Natera, Inc.
NTRA Healthcare Diagnostics & Research
Natera, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $2.3 billion, up 35.9% from fiscal 2024. In the quarter to June 2026, revenue grew 37.7%, EPS grew 36.5%, free cash flow fell 174.0% and total debt was flat, each against the same quarter a year earlier. Revenue growth for five consecutive years, operating cash flow growth for three.
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Natera, Inc. (NTRA) Altman Z-score
Natera, Inc.'s Altman Z-score for fiscal 2025 is 26.84, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 26.84 | 2.22 |
| FY2024 | 24.62 | 20.02 |
| FY2023 | 4.60 | 3.03 |
| FY2022 | 1.58 | (5.65) |
| FY2021 | 7.23 | (2.73) |
| FY2020 | 9.96 | 6.45 |
| FY2019 | 3.51 | 4.34 |
| FY2018 | −0.83 | 1.25 |
| FY2017 | −2.08 | (3.12) |
| FY2016 | 1.05 | (0.49) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.44 | — | 0.53 | |
| Retained earnings / total assets | (1.16) | — | −1.62 | |
| EBIT / total assets | (0.13) | — | −0.43 | |
| Market value of equity / total liabilities | 45.66 | — | 27.40 | |
| Sales / total assets | 0.96 | — | 0.96 | |
| Altman Z-score | Safe zone | 26.84 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | 0.87 | ||
Z and Z″ put Natera, Inc. in different zones: safe zone by Z, distress zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| NTRA Natera, Inc. | 26.8× |
| IDXX IDEXX Laboratories, Inc. compare | 24.1× |
| MTD Mettler-Toledo International, Inc. compare | 10.2× |
| WAT Waters Corporation compare | 9.6× |
| A Agilent Technologies, Inc. compare | 5.5× |
| ILMN Illumina, Inc. compare | 4.4× |
| DGX Quest Diagnostics Incorporated compare | 3.1× |
| LH Labcorp Holdings Inc. compare | 3.0× |
| IQV IQVIA Holdings Inc. compare | 2.0× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets