Earnings release
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Adaptive Biotechnologies Reports Third Quarter 2026 Financial Results November 4, 2026 SEATTLE, Nov. 04, 2026 (GLOBE NEWSWIRE) -- Adaptive Biotechnologies Corporation (“Adaptive Biotechnologies”) (Nasdaq: ADPT), a commercial stage biotechnology company that aims to translate the genetics of the adaptive immune system into clinical products to diagnose and treat disease, today reported financial results for the quarter ended September 30, 2026. “Adaptive achieved total company profitability ahead of expectations in Q3 and delivered 44% growth in core MRD revenue,” said Chad Robins, chief executive officer and co-founder of Adaptive Biotechnologies. “This momentum supports another increase in our full year outlook. Updated guidelines and a new definition of cure for multiple myeloma amplify the need for MRD testing and bolster clonoSEQ’s long-term potential.” Recent Highlights Achieved total company profitability in the third quarter of 2026 with adjusted EBITDA of $14.3 million and free cash flow of $7.7 million. Generated revenue of $83.9 million in the third quarter of 2026. MRD revenue increased 28%, or 44% excluding milestones, versus the third quarter of 2025. Delivered 39,587 clonoSEQ® tests in the third quarter of 2026, an increase of 46% versus the third quarter of 2025. Submitted a technical assessment to MolDX seeking an additional Medicare bundle for maintenance testing in multiple myeloma. 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 assessed at a sensitivity of one myeloma cell among one million cells. Recognized revenue from successful data delivery under our target discovery agreement and are progressing with the Immune Medicine separation process. Adaptive raised full year 2026 MRD revenue guidance to a range of $276 million to $286 million, representing annual growth of 30% to 35%. Third Quarter 2026 Financial Results Revenue was $83.9 million for the quarter ended September 30, 2026, representing an 11% decrease from the third quarter in the prior year. Excluding revenue recognized under the Genentech Agreement, which did not generate revenue in the quarter ended September 30, 2026, revenue for the current quarter increased 39% from the third quarter in the prior year. MRD revenue was $72.6 million for the quarter, representing a 28% increase from the third quarter in the prior year. Immune Medicine revenue was $11.3 million for the quarter, representing a 70% decrease from the third quarter in the prior year. Excluding revenue generated from the Genentech Agreement, Immune Medicine revenue for the quarter ended September 30, 2026 increased 229% from the third quarter in the prior year. Operating expenses for the third quarter of 2026 were $84.4 million, compared to $83.7 million in the third quarter of the prior year, representing an increase of 1%. Interest and other income, net was $3.8 million for the third quarter of 2026, compared to $2.2 million in the third quarter of the prior year. Interest expense was $0.5 million for the third quarter of 2026, compared to $3.0 million in the third quarter of the prior year. Net income was $2.8 million for the third quarter of 2026, compared to $9.5 million for the same period in 2025. Excluding revenue generated from the Genentech Agreement, net loss was $24.2 million for the third quarter of 2025. Adjusted EBITDA (non-GAAP) was $14.3 million for the third quarter of 2026, compared to $28.0 million for the third quarter of the prior year. Excluding revenue generated from the Genentech Agreement, Adjusted EBITDA was a loss of $5.8 million for the third quarter of 2025. Cash, cash equivalents and marketable securities was $400.2 million as of September 30, 2026, inclusive of $13.8 million of cash and cash equivalents held by Digital Biotechnologies, Inc. 2026 Updated Financial Guidance Adaptive Biotechnologies expects full year revenue for the MRD business to be between $276 million and $286 million, updated from the previous range between $268 million and $278 million. No revenue guidance is provided for the Immune Medicine business. We expect full year total company operating expenses, including cost of revenue, to be approximately $350 million, updated from the previous range between $350 million and $355 million. Management will provide further details on the outlook during the conference call. Webcast and Conference Call Information
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Adaptive Biotechnologies will host a conference call to discuss its third quarter 2026 financial results after market close on Wednesday, November 4, 2026 at 4:30 PM Eastern Time. The conference call can be accessed at http://investors.adaptivebiotech.com. The webcast will be archived and available for replay at least 90 days after the event. About Adaptive Biotechnologies Adaptive Biotechnologies (“we” or “our”) is a commercial-stage biotechnology company focused on harnessing the inherent biology of the adaptive immune system to transform the diagnosis and treatment of disease. We believe the adaptive immune system is nature’s most finely tuned diagnostic and therapeutic for most diseases, but the inability to decode it has prevented the medical community from fully leveraging its capabilities. Our proprietary immune medicine platform reveals and translates the massive genetics of the adaptive immune system with scale, precision and speed. We apply our platform to partner with biopharmaceutical