Natera, Inc. (NTRA): PESTLE Analysis [Nov-2025 Updated]

You're looking for a clear-eyed view of Natera, Inc. (NTRA) through the PESTLE lens, mapping out the near-term risks and opportunities that matter most for the 2025 fiscal year. The key takeaway is that Natera's future is defintely tied to Centers for Medicare & Medicaid Services (CMS) reimbursement decisions and its success in defending its intellectual property, but the technological moat in cell-free DNA (cfDNA) testing remains a powerful opportunity that we need to unpack. We'll show you exactly where the political headwinds meet the economic reality, so you can see the clear actions to take right now.

Natera, Inc. (NTRA) - PESTLE Analysis: Political factors

Centers for Medicare & Medicaid Services (CMS) coverage decisions drive revenue and risk.

For Natera, Inc., the Centers for Medicare & Medicaid Services (CMS) is the single most important political and regulatory body, acting as a gatekeeper to a massive patient population and a primary revenue source for the oncology franchise. A positive coverage decision from CMS's Molecular Diagnostics Services Program (MolDX) immediately translates into a larger addressable market and significantly de-risks a product's commercial trajectory.

This dynamic was clearly seen in 2025 with the expanded coverage for the Signatera molecular residual disease (MRD) test. In February 2025, Natera secured Medicare coverage for Signatera for surveillance in patients with Non-Small Cell Lung Cancer (NSCLC). This was followed in June 2025 by coverage for the genome-based Signatera MRD assay across a broad range of indications, including colorectal, breast, bladder, ovarian, and lung cancer. This regulatory success directly fueled the company's financial outlook.

Here's the quick math: Driven by this and other factors, Natera raised its full-year 2025 revenue guidance to a range of $2.18 billion to $2.26 billion as of November 2025. That's a powerful validation of the political-regulatory strategy. Your exposure to this risk is high, but the recent trend is defintely positive.

• CMS coverage is critical for Signatera's Average Selling Price (ASP), which reached roughly $1,200 in Q3 2025.
• Oncology test volumes increased 53.9% year-over-year in Q3 2025, largely due to this expanded coverage.

Shifting US healthcare policy on diagnostic test regulation (e.g., VALID Act).

The regulatory landscape for Laboratory-Developed Tests (LDTs)-which is what Natera's core products like Signatera and Panorama are-shifted dramatically in Natera's favor in 2025. The U.S. Food and Drug Administration (FDA) had sought to regulate LDTs as medical devices, which would have subjected them to costly premarket reviews and a slow approval process, essentially killing rapid innovation.

However, a federal court vacated the FDA's Final Rule on LDTs in March 2025, ruling that the agency lacked the statutory authority to regulate them under the Federal Food, Drug, and Cosmetic Act (FDCA). The Department of Health and Human Services (HHS) chose not to appeal this decision in May 2025, effectively ending the immediate threat.

This ruling is a major political win, keeping LDTs under the less burdensome Clinical Laboratory Improvement Amendments (CLIA) framework, which is administered by CMS. This allows Natera to develop and launch new tests faster than competitors relying on traditional in vitro diagnostics (IVDs). The proposed legislative fix, the Verifying Accurate, Leading-edge IVCT Development (VALID) Act, which would have created a new regulatory pathway, did not advance in Congress.

Government pressure on pricing for molecular diagnostic tests.

While Natera has successfully increased its Signatera Average Selling Price (ASP) to around $1,200 as of Q3 2025, the overarching political pressure on pricing remains a significant headwind for the entire molecular diagnostics industry. The Protecting Access to Medicare Act (PAMA) of 2014 mandates cuts to the Medicare Clinical Laboratory Fee Schedule (CLFS) to better align rates with private payer data.

Congress has continually delayed the full implementation of these cuts, but the political reality is that the cuts are anticipated to phase in over 2025, 2026, and 2027, with annual reductions capped at 15%. The industry is pushing for permanent reform through the Reforming and Enhancing Sustainable Updates to Laboratory Testing Services Act (RESULTS Act), which aims to cap reductions at 5% per year and use more robust claims data.

This is a constant political battle, and while Natera's proprietary tests are somewhat insulated due to their unique MolDX coverage, any broad CLFS cuts will pressure overall reimbursement rates and could impact future test pricing. The political goal is cost containment, so pricing pressure won't vanish.

Global trade tensions impacting supply chain for lab equipment and reagents.

