GRAIL, Inc. (NASDAQ: GRAL) saw its stock plummet 16.58% in pre-market trading on Wednesday following the release of its first-quarter 2025 financial results. The sharp decline came as the biotechnology company's revenue fell significantly short of analyst expectations, overshadowing other positive developments.

For the quarter ended March 31, GRAIL reported revenue of $31.8 million, up from $26.7 million a year earlier but notably below the $35.2 million forecast by analysts. This top-line miss appears to be the primary driver behind the stock's steep decline. On a more positive note, the company's net loss narrowed to $3.10 per share, beating the expected loss of $3.99 per share. Additionally, revenue from Galleri, the company's early-detection cancer tests, was up 24% year over year.

Despite the revenue shortfall, 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 claims provides a runway into 2028. However, these positive developments were not enough to offset investor concerns about the revenue miss. As GRAIL continues to develop its multi-cancer early detection tests, market participants will likely keep a close eye on the company's ability to meet revenue expectations in future quarters.