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Investing.com -- GRAIL, Inc. (NASDAQ:GRAL) reported better-than-expected first-quarter results on Monday, but shares fell 16.6% as the company continued to post significant losses despite revenue growth.
The healthcare company, focused on early cancer detection, reported a Q1 loss of $3.10 per share, beating analyst estimates of a $4.26 loss. Revenue for the quarter came in at $31.8 million, up 19% YoY, driven by a 22% increase in U.S. Galleri revenue to $28.7 million.
Despite the revenue growth and narrower-than-expected loss, GRAIL still reported a substantial net loss of $106.2 million for the quarter. This loss, while an improvement from the previous year, appears to have disappointed investors, leading to the sharp stock decline.
Bob Ragusa, Chief Executive Officer at GRAIL, commented on the results: "We are pleased with the continued U.S. commercial growth of Galleri, with more than 37,000 Galleri tests completed in the first quarter of 2025, as well as recent steps to streamline the test ordering process and increase test access."
The company highlighted positive top-line results from the prevalent screening round of its NHS-Galleri trial, reporting a higher positive predictive value than observed in previous studies. GRAIL plans to submit data from this trial as part of its premarket approval application in the first half of 2026.
GRAIL ended the quarter with a cash position of $677.9 million, which the company states provides runway into 2028. However, the ongoing losses and the timeline for potential regulatory approval appear to be weighing on investor sentiment.
The company’s focus remains on developing the market for multi-cancer early detection, advancing its Galleri test, and improving cost efficiency. While GRAIL continues to make progress in these areas, the market reaction suggests investors are looking for a clearer path to profitability.
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