The geopolitical environment in 2025, marked by resurging protectionist policies and tariff wars, creates a clear supply chain risk for Natera's laboratory operations. The molecular diagnostics business relies heavily on specialized lab equipment, consumables, and chemical reagents, many of which are sourced internationally, particularly from Asia and Europe.

The Trump administration's trade policy actions in 2025, including a baseline 10% tariff on all imports and targeted 25% tariffs on certain Chinese imports like electronics and semiconductors, directly increase the cost of goods for Natera. Semiconductors and electronic components are essential for the next-generation sequencing (NGS) machines Natera uses to run its tests.

Increased tariffs mean higher landed costs, which either shrink Natera's gross margin-projected to be between 62% and 64% for 2025-or force the company to pass costs on, which is tough given the pricing pressure from payors. This environment compels Natera to diversify its supply base and potentially look at nearshoring (moving production closer to the US), but that takes time and capital.

• Trade Risk: New US tariffs in 2025 create cost inflation for imported lab equipment and reagents.
• Operational Impact: Higher procurement costs pressure the 2025 gross margin outlook of 62%-64%.
• Mitigation Action: Diversify sourcing away from heavily tariffed regions like China to ensure supply continuity.

Natera, Inc. (NTRA) - PESTLE Analysis: Economic factors

The economic landscape for Natera, Inc. (NTRA) in 2025 is defined by a dichotomy: strong revenue growth from expanding test volume, particularly in oncology, is being offset by the persistent pressure of a high interest rate environment and the ongoing battle for favorable reimbursement rates on novel and expanded genetic tests. You need to understand that while volume is up, the cost of capital is defintely higher, and every dollar of revenue is a hard-fought win against powerful payers.

Reimbursement rates for non-invasive prenatal testing (NIPT) and cancer tests.

Reimbursement rates are the lifeblood of Natera's business model, particularly for its flagship products, Panorama (NIPT) and Signatera (Molecular Residual Disease or MRD testing). The company has made significant progress, which is reflected in its improved pricing metrics. For the oncology test, Signatera, the average selling price (ASP) is now approximately $1,200, a key driver for the raised 2025 revenue guidance of $2.18 billion to $2.26 billion.

The reimbursement environment for NIPT is also stabilizing, with over 60% of patients having no out-of-pocket cost with insurance, which drives volume. Still, the actual payment Natera receives per test remains a constant negotiation, and the company offers a reduced price of $149 or less per test for patients who qualify for financial assistance, which impacts the overall ASP.

High interest rate environment increasing cost of capital for R&D expansion.

The sustained high interest rate environment in 2025 directly increases the cost of capital (WACC) for Natera, making its substantial research and development (R&D) investments more expensive. The company has guided R&D costs for 2025 to be between $575 million and $625 million, which is a huge outlay for a growth-focused biotech firm. Here's the quick math on their existing debt:

• Total outstanding debt (as of Q3 2025): $80.3 million
• Floating Interest Rate: 30-day Secured Overnight Financing Rate (SOFR) plus 50 basis points (bps)
• 30-Day Average SOFR (November 2025): Approximately 4.04%
• Effective Interest Rate: ~4.04% + 0.50% = ~4.54%

While the debt balance is modest relative to their cash position (over $1 billion as of Q3 2025), this higher cost sets the benchmark for any future debt financing needed to support R&D expansion into new areas like early cancer detection. The cost of capital is simply higher across the board, and that pressure is real.

Payer pushback on testing volume and medical necessity criteria.

Payer pushback has evolved from blanket denials to a more nuanced control over testing volume and the scope of tests covered, focusing on medical necessity criteria. While major payers like UnitedHealthcare have simplified the process by eliminating prior authorization for core NIPT (trisomies 13, 18, and 21) as of April 1, 2025, they maintain strict medical policy guidelines. The battleground has shifted to expanded non-invasive prenatal testing (NIPT-plus) for conditions like microdeletions or rare autosomal aneuploidies (RAAs).

Payers consider expanded testing unproven and not medically necessary due to insufficient evidence on clinical utility, which limits Natera's ability to monetize its more comprehensive panels like Panorama and Fetal Focus. The company must continue to invest heavily in clinical trials to push for coverage for additional non-covered tumor types, an effort that costs money today but is critical for future revenue.

Competition from large, integrated diagnostics companies like Laboratory Corporation of America Holdings (Labcorp).

Natera faces intense competition from large, integrated diagnostics players, most notably Laboratory Corporation of America Holdings (Labcorp). Labcorp's sheer scale and established network provide a significant economic advantage, especially in securing favorable contracts with major health systems and payers. Labcorp's Diagnostics Laboratories segment alone is projected to generate revenue between $10.85 billion and $10.96 billion in 2025. This dwarfs Natera's full-year 2025 revenue guidance of $2.18 billion to $2.26 billion.

Labcorp's ability to bundle a vast array of routine and specialty tests, including their own NIPT and oncology offerings, creates a formidable competitive barrier. This scale allows them to absorb pricing pressure and invest in a broader range of high-growth specialty areas, including oncology, which directly competes with Natera's Signatera.

The takeaway is simple: Natera is a high-growth, high-margin specialty player, but it's operating in the shadow of a giant. Your next step should be to model the impact of a 5% average reimbursement cut on Signatera's ASP against the current R&D budget to stress-test their cash flow projections.

Natera, Inc. (NTRA) - PESTLE Analysis: Social factors

Growing public acceptance and demand for early, non-invasive genetic screening.

The social acceptance of non-invasive genetic screening, particularly non-invasive prenatal testing (NIPT), is a major tailwind for Natera. This acceptance is driven by patient preference for a simple blood draw over invasive procedures like amniocentesis, which carry a small risk of miscarriage. The U.S. NIPT market is showing strong growth, reflecting this demand. For 2025, the global non-invasive prenatal testing market is estimated to reach $6.27 billion, growing at a compound annual growth rate (CAGR) of 14.5% from 2024. This trend is further solidified by professional bodies increasingly recommending NIPT as a first-line screening option, expanding the addressable population beyond just high-risk pregnancies.

This widespread adoption of non-invasive testing is a clear opportunity. Natera's Panorama test is a core part of this, and the company is leveraging this acceptance to expand its product offerings, like the Fetal Focus product which was expanded in Q3 2025 to cover over 20 genes.

Increased patient and physician awareness of minimal residual disease (MRD) testing in oncology.

Physician and patient awareness of minimal residual disease (MRD) testing is rapidly transforming it from a research tool into a clinical standard in oncology. MRD testing, which detects trace amounts of cancer cells after treatment (like Natera's Signatera), is now seen as essential for guiding personalized treatment and predicting relapse. The global MRD testing market is accelerating, projected to grow at a CAGR of 12.2% from 2024.

This growing awareness is directly translating into volume growth for Natera. The company processed 202,000 clinical MRD tests in the third quarter of 2025, marking a record sequential growth of approximately 21,500 units compared to the prior quarter. This massive volume increase is defintely a result of better clinical data and improved patient-physician dialogue around precision oncology. Critically, Medicare approved coverage for Signatera under LCD L38779 in June 2025, a major social and financial signal that this technology is now mainstream.

Ethical debates around genetic data privacy and data security.

The collection of vast amounts of genomic data through tests like Panorama and Signatera is fueling a significant public and legislative debate over privacy and security. Genetic data is uniquely sensitive because it has implications for family members and can be re-identified even when anonymized.

This debate is moving quickly into policy. In 2025 alone, we saw a flurry of legislative action:

• The Department of Justice's 'Bulk Data Rule' took effect in April 2025, restricting the transfer of bulk genetic data (more than 100 U.S. persons for genomic data) to foreign adversaries.
• Federal bills like the 'Don't Sell My DNA Act' were introduced, aiming to require affirmative consumer consent before genetic information is used or sold in a bankruptcy proceeding.
• State-level laws, such as Montana's Genetic Information Privacy Act, were amended in May 2025 to create exemptions for de-identified data used in research, showing the legal system is trying to balance innovation and privacy.

The core risk is that a major data breach could erode public trust overnight, so compliance and security are non-negotiable operational priorities.

Disparities in access to advanced genetic testing across socioeconomic groups.

While demand is high, access to advanced genetic testing remains unequal, which is a major social challenge for the entire industry. This disparity is a function of socioeconomic status (SES), insurance coverage, and geography. In the US, individuals residing in high vulnerability (low SES) areas had 42% lower odds of using genetic testing services compared to those in low vulnerability areas, even after controlling for individual characteristics.

