Adaptive Biotechnologies Reports First Quarter 2025 Financial Results

Rhea-AI Summary

Adaptive Biotechnologies (ADPT) reported strong Q1 2025 financial results with total revenue of $52.4 million, up 25% year-over-year. The company's MRD business, contributing 83% of revenue, grew 34% to $43.7 million, driven by a 36% increase in clonoSEQ test volume to 23,117 tests. Operating expenses decreased 9% to $82.0 million, and net loss improved to $29.8 million from $47.5 million in Q1 2024. The company raised its 2025 MRD revenue guidance to $180-190 million while reducing operating expense guidance to $335-345 million and cash burn target to $50-60 million. Cash position remained strong at $232.8 million as of March 31, 2025.

Positive

• 34% growth in MRD revenue to $43.7 million
• 36% increase in clonoSEQ test volume to 23,117 tests
• 9% reduction in operating expenses to $82.0 million
• 37% improvement in net loss to $29.8 million
• Expanded Medicare coverage for clonoSEQ in mantle cell lymphoma
• Raised full year MRD revenue guidance to $180-190 million
• Reduced operating expense and cash burn guidance

Negative

• 6% decrease in Immune Medicine revenue to $8.7 million
• Continued net loss of $29.8 million despite improvements
• Reduced interest and other income from $4.2M to $2.7M

Insights

Financial Analyst

Strong MRD revenue growth and significantly reduced losses show Adaptive Biotechnologies making substantial progress toward profitability.

Adaptive Biotechnologies' Q1 results demonstrate impressive financial momentum, particularly in their core MRD (Minimal Residual Disease) business. Revenue reached $52.4 million, up 25% year-over-year, with MRD revenue specifically growing 34% to $43.7 million and representing 83% of total revenue.

What's particularly noteworthy is the company's improved financial efficiency. Net loss narrowed substantially from $47.5 million to $29.8 million, a 37% improvement. This was driven by both revenue growth and disciplined cost management, with operating expenses declining 9% to $82.0 million. The Adjusted EBITDA loss showed even more dramatic improvement, shrinking 55% from $28.2 million to $12.7 million.

The segment-level data reveals the MRD business is approaching profitability much faster than anticipated. The MRD segment's Adjusted EBITDA loss decreased 76% from $17.3 million to just $4.1 million, indicating this core business could reach positive EBITDA in the near future.

Management's confidence is evident in their revised guidance - raising full-year MRD revenue expectations to $180-190 million (from $175-185 million) while simultaneously lowering operating expense guidance to $335-345 million (from $340-350 million) and reducing cash burn targets to $50-60 million (from $60-70 million).

With $232.8 million in cash and marketable securities, Adaptive has approximately 4+ years of runway at current burn rates, providing substantial financial flexibility as they push toward profitability in their core business.

Biotechnology Industry Expert

From a biotechnology perspective, Adaptive's results highlight the increasing clinical adoption of precision diagnostic testing for cancer patients. The 36% growth in clonoSEQ test volume (23,117 tests delivered) demonstrates strong physician uptake and reflects the growing importance of MRD testing in clinical decision-making for hematologic malignancies.

The expanded Medicare coverage for clonoSEQ in mantle cell lymphoma represents a significant development. Reimbursement is a critical driver for diagnostic test adoption, and this expanded coverage opens a new patient population for Adaptive's testing services. Mantle cell lymphoma affects approximately 3,000-4,000 new patients annually in the US, and the ability to monitor disease recurrence with high sensitivity could meaningfully improve patient management.

The $4.5 million in MRD pharma regulatory milestone revenue is also noteworthy as it signals progress in Adaptive's pharmaceutical partnerships. The company's immune sequencing platform is increasingly being integrated into clinical trials and drug development programs, creating additional revenue streams beyond direct clinical testing.

While the Immune Medicine segment showed a slight 6% revenue decline, this business represents early-stage potential in drug discovery that could yield significant long-term value. Management's focus on "advancing our Immune Medicine drug discovery programs" suggests they continue to see strategic value in this segment despite prioritizing near-term profitability in the MRD business.

Adaptive's technology platform, which decodes the adaptive immune system, positions them at the intersection of two important trends in biotechnology: precision diagnostics and immune-based therapeutics. Their continued clinical test volume growth confirms the value proposition of their technology in real-world clinical settings, while their improving financial metrics suggest they're finding the right balance between growth investment and fiscal discipline.

SEATTLE, May 01, 2025 (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 March 31, 2025.

“We had a strong start to 2025 with 34% MRD revenue growth, driven by continued acceleration in clonoSEQ test volume and disciplined execution,” said Chad Robins, chief executive officer and co-founder of Adaptive Biotechnologies. “This performance highlights the scalability of our MRD business and the growing momentum behind it. As a result, we are raising our full year MRD revenue guidance while lowering our operating expenses and cash burn targets. As we move forward, we remain focused on driving our MRD business to profitability and advancing our Immune Medicine drug discovery programs to deliver long-term value for all our stakeholders.”

