Group 1 - The company reported total revenue of $14 million for the first quarter of fiscal 2026, which ended on July 31, 2025 [1] - Adjusted EBITDA for the same period was $60,000, indicating a stable financial performance [1] - Rob Brainin has been appointed as the new Chief Executive Officer to lead the company through its next phase of growth [1] Group 2 - The appointment of Rob Brainin is seen as a strategic move at a critical inflection point for the company [1] - The company is positioned for potential growth in the oncology research sector [1]

HACKENSACK, NJ / ACCESS Newswire / September 10, 2025 / Champions Oncology, Inc. (Nasdaq:CSBR), a global preclinical and clinical research services provider that offers end-to-end oncology solutions, will report its financial and operational results for the quarter ended July 31, 2025, on Monday, September 15, 2025, after market close. The company will host a conference call to discuss the results that day at 4:30 P.M. ...

Financial Data and Key Metrics Changes - The company reported total revenue of $57 million for fiscal year 2025, a 14% increase from $50.2 million in the previous year [12] - Research services revenue was $52.3 million, up 4% year over year, while data revenue contributed $4.7 million, reflecting initial data licensing deals [12] - Adjusted EBITDA for the year was $7.1 million, a significant improvement from an adjusted EBITDA loss of $3.9 million in fiscal year 2024 [16] Business Line Data and Key Metrics Changes - The core services business remains foundational, with targeted investments leading to improved quality, efficiency, and scalability [5] - The launch of the radiopharmaceutical services platform was a major milestone, expanding the company's offerings and capabilities [6][7] - Operating expenses rose by 7% in Q4 due to increased sales and marketing efforts, while R&D and G&A expenses saw modest declines [14] Market Data and Key Metrics Changes - The biotech and pharma R&D budgets remain constrained, but there are early signs of recovery, including a decrease in customer cancellations [6] - The company is focusing on strengthening relationships with big pharma, which are generally more resilient through market cycles [6] Company Strategy and Development Direction - The company aims to create the world's most comprehensive, clinically relevant tumor dataset, bridging the gap between legacy datasets and next-generation AIML-driven discovery pipelines [7] - The transition in leadership to Rob Braynen is expected to enhance the company's strategic direction, leveraging his extensive experience in life sciences and data-driven innovation [8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about sustaining growth despite a tight marketplace, emphasizing the need for efficiency and better tools for marketing and sales [22] - The company anticipates a sequential increase in revenue and adjusted EBITDA profit in the upcoming quarters, supported by structural improvements made in fiscal year 2025 [17] Other Important Information - The company ended the year with $9.8 million in cash, up from $2.6 million a year ago, and remains debt-free [16] - The company plans to maintain cash neutrality in the next quarter, with projected cash growth in the second half of the year [17] Q&A Session Summary Question: Current environment and expectations for fiscal '26 - Management acknowledged that while the current environment is still tight, there are glimpses of improvement and they feel confident in sustaining growth [20][22] Question: Data licensing pipeline and expectations - Management indicated that the data licensing business is still in its early stages, with a growing pipeline and expectations for revenue to remain stable before increasing [24] Question: Radiopharmaceutical service agreements - Management described the new radiopharmaceutical services as having higher price tags and margins, with expectations of 50-60% margins due to high demand in the field [26] Question: Capital allocation and investments for growth - Management plans to focus investments on creating new datasets and enhancing data capabilities, with no significant capital expenditures expected [30][31] Question: Updates on Corellia AI programs - Management expressed excitement about the Corellia portfolio and ongoing efforts to raise funds for drug development, highlighting the potential of their drug targets [34]