The financial barrier is the most immediate problem. A 2025 analysis found that while financial assistance programs (FAPs) exist, only 22.9% of patients used hospital-based support, compared to 57.0% who accessed aid through commercial programs. This suggests that financial aid is available, but the process is complex and underutilized in the most vulnerable communities. Addressing this requires more than just reimbursement wins; it demands simplified, transparent, and culturally relevant outreach. Racial and geographic disparities also persist, with rural and non-White neighborhoods being less likely to receive testing.

Natera, Inc. (NTRA) - PESTLE Analysis: Technological factors

Continuous innovation in cfDNA sequencing and bioinformatics for improved accuracy.

The core of Natera, Inc.'s competitive edge is its relentless technological innovation in cell-free DNA (cfDNA) sequencing and bioinformatics. This isn't just incremental; it's about pushing the limits of detection. The major step-change in 2025 was the broad launch of the ultra-sensitive Signatera Genome assay in April.

This new assay moves beyond exome-based sequencing, leveraging whole genome sequencing (WGS) and Natera's patented multiplex polymerase chain reaction (PCR) next-generation sequencing (NGS) methodology. This technical upgrade allows the test to detect circulating tumor DNA (ctDNA) at ultra-low frequencies, down to 1 part per million (PPM). That's like finding a specific grain of sand on miles of beach. To be fair, this level of sensitivity requires significant investment, and Natera's commitment is clear: the company projects its 2025 research and development (R&D) costs to be between $575 million and $625 million.

Here's the quick math on the performance gain, based on a pan-cancer study presented at the 2025 American Society of Clinical Oncology (ASCO) Annual Meeting, which analyzed over 3,000 samples:

Expansion of the Signatera (MRD) test into new cancer types and treatment monitoring.

The Signatera molecular residual disease (MRD) test is Natera's growth engine, and its expansion is a key technological driver. The company is actively validating its technology across a much wider range of solid tumors. Data presented at ASCO 2025 demonstrated the clinical utility of Signatera across 10 different cancer types, a significant expansion from initial indications.

Plus, a major new product launch is the tissue-free MRD capability, expected to roll out in mid-2025, initially for colorectal cancer (CRC). This is a big deal because it eliminates the need for a tumor tissue sample, which can be difficult or impossible to obtain, dramatically expanding the addressable patient population. The market is responding: Natera processed approximately 211,000 oncology tests in the third quarter of 2025, marking a 53.9% increase year-over-year. This volume growth is directly tied to the expanding clinical utility and adoption of the Signatera platform.

Need to defend and extend patent portfolio against competitors.

In the highly competitive diagnostics space, intellectual property (IP) is the ultimate moat. Natera maintains a robust defense strategy for its technology, which is built on a portfolio of over 500 issued or pending patents worldwide. This defense is constant, as evidenced by ongoing litigation.

For example, in August 2025, a court invalidated certain claims in two patents Natera asserted against NeoGenomics' RaDaR v1.1 test. But, the company was quick to point out that the critical U.S. Patent No. 11,519,035, which had previously led to an injunction against a competitor's product, remains valid. Honestly, patent litigation is expensive and a constant drain on resources, but it's defintely necessary to protect the R&D investment. On the offensive side, Natera continues to extend its IP, securing new patents like U.S. patent No. 12,203,142 in March 2025, which covers methods for tumor-informed ctDNA monitoring.

Integration of artificial intelligence (AI) for enhanced test result interpretation.

Natera is moving aggressively to integrate Artificial Intelligence (AI) and machine learning into its bioinformatics pipeline, which is the only way to handle the massive data volumes from whole-genome sequencing. The company launched its proprietary AI foundation model platform in August 2025. This platform is trained on one of the largest multimodal oncology datasets in the industry, including over 250,000 tumor exomes and more than 1 million longitudinal plasma timepoints.

This core AI model, which uses over 1 billion parameters, is designed to accelerate biomarker discovery and improve clinical decision support. The financial opportunity is significant, as Natera is targeting approximately $200 million in potential savings over time by using AI to drive operational and laboratory efficiencies. This is about margin expansion, not just better science. Practical applications of this AI platform include:

• Digital Patient Simulator: Virtually models patients to suggest next-line therapies and optimize treatment.
• Real-Time Trial Matching: Uses molecular and clinical data to accelerate patient recruitment for clinical trials.
• NeoPredict: An advanced algorithm that predicts individual patient response to immunotherapy.

The technology is already helping physicians make better, faster decisions.

