Burning Rock Reports First Quarter 2025 Financial Results

GUANGZHOU, China, June 06, 2025 (GLOBE NEWSWIRE) -- Burning Rock Biotech Limited (NASDAQ: BNR, the “Company” or “Burning Rock”), a company focused on the application of next generation sequencing (NGS) technology in the field of precision oncology, today reported financial results for the three months ended March 31, 2025. Recent Business Updates Therapy Selection and MRD Personalized Minimal Residual Disease (MRD) product, CanCatch® Custom supports advancement in oesophageal squamous cell carcinoma（OSCC）treatment, with results published in the Molecular Cancer in May 2025. The study is a two-arm, multicenter, randomized, double-blind phase 2 study, comparing the efficacy of systemic treatment combining nCT with immunotherapy against nCT alone for OSCC patients. The study demonstrates that Perioperative Nivolumab plus chemotherapy is a viable and safe option for systemically treating locally advanced resectable OSCC, and monitoring minimal residual disease through ctDNA could be potentially valuable for assessing the effectiveness of adjuvant therapy and for prognostic evaluation in a systemic manner.Presented study results on non-small cell lung cancer and gastrointestinal stromal tumor (GIST) at the ASCO in June 2025. “Personalized tumor-informed ctDNA has the potential to inform recurrence in high-risk locally advanced stage GIST patients, especially for patients with irregular adjuvant therapy” and “MUSETALK-Lung01 (MUltiomics SEquencing Technique AppLication Kick-start) is a prospective, longitudinal, observational study designed to evaluate the clinical utility of a tumor-naïve ctDNA assay in patients with early-stage non-small cell lung cancer (NSCLC).”Presented multiple study results at the 2025 AACR in April, showcasing the clinical utility of the tumor-informed personalized MRD assay (CanCatch® Custom) and the tumor-naïve methylation-based MRD assay. First Quarter 2025 Financial Results Revenues were RMB133.1 million (US$18.3 million) for the three months ended March 31, 2025, representing a 5.9% increase from RMB125.6 million for the same period in 2024. Revenue generated from central laboratory business was RMB38.3 million (US$5.3 million) for the three months ended March 31, 2025, representing a 19.6% decrease from RMB47.6 million for the same period in 2024, primarily attributable to a decrease in the number of tests, as we continued to focus on our in-hospital business.Revenue generated from in-hospital business was RMB57.7 million (US$7.9 million) for the three months ended March 31, 2025, representing a 0.5% increase from RMB57.4 million for the same period in 2024, driven by a continuous growth in sales volume.Revenue generated from pharma research and development services was RMB37.1 million (US$5.1 million) for the three months ended March 31, 2025, representing a 79.9% increase from RMB20.6 million for the same period in 2024, primarily attributable to increased development and testing services performed for our pharma customers, and several milestones of our pharma programs were achieved. Cost of revenues was RMB35.7 million (US$4.9 million) for the three months ended March 31, 2025, representing a 10.6% decrease from RMB39.9 million for the same period in 2024, primarily due to a decrease in cost of central laboratory business, which was in line with the decrease in revenue generated from this business. Gross profit was RMB97.4 million (US$13.4 million) for the three months ended March 31, 2025, representing a 13.7% increase from RMB85.7 million for the same period in 2024. Gross margin was 73.2% for the three months ended March 31, 2025, compared to 68.2% for the same period in 2024. By channel, gross margin of central laboratory business was 84.1% for the three months ended March 31, 2025, compared to 77.7% during the same period in 2024, primarily due to a reduction in material and labor costs resulted from cost optimization and control measures and a decreased depreciation and rental cost in relation to our laboratory of Guangzhou headquarter; gross margin of in-hospital business was 76.1% for the three months ended March 31, 2025, compared to 68.3% during the same period in 2024, primarily due to the same reason; gross