Grail 2025 Q1 Earnings Misses Targets as Net Loss Improves 51%

Grail (GRAL) reported its fiscal 2025 Q1 earnings on May 13th, 2025. Grail’s revenue fell short of market expectations, yet guidance remains in line with prior forecasts. The company anticipates continued growth driven by its Galleri test. Despite missing revenue targets, Grail reported a substantial improvement in net loss year-over-year. The company remains committed to advancing its multi-cancer early detection technology and expanding market presence through strategic partnerships.

Revenue
The total revenue for Grail in Q1 of 2025 reached $31.84 million, marking a 19.1% increase from the previous year's first quarter. This growth was primarily driven by screening revenue, which surged to $29.13 million. Additionally, development services contributed $2.70 million to the total revenue, reflecting steady growth in Grail's business segments.

Earnings/Net Income
Grail narrowed its losses, reporting a loss of $3.10 per share in Q1 2025, a significant improvement from the $7.05 per share loss in Q1 2024. The company also reduced its net loss to $106.21 million, improving by 51.5% compared to the prior year's loss of $218.91 million. Despite ongoing challenges, Grail's EPS shows positive progression.

Post-Earnings Price Action Review
Grail’s stock has shown a strong positive response in the market, with a notable increase in share price following the recent earnings report. The strategy of buying GRAL shares when revenue misses expectations and holding them for 30 days has proven effective, yielding a 20.4% gain compared to the SPY ETF over the same period. This suggests a favorable market reaction to Grail’s earnings outcome, reflecting investor confidence in the company’s potential for positive momentum reversals despite earnings misses.

CEO Commentary
Bob Ragusa, CEO of Grail, expressed optimism about the company's progress towards achieving population-scale multi-cancer early detection, emphasizing the successful rollout of the Galleri test and its strong performance in clinical trials. He highlighted that over 37,000 Galleri tests were sold in Q1 2025, with a total of more than 325,000 tests prescribed since the product's launch. Ragusa noted the strategic partnership with Athena Health to streamline the ordering process and the expansion into international markets as key growth drivers. He reaffirmed their commitment to disciplined cost management while investing in technology enhancements to support scalability and reduce costs over time.

Guidance
GRAIL anticipates revenue growth of 20% to 30% for US Galleri in 2025, with first-quarter revenue reported at $31.8 million. The company expects cash burn for the full year to be no more than $320 million, representing a decrease of over 40% compared to 2024. Ragusa indicated that major clinical and regulatory milestones are expected in 2026, including the completion of the modular PMA submission to the FDA and final results from the NHS Galleri study.

Additional News
Grail Inc. has recently announced strategic partnerships aimed at enhancing its market presence and operational capabilities. The company has teamed up with Athena Health to integrate Galleri test ordering into their electronic health record platform, streamlining the process for healthcare providers. Additionally, Grail has launched an educational initiative called Generation Possible, in partnership with actress Kate Walsh, to raise awareness of multi-cancer early detection testing. This initiative aims to educate the public about the benefits of early cancer detection and increase accessibility to Grail’s innovative testing solutions. These partnerships reflect Grail's commitment to expanding its reach and improving access to its groundbreaking technology.