--- title: "GRAIL | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 40.79 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285658969.md" datetime: "2026-05-08T03:37:55.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285658969.md) - [en](https://longbridge.com/en/news/285658969.md) - [zh-HK](https://longbridge.com/zh-HK/news/285658969.md) --- # GRAIL | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 40.79 M Revenue: As of FY2026 Q1, the actual value is USD 40.79 M, beating the estimate of USD 39.15 M. EPS: As of FY2026 Q1, the actual value is USD -2.29, beating the estimate of USD -2.8767. EBIT: As of FY2026 Q1, the actual value is USD -143.75 M. GRAIL, Inc. operates as a single reportable operating segment, with its Chief Operating Decision Maker (CODM) reviewing financial information on an aggregate basis. #### Revenue Total Revenue for the three months ended March 31, 2026, was $40,785 thousand, an increase from $31,837 thousand for the same period in 2025. Screening Revenue increased by $10,699 thousand, or 37%, to $39,832 thousand for the three months ended March 31, 2026, compared to $29,133 thousand in 2025. This increase was primarily driven by a 50% rise in Galleri sales volume, partially offset by a 9% decrease in Average Selling Price (ASP). Development Services Revenue decreased by -$1,751 thousand, or -65%, to $953 thousand for the three months ended March 31, 2026, from $2,704 thousand in 2025. This decline was mainly due to a $1.4 million decrease in revenue from pilots with biopharmaceutical partners and a $0.4 million decrease from clinical development and research services. #### Costs and Operating Expenses Total Costs and Operating Expenses were $176,550 thousand for the three months ended March 31, 2026, down from $185,444 thousand in the prior year period. Cost of Screening Revenue (exclusive of amortization of intangible assets) increased by $4,121 thousand, or 24%, to $21,244 thousand for the three months ended March 31, 2026, compared to $17,123 thousand in 2025. This was mainly due to a 50% increase in Galleri sales volume, partially offset by improved fixed cost leverage and reduced sample reprocessing costs. As a percentage of revenue, it decreased by 5%. Cost of Development Services Revenue decreased by -$795 thousand, or -68%, to $376 thousand for the three months ended March 31, 2026, from $1,171 thousand in 2025. This was primarily due to fewer pilots with biopharmaceutical partners and a decrease in research samples processed. Cost of Revenue — Amortization of Intangible Assets remained constant at $33,472 thousand for both periods. Research and Development Expenses decreased by -$5,604 thousand, or -10%, to $48,021 thousand for the three months ended March 31, 2026, from $53,625 thousand in 2025. This was primarily due to a $2.8 million reduction in compensation expenses, a $2.4 million reduction in laboratory supplies and research collaboration expenses, and a $1.0 million decrease in allocated information technology expenses, partially offset by a $0.7 million increase in stock-based compensation expense. Sales and Marketing Expenses decreased by -$4,311 thousand, or -12%, to $30,668 thousand for the three months ended March 31, 2026, from $34,979 thousand in 2025. This was mainly attributable to a $3.7 million decrease in non-recurring marketing event expenses and a $0.7 million decrease in compensation expenses. General and Administrative Expenses decreased by -$2,305 thousand, or -5%, to $42,769 thousand for the three months ended March 31, 2026, from $45,074 thousand in 2025. This was primarily due to a $3.5 million decrease in legal and professional services expenses and a $1.4 million decrease in contractor and temporary labor costs, partially offset by a $2.3 million increase in compensation expenses. #### Other Income and Net Loss Loss from Operations improved to -$135,765 thousand for the three months ended March 31, 2026, from -$153,607 thousand in 2025. Interest Income increased by $207 thousand, or 3%, to $7,986 thousand for the three months ended March 31, 2026, from $7,779 thousand in 2025, mainly due to a $147.7 million increase in average balances of money market funds and short-term marketable securities. Other Income (Expense), Net was $256 thousand for the three months ended March 31, 2026, compared to -$584 thousand in 2025. Benefit from Income Taxes decreased by -$5,863 thousand, or -15%, to $34,336 thousand for the three months ended March 31, 2026, from $40,199 thousand in 2025. This decrease was primarily driven by a reduction in loss before taxes and a lower effective tax rate due to fewer discrete tax items related to stock-based compensation expenses. Net Loss improved to -$93,187 thousand for the three months ended March 31, 2026, from -$106,213 thousand in 2025. #### Non-GAAP Financial Measures Adjusted Gross Profit was $19,698 thousand for the three months ended March 31, 2026, compared to $14,305 thousand in 2025. Adjusted EBITDA was -$79,922 thousand for the three months ended March 31, 2026, an improvement from -$98,735 thousand in 2025. #### Cash Flow Net Cash Used in Operating Activities decreased to -$86,989 thousand for the three months ended March 31, 2026, from -$95,012 thousand in 2025. This improvement was primarily due to increased revenue collections and lower operating expenses, reflecting cost optimization efforts and reduced headcount. Net Cash (Used in) Provided by Investing Activities was -$93,438 thousand for the three months ended March 31, 2026, compared to $14,611 thousand provided in 2025, primarily related to purchases and maturities of marketable securities. Net Decrease in Cash, Cash Equivalents, and Restricted Cash was -$180,383 thousand for the three months ended March 31, 2026, compared to -$80,339 thousand in 2025. #### Balance Sheet and Liquidity As of March 31, 2026, GRAIL, Inc. had cash and cash equivalents of $69,344 thousand and short-term marketable securities of $753,761 thousand. The company believes its existing cash, cash equivalents, and short-term marketable securities will be sufficient to meet working capital and capital expenditure needs into 2030. GRAIL, Inc. expects to continue incurring operating losses for at least the next several years due to investments in research and development and commercialization, and additional financing may be required in the future. #### Operational Metrics GRAIL, Inc. sold over 530,000 commercial Galleri tests through March 31, 2026, with over 56,000 sold during the three months ended March 31, 2026. The company has established a network of approximately 19,000 prescribers across the United States in a pre-reimbursement setting. #### Outlook and Strategy GRAIL, Inc. is pursuing FDA approval for Galleri, with the last module of its Pre-Market Approval (PMA) application submitted in January 2026, which could unlock broader coverage from large commercial payors. If FDA approval is obtained, the company expects to pursue coverage through a new law creating a Medicare benefit category for FDA-approved multi-cancer early detection (MCED) tests, with potential coverage as early as January 1, 2029. The company also aims for inclusion in USPSTF guideline recommendations, which would further increase adoption. Internationally, GRAIL, Inc. expects to launch Galleri in the United Kingdom following a positive NHS evaluation of NHS-Galleri Trial results and is evaluating expansion opportunities in other geographies, including a proposed expansion in South Korea through a partnership with Samsung. Research and development expenses are expected to decrease over the next three years as the company focuses on its core MCED business, progresses large clinical trials into the data follow-up phase, and substantially concludes automated platform development. Sales and marketing expenses are expected to increase following positive study results to drive awareness and demand for Galleri, while General and Administrative expenses are expected to increase to support public company operations and commercialization. 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