oncology, organ health, and women’s health and, in particular, generate sales through our direct sales force, develop and commercialize additional tests, obtain reimbursement from additional third-party payers and maintain our reimbursement rates for tests performed. For example, we believe that the market for minimal residual disease (MRD) testing is significantly underpenetrated today, as Signatera was among the first of its kind of blood-based MRD personalized to be launched commercially in 2020. In order to further penetrate this market, we must continue to deliver excellent customer service, scale our laboratory operations, update the performance and features of our offering, and effectively communicate our offering to physicians via effective sales and marketing efforts. Beyond increasing volumes, an additional pathway to increasing revenues depends on increasing third party reimbursement for Signatera. Many third-party payers do not currently reimburse for Signatera, in part because Signatera is not yet broadly included in oncology clinical practice guidelines. In order to gain broader guideline inclusion, we will need to continue to publish positive clinical trial results in a wide array of cancer types. 37 Table of Contents Licensing and Other Revenues Revenues recognized from tests processed through our Constellation model and from our strategic partnership agreements are reported in licensing and other revenues. We also recognize licensing revenues through the licensing and the provisioning of services to support the use of our proprietary technology by licensees under our cloud-based distribution model. Our strategy to offer access to our algorithm to laboratory licensees via our Constellation cloud-based software platform may also cause our revenues to decrease because we do not process the tests and perform the molecular biology analysis in our own laboratory under this model, and therefore are not able to charge as high an amount and, as a result, realize lower revenues per test than when we perform the entire test ourselves. Cost of Product Revenues The components of our cost of product revenues are material and service costs, depreciation charges associated with testing equipment, personnel costs, including stock-based compensation expense, equipment and infrastructure expenses associated with testing samples, electronic medical records, order and delivery systems, shipping charges to transport samples, costs incurred from third party test processing fees, and allocated overhead such as rent, information technology costs, leasehold depreciation and utilities. Costs associated with Whole Exome Sequencing, are also included, as well as labor costs, relating to our Signatera CLIA and Signatera research use only offerings. Costs associated with performing tests are recorded when the test is accessioned. We expect cost of product revenues to increase as the number of tests we perform increases. As we continue to achieve scale, we have increased our focus on more efficient use of labor, automation, and DNA sequencing. For example, we updated the molecular and bioinformatics process for Panorama to further reduce the sequencing reagents, test steps and associated labor costs required to obtain a test result, while increasing the accuracy of the test to allow it to run with lower fetal fraction input. These improvements also reduced the frequency of the need to require blood redraws from the patient. Cost of Licensing and Other Revenues The components of our cost of licensing and other revenues are material costs associated with test kits sold to Constellation clients, development and support services relating to our strategic partnership agreements and other costs. We consider our cost of licensing and other revenues for the Constellation software platform to be relatively low, and therefore we expect its associated gross margin is higher. We expect our cost of licensing will increase in relation to volume growth. Expenses Research and Development Research and development expenses include costs incurred to develop our technology, collect clinical samples and conduct clinical studies to develop and support our products. These costs consist of personnel costs, including stock-based compensation expense; prototype materials; laboratory supplies; consulting costs; regulatory costs; electronic medical record set up costs; and costs associated with setting up and conducting clinical studies at domestic and international sites and allocated overhead, including rent, information technology, equipment depreciation and utilities. We expense all research and development costs in the periods in which they are incurred. We expect our research and development expenses to increase in absolute dollars as we continue to invest in research and development activities related to developing enhanced and new products. Selling, General and Administrative Selling, general and administrative expenses include executive, selling and marketing, legal, finance and accounting, human resources, billing and client services. These expenses consist of personnel costs, including stock-based compensation expense; direct