Shares of GRAIL, Inc. (NASDAQ: GRAL), a healthcare company focused on early cancer detection, plunged 14.90% in after-hours trading on Tuesday following the release of its first-quarter 2025 financial results. The sharp decline came as the company reported revenue that fell short of analysts' expectations, overshadowing a narrower-than-expected loss.

GRAIL reported Q1 revenue of $31.8 million, missing the average analyst estimate of $35.2 million compiled by LSEG. This revenue miss appears to be the primary driver of the stock's dramatic after-hours decline. However, the company did report a quarterly loss of $3.10 per share, which was better than the analysts' average estimate of a $3.99 loss per share.

Despite the revenue shortfall, GRAIL highlighted some positive developments in its earnings release. The company announced positive top-line results from the prevalent screening round of its NHS-Galleri trial, a significant milestone for its cancer detection technology. Additionally, GRAIL reported a strong cash position of $677.9 million, which it claims provides runway into 2028. This financial cushion may offer some reassurance to investors concerned about the company's path to profitability. As the market digests these mixed signals, investors will be closely watching how GRAIL addresses the revenue miss and capitalizes on its clinical progress in the coming quarters.