Adaptive Biotechnologies Q3 2025 slides: MRD business turns profitable as revenue surges 52%

Adaptive Biotechnologies Corp (NASDAQ:ADPT) delivered a strong financial performance in its third quarter of 2025, with its Minimal Residual Disease (MRD) business achieving profitability and significant revenue growth. The company’s stock closed at $16.92 following the earnings announcement on November 5, representing a 3.96% increase, and remains near its 52-week high of $17.89.

Quarterly Performance Highlights

Adaptive Biotechnologies reported total revenue of $60.2 million for Q3 2025 (excluding Genentech amortization), with MRD revenue reaching $56.8 million, representing a 52% year-over-year increase. The company achieved adjusted EBITDA of $28 million, a substantial improvement from -$14.3 million in the same period last year.

The company’s MRD business reached a significant milestone by becoming cash flow positive, with MRD adjusted EBITDA of $7 million ($0.5 million excluding milestones). This performance demonstrates the growing maturity and financial viability of Adaptive’s core business segment.

As shown in the following financial highlights slide:

The company also reported improvements in operational efficiency, with a 51% reduction in cash burn over the first nine months of 2025 compared to the same period in 2024. Adaptive maintained a strong cash position of approximately $217 million at the end of the quarter.

MRD Business Growth and Strategy

Adaptive’s clonoSEQ test volumes continued to show robust growth, increasing 38% year-over-year and 7% quarter-over-quarter. The company also reported a 28% year-over-year improvement in average selling prices (ASPs) for its U.S. clonoSEQ tests, reflecting expanded payer coverage and successful price increase implementations.

The following slide illustrates the consistent growth trajectory in test volumes:

The company’s healthcare provider network continues to expand, with 4,104 ordering physicians in Q3 2025, representing a 38% increase year-over-year. Approximately 45% of MRD tests were conducted using blood samples, and about 30% of tests were delivered in community settings, indicating growing adoption beyond academic centers.

A key strategic initiative for Adaptive has been the integration of its clonoSEQ test with electronic medical record (EMR) systems. The company has now integrated with 165 sites, including 46 academic institutions using Epic and 116 community centers using Flatiron.

The following slide details the EMR integration strategy:

This integration strategy is creating what the company describes as a "scalable moat" by embedding clonoSEQ into standard-of-care tools and protecting accounts from potential competitors.

Financial Analysis and Outlook

Based on its strong performance, Adaptive Biotechnologies raised its full-year 2025 MRD revenue guidance to between $202 million and $207 million, up from the previous range of $190 million to $200 million. This updated guidance represents 39% to 42% year-over-year growth.

The company also narrowed its operating expenses guidance to between $335 million and $340 million, down from the previous range of $335 million to $345 million, and improved its cash burn guidance to between $45 million and $50 million, from the previous range of $45 million to $55 million.

The following guidance update slide shows these improvements:

Gross margin for the company’s sequencing business improved significantly, reaching 66% in Q3 2025, a 10 percentage point increase year-over-year. This margin expansion, combined with controlled operating expenses, contributed to the company’s improved profitability profile.

Strategic Initiatives

In addition to its core MRD business, Adaptive is advancing its Immune Medicine (IM) segment with a focus on developing a TCR-antigen digital model and progressing its lead antibody candidate in autoimmunity.

The company is executing on its 2025 strategic priorities for the IM segment:

Adaptive is also strengthening its pharmaceutical partnerships, with a healthy backlog exceeding $200 million. The company’s MRD technology is being used in approximately 175 global active clinical trials, with 19 using it as a primary endpoint and 79 as a secondary endpoint.

The following slide illustrates the company’s pharmaceutical portfolio:

The company noted that over 60% of its current portfolio is in Multiple Myeloma (MM), and it is leveraging regulatory recommendations for using MRD as a primary endpoint in MM while initiating similar efforts for Chronic Lymphocytic Leukemia (CLL) and Diffuse Large B-Cell Lymphoma (DLBCL).

Adaptive also mentioned that it is winding down its Genentech agreement, which releases the company from exclusivity obligations and allows for greater flexibility in future partnerships.

With its MRD business now profitable and growing rapidly, Adaptive Biotechnologies appears well-positioned to continue its positive momentum into 2026, supported by expanding test volumes, increasing ASPs, and strategic initiatives in both clinical and pharmaceutical segments.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.