Natera, Inc. (NTRA) Business Profile

What it does

Natera is a diagnostics company that sells genetic tests for cancer, women’s health and organ health. Founded in 2004, it is headquartered in Austin, Texas. Solomon Moshkevich is its chief executive officer.

The company’s technology measures genetic material, including fragments of DNA circulating in blood, and uses computer algorithms to interpret the results. Physicians use its tests to inform decisions about cancer treatment, pregnancy and transplant care. Natera also offers tests to researchers and pharmaceutical companies.

In cancer, Signatera is a personalized blood test for people already diagnosed with the disease. It looks for traces of cancer remaining after treatment and can be used to monitor for recurrence and assess treatment response. Each patient’s test is designed around mutations found in that person’s tumor. Latitude is a colorectal cancer test that does not require a tumor tissue sample, while Altera analyzes tumor tissue to help guide treatment selection.

In women’s health, Panorama screens for fetal chromosomal abnormalities using a pregnant patient’s blood sample, and Horizon screens prospective parents for inherited conditions. In organ health, Prospera helps physicians assess transplant rejection, while Renasight tests for genetic causes of kidney disease.

Natera performs testing in its own laboratories and works with other laboratories. Its Constellation software also allows licensed laboratories to run molecular tests locally and use Natera’s algorithms in the cloud.

How it makes money

Natera has one reportable segment. It earns most of its revenue from clinical genetic tests, particularly Panorama, Horizon and Signatera. The majority of its revenue comes from insurers with which it has in-network contracts; the company also bills patients, clinics, laboratory partners and pharmaceutical companies.

For FY2025, total revenue was $2,306.1 million; for Q3 2026, revenue was $794 million.

When Natera sells a test through its own sales force, it generally bills the patient, clinic or insurer. When a laboratory partner distributes a test, the partner usually bills the end customer, and Natera receives either a fixed price per test or a percentage of the partner’s collections. In-network contracts generally pay less than a test’s list price, but Natera considers their pricing more predictable and says they provide access to more covered patients.

Clinical test sales are recorded as product revenue. Product revenue was $2.3 billion in FY2025, representing 99.6% of revenue. Licensing and other revenue was $10.3 million, including revenue from Constellation and strategic partnerships.

Under Constellation, a licensed laboratory conducts the molecular work and uses Natera’s cloud software to analyze the results. Natera earns less revenue and gross profit per test under this model than when it performs the entire test itself, but it also avoids the cost of processing the test.

Some testing can recur as part of monitoring. Signatera can be used repeatedly to monitor cancer recurrence, and Medicare has granted coverage for serial surveillance use in early-stage hepatocellular carcinoma. Natera also offers Signatera to researchers and drug companies for research use.

Customers and how it sells

Natera’s customers include independent and reference laboratories, medical centers and physician practices, as well as research laboratories and pharmaceutical companies. Clinicians order tests for patients, while payment can come from insurers, patients, clinics or laboratory partners. Medicare accounted for 13.6% of revenue in FY2025.

The United States generated 98.2% of FY2025 revenue. Natera markets its tests through a direct sales force and laboratory distribution partners; its U.S. direct sales force accounted for 95% of revenue in 2025. The company also has a global network of over 100 laboratory and distribution partners. Some partners send samples to Natera, while Constellation licensees run molecular workflows themselves and use its cloud algorithms to analyze results.

Outside the United States, Natera is preparing to launch Signatera for colorectal and muscle-invasive bladder cancer in Japan. The bladder indication received regulatory approval in the third quarter of 2026, and Natera is discussing reimbursement and pricing with the health ministry. The company says the two indications have been combined into one pricing discussion.

Suppliers and costs

Natera processes tests primarily in its laboratories in Austin, Texas and San Carlos, California. Its Boulder, Colorado laboratory performs clinical-trial testing, and third-party laboratories perform a portion of its testing. Licensed Constellation partners conduct their own molecular workflows.

