Core Viewpoint - Premarket trading is showing notable activity with significant price movements indicating potential investment opportunities before the market opens [1] Premarket Gainers - AGM Group Holdings Inc. (AGMH) increased by 185% to $6.36 [3] - AlphaVest Acquisition Corp (ATMV) rose by 77% to $26.80 [3] - Brera Holdings PLC (BREA) saw a 20% increase to $30.00 [3] - Asset Entities Inc. (ASST) gained 18% to $4.54 [3] - 22nd Century Group, Inc. (XXII) also increased by 18% to $2.08 [3] - Millennium Group International Holdings Limited (MGIH) rose by 16% to $2.84 [3] - Robo.ai Inc. (AIIO) increased by 11% to $2.17 [3] - Butterfly Network, Inc. (BFLY) saw a 10% rise to $2.10 [3] - GrafTech International Ltd. (EAF) increased by 9% to $13.91 [3] - Cardlytics, Inc. (CDLX) rose by 8% to $2.99 [3] Premarket Losers - ECD Automotive Design, Inc. (ECDA) decreased by 14% to $3.70 [4] - Champions Oncology, Inc. (CSBR) fell by 8% to $6.11 [4] - Beam Global (BEEM) saw an 8% decline to $2.79 [4] - Fathom Holdings Inc. (FTHM) decreased by 8% to $2.19 [4] - Ventyx Biosciences, Inc. (VTYX) fell by 7% to $2.20 [4] - SciSparc Ltd. (SPRC) decreased by 6% to $4.35 [4] - Lightwave Logic, Inc. (LWLG) fell by 6% to $3.45 [4] - Jasper Therapeutics, Inc. (JSPR) decreased by 6% to $2.43 [4] - StableX Technologies, Inc. (SBLX) fell by 5% to $5.67 [4] - Galecto, Inc. (GLTO) decreased by 5% to $2.70 [4]

Core Insights - Champions Oncology, Inc. (CSBR) is a significant entity in translational oncology research, focusing on advanced technologies and services to enhance cancer treatment outcomes [1] Financial Performance - For Q1 2026, CSBR reported an earnings per share (EPS) of $0.02, exceeding the estimated EPS of -$0.01, indicating strong performance [2][6] - The company's revenue for the same period was approximately $14 million, surpassing the forecast of $13.5 million, reflecting a robust start to the fiscal year [2][6] Strategic Direction - During the Q1 2026 earnings call, key executives, including CEO Robert Brainin and CFO David Miller, discussed the company's financial performance and strategic direction, attended by notable investors, showcasing confidence in CSBR's future [3] Market Valuation - CSBR has a price-to-earnings (P/E) ratio of approximately 24.28, indicating investor confidence in its earnings potential [4] - The price-to-sales ratio is about 2.57, and the enterprise value to sales ratio is around 2.48, suggesting a favorable market valuation relative to its sales [4] Financial Challenges - The company faces challenges in cash flow generation, evidenced by a negative enterprise value to operating cash flow ratio of -85.29 [5] - CSBR's debt-to-equity ratio is about 1.62, indicating reliance on debt financing, while a current ratio of approximately 0.94 suggests a need for improved short-term financial stability [5] - Despite these challenges, CSBR's earnings yield stands at approximately 4.12%, indicating a reasonable return on investment [5][6]

Core Insights - The earnings call insights are derived from earnings call transcripts and other content available on the Seeking Alpha website, generated by an AI tool without editorial review [1] Group 1 - The insights are intended for informational purposes only and do not account for individual objectives or financial situations [1] - Seeking Alpha does not provide personalized investment advice and is not a licensed securities dealer or investment adviser [1]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $14 million, rebounding from $12.4 million in Q4 of fiscal 2025, indicating a recovery from previous softness [3][7] - Year-over-year revenue comparison appears flat, but the current quarter is viewed as a return to stability and the start of renewed momentum [8] - GAAP loss from operations was $0.5 million compared to income of $1.3 million in the same quarter last year, with adjusted EBITDA slightly positive at $60,000 [8][9] Business Line Data and Key Metrics Changes - Research services contributed $13.7 million to the total revenue, while the data business provided the remaining amount [7] - Gross margin decreased to 43% from 50% year-over-year, primarily due to increased outsourced lab service costs [8][9] - Operating expenses rose to $6 million, with intentional increases in R&D and sales and marketing to support the data business [9] Market Data and Key Metrics Changes - Customer cancellations have decreased, and bookings to revenue conversion has improved, indicating stronger customer relationships [4] - The macro environment remains challenging, but there are signs of improvement in biotech funding and R&D budgets [3][4] Company Strategy and Development Direction - The company aims to drive value opportunities in Corellia and its data business while expanding its