Natera shares drop 15% despite Q3 revenue beat

Natera (NTRA) had third-quarter revenue of $794.0 million, up 34.1% from $592.2 million a year earlier, and a loss of 42 cents per share that was wider than the 30 cents expected.

Shares fell 14.6% at 3:59 p.m. ET, from a $363.76 close.

Revenue of $794 million topped the $719 million consensus estimate. The loss per share was the wider of the two comparisons.

Here's how the company did:

• Revenue: $794.0 million vs. $592.2 million a year earlier, against $719 million expected
• Diluted loss per share: 42 cents vs. 64 cents a year earlier, against 30 cents expected
• Gross margin: 64.7% vs. 64.9% a year earlier
• Loss from operations: $68.3 million vs. $97.6 million a year earlier

Guidance

The company raised its 2026 revenue forecast to $3.005 billion to $3.035 billion, from the $2.85 billion to $2.91 billion it gave on Aug. 6.

The change lifts the midpoint of the annual revenue forecast by $140 million.

The company also expects 2026 gross margin of about 64% to 66%, selling, general and administrative costs of about $1.225 billion to $1.300 billion, and research and development costs of $825 million to $925 million.

The company expects cash flow to be positive for 2026.

Revenue has risen in each of the last three quarters, from $592.2 million in the third quarter of 2025 to $752.8 million in the second quarter of 2026.

Costs and volume

Total operating expenses rose 19.5% to $576.1 million from $482.0 million a year earlier.

The increase was primarily driven by headcount growth to support new product offerings, as well as higher clinical trial expenses.

Research and development expense was $242.4 million, against $173.4 million a year earlier. Selling, general and administrative expense was $333.7 million, against $308.5 million.

Amortization of acquired intangible assets was $5.7 million. No such amortization occurred in the third quarter of 2025.

Gross profit was $513.5 million, and gross margin was 64.7%, against 64.9% a year earlier.

Changes in estimates increased revenue by $32.3 million in the quarter, against $55.1 million in the third quarter of 2025. The company said the smaller change reflects the continued accumulation of historical collection experience.

Natera processed about 1,093,100 tests, up 22.3% from about 893,600 a year earlier.

Tests reported rose 23.0% to about 1,024,800 from about 832,900.

About 339,500 of the tests processed were oncology tests, up 60.9% from about 211,000.

Cash and net loss

Net loss was $59.9 million, compared with $87.5 million a year earlier.

Weighted average shares outstanding were 144.1 million, compared with 137.2 million a year earlier.

At Sept. 30, the company held about $1,097.2 million in cash, cash equivalents and restricted cash.

Total debt outstanding was $80.3 million, including accrued interest under its line of credit with UBS.