companies, inform drug development, and develop clinical diagnostics across our two business segments: Minimal Residual Disease (MRD) and Immune Medicine. Our commercial products and clinical pipeline enable the diagnosis, monitoring, and treatment of diseases such as cancer and autoimmune disorders. Our goal is to develop and commercialize immune-driven clinical products tailored to each individual patient. Forward-Looking Statements This press release contains forward-looking statements that are based on management’s beliefs and assumptions and on information currently available to management. All statements contained in this release other than statements of historical fact are forward-looking statements, including statements regarding our ability to develop, commercialize and achieve market acceptance of our current and planned products and services, our research and development efforts and other matters regarding our business strategies, use of capital, results of operations and financial position and plans and objectives for future operations. In some cases, you can identify forward-looking statements by the words “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties and other factors are described under "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in the documents we file with the Securities and Exchange Commission from time to time. We caution you that forward-looking statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. As a result, the forward-looking statements may not prove to be accurate. The forward-looking statements in this press release represent our views as of the date hereof. We undertake no obligation to update any forward-looking statements for any reason, except as required by law. Use of Non-GAAP Financial Measure To supplement our unaudited condensed consolidated statements of operations and unaudited condensed consolidated balance sheets, which are prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”), this press release also includes references to Adjusted EBITDA, which is a non-GAAP financial measure that we define as net income (loss) attributable to Adaptive Biotechnologies Corporation adjusted for interest and other income, net, interest expense, income tax (expense) benefit, depreciation and amortization expense, impairment costs for long-lived assets, restructuring expense, share-based compensation expense and revenue interest liability extinguishment loss. We define our segment Adjusted EBITDA in the same way to the extent the net income (loss) attributable to Adaptive Biotechnologies Corporation and adjustments are allocable to each segment. We have provided reconciliations of net income (loss) attributable to Adaptive Biotechnologies Corporation, the most directly comparable GAAP financial measure, to Adjusted EBITDA at the end of this press release. Management uses Adjusted EBITDA, including segment Adjusted EBITDA, to evaluate the financial performance of our business and segments and to evaluate the effectiveness of our strategies. We present these figures because we believe they are frequently used by analysts, investors and other interested parties to evaluate companies in our industry and they facilitate comparisons on a consistent basis across reporting periods. Further, we believe it is helpful in highlighting trends in our operating results because it excludes items that are not indicative of our core operating performance. Adjusted EBITDA, including segment Adjusted EBITDA, has limitations as an analytical tool and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. We may in the future incur expenses similar to the adjustments we make. In particular, we expect to incur meaningful share-based compensation expense in the future. Other limitations include that Adjusted EBITDA, including segment Adjusted EBITDA, does not reflect: all expenditures or future requirements for capital expenditures or contractual commitments; changes in our working capital needs; interest income and interest expense, which is an ongoing element of our costs to operate; income tax (expense) benefit, which may be a necessary element of our costs and ability to operate; the costs of replacing the assets being depreciated and amortized, which will often have to be replaced in the future; the noncash component of employee compensation expense; long-lived assets impairment costs; and the impact of earnings or charges resulting from matters we consider not to be reflective, on a recurring basis, of our ongoing operations, such as our restructuring activities, reductions in workforce and our revenue interest liability extinguishment loss. In addition, Adjusted EBITDA, including segment Adjusted EBITDA, may not be comparable to similarly titled measures used by other companies in our industry or across different industries. ADAPTIVE INVESTORS Karina Calzadilla, Vice President, Investor Relations and FP&A 201-396-1687
