Burning Rock Reports Second Quarter 2025 Financial Results
08-Sep-2025 01:39:43 EDT
Burning Rock Reports Second Quarter 2025 Financial Results
GlobeNewswire September 08, 2025
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 partnerhospitals
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 channel
48,773
39,984
39,278
38,296
40,861
In-hospital channel
59,872
63,769
43,464
57,687
62,496
Pharma research and development channel
26,888
24,891
43,280
37,099
45,197
Total revenues
135,533
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 channel
38,424
33,262
33,153
32,191
35,937
In-hospital channel
44,058
46,580
29,563
43,895
46,490
Pharma research and development channel
12,956
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 revenues
464
289
520
308
280
Research and development expenses
12,008
3,180
3,202
1,800
(270
)
Selling and marketing expenses
1,232
1,917
1,353
1,025
364
General and administrative expenses
54,407
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$
Revenues
135,533
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 profit
95,438
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 income
3,187
3,173
1,814
2,581
2,226
311
Other (expense) income, net
(82
)
1
4,353
(652
)
387
54
Foreign exchange gain (loss), net
262
(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 diluted
85,271,858
85,902,670
86,036,286
90,291,658
90,357,970
90,357,970
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 income (loss), net of tax of nil:
Foreign currency translation adjustments
940
(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$
Revenues
261,156
281,636
39,315
Cost of revenues
(80,024
)
(76,132
)
(10,629
)
Gross profit
181,132
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 income
7,225
4,807
671
Other income (expense), net
352
(265
)
(37
)
Foreign exchange gain (loss), net
249
(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 diluted
85,246,969
90,324,997
90,324,997
Class B ordinary shares – basic and diluted
17,324,848
17,324,848
17,324,848
Other comprehensive income (loss), net of tax of nil:
Foreign currency translation adjustments
1,530
(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 equivalents
519,849
452,721
63,197
Restricted cash
2,313
2,303
321
Accounts receivable, net
152,013
189,969
26,519
Contract assets, net
13,855
14,755
2,060
Inventories, net
62,625
57,810
8,070
Prepayments and other current assets, net
25,963
23,254
3,246
Total current assets
776,618
740,812
103,413
Non-current assets:
Property and equipment, net
47,152
38,968
5,440
Operating right-of-use assets
53,188
38,168
5,328
Intangible assets, net
421
352
49
Other non-current assets
7,926
6,631
926
Total non-current assets
108,687
84,119
11,743
TOTAL ASSETS
885,305
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 payable
33,747
32,164
4,490
Deferred revenue
117,895
102,800
14,350
Accrued liabilities and other current liabilities
89,498
75,120
10,487
Customer deposits
592
592
83
Current portion of long-term borrowings
–
200
28
Current portion of operating lease liabilities
24,567
19,255
2,688
Total current liabilities
266,299
230,131
32,126
Non-current liabilities:
Long-term borrowings
–
1,800
251
Non-current portion of operating lease liabilities
27,754
17,871
2,495
Other non-current liabilities
10,425
10,894
1,521
Total non-current liabilities
38,179
30,565
4,267
TOTAL LIABILITIES
304,478
260,696
36,393
Shareholders' equity:
Class A ordinary shares
124
124
17
Class B ordinary shares
21
21
3
Additional paid-in capital
5,002,255
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' equity
580,827
564,235
78,763
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
885,305
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 cash
1,436
(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 period
572,674
497,406
69,434
Cash, cash equivalents and restricted cash at the end of period
533,047
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 cash
1,489
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 period
615,216
522,162
72,891
Cash, cash equivalents and restricted cash at the end of period
533,047
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 channel
38,424
33,262
33,153
32,191
35,937
In-hospital channel
44,058
46,580
29,563
43,895
46,490
Pharma research and development channel
12,956
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 channel
1,226
1,277
1,010
562
456
In-hospital channel
824
798
623
290
389
Pharma research and development channel
4,417
3,846
2,534
2,412
1,528
Total depreciation and amortization included in cost of revenues
