Adaptive Biotechnologies — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the quarter ended September 30, 2026, was $83.9 million, an 11% decrease from the prior year period; excluding Genentech Agreement revenue, revenue increased 39% year-over-year.
• MRD revenue was $72.6 million, a 28% increase from the third quarter of 2025, representing 44% growth excluding milestones.
• Immune Medicine revenue was $11.3 million, a 70% decrease from the prior year; excluding Genentech Agreement revenue, this segment increased 229% year-over-year.
• Operating expenses were $84.4 million, a 1% increase compared to $83.7 million in the prior year.
• Net income was $2.8 million for the quarter, compared to $9.5 million in the prior year; excluding Genentech revenue, the company reported a net loss of $24.2 million in the prior year.
• Adjusted EBITDA was $14.3 million for the quarter, down from $28.0 million in the prior year; excluding Genentech revenue, Adjusted EBITDA was a loss of $5.8 million in the prior year.
• Free cash flow was $7.7 million for the quarter.
• Cash, cash equivalents, and marketable securities totaled $400.2 million as of September 30, 2026.
• Interest and other income, net was $3.8 million, compared to $2.2 million in the prior year; interest expense was $0.5 million, down from $3.0 million.
• Convertible senior notes, net, increased to $335.4 million as of September 30, 2026, from $0 in the prior period.
• Deferred revenue (current and long-term combined) was $60.4 million as of September 30, 2026, compared to $46.2 million as of December 31, 2025.

Guidance and Future Outlook:

• Full year 2026 MRD revenue guidance was raised to a range of $276 million to $286 million, representing annual growth of 30% to 35%.
• Full year total company operating expenses, including cost of revenue, are expected to be approximately $350 million.
• No revenue guidance is provided for the Immune Medicine business.

Business Segments and Product Lines:

• The company delivered 39,587 clonoSEQ® tests in the third quarter, a 46% increase versus the third quarter of 2025.
• Revenue was recognized from successful data delivery under a target discovery agreement.
• The company is progressing with the Immune Medicine separation process.
• Expenses related to Digital Biotechnologies, Inc. are no longer included in the Immune Medicine segment.

Market and Competitive Landscape:

• NCCN Guidelines established a dedicated framework for MRD assessment in multiple myeloma, including annual testing during maintenance.
• The International Myeloma Working Group introduced the first definition of cure for multiple myeloma, requiring a five-year treatment-free period with sustained MRD negativity at a sensitivity of one myeloma cell among one million cells.
• The company submitted a technical assessment to MolDX seeking an additional Medicare bundle for maintenance testing in multiple myeloma.

Other Key Points:

• The company achieved total company profitability in the third quarter of 2026 with adjusted EBITDA of $14.3 million.
• CEO Chad Robins stated that updated guidelines and the new definition of cure amplify the need for MRD testing and bolster clonoSEQ's long-term potential.
• Restructuring expense was $743,000 for the quarter and $1.46 million for the nine months ended September 30, 2026.
• Loss on revenue interest liability extinguishment was $23.7 million for the nine months ended September 30, 2026, with no such loss in the current quarter.
• The company has 161,566,952 shares of common stock issued and outstanding as of September 30, 2026.