Natera, Inc.

Hello, everyone. Thank you for joining us and welcome to Natera's second quarter 2026 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Michael Brophy, Chief Financial Officer. Michael. Please go ahead.

Thanks, operator. Good afternoon. Thank you for joining our conference call to discuss the results of our second quarter of 2026. On the line, I'm joined by Steve Chapman, our CEO, Solomon Moshkevich, President, Clinical Diagnostics, and Alex Alessian, General Manager of Oncology and our Chief Medical Officer. Today's conference call is being broadcast live via webcast. We will be referring to a slide presentation that has been posted to investor.natera.com. A replay of the call will also be posted to our IR site as soon as it's available. Starting on slide two, during the course of this conference call, we will make forward-looking statements regarding future events and our anticipated future performance, such as our operational and financial outlook and projections, our assumptions for that outlook, market size, partnerships, clinical studies, and expected results, opportunities, and strategies, and expectations for various current and future products, including product capabilities, expected release dates, Reimbursement coverage and related effects on our financial and operating results. We caution you that such statements reflect our best judgment based on factors currently known to us and that actual events or results could differ materially. Please refer to the documents we file from time to time with the SEC, including our most recent Form 10-K or 10-Q and the Form 8-K filed with today's press release. Those documents identify important risks and other factors that may cause our actual results to differ materially from those contained in or suggested by the forward-looking statements. Forward-looking statements made during the call are being made as of today, August 6, 2026. If this call is replayed or reviewed after today, the information presented during the call may not contain current or accurate information. This error disclaims any obligation to update or revise any forward-looking statements. We will provide guidance on today's call, but will not provide any further guidance or updates on our performance during the quarter unless we do so in a public forum. We will quote a number of numeric or growth changes as we discuss our financial performance. And unless otherwise noted, each such reference represents a year-on-year comparison. And now I'd like to turn the call over to Steve. Steve?

Great. Thanks, Mike. Let's get to the highlights on the next slide. We had an exceptional quarter. We processed approximately 1,044,000 tests in the second quarter, once again exceeding 1 million units and setting a new company record with strong volume performance across the business. In oncology, we processed 283,000 clinical MRD units, representing year-over-year growth of approximately 56% compared to Q2 of 2025. The clinical MRD volumes grew 34,000 units over Q1, which is the largest sequential increase to date. Beyond volume growth, we met several crucial milestones in oncology. Signatera became the first MRD test to get U.S. FDA approval as a companion diagnostic and the first MRD test to get Japanese PMDA approval. In addition, the NCCN Guideline Committee issued a Category 1 recommendation We generated approximately $753 million in revenue in the quarter, which represents approximately 38% growth over Q2 of last year. Ex-revenue true-ups or revenues grew approximately 40% year-on-year. Growth margins were strong again at approximately 65%, driven by another quarter of sequential improvement in ASPs. We were also pleased to generate positive cash inflow again this quarter and trim operating losses while continuing to invest in growth initiatives and R&D. On the guide, we are in a position to completely reset the revenue range, raising it by $100 million at the midpoint. Our new range is $2.85 billion to $2.91 billion in revenues, and we are holding OPEX steady. The guide implies 31% revenue growth this year, extra ups, and we feel very good about hitting this range. We are clearly on a roll, and I'm excited to review the progress since our call in May. Okay, let's get into some of the business trends on the next slide. I think the growth of total tests over time is remarkable when you look at the longer term picture here in the chart. In the quarter, women's health results were particularly strong on a seasonally adjusted basis with high single digit growth versus Q2 of last year. Q2 is typically our softest quarter for women's health due to seasonality, but we counteracted that effect this year with particularly strong new account wins driven by fetal focused adoption and early returns on the launch of our newly enhanced panorama test. We think this puts us in a strong position to continue executing in women's health for the rest of the year. We also had another strong organ health quarter as volume continued to ramp. And then of course, we had our best quarter yet for Signatera. The next slide shows our clinical oncology units over time. As a reminder, that's primarily Cigna Terra clinical units, but also includes a small number of latitude cases. Our sequential growth of 34,000 units was well above our internal expectations with performance fueled by a few drivers. Let's first look at the change in units between Q1 and Q2. You'll recall that on the Q1 call in May, we described weather-related events that suppressed Q1 MRD volumes by several thousand units. We don't think we necessarily recovered those units in Q2, but the change quarter over quarter is exaggerated by that artificially lower Q1 number. Mike will expand on this as it relates to the guide later in the call. In addition, last year we made a significant investment in the size and the breadth of our commercial team. Most of these folks were hired in the first half of 2025, so we are pleased now to see them hitting their stride. We also achieved some critical milestones for Signatera, including FDA approval, and we've seen an uptick in general Signatera adoption as a result. We are seeing this in new accounts and new patient starts, which were both very strong again this quarter. This broad-based acceleration is happening across tumor types, with colorectal and breast remaining our largest indications. I am also really encouraged by the contribution from the long tail of indications, both because it demonstrates broad adoption of Signatera in clinical practice and also because it increases the revenue opportunity as we expand coverage to additional tumor types. At the end of the quarter, we got the NCCN guideline in muscle-invasive bladder cancer and the PMDA approval in colorectal cancer, both of which we think bodes well in terms of future adoption. So we feel really good about where we are and the ongoing momentum. Moving to revenue on the next slide. Total revenues grew approximately 38% year over year as continued ASP execution accelerated growth on top of the volume performance. Maintaining this level of top line growth given the size of our revenue base is pretty remarkable. We had about 52 million in revenue troughs this quarter, which is trending down in both absolute terms and as a percent of revenue. X true-ups, our revenues grew about 40% year-on-year. We had another good quarter in women's health and organ health ASPs and we were pleased to see Signatura ASPs increase again. Signatura ASPs were up to roughly 1275 as we continued to drive more consistent reimbursement from Medicare Advantage and commercial plans in biomarker states. We made a significant investment in revenue cycle management a few years ago to get more consistent reimbursement for covered services. While we've completed most of the major initiatives for women's health and organ health, we still think Signatera ASPs have the potential to grow substantially over time, both from operational initiatives as well as potential additional MOLDX coverage decisions and broader guideline inclusion. We talked in the past that we think a mature signatory ASP can reach around $2,000, and we still feel good about that as our long-term target. The next slide shows our gross margin progress across two time periods. The left chart shows reported gross margin versus Q2 of 2025, with solid progress mainly driven by ASP improvements over the past year. On the right-hand side, we are zooming in on sequential growth, X true-ups, where we had a roughly 50 basis point improvement over Q1. This was due to several factors including both ASP wins and returning to a more normalized ratio of reported to accession units compared to Q1. POGs increased slightly in Q2 as we saw an uptick in volumes from some of our recently launched products, particularly for fetal focus, latitude, and signetera genome. When we launch these products, we leave a lot of room to achieve COGS improvements over time as volumes scale, and we're already executing on that roadmap. Latitude and fetal focus also present ASP upside over time. For example, we have a latitude submission in currently to Maldi X. We think we can keep improving margins slightly in the near term despite this new product COGS impact as we did this quarter. Longer term, we feel very comfortable about reaching our target of 70% plus gross margin. The margin improvement going forward is driven mostly by major events like mold DX coverages or the completion of key internal COGS projects. If you look at our progress on gross margin from the mid-40s to the mid-60s, it wasn't strictly linear. We had periods of incremental progress and also step-up function changes, and I think we'll have a similar trajectory in the future. Okay, with that, let me turn it over to Solomon to discuss some of the exciting clinical and product developments this quarter. Solomon?