| Segment Information |
14. Segment InformationThere are no inter-segment revenues. See Note 3, Revenue for more information about each segment’s revenue. Our chief operating decision maker (“CODM”) is not regularly provided and does not review assets to assess each segment’s performance, make strategic decisions or allocate resources. As such, assets for reportable segments are not disclosed. The following tables set forth our segment information, including significant segment expenses that are (or are easily computable from) information regularly provided to our CODM, for the three and six months ended June 30, 2026 and 2025, respectively (in thousands):
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Three Months Ended June 30, 2026 |
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Three Months Ended June 30, 2025 |
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MRD |
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Immune Medicine |
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Total |
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MRD |
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Immune Medicine(1) |
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Total |
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Revenue |
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$ |
66,168 |
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$ |
5,385 |
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$ |
71,553 |
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|
$ |
49,938 |
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$ |
8,941 |
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$ |
58,879 |
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Less: |
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Cost of revenue |
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18,891 |
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* |
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18,891 |
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|
16,535 |
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* |
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16,535 |
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Research and development |
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8,610 |
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|
10,047 |
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18,657 |
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8,498 |
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15,053 |
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23,551 |
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Sales and marketing |
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24,796 |
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* |
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24,796 |
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21,954 |
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* |
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21,954 |
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General and administrative |
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13,489 |
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* |
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13,489 |
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10,131 |
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* |
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10,131 |
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Other segment items(2) |
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— |
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5,393 |
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5,393 |
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— |
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|
5,658 |
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|
5,658 |
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Add back segment non-cash and restructuring items: |
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Depreciation and amortization expense |
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2,409 |
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|
826 |
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3,235 |
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|
2,455 |
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1,585 |
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|
4,040 |
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Impairment of long-lived assets(3) |
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— |
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— |
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— |
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— |
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— |
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— |
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Restructuring expense(3) |
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77 |
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— |
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77 |
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— |
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— |
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— |
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Share-based compensation expense(4) |
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6,248 |
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2,960 |
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9,208 |
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6,637 |
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4,464 |
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|
11,101 |
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Adjusted EBITDA(5) |
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9,116 |
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(6,269 |
) |
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2,847 |
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1,912 |
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(5,721 |
) |
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(3,809 |
) |
Items to reconcile to consolidated net loss: |
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Segment non-cash and restructuring items |
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(12,520 |
) |
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(15,141 |
) |
Other unallocated items(1) |
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(30,268 |
) |
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(6,643 |
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Net loss |
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$ |
(39,941 |
) |
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$ |
(25,593 |
) |
*Non-significant segment expenses for Immune Medicine. |
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Six Months Ended June 30, 2026 |
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Six Months Ended June 30, 2025 |
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MRD |
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Immune Medicine |
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Total |
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MRD |
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Immune Medicine(1) |
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Total |
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Revenue |
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$ |
133,261 |
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$ |
9,166 |
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$ |
142,427 |
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$ |
93,659 |
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$ |
17,663 |
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$ |
111,322 |
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Less: |
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Cost of revenue |
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36,135 |
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* |
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36,135 |
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|
32,420 |
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* |
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32,420 |
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Research and development |
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17,836 |
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|
23,981 |
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41,817 |
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17,657 |
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29,541 |
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|
47,198 |
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Sales and marketing |
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|
49,538 |
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* |
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49,538 |
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|
43,367 |
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* |
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|
43,367 |
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General and administrative |
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26,008 |
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* |
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26,008 |
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|
19,633 |
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* |
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|
19,633 |
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Other segment items(2) |
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— |
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11,169 |
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|
11,169 |
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— |
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|
10,811 |
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|
10,811 |
|
Add back segment non-cash and restructuring items: |
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Depreciation and amortization expense |
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4,790 |
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|
1,831 |
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|
6,621 |
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5,118 |
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3,208 |
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|
8,326 |
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Impairment of long-lived assets(3) |
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— |
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|
347 |
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|
347 |
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— |
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— |
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|
— |
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Restructuring expense(3) |
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|
325 |
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|
395 |
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|
720 |
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— |
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— |
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— |
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Share-based compensation expense(4) |
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12,395 |
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|
6,782 |
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|
19,177 |
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|
12,101 |
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|
8,654 |
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|
20,755 |
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Adjusted EBITDA(5) |
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21,254 |
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(16,629 |
) |
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|
4,625 |
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(2,199 |
) |
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(10,827 |
) |
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(13,026 |
) |
Items to reconcile to consolidated net loss: |
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Segment non-cash and restructuring items |
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(26,865 |
) |
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(29,081 |
) |
Other unallocated items(1) |
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(37,716 |
) |
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|
|
|
|
|
(13,316 |
) |
Net loss |
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|
|
|
|
$ |
(59,956 |
) |
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|
|
|
|
|
|
$ |
(55,423 |
) |
*Non-significant segment expenses for Immune Medicine. |
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(1) Costs related to Digital Biotechnologies, Inc. are no longer included as Immune Medicine costs and have been reclassified to the “other unallocated items” total. (2) For the Immune Medicine segment, includes all Immune Medicine operating expenses, other than research and development expenses. (3) Represents expenses recognized in conjunction with a restructuring that primarily impacted research and development activities. (4) Represents share-based compensation expense related to various awards. See Note 12, Equity Incentive Plans for details on our share-based compensation expense. (5) Segment Adjusted EBITDA is a non-GAAP financial measure we define as revenue less expenses, adjusted for depreciation and amortization expense, impairment costs for long-lived assets, restructuring expense and share-based compensation expense generated and incurred, respectively, by each segment. Adjusted EBITDA related to our unallocated category is included in the calculation of consolidated Adjusted EBITDA but not shown above in the breakout and aggregation of segment Adjusted EBITDA. |