marketing expenses; audit and legal expenses; consulting costs; training and medical 38 Table of Contents education activities; payer outreach programs and allocated overhead, including rent, information technology, equipment depreciation, and utilities. Interest Expense Interest expense is attributable to borrowing under our credit line with UBS (the “Credit Line”). Interest Income and Other (Expense) Income, Net Interest income and other (expense) income, net is comprised of interest earned on our cash; realized gains and losses on investments and assets, sublease rental income, and foreign currency remeasurement gains and losses. Critical Accounting Policies Our management’s discussion and analysis of our financial condition and results of operations is based on our financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported revenue generated, and expenses incurred during the reporting periods. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. We consider our critical accounting policies and estimates to be revenue recognition, stock-based compensation attributable to performance-based awards, and certain management assumptions used in the estimation of the fair value of intangible assets acquired in a business combination. There have been no material changes to our other critical accounting policies and estimates as compared to the disclosures in our Annual Report on Form 10-K for the year ended December 31, 2025. 39 Table of Contents Results of Operations Comparison of the three months ended June 30, 2026 and 2025 Three months ended June 30, Change 2026 2025 Amount Percent (in thousands except percentage) Revenues Product revenues $ 747,929 $ 544,427 $ 203,502 37.4 % Licensing and other revenues 4,821 2,173 2,648 121.9 Total revenues 752,750 546,600 206,150 37.7 Cost and expenses Cost of product revenues 266,597 199,531 67,066 33.6 Cost of licensing and other revenues 964 465 499 107.3 Research and development 228,071 146,427 81,644 55.8 Selling, general and administrative 327,203 310,549 16,654 5.4 Amortization of acquired intangible assets 5,707 — 5,707 100.0 Total cost and expenses 828,542 656,972 171,570 26.1 Loss from operations (75,792) (110,372) 34,580 (31.3) Interest expense (890) (1,029) 139 (13.5) Interest and other income, net 9,452 10,738 (1,286) (12.0) Loss before income taxes (67,230) (100,663) 33,433 (33.2) Income tax benefit (expense) 261 (275) 536 (194.9) Net loss $ (66,969) $ (100,938) $ 33,969 (33.7 %) Revenues Total revenues are comprised of product revenues, which are primarily driven by sales of our Panorama and Horizon tests, Signatera and other oncology testing, and licensing and other revenues, which primarily includes development licensing revenue and licensing of our Constellation software. Total revenues for the three months ended June 30, 2026 increased by $206.2 million, or 37.7%, when compared to the three months ended June 30, 2025. We derive our revenues from tests based on units reported to customers—tests delivered with a result. All reported units are either accessioned in our laboratories or processed outside of our laboratories. As noted in the section titled “Overview” above, the number of tests that we process is a key metric as it tracks our overall volume growth. During the three months ended June 30, 2026, total reported units were approximately 985,500, comprised of approximately 972,000 tests reported in our laboratories. Comparatively, during the three months ended June 30, 2025, total reported units were approximately 812,900, which is comprised of approximately 799,900 tests reported in our laboratory. During the three months ended June 30, 2026 and 2025, total oncology units processed were approximately 296,700 and 188,800, respectively. Product Revenues During the three months ended June 30, 2026, product revenues increased by $203.5 million, or 37.4%, compared to the three months ended June 30, 2025, as a result of the continued revenue growth from increased test volumes, and average selling price improvements. During the three months ended June 30, 2026, there was an increase in total reported units by approximately 172,600 units, or 21.2%, in comparison with the three months ended June 30, 2025. Average selling price (“ASP”, calculated as total product revenue divided by total reported units) increased during the three months ended June 30, 2026 by approximately 13.3% in comparison with the three months ended June 30, 2025. The increase in ASP was due to an increase in the proportion of product revenues derived from Signatera, which commands higher ASPs than our women's health products, and improved coverage from third party payers, primarily for Signatera. In addition, we recognized additional revenue as part of the change in estimate process due to excess collections for tests delivered in prior periods which were deemed probable that a significant reversal in the amount of cumulative revenue recognized will not 40 Table of Contents occur. This change in estimate increased revenues by approximately $7.0 million during the three months ended June 30, 2026 compared with the three months ended June 30, 2025. The total