Adaptive Biotechnologies Corporation

What they do

Adaptive Biotechnologies operates two main businesses: an MRD business selling its FDA-authorized clonoSEQ next-generation sequencing test for minimal residual disease in lymphoid cancers (both clinically and to biopharma partners), and an Immune Medicine business that sequences, maps, and characterizes T cell and B cell receptors to discover disease-related antigens and develop products for autoimmunity and other applications. The company generates revenue from clinical testing, biopharma collaborations, and licensing of its proprietary immune data.

Revenue drivers

• MRD business – clonoSEQ clinical testing — Core growth driver; in Q2 2026 MRD revenue was $66.2M, up 33% year-over-year, and made up 92% of total revenue. Test volume rose 43% to 36,111 tests delivered.
• MRD Pharma — clonoSEQ assay offered to biopharmaceutical partners for drug development; contributes to MRD revenue and benefits from coverage expansion to over 300 million lives in ALL/MM, over 270 million in CLL, and over 90 million in DLBCL.
• Immune Medicine business — Includes immune receptor sequencing, data licensing, TCR-antigen prediction models, and target discovery. In Q2 2026 revenue was $5.4M, down 40% year-over-year excluding Genentech agreement revenue, which generated no revenue that quarter.

Recent performance

In Q2 2026, total revenue was $71.6M, up 22% year-over-year, but net loss widened to $39.9M from $25.6M, partly due to a loss on settlement of the OrbiMed Purchase Agreement. Excluding that loss, net loss was $16.2M. Adjusted EBITDA loss improved to $0.7M from $7.2M a year earlier. Total 2025 revenue was $277.0M, up from $179.0M in 2024, with net loss improving to $59.5M. Cash and marketable securities stood at $371.7M as of June 30, 2026.

Strategy

Management is pursuing a separation of its MRD and Immune Medicine businesses to enhance shareholder value. It completed a $345M zero-coupon convertible notes offering and repaid the OrbiMed Purchase Agreement to fortify the balance sheet. The company continues to expand clonoSEQ coverage and integrate with Epic EHR systems, now enabled in 173 sites. In Immune Medicine, it focuses on proprietary datasets (over 100,000 disease signatures and 5,000,000 TCR-antigen matches) to develop applications in autoimmune indications like multiple sclerosis and type 1 diabetes.

Risks

• Ongoing net losses — The company has incurred significant net losses since inception and expects future losses, with a cumulative net loss of $59.5M in 2025 and a net loss of $39.9M in Q2 2026.
• Dependence on reimbursement and coverage — Market acceptance of clonoSEQ depends on continued Medicare and commercial payor coverage decisions, with coverage varying by indication and payer.
• Reliance on limited suppliers and lab operations — Laboratory operations depend on a limited number of single suppliers for equipment and reagents, and any errors or supply disruptions could impair testing.
• Potential failure of biopharma collaborations — Collaborations for drug development, such as the Genentech Agreement, may fail or be terminated, as evidenced by Genentech generating no revenue in Q2 2026.

Outlook

Management raised full-year 2026 MRD revenue guidance to $268-278M, implying 26-31% annual growth. Total company operating expenses are expected between $350M and $355M. No revenue guidance is provided for the Immune Medicine business as it undergoes separation. The company expects to provide further details on the outlook during its conference call.