Company Performance - OmniAb, Inc. reported a quarterly loss of $0.15 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.14, and compared to a loss of $0.13 per share a year ago, indicating a surprise of -7.14% [1] - The company posted revenues of $3.9 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 35.71%, and down from $7.61 million in the same quarter last year [2] - Over the last four quarters, OmniAb has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - OmniAb shares have declined approximately 42.4% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.14 on revenues of $6.51 million, and for the current fiscal year, it is -$0.59 on revenues of $23.59 million [7] Industry Outlook - The Medical - Drugs industry, to which OmniAb belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact OmniAb's stock performance [5]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported revenue of $3.9 million, a decrease from $7.6 million in Q2 2024, primarily due to lower milestone achievements and service revenue [22][23] - The net loss for Q2 2025 was $15.9 million, or $0.15 per share, compared to a net loss of $13.6 million, or $0.13 per share, in the same period of 2024 [25] Business Line Data and Key Metrics Changes - The number of active partners increased to 100, with a net increase of 18 active programs year-to-date, totaling 381 active programs [9][11] - The company executed multiple license agreements, including a deal with Angelini Pharma for a small molecule ion channel modulator [10] Market Data and Key Metrics Changes - The company noted a steady diversification of its partner base, with most partners based in the U.S. but increasing international presence [10] - The exploration partner access program received strong market response, leading to the sale and installation of an exploration system shortly after launch [6][21] Company Strategy and Development Direction - The company aims to expand the reach of its technologies and execute on new technology launches, focusing on creating long-term sustainable value [8] - The exploration program is seen as a complement to the core business, enhancing the probability of success in drug development through advanced technologies [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic goals and the potential for new technology launches to drive growth [8] - The company anticipates that exploration revenue will be additive to existing revenue streams, although it did not change its overall guidance [37] Other Important Information - The company reduced its headcount from 114 to 87 employees, expecting annual cash savings of approximately $7 million going forward [7][26] - The average royalty rate for antibody programs increased to 3.36% from 3.2% reported in November 2023, reflecting the value of the company's technologies [13] Q&A Session Summary Question: Impact of large pharma versus small biotech trends on discovery - Management noted continued growth in both large pharma and small biotech partners, contributing positively to discovery programs [36] Question: Guidance on exploration revenue - Management reiterated that exploration revenue is expected to be additive but did not change overall guidance [37][38] Question: Pipeline for exploration program - The exploration program received positive feedback and has generated significant interest from both existing and potential new partners [45][47] Question: Timeline for existing partners in the access program - Partners can engage in discussions about purchasing exploration instruments while also becoming discovery partners [56] Question: Future technology launches - The company plans to launch an additional technology this year, which will be relevant to its strategic mission [58] Question: Details on Janssen's tri-specific program - The economics around the Janssen deal include milestone payments and do not qualify as a prepaid license [61] Question: Revenue estimates for consumables and subscriptions - Management indicated that estimates for consumable and subscription revenue vary by customer and are not ready for disclosure [63] Question: Proportion of assets derived from the OmniChicken platform - Management confirmed that there are several programs in the pipeline derived from the OmniChicken platform, but specific breakdowns were not provided [68] Question: Business plan for exploration - The exploration business model includes selling instruments and consumables, with a focus on proprietary consumables and software licenses [72]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [ITEM 1. Condensed Consolidated Financial Statements (unaudited)](index=3&type=section&id=ITEM%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section presents OmniAb, Inc.'s unaudited condensed consolidated financial statements for the periods ended June 30, 2025, and December 31, 2024, including balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, along with detailed notes explaining the company's organization, accounting policies, fair value measurements, and specific account details [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet highlights a **9.2% decrease in total assets** and an **8.9% decrease in total stockholders' equity** as of June 30, 2025 Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Assets | $295,674 | $325,558 | $(29,884) | (9.2)% | | Current Assets | $47,618 | $68,138 | $(20,520) | (30.1)% | | Cash and cash equivalents | $18,281 | $27,598 | $(9,317) | (33.8)% | | Short-term investments | $23,334 | $31,836 | $(8,502) | (26.7)% | | Total Liabilities | $33,610 | $37,940 | $(4,330) | (11.4)% | | Total Stockholders' Equity | $262,064 | $287,618 | $(25,554) | (8.9)% | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statements of operations show a **49% decrease in total revenue** and a **16% increase in net loss** for the three months ended June 30, 2025 Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $3,897 | $7,614 | $(3,717) | (49)% | | Total Costs and Operating Expenses | $20,116 | $23,919 | $(3,803) | (16)% | | Net Loss | $(15,875) | $(13,631) | $(2,244) | 16% | | Net Loss Per Share, Basic and Diluted | $(0.15) | $(0.13) | $(0.02) | 15.4% | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $8,051 | $11,415 | $(3,364) | (29)% | | Total Costs and Operating Expenses | $43,114 | $50,273 | $(7,159) | (14)% | | Net Loss | $(34,075) | $(32,592) | $(1,483) | 5% | | Net Loss Per Share, Basic and Diluted | $(0.32) | $(0.32) | $0.00 | 0% | [Condensed Consolidated Statements of Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) The statements of comprehensive loss indicate a **comprehensive loss of $(15,885) thousand** for the three months ended June 30, 2025 Condensed Consolidated Statements of Comprehensive Loss Highlights (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net loss | $(15,875) | $(13,631) | | Unrealized net loss on available-for-sale securities | $(10) | $(8) | | **Comprehensive loss** | **$(15,885)** | **$(13,639)** | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net loss | $(34,075) | $(32,592) | | Unrealized net loss on available-for-sale securities | $(29) | $(75) | | **Comprehensive loss** | **$(34,104)** | **$(32,667)** | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity decreased by **$(25,554) thousand**, primarily due to the accumulated deficit from net loss Condensed Consolidated Statements of Stockholders' Equity Highlights (in thousands, except share data) | Metric | January 1, 2025 | June 30, 2025 | Change | | :--- | :--- | :--- | | Common Stock Shares | 121,599,488 | 122,701,294 | +1,101,806 | | Additional Paid-in Capital | $388,979 | $397,529 | +$8,550 | | Accumulated Other Comprehensive Income (Loss) | $27 | $(2) | $(29) | | Accumulated Deficit | $(101,400) | $(135,475) | $(34,075) | | **Total Stockholders' Equity** | **$287,618** | **$262,064** | **$(25,554)** | - Net loss for the six months ended June 30, 2025, contributed **$(34,075) thousand** to the accumulated deficit[18](index=18&type=chunk) - Share-based compensation for the six months ended June 30, 2025, increased additional paid-in capital by **$8,255 thousand**[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flows show a **net cash outflow of $(9,317) thousand** for the six months ended June 30, 2025, driven by operating and investing activities Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | $(21,018) | $(29,214) | $8,196 | | Net cash provided by investing activities | $11,421 | $33,050 | $(21,629) | | Net cash provided by financing activities | $280 | $600 | $(320) | | Net change in cash, cash equivalents and restricted cash | $(9,317) | $4,436 | $(13,753) | | Cash, cash equivalents and restricted cash at end of period | $18,841 | $21,354 | $(2,513) | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of OmniAb, Inc.'s accounting policies, fair value measurements, and specific balance sheet account details [1. Organization and Basis of Presentation](index=8&type=section&id=1.