Recent Highlights

• Revenue for the first quarter of 2025 was $52.4 million. The MRD business, which contributed 83% of revenue, grew 34% versus the first quarter of 2024.
• clonoSEQ test volume in the first quarter of 2025 grew 36% to 23,117 tests delivered versus the first quarter of 2024.
• Received expanded Medicare coverage of clonoSEQ® for recurrence monitoring in mantle cell lymphoma.
• Recognized $4.5 million in MRD pharma regulatory milestone revenue.
• Raising full year 2025 MRD revenue guidance to a new range of $180 million to $190 million, implying annual growth of 24% to 31%.
• Reducing full year 2025 guidance range for operating spend and annual cash burn.

First Quarter 2025 Financial Results

Revenue was $52.4 million for the quarter ended March 31, 2025, representing a 25% increase from the first quarter in the prior year. MRD revenue was $43.7 million for the quarter, representing a 34% increase from the first quarter in the prior year. Immune Medicine revenue was $8.7 million for the quarter, representing a 6% decrease from the first quarter in the prior year.

Operating expenses for the first quarter of 2025 were $82.0 million, compared to $90.6 million in the first quarter of the prior year, representing a decrease of 9%.

Interest and other income, net was $2.7 million for the first quarter of 2025, compared to $4.2 million in the first quarter of the prior year. Interest expense from our revenue interest purchase agreement was $2.9 million in the first quarter of 2025, compared to $3.0 million in the first quarter of the prior year.

Net loss was $29.8 million for the first quarter of 2025, compared to $47.5 million for the same period in 2024.

Adjusted EBITDA (non-GAAP) was a loss of $12.7 million for the first quarter of 2025, compared to a loss of $28.2 million for the first quarter of the prior year.

Cash, cash equivalents and marketable securities was $232.8 million as of March 31, 2025.

2025 Updated Financial Guidance

Adaptive Biotechnologies expects full year revenue for the MRD business to be between $180 million and $190 million, updated from the previous range between $175 million and $185 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 between $335 million and $345 million, updated from the previous range between $340 million and $350 million.

We expect full year total company cash burn to be between $50 million and $60 million, updated from the previous range between $60 million and $70 million.

Management will provide further details on the outlook during the conference call.

Webcast and Conference Call Information

Adaptive Biotechnologies will host a conference call to discuss its first quarter 2025 financial results after market close on Thursday, May 1, 2025 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 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 and share-based compensation expense. We define our segment Adjusted EBITDA in the same way to the extent the net loss attributable to Adaptive Biotechnologies Corporation and adjustments are allocable to each segment. We have provided reconciliations of net 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 it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry and it facilitates 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 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 and reductions in workforce.

In addition, 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
201-396-1687
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 March 31,
		2025				2024
Revenue		$	52,443			$	41,873
Operating expenses
Cost of revenue			16,979				18,051
Research and development			24,203				30,245
Sales and marketing			23,047				22,319
General and administrative			17,399				19,597
Amortization of intangible assets			419				423
Total operating expenses			82,047				90,635
Loss from operations			(29,604	)			(48,762	)
Interest and other income, net			2,679				4,222
Interest expense			(2,905	)			(2,993	)
Net loss			(29,830	)			(47,533	)
Add: Net (income) loss attributable to noncontrolling interest			(22	)			26
Net loss attributable to Adaptive Biotechnologies Corporation		$	(29,852	)		$	(47,507	)
Net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic and diluted		$	(0.20	)		$	(0.33	)
Weighted-average shares used in computing net loss per share attributable to Adaptive Biotechnologies Corporation common shareholders, basic and diluted			149,195,028				145,787,527

Adaptive Biotechnologies Condensed Consolidated Balance Sheets (in thousands, except share and per share amounts)
		March 31, 2025				December 31, 2024
		(unaudited)
Assets
Current assets
Cash and cash equivalents		$	50,646			$	47,920
Short-term marketable securities (amortized cost of $142,744 and $174,186, respectively)			142,778				174,374
Accounts receivable, net			43,583				41,731
Inventory, net			8,684				8,440
Prepaid expenses and other current assets			10,798				11,287
Total current assets			256,489				283,752
Long-term assets
Property and equipment, net			44,430				48,616
Operating lease right-of-use assets			44,004				45,767
Long-term marketable securities (amortized cost of $39,255 and $33,682, respectively)			39,355				33,660
Restricted cash			2,711				2,897
Intangible assets, net			3,006				3,425
Goodwill			118,972				118,972
Other assets			1,885				2,287
Total assets		$	510,852			$	539,376
Liabilities and shareholders’ equity
Current liabilities
Accounts payable		$	6,362			$	7,265
Accrued liabilities			7,757				8,157
Accrued compensation and benefits			6,412				15,838
Current portion of operating lease liabilities			10,462				10,239
Current portion of deferred revenue			54,805				55,689
Current portion of revenue interest liability, net			2,011				865
Total current liabilities			87,809				98,053
Long-term liabilities
Operating lease liabilities, less current portion			76,438				79,148
Deferred revenue, less current portion			24,814				27,256
Revenue interest liability, net, less current portion			131,550				132,414
Other long-term liabilities			20				20
Total liabilities			320,631				336,891
Commitments and contingencies
Shareholders’ equity
Preferred stock: $0.0001 par value, 10,000,000 shares authorized at March 31, 2025 and December 31, 2024; no shares issued and outstanding at March 31, 2025 and December 31, 2024			—				—
Common stock: $0.0001 par value, 340,000,000 shares authorized at March 31, 2025 and December 31, 2024; 151,916,722 and 147,773,744 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively			15				14
Additional paid-in capital			1,523,950				1,506,353
Accumulated other comprehensive gain			134				166
Accumulated deficit			(1,333,676	)			(1,303,824	)
Total Adaptive Biotechnologies Corporation shareholders’ equity			190,423				202,709
Noncontrolling interest			(202	)			(224	)
Total shareholders’ equity			190,221				202,485
Total liabilities and shareholders’ equity		$	510,852			$	539,376