core TOS platform [3][4] - The focus is on integrating radiopharmaceutical services to enhance customer offerings and improve gross margins [4][5] - The company is optimistic about the long-term potential of AI and machine learning in drug discovery [5] Management's Comments on Operating Environment and Future Outlook - Management expresses cautious optimism regarding the investment landscape, noting improvements in budget constraints [20][21] - The company anticipates sequential revenue growth and margin expansion as operations improve [11] - There is confidence in the ability to execute and deliver shareholder value, supported by a strong balance sheet and no debt [11] Other Important Information - The company ended Q1 with $10.3 million in cash, up $0.5 million from year-end, and expects to remain cash neutral in Q2 [10][11] - Management emphasizes the importance of investments in R&D and sales and marketing for future growth [9] Q&A Session Summary Question: Changes in data licensing business strategy - Management confirmed no changes in strategy for the data licensing business, with early wins and customer engagement being encouraging [14] Question: Size of the opportunity in the data business - Management stated it is too early to predict the exact size and success of the data opportunity, but there is potential and interest [15] Question: Deal structuring for Corellia - Management is looking for external partners and funding to support Corellia's advancement, with compelling data emerging from the platform [16] Question: Broader investment landscape - Management described the environment as tough but cautiously optimistic about improvements in market conditions [20] Question: Revenue expectations for Q2 - Management anticipates revenue will increase on a quarterly basis but did not provide specific guidance on numbers [27]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $14 million, rebounding from $12.4 million in Q4 of fiscal 2025, indicating a return to growth after a challenging previous quarter [3][7] - Year-over-year revenue comparison appears flat, but the company views this quarter as a stabilization point and the start of renewed momentum [8] - The operating loss for Q1 was $0.5 million compared to an income of $1.3 million in the same quarter last year, with adjusted EBITDA slightly positive at $60,000 [8][10] Business Line Data and Key Metrics Changes - The research services business contributed $13.7 million to the total revenue, while the data business provided the remaining amount [7] - Gross margin decreased to 43% from 50% in Q1 of the previous year, primarily due to increased outsourced lab service costs [8][9] - Operating expenses rose to $6 million, with intentional increases in R&D and sales and marketing to support the data business [9] Market Data and Key Metrics Changes - Customer cancellations have decreased, and bookings to revenue conversion has improved, indicating stronger customer relationships [4] - The macro environment remains challenging, with biotech funding and R&D budgets under pressure, but there are signs of improvement [3][20] Company Strategy and Development Direction - The company is focused on driving value opportunities in Corellia and its data business while expanding its core TOS platform [3][4] - The radiopharmaceutical services platform is being enhanced with new infrastructure and capabilities, aiming to reduce costs and improve gross margins [4] - The company sees significant long-term opportunities in AI and machine learning for drug discovery [5] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improving market conditions, although they do not expect a rapid recovery [20] - The company anticipates sequential revenue growth and margin expansion as they bring more work in-house [11] - There is confidence in the ability to execute and deliver shareholder value, supported by a strong balance sheet and no debt [11] Other Important Information - The company ended Q1 with $10.3 million in cash, up $0.5 million from year-end, and expects to remain cash neutral in Q2 [10][11] - Management is committed to investing in organic growth and capital expenditures tied to expansion [10] Q&A Session Summary Question: Any changes in the strategy on the data licensing business? - Management confirmed there are no changes in strategy, but they see potential and customer engagement in the data licensing business [14] Question: How would you characterize the size of the opportunity in the data business? - Management stated it is still early to predict the exact size and success of the opportunity, but there is potential and interest [15] Question: What frameworks are being considered for structuring deals with Corellia? - Management is looking for external partners and funding