Adaptive Biotechnologies Reports Strong Revenue Growth Amid Strategic Shift

Adaptive Biotechnologies US00650F1093

Preliminary figures for 2025 reveal a year of robust expansion for Adaptive Biotechnologies, with total revenue climbing approximately 55%. The company now faces a pivotal strategic transition following the conclusion of a major partnership, raising questions about its path to profitability, which management targets for the coming year.

The biotechnology firm is set to release its complete audited financial results for 2025 on Thursday, February 5. This report is anticipated to provide critical details for the company's financial planning and outlook for the current fiscal period.

Key preliminary financial metrics include:
* Full-Year 2025 Revenue: Approximately $277 million.
* Fourth Quarter 2025 Revenue: Roughly $72 million, representing a 51% increase year-over-year.
* Year-End Liquidity: The company held about $227 million in cash and equivalents, a position management views as providing financial stability.

Leadership will also engage with the investment community at several conferences, including the BTIG MedTech Conference on February 10 and the TD Cowen conference on March 2. These events are expected to offer further clarity on the company's strategic direction.

Diagnostic Division Drives Performance

The core driver of this growth has been the Minimal Residual Disease (MRD) diagnostics business, centered on the clonoSEQ test.
* The MRD segment generated around $212 million in revenue for 2025, a 46% year-over-year gain.
* Fourth-quarter MRD revenue reached about $62 million, up 54%.
* The volume of clonoSEQ tests delivered increased by 39% for the full year.

Based on this momentum, Adaptive Biotechnologies has set a goal to achieve a positive adjusted EBITDA and generate positive free cash flow for the entire company during the 2026 fiscal year.

Strategic Realignment Post-Genentech

A significant development is the termination of the company's collaboration with Genentech, initiated in 2018. The agreement for the co-development of T-cell therapies for cancer will officially conclude on February 9.

This dissolution has two primary implications:
1. Financial: Adaptive Biotechnologies recorded approximately $33.7 million in non-cash revenue during the second half of 2025. This accounting entry stems from the accelerated amortization of previously received payments.
2. Strategic: The company is now released from its prior exclusivity obligations in oncology cell therapies. Its strategic focus is shifting toward digital models for T-cell receptor (TCR) discovery and its preclinical pipeline targeting autoimmune diseases, key components of its Immune Medicine platform.