Full Press Release Details
Burning Rock Reports Third Quarter 2025 Financial Results
GUANGZHOU, China, November 20, 2025-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 September 30, 2025.
Recent Business Updates
Quarter 2025 Financial Results
Total revenues were RMB131.6 million (US$18.5 million) for the three months ended September 30, 2025,
representing a 2.3% increase from RMB128.6 million for the same period in 2024 .
Cost of revenues was RMB32.8 million (US$4.6 million) for the three months ended September 30, 2025, representing an 10.9%
decrease from RMB36.8 million for the same period in 2024.
Gross profit was RMB98.8 million (US$13.9 million) for the three months ended
September 30, 2025, representing a 7.6% increase from RMB91.8 million for the same period in 2024. Gross margin was 75.1% for the three months ended September 30, 2025, compared to 71.4% for the same period in 2024. By channel, gross
margin of central laboratory business and in-hospital business were 81.8% and 71.8% for the three months ended September 30, 2025, compared to 83.2% and 73.0% during the same period in 2024, primarily due
to the cost reduction caused by the rent subsidy for the headquarter building in the third quarter of 2024; gross margin of pharma research and development services was 73.4% for the three months ended September 30, 2025, compared to 48.2%
during the same period of 2024, primarily due to the significant increase in revenue from high-margin companion diagnostic (CDx) projects.
Non-GAAP gross profit, which excludes depreciation and amortization
expenses, was RMB100.9 million (US$14.2million) for the three months ended September 30, 2025, representing a 3.2% increase from RMB97.8 million for the same period in 2024. Non-GAAP gross
margin was 76.7% for the three months ended September 30, 2025, compared to 76.0% for the same period in 2024.
Operating expenses were
RMB115.0 million (US$16.2 million) for the three months ended September 30, 2025, representing a 11.9% decrease from RMB130.4 million for the same period in 2024. The decrease was primarily driven by decreases in amortized expense on
share-based compensation, budget control measures and headcount reduction to improve the Company's operating efficiency.
Net loss was RMB16.8 million (US$2.4 million) for the three months ended September 30, 2025, compared to RMB35.7 million for the same period in
Cash, cash equivalents and restricted cash were RMB467.0 million (US$65.6 million) as of September 30, 2025.
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.
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.
Selected Operating Data
| As of | ||||||||||||||||||||
| September 30, 2024 | December 31, 2024 | March 31, 2025 | June 30, 2025 | September 30, 2025 | ||||||||||||||||
| In-hospital Channel: | ||||||||||||||||||||
| Pipeline partner hospitals (1) | 30 | 29 | 30 | 30 | 31 | |||||||||||||||
| Contracted partner hospitals (2) | 61 | 63 | 63 | 63 | 63 | |||||||||||||||
| Total number of partner hospitals | 69 | 92 | 93 | 93 | 94 |
Selected Financial Data
| For the three months ended | For the nine months ended | |||||||||||||||
| Revenues | September 30, 2024 | September 30, 2025 | September 30, 2024 | September 30, 2025 | ||||||||||||
| (RMB in thousands) | (RMB in thousands) | |||||||||||||||
| Central laboratory channel | 39,984 | 36,811 | 136,371 | 115,968 | ||||||||||||
| In-hospital channel | 63,769 | 52,847 | 181,028 | 173,030 | ||||||||||||
| Pharma research and development channel | 24,891 | 41,959 | 72,401 | 124,255 | ||||||||||||
