Burning Rock Reports Second Quarter 2025 Financial Results

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: [email protected] 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 December 31, 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 profit 95,438 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 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 63,197Restricted 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 ASSETS885,305 824,931 115,156Burning 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%