Burning Rock Reports Third Quarter 2025 Financial Results

Rhea-AI Summary

Burning Rock (NASDAQ: BNR) reported results for Q3 2025 ended September 30, 2025. Total revenue was RMB131.6 million (US$18.5 million), up 2.3% year‑over‑year. Pharma R&D revenue rose 68.6% to RMB42.0 million (US$5.9 million). Gross profit was RMB98.8 million (US$13.9 million) with gross margin improving to 75.1% from 71.4% (≈370 bps). Operating expenses declined 11.9% to RMB115.0 million (US$16.2 million). Net loss narrowed to RMB16.8 million (US$2.4 million) from RMB35.7 million a year earlier. Cash and equivalents were RMB467.0 million (US$65.6 million) as of September 30, 2025.

Business highlights: MHLW approved OncoGuide OncoScreen Plus CDx for AstraZeneca capivasertib in Japan; PROMISE and clinical study results presented in September 2025 showing improved multimodal detection sensitivity.

Positive

• Pharma R&D revenue +68.6% to RMB42.0 million
• Gross margin improved ~370 bps to 75.1%
• Operating expenses down 11.9% to RMB115.0 million
• Net loss narrowed from RMB35.7M to RMB16.8M

Negative

• In-hospital revenue declined 17.1% to RMB52.8 million
• R&D expense decreased 15.6% to RMB41.5 million

Insights

Healthcare Commercial & Financial Analyst

Results show modest revenue growth, narrower loss, and a shift toward higher‑margin pharma services, but core patient testing volumes fell.

Revenue rose to RMB131.6 million for Q3, with growth driven by a 68.6% increase in pharma R&D services to RMB42.0 million, while in‑hospital and central lab revenues declined to RMB52.8 million and RMB36.8 million respectively. Gross margin improved to 75.1%, and non‑GAAP gross margin ticked up to 76.7%, reflecting higher contribution from companion diagnostic (CDx) projects and cost reductions.

Results depend on sustaining pharma services demand and reversing patient testing declines; margins benefit from CDx projects but central lab and in‑hospital volume drops pose execution risk. Cash of RMB467.0 million provides runway near term, but the company remains loss‑making with a net loss of RMB16.8 million for the quarter.

Watch the commercial rollout and revenue contribution from the Japan MHLW approval for the OncoGuide™ OncoScreen™ Plus CDx, the follow‑through on PROMISE and ESCC study validations, and quarterly patient test volumes over the next 2–4 quarters. These items will determine whether the revenue mix shift toward higher‑margin pharma services is durable.

GUANGZHOU, China, Nov. 20, 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 September 30, 2025.

Recent Business Updates

• Therapy Selection
  • Presented study results at the Cell Reports Medicine on esophageal squamous cell carcinoma in September 2025. “Integrating ctDNA with clinical response evaluation improves residual disease detection post-neoadjuvant chemoradiotherapy to support organsparing strategies and that postoperative ctDNA stratifies recurrence risk beyond pathological response to inform adjuvant immunotherapy decisions”.
• Early Detection
  • PROMISE study test results presented at The Innovation in September 2025. “The PROMISE study was conducted to investigate the feasibility of a multi-omics integration strategy in multi-cancer detection blood tests across nine types of cancers in head and neck (excluding nasopharynx), esophagus, lung, stomach, liver, biliary tract, pancreas, colorectum, and ovary……Compared to the methylation-based classifier, the multimodal classifier combining methylation and protein features, exhibited an improved sensitivity of 75.1% (95% 75 confidence interval [CI], 69.3%–80.3%) at the same specificity of 98.8% with the accuracy of top predicted origin (TPO1) of 73.1% (95% CI, 66.2%–79.2%)”.
• Pharma Services
  • The OncoGuide™ OncoScreen™ Plus CDx System based on OncoScreen™ Plus to be used as a companion diagnostic for AstraZeneca’s capivasertib has received Manufacturing and Marketing Approval from Japan’s Ministry of Health, Labour and Welfare (MHLW) in September, 2025.
    

Third Quarter 2025 Financial Results

Total revenues were RMB131.6 million (US$18.5 million) for the three months ended September 30, 2025, representing a 2.3% increase from RMB128.6 million for the same period in 2024.

• Revenue generated from in-hospital business was RMB52.8 million (US$7.4 million) for the three months ended September 30, 2025, representing a 17.1% decrease from RMB63.8 million for the same period in 2024, driven by a decrease in sales volume.

• Revenue generated from central laboratory business was RMB36.8 million (US$5.2 million) for the three months ended September 30, 2025, representing a 7.9% decrease from RMB40.0 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 RMB42.0 million (US$5.9 million) for the three months ended September 30, 2025, representing a 68.6% increase from RMB24.9 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 RMB32.8 million (US$4.6 million) for the three months ended September 30, 2025, representing an 10.9% decrease from RMB36.8 million for the same period in 2024.

Gross profit was RMB98.8 million (US$13.9 million) for the three months ended September 30, 2025, representing a 7.6% increase from RMB91.8 million for the same period in 2024. Gross margin was 75.1% for the three months ended September 30, 2025, compared to 71.4% for the same period in 2024. By channel, gross margin of central laboratory business and in-hospital business were 81.8% and 71.8% for the three months ended September 30, 2025, compared to 83.2% and 73.0% during the same period in 2024, primarily due to the cost reduction caused by the rent subsidy for the headquarter building in the third quarter of 2024; gross margin of pharma research and development services was 73.4% for the three months ended September 30, 2025, compared to 48.2% during the same period of 2024, primarily due to the significant increase in revenue from high-margin companion diagnostic (CDx) projects.

Non-GAAP gross profit, which excludes depreciation and amortization expenses, was RMB100.9 million (US$14.2million) for the three months ended September 30, 2025, representing a 3.2% increase from RMB97.8 million for the same period in 2024. Non-GAAP gross margin was 76.7% for the three months ended September 30, 2025, compared to 76.0% for the same period in 2024.

Operating expenses were RMB115.0 million (US$16.2 million) for the three months ended September 30, 2025, representing a 11.9% decrease from RMB130.4 million for the same period in 2024. The decrease was primarily driven by decreases in amortized expense on share-based compensation, budget control measures and headcount reduction to improve the Company’s operating efficiency.

• Research and development expenses were RMB41.5 million (US$5.8 million) for the three months ended September 30, 2025, representing a 15.6% decrease from RMB49.2 million for the same period in 2024, primarily due to (i) a decrease in the expenditure for research projects; (iii) a decrease in amortized expense on share-based compensation; and (iv) a decrease in amortized expenses for office building decoration.
• Selling and marketing expenses were RMB41.8 million (US$5.9 million) for the three months ended September 30, 2025, representing a 13.6% decrease from RMB48.4 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; (ii) a decrease in amortized expense on share-based compensation; and (iii) a decrease in amortized expenses for office building decoration.
• General and administrative expenses were RMB31.7 million (US$4.5 million) for the three months ended September 30, 2025, representing a 3.6% decrease from RMB32.9 million for the same period in 2024, primarily due to (i) a decrease in the general and administrative personnel’s staff cost; (ii) a decrease in amortized expense on share-based compensation; and partially offset by (i) an increase in impairment expenses for accounts receivables and contract assets; (iii) an increase in operating lease.
  

Net loss was RMB16.8 million (US$2.4 million) for the three months ended September 30, 2025, compared to RMB35.7 million for the same period in 2024.

Cash, cash equivalents and restricted cash were RMB467.0 million (US$65.6 million) as of September 30, 2025.

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
	September 30, 2024	December 31, 2024	March 31, 2025	June 30, 2025	September 30, 2025
In-hospital Channel:
Pipeline partner hospitals(1)	30	29	30	30	31
Contracted partner hospitals(2)	61	63	63	63	63
Total number of partnerhospitals	69	92	93	93	94

(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				For the nine months ended
Revenues		September 30, 2024		September 30, 2025		September 30, 2024		September 30, 2025
		(RMB in thousands)				(RMB in thousands)
Central laboratory channel		39,984		36,811		136,371		115,968
In-hospital channel		63,769		52,847		181,028		173,030
Pharma research and development channel		24,891		41,959		72,401		124,255
Total revenues		128,644		131,617		389,800		413,253

		For the three months ended				For the nine months ended
Revenues by location of customer		September 30, 2024		September 30, 2025		September 30, 2024		September 30, 2025
		(RMB in thousands)				(RMB in thousands)
Overseas		25,840		17,214		59,553		79,079
Mainland China		102,804		114,403		330,247		334,174
Total Revenues		128,644		131,617		389,800		413,253