| Total revenues | 128,644 | 131,617 | 389,800 | 413,253 |
| For the three months ended | For the nine months ended | |||||||||||||||
| Revenues by location of customer | September 30, 2024 | September 30, 2025 | September 30, 2024 | September 30, 2025 | ||||||||||||
| (RMB in thousands) | (RMB in thousands) | |||||||||||||||
| Overseas | 25,840 | 17,214 | 59,553 | 79,079 | ||||||||||||
| Mainland China | 102,804 | 114,403 | 330,247 | 334,174 | ||||||||||||
| Total Revenues | 128,644 | 131,617 | 389,800 | 413,253 |
| For the three months ended | For the nine months ended | |||||||||||||||
| Gross profit | September 30, 2024 | September 30, 2025 | September 30, 2024 | September 30, 2025 | ||||||||||||
| (RMB in thousands) | (RMB in thousands) | |||||||||||||||
| Central laboratory channel | 33,262 | 30,126 | 108,688 | 98,254 | ||||||||||||
| In-hospital channel | 46,580 | 37,925 | 129,830 | 128,310 | ||||||||||||
| Pharma research and development channel | 12,004 | 30,793 | 34,460 | 77,784 | ||||||||||||
| Total gross profit | 91,846 | 98,844 | 272,978 | 304,348 |
| For the three months ended | For the nine months ended | |||||||||||||||
| Share-based compensation expenses | September 30, 2024 | September 30, 2025 | September 30, 2024 | September 30, 2025 | ||||||||||||
| (RMB in thousands) | (RMB in thousands) | |||||||||||||||
| Cost of revenues | 289 | 301 | 1,349 | 889 | ||||||||||||
| Research and development expenses | 3,180 | 73 | 27,475 | 1,603 | ||||||||||||
| Selling and marketing expenses | 1,917 | 624 | 3,657 | 2,013 | ||||||||||||
| General and administrative expenses | 4,732 | 2,831 | 115,129 | 6,249 | ||||||||||||
| Total share-based compensation expenses | 10,118 | 3,829 | 147,610 | 10,754 |
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 | ||||||||||||||||||||||||
| September 30, 2024 | December 31,2024 | March 31, 2025 | June 30, 2025 | September 30, 2025 | September 30, 2025 | |||||||||||||||||||
| RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||
| Revenues | 128,644 | 126,022 | 133,082 | 148,554 | 131,617 | 18,488 | ||||||||||||||||||
| Cost of revenues | (36,798 | ) | (36,600 | ) | (35,681 | ) | (40,451 | ) | (32,773 | ) | (4,604 | ) | ||||||||||||
| Gross profit | 91,846 | 89,422 | 97,401 | 108,103 | 98,844 | 13,884 | ||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Research and development expenses | (49,150 | ) | (52,203 | ) | (40,389 | ) | (49,770 | ) | (41,469 | ) | (5,825 | ) | ||||||||||||
| Selling and marketing expenses | (48,411 | ) | (46,730 | ) | (40,888 | ) | (38,413 | ) | (41,808 | ) | (5,873 | ) | ||||||||||||
| General and administrative expenses | (32,874 | ) | (37,289 | ) | (31,303 | ) | (31,417 | ) | (31,698 | ) | (4,453 | ) | ||||||||||||
| Impairment loss on long-lived assets | - | (35,127 | ) | - | - | - | - | |||||||||||||||||
| Total operating expenses | (130,435 | ) | (171,349 | ) | (112,580 | ) | (119,600 | ) | (114,975 | ) | (16,151 | ) | ||||||||||||
| Loss from operations | (38,589 | ) | (81,927 | ) | (15,179 | ) | (11,497 | ) | (16,131 | ) | (2,267 | ) | ||||||||||||
| Interest income | 3,173 | 1,814 | 2,581 | 2,226 | 1,744 | 245 | ||||||||||||||||||
| Interest expense | - | - | - | - | (15 | ) | (2 | ) | ||||||||||||||||
| Other income (expense), net | 1 | 4,353 | (652 | ) | 387 | 7 | 1 | |||||||||||||||||
| Foreign exchange loss, net | (129 | ) | (220 | ) | (26 | ) | (574 | ) | (2,151 | ) | (302 | ) | ||||||||||||
| Loss before income tax | (35,544 | ) | (75,980 | ) | (13,276 | ) | (9,458 | ) | (16,546 | ) | (2,325 | ) | ||||||||||||
