Burning Rock Biotech Q1 sales fall 14.7% to $15.6M
Burning Rock Biotech reported a net loss per share of $(0.20) for Q1 2026, unchanged from the prior year, as sales fell 14.67% to $15.649 million. Revenue declines were driven by lower performance in central laboratory, in-hospital, and pharma R&D channels.
*this image is generated using AI for illustrative purposes only.
Burning Rock Biotech reported a net loss per share of $(0.20) for the three months ended March 31, 2026, unchanged from the same period in 2025. Sales for the quarter fell 14.67% year-over-year to $15.649 million, down from $18.340 million in the prior year, primarily driven by declines across its central laboratory, in-hospital, and pharma research and development channels.
The company's gross profit stood at RMB78.0 million (US$11.3 million), a 19.9% decrease from RMB97.4 million in the prior year, with a gross margin of 72.3% compared to 73.2%. Operating expenses totaled RMB96.9 million (US$14.1 million), representing a 14.0% decrease from RMB112.6 million, attributed to business cost and payment collection control to improve efficiency. Research and development expenses fell 31.8% to RMB27.6 million (US$4.0 million), while selling and marketing expenses remained relatively stable at RMB41.2 million (US$6.0 million).
Financial Performance by Channel
Revenue from the central laboratory business dropped 15.3% to RMB32.3 million (US$4.7 million) due to a continued transition towards in-hospital testing. In-hospital business revenue decreased 8.5% to RMB52.8 million (US$7.6 million), primarily due to one-off issues at two hospitals; excluding these, revenue would have increased by 2% year-over-year. Pharma research and development services revenue fell 38.6% to RMB22.8 million (US$3.3 million), driven by decreased testing services and lower milestone progress due to project timing.
| Channel | Q1 2026 Revenue (RMB) | Q1 2025 Revenue (RMB) | YoY Change |
|---|---|---|---|
| Central laboratory | 32,420 | 38,296 | -15.3% |
| In-hospital | 52,761 | 57,687 | -8.5% |
| Pharma R&D | 22,762 | 37,099 | -38.6% |
| Total revenues | 107,943 | 133,082 | -18.9% |
Balance Sheet and Cash Flows
As of March 31, 2026, cash, cash equivalents, and restricted cash were RMB448.7 million (US$65.1 million). The company reported total assets of RMB787.8 million (US$114.2 million) and total liabilities of RMB271.3 million (US$39.3 million). Net cash used in operating activities for the quarter was RMB29.3 million (US$4.2 million), while net cash used in investing activities was RMB0.4 million (US$0.1 million).
Non-GAAP Metrics
Non-GAAP gross profit, which excludes depreciation and amortization, was RMB80.5 million (US$11.7 million), a 20.0% decrease from RMB100.7 million in the prior year. The non-GAAP gross margin was 74.6%, compared to 75.6% in the same period of 2025.
What is the expected timeline for resolving the one-off issues at the two hospitals that impacted in-hospital revenue?
How will the significant reduction in R&D expenses impact the company's long-term innovation pipeline and competitive positioning?
Are there signs that the transition from central laboratory to in-hospital testing is stabilizing, or will central lab revenue continue to decline?
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