Genetic testing company Natera (NASDAQ:NTRA). reported Q1 CY2025 results beating Wall Street’s revenue expectations , with sales up 36.5% year on year to $501.8 million. The company’s full-year revenue guidance of $1.98 billion at the midpoint came in 4% above analysts’ estimates. Its non-GAAP loss of $0.50 per share was 24.2% above analysts’ consensus estimates.

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Natera (NTRA) Q1 CY2025 Highlights:

Revenue: $501.8 million vs analyst estimates of $446.1 million (36.5% year-on-year growth, 12.5% beat)

Adjusted EPS: -$0.50 vs analyst estimates of -$0.66 (24.2% beat)

Adjusted EBITDA: -$69.94 million vs analyst estimates of -$79.46 million (-13.9% margin, 12% beat)

The company lifted its revenue guidance for the full year to $1.98 billion at the midpoint from $1.91 billion, a 3.7% increase

Operating Margin: -15.8%, up from -20.2% in the same quarter last year

Sales Volumes rose 19.3% year on year (17.2% in the same quarter last year)

Market Capitalization: $22.42 billion

StockStory’s Take

Natera’s first quarter results were driven by significant growth in its oncology and women’s health testing businesses. Management highlighted that volumes for Signatera, the company’s minimal residual disease (MRD) test, grew 52% year-over-year, supported by expanded clinical utility and broad adoption among oncologists. CEO Steve Chapman attributed the robust performance to strong demand for Natera’s technology and the rollout of new data supporting its clinical applications. Additionally, the women’s health segment delivered exceptional sequential growth, extending positive momentum from the prior year. CFO Michael Brophy noted that improvements in reimbursement operations further contributed to margin expansion, with gross margins rising due to higher average selling prices (ASPs) across all segments.

Looking ahead, management’s guidance is underpinned by expectations for continued gains in test reimbursement and new clinical data releases, particularly for Signatera. Steve Chapman emphasized the importance of upcoming data readouts from studies in breast, colorectal, and other cancers, which Natera believes will support broader adoption and potentially higher ASPs. Brophy cautioned that while gross margin guidance remains unchanged, the company plans to invest heavily in clinical trials and commercial capacity to support long-term growth. As Chapman stated, “2025 is a crucial investment year for us, particularly around Signatera, as we see a path to more than $5 billion in annual revenue over time.”