| Income tax expenses | (201 | ) | (5,314 | ) | (224 | ) | (244 | ) | (212 | ) | (30 | ) | ||||||||||||
| Net loss | (35,745 | ) | (81,294 | ) | (13,500 | ) | (9,702 | ) | (16,758 | ) | (2,355 | ) | ||||||||||||
| Net loss attributable to Burning Rock Biotech Limited's shareholders | (35,745 | ) | (81,294 | ) | (13,500 | ) | (9,702 | ) | (16,758 | ) | (2,355 | ) | ||||||||||||
| Net loss attributable to ordinary shareholders | (35,745 | ) | (81,294 | ) | (13,500 | ) | (9,702 | ) | (16,758 | ) | (2,355 | ) | ||||||||||||
| Loss per share for class A and class B ordinary shares: | ||||||||||||||||||||||||
| Class A ordinary shares - basic and diluted | (0.35 | ) | (0.79 | ) | (0.13 | ) | (0.09 | ) | (0.16 | ) | (0.02 | ) | ||||||||||||
| Class B ordinary shares - basic and diluted | (0.35 | ) | (0.79 | ) | (0.13 | ) | (0.09 | ) | (0.16 | ) | (0.02 | ) | ||||||||||||
| Weighted average shares outstanding used in loss per share computation: | ||||||||||||||||||||||||
| Class A ordinary shares - basic and diluted | 85,902,670 | 86,036,286 | 90,291,658 | 90,357,970 | 90,416,619 | 90,416,619 | ||||||||||||||||||
| Class B ordinary shares - basic and diluted | 17,324,848 | 17,324,848 | 17,324,848 | 17,324,848 | 17,324,848 | 17,324,848 | ||||||||||||||||||
| Other comprehensive (loss) income, net of tax of nil: | ||||||||||||||||||||||||
| Foreign currency translation adjustments | (4,054 | ) | 6,009 | (72 | ) | (243 | ) | (1,724 | ) | (242 | ) | |||||||||||||
| Total comprehensive loss | (39,799 | ) | (75,285 | ) | (13,572 | ) | (9,945 | ) | (18,482 | ) | (2,597 | ) | ||||||||||||
| Total comprehensive loss attributable to Burning Rock Biotech Limited's shareholders | (39,799 | ) | (75,285 | ) | (13,572 | ) | (9,945 | ) | (18,482 | ) | (2,597 | ) |
Burning Rock Biotech Limited
Unaudited Condensed Statements of Comprehensive Loss
(in thousands, except for number of shares and per share data)
| For the nine months ended | ||||||||||||
| September 30, 2024 | September 30, 2025 | September 30, 2025 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Revenues | 389,800 | 413,253 | 58,049 | |||||||||
| Cost of revenues | (116,822 | ) | (108,905 | ) | (15,299 | ) | ||||||
| Gross profit | 272,978 | 304,348 | 42,750 | |||||||||
| Operating expenses: | ||||||||||||
| Research and development expenses | (180,087 | ) | (131,628 | ) | (18,490 | ) | ||||||
| Selling and marketing expenses | (144,174 | ) | (121,109 | ) | (17,012 | ) | ||||||
| General and administrative expenses | (224,349 | ) | (94,418 | ) | (13,263 | ) | ||||||
| Total operating expenses | (548,610 | ) | (347,155 | ) | (48,765 | ) | ||||||
| Loss from operations | (275,632 | ) | (42,807 | ) | (6,015 | ) | ||||||
| Interest income | 10,398 | 6,551 | 920 | |||||||||
| Interest expense | - | (15 | ) | (2 | ) | |||||||
| Other income, net | 353 | (258 | ) | (36 | ) | |||||||
| Foreign exchange gain (loss), net | 120 | (2,751 | ) | (386 | ) | |||||||
| Loss before income tax | (264,761 | ) | (39,280 | ) | (5,519 | ) | ||||||
| Income tax expenses | (571 | ) | (680 | ) | (96 | ) | ||||||
| Net loss | (265,332 | ) | (39,960 | ) | (5,615 | ) | ||||||
| Net loss attributable to Burning Rock Biotech Limited's shareholders | (265,332 | ) | (39,960 | ) | (5,615 | ) | ||||||
| Net loss attributable to ordinary shareholders | (265,332 | ) | (39,960 | ) | (5,615 | ) | ||||||
| Loss per share for class A and class B ordinary shares: | ||||||||||||
| Class A ordinary shares-basic and diluted | (2.58 | ) | (0.37 | ) | (0.05 | ) | ||||||
