Burning Rock Biotech reported third‑quarter 2025 results that show modest revenue growth of 2.3 % to RMB 131.6 million (US$18.5 million) while gross profit rose 7.6 % to RMB 98.8 million (US$13.9 million). The company’s gross margin climbed to 75.1 % from 71.4 % year‑over‑year, reflecting a higher mix of high‑margin pharma R&D services and improved operational leverage. Operating expenses fell 11.9 % to RMB 115.0 million (US$16.2 million) as share‑based compensation amortization decreased and headcount reductions were implemented, which helped narrow the net loss to RMB 16.8 million (US$2.4 million) from RMB 35.7 million in the same quarter last year.
The revenue mix shifted sharply: pharma R&D services surged 68.6 % to RMB 70.2 million, offsetting declines in the in‑hospital business (‑17.1 %) and central laboratory business (‑7.9 %). Overseas revenue grew 33 % year‑over‑year, driven by the recent regulatory approval of the OncoGuide™ OncoScreen™ Plus CDx System in Japan and expanding global market presence. The company’s cash, cash equivalents, and restricted cash totaled RMB 467.0 million (US$65.6 million) as of September 30, providing a robust liquidity cushion as it continues to focus on profitability and cost discipline.
Operating expenses were trimmed through a combination of lower share‑based compensation amortization and a reduction in workforce headcount. These cost‑control measures, coupled with the higher‑margin service mix, enabled the company to improve its gross margin and reduce the net loss despite modest revenue growth. The company’s strategic shift toward a more profitable in‑hospital model is reflected in the declining in‑hospital revenue, which the management attributes to a transition toward in‑hospital testing and decreased sales volume.
Comparing to the prior quarter, Q2 2025 revenue was RMB 148.5 million (US$20.7 million) and the net loss was RMB 9.7 million (US$1.4 million). The Q3 decline in revenue relative to Q2 highlights the impact of the in‑hospital and central laboratory downturns, while the narrowing loss demonstrates the effectiveness of the company’s cost‑control initiatives.
Management emphasized continued focus on cost discipline and the strategic shift toward a more profitable in‑hospital model. The company’s expanding international footprint, particularly in Japan, and the strong growth in pharma R&D services signal a trajectory toward profitability, even as it navigates headwinds in legacy testing segments.
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