Adaptive 2025 Q3 Earnings Profitable Turnaround with 129.7% Net Income Surge

Adaptive Biotechnologies (ADPT) delivered a resounding Q3 2025 earnings beat, surpassing revenue expectations by 38% and reporting its first profit in nine years. The company raised full-year MRD revenue guidance and trimmed cash burn, signaling operational discipline.

Revenue

Adaptive’s total revenue surged 102.4% year-over-year to $93.97 million, driven by robust performance across its core segments. MRD revenue led with $56.79 million, fueled by 38% growth in clonoSEQ test volumes and regulatory milestone income. Service revenue expanded to $50.29 million, while regulatory milestone revenue reached $6.50 million. Immune Medicine revenue totaled $37.19 million, with collaboration revenue surging 860% to $33.74 million.

Earnings/Net Income

The company returned to profitability with EPS of $0.06, reversing a $0.22 loss in 2024 Q3. Net income jumped 129.7% to $9.54 million, a dramatic turnaround from an $32.10 million loss. Strategic cost control and MRD profitability were pivotal in this transformation.

Price Action

Post-earnings, ADPT shares surged 21.56% month-to-date, with 4.70% weekly and 4.39% daily gains.

Post-Earnings Price Action Review

The stock’s 21.56% MTD rally outperformed the S&P 500’s 1% gain, reflecting renewed investor confidence. While the Zacks Rank #3 (Hold) suggests neutrality, the earnings beat and guidance raise may sustain upward momentum. Analysts highlight the MRD segment’s EBITDA positivity and cash flow generation as key drivers for near-term optimism.

CEO Commentary

CEO Chad Robins emphasized MRD’s profitability, noting $7 million in adjusted EBITDA and cash flow positivity. Strategic priorities include expanding EMR integrations and advancing MRD as a treatment endpoint, with long-term ASP targets of $1,700–$1,800.

Guidance

Adaptive raised 2025 MRD revenue guidance to $202–$207 million (39–42% growth) and narrowed total operating expenses to $335–$340 million. Annual cash burn is now projected at $45–$50 million, down from $45–$55 million.

Additional News

1. Genentech Agreement Termination: Adaptive recognized $33.7 million in Immune Medicine revenue following the terminated Genentech deal, though this one-time gain does not recur.

2. Strategic Expansion: The company announced plans to scale EMR integrations to strengthen clonoSEQ’s market penetration and protect its competitive edge.

3. Collaboration Revenue Surge: Immune Medicine collaboration revenue jumped 860% to $33.74 million, underscoring partnerships’ role in diversifying revenue streams.