2025 Business Overview and Recent Updates
Early Detection
The core patent related to Burning Rock's proprietary ultrasensitive detection technology, ELSA-seq (Patent No.: US 12460202 B2), has officially been granted by the United States Patent and Trademark Office (USPTO).
Therapy Selection & MRD
Presented study results at Annals of Surgery in December 2025. "ctDNA-based MRD detected by CanCatch® Custom associates with recurrence in CRC. Day 7 is an effective alternative landmark to Day 30 for MRD assessment and CanCatch® Custom outperforms TIFP and TNFP in the association of DFS."
OncoScreen® BCMatch Tissue Kit has officially entered the Priority Review Channel of the Center for Medical Device Evaluation (CMDE) under the NMPA.
Fourth Quarter 2025 Financial Results
Revenues were RMB126.3 million (US$18.1 million) for the three months ended December 31, 2025, remaining relatively stable as compared with RMB126.0 million for the same period in 2024.
Revenue generated from central laboratory business was RMB44.0 million (US$6.3 million) for the three months ended December 31, 2025, representing a 12.1% increase from RMB39.3 million for the same period in 2024, primarily attributable to an increase in the number of CanCatch® tests.
Revenue generated from in-hospital business was RMB51.0 million (US$7.3 million) for the three months ended December 31, 2025, representing a 17.3% increase from RMB43.4 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 pharma research and development services was RMB31.3 million (US$4.5 million) for the three months ended December 31, 2025, representing a 27.7% decrease from RMB43.3 million for the same period in 2024, primarily attributable to decreased testing services performed for our pharma customers due to timing of lumpy projects.
Cost of revenues was RMB27.7 million (US$4.0 million) for the three months ended December 31, 2025, representing a 24.2% decrease from RMB36.6 million for the same period in 2024.
Gross profit was RMB98.6 million (US$14.1 million) for the three months ended December 31, 2025, representing a 10.2% increase from RMB89.4 million for the same period in 2024. Gross margin was 78.0% for the three months ended December 31, 2025, compared to 71.0% for the same period in 2024. By channel, gross margin of central laboratory business was 89.3% for the three months ended December 31, 2025, compared to 84.4% during the same period in 2024, primarily due to the decreased depreciation and rental cost in relation to our laboratory of Guangzhou headquarters; gross margin of in-hospital business was 75.3% for the three months ended December 31, 2025, compared to 68.0% during the same period in 2024, primarily due to an increase in sales volume to high margin hospitals and decreased depreciation and rental cost in relation to our laboratory of Guangzhou headquarters; gross margin of pharma research and development services was 66.7% for the three months ended December 31, 2025, compared to 61.7% during the same period of 2024, primarily due to an increase in test volume of higher margin projects.
Non-GAAP gross profit, which excludes depreciation and amortization expenses, was RMB101.4 million (US$14.5 million) for the three months ended December 31, 2025, representing a 8.4% increase from RMB93.6 million for the same period in 2024. Non-GAAP gross margin was 80.3% for the three months ended December 31, 2025, compared to 74.3% for the same period in 2024. For more details on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this press release.
Operating expenses were RMB110.6 million (US$15.8 million) for the three months ended December 31, 2025, representing a 35.5% decrease from RMB171.3 million for the same period in 2024. The decrease was primarily driven by budget control measures, including headcount reduction, to improve our operating efficiency
Research and development expenses were RMB34.8 million (US$5.0 million) for the three months ended December 31, 2025, representing a 33.2% decrease from RMB52.2 million for the same period in 2024, primarily due to (i) a decrease in staff cost resulted from the reorganization of our research and development department; (ii) a decrease in the expenditure for detection research, and (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 RMB44.1 million (US$6.3 million) for the three months ended December 31, 2025, representing a 5.7% decrease from RMB46.7 million for the same period in 2024, primarily due to (i) a decrease in staff cost resulted from the reorganization; (ii) a decreased depreciation and amortization, offset by an increase in conference fee.
General and administrative expenses were RMB31.7 million (US$4.5 million) for the three months ended December 31, 2025, representing a 15.1% decrease from RMB37.3 million for the same period in 2024, primarily due to (i) a decrease in amortized expense on share-based compensation; (ii) a decrease in operating lease; and (iii) a decrease in staff cost resulted from the reorganization; offset by an increase in impairment expenses for accounts receivables and contract assets.
