A clinical genetics company that reads traces of DNA floating in the blood to detect cancer, screen pregnancies, and monitor transplanted organs — its best-known tests include Signatera for cancer recurrence, Panorama for prenatal screening, and Prospera for transplant rejection. It began in 2004 as Gene Security Network, born from a founder's personal loss when a relative's baby died days after birth with an undetected condition. The company later renamed itself Natera, a word meant to echo "birth," "nature," and "earth."
Natera's Q2 2026 revenue rose 38% to $752.8M, but operating loss widened as R&D spending rose 59%.
Natera's operating loss widened again even as growth accelerated. Revenue rose 37.7% to $752.8M, driven by a 56% increase in oncology test volumes and higher average selling prices, but R&D expense rose 59% to $439M for the half, pushing the to -10.1%. The company is spending heavily to extend its lead in molecular residual disease testing and early cancer detection, betting that the top-line growth will eventually outrun the costs.
Key takeaways
rose 37.7% to $752.8M, with product revenue up 38% on an 18% increase in reported test units and a 17% improvement in average selling price, driven by Signatera's growing mix and better payer coverage.
Oncology test volumes rose 56% to 554,800 units in the first half of 2026, extending the commercial expansion of the Signatera molecular residual disease test beyond reproductive health.
Operating loss widened to $75.8M from $43.9M a year earlier, as R&D expense rose 59% to $439M for the half on headcount growth, clinical trial investments for new products like early cancer detection, and higher lab-related costs.
Section summaries
Management's Discussion and Analysis
Total revenues grew 38% YoY to $1.45B in H1 2026, driven by Signatera volume and ASP gains, while net loss narrowed to $152M.
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Product revenues rose 38% to $1.44B on 18% higher reported units and a 17% ASP increase, fueled by Signatera's growing mix and improved payer coverage.
Oncology test volumes surged 56% to 554,800 units, reflecting continued commercial expansion of Signatera and its higher reimbursement rates.
Cost of product improved to 35.5% of product revenue from 36.8% a year earlier, benefiting from product mix shifts and $33.7M in favorable prior-period collection adjustments.
was $54.8M, up 45.8% , supported by $113M in favorable adjustments from prior-period tests, and cash and equivalents stood at $1.09B.
SG&A expenses rose 14% to $655M for the half, with higher compensation and marketing partially offset by a $57.5M decline in legal and consulting expenses.
What changed
The Q1 2026 watch item on whether the quarter-over-quarter operating loss widening would resume or reverse was answered: the operating loss narrowed to $75.8M in Q2 from $93.5M in Q1, though it remained wider than the $43.9M loss a year earlier.
The Q1 2026 watch item on oncology unit volume growth after the Foresight Diagnostics acquisition was confirmed: H1 2026 oncology units reached 554,800, putting the company on pace to exceed FY2025's 800,800.
No payment or reserve tied to the Ravgen or Guardant Health verdicts was disclosed in this filing, leaving those overhangs unresolved as appeals proceed.
of $54.8M in Q2 answered the Q1 watch item on whether positive operations would hold as R&D expense growth stayed above 60%: cash flow remained positive and rose 36.4% from Q1's $40.2M.
What to watch
Q3 2026 against Q2's -10.1% to see if the sequential improvement continues or if R&D spending growth re-accelerates the loss.
Full-year 2026 oncology unit volume against H1's 554,800 to confirm the growth rate holds above FY2025's 800,800 after the Foresight Diagnostics addition.
Any disclosed payment or reserve tied to the Ravgen or Guardant Health verdicts as appeals proceed, given the absence of an update in this filing.
Q3 2026 against Q2's $54.8M to see if positive operations hold as the company continues to invest heavily in clinical trials.
Cost of product revenues improved to 35.5% of product from 36.8%, benefiting from product mix shifts and $33.7M in favorable prior-period collection adjustments.
R&D expenses jumped 59% to $439M, driven by increased headcount, clinical trial investments for new products like early cancer detection, and higher lab-related costs.
SG&A rose 14% to $655M on higher compensation and marketing, partially offset by a $57.5M decline in legal and consulting expenses.
reached $95M, supported by $113M in favorable adjustments from prior-period tests, with $1.1B in cash and equivalents at quarter-end.
Quantitative and Qualitative Disclosures About Market Risk
Interest expense on the variable-rate credit line would rise $0.8M per 100bp rate increase; FX and inflation risks remain minimal.
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All $80.3M of gross debt outstanding under the Credit Line carries a variable rate tied to 30-day plus 0.5%, exposing the company to higher interest costs if rates rise.
A hypothetical 100-basis-point increase in the borrowing rate would lift annual by approximately $0.8 million based on the June 30, 2026 debt balance.
The investment portfolio is exposed to interest-rate changes on cash equivalents, but the company mitigates this by keeping a relatively short average maturity and held no investments at quarter-end.
Operations are conducted primarily in the United States; foreign-currency risk has been minimal to date and the company has not hedged it, though it may consider hedging as international activity grows.
Inflation has not materially affected the business so far, but the company warns that significant inflationary pressure could hurt demand, capital-raising ability, and cash flow if it cannot fully pass through higher costs.
From time to time, we are involved in legal proceedings. The results of such legal proceedings and claims cannot be predicted with certainty and regardless of the outcome, legal proceedings could have an adverse impact on us because of defense and settlement costs, diversion of…
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From time to time, we are involved in legal proceedings. The results of such legal proceedings and claims cannot be predicted with certainty and regardless of the outcome, legal proceedings could have an adverse impact on us because of defense and settlement costs, diversion of resources and other factors.
For information regarding certain current legal proceedings, see “Note 10—Commitments and Contingencies—Legal Proceedings” in the Notes to Unaudited Interim Condensed Consolidated Financial Statements, which is incorporated herein by reference.
Investing in our common stock involves a high degree of risk. In addition to the information set forth in this Quarterly Report on Form 10-Q, including the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated…
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Investing in our common stock involves a high degree of risk. In addition to the information set forth in this Quarterly Report on Form 10-Q, including the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and related notes, you should consider carefully the factors discussed in Part I, Item 1A, “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. The occurrence of any of the risks and uncertainties described in such Annual Report could materially and adversely affect our business, financial condition, results of operations and prospects. In that event, the price of our common stock could decline and you could lose part or all of your investment. Furthermore, such risks are not the only ones we face; additional risks and uncertainties not currently known or that we currently deem to be immaterial may also materially adversely affect our business, financial condition or results of operations.