10-Q: Seer, Inc. Reports Q3 2026 Financials Amidst Revenue Decline

Seer, Inc. disclosed its third-quarter 2026 financial results, showing a decrease in total revenue and continued net losses, alongside efforts to control operating expenses.

Summary

• Seer, Inc. reported total revenue of $3.98 million for the three months ended September 30, 2026, a 3% decrease from $4.12 million in the same period of 2025.
• For the nine months ended September 30, 2026, total revenue was $9.88 million, a 20% decrease from $12.38 million in the prior year period.
• Net loss for the three months ended September 30, 2026, was $13.7 million, an improvement from $18.2 million in the prior year period.
• Net loss for the nine months ended September 30, 2026, was $47.5 million, an improvement from $57.6 million in the prior year period.
• The company had $198.1 million in cash, cash equivalents, and investments as of September 30, 2026, and an accumulated deficit of $513.4 million.
• Operating expenses decreased significantly, with R&D expenses down 40% and SG&A expenses down 5% for the three months ended September 30, 2026, compared to the prior year period.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative sentiment due to continued net losses, significant accumulated deficit, and a decrease in revenue, despite efforts to manage expenses.

Positives

• Net loss improved year-over-year for both the three-month period ($13.7M vs $18.2M) and the nine-month period ($47.5M vs $57.6M).
• Significant reduction in Research and Development expenses by 40% ($4.4 million) and Selling, General, and Administrative expenses by 5% ($0.6 million) for the three months ended September 30, 2026, compared to the prior year.
• The company maintains a substantial cash position of $198.1 million in cash, cash equivalents, and investments as of September 30, 2026, which management believes is sufficient for at least the next twelve months.
• The company has a share repurchase program with $25.0 million remaining authorization as of September 30, 2026.

Negatives

• Total revenue decreased by 3% for the three months ended September 30, 2026, and by 20% for the nine months ended September 30, 2026, compared to the respective prior year periods.
• The company has a substantial accumulated deficit of $513.4 million as of September 30, 2026.
• Related party revenue significantly decreased by 70% for the three months and 81% for the nine months ended September 30, 2026, compared to the prior year periods.
• The company expects to continue incurring significant expenses and operating losses in the near term.

Risks

• The company has a history of net losses and negative cash flows, which are expected to continue, and there is no assurance of achieving or sustaining profitability.
• The size of the markets for the Proteograph Product Suite may be smaller than estimated, or new market opportunities may not develop as quickly as expected, limiting sales potential.
• The company may not be able to successfully commercialize the Proteograph Product Suite or achieve broad scientific and market acceptance.
• Reliance on key personnel and the ability to attract, retain, and motivate qualified employees is critical, and recent management changes (resignation of President and CFO) introduce uncertainty.
• The company relies on a single contract manufacturer, Hamilton Company, for its instruments, creating potential supply chain risks.
• The company is involved in patent infringement litigation against Nanomics Biotechnology Co., Ltd., which could result in substantial litigation costs and potential loss of intellectual property protection.
• The company's ability to use Net Operating Losses (NOLs) to offset future taxable income may be limited by Section 382 of the Internal Revenue Code and state tax laws.
• The company's Class A common stock price has been and may continue to be volatile, influenced by various factors including financial performance, market conditions, and litigation.

Future Outlook

Management expects to continue incurring significant expenses and operating losses in the near term while investing to support anticipated growth. The company believes its current cash and investments provide sufficient liquidity for at least the next twelve months. Future capital requirements will depend on revenue growth, commercialization investments, acquisitions, R&D programs, and other factors.

Management Comments

• Our mission is to imagine and pioneer new ways to decode the biology of the proteome to improve human health.
• We believe that broader access to the proteome is essential, not only to understanding its complexity and accelerating biological insights, but also to expanding end-markets.
• With the new Proteograph workflow, we believe we have achieved a transformative milestone by significantly improving the performance and scalability of deep, unbiased proteomic analysis.
• We expect to continue to incur significant losses and do not expect positive cash flows from operations for the foreseeable future.

