GRAIL, Inc. (NASDAQ: GRAL), a healthcare company focused on early cancer detection, saw its stock plummet 14.90% in after-hours trading on Tuesday following the release of its first-quarter 2025 financial results. The sharp decline came despite the company reporting a narrower-than-expected loss, as revenue fell short of analyst expectations.

For the quarter ended March 31, GRAIL reported revenue of $31.8 million, up from $26.7 million a year earlier but significantly below the $35.2 million forecast by analysts. The company's net loss narrowed to $3.10 per share, beating the expected loss of $3.99 per share. Despite the improved bottom line, investors seemed more focused on the top-line miss, triggering the sell-off.

On a positive note, GRAIL announced encouraging results from its NHS-Galleri trial, reporting positive top-line results from the prevalent screening round. The company also highlighted its strong cash position of $677.9 million, which it says provides a runway into 2028. However, these developments were overshadowed by the revenue shortfall. As GRAIL continues to develop its multi-cancer early detection tests, investors will likely keep a close eye on the company's ability to meet revenue expectations in the coming quarters.