to support Corellia's advancement and is encouraged by the compelling data emerging from the platform [16] Question: Can you provide insights on the broader investment landscape? - Management noted it remains a tough environment but sees signs of improvement and feels well-positioned to capitalize on opportunities [20] Question: Will Q2 revenue increase compared to last year? - Management anticipates revenue will increase on a quarterly basis but did not provide specific guidance on numbers [27]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $14 million, rebounding from $12.4 million in Q4, indicating a recovery from previous softness [3][7] - Year-over-year revenue comparison appears flat, but the company views this quarter as a return to stability and the start of renewed momentum [8] - GAAP loss from operations was $0.5 million compared to income of $1.3 million in the same quarter last year, with adjusted EBITDA slightly positive at $60,000 [8][11] Business Line Data and Key Metrics Changes - Research services contributed $13.7 million to revenue, while the data business provided the remainder [7] - Gross margin decreased to 43% from 50% year-over-year, primarily due to increased outsourced lab service costs [8] - Operating expenses rose to $6 million, with intentional increases in R&D and sales and marketing to support the data business [9] Market Data and Key Metrics Changes - Customer cancellations are down, and bookings to revenue conversion has increased, indicating improved customer relationships [4] - The macro environment remains challenging, but there are signs of improvement in biotech funding and R&D budgets [3][20] Company Strategy and Development Direction - The company is focused on driving value opportunities in Corellia and its data business while expanding its TOS platform [3] - The radiopharmaceutical services platform is being enhanced with new infrastructure and capabilities, aiming to reduce costs and improve gross margins [4] - The data platform is gaining momentum, with three consecutive quarters of data sales since the first licensing deal [4] Management Comments on Operating Environment and Future Outlook - Management expresses cautious optimism about improving market conditions, although they do not expect a rapid recovery [20] - The company anticipates sequential revenue growth and margin expansion as they bring more work in-house [11] - There is confidence in the long-term potential of the data business and Corellia, despite current funding challenges in biotech [5][11] Other Important Information - The company ended Q1 with $10.3 million in cash, remaining debt-free, which provides flexibility for future investments [10] - Management plans to continue updating stakeholders on progress in the next earnings call scheduled for mid-December [32] Q&A Session Summary Question: Any changes in the strategy on the data licensing business? - Management confirmed there are no changes to the strategy, emphasizing early wins and potential in the data business [14] Question: How would you characterize the size of the opportunity in the data business? - Management stated it is still early to predict the exact size and success of the opportunity, but there is significant interest [15] Question: What frameworks are being considered for structuring deals with Corellia? - Management indicated they are looking for external partners and funding to support Corellia's advancement [16] Question: Can you provide insights on the broader investment landscape? - Management noted it remains a tough environment but sees signs of improvement and feels well-positioned to capitalize on opportunities [20] Question: Will the stabilization period be more in the first half of the year? - Management believes Q1 may have been the low point for the fiscal year, with expectations for gradual revenue growth [24] Question: Any color on Q2 revenue compared to last year? - Management refrained from providing specific guidance but anticipates revenue will increase on a quarterly basis [28]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $14 million, rebounding from $12.4 million in Q4 of fiscal 2025, indicating a return to growth after a challenging previous quarter [3][8] - Year-over-year revenue comparison appears flat, but the company views this quarter as a stabilization point and the beginning of renewed momentum [8] - The operating loss for Q1 was $0.5 million compared to an income of $1.3 million in the same quarter last year, with adjusted EBITDA slightly positive at $60,000 [9][12] Business Line Data and Key Metrics Changes - The research services business contributed $13.7 million to the total revenue, while the data business provided the remaining amount [8] - Gross margin decreased to 43% from 50% year-over-year, primarily