| Class B ordinary shares-basic and diluted | (2.58 | ) | (0.37 | ) | (0.05 | ) | ||||||
| Weighted average shares outstanding used in loss per share computation: | ||||||||||||
| Class A ordinary shares-basic and diluted | 85,467,131 | 90,332,672 | 90,332,672 | |||||||||
| Class B ordinary shares-basic and diluted | 17,324,848 | 17,324,848 | 17,324,848 | |||||||||
| Other comprehensive loss, net of tax of nil: | ||||||||||||
| Foreign currency translation adjustments | (2,524 | ) | (2,039 | ) | (286 | ) | ||||||
| Total comprehensive loss | (267,856 | ) | (41,999 | ) | (5,901 | ) | ||||||
| Total comprehensive loss attributable to Burning Rock Biotech Limited's shareholders | (267,856 | ) | (41,999 | ) | (5,901 | ) |
Burning Rock Biotech Limited
Unaudited Condensed Consolidated Balance Sheets
| As of | ||||||||||||
| December 31, 2024 | September 30, 2025 | September 30, 2025 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | 519,849 | 463,994 | 65,177 | |||||||||
| Restricted cash | 2,313 | 2,985 | 419 | |||||||||
| Accounts receivable, net | 152,013 | 183,841 | 25,824 | |||||||||
| Contract assets, net | 13,855 | 13,049 | 1,833 | |||||||||
| Inventories, net | 62,625 | 54,469 | 7,651 | |||||||||
| Prepayments and other current assets, net | 25,963 | 20,985 | 2,950 | |||||||||
| Total current assets | 776,618 | 739,323 | 103,854 | |||||||||
| Non-current assets: | ||||||||||||
| Property and equipment, net | 47,152 | 33,755 | 4,742 | |||||||||
| Operating right-of-use assets | 53,188 | 32,281 | 4,534 | |||||||||
| Intangible assets, net | 421 | 316 | 44 | |||||||||
| Other non-current assets | 7,926 | 6,493 | 912 | |||||||||
| Total non-current assets | 108,687 | 72,845 | 10,232 | |||||||||
| TOTAL ASSETS | 885,305 | 812,168 | 114,086 |
Burning Rock Biotech Limited
Unaudited Condensed Consolidated Balance Sheets (Continued)
| As of | ||||||||||||
| December 31, 2024 | September 30, 2025 | September 30, 2025 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | 33,747 | 34,277 | 4,815 | |||||||||
| Deferred revenue | 117,895 | 106,448 | 14,953 | |||||||||
| Accrued liabilities and other current liabilities | 89,498 | 76,992 | 10,816 | |||||||||
| Customer deposits | 592 | 592 | 83 | |||||||||
| Short-term borrowings | - | 200 | 28 | |||||||||
| Current portion of operating lease liabilities | 24,567 | 16,603 | 2,332 | |||||||||
| Total current liabilities | 266,299 | 235,112 | 33,027 | |||||||||
| Non-current liabilities: | ||||||||||||
| Long-term borrowings | - | 1,800 | 253 | |||||||||
| Non-current portion of operating lease liabilities | 27,754 | 14,577 | 2,048 | |||||||||
| Other non-current liabilities | 10,425 | 11,102 | 1,559 | |||||||||
| Total non-current liabilities | 38,179 | 27,479 | 3,860 | |||||||||
| TOTAL LIABILITIES | 304,478 | 262,591 | 36,887 | |||||||||
| Shareholders' equity: | ||||||||||||
| Class A ordinary shares | 124 | 120 | 17 | |||||||||
| Class B ordinary shares | 21 | 21 | 3 | |||||||||
| Additional paid-in capital | 5,002,255 | 5,006,937 | 703,320 | |||||||||
| Treasury stock | (63,264 | ) | (57,193 | ) | (8,034 | ) | ||||||
| Accumulated deficits | (4,200,261 | ) | (4,240,221 | ) | (595,620 | ) | ||||||
| Accumulated other comprehensive loss | (158,048 | ) | (160,087 | ) | (22,487 | ) | ||||||
| Total shareholders' equity | 580,827 | 549,577 | 77,199 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 885,305 | 812,168 | 114,086 |
Burning Rock Biotech Limited
Unaudited Condensed Statements of Cash Flows
| For the three months ended | ||||||||||||
