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GRAIL reported second-quarter revenue of $44.7 million, above the consensus estimate of $42.7 million. Its adjusted loss per share of −$2.56 was narrower than the consensus loss estimate of −$2.91.
Revenue rose from $35.5 million a year earlier. GRAIL attributed the increase in screening revenue to higher Galleri sales volume, partly offset by a lower average selling price. The company said volume benefited from expanded partnerships, pricing strategies, electronic ordering integrations and enrollment in its clinical study.
GRAIL reported a gross margin of −28.1%, compared with −50.0% a year earlier, and an operating margin of −388.9%, compared with −446.9%. CFO Aaron Freidin said higher volumes improved fixed-cost leverage and sample reprocessing costs fell, partly offset by the lower average selling price.
The company reported diluted loss per share of −$2.56, compared with −$3.18 a year earlier. Free cash flow was −$81.2 million, compared with −$77.3 million. Freidin said GRAIL ended the quarter with $861.6 million in cash, including Samsung’s $110 million investment.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $44.7 million | $35.5 million | 25.7% |
| Diluted EPS | −$2.56 | −$3.18 | — |
| Gross margin | −28.1% | −50.0% | 21.9 percentage points |
| Operating margin | −388.9% | −446.9% | 58.0 percentage points |
| Free cash flow | −$81.2 million | −$77.3 million | — |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | −$2.56 | −$2.91 | Beat by 12.0% |
| Revenue | $44.7 million | $42.7 million | Beat by 4.78% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
CEO Joshua Ofman said GRAIL sold over 61,000 Galleri tests in the second quarter, a 35% increase from a year earlier. He said self-pay customers accounted for about 70% of sales, and electronic ordering integrations were bringing in new prescribers and increasing prescribing by existing users.
Asked about competition and pricing, Chief Growth Officer Andrew Partridge said the quarter’s average selling price decline reflected increased digital health volume and planned lower employer pricing. He said the employer pricing came with partnership commitments, including marketing and blood-draw events. Partridge also said competing tests had created customer confusion and that GRAIL’s sales team was following up with clinical data.
Ofman said the expansion of field sales and medical teams was substantially complete at quarter-end. He said the teams had been trained to discuss the PATHFINDER 2 and NHS-Galleri study results with customers. He also said the NHS-Galleri trial did not meet its primary endpoint of a combined reduction in Stage III and IV cancers.
CFO Aaron Freidin attributed the improvement in adjusted gross margin to fixed-cost leverage from higher volumes and lower sample reprocessing costs, partly offset by lower pricing. Ofman said GRAIL had completed its $110 million financing with Samsung and begun a collaboration to commercialize Galleri in South Korea, with potential expansion into other Asian markets.
Analysts also asked about the regulatory timetable and the effect of a royalty. Ofman said GRAIL continued to anticipate an FDA advisory committee and potential approval in the first part of 2027. He said the royalty would begin toward the end of Q4 and expected its impact on that quarter to be minimal.
Guidance
Ofman said GRAIL’s expectation for potential FDA approval in the first part of 2027 remained unchanged. In its filing, GRAIL said it expects research and development expenses to decrease over the next three years as several clinical trials move to long-term follow-up.