due to increased outsourced lab service costs [9] - Operating expenses rose to $6 million, with intentional increases in R&D and sales and marketing to support the data business [10] Market Data and Key Metrics Changes - Customer cancellations have decreased, and bookings to revenue conversion has improved, indicating stronger customer relationships [4] - The macro environment remains challenging, but there are signs of improvement in biotech funding and R&D budgets [3][21] Company Strategy and Development Direction - The company is focused on expanding its core TOS platform and driving value opportunities in Corellia and its data business [2][3] - The radiopharmaceutical services platform is being enhanced with new infrastructure and capabilities, aiming to reduce costs and improve gross margins [4] - The company sees significant long-term opportunities in AI and machine learning for drug discovery [5] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improving market conditions, although they do not expect a rapid recovery [21] - The company anticipates sequential revenue growth and margin expansion as they bring more work in-house [12] - Management is confident in the ability to execute and deliver value for shareholders, supported by a strong balance sheet and no debt [11][12] Other Important Information - The company ended Q1 with $10.3 million in cash, reflecting a slight increase from the previous year [11] - The management team is committed to maintaining a disciplined approach to cost management while investing in growth [12] Q&A Session Summary Question: Any changes in the strategy on the data licensing business? - Management confirmed there are no changes to the strategy, emphasizing early wins and potential in the data licensing business [14][15] Question: How would you characterize the size of the opportunity in the data business? - Management stated it is still early to predict the exact size and success of the opportunity, but there is significant interest and potential [16] Question: What frameworks are being considered for Corellia? - Management indicated they are looking for external partners and funding to support Corellia's advancement [17] Question: Can you provide insights on the broader investment landscape? - Management described the environment as tough but cautiously optimistic about improving conditions and budget constraints easing [20][21] Question: Will the stabilization period extend into the second half of the year? - Management suggested that Q1 might be the low point for the fiscal year, with expectations for gradual revenue growth [24] Question: Any color on Q2 revenue compared to last year? - Management refrained from providing specific guidance but anticipates revenue will increase on a quarterly basis [28]

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed consolidated financial statements for July 31, 2025, including balance sheets, operations, equity, cash flows, and detailed notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (Dollars in Thousands) | Metric | July 31, 2025 | April 30, 2025 | | :------------------------------------------ | :------------ | :------------- | | Total assets | $30,546 | $32,344 | | Total liabilities | $27,008 | $28,572 | | Total stockholders' equity | $3,538 | $3,772 | | Cash and cash equivalents | $10,325 | $9,785 | | Accounts receivable, net | $9,474 | $11,204 | | Deferred revenue | $14,430 | $15,443 | [Unaudited Condensed Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Unaudited Condensed Consolidated Statements of Operations (Dollars in Thousands, Except Per Share Amounts) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | | Oncology revenue | $13,995 | $14,061 | | Total costs and operating expenses | $14,522 | $12,732 | | (Loss) income from operations | $(527) | $1,329 | | Net (loss) income | $(466) | $1,313 | | Net (loss) income attributable to Company's common shares | $(436) | $1,313 | | Net (loss) income per common share outstanding (basic) | $(0.03) | $0.10 | | Net (loss) income per common share outstanding (diluted) | $(0.03) | $0.09 | - Oncology revenue decreased by **0.5%** year-over-year for the three months ended July 31, 2025[15](index=15&type=chunk) - The company reported a net loss of **$466K** for the three months ended July 31, 2025, compared to a net income of **$1,313K** in the prior year period[15](index=15&type=chunk) [Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficiency)](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity%20%28Deficiency%29) Changes in Stockholders' Equity (Deficiency) (Dollars in Thousands) | Metric | Balance April 30, 2025 | Stock-based compensation | Issuance of common stock on exercise of stock options | Net Loss | Balance July 31, 2025 | | :-------------------------------- | :--------------------- | :----------------------- | :------------------------------------ | :------- | :-------------------- | | Total Stockholders' Equity | $3,772 | $208 | $24 | $(466) | $3,538 | - Total stockholders' equity decreased from **$3,772K** at April 30, 2025, to **$3,538K** at July 31, 2025, primarily due to a net loss of **$466K**[16](index=16&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Unaudited Condensed Consolidated Statements of Cash Flows (Dollars in Thousands) | Activity | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $600 | $311 | | Net cash used in investing activities | $(46) | $— | | Net cash used in financing activities | $(14) | $(37) | | Increase in cash | $540 | $274 | | Cash at end of period | $10,325 | $2,892 | - Net cash provided by operating activities increased by **$289K** year-over-year for the three months ended July 31, 2025[18](index=18&type=chunk) - Cash at the end of the period significantly increased to **$10,325K** from **$2,892K** year-over-year[18](index=18&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Note 1. Organization, Use of Estimates and Basis of Presentation](index=8&type=section&id=Note%201.%20Organization%2C%20Use%20of%20Estimates%20and%20Basis%20of%20Presentation) - Champions Oncology, Inc. is engaged in drug discovery and development, utilizing its TumorGraft Technology Platform (Patient Derived Xenograft models) to personalize cancer care and facilitate drug discovery for pharmaceutical and biotechnology companies[19](index=19&type=chunk) - The company operates in one reportable business segment and prepares its financial statements in accordance with GAAP, with consistent accounting policies as its 2025 Annual Report[22](index=22&type=chunk)[23](index=23&type=chunk) - The company has four operating subsidiaries, none of which generated revenue for the three months ended July 31, 2025 and 2024[20](index=20&type=chunk) [Note 2. Significant Accounting Policies](index=9&type=section&id=Note%202.%20Significant%20Accounting%20Policies) - As of July 31, 2025, the company had a net loss of **$466K**, an accumulated deficit of **$80.4M**, negative working capital of **$1.7M**, and cash of **$10.3M**; management believes cash on hand and expected cash flows are adequate to fund operations for at least the next twelve months[26](index=26&type=chunk) Earnings Per Share (Dollars in Thousands) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | | Net income (loss) attributable to common stockholders | $(436) | $1,313 | | Basic net income (loss) per share | $(0.03) | $0.10 | | Diluted net income (loss) per share | $(0.03) | $0.09 | - Revenue for pharmacology services is recognized over time using a progress-based input method, while license revenue is recognized at a point in time upon delivery of data access[36](index=36&type=chunk)[37](index=37&type=chunk) - The company operates in a single reportable segment pertaining to oncology services, with the CEO as the Chief Operating Decision Maker[44](index=44&type=chunk) [Note 3. Accounts Receivable, Unbilled Services and Deferred Revenue](index=13&type=section&id=Note%203.%20Accounts%20Receivable%2C%20Unbilled%20Services%20and%20Deferred%20Revenue) Accounts Receivable, Unbilled Services and Deferred Revenue (in thousands) | Metric | July 31, 2025 | April 30, 2025 | May 1, 2024 | | :--------------------------------------- | :------------ | :------------- | :---------- | | Accounts receivable | $5,139 | $6,835 | $4,886 | | Unbilled services | $5,335 | $5,398 | $5,941 | | Total accounts receivable and unbilled services | $10,474 | $12,233 | $10,827 | | Less: Allowances for doubtful accounts and estimated credit losses | $(1,000) | $(1,029) | $(1,301) | | Total accounts receivable, net | $9,474 | $11,204 | $9,526 | | Deferred revenue | $14,430 | $15,443 | $12,094 | - Total accounts receivable, net, decreased from **$11,204K** to **$9,474K** from April 30, 2025, to July 31, 2025[48](index=48&type=chunk) - Deferred revenue decreased from **$15,443K** to **$14,430K** during the three months ended July 31, 2025[48](index=48&type=chunk) [Note 4. Revenue from Contracts with Customers](index=13&type=section&id=Note%204.%20Revenue%20from%20Contracts%20with%20Customers) Disaggregated Oncology Revenue (in thousands) | Revenue Type | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | | Pharmacology services | $13,230 | $13,069 | | TOS data license revenue | $311 | $— | | Other TOS revenue | $454 | $992 | | **Total oncology revenue** | **$13,995** | **$14,061** | - TOS data license revenue generated **$311K** for the three months ended July 31, 2025, with no revenue from this category in the prior year[49](index=49&type=chunk)[50](index=50&type=chunk) - Other

