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 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) |
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| 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 | ||||||||||||