Natera’s second quarter showed significant momentum, with management attributing strong revenue growth to broad-based gains in oncology, particularly from its Signatera minimal residual disease (MRD) test. CEO Steven Chapman highlighted a record number of new patient starts, driven by positive clinical trial results and greater physician adoption across tumor types. The company also saw continued progress in women’s health and organ health, underscored by new product launches and expanded clinical evidence. Gross margin expansion was supported by improved average selling prices and operational efficiencies, though increased costs tied to higher test volumes and investments in innovation weighed on operating margins.

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While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Natera’s Q2 Earnings Call

• Daniel Brennan (TD Cowen) asked for more detail on drivers behind the record Signatera volumes and whether high-teens to 20% growth is sustainable; CEO Steven Chapman pointed to both new patient starts and expanded physician adoption, but cautioned against assuming these elevated growth rates will persist indefinitely.

• Puneet Souda (Leerink Partners) inquired about early cancer detection trial timelines and competitive differentiation; management explained that their PROCEED and FIND studies are designed to closely match FDA requirements, with key readouts and possible submission targeted for late 2025 and 2027, respectively.

• Catherine Schulte (Baird) sought clarity on the timing and magnitude of potential Medicare coverage expansion for non-covered indications; management emphasized ongoing submissions and the need for strong supporting data, estimating significant upside if coverage is achieved within 12–18 months.

• Douglas Schenkel (Wolfe Research) asked about gross margin trajectory and whether guidance for Signatera unit growth should be revised upward; CFO Michael Brophy signaled cautious optimism, noting that margins would have improved more without the spike in first-time exome testing, but volume trends can be volatile.

• Rachel Vatnsdal Olson (JPMorgan) questioned the expected timeline for productivity among newly hired sales reps; Chapman responded that new reps typically take 6–9 months to ramp, and their impact is likely to become visible late this year and into 2026.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will be monitoring (1) clinical trial readouts, particularly for the PROCEED and IMvigor011 studies, as key indicators of Signatera’s future adoption and reimbursement prospects; (2) evidence of expanded Medicare and commercial payer coverage for additional cancer types and organ health products; and (3) tangible operating leverage from recent AI investments and salesforce expansion. Progress toward commercializing AI-powered diagnostics and securing new pharma partnerships will also be important markers.

Natera currently trades at $158, up from $141.45 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).

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