change in estimate recorded during the three months ended June 30, 2026 was $52.3 million. The increase in change in estimate was due to our continuous efforts to improve our revenue cycle management operations and workflows, including automation and the use of artificial intelligence, as well as stronger reimbursement overall. Licensing and Other Revenues Licensing and other revenues increased by $2.6 million, or 121.9%, during the three months ended June 30, 2026 when compared to the three months ended June 30, 2025. The increase was primarily due to an increase in revenue from our collaborative agreements. Cost of Product Revenues During the three months ended June 30, 2026, cost of product revenues increased compared to the three months ended June 30, 2025 by approximately $67.1 million, or 33.6%, primarily due to higher costs related to inventory consumption of $22.7 million, a $16.4 million increase in third-party fees, and a $12.5 million increase in other costs including equipment and related depreciation, shipping, and overhead expenses, all of which were driven by expansion of the business with an increase in accessioned cases by approximately 190,800 units, or 22.7%, during the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Additionally, labor costs increased $15.5 million due to the increase in hiring to support lab operations and increased volume of tests processed. Overall the cost of product revenues as a percent of total product revenues were 35.6% and 36.6% for the three months ended June 30, 2026 and 2025, respectively. The improvement was a result of a change in product mix where certain higher volume products have a lower cost per test, as well as a change in estimate related to collections for tests delivered in prior periods which were deemed probable that a significant reversal in the amount of cumulative revenue recognized will not occur, which increased revenue by approximately $7.0 million in the three months ended June 30, 2026 in comparison with the three months ended June 30, 2025. The increase in change in estimate was due to our continuous efforts to improve reimbursement from third party payors, including broader coverage for Signatera. Cost of Licensing and Other Revenues The cost of licensing and other revenues for the three months ended June 30, 2026 increased by $0.5 million, or 107.3%, compared to the three months ended June 30, 2025, primarily due to a net increase in costs to support our collaborative agreements. Expenses Research and Development (R&D) Research and development expenses during the three months ended June 30, 2026, increased by $81.6 million, or 55.8%, when compared to the three months ended June 30, 2025. The increase was attributable to a $28.3 million increase in salary and related compensation expenditures due to an increase in headcount (including a $6.7 million increase in stock-based compensation expense) to support clinical research, clinical publications, and development of our new products during the three months ended June 30, 2026 in comparison with the three months ended June 30, 2025, a $37.0 million increase in lab and clinical trial-related expenses where we continue investing in new product launches and clinical trials, such as early cancer detection, a $12.6 million increase in office related expenses, and a $3.7 million net increase in consulting, travel, facilities, and other expenses. Selling, General and Administrative (SG&A) Selling, general, and administrative expenses increased by $16.7 million, or 5.4%, during the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The increase was attributable to a $28.8 million increase in salary and related compensation expenditures due to an increase in headcount (including a $2.0 million increase in stock-based compensation expense) to support expanded general operations and billing during the three months ended June 30, 2026 in comparison with the three months ended June 30, 2025, a $18.9 million increase in marketing expenses to expand our market penetration and adoption, a $4.9 million net increase in travel expenses, and a $8.3 million net increase in certain facilities, office and other costs, offset by a $38.6 million decrease in legal and consulting expenses and a $5.6 million decrease for change in valuation of contingent consideration. 41 Table of Contents Amortization of Acquired Intangibles Amortization of acquired intangibles increased by $5.7 million, or 100.0%, in the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was attributed to the amortization of intangibles acquired as part of the business combination with Foresight Diagnostics. Interest Expense Interest expense slightly decreased in the three months ended June 30, 2026 compared to the same period in the prior year due to lower interest rates. Interest and Other Income Interest and other income for the three months ended June 30, 2026, decreased by $1.3 million, or 12.0%, compared to the same period in the prior year, primarily due to lower interest income driven by lower interest rates. Income Tax Benefit (Expense) Income tax benefit was $0.3 million for the three months ended June 30, 