Press Releases September 10, 2026 07:17 AM

Burning Rock Reports Second Quarter 2026 Financial Results

Burning Rock Biotech reports Q2 2026 financials showing revenue decline but ongoing product regulatory progress in precision oncology.

By Caleb Monroe
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Burning Rock Biotech Limited reported its second quarter 2026 financial results, showing a 9.3% year-over-year decrease in total revenue to RMB134.7 million (US$19.9 million), driven by reduced pharma R&D services and central laboratory testing offset partially by growth in in-hospital sales. The company progressed in regulatory review for several oncology diagnostic kits, anticipating new registrations that could drive long-term growth. Gross margin remained stable at about 72.6%, while net loss widened to RMB18.4 million due to increased operating expenses. The company maintains a strong cash position and is transitioning towards in-hospital diagnostics.

Burning Rock Reports Second Quarter 2026 Financial Results
BNR
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Key Points

  • Burning Rock's total revenue declined 9.3% YoY in Q2 2026, with in-hospital business growing 7.4% while pharma R&D services fell 31.8%.
  • Multiple products entered China's medical device priority and special review channels, indicating potential future market approvals and sales growth.
  • Operating expenses decreased overall by 3.2%, with a significant drop in R&D spend but increased selling, marketing, and administrative costs, reflecting cost control efforts and expansion activities.
  • The report impacts the biotechnology and healthcare sectors, particularly precision oncology diagnostics and cancer detection markets in China and globally through US-listed ADRs.

GUANGZHOU, China, Sept. 10, 2026 (GLOBE NEWSWIRE) -- Burning Rock Biotech Limited (NASDAQ: BNR, the “Company” or “Burning Rock”), a company focused on the application of next-generation sequencing (NGS) technology in the field of precision oncology, today reported financial results for the three months ended June 30, 2026.

Recent Business Updates

  • Therapy Selection & MRD
    • OncoScreen® BCMatch Tissue Kit has officially entered the Priority Review Channel of the Center for Medical Device Evaluation (CMDE) under the NMPA.
    • CanCatch Custom Kit and CanCatch Custom Kit (cPAS) have officially entered the Special Review Procedure for Innovative Medical Devices of CMDE under the NMPA.
    • In August 2026, the Priority Review Channel application for OncoCompass Target Cancer Mutation Profiling Liquid Kit was resubmitted and subsequently accepted for review.

“After navigating a challenging first quarter, we delivered the anticipated sequential recovery in the second quarter, offsetting the order volatility in the first quarter,” said Mr. Yusheng Han, Chairman and Chief Executive Officer of Burning Rock. “With several products having entered the Priority Review Channel and Special Review Procedure for Innovative Medical Devices of CMDE and new registration certificates expected in the coming quarters, we are confident that we will achieve sustainable and meaningful top‑line growth over the long term.”

Second Quarter 2026 Financial Results

Revenues were RMB134.7 million (US$19.9 million) for the three months ended June 30, 2026, representing a 9.3% decrease from RMB148.5 million for the same period in 2025.

  • Revenue generated from central laboratory business was RMB36.8 million (US$5.4million) for the three months ended June 30, 2026, representing a 10.0% decrease from RMB40.9 million for the same period in 2025, primarily attributable to a decrease in the number of tests, as we continued our transition towards in-hospital business.
  • Revenue generated from in-hospital business was RMB67.1 million (US$9.9 million) for the three months ended June 30, 2026, representing a 7.4% increase from RMB62.5 million for the same period in 2025, driven by an increase in sales volume.
  • Revenue generated from pharma research and development services was RMB30.8 million (US$4.6 million) for the three months ended June 30, 2026, representing a 31.8% decrease from RMB45.1 million for the same period in 2025, primarily attributable to decreased testing services performed for our pharma customers.

Cost of revenues was RMB36.9 million (US$5.5 million) for the three months ended June 30, 2026, representing an 8.6% decrease from RMB40.4 million for the same period in 2025.

