Adaptive 2025 Q3 Earnings Profitability Turnaround with 129.7% Net Income Growth

Adaptive Biotechnologies (ADPT) reported Q3 2025 earnings that exceeded expectations, with revenue surging 102.4% year-over-year and profitability returning after an eight-year loss streak. The company raised MRD revenue guidance and narrowed operating expense and cash burn ranges, signaling improved financial discipline.

Revenue

The company’s total revenue reached $93.97 million, a 102.4% increase from $46.44 million in Q3 2024. This outperformed the Zacks Consensus Estimate of $68.02 million by 38.15%. The MRD business, contributing 60% of revenue, grew 52% year-over-year to $56.79 million, driven by 38% growth in clonoSEQ test volume to 27,111 tests. Immune Medicine revenue totaled $37.19 million, with collaboration revenue jumping 860.8% to $33.74 million, partly due to $33.7 million from the terminated Genentech Agreement.

Earnings/Net Income

Adaptive returned to profitability with EPS of $0.06, reversing from a $0.22 loss in Q3 2024—a 127.3% positive swing. Net income surged to $9.54 million, a 129.7% improvement from a $32.10 million loss, marking a dramatic turnaround after eight consecutive quarterly losses. The EPS result, while positive, reflects adjusted figures, as the GAAP EPS was -$0.15, outperforming the consensus of -$0.16.

Post-Earnings Price Action Review

Adaptive’s stock price surged 21.56% month-to-date, with a 4.70% weekly gain and 4.39% daily increase. The stock’s performance aligns with its earnings beat and guidance upgrades, though analysts remain cautious due to its Zacks Rank #3 (Hold). Investors are monitoring whether the recent momentum can sustain amid ongoing R&D investments in immune medicine.

CEO Commentary

CEO Chad Robins highlighted the MRD business’s profitability milestones, including $7 million adjusted EBITDA and cash flow positivity. He emphasized 52% MRD revenue growth, driven by clinical volume and ASP expansion, and outlined strategic priorities such as scaling EMR integrations and expanding blood-based testing.

Guidance

Adaptive raised full-year 2025 MRD revenue guidance to $202–$207 million (prior: $190–$200 million) and narrowed total company operating expenses to $335–$340 million. Cash burn is projected at $45–$50 million, down from $45–$55 million previously. The MRD business is expected to deliver 39–42% revenue growth, with 104,000 tests anticipated for the year.

Additional News

No significant non-earnings-related news was disclosed within three weeks of the earnings report. The company remains focused on its MRD and immune medicine pipelines, with no announced M&A activity, C-level changes, or dividend/buyback initiatives.