[PART I](index=4&type=section&id=PART%20I) [Business](index=4&type=section&id=Item%201.%20Business) Champions Oncology is a research organization leveraging proprietary PDX models for drug discovery, offering research services, data licensing, and developing novel therapeutics - The company's business is centered around a proprietary bank of approximately **1,500 Patient Derived Xenograft (PDX) models**, which are used in its pharmacology, biomarker, and data platforms[17](index=17&type=chunk) - The company's ecosystem consists of three primary business lines: research services for biopharma, sales of PDX model data and SaaS tools, and the discovery of novel oncology therapeutics[19](index=19&type=chunk) Fiscal Year 2025 Revenue | Metric | Value | Year-over-Year Change | | :--- | :--- | :--- | | Total Revenue | $56.9 million | ~14% increase | - The company's growth strategy focuses on expanding its TumorBank, adding new experimental technologies, and leveraging its computational power and unique Datacenter for drug discovery[33](index=33&type=chunk)[34](index=34&type=chunk) - As of July 15, 2025, the company had **213 full-time employees**, with **159** engaged in research and development and laboratory operations[42](index=42&type=chunk) [Risk Factors](index=8&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks including historical losses, capital needs, intense competition, intellectual property vulnerabilities, concentrated ownership, and geopolitical instability - The company has a history of losses, with an accumulated deficit of approximately **$79.9 million** as of April 30, 2025, despite achieving a net income of **$4.7 million** in FY2025, sustained profitability is not guaranteed[49](index=49&type=chunk) - The company's core TumorGraft Technology Platform is proprietary but not patented, creating a risk that competitors could develop similar procedures[64](index=64&type=chunk) - The company faces intense competition in research services, SaaS, and drug development from larger entities with substantially greater capital resources and experience[35](index=35&type=chunk)[37](index=37&type=chunk)[62](index=62&type=chunk) - A significant concentration of ownership exists, with officers, directors, and three major stockholders controlling approximately **72%** of the outstanding common stock, potentially limiting other shareholders' influence[87](index=87&type=chunk) - Geopolitical risks are present as the company's CEO resides in Israel and several customers are based there, making leadership continuity and business operations susceptible to regional instability[96](index=96&type=chunk) [Unresolved Staff Comments](index=16&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - None[100](index=100&type=chunk) [Cybersecurity](index=16&type=section&id=Item%201C.%20Cybersecurity) The company maintains a cybersecurity program with board oversight, reporting no material threats or incidents to date - The company has implemented a cybersecurity program involving ongoing monitoring, employee training, and consultation with external experts to manage risks[101](index=101&type=chunk) - Oversight is provided by the Board of Directors' Audit Committee, with the senior leadership team responsible for managing and reporting on cybersecurity threats[102](index=102&type=chunk) - As of the report date, no known cybersecurity threats have materially affected the company's business, operations, or financial condition[103](index=103&type=chunk) [Properties](index=16&type=section&id=Item%202.%20Properties) The company leases all its office and laboratory facilities across key locations in New Jersey, Maryland, and Italy Leased Facilities and Rent Expense (FY2025) | Location | Purpose | Lease Expiration | FY2025 Rent Expense | | :--- | :--- | :--- | :--- | | Hackensack, NJ | Corporate HQ | Nov 2026 | $75,000 | | Rockville, MD | Lab & Office | Feb 2029 | $1.7 million | | Milan, Italy | Lab & Office | Oct 2028 | $50,000 | - Total rent expense was consistent at **$1.8 million** for both fiscal years 2025 and 2024[104](index=104&type=chunk) [Legal Proceedings](index=16&type=section&id=Item%203.