GRAIL (NASDAQ:GRAL) Releases Earnings Results, Beats Estimates By $0.24 EPS

Key Points

• GRAIL reported a quarterly loss of $2.21 per share, beating estimates by $0.24, but revenue of $37.53 million fell short of analysts’ $44.21 million forecast.
• Galleri received a favorable FDA advisory committee vote, and GRAIL expects an FDA decision by early Q1 2027. The company cited promising cancer-detection results, though its NHS-Galleri trial did not reduce the combined incidence of stage 3 and 4 cancers.
• Test volume rose 24% year over year, but lower selling prices limited revenue growth to 4%; margins weakened and GRAIL lowered its full-year Galleri sales growth outlook to 17%–21%. It ended the quarter with $788.7 million in cash and expects its runway to extend into 2029.

GRAIL (NASDAQ:GRAL - Get Free Report) released its quarterly earnings results on Wednesday. The company reported ($2.21) EPS for the quarter, topping the consensus estimate of ($2.45) by $0.24, FiscalAI reports. GRAIL had a negative return on equity of 15.88% and a negative net margin of 236.95%. The business had revenue of $37.53 million during the quarter, compared to analysts' expectations of $44.21 million.

Here are the key takeaways from GRAIL's conference call:

• Galleri received a favorable FDA advisory committee vote, with GRAIL expecting an FDA decision by early Q1 2027. The company said discussions with the FDA are active, including label negotiations, but no decision date has been provided.
• GRAIL highlighted clinical results showing Galleri detected 4–6.5 times more cancers when added to standard screening, with nearly half of detected cancers at stages 1 or 2; it also reported a 20% reduction in stage 4 diagnoses for a prespecified group of 12 cancers. However, the NHS-Galleri trial did not show a reduction in the combined incidence of stage 3 and 4 cancers.
• Test volume rose 24% year over year in Q3 and 36% in the first nine months, with the company citing provider activation and reactivation. GRAIL is expanding sales, health-system integrations and marketing, while using promotional pricing to encourage demand ahead of a potential FDA decision.
• Q3 revenue increased just 4% to $37.5 million despite 24% volume growth, as lower average selling prices weighed on results. Adjusted gross margin fell to 42% from 55%, adjusted EBITDA loss widened 29%, and GRAIL lowered full-year Galleri sales revenue growth guidance to 17%–21%; the Illumina royalty is also expected to resume in late December.
• GRAIL ended the quarter with $788.7 million in cash and said its cash position provides runway into 2029; its 2026 cash-burn guidance of no more than $300 million was unchanged.

GRAIL Trading Up 3.0%

Shares of GRAL traded up $4.22 during mid-day trading on Wednesday, hitting $143.66. The company's stock had a trading volume of 755,261 shares, compared to its average volume of 974,166. The firm has a 50-day simple moving average of $115.58 and a 200 day simple moving average of $79.12. The firm has a market capitalization of $6.42 billion, a P/E ratio of -14.73 and a beta of 2.86. GRAIL has a 1-year low of $41.50 and a 1-year high of $166.48.

Insider Activity at GRAIL

In other GRAIL news, CEO Joshua J. Ofman sold 20,000 shares of the stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $136.85, for a total value of $2,737,000.00. Following the completion of the transaction, the chief executive officer owned 342,271 shares in the company, valued at approximately $46,839,786.35. This represents a 5.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Aaron Freidin sold 23,619 shares of the firm's stock in a transaction on Monday, October 5th. The shares were sold at an average price of $146.39, for a total value of $3,457,585.41. Following the completion of the sale, the chief financial officer directly owned 225,364 shares of the company's stock, valued at approximately $32,991,035.96. This trade represents a 9.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 129,944 shares of company stock worth $14,832,805 over the last three months. 1.83% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on GRAL. TD Cowen lifted their price objective on shares of GRAIL from $88.00 to $180.00 and gave the company a "buy" rating in a research report on Tuesday, October 13th. Wall Street Zen upgraded shares of GRAIL from a "sell" rating to a "hold" rating in a research report on Sunday, September 13th. UBS Group upped their price objective on shares of GRAIL from $105.00 to $175.00 and gave the stock a "buy" rating in a research report on Friday, October 2nd. Canaccord Genuity Group raised their target price on shares of GRAIL from $80.00 to $150.00 and gave the stock a "buy" rating in a research note on Monday, September 28th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of GRAIL in a report on Thursday, October 15th. Five analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $119.80.

About GRAIL

GRAIL, Inc NASDAQ: GRAL is a healthcare company focused on developing blood-based screening technologies for the early detection of cancer. Its principal product is Galleri, a multi-cancer early detection test designed to identify DNA patterns associated with multiple types of cancer from a single blood sample.

Galleri is intended for use alongside recommended cancer screenings and is available by prescription through qualified healthcare providers in the United States. The test is offered as a laboratory-developed test and has not been approved or cleared by the U.S.

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