Natera Q3 2026 Earnings: Revenue Rises 34% as Net Loss Narrows

Natera (NASDAQ: NTRA) reported Q3 2026 revenue of $794.0 million, up 34.1% from $592.2 million a year earlier, while diluted EPS improved to -$0.42 from -$0.64. Higher test volume and average selling prices drove revenue growth, helping narrow the net loss even as the company continued investing in new products and clinical trials. Natera also raised the midpoint of its full-year revenue guidance by $140 million.

Core Results

Revenue grew faster than test volume, reflecting contributions from both higher volumes and improved average selling prices. R&D and SG&A expenses increased 19.5%, substantially less than revenue, which reduced both operating and net losses.

Gross profit increased broadly in line with revenue, although GAAP gross margin declined slightly because revenue estimate adjustments provided a smaller benefit than in the prior-year quarter.

All figures in the table are GAAP measures. Q3 2026 also included $5.7 million of acquired intangible asset amortization, compared with none in Q3 2025.

Test Volume and Oncology Growth

Total processed tests increased 22.3%, while tests reported rose 23.0%. Because revenue expanded 34.1%, the results support Natera’s statement that improved average selling prices contributed alongside volume growth.

Oncology was the fastest-growing disclosed testing category. Oncology test volume rose 60.9%, and clinical molecular residual disease oncology units increased by 32,700 from Q2 2026.

The gap between processed and reported tests reflects differences in the timing of test processing and the delivery of results to customers.

Lower True-Up Benefits Masked Sequential Margin Improvement

Changes in revenue estimates increased Q3 2026 gross profit by $32.3 million and added 1.5 percentage points to gross margin. In Q3 2025, those adjustments contributed $55.1 million and 3.6 percentage points, respectively. The smaller benefit explains why reported gross margin slipped despite higher revenue and progress in reducing cost of revenue.

Excluding changes in revenue accrual estimates, non-GAAP gross margin improved by approximately 1.4 percentage points from Q2 2026. This indicates better sequential underlying cost performance, even though the GAAP year-over-year comparison was affected by lower true-up benefits.

R&D expense increased to $242.4 million from $173.4 million, primarily because of headcount added to support new products and higher clinical trial expenses. SG&A expense rose more moderately to $333.7 million from $308.5 million. Revenue growth outpacing these investments was the main reason the operating loss narrowed.

Cash and Balance Sheet

Cash, cash equivalents and restricted cash totaled $1.097 billion at September 30, 2026, an increase of approximately $5.7 million from June 30 and up from $1.076 billion at the end of 2025. Outstanding debt was $80.3 million, including accrued interest under Natera’s UBS credit line.

Accounts receivable increased to $471.4 million from $296.5 million at year-end, while inventory rose to $91.7 million from $68.4 million. The release did not provide a quarterly operating cash-flow figure, so collections and working-capital conversion remain important when assessing the company’s full-year positive cash-flow target.

2026 Guidance

Natera raised its full-year revenue range to $3.005 billion to $3.035 billion from $2.850 billion to $2.910 billion. The midpoint increased from $2.880 billion to $3.020 billion, a $140 million revision.

The company also expects a 64% to 66% gross margin and positive cash flow for 2026 while continuing to fund R&D and commercial operations.

Recent Insider Transactions

The supplied insider data shows 47,496 shares purchased through 12 transactions over the preceding six months, compared with 579,893 shares sold through 59 transactions. That resulted in net sales of 532,397 shares, while total insider holdings were listed at approximately 3.93 million shares.

The 10 most recent reported transactions were all direct sales with a combined reported value of approximately $7.23 million. The transaction records do not establish the reasons for those sales.

Risks Investors Should Watch

• Revenue-estimate volatility: Changes in estimates of variable consideration continue to affect reported revenue, gross profit and gross margin. The smaller Q3 benefit made the year-over-year GAAP margin comparison less favorable.
• Continued operating losses: Natera narrowed its losses, but R&D and SG&A expenses remained above gross profit. Further progress depends on revenue continuing to grow faster than operating costs.
• Volume and reimbursement dependence: Q3 growth relied on higher test volumes and improved average selling prices. Slower adoption or lower reimbursement could affect both revenue growth and margins.
• Cash conversion: Cash increased sequentially, but accounts receivable and inventory were materially higher than at year-end. Converting reported revenue into cash will be important to meeting the positive cash-flow outlook.

Summary

Natera’s Q3 2026 results combined 34.1% revenue growth with rapid oncology test expansion and narrower operating and net losses. Lower revenue true-up benefits weighed on the reported gross margin, but the underlying non-GAAP margin improved sequentially. The raised annual revenue outlook shifts attention to continued oncology growth, expense discipline and whether stronger operating results translate into sustained positive cash flow.