Burning Rock Biotech (BNR) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 rose 5.9% year-over-year to RMB133.1 million (US$18.3 million), driven by strong pharma R&D services growth.

• Net loss narrowed significantly to RMB13.5 million (US$1.9 million) from RMB121.5 million a year ago, reflecting improved cost controls.

• Gross margin improved to 73.2% from 68.2% year-over-year, with all business segments showing margin expansion.

• Pharma R&D services revenue surged 79.9% year-over-year, offsetting declines in central laboratory business.

• Operating expenses dropped 46.8% year-over-year due to budget controls and headcount reduction.

Financial highlights

• Gross profit increased 13.7% year-over-year to RMB97.4 million (US$13.4 million).

• Non-GAAP gross profit was RMB100.7 million (US$13.9 million), up 8.3% year-over-year.

• Cash, cash equivalents, and restricted cash stood at RMB497.4 million (US$68.5 million) as of March 31, 2025.

• Loss per share for both Class A and B shares was RMB0.13, compared to RMB1.19 a year ago.

Segment performance

• Central laboratory revenue fell 19.6% year-over-year to RMB38.3 million, due to fewer tests as focus shifted to in-hospital business.

• In-hospital business revenue grew 0.5% year-over-year to RMB57.7 million, with continued sales volume growth.

• Pharma R&D services revenue jumped 79.9% year-over-year to RMB37.1 million, driven by increased development/testing and milestone achievements.

• Gross margin by segment: central laboratory 84.1%, in-hospital 76.1%, pharma R&D 57.5%, all up year-over-year.