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Burning Rock Reports Second Quarter 2025 Financial Results

1. BNR's Q2 2025 revenue increased by 9.6% year-on-year. 2. In-hospital revenue rose 4.4%, while central lab revenue dropped 16.2%. 3. Pharma R&D services revenue surged by 68.1%, reflecting strong demand. 4. Operating expenses decreased by 42.1%, signaling improved efficiency. 5. Net loss reduced significantly compared to the previous year.

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Why Bullish?

BNR showed significant revenue growth and reduced net loss, indicating improvement. Historical context: Companies demonstrating revenue growth often see share price increases, similar to trends noted after competitive earnings in the biotech sector.

How important is it?

The financial results indicate improved operational efficiencies and revenue growth, likely appealing to investors and causing upward pressure on stock price. The reduction in losses adds to the positive perception.

Why Short Term?

Positive earnings news typically influences stocks quickly; investors often react immediately to growth metrics. For example, companies like Moderna experienced short-term surges post-earnings surprises when similar metrics were released.

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GUANGZHOU, China, Sept. 08, 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 June 30, 2025.

Second Quarter 2025 Financial Results

Total Revenues were RMB148.5 million (US$20.7 million) for the three months ended June 30, 2025, representing a 9.6% increase from RMB135.5 million for the same period in 2024.

  • Revenue generated from in-hospital business was RMB62.5 million (US$8.7 million) for the three months ended June 30, 2025, representing a 4.4% increase from RMB59.9 million for the same period in 2024, driven by an increase in sales volume from existing hospitals and new contracted partner hospitals.
  • Revenue generated from central laboratory business was RMB40.9 million (US$5.7 million) for the three months ended June 30, 2025, representing a 16.2% decrease from RMB48.8 million for the same period in 2024, primarily attributable to a decrease in the number of tests, as we continued our transition towards in-hospital testing.
  • Revenue generated from pharma research and development services was RMB45.2 million (US$6.3 million) for the three months ended June 30, 2025, representing a 68.1% increase from RMB26.9 million for the same period in 2024, primarily attributable to an increased development and testing services performed for our pharma customers.

Cost of revenues was RMB40.5 million (US$5.6 million) for the three months ended June 30, 2025, representing an 0.9% increase from RMB40.1 million for the same period in 2024.

Gross profit was RMB108.1 million (US$15.1 million) for the three months ended June 30, 2025, representing a 13.3% increase from RMB 95.4 million for the same period in 2024. Gross margin was 72.8% for the three months ended June 30, 2025, compared to 70.4% for the same period in 2024. By channel, gross margin of central laboratory business was 87.9% for the three months ended June 30, 2025, compared to 78.8% during the same period in 2024, primarily due to a reduction in material and shipping costs resulted from cost optimization and control measures; gross margin of in-hospital business was 74.4% for the three months ended June 30, 2025, compared to 73.6% during the same period in 2024, primarily due to a decreased depreciation; gross margin of pharma research and development services was 56.8% for the three months ended June 30, 2025, compared to 48.2% during the same period of 2024, primarily due to a decreased depreciation and an increase in test volume of higher margin projects.

Non-GAAP gross profit, which excludes depreciation and amortization expenses, was RMB110.5 million (US$15.4 million) for the three months ended June 30, 2025, representing a 8.4% increase from RMB101.9 million for the same period in 2024. Non-GAAP gross margin was 74.4% for the three months ended June 30, 2025, compared to 75.2% for the same period in 2024.

Operating expenses were RMB119.6 million (US$16.7 million) for the three months ended June 30, 2025, representing a 42.1% decrease from RMB206.7 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 RMB49.8 million (US$6.9 million) for the three months ended June 30, 2025, representing a 23.4% decrease from RMB65.0 million for the same period in 2024, primarily due to (i) a decrease in amortized expense on share-based compensation; and (ii) a decrease in the expenditure for research projects.
  • Selling and marketing expenses were RMB38.4 million (US$5.4 million) for the three months ended June 30, 2025, representing a 21.5% decrease from RMB48.9 million for the same period in 2024, primarily due to (i) a decrease in staff cost resulted from the reorganization of the sales department and improvement in operating efficiency; and (ii) a decrease in entertainment expense; and (iii) a decrease in depreciation and amortization expense.
  • General and administrative expenses were RMB31.4 million (US$4.4 million) for the three months ended June 30, 2025, representing a 66.1% decrease from RMB92.8 million for the same period in 2024, primarily due to an decrease in amortized expense on share-based compensation.

