Adaptive Biotechnologies Corp Segments Disclosure
We operate our business as two reportable segments: MRD and Immune Medicine. These segments are organized by market opportunity in commercial diagnostics and drug discovery, respectively.
The MRD business focuses on the use of our highly sensitive, next-generation sequencing assay to measure MRD in patients with hematologic malignancies. It is comprised of our clonoSEQ clinical diagnostic test, offered to clinicians, and our clonoSEQ assay, offered to biopharmaceutical partners to advance drug development efforts. Our MRD revenue consists of revenue generated from (1) providing our clonoSEQ report to clinical customers; (2) providing MRD sample testing services to biopharmaceutical customers and certain academic institutions, including investigator-led clinical trials; and (3) providing our clonoSEQ report or results to certain international laboratory sites through technology transfers.
The Immune Medicine business leverages our proprietary ability to sequence, map, pair and characterize TCRs and B cell receptors at scale. These capabilities enable us to offer an expanding suite of solutions including: immune receptor sequencing, licensing of our proprietary data, TCR-antigen prediction models and our target discovery capabilities. Our Immune Medicine revenue consists of revenue generated from (1) providing sample testing services for our commercial research product, Adaptive Immunosequencing; (2) data licensing and target discovery services; and (3) our former collaboration with Genentech under the Genentech Agreement.
There are no inter-segment revenues. See Note 3, Revenue for more information about each segment's revenue. Our CODM, which is our , evaluates performance of the MRD segment based on both revenue and Adjusted EBITDA and evaluates performance of the Immune Medicine segment based on Adjusted EBITDA. These measures help our CODM assess the trends and operating margin profile of the respective segments, which helps drive the level of investment made in each business. These measures also help our CODM assess and manage the potential capital utilization of each segment. Adjusted EBITDA for each of our segments includes costs that are directly aligned to each segment, as well as certain allocated shared expenses. These shared expenses primarily relate to our general and administrative functions, our non-laboratory facility space in our corporate headquarters and our production laboratory. We use the relative direct headcount assigned to each of the respective segments and our production laboratory sample volume to allocate these expenses.
We do not allocate certain expenses, such as our corporate insurance costs, external legal and audit costs and expenses related to our investor relations, chief executive officer and other related support functions. Additionally, we do not allocate costs related to Digital Biotechnologies, Inc. and our idle facility in Seattle, Washington, nor do we allocate interest expense related to our Purchase Agreement or interest and other income, net. Given these unallocated costs and income are not included in the measurements reviewed by the CODM to assess each segment's performance, they are designated as “other unallocated items.”
Our 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.
Our allocation methodology will be periodically evaluated and may change.
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 years ended December 31, 2025, 2024 and 2023 (in thousands):
|
|
Year Ended December 31, 2025 |
|
|
Year Ended December 31, 2024 |
|
|
Year Ended December 31, 2023(1) |
|
|||||||||||||||||||||||||||
|
|
MRD |
|
|
Immune Medicine(2) |
|
|
Total |
|