margin of pharma research and development services was 57.5% for the three months ended March 31, 2025, compared to 46.1% during the same period of 2024, primarily due to the cost optimization measures and an increase in test volume of higher margin projects. Non-GAAP gross profit, which excludes depreciation and amortization expenses, RMB100.7 million (US$13.9 million) for the three months ended March 31, 2025, representing an 8.3% increase from RMB93.0 million for the same period in 2024. Non-GAAP gross margin was 75.6% for the three months ended March 31, 2025, compared to 74.0% for the same period in 2024. Operating expenses were RMB112.6 million (US$15.5 million) for the three months ended March 31, 2025, representing a 46.8% decrease from RMB211.5 million for the same period in 2024. The decrease was primarily driven by budget control measures and headcount reduction to improve the Company’s operating efficiency. Research and development expenses were RMB40.4 million (US$5.6 million) for the three months ended March 31, 2025, representing a 38.8% decrease from RMB66.0 million for the same period in 2024, primarily due to (i) a decrease in amortized expense on share-based compensation; (ii) a decrease in the expenditure for detection research and (iii) a decrease in depreciation and amortization.Selling and marketing expenses were RMB40.9 million (US$5.6 million) for the three months ended March 31, 2025, representing a 12.7% decrease from RMB46.9 million for the same period in 2024, primarily due to (i) a decrease in staff cost resulted from the reorganization of our sales department to improve operating efficiency and (ii) a decrease in depreciation and amortization.General and administrative expenses were RMB31.3 million (US$4.3 million) for the three months ended March 31, 2025, representing a 68.3% decrease from RMB98.7 million for the same period in 2024, primarily due to (i) a decrease in amortized expense on share-based compensation; (ii) a decrease in depreciation and amortization; (iii) a decrease in staff cost resulted from the reorganization; and (iv) a decrease in operating lease expense for office building. Net loss was RMB13.5 million (US$1.9 million) for the three months ended March 31, 2025, compared to RMB121.5 million for the same period in 2024. Cash, cash equivalents and restricted cash were RMB497.4 million (US$68.5 million) as of March 31, 2025. Exchange Rate Information This press release contains translations of certain Renminbi amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from Renminbi to U.S. dollars and from U.S. dollars to Renminbi are made at a rate of RMB7.2567 to US$1.00, the exchange rate on March 31, 2025, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all. About Burning Rock Burning Rock Biotech Limited (NASDAQ: BNR), whose mission is to guard life via science, focuses on the application of next generation sequencing (NGS) technology in the field of precision oncology. Its business consists of i) NGS-based therapy selection testing for late-stage cancer patients, and ii) cancer early detection, which has moved beyond proof-of-concept R&D into the clinical validation stage. For more information about Burning Rock, please visit: ir.brbiotech.com. Safe Harbor Statement This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target,” “confident” and similar statements. Burning Rock may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Burning Rock’s beliefs and expectations, are forward-looking statements. Such statements are based upon management’s current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Burning Rock’s control. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. All information provided in this press release is as of the date of this press release, and Burning Rock does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. Non-GAAP Measures In evaluating the business, the Company considers and uses non-GAAP measures, such as non-GAAP gross profit and non-GAAP gross margin, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The company defines non-GAAP gross profit as gross profit excluding depreciation and amortization. The company defines non-GAAP gross margin as gross margin excluding depreciation and amortization. The company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. The company believe non-GAAP gross profit and non-GAAP gross margin excluding non-cash impact of depreciation and amortization reflect the company’s ongoing business operations in a manner that allows more meaningful period-to-period comparisons. Contact: IR@brbiotech.com Selected Operating Data As of March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025In-hospital Channel: Pipeline partner hospitals(1)28 29 30 29 30Contracted partner hospitals(2)59 59 61 63 63Total number of partner hospitals87 88 91 92 93 (1)Refers to hospitals that are in the process of establishing in-hospital laboratories, laboratory equipment procurement or installation, staff training or pilot testing using the Company’s products.(2)Refers to hospitals that have entered into contracts to purchase the Company’s products for use on a recurring basis in their respective in-hospital laboratories the Company helped them establish. Kit revenue is generated from contracted hospitals. Selected Financial Data For the three months endedRevenuesMarch 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 (RMB in thousands)Central laboratory channel47,614 48,773 39,984 39,278 38,296In-hospital channel57,387 59,872 63,769 43,464 57,687Pharma research and development channel20,622 26,888 24,891 43,280 37,099Total revenues125,623 135,533 128,644 126,022 133,082 For the three months endedGross profitMarch 31,2024 June 30,2024 September 30,2024 December 31,2024 March 31,2025 (RMB in thousands)Central laboratory channel37,002 38,424 33,262 33,153 32,191In-hospital channel39,192 44,058 46,580 29,563 43,895Pharma research and development channel9,500 12,956 12,004 26,706 21,315Total gross profit85,694 95,438 91,846 89,422 97,401 For the three months endedShare-based compensation expensesMarch 31,2024 June 30,2024 September 30,2024 December 31,2024 March 31,2025 (RMB in thousands)Cost of revenues596 464 289 520 308Research and development expenses12,287 12,008 3,180 3,202 1,800Selling and marketing expenses508 1,232 1,917 1,353 1,025General and administrative expenses55,990 54,407 4,732 2,937 1,413Total share-based compensation expenses69,381 68,111 10,118 8,012 4,546 Burning Rock Biotech Limited Unaudited Condensed Statements of Comprehensive Loss (in thousands, except for number of shares and per share data) For the three months ended March 31,2024 June 30,2024 September 30, 2024 December 31,2024 March 31, 2025 March 31, 2025 RMB RMB RMB RMB RMB US$Revenues125,623 135,533 128,644 126,022 133,082 18,340 Cost of revenues(39,929) (40,095) (36,798) (36,600) (35,681) (4,918)Gross profit85,694 95,438 91,846 89,422 97,401 13,422 Operating expenses: Research and development expenses(65,985) (64,952) (49,150) (52,203) (40,389) (5,566)Selling and marketing expenses(46,856) (48,907) (48,411) (46,730) (40,888) (5,635)General and administrative expenses(98,681) (92,794) (32,874) (37,289) (31,303) (4,314)Impairment loss on long-lived assets (35,127) Total operating expenses(211,522) (206,653) (130,435) (171,349) (112,580) (15,515)Loss from operations(125,828) (111,215) (38,589) (81,927) (15,179) (2,093)Interest income4,038 3,187 3,173 1,814 2,581 356 Other income (expense), net434 (82) 1 4,353 (652) (90)Foreign exchange (loss) gain, net(13) 262 (129) (220) (26) (4)Loss before income tax(121,369) (107,848) (35,544) (75,980) (13,276) (1,831)Income tax expenses(180) (190) (201) (5,314) (224) (31)Net loss(121,549) (108,038) (35,745) (81,294) (13,500) (1,862)Net loss attributable to Burning Rock Biotech Limited’s shareholders(121,549) (108,038) (35,745) (81,294) (13,500) (1,862)Net loss attributable to ordinary shareholders(121,549) (108,038) (35,745) (81,294) (13,500) (1,862)Loss per share for class A and class B ordinary shares: Class A ordinary shares - basic and diluted(1.19) (1.05) (0.35) (0.79) (0.13) (0.02)Class B ordinary shares - basic and diluted(1.19) (1.05) (0.35) (0.79) (0.13) (0.02)Weighted average shares outstanding used in loss per share computation: Class A ordinary shares - basic and diluted85,219,188 85,271,858 85,902,670 86,036,286 90,291,658 90,291,658 Class B ordinary shares - basic and diluted17,324,848 17,324,848 17,324,848 17,324,848 17,324,848 17,324,848 Other comprehensive