		For the three months ended				For the nine months ended
Gross profit		September 30, 2024		September 30, 2025		September 30, 2024		September 30, 2025
		(RMB in thousands)				(RMB in thousands)
Central laboratory channel		33,262		30,126		108,688		98,254
In-hospital channel		46,580		37,925		129,830		128,310
Pharma research and development channel		12,004		30,793		34,460		77,784
Total gross profit		91,846		98,844		272,978		304,348

		For the three months ended				For the nine months ended
Share-based compensation expenses		September 30, 2024		September 30, 2025		September 30, 2024		September 30, 2025
		(RMB in thousands)				(RMB in thousands)
Cost of revenues		289		301		1,349		889
Research and development expenses		3,180		73		27,475		1,603
Selling and marketing expenses		1,917		624		3,657		2,013
General and administrative expenses		4,732		2,831		115,129		6,249
Total share-based compensation expenses		10,118		3,829		147,610		10,754

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
	September 30, 2024		December 31, 2024		March 31, 2025		June 30, 2025		September 30, 2025		September 30, 2025
	RMB		RMB		RMB		RMB		RMB		US$
Revenues	128,644		126,022		133,082		148,554		131,617		18,488
Cost of revenues	(36,798	)	(36,600	)	(35,681	)	(40,451	)	(32,773	)	(4,604	)
Gross profit	91,846		89,422		97,401		108,103		98,844		13,884
Operating expenses:
Research and development expenses	(49,150	)	(52,203	)	(40,389	)	(49,770	)	(41,469	)	(5,825	)
Selling and marketing expenses	(48,411	)	(46,730	)	(40,888	)	(38,413	)	(41,808	)	(5,873	)
General and administrative expenses	(32,874	)	(37,289	)	(31,303	)	(31,417	)	(31,698	)	(4,453	)
Impairment loss on long-lived assets	-		(35,127	)	-		-		-		-
Total operating expenses	(130,435	)	(171,349	)	(112,580	)	(119,600	)	(114,975	)	(16,151	)
Loss from operations	(38,589	)	(81,927	)	(15,179	)	(11,497	)	(16,131	)	(2,267	)
Interest income	3,173		1,814		2,581		2,226		1,744		245
Interest expense	-		-		-		-		(15	)	(2	)
Other income (expense), net	1		4,353		(652	)	387		7		1
Foreign exchange loss, net	(129	)	(220	)	(26	)	(574	)	(2,151	)	(302	)
Loss before income tax	(35,544	)	(75,980	)	(13,276	)	(9,458	)	(16,546	)	(2,325	)
Income tax expenses	(201	)	(5,314	)	(224	)	(244	)	(212	)	(30	)
Net loss	(35,745	)	(81,294	)	(13,500	)	(9,702	)	(16,758	)	(2,355	)
Net loss attributable to Burning Rock Biotech Limited’s shareholders	(35,745	)	(81,294	)	(13,500	)	(9,702	)	(16,758	)	(2,355	)
Net loss attributable to ordinary shareholders	(35,745	)	(81,294	)	(13,500	)	(9,702	)	(16,758	)	(2,355	)
Loss per share for class A and class B ordinary shares:
Class A ordinary shares - basic and diluted	(0.35	)	(0.79	)	(0.13	)	(0.09	)	(0.16	)	(0.02	)
Class B ordinary shares - basic and diluted	(0.35	)	(0.79	)	(0.13	)	(0.09	)	(0.16	)	(0.02	)
Weighted average shares outstanding used in loss per share computation:
Class A ordinary shares - basic and diluted	85,902,670		86,036,286		90,291,658		90,357,970		90,416,619		90,416,619
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 (loss) income, net of tax of nil:
Foreign currency translation adjustments	(4,054	)	6,009		(72	)	(243	)	(1,724	)	(242	)
Total comprehensive loss	(39,799	)	(75,285	)	(13,572	)	(9,945	)	(18,482	)	(2,597	)
Total comprehensive loss attributable to Burning Rock Biotech Limited’s shareholders	(39,799	)	(75,285	)	(13,572	)	(9,945	)	(18,482	)	(2,597	)