Natera, Inc. (NTRA) - PESTLE Analysis: Legal factors

Ongoing, high-stakes patent infringement litigation with competitors like Guardant Health and CareDx

The legal landscape for Natera is heavily defined by aggressive patent litigation, a common but costly reality in the cell-free DNA (cfDNA) testing space. This is a perpetual drain on resources, but also a necessary defense of their intellectual property (IP). The financial impact is clear: Natera's second quarter 2025 financial results showed a net loss affected by approximately $19.8 million in legal accruals alone, reflecting the cost of these ongoing battles.

The risk isn't just the cost of defense; it's the potential for massive damages or injunctions that could halt sales of core products. For instance, while the high-profile patent dispute with Illumina was settled in 2020, new fronts have opened. A federal judge in 2025 overturned a $96 million jury verdict Natera had won against CareDx in a patent case, illustrating the volatile, high-stakes nature of this sector's legal environment.

Here's the quick math on the legal cost pressure for 2025:

• Selling, General, and Administrative (SG&A) costs for 2025 are anticipated to be between $1.08 billion and $1.18 billion, a range that explicitly includes increases in consulting and legal expenses.
• The Q2 2025 legal accruals of $19.8 million contributed to a net loss of approximately ($0.21) per diluted share for the quarter.

You have to defend your patents, but defintely watch how much it costs to do it.

Compliance with the Health Insurance Portability and Accountability Act (HIPAA) on patient data

As a healthcare provider, Natera is a covered entity under the Health Insurance Portability and Accountability Act (HIPAA), meaning strict rules govern the use and disclosure of Protected Health Information (PHI). The complexity is amplified because genetic data is considered highly sensitive PHI, requiring heightened safeguards and explicit patient consent for many uses beyond treatment, payment, and healthcare operations.

Natera's stated policy is not to sell patient PHI, nor to share it for marketing purposes without explicit authorization. This is a critical risk mitigation step, especially as public and regulatory scrutiny on data privacy intensifies. The company must maintain its certification under the Clinical Laboratory Improvement Amendments (CLIA) and accreditation from the College of American Pathologists (CAP), which includes rigorous standards for data handling and security.

The core compliance challenge is ensuring every data touchpoint-from the patient portal to research collaborations-adheres to the strictest interpretation of HIPAA and related state laws. If a breach occurs, the financial and reputational damage would be severe.

State-level legislation regarding genetic testing consent and data usage

The lack of a single, comprehensive federal law on genetic data privacy means Natera must navigate a patchwork of state-level legislation that is rapidly evolving in 2025. This creates significant operational complexity, as consent forms and data retention policies must be tailored to the specific requirements of each state where a patient resides.

Several states have enacted new or amended laws in 2025, adding layers of compliance:

• Texas Genomic Act of 2025 (HB 130): Imposes broad requirements on entities handling genome sequencing data of Texas residents.
• Indiana HB 1521 (Enacted May 6, 2025): Establishes a focused regulatory framework for consumer genetic testing providers, but importantly, it exempts genetic testing ordered by healthcare providers for medical purposes, which is Natera's primary model.
• Montana SB 163 (Effective October 1, 2025): Amends the state's Genetic Information Privacy Act to include an express exemption for the use of deidentified genetic data for internal, medical, or scientific research, which is a positive for Natera's R&D efforts, but requires a strict deidentification standard.

The most immediate and complex challenge is the new federal Department of Justice's "Bulk Data Rule," effective April 8, 2025, which restricts the transfer of bulk genetic data to certain 'countries of concern,' a rule that impacts all companies like Natera operating in the global research and testing space.

FDA scrutiny on laboratory-developed tests (LDTs) and clinical validity claims

The regulatory environment for Laboratory-Developed Tests (LDTs)-the category under which Natera's key products like Signatera and Panorama are offered-experienced a major shift in 2025. This is a huge factor for Natera's business model.

In a landmark decision in March 2025, a U.S. federal court vacated the U.S. Food and Drug Administration's (FDA) Final Rule that attempted to regulate LDTs as medical devices.

This ruling is a significant win for Natera and the LDT industry, as it preserves the existing regulatory framework under the Clinical Laboratory Improvement Amendments (CLIA) by the Centers for Medicare & Medicaid Services (CMS). This means:

• Faster Innovation: Labs can continue to develop and launch new tests, like Natera's tissue-free molecular residual disease (MRD) capability, much faster than the traditional FDA premarket approval process allows.
• Lower Compliance Cost: The company avoids the massive compliance costs and delays associated with meeting the FDA's medical device standards.