2026, compared to an income tax expense of $0.3 million for the three months ended June 30, 2025, primarily due to state taxes. Comparison of the six months ended June 30, 2026 and 2025 Six months ended June 30, Change 2026 2025 Amount Percent (in thousands except percentage) Revenues Product revenues $ 1,441,796 $ 1,044,463 $ 397,333 38.0 % Licensing and other revenues 7,598 3,968 3,630 91.5 Total revenues 1,449,394 1,048,431 400,963 38.2 Cost and expenses Cost of product revenues 511,800 384,143 127,657 33.2 Cost of licensing and other revenues 1,572 917 655 71.4 Research and development 438,773 275,504 163,269 59.3 Selling, general and administrative 655,142 577,414 77,728 13.5 Amortization of acquired intangible assets 11,416 — 11,416 100.0 Total cost and expenses 1,618,703 1,237,978 380,725 30.8 Loss from operations (169,309) (189,547) 20,238 (10.7) Interest expense (1,782) (2,034) 252 (12.4) Interest and other income, net 19,053 24,155 (5,102) (21.1) Loss before income taxes (152,038) (167,426) 15,388 (9.2) Income tax benefit (expense) (22) (448) 426 (95.1) Net loss $ (152,060) $ (167,874) $ 15,814 (9.4) % Revenues Total revenues are comprised of product revenues, which are primarily driven by sales of our Panorama and Horizon tests, oncology testing, and licensing and other revenues, which primarily includes development licensing revenue and licensing of our Constellation software. Total revenues for the six months ended June 30, 2026 increased by $401.0 million, or 38.2%, when compared to the six months ended June 30, 2025. 42 Table of Contents We derive our revenues from tests based on units reported to customers—tests delivered with a result. All reported units are either accessioned in our laboratory or processed outside of our laboratory. As noted in the section titled “Overview” above, the number of tests that we process is a key metric, as it tracks overall volume growth. During the six months ended June 30, 2026, total reported units were approximately 1,913,100, comprised of approximately 1,886,200 tests reported in our laboratory. Comparatively, during the six months ended June 30, 2025, total reported units were approximately 1,617,700, which is comprised of approximately 1,591,300 tests reported in our laboratory. During the six months ended June 30, 2026 and 2025, total oncology units processed were approximately 554,800 and 356,500, respectively. Product Revenues During the six months ended June 30, 2026, product revenues increased by $397.3 million, or 38.0%, compared to the six months ended June 30, 2025, primarily as a result of the continued revenue growth from increased test volumes, and average selling price improvements. During the six months ended June 30, 2026 there was an increase in reported units by approximately 295,400 units, or 18.3%, in comparison with the six months ended June 30, 2025. Average ASP increased during the six months ended June 30, 2026 by approximately 16.7% in comparison with the six months ended June 30, 2025. The increase in ASP was due to better reimbursement for our major products and an increase in the proportion of product revenues derived from Signatera, which commands higher ASPs than our women's health products. We also recognized additional revenue as part of the change in estimate process due to excess collections for the tests delivered in prior periods which were deemed probable that a significant reversal in the amount of cumulative revenue recognized will not occur. This change in estimate increased revenues by approximately $33.7 million during the six months ended June 30, 2026 compared with the six months ended June 30, 2025. The total change in estimate recorded during the six months ended June 30, 2026 was $113.3 million. The increase in change in estimate is due to our continuous efforts to improve our revenue cycle operations and workflows, including automation and the use of artificial intelligence, as well as stronger reimbursement overall. Licensing and Other Revenues Licensing and other revenues increased by $3.6 million, or 91.5%, during the six months ended June 30, 2026 when compared to the six months ended June 30, 2025. The increase was primarily due to an increase in revenue from our collaborative agreements. Cost of Product Revenues During the six months ended June 30, 2026, cost of product revenues increased compared to the six months ended June 30, 2025 by approximately $127.7 million, or 33.2%, due to a $29.6 million increase in third-party fees, higher costs related to inventory consumption of $44.5 million driven by expansion of the business with an increase in processed cases by approximately 348,600 units during the six months ended June 30, 2026 in comparison with the six months ended June 30, 2025. In addition, labor costs increased by $33.2 million due to the increase in hiring to support lab operations and increased volume of tests processed during the six months ended June 30, 2026 in comparison with the six months ended June 30, 2025, and shipping, equipment and related depreciation expense, overhead, and other related costs increased by $20.4 million driven by headcount growth and product