Shares of Burning Rock Biotech Limited (NASDAQ: BNR) plunged 8.73% in Tuesday's pre-market trading session after the precision oncology company reported widened losses for the fourth quarter of 2024, despite a slight increase in revenue.

The China-based company, which focuses on next-generation sequencing (NGS) technology for cancer detection and treatment selection, announced that its net loss for Q4 2024 expanded to RMB81.3 million ($11.1 million), compared to a loss of RMB162.2 million in the same period last year. This came even as quarterly revenues rose 4.1% year-over-year to RMB126.0 million ($17.3 million).

While Burning Rock saw growth in its in-hospital and pharma research segments, its central laboratory business continued to decline as the company transitions towards in-hospital testing. The widened loss, despite cost-cutting measures and improved gross margins, appears to have disappointed investors, leading to the sharp stock decline. The company's cash position also decreased to RMB522.2 million ($71.5 million) at the end of 2024, down from RMB615.1 million a year earlier, raising concerns about its financial runway.