Shares of Burning Rock Biotech Limited (NASDAQ: BNR) are soaring 8.84% in pre-market trading on Friday following the release of the company's impressive first-quarter 2025 financial results. The Chinese precision oncology company demonstrated significant improvements in its financial performance, narrowing losses and showing strong revenue growth.

Burning Rock reported a notable reduction in net loss to RMB 13.5 million ($1.9 million) for Q1 2025, a substantial improvement from the RMB 121.5 million loss in the same period last year. This translates to a loss per share of $0.02, beating analyst expectations and showing a remarkable 87.5% improvement year-over-year.

The company's revenue climbed to RMB 133.1 million ($18.3 million), representing a 5.9% increase compared to Q1 2024. This growth was primarily driven by a 79.9% surge in revenue from pharma research and development services. Additionally, Burning Rock's gross profit rose to RMB 97.4 million ($13.4 million), marking a 13.7% increase from the previous year. The non-GAAP gross margin improved to 75.6%, up from 74.0% in Q1 2024.

Investors are particularly encouraged by the company's significant reduction in operating expenses, which decreased by 46.8% to RMB 112.6 million ($15.5 million). This substantial cost reduction, attributed to budget control measures and improved operating efficiency, has played a crucial role in narrowing the company's losses. The positive financial results, coupled with advancements in Burning Rock's precision oncology technologies, have fueled investor optimism, driving the stock's pre-market surge.