Adaptive Biotechnologies MRD revenue jumps 33% as guidance raised

Adaptive Biotechnologies reported second-quarter MRD revenue of $66.2 million, up 33% from a year earlier, as the company raised its full-year outlook and outlined plans to separate its Immune Medicine business.

"The combination of our operating performance, fortified balance sheet and plan to separate the Immune Medicine business enhances our ability to create long-term value for our shareholders," Chief Executive Officer and Co-founder Chad Robins said.

Total revenue reached $71.6 million in the quarter ended June 30, up 30% excluding revenue from the Genentech agreement. Clinical testing revenue climbed 53%, supported by a 43% increase in testing volume and a 7% rise in average selling price to $1,382 per test. The company delivered more than 36,100 clonoSEQ tests, up 11% sequentially. Blood-based testing accounted for 51% of total testing volume for the first time, while community testing represented 36% of clonoSEQ volume, up 65% from a year earlier.

Sequencing gross margin, excluding MRD milestones, widened to 72% from 64% a year earlier, driven by lower assay costs after the NovaSeq X transition and operating leverage from higher volumes. MRD adjusted EBITDA rose to $9.1 million from $1.9 million in the prior-year quarter. The company ended the quarter with approximately 189 active global clinical trials and $245 million in backlog, up 12% from a year earlier.

Adaptive raised its full-year MRD revenue outlook to a range of $268 million to $278 million, up from a prior range of $260 million to $270 million. The company narrowed full-year operating expense guidance to $350 million to $355 million and said it remains on track for positive adjusted EBITDA and free cash flow by the end of 2026.

The company completed a $340 million zero-coupon convertible note offering during the quarter, retired its OrbiMed financing agreement and ended the period with approximately $357 million in cash. GAAP net loss was $39.9 million, or 25 cents per share, including $26.4 million in debt-extinguishment and interest expense tied to the OrbiMed settlement. Excluding that charge, net loss was $16.2 million.

Adaptive said it continues to evaluate strategic alternatives to separate its Immune Medicine business and expects to identify a preferred path by year-end, with Morgan Stanley retained as adviser. The company also plans to wind down its research-use-only pharma services business to focus on proprietary T-cell receptor antigen data and AI-driven drug discovery.

The raised guidance signals management expects MRD momentum to continue through the second half. Investors will watch for updates on the Immune Medicine separation and progress toward positive free cash flow by the end of 2026.

This article is for informational purposes only and does not constitute investment advice.