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:
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 LimitedUnaudited 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
)
-
-