Burning Rock Biotech Limited Unaudited Condensed Statements of Comprehensive Loss (in thousands, except for number of shares and per share data)
	For the nine months ended
	September 30, 2024		September 30, 2025		September 30, 2025
	RMB		RMB		US$
Revenues	389,800		413,253		58,049
Cost of revenues	(116,822	)	(108,905	)	(15,299	)
Gross profit	272,978		304,348		42,750
Operating expenses:
Research and development expenses	(180,087	)	(131,628	)	(18,490	)
Selling and marketing expenses	(144,174	)	(121,109	)	(17,012	)
General and administrative expenses	(224,349	)	(94,418	)	(13,263	)
Total operating expenses	(548,610	)	(347,155	)	(48,765	)
Loss from operations	(275,632	)	(42,807	)	(6,015	)
Interest income	10,398		6,551		920
Interest expense	-		(15	)	(2	)
Other income, net	353		(258	)	(36	)
Foreign exchange gain (loss), net	120		(2,751	)	(386	)
Loss before income tax	(264,761	)	(39,280	)	(5,519	)
Income tax expenses	(571	)	(680	)	(96	)
Net loss	(265,332	)	(39,960	)	(5,615	)
Net loss attributable to Burning Rock Biotech Limited’s shareholders	(265,332	)	(39,960	)	(5,615	)
Net loss attributable to ordinary shareholders	(265,332	)	(39,960	)	(5,615	)
Loss per share for class A and class B ordinary shares:
Class A ordinary shares - basic and diluted	(2.58	)	(0.37	)	(0.05	)
Class B ordinary shares - basic and diluted	(2.58	)	(0.37	)	(0.05	)
Weighted average shares outstanding used in loss per share computation:
Class A ordinary shares - basic and diluted	85,467,131		90,332,672		90,332,672
Class B ordinary shares - basic and diluted	17,324,848		17,324,848		17,324,848
Other comprehensive loss, net of tax of nil:
Foreign currency translation adjustments	(2,524	)	(2,039	)	(286	)
Total comprehensive loss	(267,856	)	(41,999	)	(5,901	)
Total comprehensive loss attributable to Burning Rock Biotech Limited’s shareholders	(267,856	)	(41,999	)	(5,901	)

Burning Rock Biotech Limited Unaudited Condensed Consolidated Balance Sheets (In thousands)
	As of
	December 31, 2024		September 30, 2025		September 30, 2025
	RMB		RMB		US$
ASSETS
Current assets:
Cash and cash equivalents	519,849		463,994		65,177
Restricted cash	2,313		2,985		419
Accounts receivable, net	152,013		183,841		25,824
Contract assets, net	13,855		13,049		1,833
Inventories, net	62,625		54,469		7,651
Prepayments and other current assets, net	25,963		20,985		2,950
Total current assets	776,618		739,323		103,854
Non-current assets:
Property and equipment, net	47,152		33,755		4,742
Operating right-of-use assets	53,188		32,281		4,534
Intangible assets, net	421		316		44
Other non-current assets	7,926		6,493		912
Total non-current assets	108,687		72,845		10,232
TOTAL ASSETS	885,305		812,168		114,086

Burning Rock Biotech Limited Unaudited Condensed Consolidated Balance Sheets (Continued) (in thousands)
	As of
	December 31, 2024		September 30, 2025		September 30, 2025
	RMB		RMB		US$
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	33,747		34,277		4,815
Deferred revenue	117,895		106,448		14,953
Accrued liabilities and other current liabilities	89,498		76,992		10,816
Customer deposits	592		592		83
Short-term borrowings	-		200		28
Current portion of operating lease liabilities	24,567		16,603		2,332
Total current liabilities	266,299		235,112		33,027
Non-current liabilities:
Long-term borrowings	-		1,800		253
Non-current portion of operating lease liabilities	27,754		14,577		2,048
Other non-current liabilities	10,425		11,102		1,559
Total non-current liabilities	38,179		27,479		3,860
TOTAL LIABILITIES	304,478		262,591		36,887
Shareholders’ equity:
Class A ordinary shares	124		120		17
Class B ordinary shares	21		21		3
Additional paid-in capital	5,002,255		5,006,937		703,320
Treasury stock	(63,264	)	(57,193	)	(8,034	)
Accumulated deficits	(4,200,261	)	(4,240,221	)	(595,620	)
Accumulated other comprehensive loss	(158,048	)	(160,087	)	(22,487	)
Total shareholders’ equity	580,827		549,577		77,199
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	885,305		812,168		114,086