Net loss was RMB15.4 million (US$2.2 million) for the three months ended December 31, 2025, compared to RMB81.3 million for the same period in 2024.
Cash, cash equivalents and restricted cash were RMB481.1 million (US$68.8 million) as of December 31, 2025.
Full Year 2025 Financial Results
Revenues were RMB539.6 million (US$77.2 million) for 2025, representing a 4.6% increase from RMB515.8 million for 2024.
Revenue generated from central laboratory business was RMB160.0 million (US$22.9 million) for 2025, representing a 8.9% decrease from RMB175.6 million for 2024, primarily attributable to a decrease in the number of tests, as we continued our transition towards in-hospital testing and pharma research and development services.
Revenue generated from in-hospital business was RMB224.1 million (US$32.0 million) for 2025, remaining relatively stable as compared with RMB224.5 million for 2024.
Revenue generated from pharma research and development services was RMB155.5 million (US$22.2 million) for 2025, representing a 34.5% increase from RMB115.7 million for 2024, primarily attributable to an increased development and testing services performed for our pharma customers.
Cost of revenues was RMB136.7 million (US$19.5 million) for 2025, representing a 10.9% decrease from RMB153.4 million for 2024, primarily due to a decrease in cost of revenues for our central laboratory business and in-hospital business.
Gross profit was RMB402.9 million (US$57.6 million) for 2025, compared to RMB362.4 million for 2024. Gross margin increased to 74.7% for 2025 from 70.3% for 2024. By channel, gross margin of central laboratory business was 86.0% for 2025, compared to 80.8% for 2024, primarily due to the decreased depreciation; gross margin of in-hospital business was 74.4% for 2025, compared to 71.0% for 2024, primarily due to a decreased depreciation and amortization and a reduction in material and labor costs resulted from cost optimization and control measures; gross margin of pharma research and development services was 63.4% for 2025, compared to 52.9% for 2024, primarily due to an increase in test volume of higher margin projects and a decreased depreciation.
Non-GAAP gross profit, which excludes depreciation and amortization expenses, was RMB413.5 million (US$59.1 million) for 2025, representing a 7.1% increase from RMB386.3 million for 2024. Non-GAAP gross margin was 76.6% for 2025, compared to 74.9% for 2024. For more details on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this press release.
Operating expenses were RMB457.8 million (US$65.5 million) for 2025, representing a 36.4% decrease from RMB720.0 million for 2024.
Research and development expenses were RMB166.5 million (US$23.8 million) for 2025, representing a 28.3% decrease from RMB232.4 million for 2024, primarily due to (i) a decrease in amortized expense on share-based compensation; (ii) a decrease in the expenditure for detection research; (iii) a decrease in staff cost resulted from the reorganization of our research and development department; and (iv) a decreased depreciation and amortization expenses.
Selling and marketing expenses were RMB165.2 million (US$23.6 million) for 2025, representing a 13.5% decrease from RMB190.9 million for 2024, primarily due to (i) a decrease in staff cost resulted from the reorganization of our sales department; (ii) a decrease in depreciation and amortization expenses; and (iii) a decrease in amortized expense on share-based compensation; offset by (iv) an increase in conference fee.
General and administrative expenses were RMB126.1 million (US$18.0 million) for 2025, representing a 51.8% decrease from RMB261.6 million for 2024, primarily due to (i) a decrease in amortized expense on share-based compensation; (ii) a decrease in staff cost resulted from the reorganization of our general and administrative department; (iii) a decrease in operating lease; and (iv) a decrease in depreciation and amortization expenses.
There is no impairment loss on long-lived assets for the year ended December 31, 2025, compared to RMB35.1 million for 2024.
Net loss was RMB55.3 million (US$7.9 million) for 2025, compared to RMB346.6 million for 2024.
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 RMB6.9931 to US$1.00, the exchange rate on December 31, 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 and formulate business plans. However, 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"). These non-GAAP financial measures may be different from non-GAAP methods of accounting and reporting used by other companies, including peer companies, and therefore their comparability may be limited.
The Company defines non-GAAP gross profit as gross profit excluding depreciation and amortization. The Company defines non-GAAP gross margin as non-GAAP gross profit divided by its revenue.
