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Grail Inc (GRAL)
:GRAL
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GRAIL Inc
(NASDAQ:GRAL)
Rating:59Neutral
Price Target:
$34.00
▲(3.69% Upside)
Positive Factors
Market Performance
GRAL's shares have appreciated over 80% year-to-date, indicating strong market performance and investor interest.
Revenue Growth
The company posted 24% annual growth in Galleri (MCED test) revenue and improvements in cost of goods sold per test.
Strategic Partnerships
New partnerships have been announced, including with DGX to integrate Galleri ordering with Quest Diagnostics Connectivity System.
Negative Factors
Cash Management
The company burned nearly $90 million in cash during 1Q25, which was slightly higher than the analyst's estimate.
Regulatory Risks
There are inherent risks associated with novel technologies from a regulatory and reimbursement pathway perspective.
Technology Adoption
The adoption of GRAL's technology depends heavily on the NHS-Galleri readout and FDA approval, which are several years away.
GRAIL Inc (GRAL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.18B
Dividend YieldN/A
Average Volume (3M)854.83K
Price to Earnings (P/E)―
Beta (1Y)2.68
Revenue Growth22.37%
EPS Growth86.08%
CountryUS
Employees1,000
SectorGeneral
Sector StrengthN/A
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-3.18
Shares Outstanding36,047,800
10 Day Avg. Volume611,789
30 Day Avg. Volume854,826
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue9.94
Enterprise Value/Gross Profit-31.40
Enterprise Value/Ebitda-2.42
Forecast
1Y Price Target
$40.50Price Target Upside23.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
GRAIL Inc Business Overview & Revenue Model
Company DescriptionGRAIL Inc (GRAL) is a biotechnology company focused on early cancer detection. The company operates within the healthcare sector, specializing in blood-based diagnostic tests. Its core product, Galleri, is a multi-cancer early detection test that can identify multiple types of cancer through a simple blood draw, aiming to detect cancer early when it can be more effectively treated.
How the Company Makes MoneyGRAIL Inc generates revenue primarily through the sale of its Galleri test to healthcare providers, health systems, and directly to consumers. The company partners with medical institutions and insurance companies to integrate its testing into routine healthcare practices. Revenue streams also include collaborations and partnerships with research organizations and pharmaceutical companies to advance the understanding and application of early cancer detection technologies. Strategic partnerships and insurance coverage agreements are significant factors contributing to its earnings by expanding market access and adoption of its testing services.
GRAIL Inc Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Positive
The earnings call presented a mix of positive developments in commercial growth, clinical trial results, and financial management, alongside operational challenges and high net loss. The positive aspects, including strong revenue growth and clinical trial outcomes, slightly outweigh the lowlights, indicating a cautiously optimistic outlook.Q2-2025 Updates
Positive Updates
Strong Commercial Growth
Galleri test orders grew significantly with more than 45,000 commercial tests sold in Q2, contributing to over 370,000 tests prescribed since its launch in 2021.
Positive Clinical Trial Results
PATHFINDER 2 study showed substantially greater additional cancer detection and a higher positive predictive value compared to the first PATHFINDER study.
Revenue Growth
GRAIL reported Q2 revenue of $35.5 million, an 11% increase from the same period in 2024, with U.S. Galleri revenue up 21%.
Partnership Expansion
GRAIL established new partnerships, including with Rush University System for Health and Everlywell, to expand the availability of Galleri.
Improved Financials
Net loss improved by 93% compared to Q2 2024, with cash burn guidance updated to no more than $310 million for 2025, down from previously projected numbers.
Negative Updates
Operational Challenges
The company faced increased turnaround times and higher reprocessing costs for a small proportion of samples due to the new Galleri version's complexity.
High Net Loss
Despite improvements, GRAIL reported a net loss of $114 million for Q2, including impairments and stock-based compensation costs.
Cost of Screening Revenue
Decreased as a percent of revenue due to a 6% decrease in ASP and additional sample reprocessing costs.
