Shares of Burning Rock Biotech Limited (NASDAQ: BNR) plummeted 8.22% in intraday trading on Thursday following the release of the company's third quarter 2025 financial results. The precision oncology company's stock decline comes amid a mix of modest revenue growth, ongoing business transition, and continued net losses.

Burning Rock reported total revenues of RMB 131.6 million (US$18.5 million) for Q3 2025, representing a slight 2.3% increase from the same period last year. However, the company's in-hospital business saw a 17.1% decrease in revenue, while the central laboratory business declined by 7.9% as the company continues its transition towards in-hospital testing. On a positive note, revenue from pharma research and development services surged 68.6% year-over-year, driven by increased demand for development and testing services.

Despite the revenue increase, Burning Rock reported a net loss of RMB 16.8 million (US$2.4 million) for the quarter. While this represents an improvement from the RMB 35.7 million loss in the same period last year, ongoing challenges in the company's business transition and margin pressures in some segments appear to have spooked investors. The company's gross margin for the central laboratory and in-hospital businesses declined compared to the previous year, although this was partially offset by improved margins in the pharma research and development segment. Operating expenses decreased by 11.9% year-over-year, reflecting the company's efforts to improve efficiency through cost-cutting measures and headcount reduction.