Investing.com -- Shares of Adaptive Biotechnologies (NASDAQ: ADPT ) surged 35% following a robust first-quarter earnings report that exceeded analyst expectations. The company reported a smaller-than-expected loss per share of ($0.20), compared to the analyst estimate of ($0.29), and revenue that outpaced consensus estimates, coming in at $52.44 million against expectations of $42.81 million.

The significant growth in Adaptive Biotechnologies’ stock can be attributed to the company’s impressive revenue increase of 25% compared to the same period last year, driven by a 34% rise in its Minimal Residual Disease (MRD) business revenue. This growth was bolstered by a 36% increase in clonoSEQ test volume, which now stands at 23,117 tests delivered. Additionally, the company has raised its full-year MRD revenue guidance to between $180 million and $190 million, indicating a potential annual growth of 24% to 31%.

Adaptive Biotechnologies also reported a decrease in operating expenses by 9% to $82.0 million, which, along with the updated revenue guidance, has led to a reduction in the forecast for the annual cash burn. The company now expects it to be between $50 million and $60 million, an improvement from the previous estimate of $60 million to $70 million.

In response to the earnings release, BTIG analyst Mark Massaro raised the price target on Adaptive Biotechnologies to $11.00 from $10.00 while maintaining a Buy rating. Massaro commented, "Driven by robust trends in its core MRD business, Adaptive delivered a strong Q1 beat-and-raise, lowered its cash burn outlook for the year, and provided some positive updates on the company’s Q1 earnings call, including on the commercial payor front. ADPT continues to track toward its goal of achieving positive Adj. EBITDA in its MRD business in 2H’25. We continue to believe there is more upside to the guide this year (more so than in any prior year we can recall). ADPT is driving strong growth from its core MRD clinical testing business. Shares of ADPT trade at 3.8x our 2026 rev estimate of $257M, below SMID cap clinical Dx peers which trade at 4.1x. We reiterate our Buy and raise our PT from $10 to $11."

Investors have clearly responded positively to the company’s financial results and the optimistic outlook provided by management, as reflected in the substantial increase in the stock price. Adaptive Biotechnologies’ focus on driving its MRD business to profitability and advancing its Immune Medicine drug discovery programs appears to be resonating with the market, setting the stage for potential long-term value creation for stakeholders.

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