Burning Rock Biotech (BNR) Q1 2026 earnings summary

Executive summary

• Achieved continued efficiency gains in Q1 2026, focusing on profitability and cost control, with revenue at RMB107.9 million (US$15.6 million), an 18.9% decrease year-over-year.

• Net loss widened to RMB17.5 million (US$2.5 million) from RMB13.5 million in Q1 2025.

• Presented multiple clinical and academic study results at AACR 2026 and in leading journals, validating MRD and early detection technologies.

• Expanded leadership in NGS-based precision oncology, with new business initiatives in early detection and biopharma.

Financial highlights

• Total revenues for Q1 2026 were RMB 108.0 million, down 19% year-over-year and 15% sequentially from Q4 2025.

• Gross profit margin improved to 73% in Q1 2026, up 1 percentage point year-over-year.

• Central laboratory business gross margin reached 89% in Q1 2026, up 5 percentage points year-over-year.

• Operating expenses decreased 14% year-over-year in Q1 2026, with R&D down 32% and G&A down 10%.

• Adjusted EBITDA for Q1 2026 was negative RMB 17.6 million.

• Cash balance at period-end was RMB 449 million.

• Central laboratory revenue fell 15.3% year-over-year to RMB32.3 million, mainly due to fewer tests as the business transitions to in-hospital testing.

• In-hospital revenue dropped 8.5% to RMB52.8 million, but would have increased 2% excluding two hospitals with one-off issues.

• Pharma R&D services revenue declined 38.6% to RMB22.8 million, reflecting lower testing volume and milestone progress.

• Gross profit was RMB78.0 million, down 19.9% year-over-year; gross margin was 72.3%, slightly lower than 73.2% a year ago.

• Non-GAAP gross profit was RMB80.5 million, with a non-GAAP gross margin of 74.6%.

• Operating expenses decreased 14.0% to RMB96.9 million, driven by cost controls.

• R&D expenses fell 31.8% to RMB27.6 million; G&A expenses decreased 10.3% to RMB28.1 million.

Outlook and guidance

• Continued focus on cost savings and operating efficiency, with expectations for further reductions in operating expenses.

• Ongoing transition towards in-hospital channel, with increasing revenue proportion from this segment.

• Forward-looking statements indicate ongoing risks and uncertainties due to market and operating conditions.