%20Organization%20and%20Basis%20of%20Presentation) This note describes OmniAb, Inc.'s business as a biotechnology company licensing discovery research technology and its financial sustainability outlook - OmniAb, Inc. is a biotechnology company that licenses discovery research technology to pharmaceutical, biotech, and academic institutions for next-generation therapeutics[23](index=23&type=chunk) - The Company primarily derives revenue from license fees for technology access, milestones from partnered programs, and service revenue from research programs[23](index=23&type=chunk) - Management believes existing cash, cash equivalents, and short-term investments are sufficient to support operations through at least the next 12 months, despite expected continued losses from R&D and operational investments[27](index=27&type=chunk) [2. Summary of Significant Accounting Policies](index=9&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines OmniAb, Inc.'s unchanged significant accounting policies and details cash, cash equivalents, and restricted cash balances - The Company's significant accounting policies have not materially changed during the six months ended June 30, 2025, compared to its 2024 Annual Report[31](index=31&type=chunk) Cash, Cash Equivalents, and Restricted Cash (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $18,281 | $27,598 | | Restricted cash | $560 | $560 | | Total cash, cash equivalents and restricted cash | $18,841 | $28,158 | - ASU 2023-09 (Income Taxes) will be effective for the Company in its 2025 Annual Report on Form 10-K and is not expected to have a material impact. ASU 2024-03 (Expense Disaggregation) will be effective for annual periods beginning after December 15, 2026, and its impact is currently being evaluated[36](index=36&type=chunk) [3. Fair Value Measurement](index=10&type=section&id=3.%20Fair%20Value%20Measurement) This note details the Company's fair value measurement hierarchy and the valuation of financial assets and liabilities, including contingent liabilities - The Company uses a three-level valuation hierarchy (Level 1, 2, 3) to measure financial assets and liabilities at fair value[37](index=37&type=chunk) Fair Value Measurements as of June 30, 2025 (in thousands) | Category | Level 1 | Level 2 | Level 3 | Total | | :--- | :--- | :--- | :--- | :--- | | Money market funds | $13,806 | $— | $— | $13,806 | | Government securities | $23,334 | $— | $— | $23,334 | | Current contingent liabilities | $— | $— | $1,123 | $1,123 | | Long-term contingent liabilities | $— | $— | $586 | $586 | - Contingent liabilities are classified as Level 3 due to substantial judgment and estimation of unobservable factors, with fair value adjustments increasing by **$225 thousand** for the six months ended June 30, 2025[41](index=41&type=chunk)[43](index=43&type=chunk) [4. Short-Term Investments](index=12&type=section&id=4.%20Short-Term%20Investments) This note describes the classification and valuation of short-term investments, primarily government securities, and the treatment of unrealized losses - Short-term investments are classified as available-for-sale securities, with government securities being the primary component[44](index=44&type=chunk) Short-Term Investments as of June 30, 2025 (in thousands) | Category | Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | | :--- | :--- | :--- | :--- | :--- | | Government securities | $23,336 | $2 | $(4) | $23,334 | - Unrealized losses on debt securities are not recognized into income because issuers have high credit quality, management does not intend to sell, and fair value is expected to recover as bonds approach maturity[46](index=46&type=chunk) [5. Balance Sheet Account Details](index=14&type=section&id=5.%20Balance%20Sheet%20Account%20Details) This note provides detailed breakdowns of various balance sheet accounts, including receivables, prepaid expenses, property and equipment, and accrued liabilities Accounts Receivable, Unbilled Receivables and Deferred Revenue (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Unbilled receivables | $400 | $2,600 | | Deferred revenue | $1,000 | $2,500 | Prepaid Expenses and Other Current Assets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Prepaid expenses | $2,075 | $2,295 | | xPloration related inventory | $316 | $48 | | Other current assets | $906 | $1,089 | | **Total** | **$3,297** | **$3,432** | Property and Equipment, Net (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Property and equipment, at cost | $28,795 | $28,393 | | Less accumulated depreciation | $(14,731) | $(12,901) | | **Total property and equipment, net** | **$14,064** | **$15,492** | - Depreciation expense for the six months ended June 30, 2025, was **$1.8 million**, down from **$2.1 million** in the prior year[49](index=49&type=chunk) Accrued Expenses and Other Current Liabilities (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Compensation | $4,161 | $5,468 | | Professional service fees | $218 | $324 | | Royalties owed to third parties | $154 | $143 | | Other | $178 | $206 | | **Total** | **$4,711** | **$6,141** | [6. Goodwill and Intangible Assets, Net](index=15&type=section&id=6.