income (loss), net of tax of nil: Foreign currency translation adjustments590 940 (4,054) 6,009 (72) (10)Total comprehensive loss(120,959) (107,098) (39,799) (75,285) (13,572) (1,872)Total comprehensive loss attributable to Burning Rock Biotech Limited’s shareholders(120,959) (107,098) (39,799) (75,285) (13,572) (1,872) Burning Rock Biotech LimitedUnaudited Condensed Consolidated Balance Sheets(In thousands) As of December 31, 2024 March 31,2025 March 31,2025 RMB RMB US$ASSETS Current assets: Cash and cash equivalents519,849 495,145 68,233Restricted cash2,313 2,261 312Accounts receivable, net152,013 159,463 21,974Contract assets, net13,855 17,178 2,367Inventories, net62,625 65,424 9,016Prepayments and other current assets, net25,963 22,072 3,042Total current assets776,618 761,543 104,944Non-current assets: Property and equipment, net47,152 41,162 5,672Operating right-of-use assets53,188 43,804 6,036Intangible assets, net421 386 53Other non-current assets7,926 7,822 1,078Total non-current assets108,687 93,174 12,839TOTAL ASSETS885,305 854,717 117,783 Burning Rock Biotech LimitedUnaudited Condensed Consolidated Balance Sheets (Continued)(in thousands) As of December 31,2024 March 31,2025 March 31,2025 RMB RMB US$LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable33,747 35,938 4,952 Deferred revenue117,895 117,200 16,151 Accrued liabilities and other current liabilities89,498 76,198 10,501 Customer deposits592 592 82 Current portion of operating lease liabilities24,567 22,524 3,104 Total current liabilities266,299 252,452 34,790 Non-current liabilities: Non-current portion of operating lease liabilities27,754 19,814 2,730 Other non-current liabilities10,425 10,649 1,467 Total non-current liabilities38,179 30,463 4,197 TOTAL LIABILITIES304,478 282,915 38,987 Shareholders’ equity: Class A ordinary shares124 124 17 Class B ordinary shares21 21 3 Additional paid-in capital5,002,255 5,005,991 689,844 Treasury stock(63,264) (62,453) (8,606)Accumulated deficits(4,200,261) (4,213,761) (580,672)Accumulated other comprehensive loss(158,048) (158,120) (21,790)Total shareholders’ equity580,827 571,802 78,796 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY885,305 854,717 117,783 Burning Rock Biotech LimitedUnaudited Condensed Statements of Cash Flows(in thousands) For the three months ended March 31,2024 March 31,2025 March 31,2025 RMB RMB US$Net cash generated from (used in) operating activities19,062 (23,527) (3,242)Net cash used in investing activities(812) (1,531) (211)Net cash used in financing activities(74) - - Effect of exchange rate on cash, cash equivalents and restricted cash5,739 302 43 Net increase in (decrease) cash, cash equivalents and restricted cash23,915 (24,756) (3,410)Cash, cash equivalents and restricted cash at the beginning of period498,247 522,162 71,955 Cash, cash equivalents and restricted cash at the end of period522,162 497,406 68,545 Burning Rock Biotech LimitedReconciliations of GAAP and Non-GAAP Results For the three months ended March 31,2024 June 30,2024 September 30,2024 December 31,2024 March 31,2025 (RMB in thousands)Gross profit: Central laboratory channel37,002 38,424 33,262 33,153 32,191In-hospital channel39,192 44,058 46,580 29,563 43,895Pharma research and development channel9,500 12,956 12,004 26,706 21,315Total gross profit85,694 95,438 91,846 89,422 97,401Add: depreciation and amortization: Central laboratory channel1,919 1,226 1,277 1,010 562In-hospital channel1,524 824 798 623 290Pharma research and development channel3,856 4,417 3,846 2,534 2,412Total depreciation and amortization included in cost of revenues7,299 6,467 5,921 4,167 3,264Non-GAAP gross profit： Central laboratory channel38,921 39,650 34,539 34,163 32,753In-hospital channel40,716 44,882 47,378 30,186 44,185Pharma research and development channel13,356 17,373 15,850 29,240 23,727Total non-GAAP gross profit92,993 101,905 97,767 93,589 100,665Non-GAAP gross margin： Central laboratory channel81.7% 81.3% 86.4% 87.0% 85.5%In-hospital channel70.9% 75.0% 74.3% 69.5% 76.6%Pharma research and development channel64.8% 64.6% 63.7% 67.6% 64.0%Total non-GAAP gross margin74.0% 75.2% 76.0% 74.3% 75.6%

Burning Rock Reports First Quarter 2025 Financial Results

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