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Investing.com -- Natera, Inc. (NASDAQ:NTRA), a cell-free DNA and precision medicine company, saw its shares surge 13.4% after reporting second-quarter financial results that significantly exceeded analyst expectations and raising its full-year outlook.
The company reported revenue of $546.6 million for the quarter ended June 30, 2025, soaring past the analyst consensus estimate of $475.91 million and representing a 32.2% increase from $413.4 million in the same period last year. However, Natera posted an adjusted loss of -$0.74 per share, worse than the -$0.62 per share analysts had expected.
Natera’s strong performance was driven by robust test volume growth, with approximately 853,100 tests processed during the quarter, up 12.2% YoY. Oncology testing showed particularly impressive growth, with approximately 188,800 tests performed, representing a 50.6% increase compared to the second quarter of 2024.
"We delivered outstanding results in the second quarter, with record Signatera growth and continued strength across our women’s health and organ health product lines," said Steve Chapman, chief executive officer of Natera.
The company raised its 2025 annual revenue outlook by $80 million at the midpoint, now expecting $2.02 billion to $2.10 billion, well above the analyst consensus of $1.977 billion. Natera maintained its current outlook for operating expenses while achieving a gross margin of 63.4%, up from 58.8% in the year-ago quarter.
Natera also reported positive cash flow of approximately $24.3 million in the second quarter, a significant milestone for the company. As of June 30, 2025, Natera held approximately $1.016 billion in cash, cash equivalents, short-term investments and restricted cash.
The company’s product revenues, which accounted for $544.4 million of total revenue, grew 32.3% compared to the second quarter of 2024, driven by increased test volume, improved average selling prices, and higher-than-expected cash receipts for tests delivered in prior quarters.
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