“We delivered strong first quarter results based on accelerating adoption of MRD across both clinical testing and drug development. Our performance reinforces our market leadership position and the differentiated value of our platform,” said
Recent Highlights
- Revenue for the first quarter of 2026 was
$70.9 million . The MRD business, which contributed 95% of revenue, grew 53% versus the first quarter of 2025. - clonoSEQ® test volume in the first quarter of 2026 increased 41% to 32,595 tests delivered versus the first quarter of 2025.
- Recognized
$9.0 million in MRD pharma regulatory milestone revenue, the firstU.S. primary endpoint milestone. - Raising full year 2026 MRD revenue guidance to a new range of
$260 million to$270 million , implying annual growth of 22% to 27%.
First Quarter 2026 Financial Results
Revenue was
Operating expenses for the first quarter of 2026 were
Interest and other income, net was
Net loss was
Adjusted EBITDA (non-GAAP) was a loss of
Cash, cash equivalents and marketable securities was 237.2 million as of
2026 Updated Financial Guidance
We expect full year total company operating expenses, including cost of revenue, to be between
Management will provide further details on the outlook during the conference call.
Webcast and Conference Call Information
About
Forward-Looking Statements
This press release contains forward-looking statements that are based on management’s beliefs and assumptions and on information currently available to management. All statements contained in this release other than statements of historical fact are forward-looking statements, including statements regarding our ability to develop, commercialize and achieve market acceptance of our current and planned products and services, our research and development efforts and other matters regarding our business strategies, use of capital, results of operations and financial position and plans and objectives for future operations.
In some cases, you can identify forward-looking statements by the words “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties and other factors are described under "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in the documents we file with the Securities and Exchange Commission from time to time. We caution you that forward-looking statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. As a result, the forward-looking statements may not prove to be accurate. The forward-looking statements in this press release represent our views as of the date hereof. We undertake no obligation to update any forward-looking statements for any reason, except as required by law.
Use of Non-GAAP Financial Measure
To supplement our unaudited condensed consolidated statements of operations and unaudited condensed consolidated balance sheets, which are prepared in conformity with generally accepted accounting principles in
Management uses Adjusted EBITDA, including segment Adjusted EBITDA, to evaluate the financial performance of our business and segments and to evaluate the effectiveness of our strategies. We present these figures because we believe it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry and it facilitates comparisons on a consistent basis across reporting periods. Further, we believe it is helpful in highlighting trends in our operating results because it excludes items that are not indicative of our core operating performance.
Adjusted EBITDA, including segment Adjusted EBITDA, has limitations as an analytical tool and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. We may in the future incur expenses similar to the adjustments we make. In particular, we expect to incur meaningful share-based compensation expense in the future. Other limitations include that Adjusted EBITDA, including segment Adjusted EBITDA, does not reflect:
- all expenditures or future requirements for capital expenditures or contractual commitments;
- changes in our working capital needs;
- interest expense, which is an ongoing element of our costs to operate;
- income tax (expense) benefit, which may be a necessary element of our costs and ability to operate;
- the costs of replacing the assets being depreciated and amortized, which will often have to be replaced in the future;
- the noncash component of employee compensation expense;
- long-lived assets impairment costs; and
- the impact of earnings or charges resulting from matters we consider not to be reflective, on a recurring basis, of our ongoing operations, such as our restructuring activities and reductions in workforce.
In addition, Adjusted EBITDA, including segment Adjusted EBITDA, may not be comparable to similarly titled measures used by other companies in our industry or across different industries.