| September 30, 2024 | September 30, 2025 | September 30, 2025 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Net cash used in operating activities | (30,278 | ) | 16,394 | 2,303 | ||||||||
| Net cash used in investing activities | (987 | ) | (2,747 | ) | (386 | ) | ||||||
| Net cash generated from financing activities | 2 | - | - | |||||||||
| Effect of exchange rate on cash, cash equivalents and restricted cash | (3,537 | ) | (1,692 | ) | (237 | ) | ||||||
| Net decrease in cash, cash equivalents and restricted cash | (34,800 | ) | 11,955 | 1,680 | ||||||||
| Cash, cash equivalents and restricted cash at the beginning of period | 533,047 | 455,024 | 63,916 | |||||||||
| Cash, cash equivalents and restricted cash at the end of period | 498,247 | 466,979 | 65,596 |
| For the nine months ended | ||||||||||||
| September 30, 2024 | September 30, 2025 | September 30, 2025 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Net cash used in operating activities | (111,323 | ) | (51,482 | ) | (7,232 | ) | ||||||
| Net cash used in investing activities | (3,600 | ) | (4,071 | ) | (572 | ) | ||||||
| Net cash generated from financing activities | 2 | 2,000 | 281 | |||||||||
| Effect of exchange rate on cash, cash equivalents and restricted cash | (2,048 | ) | (1,630 | ) | (229 | ) | ||||||
| Net decrease in cash, cash equivalents and restricted cash | (116,969 | ) | (55,183 | ) | (7,752 | ) | ||||||
| Cash, cash equivalents and restricted cash at the beginning of period | 615,216 | 522,162 | 73,348 | |||||||||
| Cash, cash equivalents and restricted cash at the end of period | 498,247 | 466,979 | 65,596 |
Burning Rock Biotech Limited
Reconciliations of GAAP and Non-GAAP Results
| For the three months ended | ||||||||||||||||||||
| September 30, 2024 | December 31, 2024 | March 31, 2025 | June 30, 2025 | September 30, 2025 | ||||||||||||||||
| (RMB in thousands) | ||||||||||||||||||||
| Gross profit: | ||||||||||||||||||||
| Central laboratory channel | 33,262 | 33,153 | 32,191 | 35,937 | 30,126 | |||||||||||||||
| In-hospital channel | 46,580 | 29,563 | 43,895 | 46,490 | 37,925 | |||||||||||||||
| Pharma research and development channel | 12,004 | 26,706 | 21,315 | 25,676 | 30,793 | |||||||||||||||
| Total gross profit | 91,846 | 89,422 | 97,401 | 108,103 | 98,844 | |||||||||||||||
| Add: depreciation and amortization: | ||||||||||||||||||||
| Central laboratory channel | 1,277 | 1,010 | 562 | 456 | 231 | |||||||||||||||
| In-hospital channel | 798 | 623 | 290 | 389 | 372 | |||||||||||||||
| Pharma research and development channel | 3,846 | 2,534 | 2,412 | 1,528 | 1,491 | |||||||||||||||
| Total depreciation and amortization included in cost of revenues | 5,921 | 4,167 | 3,264 | 2,373 | 2,094 | |||||||||||||||
| Non-GAAP gross profit: | ||||||||||||||||||||
| Central laboratory channel | 34,539 | 34,163 | 32,753 | 36,393 | 30,357 | |||||||||||||||
| In-hospital channel | 47,378 | 30,186 | 44,185 | 46,879 | 38,297 | |||||||||||||||
| Pharma research and development channel | 15,850 | 29,240 | 23,727 | 27,204 | 32,284 | |||||||||||||||
| Total non-GAAP gross profit | 97,767 | 93,589 | 100,665 | 110,476 | 100,938 | |||||||||||||||
| Non-GAAP gross margin: | ||||||||||||||||||||
| Central laboratory channel | 86.4 | % | 87.0 | % | 85.5 | % | 89.1 | % | 82.5 | % | ||||||||||
| In-hospital channel | 74.3 | % | 69.5 | % | 76.6 | % | 75.0 | % | 72.5 | % | ||||||||||
| Pharma research and development channel | 63.7 | % | 67.6 | % | 64.0 | % | 60.2 | % | 76.9 | % | ||||||||||
| Total non-GAAP gross margin | 76.0 | % | 74.3 | % | 75.6 | % | 74.4 | % | 76.7 | % |