%20Legal%20Proceedings) Management is unaware of any pending or contemplated litigation against the company or its officers and directors - To the knowledge of management, there is no pending or contemplated litigation against the company[107](index=107&type=chunk) [Mine Safety Disclosures](index=17&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[108](index=108&type=chunk) [PART II](index=17&type=section&id=PART%20II) [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=17&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq, experiencing volatility, with no dividends paid and a limited share repurchase program - The company's common stock (**CSBR**) is listed on the Nasdaq Capital Market[110](index=110&type=chunk) Quarterly Stock Price Range (Fiscal Year 2025) | Quarter | High | Low | | :--- | :--- | :--- | | First | $5.44 | $4.50 | | Second | $5.45 | $3.60 | | Third | $11.99 | $3.79 | | Fourth | $11.98 | $7.01 | - The company has a share repurchase program with approximately **$4.3 million** remaining authorized as of April 30, 2025, with no shares repurchased in fiscal year 2025[115](index=115&type=chunk)[116](index=116&type=chunk) - No dividends have been declared or paid, and none are anticipated in the foreseeable future[113](index=113&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company achieved a financial turnaround in FY2025 with net income and strong revenue growth, driven by improved operational efficiency and positive cash flow from operations [Results of Operations](index=19&type=section&id=Results%20of%20Operations) FY2025 saw revenue growth and reduced operating expenses, shifting from an operating loss to a $4.6 million operating income Summary of Operations (in thousands) | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Oncology Revenue | $56,944 | $50,155 | 13.5% | | Cost of Oncology Revenue | $28,389 | $29,401 | (3.4)% | | Research and Development | $6,825 | $9,544 | (28.5)% | | Sales and Marketing | $7,545 | $7,064 | 6.8% | | General and Administrative | $9,339 | $11,067 | (15.6)% | | **Income (Loss) from Operations** | **$4,553** | **($7,356)** | **(161.9)%** | Revenue Breakdown (in thousands) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Pharmacology services | $48,585 | $47,035 | | TOS data license revenue | $4,676 | $0 | | Other TOS revenue | $3,683 | $3,102 | | Personalized oncology services | $0 | $18 | | **Total oncology revenue** | **$56,944** | **$50,155** | - The decrease in R&D expense was primarily due to a reduction in investment in developmental programs, including its subsidiary Corellia[136](index=136&type=chunk) - The decrease in G&A expense was mainly due to lower compensation expenses and professional fees[138](index=138&type=chunk) [Liquidity and Capital Resources](index=21&type=section&id=Liquidity%20and%20Capital%20Resources) The company significantly improved its cash position and operating cash flow in FY2025, expecting sufficient liquidity through August 2026 Key Liquidity Metrics (as of April 30, 2025) | Metric | Value | | :--- | :--- | | Cash | $9.8 million | | Accumulated Deficit | ($79.9 million) | | Working Capital | ($1.5 million) | Cash Flow Summary (in thousands) | Cash Flow Source | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Operating Activities | $7,386 | ($6,137) | | Investing Activities | ($389) | ($836) | | Financing Activities | $170 | ($527) | - Management asserts that current cash and expected cash flows from operations are adequate to fund the company through at least August 2026[143](index=143&type=chunk) [Critical Accounting Policies](index=21&type=section&id=Critical%20Accounting%20Policies) Critical accounting policies involve significant judgments in revenue recognition for services and data licenses, and stock-based compensation valuation - Revenue from service contracts is primarily recognized over time, while revenue from data licenses is recognized at a point in time upon delivery[241](index=241&type=chunk)[242](index=242&type=chunk) - The company uses the Black-Scholes option pricing model to determine the fair value of stock-based awards, requiring management judgment for key assumptions[154](index=154&type=chunk)[227](index=227&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is not applicable to the company - Not applicable[160](index=160&type=chunk) [Financial Statements and Supplementary Data](index=25&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements, including the independent auditor's report and notes - The independent auditor, EisnerAmper LLP, issued an opinion that the financial statements present fairly, in all material respects, the consolidated financial position of the company[185](index=185&type=chunk) - A critical audit matter was identified concerning revenue recognition for a new, first-time data license contract for **$4.5 million**, due to the complexity of the agreement and the application of accounting guidance[190](index=190&type=chunk)[191](index=191&type=chunk) Consolidated Balance Sheet Highlights (in thousands) | Account | April 30, 2025 | April 30, 2024 | | :--- | :--- | :--- | | Cash | $9,785 | $2,618 | | Total Current Assets | $22,369 | $13,639 | | Total Assets | $32,344 | $26,132 | | Total Current Liabilities | $23,853 | $21,541 | | Total Liabilities | $28,572 | $28,035 | | Total Stockholders' Equity (Deficiency) | $3,772 | ($1,903) | Consolidated Statement of Operations Highlights (in thousands) | Account | Year Ended April 30, 2025 | Year Ended April 30, 2024 | | :--- | :--- | :--- | | Oncology Revenue | $56,944 | $50,155 | | Total Costs and Operating Expenses | $52,391 | $57,511 | | Income (Loss) from Operations | $4,553 | ($7,356) | | **Net Income (Loss)** | **$4,701** | **($7,276)** | | **Diluted EPS** | **$0.33** | **($0.54)** | [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=25&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[162](index=162&type=chunk) [Controls and Procedures](index=25&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of April 30, 2025 - Management concluded that the company's disclosure controls and procedures were effective as of April 30, 2025[164](index=164&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of April 30, 2025[167](index=167&type=chunk) - No material changes were made to internal controls over financial reporting during the quarter ended April 30, 2025[168](index=168&type=chunk) [Other Information](index=26&type=section&id=Item%209B.%20Other%20Information) The company reports no other information - None[169](index=169&type=chunk) [PART III](index=26&type=section&id=PART%20III) [Directors, Executive Officers and Corporate Governance](index=26&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item is incorporated by reference from the 2025 Proxy Statement - Information is incorporated by reference from the forthcoming 2025 Proxy Statement[172](index=172&type=chunk) [Executive Compensation](index=27&type=section&id=Item%2011.%20Executive%20Compensation) Information for this item is incorporated by reference from the 2025 Proxy Statement - Information is incorporated by reference from the forthcoming 2025 Proxy Statement[173](index=173&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=27&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information for this item is incorporated by reference from the 2025 Proxy Statement - Information is incorporated by reference from the forthcoming 2025 Proxy Statement[174](index=174&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=27&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information for this item is incorporated by reference from the 2025 Proxy Statement - Information is incorporated by reference from the forthcoming 2025 Proxy Statement[175](index=175&type=chunk) [Principal Accounting Fees and Services](index=27&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information for this item is incorporated by reference from the 2025 Proxy Statement - Information is incorporated by reference from the forthcoming 2025 Proxy Statement[176](index=176&type=chunk) [PART IV](index=27&type=section&id=PART%20IV) [Exhibits and Financial Statement Schedules](index=27&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all documents filed as part of the Annual Report, including financial statements and required exhibits - This item includes the consolidated financial statements and a list of all exhibits filed with the report[178](index=178&type=chunk)[180](index=180&type=chunk)

[Overall Financial Performance](index=1&type=section&id=Overall%20Financial%20Performance) Champions Oncology achieved record annual revenue and significant profitability in fiscal year 2025, driven by strategic growth [Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Champions Oncology achieved record annual revenue of **$57 million** and **$4.6 million** net income in fiscal 2025, driven by a new data business and efficiency Fiscal Year 2025 Key Financial Highlights | Metric | Value (in millions) | Growth (YoY) | | :--- | :--- | :--- | | Record Annual Revenue | $57 | 14% | | Net Income | $4.6 | N/A (Turnaround from loss) | | Adjusted EBITDA Income | $7.1 | N/A (Turnaround from loss) | | Data License Revenue | $4.7 | N/A (New business) | | Year-end Cash Balance | $9.8 | +274% | - Management commentary emphasized a successful turnaround in FY2025, driven by a return to **growth**, the launch of a **high-margin data business**, and improved **operational efficiency**[2](index=2&type=chunk) - The company is optimistic about fiscal 2026, citing a **strong pipeline** for continued revenue growth and further monetization of its data offerings[2](index=2&type=chunk) [Fourth Quarter Fiscal 2025 Financial Results](index=1&type=section&id=Fourth%20Quarter%20Fiscal%202025%20Financial%20Results) Q4 