%20Goodwill%20and%20Intangible%20Assets,%20Net) This note details the carrying amounts of goodwill and intangible assets, including amortization expenses and a gain from asset sale Goodwill and Intangible Assets, Net (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Goodwill | $83,979 | $83,979 | | Intangible assets, net | $131,605 | $138,060 | | **Total goodwill and other identifiable intangible assets, net** | **$215,584** | **$222,039** | - Goodwill carrying amount remained unchanged during the three and six months ended June 30, 2025 and 2024[52](index=52&type=chunk) - Amortization expense for finite-lived intangible assets was **$6.5 million** for the six months ended June 30, 2025, down from **$8.0 million** in the prior year[53](index=53&type=chunk) - A **$3.0 million gain** from the sale of an ion channel asset to Angelini Pharma S.p.A. was recorded as other operating income, net, during the three months ended June 30, 2025[56](index=56&type=chunk)[57](index=57&type=chunk) [7. Commitments and Contingencies](index=16&type=section&id=7.%20Commitments%20and%20Contingencies) This note outlines future minimum lease commitments and management's assessment of potential impacts from legal claims Future Minimum Lease Commitments as of June 30, 2025 (in thousands) | Dates | Operating Leases | | :--- | :--- | | Remaining six months ended December 31, 2025 | $1,910 | | 2026 | $3,879 | | 2027 | $3,980 | | 2028 | $4,107 | | 2029 | $3,307 | | Thereafter | $7,992 | | **Total lease payments** | **$25,175** | | Less imputed interest | $(3,392) | | **Present value of lease liabilities** | **$21,783** | - Management does not expect resolution of any pending legal claims to have a material adverse impact on the condensed consolidated financial statements, cash flows, or financial position[60](index=60&type=chunk) [8. Stockholders' Equity](index=17&type=section&id=8.%20Stockholders'%20Equity) This note details common stock outstanding, earnout shares, warrants, and the remaining capacity of the ATM offering program - As of June 30, 2025, **122,701,294 shares of common stock** were outstanding, and no preferred stock was issued or outstanding[5](index=5&type=chunk)[11](index=11&type=chunk)[61](index=61&type=chunk) - **14,999,243 Earnout Shares** and **1,293,299 Sponsor Earnout Shares** were issued and outstanding as of June 30, 2025, subject to price-based vesting conditions ($12.50 and $15.00 VWAP)[65](index=65&type=chunk)[66](index=66&type=chunk) - The Company assumed **19,012,156 warrants** (Public, Private Placement, Forward Purchase, Backstop) exercisable at **$11.50 per share**, which are currently 'out of the money'[68](index=68&type=chunk)[142](index=142&type=chunk) - No shares were issued under the ATM offering during the six months ended June 30, 2025, with **$88.3 million** remaining available for future sales[80](index=80&type=chunk)[141](index=141&type=chunk) [9. Share-Based Compensation](index=20&type=section&id=9.%20Share-Based%20Compensation) This note presents share-based compensation expenses and unrecognized compensation for options and restricted stock units Total Share-Based Compensation Expense (in thousands) | Period | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $4,111 | $5,383 | $(1,272) | (24)% | | Six Months Ended June 30 | $8,255 | $11,078 | $(2,823) | (25)% | - Unrecognized share-based compensation expense for OmniAb options was **$21.5 million** (weighted-average period of **1.27 years**) and for OmniAb RSUs was **$6.4 million** (weighted-average period of **1.41 years**) as of June 30, 2025[85](index=85&type=chunk)[89](index=89&type=chunk) - Performance Restricted Stock Units (PRSUs) were achieved at a **158% level** during the six months ended June 30, 2025, with no unrecognized compensation expense remaining[94](index=94&type=chunk) [10. Income Taxes](index=23&type=section&id=10.%20Income%20Taxes) This note details the effective tax rate and explains variances from the U.S. federal statutory tax rate Effective Tax Rate | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months Ended June 30 | (0.8)% | (12.2)% | | Six Months Ended June 30 | 0.0% | (12.2)% | - The variance from the U.S. federal statutory tax rate of **21.0%** is primarily due to a valuation allowance on deferred tax assets and the tax impact of stock award activities, partially offset by research and development tax credits[99](index=99&type=chunk)[137](index=137&type=chunk) [11. Net Loss Per Share](index=23&type=section&id=11.