GRAIL Revenue Rises 26% as Test Volume Outpaces Pricing
GRAIL reported second-quarter revenue of $44.7 million, up 26% from a year earlier, even as Galleri test volume grew faster than sales, signaling pressure on per-test pricing.
GRAIL (GRAL) reported second-quarter revenue of $44.7 million, up 26% from $35.5 million a year earlier, as the cancer-detection test maker sold more Galleri screenings but at a slower growth rate than volume itself climbed.
Galleri test volume rose 35% year over year to more than 61,000 tests in the quarter, outpacing the 24% growth in Galleri test revenue to $42.6 million. The gap widened over the first half of the year: test volume grew 42% to more than 117,000 tests while first-half revenue rose 30% to $82.5 million. The company has not disclosed pricing, but the growing spread between volume and revenue growth points to per-test price or mix pressure as GRAIL scales the multi-cancer early detection test.
The net loss narrowed 3% to $110.2 million from $114.0 million a year earlier, while gross loss improved 29% to $12.6 million from $17.8 million. Non-GAAP adjusted gross profit rose 34% to $21.6 million from $16.1 million, evidence that unit economics on the test itself continued to improve even as headline revenue growth moderated relative to volume.
That improvement did not carry through to the bottom line. Adjusted EBITDA loss widened 15% to $90.3 million from $78.3 million, as operating expense growth outran revenue. General and administrative expense rose 34% to $50.7 million from $37.9 million, and sales and marketing spending rose 32% to $37.7 million from $28.5 million, both growing faster than the 26% revenue increase and driving the wider adjusted EBITDA loss.
GRAIL recorded a $25.4 million impairment charge in the quarter tied to a deferred asset connected to its stock purchase agreement with Samsung, compared with a $28.0 million in-process research and development impairment a year earlier.
The company closed a $110 million equity financing with Samsung C&T and Samsung Electronics in June, converting a binding letter of intent announced October 16, 2023 into a completed purchase of common stock. The partnership is intended to support commercialization of Galleri in South Korea, with potential expansion into Japan and Singapore. Common shares outstanding rose to 44.67 million as of June 30 from 40.33 million at the end of 2023, reflecting dilution from the Samsung raise and other issuances.
Cash, cash equivalents and short-term marketable securities totaled $861.6 million at quarter-end, down from $904.4 million at the end of 2023, indicating that cash burn continued to outpace the proceeds from the Samsung transaction.