Gross profit was RMB97.8 million (US$14.4 million) for the three months ended June 30, 2026, representing a 9.5% decrease from RMB108.1 million for the same period in 2025. Gross margin was 72.6% for the three months ended June 30, 2026, compared to 72.8% for the same period in 2025. By channel, gross margin of central laboratory business was 85.7% for the three months ended June 30, 2026, compared to 87.9% during the same period in 2025, primarily driven by an increased depreciation; gross margin of in-hospital business was 77.1% for the three months ended June 30, 2026, compared to 74.4% during the same period in 2025, primarily attributable to an increase in sales volume to high margin products; gross margin of pharma research and development services was 47.2% for the three months ended June 30, 2026, compared to 56.8% during the same period of 2025, primarily due to a decrease in test volume of higher-margin projects.

Non-GAAP gross profit, which excludes depreciation and amortization expenses, was RMB100.1 million (US$14.8 million) for the three months ended June 30, 2026, representing a 9.4% decrease from RMB110.5 million for the same period in 2025. Non-GAAP gross margin was 74.3% for the three months ended June 30, 2026, compared to 74.4% for the same period in 2025. 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 RMB115.8 million (US$17.1 million) for the three months ended June 30, 2026, representing a 3.2% decrease from RMB119.6 million for the same period in 2025. The decrease was primarily driven by business cost control to improve operating efficiency.

  • Research and development expenses were RMB31.2 million (US$4.6 million) for the three months ended June 30, 2026, representing a 37.3% decrease from RMB49.8 million for the same period in 2025, primarily due to a temporary decrease across different research phases.
  • Selling and marketing expenses were RMB47.1 million (US$6.9 million) for the three months ended June 30, 2026, representing a 22.7% increase from RMB38.4 million for the same period in 2025, primarily due to an increase in staff costs.
  • General and administrative expenses were RMB37.5 million (US$5.6 million) for the three months ended June 30, 2026, representing a 19.2% increase from RMB31.4 million for the same period in 2025, primarily due to an increase in allowance for credit loss in relation to accounts receivables, partially offset by a decrease in share-based compensation expenses.

Net loss was RMB18.4 million (US$2.7 million) for the three months ended June 30, 2026, compared to RMB9.7 million for the same period in 2025.

Cash, cash equivalents and restricted cash were RMB419.1 million (US$61.8 million) as of June 30, 2026.

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 RMB6.7851 to US$1.00, the exchange rate on June 30 2026, 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
 June 30,September 30,December 31,March 31,June 30, 20252025202520262026In-hospital channel:     Pipeline partner hospitals(1)3031303030Contracted partner hospitals(2)6363646464Total number of partner hospitals9394949494


(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
 June 30,September 30,December 31,March 31,June 30,Revenues20252025202520262026  (RMB in thousands) Central laboratory channel40,86136,81144,02532,42036,782In-hospital channel62,49652,84751,00552,76167,145Pharma research and development channel45,19741,95931,28522,76230,838Total revenues148,554131,617126,315107,943 134,765

                

 For the three months ended
 June 30,September 30,December 31,March 31,June 30,Revenues by location of contracting customer20252025202520262026  (RMB in thousands) Overseas37,45817,21421,8498,54417,878Chinese mainland111,096114,403104,46699,399116,887Total revenues148,554131,617126,315107,943134,765

                

 For the three months ended
 June 30,September 30,December 31,March 31,June 30,Gross profit20252025202520262026  (RMB in thousands) Central laboratory channel35,93730,12639,32228,76131,510In-hospital channel46,49037,92538,38838,45851,760Pharma research and development channel25,67630,79320,85610,78914,543Total gross profit108,10398,84498,56678,008 97,813

                