%20Net%20Loss%20Per%20Share) This note provides net loss per share data and lists anti-dilutive shares excluded from diluted EPS calculations Net Loss Per Share, Basic and Diluted | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months Ended June 30 | $(0.15) | $(0.13) | | Six Months Ended June 30 | $(0.32) | $(0.32) | Anti-Dilutive Shares Excluded from Diluted EPS (in thousands) | Category | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Options to purchase common stock | 23,654 | 22,236 | | Earnout shares | 16,293 | 16,293 | | Private placement warrants | 8,233 | 8,233 | | Public warrants | 7,667 | 7,667 | | Restricted stock units | 2,028 | 2,180 | | Forward purchase warrants | 1,667 | 1,667 | | Backstop warrants | 1,445 | 1,445 | | Shares expected to be purchased under ESPP | 1,037 | 862 | | **Total anti-dilutive shares** | **62,023** | **60,583** | [12. Segment Information](index=24&type=section&id=12.%20Segment%20Information) This note confirms OmniAb operates as a single reportable segment and provides segment revenue and net loss data - OmniAb operates under one reportable business segment, providing discovery research technology[104](index=104&type=chunk) Segment Revenue and Net Loss (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $3,897 | $7,614 | | Net loss | $(15,875) | $(13,631) | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $8,051 | $11,415 | | Net loss | $(34,075) | $(32,592) | - All long-term assets and net losses are attributable to the United States of America[106](index=106&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on OmniAb, Inc.'s financial condition and results of operations for the three and six months ended June 30, 2025, compared to the prior year. It covers an overview of the business, key performance metrics, detailed revenue and expense analysis, liquidity, capital resources, and critical accounting policies [Overview](index=25&type=section&id=Overview) This section describes OmniAb's core business of licensing discovery research technology and its Biological Intelligence™ platform for therapeutic development - OmniAb licenses cutting-edge discovery research technology, utilizing its Biological Intelligence™ platform and engineered transgenic animals to identify optimal antibodies for partners' drug development[111](index=111&type=chunk) - The platform integrates in silico, artificial intelligence, and machine learning tools for therapeutic discovery and optimization[114](index=114&type=chunk) Partnered Programs as of June 30, 2025 | Metric | Count | | :--- | :--- | | Active Partners | 100 | | Active Programs | 381 | | OmniAb-derived antibodies in clinical development | 28 | | OmniAb-derived antibodies under regulatory review | 1 | | Approved products developed by partners | 3 | - The long-term value of the business is expected to be driven by royalties, while shorter-term revenue is primarily from milestones[118](index=118&type=chunk) [Key Business Metrics](index=26&type=section&id=Key%20Business%20Metrics) This section presents key operational metrics, showing an increase in active partners and programs for OmniAb, Inc Key Business Metrics (June 30, 2025 vs. December 31, 2024) | Metric | December 31, 2024 | Additions | Terminations | June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Active Partners | 91 | 13 | (4) | 100 | | Active Programs | 363 | 45 | (27) | 381 | | Active Clinical Programs and Approved Products | 32 | 2 | (2) | 32 | | Approved Products | 3 | — | — | 3 | - Active partners increased by **9**, and active programs increased by **18**, indicating continued usage and market penetration of the technology[120](index=120&type=chunk)[121](index=121&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) This section analyzes OmniAb, Inc.'s revenue and operating expenses, highlighting a significant decline in total revenue and reduced R&D costs Revenue Comparison (in thousands) | Revenue Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | License and milestone revenue | $1,242 | $3,125 | $(1,883) | (60)% | | Service revenue | $1,936 | $4,171 | $(2,235) | (54)% | | xPloration revenue | $608 | $— | $608 | 100% | | Royalty revenue | $111 | $318 | $(207) | (65)% | | **Total revenue** | **$3,897** | **$7,614** | **$(3,717)** | **(49)%** | | Revenue Type | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | License and milestone revenue | $3,263 | $3,841 | $(578) | (15)% | | Service revenue | $3,839 | $6,937 | $(3,098) | (45)% | | xPloration revenue | $650 | $— | $650 | 100% | | Royalty revenue | $299 | $637 | $(338) | (53)% | | **Total revenue** | **$8,051** | **$11,415** | **$(3,364)** | **(29)%** | - Service revenue declined primarily