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Condensed Consolidated Statements of Operations (in thousands, except share and per share amounts) (unaudited) | ||||||||
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Revenue | $ | 70,874 | $ | 52,443 | ||||
| Operating expenses | ||||||||
| Cost of revenue | 18,708 | 16,979 | ||||||
| Research and development | 23,623 | 24,203 | ||||||
| Sales and marketing | 26,346 | 23,047 | ||||||
| General and administrative | 20,984 | 17,399 | ||||||
| Amortization of intangible assets | 419 | 419 | ||||||
| Total operating expenses | 90,080 | 82,047 | ||||||
| Loss from operations | (19,206 | ) | (29,604 | ) | ||||
| Interest and other income, net | 2,080 | 2,679 | ||||||
| Interest expense | (2,889 | ) | (2,905 | ) | ||||
| Net loss | (20,015 | ) | (29,830 | ) | ||||
| Add: Net income attributable to noncontrolling interest | (18 | ) | (22 | ) | ||||
| Net loss attributable to | $ | (20,033 | ) | $ | (29,852 | ) | ||
| Net loss per share attributable to | $ | (0.13 | ) | $ | (0.20 | ) | ||
| Weighted-average shares used in computing net loss per share attributable to | 155,521,048 | 149,195,028 | ||||||
Condensed Consolidated Balance Sheets (in thousands, except share and per share amounts) | ||||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 77,581 | $ | 70,495 | ||||
| Short-term marketable securities (amortized cost of | 140,753 | 156,485 | ||||||
| Accounts receivable, net | 48,315 | 50,365 | ||||||
| Inventory | 11,206 | 9,820 | ||||||
| Prepaid expenses and other current assets | 13,952 | 13,020 | ||||||
| Total current assets | 291,807 | 300,185 | ||||||
| Long-term assets | ||||||||
| Property and equipment, net | 30,774 | 34,107 | ||||||
| Operating lease right-of-use assets | 40,248 | 40,616 | ||||||
| Long-term marketable securities (amortized cost of | 18,889 | 13,234 | ||||||
| Restricted cash | 2,709 | 2,689 | ||||||
| Intangible assets, net | 1,307 | 1,726 | ||||||
| 118,972 | 118,972 | |||||||
| Other assets | 1,237 | 1,207 | ||||||
| Total assets | $ | 505,943 | $ | 512,736 | ||||
| Liabilities and shareholders’ equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 9,615 | $ | 6,467 | ||||
| Accrued liabilities | 7,465 | 7,700 | ||||||
| Accrued compensation and benefits | 6,217 | 16,992 | ||||||
| Current portion of operating lease liabilities | 8,513 | 8,920 | ||||||
| Current portion of deferred revenue | 49,397 | 45,194 | ||||||
| Current portion of revenue interest liability, net | 5,804 | 4,642 | ||||||
| Total current liabilities | 87,011 | 89,915 | ||||||
| Long-term liabilities | ||||||||
| Operating lease liabilities, less current portion | 69,115 | 70,228 | ||||||
| Deferred revenue, less current portion | 807 | 1,006 | ||||||
| Revenue interest liability, net, less current portion | 124,749 | 126,566 | ||||||
| Other long-term liabilities | 20 | 20 | ||||||
| Total liabilities | 281,702 | 287,735 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ equity | ||||||||
| Preferred stock: | — | — | ||||||
| Common stock: | 16 | 15 | ||||||
| Additional paid-in capital | 1,599,708 | 1,581,848 | ||||||
| Accumulated other comprehensive (loss) gain | (28 | ) | 253 | |||||
| Accumulated deficit | (1,383,356 | ) | (1,363,323 | ) | ||||
| 216,340 | 218,793 | |||||||
| Noncontrolling interest | 7,901 | 6,208 | ||||||
| Total shareholders’ equity | 224,241 | 225,001 | ||||||
| Total liabilities and shareholders’ equity | $ | 505,943 | $ | 512,736 | ||||
Adjusted EBITDA
The following is a reconciliation of net loss attributable to
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Net loss attributable to | $ | (20,033 | ) | $ | (29,852 | ) | ||
| Interest and other income, net | (2,080 | ) | (2,679 | ) | ||||
| Interest expense | 2,889 | 2,905 | ||||||
| Depreciation and amortization expense | 3,837 | 4,731 | ||||||
| Impairment of long-lived assets | 347 | — | ||||||
| Restructuring expense | 643 | — | ||||||
| Share-based compensation expense | 11,928 | 12,147 | ||||||
| Adjusted EBITDA | $ | (2,469 | ) | $ | (12,748 | ) | ||
Segment Information (Including Segment Adjusted EBITDA)
The following sets forth segment information for the periods presented (in thousands, unaudited):
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| MRD: | ||||||||
| Revenue | $ | 67,093 | $ | 43,721 | ||||
| Adjusted EBITDA | 12,138 | (4,111 | ) | |||||
| Reconciliation of Net Income (Loss) to Adjusted EBITDA: | ||||||||
| Net income (loss) | $ | 3,362 | $ | (12,238 | ) | |||
| Depreciation and amortization expense | 2,381 | 2,663 | ||||||
| Impairment of long-lived assets | — | — | ||||||
| Restructuring expense | 248 | — | ||||||
| Share-based compensation expense | 6,147 | 5,464 | ||||||
| Adjusted EBITDA | $ | 12,138 | $ | (4,111 | ) | |||
| Immune Medicine(1): | ||||||||
| Revenue | $ | 3,781 | $ | 8,722 | ||||
| Adjusted EBITDA | (10,360 | ) | (5,106 | ) | ||||
| Reconciliation of Net Loss to Adjusted EBITDA: | ||||||||
| Net loss | $ | (15,929 | ) | $ | (10,919 | ) | ||
| Depreciation and amortization expense | 1,005 | 1,623 | ||||||
| Impairment of long-lived assets | 347 | — | ||||||
| Restructuring expense | 395 | — | ||||||
| Share-based compensation expense | 3,822 | 4,190 | ||||||
| Adjusted EBITDA | $ | (10,360 | ) | $ | (5,106 | ) | ||
(1) Expenses related to