Net loss was RMB9.7 million (US$1.4 million) for the three months ended June 30, 2025, compared to RMB108.0 million for the same period in 2024.

Cash, cash equivalents and restricted cash were RMB455.0 million (US$63.5 million) as of June 30, 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 RMB7.1636 to US$1.00, the exchange rate on June 30, 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
 June 30,

2024
 September 30,

2024
 December 31,

2024
 March 31,

2025
 June 30,

2025
In-hospital Channel:         
Pipeline partner hospitals(1)29 30 29 30 30
Contracted partner hospitals(2)59 61 63 63 63
Total number of partner hospitals 88 91 92 93 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 ended
Revenues



June 30,

2024
 September 30,

2024
 December

31, 2024
 March 31,

2025
 June 30,

2025
 (RMB in thousands)
Central laboratory channel48,773 39,984 39,278 38,296 40,861
In-hospital channel59,872 63,769 43,464

 57,687 62,496
Pharma research and development channel26,888 24,891 43,280 37,099 45,197
Total revenues135,533 128,644 126,022 133,082 148,554



 For the three months ended
Gross profit



June 30,

2024
 September 30,

2024
 December

31, 2024
 March 31,

2025
 June 30,

2025
 (RMB in thousands)
Central laboratory channel38,424 33,262 33,153

 32,191 35,937
In-hospital channel44,058 46,580 29,563

 43,895 46,490
Pharma research and development channel12,956 12,004 26,706

 21,315 25,676
Total gross profit

95,438 91,846 89,422 97,401 108,103



 For the three months ended
Share-based compensation expenses



June 30,

2024
 September 30,

2024
 December

31, 2024
 March 31,

2025
 June 30,

2025
 (RMB in thousands)
Cost of revenues464 289 520

 308 280 
Research and development expenses12,008 3,180 3,202 1,800 (270)
Selling and marketing expenses1,232 1,917 1,353 1,025 364 
General and administrative expenses54,407 4,732 2,937 1,413 2,005 
Total share-based compensation expenses

68,111 10,118 8,012 4,546 2,379 
          



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
 June 30,

2024

 September 30,

2024


 December 31,

2024


 March 31,

2025


 June 30,

2025


 June 30,

2025


 RMB

 RMB

 RMB

   RMB

 US$

Revenues135,533  128,644  126,022  133,082  148,554  20,737 
Cost of revenues(40,095) (36,798) (36,600) (35,681) (40,451) (5,646)
Gross profit95,438  91,846  89,422  97,401  108,103  15,091 
Operating expenses:                 
Research and development expenses(64,952) (49,150) (52,203) (40,389) (49,770) (6,948)
Selling and marketing expenses(48,907) (48,411) (46,730) (40,888) (38,413) (5,362)
General and administrative expenses(92,794) (32,874) (37,289) (31,303) (31,417) (4,386)
Impairment loss on long-lived assets-  -  (35,127) -  -  - 
Total operating expenses(206,653) (130,435) (171,349) (112,580) (119,600) (16,696)
Loss from operations (111,215) (38,589) (81,927) (15,179) (11,497) (1,605)
Interest income3,187  3,173  1,814  2,581  2,226  311 
Other (expense) income, net(82) 1  4,353  (652) 387  54 
Foreign exchange gain (loss), net262  (129) (220) (26) (574) (80)
Loss before income tax(107,848) (35,544) (75,980) (13,276) (9,458) (1,320)
Income tax expenses(190) (201) (5,314) (224) (244) (34)
Net loss(108,038) (35,745) (81,294) (13,500) (9,702) (1,354)
Net loss attributable to Burning Rock Biotech Limited's shareholders(108,038) (35,745) (81,294) (13,500) (9,702) (1,354)
Net loss attributable to ordinary shareholders(108,038) (35,745) (81,294) (13,500) (9,702) (1,354)
Loss per share for class A and class B ordinary shares:                 
Class A ordinary shares - basic and diluted(1.05) (0.35) (0.79) (0.13) (0.09) (0.01)
Class B ordinary shares - basic and diluted(1.05) (0.35) (0.79) (0.13) (0.09) (0.01)
Weighted average shares outstanding used in loss per share computation:                  
Class A ordinary shares - basic and diluted85,271,858  85,902,670  86,036,286  90,291,658  90,357,970  90,357,970 
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 adjustments940  (4,054) 6,009  (72) (243) (34)
Total comprehensive loss(107,098) (39,799) (75,285) (13,572) (9,945) (1,388)
Total comprehensive loss attributable to Burning Rock Biotech Limited's shareholders(107,098) (39,799) (75,285) (13,572) (9,945) (1,388)