due to the discontinuation of a small molecule ion channel program and related revenue acceleration in the prior year[128](index=128&type=chunk)[129](index=129&type=chunk) Costs and Operating Expenses Comparison (in thousands) | Expense Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Research and development | $10,864 | $13,935 | $(3,071) | (22)% | | General and administrative | $7,684 | $7,965 | $(281) | (4)% | | Other operating income, net | $(1,922) | $(2,524) | $602 | (24)% | | **Total costs and operating expenses** | **$20,116** | **$23,919** | **$(3,803)** | **(16)%** | | Expense Type | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Research and development | $23,466 | $28,486 | $(5,020) | (18)% | | General and administrative | $15,599 | $16,302 | $(703) | (4)% | | Other operating income, net | $(2,672) | $(2,470) | $(202) | 8% | | **Total costs and operating expenses** | **$43,114** | **$50,273** | **$(7,159)** | **(14)%** | - Research and development expenses decreased due to lower personnel expenses (share-based compensation, headcount) and reduced external expenses related to ion channel programs and screening technology development[133](index=133&type=chunk)[134](index=134&type=chunk) - Other operating income, net for the three months ended June 30, 2025, includes a **$3.0 million gain** from the sale of a small molecule Kv7.2 program to Angelini Pharma S.p.A., partially offset by a **$1.0 million contingent liability adjustment**[133](index=133&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses OmniAb, Inc.'s financial liquidity, highlighting available cash, investment capacity, and cash flow activities - As of June 30, 2025, cash, cash equivalents, and short-term investments totaled **$41.6 million**, deemed sufficient to support operations for at least the next 12 months[139](index=139&type=chunk) - The Company has an 'at the market' (ATM) offering program with **$88.3 million** remaining available for future sales of common stock[141](index=141&type=chunk) - Warrants are currently 'out of the money' (exercise price **$11.50 per share**), limiting expected cash proceeds from their exercise[142](index=142&type=chunk) Cash Flow Summary (Six Months Ended June 30, in thousands) | Activity | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | $(21,018) | $(29,214) | $8,196 | | Net cash provided by investing activities | $11,421 | $33,050 | $(21,629) | | Net cash provided by financing activities | $280 | $600 | $(320) | [Critical Accounting Policies and Estimates](index=32&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section confirms no material changes to OmniAb, Inc.'s critical accounting policies and estimates during the reporting period - There have been no material changes to critical accounting policies and estimates during the six months ended June 30, 2025, compared to the 2024 Annual Report[151](index=151&type=chunk) [Recent Accounting Pronouncements](index=32&type=section&id=Recent%20Accounting%20Pronouncements) This section directs readers to Note 2 for details on recent accounting pronouncements relevant to OmniAb, Inc - For a summary of recent accounting pronouncements, refer to Note 2 – Summary of Significant Accounting Policies in the financial statements[152](index=152&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures about Market Risk](index=32&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section states that there have been no material changes to OmniAb, Inc.'s market risks as of June 30, 2025, compared to the disclosures in its 2024 Annual Report - No material changes to market risks as of June 30, 2025, compared to the discussion in Item 7A of the 2024 Annual Report[153](index=153&type=chunk) [ITEM 4. Controls and Procedures](index=32&type=section&id=ITEM%204.%20Controls%20and%20Procedures) This section details the evaluation of OmniAb, Inc.'s disclosure controls and procedures, concluding their effectiveness at a reasonable assurance level as of June 30, 2025, with no material changes to internal control over financial reporting during the last fiscal quarter [Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures](index=32&type=section&id=Conclusion%20Regarding%20the%20Effectiveness%20of%20Disclosure%20Controls%20and%20Procedures) This section concludes that OmniAb, Inc.'s disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025 - Management, including the principal executive officer and principal financial officer, concluded that disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2025[156](index=156&type=chunk) [Changes in Internal Control Over Financial Reporting](index=33&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section reports no material changes to OmniAb, Inc.'s internal control over financial reporting during the last fiscal quarter - There have been no changes in internal control over financial reporting during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting[157](index=157&type=chunk) [PART II. OTHER INFORMATION](index=34&type=section&id=PART%20II.