support. Overall, the cost of product revenues as a percent of total product revenues were 35.5% and 36.8% for the six months ended June 30, 2026 and 2025, respectively. The reduction was primarily the result of a change in product mix where certain higher volume products have a lower cost per test. Additionally, the reduction was partially driven by a change in estimate related to excess cash collections for tests delivered in prior periods which were deemed probable that a significant reversal in the amount of cumulative revenue recognized will not occur, which resulted in an increase in revenue of approximately $33.7 million in the six months ended June 30, 2026 in comparison with the six months ended June 30, 2025. The increase in change in estimate was due to our continuous efforts to improve our revenue cycle operations and workflows, including automation and the use of artificial intelligence, as well as stronger reimbursement overall. Cost of Licensing and Other Revenues Cost of licensing and other revenues for the six months ended June 30, 2026, when compared to the six months ended June 30, 2025, increased by $0.7 million, or 71.4%, primarily due to a net increase in costs to support our collaborative agreements. 43 Table of Contents Expenses Research and Development Research and development expenses during the six months ended June 30, 2026, increased by $163.3 million, or 59.3%, when compared to the six months ended June 30, 2025. The increase was attributable to an increase of $66.0 million in salary and related compensation expenditures (including a $13.4 million increase in stock-based compensation expense) during the six months ended June 30, 2026 in comparison with the six months ended June 30, 2025 to support clinical research, clinical publications, and development of our new products, a $4.6 million increase in consulting expenses, a $22.3 million increase in office related expenses, a $65.1 million increase in lab related and clinical trial expenses where we continue investing in new product launches and clinical trials designed to accelerate guideline adoption, and a $5.3 million net increase in facilities, travel, and other expenses. Selling, General and Administrative Selling, general and administrative expenses increased by $77.7 million, or 13.5%, during the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase was attributable to an increase of $85.4 million in salary and related compensation expenditures (including a $11.2 million increase in stock-based compensation expense) during the six months ended June 30, 2026 in comparison with the six months ended June 30, 2025, a $25.3 million increase in marketing expenses for continued product expansion and market penetration, a $8.4 million increase in travel related costs, a $6.1 million increase in office costs, and a $10.0 million net increase in facilities and other costs, offset by a $57.5 million decrease in legal and consulting expenses. Amortization of Acquired Intangibles Amortization of acquired intangibles increased by $11.4 million, or 100.0%, in the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase was attributed to the amortization of intangibles acquired as part of the business combination with Foresight Diagnostics. Interest Expense Interest expense decreased $0.3 million, or 12.4%, in the six months ended June 30, 2026 compared to the same period in the prior year due to lower interest rates. Interest and Other Income Interest and other income for the six months ended June 30, 2026 decreased $5.1 million, or 21.1%, compared to the same period in the prior year, primarily due to a reduction in the revaluation of warrants and preferred shares along with lower interest income driven by lower interest rates. Income Tax Benefit (Expense) Income tax expense slightly decreased in the six months ended June 30, 2026, compared to the same period in the prior year, primarily due to state and foreign taxes. Liquidity and Capital Resources We have incurred net losses each year since our inception. For the six months ended June 30, 2026, we had a net loss of $152.1 million, and we expect to continue to incur net losses in future periods as we continue to devote a substantial portion of our resources to our research and development and commercialization efforts for our existing and new products. As of June 30, 2026, we had an accumulated deficit of $2.9 billion. As of June 30, 2026, we had $1.1 billion in cash and cash equivalents and restricted cash, and $80.3 million of outstanding balance on the Credit Line, including accrued interest. As of June 30, 2026, we have $20.0 million remaining and available on the Credit Line. While we have introduced multiple products that are generating revenues, these revenues have not been sufficient to fund all operations. Accordingly, we have funded the portion of operating costs that exceeds revenues through a combination of equity issuances and debt, and other financings. We expect to develop and commercialize future products and continue to invest in the growth of our business, and consequently, we will need to generate additional revenues to 44 Table of Contents achieve