Burning Rock Reports Second Quarter 2025 Financial Results

Rhea-AI Summary

Burning Rock Biotech (NASDAQ: BNR), a precision oncology NGS technology company, reported its Q2 2025 financial results with total revenues of RMB148.5 million (US$20.7 million), representing a 9.6% year-over-year increase.

The company's performance showed mixed results across segments: in-hospital business grew 4.4% to RMB62.5 million, central laboratory business declined 16.2% to RMB40.9 million, while pharma R&D services surged 68.1% to RMB45.2 million. Gross margin improved to 72.8% from 70.4% year-over-year.

Operating expenses decreased significantly by 42.1% to RMB119.6 million due to budget control measures and headcount reduction. The company narrowed its net loss to RMB9.7 million from RMB108.0 million in the previous year.

Positive

• Net loss significantly reduced by 91% to RMB9.7 million from RMB108.0 million year-over-year
• Operating expenses decreased 42.1% through improved efficiency and cost controls
• Pharma R&D services revenue grew 68.1% year-over-year
• Overall gross margin improved to 72.8% from 70.4% year-over-year
• Central laboratory business achieved 87.9% gross margin, up from 78.8%

Negative

• Central laboratory business revenue declined 16.2% year-over-year
• In-hospital business showed modest 4.4% growth, indicating slower expansion
• Cash position at RMB455.0 million (US$63.5 million) with continued net losses

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, 2024		September 30, 2024		December 31, 2024		March 31, 2025		June 30, 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
Revenues	June 30, 2024		September 30, 2024		December 31, 2024		March 31, 2025		June 30, 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
Gross profit	June 30, 2024		September 30, 2024		December 31, 2024		March 31, 2025		June 30, 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 expenses	June 30, 2024		September 30, 2024		December 31, 2024		March 31, 2025		June 30, 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, 2024			September 30, 2024			December 31, 2024			March 31, 2025			June 30, 2025			June 30, 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, 2024			June 30, 2025			June 30, 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, 2024		June 30, 2025		June 30, 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, 2024			June 30, 2025			June 30, 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, 2024			June 30, 2025			June 30, 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, 2024			June 30, 2025			June 30, 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 30, 2024			September 30, 2024			December 31, 2024			March 31, 2025			June 30, 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%

FAQ

What were Burning Rock's (BNR) Q2 2025 revenue and growth?

Burning Rock reported total revenues of RMB148.5 million (US$20.7 million), representing a 9.6% increase from the same period in 2024.

How did BNR's different business segments perform in Q2 2025?

In-hospital business grew 4.4% to RMB62.5M, central laboratory revenue declined 16.2% to RMB40.9M, and pharma R&D services increased 68.1% to RMB45.2M.

What was Burning Rock's net loss in Q2 2025?

BNR reported a net loss of RMB9.7 million (US$1.4 million), significantly improved from RMB108.0 million loss in Q2 2024.

How much did BNR reduce its operating expenses in Q2 2025?

Operating expenses decreased by 42.1% to RMB119.6 million through budget control measures and headcount reduction.

What was Burning Rock's gross margin in Q2 2025?

Overall gross margin was 72.8%, improved from 70.4% in Q2 2024, with central laboratory business achieving 87.9% gross margin.