Burning Rock Biotech Limited

Unaudited Condensed Statements of Comprehensive Loss

(in thousands, except for number of shares and per share data)
 
 For the six months ended
 June 30,

2024

 June 30,

2025

 June 30,

2025
 RMB

 RMB

 US$
Revenues261,156  281,636  39,315 
Cost of revenues(80,024) (76,132) (10,629)
Gross profit181,132  205,504  28,686 
Operating expenses:   
Research and development expenses(130,937) (90,159) (12,586)
Selling and marketing expenses(95,763) (79,301) (11,070)
General and administrative expenses(191,475) (62,720) (8,755)
Total operating expenses(418,175) (232,180) (32,411)
Loss from operations (237,043) (26,676) (3,725)
Interest income7,225  4,807  671 
Other income (expense), net352  (265) (37)
Foreign exchange gain (loss), net249  (600) (84)
Loss before income tax(229,217) (22,734) (3,175)
Income tax expenses(370) (468) (65)
Net loss(229,587) (23,202) (3,240)
Net loss attributable to Burning Rock Biotech Limited's shareholders(229,587) (23,202) (3,240)
Net loss attributable to ordinary shareholders(229,587) (23,202) (3,240)
Loss per share for class A and class B ordinary shares:   
Class A ordinary shares - basic and diluted(2.24) (0.22) (0.03)
Class B ordinary shares - basic and diluted(2.24) (0.22) (0.03)
Weighted average shares outstanding used in loss per share computation:    
Class A ordinary shares - basic and diluted85,246,969  90,324,997  90,324,997 
Class B ordinary shares - basic and diluted17,324,848  17,324,848  17,324,848 
Other comprehensive income (loss), net of tax of nil:   
Foreign currency translation adjustments1,530  (315) (44)
Total comprehensive loss(228,057) (23,517) (3,284)
Total comprehensive loss attributable to Burning Rock Biotech Limited's shareholders(228,057) (23,517) (3,284)



Burning Rock Biotech Limited

Unaudited Condensed Consolidated Balance Sheets

(In thousands)
 
 As of
 December 31,

2024
 June 30,

2025
 June 30,

2025
 RMB  RMB US$
ASSETS     
Current assets:     
Cash and cash equivalents519,849 452,721 63,197
Restricted cash2,313 2,303 321
Accounts receivable, net152,013 189,969 26,519
Contract assets, net13,855 14,755 2,060
Inventories, net62,625 57,810 8,070
Prepayments and other current assets, net25,963 23,254 3,246
Total current assets776,618 740,812 103,413
Non-current assets:     
Property and equipment, net47,152 38,968 5,440
Operating right-of-use assets53,188 38,168 5,328
Intangible assets, net421 352 49
Other non-current assets7,926 6,631 926
Total non-current assets108,687 84,119 11,743
TOTAL ASSETS885,305 824,931 115,156



Burning Rock Biotech Limited

Unaudited Condensed Consolidated Balance Sheets (Continued)

(in thousands)
 