future profitability and may need to raise additional equity or incur additional debt. If we raise additional funds by issuing equity securities, our stockholders would experience dilution. Additional debt financing, if available, may involve covenants restricting our operations or our ability to incur additional debt. Any additional debt financing or additional equity that we raise may contain terms that are not favorable to us or our stockholders and requires significant debt service payments, which diverts resources from other activities. Additional financing may not be available at all, or in amounts or on terms acceptable to us. If we are unable to obtain additional financing, we may be required to delay the development and commercialization of our products and significantly scale back our business and operations. Our contractual obligations and other commitments have been satisfied by equity offerings, our convertible note financing conducted in April 2020, the Credit Line described below, and our product, licensing, and other sales. For our commitments, refer to the “Contractual Obligations and Other Commitments” section below. Refer to additional disclosures associated with risks and our ability to generate and obtain adequate amounts of cash to meet capital requirements for both short-term and long-term obligations. Based on our current business plan, we believe that our existing cash will be sufficient to meet our anticipated cash requirements for at least 12 months after the date of issuance of the accompanying financial statements. Credit Line Agreement In September 2015, we entered into a Credit Line with UBS, or the Credit Line, providing for a $50.0 million revolving line of credit which could be drawn in increments at any time. The Credit Line is secured by a first priority lien and security interest in our money market and marketable securities held in our managed investment account with UBS. UBS has the right to demand full or partial payment of the Credit Line obligations and terminate it, in its discretion and without cause, at any time. The interest rate is the 30-day Secured Overnight Financing Rate (or “SOFR”) average, plus 0.5%. The SOFR rate is variable. The Credit Line was subsequently changed from $50.0 million to $100.0 million. As of June 30, 2026, the total principal amount outstanding with accrued interest was $80.3 million, and $20.0 million is remaining and available under the Credit Line. Cash Flows The following table summarizes our condensed consolidated cash flows for the periods indicated: Six Months Ended June 30, 2026 2025 (in thousands) Cash provided by operating activities $ 94,964 $ 82,026 Cash used in investing activities (95,566) (40,712) Cash provided by financing activities 15,964 13,120 Net change in cash, cash equivalents and restricted cash 15,362 54,434 Cash, cash equivalents and restricted cash, beginning of period 1,076,140 945,587 Cash, cash equivalents and restricted cash, end of period $ 1,091,502 $ 1,000,021 Cash Provided by Operating Activities Overall, our cash flow position is significantly influenced by the timing of customer cash collections and the continued growth of the business. As our operations have expanded, including increased testing volumes, additional third-party vendors, and higher headcount, corresponding increases in operating cash outflows have occurred and are expected to continue. In addition, we invested heavily into research and development with focused efforts on building new products to support our patients, clinical trials to ensure our tests provide enhanced health benefits to patients and the ability to adopt clinical guidelines, and obtain test reimbursements from payors and patients. We expect to continue to invest heavily in research and development activities. During the six months ended June 30, 2026, our reported test units increased by 295,400 compared to the six months ended June 30, 2025. This growth resulted in higher revenue and an increase in accounts receivable of $125.4 45 Table of Contents million. The increase in accounts receivable is consistent with our normal revenue cycle, as cash collections are generally received over an average period of approximately six to nine months following the delivery of test results. Accounts payable, accrued compensation, and other accrued liabilities increased by an aggregate $138.7 million during the six-month period ended June 30, 2026. The increase primarily reflects the overall growth of the business, including higher expenditures for third-party vendors, consulting services, and employee-related costs where total employee headcount increased by approximately 1,000, to support expanded lab operations, research and development, clinical trials, billing and other critical functions, as well as normal timing differences between the recognition of expenses and the related cash payments. As discussed in Note 4, Revenue Recognition, during the six months ended June 30, 2026, we also recognized $113.3 million, as compared to $79.6 million for the six months ended June 30, 2025, related to favorable changes in estimate that increased revenue for tests delivered