The cost of clinical testing includes materials and services, laboratory personnel, sequencing, equipment depreciation, shipping, information technology and allocated overhead. Research and development spending includes staff, laboratory supplies and clinical studies. Selling, general and administrative expenses include sales and marketing, billing, legal and other corporate functions.

Natera says it has reduced the reagents, test steps and labor required for Panorama through changes to its molecular and bioinformatics processes. The company says higher volumes of newer products, including Fetal Focus and Signatera Genome, could increase near-term testing costs. It is working to reduce those costs while continuing to invest in clinical trials and pharmaceutical services.

Competitive position

Natera competes with molecular diagnostics companies across prenatal testing, cancer and organ transplant monitoring. Its prenatal testing competitors include BillionToOne, Fulgent Genetics, Labcorp, Myriad Genetics, Quest Diagnostics and Revvity. Several of those companies also offer carrier screening. In oncology, Natera names Exact Sciences, Guardant Health, Personalis and Tempus Labs among its competitors. It identifies CareDx as its primary competitor in organ health.

Natera says competitive factors include test performance, insurance coverage, pricing, distribution, turnaround time and ease of use. The company says Panorama is the U.S. non-invasive prenatal testing market leader by volume. It had over 350 peer-reviewed publications and over 650 issued or pending patents as of December 31, 2025.

Our reading: Clinical evidence is a meaningful source of differentiation because test adoption and reimbursement depend on convincing clinicians and payers of a test’s value. Our reading: Patents and proprietary algorithms can protect Natera’s technology, but their competitive strength is qualified by the range of companies already offering competing tests. Our reading: Distribution and its direct sales force support access to customers, although competing on coverage, price and service remains important.

Growth opportunities

Natera’s growth plans include expanding the use and insurance coverage of its existing tests, adding cancer indications, developing new products and entering international markets. The company processed approximately 3.5 million tests in 2025, compared with approximately 3.1 million tests in 2024. In Q3 2026, it processed approximately 1.1 million tests, including approximately 316,000 clinical molecular residual disease tests.

The company expects broader coverage and additional clinical evidence to support Signatera adoption. Medicare coverage for serial surveillance in early-stage hepatocellular carcinoma adds an indication, and Natera has other coverage submissions in progress. In Japan, the company is working toward a launch for colorectal and bladder cancer after reimbursement and pricing discussions.

Natera is also investing in pharmaceutical partnerships, data services and early cancer detection. It says pharmaceutical revenue in the first three quarters of 2026 was up roughly 70% over all of 2025. Its early cancer detection program is focused initially on colorectal cancer and is undergoing clinical study.

Natera has set a target of $6 billion in revenue in 2029. The company expects its existing oncology portfolio, international expansion and pharmaceutical and data partnerships to contribute, with a relatively small contribution from early cancer screening.

Structural risks

• Coverage and reimbursement: Natera’s results would be adversely affected if it cannot maintain or expand payer coverage for its tests, or if it must refund reimbursements. Some payers do not reimburse for microdeletion screening, and negotiated in-network fees can be lower than list prices.
• Clinical adoption: New data may be inconsistent with earlier results or fail to convince clinicians, laboratories, patients and payers of a test’s value. Panorama’s microdeletion screening may not gain the acceptance or reimbursement Natera seeks.
• Regulation and compliance: Laboratories must maintain certifications and comply with federal and state requirements. Noncompliance can lead to sanctions, loss of certification or exclusion from government healthcare programs. Billing, privacy and fraud-and-abuse rules also apply.
• Competition and intellectual property: Natera faces established and emerging test providers. Intellectual-property disputes can be costly and time-consuming and could limit its ability to commercialize products.
• Losses and investment needs: Natera recorded a $208.2 million net loss in 2025 and expects further losses as it invests in research and commercialization. It may need additional financing, which could dilute shareholders or impose operating restrictions.

Bottom line

Our reading

Natera is a testing business built around genetic analysis, clinical evidence and relationships with clinicians and payers. Its growth depends on selling more tests and gaining coverage for additional uses, while its U.S. revenue concentration and reliance on reimbursement make payer decisions important. The company is investing in new applications and international expansion, but it continues to report net losses.