Industry Context

StockSavvy.ai notes that Seer, Inc. operates in the highly competitive life sciences and biotechnology sector, focusing on proteomics. The company's Proteograph Product Suite aims to provide deep, unbiased access to the proteome, a market that is evolving and where adoption curves for new technologies can be lengthy. Competition includes established players like Thermo Fisher Scientific and Illumina, as well as emerging companies.

Comparison to Industry Standards

• The company's net loss of $47.5 million for the nine months ended September 30, 2026, and accumulated deficit of $513.4 million, are significant but not uncommon for early-stage commercial life sciences companies investing heavily in R&D and market penetration.
• The decrease in revenue for the nine months ended September 30, 2026, by 20% compared to the prior year, is a concern and contrasts with companies that are achieving consistent revenue growth in the life sciences tools sector.
• The significant reduction in R&D expenses (31% for nine months) and SG&A expenses (9% for nine months) indicates a focus on cost management, which is a prudent step for a company with ongoing losses, but could also signal a slowdown in growth initiatives.
• The company's cash position of $198.1 million provides a runway, but the continued operational losses necessitate careful financial management and potential future capital raises, a common challenge for companies in this industry.

Management Changes

Legal Proceedings

• Seer, Inc. filed a patent infringement lawsuit against Nanomics Biotechnology Co., Ltd. (Nanomics) alleging infringement of five U.S. Patents.
• Seer, Inc. filed a complaint with the U.S. International Trade Commission (ITC) seeking an investigation into the importation of Nanomics' products for infringing the same five Asserted Patents.
• The ITC formally ordered institution of an investigation into the importation of Nanomics' Accused Products.
• The Northern District of Illinois action was ordered stayed pending the outcome of the ITC Action.
• Nanomics filed a Notice of Intent to Default, and the presiding ALJ issued an initial determination finding Nanomics in default.

Related Party Transactions

• The company made investments in PrognomiQ, Inc., including $10.0 million in Series D Preferred Stock in August 2024, $1.9 million in July 2025, and $1.5 million in January 2026.
• As of September 30, 2026, the company held approximately 30% of the outstanding capital stock of PrognomiQ.
• The company entered into a Simple Agreement for Future Equity (SAFE) with PrognomiQ, making an initial investment of $0.3 million and an additional $1.0 million during the three months ended September 30, 2026.
• Related party revenue decreased significantly, from $0.3 million in Q3 2025 to $0.09 million in Q3 2026, and from $0.8 million in 9M 2025 to $0.15 million in 9M 2026.

Stakeholder Impact

• Shareholders may experience continued stock price volatility due to financial performance, litigation, and market conditions.
• Employees may be impacted by ongoing cost-saving measures and potential future reductions in force.
• Customers may be affected by potential supply chain disruptions related to the reliance on a single contract manufacturer.
• Creditors and suppliers may face increased risk due to the company's ongoing net losses and substantial accumulated deficit.

Next Steps

• Continue broad marketing and sales of the Proteograph Product Suite.
• Attract, hire, and retain qualified personnel.
• Build out and expand in-house NP manufacturing capabilities.
• Continue research and development of other products and enhancements.
• Implement operational, financial, and management information systems.
• Obtain, maintain, expand, and protect intellectual property portfolio.
• Build infrastructure to operate and scale as a public company.

Key Dates

Recommendation

The company shows signs of operational improvement with reduced losses and controlled expenses, but the declining revenue and significant accumulated deficit, coupled with ongoing litigation and reliance on future commercial success, warrant a cautious approach. The substantial cash reserves provide a buffer, but the path to profitability remains uncertain, making a 'hold' recommendation appropriate for seasoned investors.

Keywords

Proteomics, Proteograph Product Suite, Life Sciences, Biotechnology, Nanoparticle Technology, Research Tools, Assay, Instrument