FY2025 saw a **12% revenue decline** to **$12.4 million**, resulting in operating and EBITDA losses, despite strong operating cash flow Q4 FY2025 vs. Q4 FY2024 Financial Performance (in millions) | Metric | Q4 FY2025 | Q4 FY2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $12.4 | $14.0 | -12% | | Gross Margin | 41% | 48% | -7 p.p. | | Loss from Operations | ($2.0) | ($0.2) | Increased Loss | | Adjusted EBITDA | ($1.2) | $0.9 | Decline | | Operating Cash Flow | $6.4 | N/A | Positive Flow | - Sales and marketing expenses increased by **30%** to **$2.3 million**, driven by higher compensation for the expanding data business development team and increased conference attendance[7](index=7&type=chunk) - General and administrative expenses decreased by **9%** to **$2.5 million**, mainly due to lower overall compensation and reduced recruiting fees[7](index=7&type=chunk) - The company ended the quarter with a cash position of **$9.8 million** and no debt[8](index=8&type=chunk) [Full Fiscal Year 2025 Financial Results](index=2&type=section&id=Full%20Fiscal%20Year%202025%20Financial%20Results) FY2025 achieved record revenue of **$56.9 million** (+14%), driven by research services and new data licenses, leading to a turnaround to **$4.6 million** operating income FY2025 vs. FY2024 Financial Performance (in millions) | Metric | FY2025 | FY2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $56.9 | $50.2 | +14% | | Gross Margin | 50% | 41% | +9 p.p. | | Income (Loss) from Operations | $4.6 | ($7.4) | Turnaround to Profit | | Adjusted EBITDA | $7.1 | ($3.9) | Turnaround to Profit | - Revenue growth was driven by a **4% increase** in the research services business and **$4.7 million** from the new data license revenue stream[9](index=9&type=chunk) - Research and development expenses declined by **28%** to **$6.8 million** due to reduced investment in non-essential services[13](index=13&type=chunk) - Gross margin improved significantly to **50%** from **41%**, attributed to higher revenue, operational efficiencies, and the contribution from high-margin data revenue[12](index=12&type=chunk) [Detailed Financial Statements](index=6&type=section&id=Detailed%20Financial%20Statements) This section provides a comprehensive overview of the company's financial position, operational results, and cash flows [Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20%28Unaudited%29) FY2025 operations show a turnaround to **$4.7 million** net income from a **$7.3 million** loss, driven by **14% revenue growth** and reduced expenses FY2025 vs. FY2024 Statement of Operations (in thousands) | Line Item | FY2025 | FY2024 | | :--- | :--- | :--- | | Oncology Revenue | $56,944 | $50,155 | | Cost of Oncology Revenue | $28,389 | $29,401 | | Research and Development | $6,825 | $9,544 | | Sales and Marketing | $7,545 | $7,064 | | General and Administrative | $9,339 | $11,067 | | **Income (Loss) from Operations** | **$4,553** | **($7,356)** | | **Net Income (Loss)** | **$4,701** | **($7,276)** | | **EPS, diluted** | **$0.33** | **($0.54)** | [Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20as%20of) As of April 30, 2025, the balance sheet strengthened with total assets at **$32.3 million**, cash at **$9.8 million**, and stockholders' equity turning positive Balance Sheet Highlights as of April 30 (in thousands) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Cash | $9,785 | $2,618 | | Total Current Assets | $22,369 | $13,639 | | Total Assets | $32,344 | $25,962 | | Deferred Revenue | $15,443 | $12,094 | | Total Liabilities | $28,572 | $27,835 | | Stockholders' Equity (Deficit) | $3,772 | ($1,903) | [Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20%28Unaudited%29) FY2025 saw **$7.4 million** cash generated from operations, a significant improvement, increasing the cash balance to **$9.8 million** FY2025 vs. FY2024 Cash Flow Summary (in thousands) | Cash Flow Activity | FY2025 | FY2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $7,386 | ($6,137) | | Net Cash used in Investing Activities | ($389) | ($836) | | Net Cash from (used in) Financing Activities | $170 | ($527) | | **Increase (Decrease) in Cash** | **$7,167** | **($7,500)** | | **Cash, End of Period** | **$9,785** | **$2,618** | [Non-GAAP Financial Measures Reconciliation](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) Non-GAAP measures show FY2025 Adjusted EBITDA at **$7.3 million** and Adjusted EPS at **$0.53**, reflecting core operational improvements Reconciliation of GAAP Net Income to Adjusted EBITDA (in thousands) | Line