 For the three months ended June 30,September 30,December 31,March 31,June 30,Share-based compensation expenses2025 202520252026 2026  (RMB in thousands) Cost of revenues280 30130082 141Research and development expenses(270)73259(345)345Selling and marketing expenses364 624748164 269General and administrative expenses2,005 2,8311,8151,907 1,244Total share-based compensation expenses2,379 3,8293,1221,808  1,999


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 June 30, September 30, December 31, March 31, June 30, June 30, 2025
 2025
 2025
 2026
 2026
 2026
 RMB RMB RMB RMB RMB US$Revenues148,554  131,617  126,315  107,943  134,765   19,862  Cost of revenues(40,451) (32,773) (27,749) (29,935) (36,952) (5,446)Gross profit108,103  98,844  98,566  78,008  97,813   14,416  Operating expenses:           Research and development expenses(49,770) (41,469) (34,866) (27,559) (31,230) (4,603)Selling and marketing expenses(38,413) (41,808) (44,066) (41,206) (47,141) (6,948)General and administrative expenses(31,417) (31,698) (31,672) (28,088) (37,443) (5,518)Total operating expenses(119,600) (114,975) (110,604) (96,853) (115,814) (17,069)Loss from operations(11,497) (16,131) (12,038) (18,845) (18,001) (2,653)Interest income2,226  1,744  1,502  1,261  1,370  202 Interest expense-  (15) (15) (15) (15) (2)Other income (expense), net387  7  1  294  (199) (29)Foreign exchange (loss) gain, net(574) (2,151) (3,960) 65  (1,278) (188)Loss before income tax(9,458) (16,546) (14,510) (17,240) (18,123) (2,670)Income tax expenses(244) (212) (876) (232) (287) (42)Net loss(9,702) (16,758) (15,386) (17,472) (18,410) (2,712)Net loss attributable to Burning Rock Biotech Limited’s shareholders(9,702) (16,758) (15,386) (17,472) (18,410) (2,712)Net loss attributable to ordinary shareholders(9,702) (16,758) (15,386) (17,472) (18,410) (2,712)Loss per share for class A and class B ordinary shares:           Class A ordinary shares - basic and diluted(0.09) (0.16) (0.15) (0.17) (0.17) (0.02)Class B ordinary shares - basic and diluted(0.09) (0.16) (0.15) (0.17) (0.17) (0.02)Weighted average shares outstanding used in loss per share computation:           Class A ordinary shares - basic and diluted90,357,970  90,416,619  87,444,109  87,871,026  91,279,393  91,279,393 Class B ordinary shares - basic and diluted17,324,848  17,324,848  17,324,848  17,324,848  17,324,848  17,324,848 Other comprehensive loss, net of tax of nil:           Foreign currency translation adjustments(243) (1,724) (2,050) (3,143) (2,971) (438)Total comprehensive loss(9,945) (18,482) (17,436) (20,615) (21,381) (3,150)Total comprehensive loss attributable to Burning Rock Biotech Limited’s shareholders(9,945) (18,482) (17,436) (20,615) (21,381) (3,150)                  


Burning Rock Biotech Limited 
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
   As of December 31, June 30, June 30, 2025 2026 2026 RMB RMB US$ASSETS     Current assets:     Cash and cash equivalents478,392 416,818 61,431Restricted cash2,696 2,290 338Accounts receivable, net169,611 172,768 25,463Contract assets, net12,301 9,777 1,441Inventories, net48,576 34,131 5,030Contract costs8,399 5,597 825Prepayments and other current assets18,611 22,636   3,337Total current assets738,586  664,017   97,865 Non-current assets:     Property and equipment, net31,099 31,808 4,688Operating right-of-use assets42,774 46,282 6,821Intangible assets, net284 233 35Other non-current assets7,632 8,271 1,219Total non-current assets81,789  86,594   12,763 TOTAL ASSETS820,375 750,611 110,628      


