Shares of Burning Rock Biotech Limited (BNR) are surging 6.05% in pre-market trading on Thursday following the release of the company's third-quarter 2025 financial results. The precision oncology company reported improved revenue and significantly narrowed losses, showcasing strong performance in its pharma research and development segment.

Burning Rock's Q3 revenue increased 2.3% year-over-year to RMB 131.6 million (US$18.5 million), driven by a substantial 68.6% growth in its pharma research and development services. The company's net loss narrowed considerably to RMB 16.8 million (US$2.4 million), compared to RMB 35.7 million in the same period last year, representing a 53% reduction. Notably, Burning Rock achieved a positive operating cash flow of RMB 16.4 million, signaling improved operational efficiency.

Investors are particularly encouraged by the company's enhanced profitability, with gross margin expanding to 75.1% from 71.4% in the previous year. This improvement was attributed to increased revenue from high-margin companion diagnostic (CDx) projects and effective cost management. The strong quarterly performance, especially in the fast-growing pharma services segment, has bolstered investor confidence in Burning Rock's growth trajectory and financial health, leading to the significant pre-market stock price surge.