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investors@adaptivebiotech.com ADAPTIVE MEDIA Erica Jones, Associate Corporate Communications Director 206-279-2423 media@adaptivebiotech.com Adaptive Biotechnologies Condensed Consolidated Statements of Operations (in thousands, except share and per share amounts) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Revenue $ 83,902 $ 93,973 $ 226,329 $ 205,295 Operating expenses Cost of revenue 19,933 18,157 58,806 53,135 Research and development 18,638 23,669 61,414 72,006 Sales and marketing 26,896 23,470 79,656 70,090 General and administrative 18,464 17,959 60,616 53,144 Amortization of intangible assets 428 428 1,270 1,270 Total operating expenses 84,359 83,683 261,762 249,645 (Loss) income from operations (457 ) 10,290 (35,433 ) (44,350 ) Interest and other income, net 3,766 2,226 8,102 7,296 Interest expense (503 ) (2,971 ) (6,086 ) (8,824 ) Loss on revenue interest liability extinguishment — — (23,733 ) — Net income (loss) 2,806 9,545 (57,150 ) (45,878 ) Add: Net loss (income) attributable to noncontrolling interests 70 1 205 (42 ) Net income (loss) attributable to Adaptive Biotechnologies Corporation $ 2,876 $ 9,546 $ (56,945 ) $ (45,920 ) Net income (loss) per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic and diluted $ 0.02 $ 0.06 $ (0.36 ) $ (0.30 ) Weighted-average shares used in computing net income (loss) per share attributable to Adaptive Biotechnologies Corporation common shareholders Basic 160,400,525 152,432,307 158,610,150 151,248,398 Diluted 186,879,656 163,162,107 158,610,150 151,248,398 Adaptive Biotechnologies Condensed Consolidated Balance Sheets (in thousands, except share and per share amounts) September 30, 2026 December 31, 2025 (unaudited) Assets Current assets Cash and cash equivalents $ 75,615 $ 70,495 Short-term marketable securities (amortized cost of $223,807 and $156,246, respectively) 223,339 156,485 Accounts receivable, net 66,671 50,365 Inventory 10,055 9,820 Prepaid expenses and other current assets 17,008 13,020 Total current assets 392,688 300,185 Long-term assets Property and equipment, net 27,971 34,107 Operating lease right-of-use assets 37,990 40,616
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Long-term marketable securities (amortized cost of $102,044 and $13,220, respectively) 101,227 13,234 Restricted cash 2,705 2,689 Intangible assets, net 456 1,726 Goodwill 118,972 118,972 Other assets 1,111 1,207 Total assets $ 683,120 $ 512,736 Liabilities and shareholders’ equity Current liabilities Accounts payable $ 6,527 $ 6,467 Accrued liabilities 8,201 7,700 Accrued compensation and benefits 15,107 16,992 Current portion of operating lease liabilities 9,137 8,920 Current portion of deferred revenue 59,995 45,194 Current portion of revenue interest liability, net — 4,642 Total current liabilities 98,967 89,915 Long-term liabilities Operating lease liabilities, less current portion 64,455 70,228 Deferred revenue, less current portion 408 1,006 Revenue interest liability, net, less current portion — 126,566 Convertible senior notes, net 335,379 — Other long-term liabilities 20 20 Total liabilities 499,229 287,735 Commitments and contingencies Shareholders’ equity Preferred stock: $0.0001 par value, 10,000,000 shares authorized at September 30, 2026 and December 31, 2025; no shares issued and outstanding at September 30, 2026 and December 31, 2025 — — Common stock: $0.0001 par value, 340,000,000 shares authorized at September 30, 2026 and December 31, 2025; 161,566,952 and 153,779,418 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively 16 15 Additional paid-in capital 1,597,750 1,581,848 Accumulated other comprehensive (loss) gain (1,285 ) 253 Accumulated deficit (1,420,268 ) (1,363,323 ) Total Adaptive Biotechnologies Corporation shareholders’ equity 176,213 218,793 Noncontrolling interests 7,678 6,208 Total shareholders’ equity 183,891 225,001 Total liabilities and shareholders’ equity $ 683,120 $ 512,736 Adjusted EBITDA The following is a reconciliation of net income (loss) attributable to Adaptive Biotechnologies Corporation, the most directly comparable GAAP financial measure, to Adjusted EBITDA for the periods presented (in thousands, unaudited): Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Net income (loss) attributable to Adaptive Biotechnologies Corporation $ 2,876 $ 9,546 $ (56,945 ) $ (45,920 ) Interest and other income, net (3,766 ) (2,226 ) (8,102 ) (7,296 ) Interest expense 503 2,971 6,086 8,824 Depreciation and amortization expense 3,606 4,405 11,138 13,638 Impairment of long-lived assets — — 347 — Restructuring expense 743 — 1,463 — Share-based compensation expense 10,386 13,257 33,433 38,763 Loss on revenue interest liability extinguishment — — 23,733 — Adjusted EBITDA $ 14,348 $ 27,953 $ 11,153 $ 8,009 Segment Information (Including Segment Adjusted EBITDA) The following sets forth segment information for the periods presented (in thousands, unaudited):
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Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 MRD: Revenue $ 72,565 $ 56,788 $ 205,826 $ 150,447 Adjusted EBITDA 15,119 6,965 36,373 4,766 Reconciliation of Net Income (Loss) to Adjusted EBITDA: Net income (loss) $ 6,483 $ (2,042 ) $ 10,227 $ (21,460 ) Depreciation and amortization expense 2,475 2,470 7,265 7,588 Impairment of long-lived assets — — — — Restructuring expense — — 325 — Share-based compensation expense 6,161 6,537 18,556 18,638 Adjusted EBITDA $ 15,119 $ 6,965 $ 36,373 $ 4,766 Immune Medicine(1): Revenue $ 11,337 $ 37,185 $ 20,503 $ 54,848 Adjusted EBITDA 3,238 24,111 (13,391 ) 13,284 Reconciliation of Net (Loss) Income to Adjusted EBITDA: Net (loss) income $ (434 ) $ 18,182 $ (26,418 ) $ (4,507 ) Depreciation and amortization expense 665 1,470 2,496 4,678 Impairment of long-lived assets — — 347 — Restructuring expense 712 — 1,107 — Share-based compensation expense 2,295 4,459 9,077 13,113 Adjusted EBITDA $ 3,238 $ 24,111 $ (13,391 ) $ 13,284 (1) Expenses related to Digital Biotechnologies, Inc. are no longer included in the Immune Medicine segment.