in prior periods that were deemed probable that a significant reversal in the amount of cumulative revenue recognized will not occur. This $33.7 million increase directly increased our cash provided by operating activities and helped fund our increased clinical trials, research and development expenses. To the extent we record a change in estimate that increases revenue for tests delivered in prior periods that were deemed probable that a significant reversal in the amount of cumulative revenue recognized will not occur, we expect to continue reinvesting into future clinical trials, research and development. During the six months ended June 30, 2025, cash provided by operating activities was $82.0 million. Operating cash flows benefited from approximately $79.6 million of cash collections related to favorable changes in estimates for tests delivered in prior periods that were deemed probable that a significant reversal in the amount of cumulative revenue recognized will not occur. In addition, accounts receivable decreased by $4.9 million as overall payor collections improved and cash collection cycles accelerated. Operating liabilities increased by approximately $65.4 million, primarily due to the timing of cash payments for operating expenses, which also contributed positively to operating cash flows. Cash Used in Investing Activities Cash used in investing activities for the six months ended June 30, 2026 totaled $95.6 million, comprised of $85.6 million in acquisitions of property and equipment to support expanded facilities to accommodate growth of the business and $10.0 million of investment in a related party. Cash used in investing activities for the six months ended June 30, 2025 totaled $40.7 million, comprised of $47.7 million in acquisitions of property and equipment to support expanded facilities to accommodate growth of the business offset by $7.0 million from proceeds of investments maturities. Cash Provided by Financing Activities Cash provided by financing activities for the six months ended June 30, 2026, totaled $16.0 million which was comprised of $4.7 million from proceeds from the exercise of stock options, and $16.4 million proceeds from the issuance of common stock under the employee stock purchase plan offset by a payment to process $5.0 million employment taxes from the issuance of common stock upon cashless exercise of stock options and $0.1 million of stock issuance costs. Cash provided by financing activities for the six months ended June 30, 2025, totaled $13.1 million which was comprised of $0.9 million from proceeds from the exercise of stock options and $12.2 million proceeds from the issuance of common stock under the employee stock purchase plan. Contractual Obligations and Other Commitments We have entered into arrangements that contractually obligate us to make payments that will affect our liquidity and cash flows in future periods. Such arrangements include those related to our lease commitments, Credit Line, commercial supply agreements and other agreements. Credit Line The short-term debt obligations consist of the $80.3 million principal amount drawn from the UBS Credit Line, or the Credit Line, and applicable interest. The Credit Line is secured by a first priority lien and security interest in our money market and marketable securities held in our managed investment account with UBS. We are required to maintain a minimum of at least $150.0 million in our UBS accounts as collateral which has been classified as cash, cash equivalents, 46 Table of Contents and restricted cash in the consolidated balance sheets. The interest rate is the 30-day SOFR average, plus 0.5%. The SOFR rate is variable. UBS has the right to demand full or partial payment of the Credit Line obligations and terminate it, in its discretion and without cause, at any time. Please refer to Note 12, Debt, for further details. Inventory purchase and other contractual obligations We enter into contracts in the normal course of business with various third parties for clinical trials, preclinical research studies, testing, manufacturing, and other services for operational purposes. Payments due upon cancellation generally consist only of payments for services provided or expenses incurred, including non-cancellable obligations of our service providers, up to the date of cancellation. These payments have not been included separately within these contractual and other obligations disclosures. Please refer to Note 10, Commitments and Contingencies, for further details. Operating leases Our future minimum lease payments consist of $200.8 million of payments, as described in Note 9, Leases, which excludes $0.4 million of lease commitments related to payments for leases executed but not yet commenced to be paid over the respective terms of such leases. The leases have not commenced under Accounting Standards Codification, or ASC, Topic 842, Leases (ASC 842), as of June 30, 2026. As a result, these leases are not reflected within the consolidated balance sheets. Off-Balance Sheet Arrangements We do not have any off-balance sheet arrangements during the periods presented. 47 Table of Contents