Item | FY2025 | FY2024 | | :--- | :--- | :--- | | Net Income (Loss) - GAAP | $4,701 | ($7,276) | | Stock-based compensation | $654 | $1,118 | | Depreciation and amortization | $1,640 | $1,867 | | Loss on equipment disposal | $293 | $435 | | **Adjusted EBITDA - Non-GAAP** | **$7,288** | **($3,856)** | Reconciliation of GAAP EPS to Non-GAAP EPS (basic) | Line Item | FY2025 | FY2024 | | :--- | :--- | :--- | | EPS – GAAP, basic | $0.34 | ($0.54) | | Effect of stock-based compensation | $0.05 | $0.08 | | Effect of depreciation and amortization | $0.12 | $0.14 | | Effect of loss on equipment disposal | $0.02 | $0.03 | | **Adjusted EPS - basic, Non-GAAP** | **$0.53** | **($0.29)** | [Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides essential details about the company's business, upcoming events, and important disclaimers [Company Overview](index=4&type=section&id=About%20Champions%20Oncology%2C%20Inc.) Champions Oncology is a global preclinical and clinical research services provider supporting biopharma oncology R&D with proprietary models and platforms - The company operates as a **global preclinical and clinical research services provider** for biopharma organizations[22](index=22&type=chunk) - Core assets include the largest bank of clinically relevant **patient-derived xenograft (PDX) models** and proprietary in vivo and ex vivo platforms[22](index=22&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information%3A) A conference call to discuss Q4 financial results is scheduled for July 23, 2025, with full details available in the upcoming Form 10-K - A conference call to discuss Q4 financial results is scheduled for **4:30 p.m. EST on July 23, 2025**[15](index=15&type=chunk) - Full financial details will be available in the Company's **Form 10-K** on or before July 29, 2025[16](index=16&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements subject to risks and uncertainties, with actual results potentially differing materially from expectations - The report contains **forward-looking statements** involving inherent risks and uncertainties[23](index=23&type=chunk) - Actual results may differ materially from expectations; readers are directed to the **Form 10-K** for risk factors[23](index=23&type=chunk)

Group 1 - Champions Oncology (NASDAQ: CSBR) is a specialized platform providing preclinical research services focused on oncology [1] - The company is at a critical inflection point, evolving its business model by monetizing its unique data asset through licensing [1] Group 2 - The investment thesis suggests that identifying high-quality and/or severely mispriced investment ideas is essential for potential investors [1]

Revenue Performance - Oncology revenue for the three months ended January 31, 2025, was $17.0 million, a 41.8% increase from $12.0 million in the same period in 2024[99] - For the nine months ended January 31, 2025, oncology revenue reached $44.6 million, reflecting a growth of 23.3% from $36.2 million in the prior year[99] Cost Management - Total costs and operating expenses for the three months ended January 31, 2025, decreased by 14.1% to $12.5 million from $14.6 million in the prior year[98] - Research and development expenses for the three months ended January 31, 2025, were $1.7 million, a decrease of 21.4% from $2.2 million in the same period in 2024[106] - Cost of oncology revenue decreased by 15.7% to $6.6 million for the three months ended January 31, 2025, down from $7.8 million in the prior year[105] - General and administrative expenses decreased by $366,000, or 13.2%, for the three months ended January 31, 2025, compared to the same period in 2024[111] - General and administrative expenses for the nine months ended January 31, 2025, were $6.8 million, a decrease of $1.5 million, or 18.0%, from $8.3 million in 2024[111] - The decrease in general and administrative expenses was primarily due to reductions in compensation and employee recruitment expenses[111] Financial Performance - The company reported an income from operations of $4.5 million for the three months ended January 31, 2025, compared to a loss of $2.6 million in the prior year[98] - For the nine months ended January 31, 2025, net cash provided by operating activities was $518,000, a significant improvement from a net cash used of $4.3 million in the same period of 2024[112] - Net cash used in investing activities was $136,000 for the nine months ended January 31, 2025, down from $839,000 in the prior year[113] - Net cash provided by financing activities was $202,000 for the nine months ended