Adjusted EBITDA

The following is a reconciliation of net 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 March 31,
		2025				2024
Net loss attributable to Adaptive Biotechnologies Corporation		$	(29,852	)		$	(47,507	)
Interest and other income, net			(2,679	)			(4,222	)
Interest expense			2,905				2,993
Depreciation and amortization expense			4,731				5,214
Restructuring expense			—				1,044
Share-based compensation expense			12,147				14,298
Adjusted EBITDA		$	(12,748	)		$	(28,180	)

Segment Information (Including Segment Adjusted EBITDA)

The following tables set forth segment information for the periods presented (in thousands, unaudited):

		Three Months Ended March 31, 2025
		MRD				Immune Medicine				Unallocated Corporate				Total
Revenue		$	43,721			$	8,722			$	—			$	52,443
Operating expenses			55,959				20,203				5,885				82,047
Adjusted EBITDA			(4,111	)			(5,446	)			(3,191	)			(12,748	)
Reconciliation of Net Loss to Adjusted EBITDA:
Net loss		$	(12,238	)		$	(11,481	)		$	(6,111	)		$	(29,830	)
Net income attributable to noncontrolling interest			—				—				(22	)			(22	)
Net loss attributable to Adaptive Biotechnologies Corporation			(12,238	)			(11,481	)			(6,133	)			(29,852	)
Interest and other income, net			—				—				(2,679	)			(2,679	)
Interest expense			—				—				2,905				2,905
Depreciation and amortization expense			2,663				1,642				426				4,731
Share-based compensation expense			5,464				4,393				2,290				12,147
Adjusted EBITDA		$	(4,111	)		$	(5,446	)		$	(3,191	)		$	(12,748	)

		Three Months Ended March 31, 2024
		MRD				Immune Medicine				Unallocated Corporate				Total
Revenue		$	32,626			$	9,247			$	—			$	41,873
Operating expenses			59,886				23,841				6,908				90,635
Adjusted EBITDA			(17,259	)			(6,927	)			(3,994	)			(28,180	)
Reconciliation of Net Loss to Adjusted EBITDA:
Net loss		$	(27,260	)		$	(14,593	)		$	(5,680	)		$	(47,533	)
Net loss attributable to noncontrolling interest			—				—				26				26
Net loss attributable to Adaptive Biotechnologies Corporation			(27,260	)			(14,593	)			(5,654	)			(47,507	)
Interest and other income, net			—				—				(4,222	)			(4,222	)
Interest expense			—				—				2,993				2,993
Depreciation and amortization expense			2,701				2,082				431				5,214
Restructuring expense			467				577				—				1,044
Share-based compensation expense			6,833				5,007				2,458				14,298
Adjusted EBITDA		$	(17,259	)		$	(6,927	)		$	(3,994	)		$	(28,180	)

FAQ

What were Adaptive Biotechnologies (ADPT) Q1 2025 earnings results?

ADPT reported Q1 2025 revenue of $52.4M (+25% YoY), with MRD revenue of $43.7M (+34%). Net loss improved to $29.8M from $47.5M in Q1 2024, with operating expenses decreasing 9% to $82.0M.

How much did ADPT's clonoSEQ test volume grow in Q1 2025?

Adaptive Biotechnologies' clonoSEQ test volume grew 36% year-over-year to 23,117 tests delivered in Q1 2025.

What is Adaptive Biotechnologies' (ADPT) revenue guidance for 2025?

ADPT raised its 2025 MRD revenue guidance to $180-190 million, representing 24-31% annual growth. No guidance was provided for the Immune Medicine business.

What is ADPT's cash position as of Q1 2025?

Adaptive Biotechnologies had $232.8 million in cash, cash equivalents, and marketable securities as of March 31, 2025.

What was Adaptive Biotechnologies' operating expense guidance for 2025?

ADPT reduced its 2025 operating expense guidance to $335-345 million, down from the previous range of $340-350 million.