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Burning Rock Reports Second Quarter 2025 Financial Results

1. Q2 2025 revenues increased by 9.6% year-over-year to RMB148.5 million. 2. In-hospital business revenue rose 4.4%, while central lab revenue fell 16.2%. 3. Pharma R&D services revenue surged 68.1% due to increased testing volume. 4. Operating expenses decreased by 42.1%, improving operational efficiency significantly. 5. Net loss narrowed to RMB9.7 million from RMB108 million in Q2 2024.

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Why Bullish?

The robust revenue growth in healthcare services aligns with industry demand. Historical trends show similar growth often results in positive price performance.

How important is it?

The financial improvements indicate potential investor confidence, which is crucial for market performance around earnings announcements.

Why Short Term?

Investors often react quickly to significant revenue fluctuations, especially in biotech sectors, suggesting immediate potential for upward price movement.

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RCGYNTRACDXS
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 30,2025In-hospital Channel:         Pipeline partner hospitals(1)29 30 29 30 30Contracted partner hospitals(2)59 61 63 63 63Total 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 endedRevenuesJune 30,2024 September 30,2024 December31, 2024 March 31,2025 June 30,2025 (RMB in thousands)Central laboratory channel48,773 39,984 39,278 38,296 40,861In-hospital channel59,872 63,769 43,464 57,687 62,496Pharma research and development channel26,888 24,891 43,280 37,099 45,197Total revenues135,533 128,644 126,022 133,082 148,554  For the three months endedGross 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 35,937In-hospital channel44,058 46,580 29,563 43,895 46,490Pharma research and development channel12,956 12,004 26,706 21,315 25,676Total gross profit95,438 91,846 89,422 97,401 108,103  For the three months endedShare-based compensation expensesJune 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 expenses68,111 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$Revenues261,156  281,636  39,315 Cost of revenues(80,024) (76,132) (10,629)Gross profit181,132  205,504  28,686 Operating expenses:   Research and development expenses(130,937) (90,159) (12,586)Selling and marketing expenses(95,763) (79,301) (11,070)General and administrative expenses(191,475) (62,720) (8,755)Total operating expenses(418,175) (232,180) (32,411)Loss from operations (237,043) (26,676) (3,725)Interest income7,225  4,807  671 Other income (expense), net352  (265) (37)Foreign exchange gain (loss), net249  (600) (84)Loss before income tax(229,217) (22,734) (3,175)Income tax expenses(370) (468) (65)Net loss(229,587) (23,202) (3,240)Net loss attributable to Burning Rock Biotech Limited’s shareholders(229,587) (23,202) (3,240)Net loss attributable to ordinary shareholders(229,587) (23,202) (3,240)Loss per share for class A and class B ordinary shares:   Class A ordinary shares - basic and diluted(2.24) (0.22) (0.03)Class B ordinary shares - basic and diluted(2.24) (0.22) (0.03)Weighted average shares outstanding used in loss per share computation:    Class A ordinary shares - basic and diluted85,246,969  90,324,997  90,324,997 Class B ordinary shares - basic and diluted17,324,848  17,324,848  17,324,848 Other comprehensive income (loss), net of tax of nil:   Foreign currency translation adjustments1,530  (315) (44)Total comprehensive loss(228,057) (23,517) (3,284)Total comprehensive loss attributable to Burning Rock Biotech Limited’s shareholders(228,057) (23,517) (3,284) Burning Rock Biotech LimitedUnaudited Condensed Consolidated Balance Sheets(In thousands)  As of December 31,2024 June 30, 2025 June 30, 2025 RMB  RMB US$ASSETS     Current assets:     Cash and cash equivalents519,849 452,721 63,197Restricted cash2,313 2,303 321Accounts receivable, net152,013 189,969 26,519Contract assets, net13,855 14,755 2,060Inventories, net62,625 57,810 8,070Prepayments and other current assets, net25,963 23,254 3,246Total current assets776,618 740,812 103,413Non-current assets:     Property and equipment, net47,152 38,968 5,440Operating right-of-use assets53,188 38,168 5,328Intangible assets, net421 352 49Other non-current assets7,926 6,631 926Total non-current assets108,687 84,119 11,743TOTAL ASSETS885,305 824,931 115,156 Burning Rock Biotech LimitedUnaudited Condensed Consolidated Balance Sheets (Continued)(in thousands)  As of December 31,2024 June 30, 2025 June 30, 2025 RMB  RMB US$LIABILITIES AND SHAREHOLDERS’ EQUITY     Current liabilities:     Accounts payable33,747  32,164  4,490 Deferred revenue117,895  102,800  14,350 Accrued liabilities and other current liabilities89,498  75,120  10,487 Customer deposits592  592  83 Current portion of long-term borrowings-  200  28 Current portion of operating lease liabilities24,567  19,255  2,688 Total current liabilities266,299  230,131  32,126 Non-current liabilities:     Long-term borrowings-  1,800  251 Non-current portion of operating lease liabilities27,754  17,871  2,495 Other non-current liabilities10,425  10,894  1,521 Total non-current liabilities38,179  30,565  4,267 TOTAL LIABILITIES304,478  260,696  36,393 Shareholders’ equity:     Class A ordinary shares124  124  17 Class B ordinary shares21  21  3 Additional paid-in capital5,002,255  5,006,839  698,928 Treasury stock(63,264) (60,923) (8,505)Accumulated deficits(4,200,261) (4,223,463) (589,573)Accumulated other comprehensive loss(158,048) (158,363) (22,107)Total shareholders’ equity580,827  564,235  78,763 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY885,305  824,931  115,156  Burning Rock Biotech LimitedUnaudited Condensed Statements of Cash Flows(in thousands)  For the three months ended June 30,2024 June 30, 2025 June 30, 2025 RMB RMB US$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 LimitedReconciliations 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 profit95,438  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 revenues6,467  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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