The Company believes presenting non-GAAP gross profit and non-GAAP gross margin excluding non-cash impact of depreciation and amortization, in addition to the Company's GAAP gross profit and gross margin, provides a better understanding of the underlying trends in the Company's operating business performance.
Reconciliation of these non-GAAP financial measures to the most directly comparable U.S. GAAP measures are set forth at the end of this press release, all of which should be considered when evaluating the Company's performance.
Contact: [email protected]
Selected Operating Data
As of
March 31, 2024
June 30, 2024
September 30, 2024
December 31, 2024
March 31, 2025
June 30, 2025
September 30, 2025
December 31, 2025
In-hospital channel:
Pipeline partner hospitals(1)
28
29
30
29
30
30
31
30
Contracted partner hospitals(2)
59
59
61
63
63
63
63
64
Total number of partner hospitals
87
88
91
92
93
93
94
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
Revenues
March 31, 2024
June 30, 2024
September 30, 2024
December 31, 2024
March 31,2025
June 30,2025
September 30, 2025
December 31, 2025
(RMB in thousands)
Central laboratory channel
47,614
48,773
39,984
39,278
38,296
40,861
36,811
44,025
In-hospital channel
57,387
59,872
63,769
43,464
57,687
62,496
52,847
51,005
Pharma research and development channel
20,622
26,888
24,891
43,280
37,099
45,197
41,959
31,285
Total revenues
125,623
135,533
128,644
126,022
133,082
148,554
131,617
126,315
For the three months ended
Revenues by location of contracting customer
March 31, 2024
June 30, 2024
September 30, 2024
December 31, 2024
March 31,2025
June 30,2025
September 30, 2025
December 31, 2025
(RMB in thousands)
Overseas
13,923
19,791
25,840
40,534
24,407
37,458
17,214
21,849
Mainland China
111,700
115,742
102,804
85,488
108,675
111,096
114,403
104,466
Total Revenues
125,623
135,533
128,644
126,022
133,082
148,554
131,617
126,315
For the three months ended
Gross profit
March 31, 2024
June 30, 2024
September 30, 2024
December 31, 2024
March 31, 2025
June 30, 2025
September 30, 2025
December 31, 2025
(RMB in thousands)
Central laboratory channel
37,002
38,424
33,262
33,153
32,191
35,937
30,126
39,322
In-hospital channel
39,192
44,058
46,580
29,563
43,895
46,490
37,925
38,388
Pharma research and development channel
9,500
12,956
12,004
26,706
21,315
25,676
30,793
20,856
Total gross profit
85,694
95,438
91,846
89,422
97,401
108,103
98,844
98,566
For the three months ended
Share-based compensation expenses
March 31, 2024
June 30, 2024
September 30, 2024
December 31, 2024
March 31,2025
June 30,2025
September 30, 2025
December 31, 2025
(RMB in thousands)
Cost of revenues
596
464
289
520
308
280
301
300
Research and development expenses
12,287
12,008
3,180
3,202
1,800
(270
)
73
259
Selling and marketing expenses
508
1,232
1,917
1,353
1,025
364
624
748
General and administrative expenses
55,990
54,407
4,732
2,937
1,413
2,005
2,831
1,815
Total share-based compensation expenses
69,381
68,111
10,118
8,012
4,546
2,379
3,829
3,122
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
March 31, 2024
June 30, 2024
September 30,2024
December 31, 2024
March 31, 2025
June 30,2025
September 30, 2025
December 31, 2025
December 31, 2025
RMB
RMB
RMB
RMB
RMB
RMB
RMB
RMB
US$
Revenues
125,623
135,533
128,644
126,022
133,082
148,554
131,617
126,315
18,063
Cost of revenues
(39,929
)
(40,095
)
(36,798
)
(36,600
)
(35,681
)
(40,451
)
(32,773
)
(27,749
)
(3,968
)
Gross profit
85,694
95,438
91,846
89,422
97,401
108,103
98,844
98,566
14,095
Operating expenses:
Research and development expenses
(65,985
)
(64,952
)
(49,150
)
(52,203
)
(40,389
)
(49,770
)
(41,469
)
(34,866
)
(4,986
)
Selling and marketing expenses
(46,856
)
(48,907
)
(48,411
)
(46,730
)
(40,888
)
(38,413
)
(41,808
)
(44,066
)
