Grail 2025 Q3 Earnings 29.2% Net Loss Reduction Amid 26.3% Revenue Growth

Grail (GRAL) reported Q3 2025 earnings that beat expectations, with revenue rising 26.3% to $36.19 million and net losses narrowing by 29.2%. The company raised guidance for U.S. Galleri revenue growth to ~25% and reduced full-year cash burn to $290 million. Shares surged 6.01% post-earnings, reflecting optimism over clinical progress and strategic partnerships.

Revenue

Grail’s total revenue surged 26.3% year-over-year to $36.19 million in Q3 2025, driven by robust demand for its Galleri multi-cancer detection platform. Screening revenue accounted for the majority at $32.81 million, while development services added $3.39 million. The company achieved cost efficiencies, with no amortization of intangible assets reported, contributing to an improved non-GAAP adjusted gross margin of 55%.

Earnings/Net Income

Grail narrowed its net loss to $88.98 million in Q3 2025, a 29.2% improvement from $125.69 million in the prior-year period. Earnings per share (EPS) improved to -$2.46 from -$3.94, a 37.6% reduction in per-share losses. This progress reflects disciplined cost management and scalable automation of its platform.

Post-Earnings Price Action Review

The strategy of buying GRAL shares following a revenue beat and holding for 30 days has shown favorable performance. Grail’s 26.4% year-over-year revenue growth to $36.2 million, exceeding estimates by $0.8 million, triggered a positive market response. The stock surged 6.01% post-earnings, while Guggenheim Securities upgraded it to Buy with a $100 price target. Strategic partnerships, including Samsung’s $110 million investment for Asian expansion, and advancements in clinical validation, such as PATHFINDER 2 study results, bolster growth prospects. Improved gross margins and a cash runway extending into 2030 further strengthen the case for holding shares. Historical price behavior suggests potential appreciation over 30 days, though investors should monitor regulatory developments and competitive dynamics.

CEO Commentary

CEO Robert Ragusa highlighted 39% growth in Galleri volumes and 29% revenue growth, driven by adoption across 16,000 healthcare providers. Strategic collaborations, including Samsung’s $110 million equity investment and Galleri’s launch in Canada via Medcan, are pivotal for global expansion. The company aims to submit a PMA to the FDA in Q1 2026 and anticipates mid-2026 results from the NHS Galleri trial. Cost discipline reduced full-year cash burn to $290 million, extending financial flexibility.

Guidance

Grail guided for U.S. Galleri revenue growth of ~25% in 2025 (midpoint of its 20-30% range) and full-year cash burn of $290 million. The company plans a Q1 2026 FDA PMA submission and expects mid-2026 clinical data from the NHS Galleri trial. Non-GAAP adjusted gross margin reached 55%, reflecting operational efficiency.

Additional News

Samsung’s $110 million equity investment and distribution agreement for Galleri in Asia, announced October 16, 2025, underscores Grail’s international expansion. Guggenheim Securities upgraded GRAL to Buy in November, citing PATHFINDER 2 study data and potential NHS Galleri trial results. Separately, Hims & Hers invested $325 million in Grail via a private placement, aiming to integrate advanced diagnostics into consumer health platforms. These developments highlight Grail’s strategic momentum despite ongoing challenges in Medicare reimbursement and regulatory approvals.