|
MRD |
|
|
Immune Medicine(2) |
|
|
Total |
|
|
MRD |
|
|
Immune Medicine(2) |
|
|
Total |
|
|||||||||
Revenue |
|
$ |
212,334 |
|
|
$ |
64,642 |
|
|
$ |
276,976 |
|
|
$ |
145,529 |
|
|
$ |
33,428 |
|
|
$ |
178,957 |
|
|
$ |
102,739 |
|
|
$ |
67,537 |
|
|
$ |
170,276 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cost of revenue |
|
|
67,033 |
|
|
* |
|
|
|
67,033 |
|
|
|
64,177 |
|
|
* |
|
|
|
64,177 |
|
|
|
63,273 |
|
|
* |
|
|
|
63,273 |
|
|||
Research and development |
|
|
35,027 |
|
|
|
56,416 |
|
|
|
91,443 |
|
|
|
40,743 |
|
|
|
59,714 |
|
|
|
100,457 |
|
|
|
42,153 |
|
|
|
77,867 |
|
|
|
120,020 |
|
Sales and marketing |
|
|
87,924 |
|
|
* |
|
|
|
87,924 |
|
|
|
77,579 |
|
|
* |
|
|
|
77,579 |
|
|
|
76,742 |
|
|
* |
|
|
|
76,742 |
|
|||
General and administrative |
|
|
42,081 |
|
|
* |
|
|
|
42,081 |
|
|
|
40,446 |
|
|
* |
|
|
|
40,446 |
|
|
|
46,961 |
|
|
* |
|
|
|
46,961 |
|
|||
Other segment items(3) |
|
|
— |
|
|
|
21,384 |
|
|
|
21,384 |
|
|
|
2,819 |
|
|
|
28,840 |
|
|
|
31,659 |
|
|
|
— |
|
|
|
35,010 |
|
|
|
35,010 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Items to reconcile net loss to Adjusted EBITDA(4) |
|
|
34,921 |
|
|
|
23,409 |
|
|
|
58,330 |
|
|
|
39,012 |
|
|
|
30,712 |
|
|
|
69,724 |
|
|
|
37,546 |
|
|
|
32,479 |
|
|
|
70,025 |
|
Adjusted EBITDA(4) |
|
|
15,190 |
|
|
|
10,251 |
|
|
|
25,441 |
|
|
|
(41,223 |
) |
|
|
(24,414 |
) |
|
|
(65,637 |
) |
|
|
(88,844 |
) |
|
|
(12,861 |
) |
|
|
(101,705 |
) |
Items to reconcile to consolidated net loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Share-based compensation expense(5) |
|
|
|
|
|
|
|
|
(42,330 |
) |
|
|
|
|
|
|
|
|
(43,074 |
) |
|
|
|
|
|
|
|
|
(50,426 |
) |
||||||
(6) |
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
(2,004 |
) |
|
|
|
|
|
|
|
|
— |
|
||||||
Impairment of long-lived assets(6) |
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
(7,205 |
) |
|
|
|
|
|
|
|
|
— |
|
||||||
Depreciation and amortization expense |
|
|
|
|
|
|
|
|
(16,000 |
) |
|
|
|
|
|
|
|
|
(17,441 |
) |
|
|
|
|
|
|
|
|
(19,599 |
) |
||||||
Other unallocated items(2) |
|
|
|
|
|
|
|
|
(26,568 |
) |
|
|
|
|
|
|
|
|
(24,234 |
) |
|
|
|
|
|
|
|
|
(53,574 |
) |
||||||
Net loss |
|
|
|
|
|
|
|
$ |
(59,457 |
) |
|
|
|
|
|
|
|
$ |
(159,595 |
) |
|
|
|
|
|
|
|
$ |
(225,304 |
) |
||||||
*Non-significant segment expenses for Immune Medicine. |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
(1) Segment information for the year ended December 31, 2023 is presented on a comparable basis to that of the 2025 and 2024 periods and is based on judgments and allocation methods from our organizational changes implemented during 2024.
(2) Costs related to Digital Biotechnologies, Inc. are no longer included as Immune Medicine costs and have been reclassified to the “other unallocated items” total.
(3) For the MRD segment, includes MRD expenses related to the impairment of long-lived assets. For the Immune Medicine segment, includes all Immune Medicine operating expenses, other than research and development expenses.
(4) Adjusted EBITDA is a non-GAAP financial measure. See “Management's Discussion and Analysis of Financial Condition and Results of Operations—Adjusted EBITDA” for an explanation of how it is calculated and used by management.
(5) Represents share-based compensation expense related to stock option, restricted stock unit and market-based restricted stock unit awards. See Note 14, Equity Incentive Plans for details on our share-based compensation expense.
(6) Represents expenses recognized in conjunction with restructuring activities. See Note 15, Restructurings for details on our restructuring expense.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.