The market has responded to this regulatory tailwind, with Natera reporting a 56.48% year-over-year revenue increase in 2025, driven by its NIPT and MRD platforms, which are LDTs. The risk remains that Congress could pass the VALID Act or similar legislation to impose FDA oversight in the future, but for 2025, the regulatory pressure has eased considerably. That March 2025 court ruling was a game-changer for speed to market.

Natera, Inc. (NTRA) - PESTLE Analysis: Environmental factors

You're running a high-growth diagnostics company like Natera, and the environmental pressure isn't just about PR; it's an operational cost and a regulatory risk. The core challenge is scaling up lab-intensive, high-throughput testing-which means more waste and higher energy use-while simultaneously meeting aggressive 2025 sustainability targets. Your team has made strong progress on non-hazardous waste, but the specialized nature of bio-waste remains a critical, less-disclosed risk.

Management of hazardous biological and chemical waste from high-throughput lab operations

The sheer volume of testing, which saw Natera process approximately 3,064,600 tests in the full year 2024, creates a massive waste stream. While the company has excelled at reducing non-biohazardous waste, the management of infectious and chemical waste from the sequencing process is a persistent cost and compliance risk. In 2021, Natera reported that approximately 124,795 pounds of waste were sent to incineration, a common disposal method for biohazardous material, which is expensive and carries a higher carbon footprint than recycling or composting.

The focus has been on the easier win: non-hazardous waste reduction. Honestly, that's smart. The 2025 goal to reduce the non-biohazardous waste footprint per test kit by 25% was achieved early, eliminating nearly 1 million pounds of material since 2021. Still, the regulatory environment for bio-waste is only getting stricter, particularly in California and Texas where Natera's main labs are located.

Energy consumption of large-scale sequencing and data processing centers

Genomic sequencing and the subsequent bioinformatics (data processing) are highly energy-intensive operations. Natera's commitment to energy efficiency is measurable, showing an approximate 8% reduction in Scope 1 (direct) and Scope 2 (purchased energy) emissions since 2021. This reduction is critical, especially when the total operational greenhouse gas (GHG) emissions were reported at 9,042.83 metric tons of CO2 equivalent in 2023, even as test volume was growing.

The good news is that both the Austin and San Carlos sites have achieved My Green Lab Certification, which is a concrete, third-party validation of efficiency efforts in a lab setting. For context, the entire U.S. data center sector is projected to consume a modeled range of 325 to 580 TWh by 2028, so any efficiency gain in Natera's own data processing is a direct cost-saver and a significant environmental factor.

Here's a quick look at the emissions breakdown, which shows where the current operational impact lies:

Pressure for sustainable supply chain sourcing for lab consumables

The sheer number of test kits and consumables required to support a projected 2025 total revenue of $2.18 billion to $2.26 billion creates significant supply chain pressure. Investors and regulators are increasingly scrutinizing Scope 3 emissions (indirect emissions from the value chain), which typically account for the vast majority of a diagnostic company's total footprint.

Natera is addressing this with a clear, actionable 2025 goal:

• Collaborate with 25 of the top 100 critical suppliers to implement Scope 1-2 emissions reduction initiatives.
• Start the transition to 100% recyclable material in test kits.

This is defintely a good start, but it only covers a quarter of the top suppliers. The risk is that the remaining 75% could face supply chain disruptions or cost hikes due to their own lack of sustainable practices, which would ultimately hit Natera's gross margin, guided to be approximately 60% to 64% for 2025.

Corporate reporting on environmental, social, and governance (ESG) metrics

Natera has established a clear, public framework for its ESG reporting, publishing its 2024 Sustainability Report in June 2025. This transparency is a competitive advantage, especially with institutional investors like BlackRock demanding clear metrics. The company has made strong progress on its short-term goals, which reinforces its credibility:

• Achieved the 2025 kit waste reduction goal (~31% reduction) ahead of schedule.
• Exceeded the community goal by logging over 22,000 employee volunteer hours since 2021, surpassing the 20,000-hour target.
• Disclosed a full Scope 1, 2, and 3 greenhouse gas inventory, which is a key benchmark for the Biotechnology industry.

The next challenge is moving beyond the 2025 goals and setting more ambitious, long-term targets, especially for Scope 3 emissions, to maintain a competitive edge in the capital markets.