January 31, 2025, compared to a net cash used of $490,000 in the same period of 2024[114] Liquidity and Capital Needs - Cash on hand as of January 31, 2025, was approximately $3.2 million, indicating liquidity challenges[96] - The company may need to raise additional equity or debt capital in the near term to fund operations[97] Debt and Obligations - The company had an accumulated deficit of approximately $78.1 million as of January 31, 2025[96] - The company has no off-balance sheet debt or similar obligations[117] - There are no undisclosed transactions or obligations with related parties affecting the reported results[117] - The company does not guarantee any third-party debt[117] - The company is classified as a smaller reporting company and is not required to provide additional market risk disclosures[118]

Financial Data and Key Metrics Changes - Champions Oncology reported record revenue of $17 million for Q3 2025, marking a significant increase compared to the previous year [4][14] - Adjusted EBITDA reached a record high of $5.2 million, a substantial improvement from an adjusted loss of $1.7 million in the prior year [15][21] - Income from operations was $4.5 million, compared to a loss of $2.6 million in the same quarter last year [15] - Total revenue for the year-to-date was $45 million, up 22% from $36 million in the first three quarters of 2024 [19] Business Line Data and Key Metrics Changes - Research service revenue was $12.5 million, up from $12 million in the same period last year, while data revenue contribution was $4.5 million [15] - Gross margin for the quarter improved to 61%, driven by high-margin data revenue, with research service margins increasing to 48% from 35% [17][20] Market Data and Key Metrics Changes - The company noted a cautious optimism regarding a rebound in the biotech sector, with customers beginning to expand their R&D budgets [5] - Despite improvements, the overall environment remains tight, leading to potential performance volatility [5] Company Strategy and Development Direction - The company aims to create the world's most comprehensive biological data set from clinically relevant tumor populations, enhancing its PDX bank and multiomic data [8][9] - Champions Oncology is exploring various licensing models for its data, including one-time fees and potential royalties, to maximize revenue opportunities [49][50] - The company is focused on expanding its data business while maintaining profitability and driving shareholder value [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for long-term growth despite current challenges in the biotech sector [12][36] - The company is actively engaging with potential customers to build its opportunity pipeline, although it remains premature to forecast the number of deals or their impact on revenue [10][11] Other Important Information - The company ended the quarter with $3.2 million in cash and no debt, with cash generated from operating activities amounting to $900,000 [21][22] - The successful closure of the inaugural data deal is seen as an initial validation of the company's strategic vision [13] Q&A Session Summary Question: Details on the licensing deal structure and pipeline opportunities - The licensing deal was for a portion of the data with a one-time fee, and the company is in discussions with multiple partners in the biotech and pharma industry [26][27] Question: Impact of tariffs and budget cuts on customer conversations - Management indicated that while tariffs may not have a direct impact, the overall environment remains tight, affecting the biotech sector [28][29] Question: Customer demand and early studies in the biotech sector - Management acknowledged that the challenging environment has affected customer demand, but they have focused on larger biopharma companies and operational efficiency [31][32] Question: Potential for a turnaround in customer demand - Management noted ongoing investment in pharma and biotech, particularly in oncology, suggesting some positive trends despite overall challenges [34][35] Question: Capital raising for the drug development subsidiary - The subsidiary is seeking capital through external funding, which will not affect the parent company's cash flow but will be an asset for Champions Oncology [39][44] Question: Future pricing models for data licensing - The company is exploring various licensing models, including fees and royalties, to cater to different customer needs [49][50] Question: Competition in the data licensing space - Management believes they have a unique approach