Natera Inc. (NTRA) saw its stock price surge 7.97% in after-hours trading on Thursday, following the release of its impressive second-quarter 2025 financial results. The genetic testing company reported a significant increase in revenue and improved gross margins, exceeding market expectations.

Natera announced total revenues of $546.6 million for Q2 2025, representing a robust 32.2% year-over-year growth. This substantial increase was primarily driven by a 32.3% rise in product revenues, which reached $544.4 million. The company's performance was bolstered by higher test volumes, with approximately 853,100 tests processed during the quarter, up from 760,300 in the same period last year. Additionally, Natera reported improvements in average selling prices, contributing to the strong revenue growth.

Investors were particularly encouraged by Natera's improved profitability metrics. The company's gross margin increased to 63.4% from 58.8% in the previous year, reflecting enhanced operational efficiency. Despite reporting a net loss of $100.9 million for the quarter, which was impacted by legal accruals and stock-based compensation expenses, the market responded positively to the overall financial picture. CEO Steve Chapman's statement highlighting the company's raised outlook for the year and commitment to advancing its pipeline of data and innovation likely contributed to the enthusiastic after-hours trading activity.