 As of
 December 31,

2024


 June 30,

2025

 June 30,

2025
 RMB

 RMB

 US$
LIABILITIES AND SHAREHOLDERS' EQUITY     
Current liabilities:     
Accounts payable33,747  32,164  4,490 
Deferred revenue117,895  102,800  14,350 
Accrued liabilities and other current liabilities89,498  75,120  10,487 
Customer deposits592  592  83 
Current portion of long-term borrowings-  200  28 
Current portion of operating lease liabilities24,567  19,255  2,688 
Total current liabilities266,299  230,131  32,126 
Non-current liabilities:     
Long-term borrowings-  1,800  251 
Non-current portion of operating lease liabilities27,754  17,871  2,495 
Other non-current liabilities10,425  10,894  1,521 
Total non-current liabilities38,179  30,565  4,267 
TOTAL LIABILITIES304,478  260,696  36,393 




Shareholders' equity:
     
Class A ordinary shares124  124  17 
Class B ordinary shares21  21  3 
Additional paid-in capital5,002,255  5,006,839  698,928 
Treasury stock(63,264) (60,923) (8,505)
Accumulated deficits(4,200,261) (4,223,463) (589,573)
Accumulated other comprehensive loss(158,048) (158,363) (22,107)
Total shareholders' equity580,827  564,235  78,763 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY885,305  824,931  115,156 



Burning Rock Biotech Limited

Unaudited Condensed Statements of Cash Flows

(in thousands)
 
 For the three months ended
 June 30,

2024

 June 30,

2025

 June 30,

2025

 RMB

 RMB

 US$

Net cash used in operating activities(40,836) (44,349) (6,191)
Net cash (used in) generated from investing activities(227) 207  29 
Net cash generated from financing activities-  2,000  279 
Effect of exchange rate on cash, cash equivalents and restricted cash1,436  (240) (33)
Net decrease in cash, cash equivalents and restricted cash (39,627) (42,382) (5,916)
Cash, cash equivalents and restricted cash at the beginning of period572,674  497,406  69,434 
Cash, cash equivalents and restricted cash at the end of period533,047  455,024  63,518 
         



 For the six months ended
 June 30,

2024

 June 30,

2025

 June 30,

2025
 RMB

 RMB

 US$
Net cash used in operating activities(81,045) (67,876) (9,475)
Net cash used in investing activities(2,613) (1,324) (185)
Net cash generated from financing activities-  2,000  279 
Effect of exchange rate on cash, cash equivalents and restricted cash1,489  62  8 
Net decrease in cash, cash equivalents and restricted cash (82,169) (67,138) (9,373)
Cash, cash equivalents and restricted cash at the beginning of period615,216  522,162  72,891 
Cash, cash equivalents and restricted cash at the end of period533,047  455,024  63,518 
   



Burning Rock Biotech Limited

Reconciliations of GAAP and Non-GAAP Results
 
  For the three months ended
 June 30,

2024

 September 30,

2024


 December 31,

2024


 March 31,

2025

 June 30,

2025
  (RMB in thousands)
Gross profit:

  
Central laboratory channel38,424  33,262  33,153  32,191  35,937 
In-hospital channel44,058  46,580  29,563  43,895  46,490 
Pharma research and development channel12,956  12,004  26,706  21,315  25,676 
Total gross profit

95,438  91,846  89,422  97,401  108,103 
Add: depreciation and amortization:      
Central laboratory channel1,226  1,277  1,010  562  456 
In-hospital channel824  798  623  290  389 
Pharma research and development channel4,417  3,846  2,534  2,412  1,528 
Total depreciation and amortization included in cost of revenues

6,467  5,921  4,167  3,264  2,373 
Non-GAAP gross profit:     
Central laboratory channel39,650  34,539  34,163  32,753  36,393 
In-hospital channel44,882  47,378  30,186  44,185  46,879 
Pharma research and development channel17,373  15,850  29,240  23,727  27,204 
Total non-GAAP gross profit101,905  97,767  93,589  100,665  110,476 
Non-GAAP gross margin:     
Central laboratory channel81.3%  86.4%  87.0%  85.5%  89.1% 
In-hospital channel75.0%  74.3%  69.5%  76.6%  75.0% 
Pharma research and development channel64.6%  63.7%  67.6%  64.0%  60.2% 
Total non-GAAP gross margin75.2%  76.0%  74.3%  75.6%  74.4% 


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