Core Insights - Champions Oncology, Inc. reported a positive start to fiscal year 2026 with steady revenue and data growth [1] - The company announced its financial results for the first quarter of fiscal 2026, which ended on July 31, 2025 [1] Financial Performance - The financial results indicate a strong performance in the first quarter, contributing to the overall positive outlook for the fiscal year [1] - The announcement highlights the importance of new leadership in driving the company's growth and strategic direction [1]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Champions Oncology reported $14.0 million revenue and $60,000 adjusted EBITDA for Q1 FY2026, with Rob Brainin appointed as CEO [First Quarter Fiscal 2026 Overview](index=1&type=section&id=First%20Quarter%20Fiscal%202026%20Overview) Q1 FY2026 saw $14.0 million in revenue and $60,000 adjusted EBITDA, marking a positive start with steady revenue and data growth, alongside a new CEO appointment First Quarter Fiscal 2026 Financial Highlights | Metric | Value ($) | | :---------------- | :---------- | | Total Revenue | $14.0 million | | Adjusted EBITDA | $60,000 | - **Rob Brainin appointed as Chief Executive Officer** to lead the next phase of growth[2](index=2&type=chunk)[3](index=3&type=chunk) [Leadership Commentary](index=1&type=section&id=Leadership%20Commentary) CEO Rob Brainin emphasized strengthening core services and scaling data platforms for growth, while CFO David Miller anticipated continued topline expansion and margin improvement - CEO Rob Brainin's strategic focus includes **strengthening core services**, **scaling the emerging data platform**, **deepening scientific impact**, **delivering innovative solutions**, and **creating durable long-term value for shareholders**; he plans to sharpen strategy, invest in key capabilities, and build on the company's culture of collaboration and scientific excellence[2](index=2&type=chunk) - CFO David Miller noted **solid sequential growth** that met expectations and provides a strong foundation for the year, anticipating **continued topline expansion** and **margin improvement** from a healthy services pipeline and growing demand for proprietary data offerings[2](index=2&type=chunk)[4](index=4&type=chunk) [First Fiscal Quarter Financial Results](index=2&type=section&id=First%20Fiscal%20Quarter%20Financial%20Results) First fiscal quarter results indicate a slight revenue decline, operating loss, and reduced adjusted EBITDA, driven by increased expenses [Revenue and Operating Expenses](index=2&type=section&id=Revenue%20and%20Operating%20Expenses) Q1 FY2026 total oncology revenue slightly decreased to $14.0 million, while total costs and operating expenses rose 14.1% to $14.5 million Total Oncology Revenue (YoY) | Metric | Q1 FY2026 ($M) | Q1 FY2025 ($M) | Change ($M) | % Change | | :-------------------- | :-------- | :-------- | :----- | :------- | | Total Revenue | $14.0M | $14.1M | -$0.1M | -0.7% | | Service Revenue | - | - | -$0.4M | -3% | | Data License Revenue | - | - | +$0.3M | - | Total Costs and Operating Expenses (YoY) | Metric | Q1 FY2026 ($M) | Q1 FY2025 ($M) | Change ($M) | % Change | | :-------------------------- | :-------- | :-------- | :----- | :------- | | Total Costs & Expenses | $14.5M | $12.7M | +$1.8M | +14.1% | [Profitability and Margins](index=2&type=section&id=Profitability%20and%20Margins) Q1 FY2026 profitability declined with a $527 thousand operating loss and $59 thousand Adjusted EBITDA, and gross margin fell to 43% due to outsourced services Operating Income/Loss and Adjusted EBITDA (YoY) | Metric | Q1 FY2026 ($) | Q1 FY2025 ($) | | :---------------- | :---------- | :---------- | | Loss from Operations | $(527,000) | $1.3M | | Adjusted EBITDA | $59,000 | $2.0M | Gross Margin (YoY) | Metric | Q1 FY2026 (%) | Q1 FY2025 (%) | | :--------- | :-------- | :-------- | | Gross Margin | 43% | 50% | - Cost of oncology revenue **increased by $923 thousand, or 13.1%, to $8.0 million**, primarily reflecting **higher outsourced lab services** for radiolabeling work; the company anticipates a **reduction in cost of sales and improvement in gross margins** by migrating this work into its own labs in coming quarters[6](index=6&type=chunk) [Operating Expenses Breakdown](index=2&type=section&id=Operating%20Expenses%20Breakdown) Operating expenses increased across categories, with R&D up 43.2% to $2.1 million, sales and marketing up 10.5% to $1.9 million, and G&A up 1.7% to $2.6 million Operating Expenses (YoY) | Expense Category | Q1 FY2026 ($M) | Q1 FY2025 ($M) | Change ($M) | % Change | | :----------------------- | :-------- | :-------- | :----- | :------- | | Research and development | $2.1M | $1.5M | +$0.628M | +43.2% | | Sales and marketing | $1.9M | $1.7M | +$0.176M | +10.5% | | General and administrative | $2.6M | $2.5M | +$0.043M | +1.7% | - Increase in R&D expense reflected **greater investment in sequencing and related costs to develop the data licensing platform**[7](index=7&type=chunk) - Increase in Sales and Marketing expense was related to **compensation expense to support the growth of the data license business**[7](index=7&type=chunk) [Cash Flow and Balance Sheet](index=2&type=section&id=Cash%20Flow%20and%20Balance%20Sheet) Q1 FY2026 operating activities provided $600 thousand cash, with a strong balance sheet of $10.3 million cash and no debt Cash Flow Summary | Metric | Q1 FY2026 ($) | | :-------------------------------- | :---------- | | Net cash provided by operating activities | ~$600,000 | | Net cash used in investing activities | ~$46,000 | | Net cash used in financing activities | $14,000 | Cash and Debt Position | Metric | Q1 FY2026 ($) | | :----------- | :---------- | | Cash on hand | ~$10.3 million | | Debt | No debt | [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP financial measures are used to provide a clearer view of operating performance and facilitate period-over-period comparisons [Explanation and Rationale](index=3&type=section&id=Explanation%20and%20Rationale) Non-GAAP measures like Adjusted EBITDA and Adjusted EPS enhance understanding of operating performance and provide meaningful comparisons, used by management and investors - Non-GAAP financial measures **facilitate an understanding of operating performance** and **provide a meaningful comparison of results between periods**[13](index=13&type=chunk) - Management uses Non-GAAP measures to **evaluate ongoing operations**, for internal planning and forecasting, and believes Adjusted EBITDA and Adjusted EPS are **customarily used by investors and analysts**[13](index=13&type=chunk) [Definitions of Non-GAAP Measures](index=3&type=section&id=Definitions%20of%20Non-GAAP%20Measures) Adjusted EBITDA excludes stock-based compensation, depreciation, amortization, and other non-operating items from net income (loss), with Adjusted Net Income (Loss) and Adjusted EPS similarly defined - Adjusted EBITDA represents net income (loss), or net income (loss) from operations, **excluding stock-based compensation, depreciation and amortization, and potentially other non-indicative items**[14](index=14&type=chunk) - Adjusted net income (loss) and adjusted EPS **exclude the effect of stock-based compensation, depreciation and amortization**, and **may also exclude other items not indicative of ongoing operating performance**[15](index=15&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) Champions Oncology is a global preclinical and clinical research services provider, offering comprehensive oncology R&D solutions [About Champions Oncology, Inc.](index=3&type=section&id=About%20Champions%20Oncology%2C%20Inc.) Champions Oncology is a global preclinical and clinical research services provider offering comprehensive oncology R&D solutions, leveraging extensive models and proprietary platforms - Champions Oncology is a **global preclinical and clinical research services provider** offering **end-to-end oncology R&D solutions** to biopharma organizations[16](index=16&type=chunk) - The company possesses the **largest and most annotated bank of clinically relevant patient-derived xenograft (PDX) and primary hematological malignancy models**[16](index=16&type=chunk) - Champions delivers **innovative, high-quality data** through **proprietary in vivo and ex vivo platforms**, a **large portfolio of cutting-edge bioanalytical platforms**, and a **groundbreaking data platform and analytics**[16](index=16&type=chunk)[17](index=17&type=chunk) [Media and Forward-Looking Statements](index=4&type=section&id=Media%20and%20Forward-Looking%20Statements) This section provides media contact and a disclaimer on forward-looking statements, noting inherent risks and no obligation to update - The press release may contain **"forward-looking statements"** that **inherently involve risk and uncertainties**, and **actual results could differ materially** from those anticipated[18](index=18&type=chunk) - The company **does not intend to update any forward-looking statements** after the date of the press release to conform these statements to actual results or changes in expectations, **except as required by law**[18](index=18&type=chunk) [Financial Statements and Reconciliations (Unaudited)](index=5&type=section&id=Financial%20Statements%20and%20Reconciliations%20%28Unaudited%29) This section presents unaudited financial statements, including GAAP to Non-GAAP reconciliations, statements of operations, balance sheets, and cash flows [Non-GAAP Reconciliations](index=5&type=section&id=Non-GAAP%20Reconciliations) Detailed reconciliations are provided for GAAP net (loss) income to Adjusted EBITDA and