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, September December March 31, June 30,
2024 30, 2024 31, 2024 2025 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
-------------------------------------------------------
June 30, September 30, December March 31, June 30,
Revenues 2024 2024 31, 2024 2025 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
-------------------------------------------------------
June 30, September 30, December March 31, June 30,
Gross profit 2024 2024 31, 2024 2025 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 June 30, September December March 31, June 30,
expenses 2024 30, 2024 31, 2024 2025 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, September December March 31, June 30, June 30,
2024 30, 2024 31, 2024 2025 2025 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, June 30, June 30,
2024 2025 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, June 30, June 30,
2024 2025 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, June 30, June 30,
2024 2025 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, June 30, June 30,
2024 2025 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, June 30, June 30,
2024 2025 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 December March
30, September 31, 31, June 30,
2024 30, 2024 2024 2025 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 6,467 5,921 4,167 3,264 2,373
Non-GAAP gross
profit
Central
laboratory
channel 39,650 34,539 34,163 32,753 36,393
In-hospital
channel 44,882 47,378 30,186 44,185 46,879
Pharma
research and
development
channel 17,373 15,850 29,240 23,727 27,204
Total non-GAAP
gross profit 101,905 97,767 93,589 100,665 110,476
Non-GAAP gross
margin
Central
laboratory
channel 81.3% 86.4% 87.0% 85.5% 89.1%
In-hospital
channel 75.0% 74.3% 69.5% 76.6% 75.0%
Pharma
research and
development
channel 64.6% 63.7% 67.6% 64.0% 60.2%
Total non-GAAP
gross margin 75.2% 76.0% 74.3% 75.6% 74.4%
(END) Dow Jones Newswires
September 08, 2025 01:39 ET (05:39 GMT)