Burning Rock Biotech Limited
Unaudited Condensed Consolidated Balance Sheets (Continued)
(in thousands)
   As of December 31, June 30, June 30, 2025
 2026
 2026
 RMB RMB US$LIABILITIES AND SHAREHOLDERS’ EQUITY     Current liabilities:     Accounts payable40,744  17,950  2,646 Deferred revenue107,819  109,170  16,090 Accrued liabilities and other current liabilities80,861  68,458  10,090 Customer deposits592  592  87 Current portion of long-term borrowings200  200  29 Current portion of operating lease liabilities16,762  21,172  3,120 Total current liabilities246,978   217,542    32,062  Non-current liabilities:     Long-term borrowings1,700  1,600  236 Non-current portion of operating lease liabilities24,458  22,140  3,263 Other non-current liabilities11,975  12,248  1,805 Total non-current liabilities38,133   35,988    5,304  TOTAL LIABILITIES285,111   253,530    37,366  Shareholders’ equity:     Class A ordinary shares120  126  19 Class B ordinary shares21  21  3 Additional paid-in capital5,010,060  5,013,867  738,953 Treasury stock(57,193) (57,193) (8,429)Accumulated deficits(4,255,607) (4,291,489) (632,487)Accumulated other comprehensive loss   (162,137) (168,251) (24,797)Total shareholders’ equity535,264  497,081   73,262  TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY820,375  750,611   110,628           


Burning Rock Biotech Limited
Unaudited Condensed Statements of Cash Flows
(in thousands)
   For the six months ended June 30, June 30, June 30, 2025
 2026
 2026
 RMB RMB US$Net cash used in operating activities(67,876) (51,657) (7,613)Net cash used in investing activities(1,324) (2,841) (419)Net cash generated from/(used in) financing activities2,000  (100) (15)Effect of exchange rate on cash, cash equivalents and restricted cash62  (7,382) (1,088)Net decrease in cash, cash equivalents and restricted cash(67,138) (61,980) (9,135)Cash, cash equivalents and restricted cash at the beginning of period522,162  481,088  70,904 Cash, cash equivalents and restricted cash at the end of period455,024  419,108   61,769  


Burning Rock Biotech Limited
Reconciliations of GAAP and Non-GAAP Results
   For the three months ended June 30,September 30, December 31, March 31,June 30, 2025
2025
2025
2026
2026
  (RMB in thousands) Gross profit:     Central laboratory channel35,937 30,126 39,322 28,761 31,510 In-hospital channel46,490 37,925 38,388 38,458 51,760 Pharma research and development channel25,676 30,793 20,856 10,789 14,543 Total gross profit108,103 98,844 98,566 78,008 97,813 Add: depreciation and amortization:     Central laboratory channel456 231 490 412 548 In-hospital channel389 372 308 228 297 Pharma research and development channel1,528 1,491 2,057 1,885 1,425 Total depreciation and amortization included in cost of revenues2,373 2,094 2,855 2,525  2,270  Non-GAAP gross profit:     Central laboratory channel36,393 30,357 39,812 29,173 32,058 In-hospital channel46,879 38,297 38,696 38,686 52,057 Pharma research and development channel27,204 32,284 22,913 12,674 15,968 Total non-GAAP gross profit110,476 100,938 101,421 80,533  100,083  Non-GAAP gross margin:     Central laboratory channel89.1%82.5%90.4%90.0%87.2%In-hospital channel75.0%72.5%75.9%73.3%77.5%Pharma research and development channel60.2%76.9%73.2%55.7%51.8%Total non-GAAP gross margin74.4%76.7%80.3%74.6%74.3%



Risks

  • Uncertainties in regulatory approval timelines under China’s CMDE Priority and Special Review procedures could delay commercialization and revenue recognition.
  • Declining pharma R&D service revenue points to potential volatility in customer demand from pharmaceutical companies, affecting business stability.
  • Exchange rate fluctuations and increased allowance for credit losses may adversely impact financial results, reflecting market and credit risk exposures relevant to foreign investors and financial markets.

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