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- **Revenue Surge**: Q3 revenue of $94 million (+102% YoY), MRD revenue at $56.8 million (+52% YoY), driven by 38% test volume growth and $1,340 ASP.
- **Profitability Breakthrough**: MRD business turned cash flow positive with $7 million EBITDA, sequencing gross margin up to 66%.
- **Strategic Wins**: First commercial payer coverage in DLBCL, NCCN CLL guideline updates, and $200 million MRD Pharma backlog.
- **Updated Guidance**: Full-year MRD revenue raised to $202-$207 million, cash burn reduced to $45-$50 million.
- **Growth Drivers**: Blood-based testing at 45%, community volume at 31%, and 11 new EMR integrations boosting serial testing.

**【CEO Summary Section】**
- **Revenue Growth and Profitability**: Total revenue reached $94 million (102% YoY growth), with MRD revenue at $56.8 million (52% YoY). Adjusted EBITDA for MRD business turned positive at $7 million, achieving cash flow positivity ahead of plan. Sequencing gross margin improved to 66% (10% YoY increase) due to NovaSeq X Plus adoption and volume leverage.
- **Clinical Volume Expansion**: ClonoSEQ tests grew 38% YoY to 27,111, with US ASP rising 28% to $1,340. Blood-based testing reached 45% of volume, exceeding the full-year goal. Community-based testing contributed 31% of volume, up from 20% pre-Flatiron integration.
- **Strategic Wins**: NCCN guidelines updated for CLL, incorporating MRD-guided treatment. First commercial payer coverage in DLBCL and expanded CLL coverage (260 million lives). Total backlog for MRD Pharma stood at $200 million.
- **Updated Guidance**: Full-year MRD revenue raised to $202-$207 million (39%-42% YoY growth), with cash burn reduced to $45-$50 million.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income of $9.5 million, Non-GAAP EPS of $1.08. Total company gross margin (excluding Genentech) was 70%, driven by 66% sequencing gross margin. Operating expenses stabilized sequentially at $83.7 million, with cash burn down 51% YoY to $24.2 million.
- **Segment Performance**: MRD adjusted EBITDA of $7 million (vs. -$6.1 million YoY). Immune medicine EBITDA deficit narrowed to $10 million (vs. -$8.7 million YoY). Total company cash position of $217 million.
- **Guidance Tightening**: Full-year operating expenses reduced to $335-$340 million, reflecting cost discipline. MRD cash burn expected at 15% of revenue, with immune medicine at $25-$30 million.

**【Q&A Key Highlights】**
- **MRD Pharma Backlog**: $200 million backlog to be recognized over 5-7 years, with 2025 CLL bookings doubling YoY. FDA endpoint qualification efforts in CLL and DLBCL expected to drive future growth.
- **ASP Trends**: Q3 ASP of $1,340 on track to meet $1,300+ target, with long-term goal of $1,700-$1,800. Coverage wins in DLBCL and CLL support ASP expansion.
- **EMR Integration Impact**: 11 new EMR integrations (7 academic, 4 community), with integrated accounts contributing 24% of community volume (vs. 20% pre-launch). Serial testing orders in Flatiron accounts grew 17% QoQ.
- **Community Penetration**: 30% of volume from community settings, with 65 sales reps focused on community expansion. Blood-based testing reached 45% of total volume, up 3-4% YoY in myeloma and ALL.
- **Future Investments**: $25-$30 million annual cash burn for immune medicine R&D, balanced against MRD profitability. Focus on TCR antigen prediction models and T-cell depletion antibody pipeline.

Adaptive Biotechnologies Corp (ADPT) Q3 2025 Earnings Call Transcript

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ADPT

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