Burning Rock Biotech Limited Unaudited Condensed Statements of Cash Flows (in thousands)
	For the three months ended
	September 30,2024		September 30,2025		September 30, 2025
	RMB		RMB		US$
Net cash used in operating activities	(30,278	)	16,394		2,303
Net cash used in investing activities	(987	)	(2,747	)	(386	)
Net cash generated from financing activities	2		-		-
Effect of exchange rate on cash, cash equivalents and restricted cash	(3,537	)	(1,692	)	(237	)
Net decrease in cash, cash equivalents and restricted cash	(34,800	)	11,955		1,680
Cash, cash equivalents and restricted cash at the beginning of period	533,047		455,024		63,916
Cash, cash equivalents and restricted cash at the end of period	498,247		466,979		65,596

	For the nine months ended
	September 30,2024		September 30,2025		September 30,2025
	RMB		RMB		US$
Net cash used in operating activities	(111,323	)	(51,482	)	(7,232	)
Net cash used in investing activities	(3,600	)	(4,071	)	(572	)
Net cash generated from financing activities	2		2,000		281
Effect of exchange rate on cash, cash equivalents and restricted cash	(2,048	)	(1,630	)	(229	)
Net decrease in cash, cash equivalents and restricted cash	(116,969	)	(55,183	)	(7,752	)
Cash, cash equivalents and restricted cash at the beginning of period	615,216		522,162		73,348
Cash, cash equivalents and restricted cash at the end of period	498,247		466,979		65,596

Burning Rock Biotech Limited Reconciliations of GAAP and Non-GAAP Results
	For the three months ended
	September 30, 2024		December 31, 2024		March 31, 2025		June 30, 2025		September 30, 2025
	(RMB in thousands)
Gross profit:
Central laboratory channel	33,262		33,153		32,191		35,937		30,126
In-hospital channel	46,580		29,563		43,895		46,490		37,925
Pharma research and development channel	12,004		26,706		21,315		25,676		30,793
Total gross profit	91,846		89,422		97,401		108,103		98,844
Add: depreciation and amortization:
Central laboratory channel	1,277		1,010		562		456		231
In-hospital channel	798		623		290		389		372
Pharma research and development channel	3,846		2,534		2,412		1,528		1,491
Total depreciation and amortization included in cost of revenues	5,921		4,167		3,264		2,373		2,094
Non-GAAP gross profit：
Central laboratory channel	34,539		34,163		32,753		36,393		30,357
In-hospital channel	47,378		30,186		44,185		46,879		38,297
Pharma research and development channel	15,850		29,240		23,727		27,204		32,284
Total non-GAAP gross profit	97,767		93,589		100,665		110,476		100,938
Non-GAAP gross margin：
Central laboratory channel	86.4%		87.0%		85.5%		89.1%		82.5%
In-hospital channel	74.3%		69.5%		76.6%		75.0%		72.5%
Pharma research and development channel	63.7%		67.6%		64.0%		60.2%		76.9%
Total non-GAAP gross margin	76.0%		74.3%		75.6%		74.4%		76.7%

FAQ

What were Burning Rock (BNR) Q3 2025 total revenues and year-over-year change?

Q3 2025 total revenue was RMB131.6 million (US$18.5 million), up 2.3% year‑over‑year.

How much did Burning Rock (BNR) pharma R&D revenue grow in Q3 2025?

Pharma research and development revenue increased 68.6% to RMB42.0 million (US$5.9 million) in Q3 2025.

What change occurred in Burning Rock's gross margin in Q3 2025?

Gross margin rose to 75.1% in Q3 2025 from 71.4% a year earlier (~370 basis points improvement).

How did Burning Rock (BNR) operating expenses and net loss change in Q3 2025?

Operating expenses fell 11.9% to RMB115.0 million; net loss narrowed to RMB16.8 million from RMB35.7 million.

What regulatory or product milestones did Burning Rock report in November 2025?

Japan MHLW granted Manufacturing and Marketing Approval for the OncoGuide OncoScreen Plus CDx as a companion diagnostic for AstraZeneca’s capivasertib in September 2025.

What is Burning Rock's reported cash position as of September 30, 2025?

Cash, cash equivalents and restricted cash totaled RMB467.0 million (US$65.6 million) as of September 30, 2025.