Company Guidance
During GRAIL's second quarter 2025 earnings call, the company highlighted several key performance metrics and financial results. GRAIL reported second-quarter revenue of $35.5 million, an 11% increase from the previous year, with screening revenue accounting for $34.4 million. The company sold over 45,000 Galleri tests in the quarter, contributing to a total of more than 370,000 tests prescribed by over 15,000 healthcare providers since the product's commercial launch in 2021. Galleri's positive predictive value (PPV) was notably higher in the PATHFINDER 2 study compared to the first PATHFINDER study, with a specificity of 99.5% and a cancer signal origin accuracy of 88%. Additionally, GRAIL's cash position was $606.1 million, and it revised its full-year cash burn guidance to no more than $310 million, a decrease of more than 40% compared to 2024. The company also plans to submit detailed PATHFINDER 2 study results for presentation at the ESMO Congress 2025 in October.GRAIL Inc Financial Statement Overview
Summary
GRAIL Inc. shows robust revenue growth but faces significant profitability challenges. The company has a strong equity base and low leverage, but sustained losses impact return metrics. Cash flow remains a concern, with negative free cash flow highlighting ongoing operational cash requirements.Income Statement
GRAIL Inc. has shown substantial revenue growth with a 34.89% increase from 2023 to 2024. However, the company continues to operate at a loss with a negative gross profit margin of -62.12% and a net profit margin of -161.42% in 2024. The EBIT and EBITDA margins are also negative, indicating ongoing operational challenges.58
Neutral
Balance Sheet
GRAIL Inc. maintains a strong equity position with an equity ratio of 83.92%. The debt-to-equity ratio is low at 0.03, signifying limited leverage. However, the return on equity is negative due to ongoing losses. The company's high stockholders' equity relative to total assets suggests financial stability but profitability remains a concern.72
Positive
Cash Flow
The operating cash flow to net income ratio is 0.28, indicating cash flow challenges. Free cash flow has improved slightly, but remains negative at -$582.36 million. The company raised $1.24 billion in financing activities, aiding liquidity but highlighting reliance on external funding.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 130.71M | 125.59M | 93.11M | 55.55M | 0.00 | 0.00 |
| Gross Profit | -41.40M | -78.02M | -95.61M | -116.45M | 0.00 | -10.31M |
| EBITDA | -537.10M | -610.17M | -1.35B | -587.70M | -308.73M | -243.14M |
| Net Income | -1.91B | -2.03B | -1.47B | -5.40B | -312.16M | -244.85M |
Balance Sheet | ||||||
| Total Assets | 2.85B | 2.98B | 3.91B | 5.60B | 706.30M | 635.52M |
| Cash, Cash Equivalents and Short-Term Investments | 674.58M | 763.47M | 97.29M | 241.60M | 583.48M | 544.34M |
| Total Debt | 64.32M | 68.14M | 84.41M | 96.01M | 62.99M | 42.04M |
| Total Liabilities | 433.94M | 479.90M | 267.63M | 955.94M | 144.46M | 84.99M |
| Stockholders Equity | 2.41B | 2.50B | 3.65B | 4.65B | 561.84M | 550.53M |
Cash Flow | ||||||
| Free Cash Flow | -467.60M | -582.36M | -608.69M | -584.17M | -243.91M | -249.13M |
| Operating Cash Flow | -464.88M | -577.16M | -595.80M | -561.31M | -232.00M | -245.79M |
| Investing Cash Flow | -533.85M | -551.01M | -12.89M | -22.86M | -12.79M | 133.04M |
| Financing Cash Flow | 932.30M | 1.24B | 463.77M | 604.82M | 275.11M | 160.33M |
GRAIL Inc Technical Analysis
Negative
32.79
Price Trends
37.99
Negative
36.93
Negative
31.57
Positive
Market Momentum
-0.97
Negative
43.75
Neutral
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRAL, the sentiment is Negative. The current price of 32.79 is below the 20-day moving average (MA) of 33.10, below the 50-day MA of 37.99, and above the 200-day MA of 31.57, indicating a neutral trend. The MACD of -0.97 indicates Negative momentum. The RSI at 43.75 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GRAL.
GRAIL Inc Risk Analysis
GRAIL Inc disclosed 74 risk factors in its most recent earnings report. GRAIL Inc reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GRAIL Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $10.07B | 27.22 | 10.81% | 2.70% | 5.15% | 412.41% | |
70 Neutral | $20.31B | 21.72 | 13.65% | 1.71% | 12.58% | 13.00% | |
70 Neutral | $23.09B | ― | -24.32% | ― | 44.38% | 22.87% | |
59 Neutral | $1.18B | ― | -17.68% | ― | 22.37% | 86.08% | |
57 Neutral | $8.41B | ― | -4584.47% | ― | 28.74% | 18.25% | |
55 Neutral | $6.43B | -2.52 | -4.30% | 5.96% | 15.30% | 11.62% | |
47 Neutral | $74.24M | ― | 138.92% | ― | 35.10% | 39.15% |
* General Sector Average
Performance Comparison
GRAL
GRAIL Inc
32.79
19.53
147.29%
QGEN
Qiagen
46.50
2.46
5.59%
DGX
Quest Diagnostics
181.64
27.66
17.96%
VNRX
VolitionRX
0.69
-0.02
-2.82%
NTRA
Natera
168.25
54.27
47.61%
GH
Guardant Health
67.42
42.85
174.40%
GRAIL Inc Corporate Events
Executive/Board ChangesShareholder Meetings
GRAIL Inc Holds Annual Stockholders Meeting
Neutral
May 30, 2025
On May 29, 2025, GRAIL, Inc. held its Annual Meeting of Stockholders with a quorum of 29,682,974 shares represented. During the meeting, stockholders elected William Chase as a Class I Director to serve until 2028 and ratified Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.