by providing deep insights into fewer patients, differentiating themselves from competitors who offer broader but shallower data [65][66] Question: Use of AI in the legacy business - Currently, AI has not significantly impacted the core business, but management remains optimistic about future applications [68] Question: Upcoming cancer research meeting and accepted abstracts - Management expressed excitement about presenting at the upcoming meeting, highlighting their commitment to innovation and R&D [79] Question: Internal team for customer acquisition regarding PDX data - The company has a dedicated team for data strategy, working alongside the core business development team to communicate the value of their data [81][84]

Financial Performance - Total revenue for Q3 fiscal 2025 reached $17.0 million, a 42% increase from $12.0 million in Q3 fiscal 2024[6] - Gross profit for Q3 fiscal 2025 was $10.4 million, resulting in a gross margin of 61%[4] - Net income for Q3 fiscal 2025 was approximately $4.5 million, compared to a loss of $2.6 million in Q3 fiscal 2024[7] - Adjusted EBITDA for Q3 fiscal 2025 was $5.2 million, a significant improvement from an adjusted EBITDA loss of $1.7 million in Q3 fiscal 2024[7] - Adjusted EPS for Q3 fiscal 2025 was $0.38, compared to an adjusted EPS loss of $0.12 in Q3 fiscal 2024[26] - Net income for the nine months ended January 31, 2025, was $6,536 million, compared to a net loss of $7,167 million for the same period in 2024[29] - The company reported a basic net income per share of $0.48 for the nine months ended January 31, 2025, compared to a loss of $0.53 in the same period of 2024[27] Revenue Growth - Total oncology revenue for the nine months ended January 31, 2025, was $44.6 million, a 23.3% increase from $36.2 million in the same period last year[12] - Oncology revenue for the three months ended January 31, 2025, was $17,039 million, a 42% increase from $12,019 million in the same period of 2024[27] - The company signed its first data licensing deal worth up to $8.0 million, marking a key milestone in monetizing its proprietary data platform[4] Expenses and Cost Management - Research and development expenses for Q3 fiscal 2025 decreased by 21.4% to $1.7 million compared to $2.2 million in Q3 fiscal 2024[9] - Total costs and operating expenses for Q3 fiscal 2025 were $12.5 million, a decrease of 14.1% from $14.6 million in Q3 fiscal 2024[6] - Research and development expenses decreased to $4,862 million for the nine months ended January 31, 2025, from $7,494 million in the same period of 2024[27] Cash and Assets - The company ended the quarter with cash on hand of approximately $3.2 million and has no debt[11] - Cash and cash equivalents rose to $3,202 million as of January 31, 2025, compared to $2,618 million at the end of April 2024[28] - The company reported a net cash provided by operating activities of $946 million for the nine months ended January 31, 2025, compared to a net cash used of $4,321 million in the same period of 2024[29] - Total assets increased to $30,627 million as of January 31, 2025, up from $26,132 million on April 30, 2024[28] Liabilities and Shares - Total current liabilities decreased to $19,870 million as of January 31, 2025, from $21,541 million on April 30, 2024[28] - The weighted average common shares outstanding for basic shares was 13,620,686 for the nine months ended January 31, 2025, compared to 13,538,480 for the same period in 2024[27] - Operating lease right-of-use assets decreased to $5,370 million as of January 31, 2025, from $6,252 million on April 30, 2024[28]

Group 1 - The article discusses the potential for initiating a short position in CSBR within the next 72 hours, indicating a bearish outlook on the stock [1] - The analysis emphasizes the importance of conducting due diligence before making investment decisions, highlighting that the research is for informational purposes only [2][3] - The article notes that past performance is not indicative of future results, suggesting caution in interpreting historical data [3] Group 2 - The company involved in the analysis has no current stock or derivative positions in the mentioned companies, which may influence the objectivity of the analysis [1] - The research covers a wide range of financial markets, including investment securities and futures & options, indicating a comprehensive approach to market analysis [2] - The article mentions that opinions expressed may not reflect the views of the broader organization, suggesting a diversity of perspectives within the company [3]