GAAP EPS to Non-GAAP EPS, showing adjustments for non-operating items [GAAP Net (Loss) Income to Adjusted EBITDA](index=5&type=section&id=GAAP%20Net%20%28Loss%29%20Income%20to%20Adjusted%20EBITDA) GAAP net loss of $(466) thousand for Q1 FY2026 was adjusted to an Adjusted EBITDA of $120 thousand by adding back non-operating expenses Reconciliation of GAAP Net (Loss) Income to Adjusted EBITDA | Metric | July 31, 2025 ($) | July 31, 2024 ($) | | :-------------------------- | :------------ | :------------ | | Net (loss) income - GAAP | $(466) | $1,313 | | Less: Stock-based compensation | 208 | 258 | | Less: Depreciation and amortization | 358 | 448.5 | | Less: Loss on equipment disposal | 20 | — | | **Adjusted EBITDA - Non-GAAP** | **$120** | **$2,020** | [GAAP EPS to Non-GAAP EPS](index=5&type=section&id=GAAP%20EPS%20to%20Non-GAAP%20EPS) Basic GAAP EPS of $(0.03) for Q1 FY2026 was adjusted to a Non-GAAP basic EPS of $0.02, after accounting for non-operating items Reconciliation of GAAP EPS to Non-GAAP EPS | Metric | July 31, 2025 ($) | July 31, 2024 ($) | | :------------------------------------ | :------------ | :------------ | | EPS – basic, GAAP | $(0.03) | $0.10 | | Less: Effect of stock-based compensation on EPS | 0.02 | 0.02 | | Less: Effect of depreciation and amortization on EPS | 0.03 | 0.03 | | Less: Effect of loss on equipment disposal on EPS | 0.001 | — | | **Adjusted EPS - basic, Non-GAAP** | **$0.02** | **$0.15** | | EPS – diluted, GAAP | $(0.03) | $0.09 | | Less: Effect of stock-based compensation on EPS | 0.02 | 0.02 | | Less: Effect of depreciation and amortization on EPS | 0.03 | 0.03 | | Less: Effect of loss on equipment disposal on EPS | 0.001 | — | | **Adjusted EPS - diluted, Non-GAAP** | **$0.02** | **$0.14** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Unaudited statements of operations show a net loss of $466 thousand for Q1 FY2026, a shift from prior year's net income, driven by increased expenses and slight revenue decline Condensed Consolidated Statements of Operations (Unaudited) | Metric | July 31, 2025 ($) | July 31, 2024 ($) | | :------------------------------------------ | :------------ | :------------ | | Oncology revenue | $13,995 | $14,061 | | Cost of oncology revenue | 7,995 | 7,072 | | Research and development | 2,082 | 1,454 | | Sales and marketing | 1,855 | 1,679 | | General and administrative | 2,570 | 2,527 | | Loss on disposal of equipment | 20 | — | | (Loss) income from operations | (527) | 1,329 | | Other income, net | 75 | 5 | | (Loss) income before provision for income taxes | (452) | 1,334 | | Provision for income taxes | 14 | 21 | | **Net (loss) income** | **$(466)** | **$1,313** | | Net (loss) income attributable to Company's common shares | $(436) | $1,313 | | Net (loss) income per common share outstanding (basic) | $(0.03) | $0.10 | | Net (loss) income per common share outstanding (diluted) | $(0.03) | $0.09 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of July 31, 2025, total assets were $30,546 thousand, total liabilities $27,008 thousand, and total stockholders' equity $3,538 thousand Condensed Consolidated Balance Sheets (Unaudited) | Metric | July 31, 2025 ($) | April 30, 2025 ($) | | :------------------------------------------ | :------------ | :------------- | | Cash and cash equivalents | $10,325 | $9,785 | | Accounts receivable, net | 9,474 | 11,204 | | Total current assets | 21,014 | 22,358 | | **Total assets** | **$30,546** | **$32,344** | | Accounts payable and accrued liabilities | $6,646 | $6,804 | | Deferred revenue | 14,430 | 15,443 | | Total current liabilities | 22,698 | 23,853 | | **Total liabilities** | **$27,008** | **$28,572** | | Total stockholders' equity | 3,538 | 3,772 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 FY2026 saw net cash provided by operating activities of $600 thousand, with a net increase in cash of $540 thousand, ending the period with $10,325 thousand Condensed Consolidated Statements of Cash Flows (Unaudited) | Metric | July 31, 2025 ($) | July 31, 2024 ($) | | :------------------------------------------ | :------------ | :------------ | | Net (loss) income | $(466) | $1,313 | | Stock-based compensation expense | 208 | 258 | | Depreciation and amortization expense | 358 | 449 | | Loss on disposal of equipment | 20 | — | | **Net cash provided by operating activities** | **600** | **311** | | Purchases of property and equipment | (46) | — | | **Net cash used in investing activities** | **(46)** | **—** | | Proceeds from the exercise of stock options | 24 | — | | Finance lease payments | (38) | (37) | | **Net cash used in financing activities** | **(14)** | **(37)** | | Net increase in cash | 540 | 274 | | Cash at beginning of period | 9,785 | 2,618 | | **Cash at the end of period** | **$10,325** | **$2,892** |