%20OTHER%20INFORMATION) [ITEM 1. Legal Proceedings](index=34&type=section&id=ITEM%201.%20Legal%20Proceedings) OmniAb, Inc. is not currently a party to any legal proceedings expected to have a material adverse effect on its business, financial condition, or results of operations, though litigation inherently carries uncertainties - The Company is not currently a party to or aware of any proceedings that are believed to have, individually or in the aggregate, a material adverse effect on its business, financial condition, or results of operations[161](index=161&type=chunk) [ITEM 1A. Risk Factors](index=34&type=section&id=ITEM%201A.%20Risk%20Factors) This section highlights that while no material changes to previously disclosed risk factors are noted, new government healthcare reforms and legislative measures, such as the One Big Beautiful Bill Act, could adversely affect OmniAb's business and its partners' product sales - No material changes to the risk factors disclosed in Part I, Item 1A of the 2024 Annual Report, except for new government healthcare reform and other legislative measures[162](index=162&type=chunk) - The 'One Big Beautiful Bill Act,' enacted in July 2025, imposes significant reductions in Medicaid funding, which could adversely affect partners' sales of their products[165](index=165&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section indicates that there were no unregistered sales of equity securities or use of proceeds to report for the period - No unregistered sales of equity securities and no use of proceeds to report[166](index=166&type=chunk) [ITEM 3. Defaults Upon Senior Securities](index=34&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities to report for the period - No defaults upon senior securities to report[167](index=167&type=chunk) [ITEM 4. Mine Safety Disclosures](index=34&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to OmniAb, Inc.'s operations - Mine Safety Disclosures are not applicable to the Company[168](index=168&type=chunk) [ITEM 5. Other Information](index=34&type=section&id=ITEM%205.%20Other%20Information) This section reports on Rule 10b5-1 trading arrangements, noting that no officers or directors adopted, modified, or terminated such arrangements during the three months ended June 30, 2025 - No officers or directors adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[170](index=170&type=chunk) [ITEM 6. Exhibits](index=36&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including various agreements, corporate documents, warrant information, and certifications required by the Sarbanes-Oxley Act [SIGNATURES](index=37&type=section&id=SIGNATURES) This section contains the required signatures for the Form 10-Q, certifying its submission on behalf of OmniAb, Inc. by its Executive Vice President, Finance and Chief Financial Officer - The report was signed on August 6, 2025, by Kurt Gustafson, Executive Vice President, Finance and Chief Financial Officer (Principal Financial and Accounting Officer)[175](index=175&type=chunk)

Q2 2025 Highlights - OmniAb sold and installed xPloration instrument shortly after launch, with strong partner interest[11] - Partner pipeline advancement continued[11] - Deal flow and new partner additions are accelerating[11] - Outlook for 2025 remains on track[11] Partnership and Programs - The company has 100 active partners as of June 30, 2025, with 54% in the US, 25% in Europe, 20% in Asia, and 1% in the Middle East[12, 13] - Active programs totaled 381 as of June 30, 2025, a net addition of 18 programs year-to-date[16, 18] - Approximately 99% of active programs have contracted future economics to OmniAb[21] - Antibody Standard Licenses account for 90% of active programs[20] - Total remaining milestones for Antibody Standard Licenses are greater than $3 billion, with an average royalty rate of 3.36%[21] - Post-discovery stage programs have grown by 22% over the last 12 months[24] - There are 32 active clinical programs and approved products as of June 30, 2025[27, 29] Financial Performance - Q2 2025 total revenue was $3.9 million, compared to $7.6 million in Q2 2024[49, 54] - Q2 2025 license and milestone revenue was $1.2 million, down from $3.1 million in Q2 2024[54] - Q2 2025 service revenue was $1.9 million, down from $4.2 million in Q2 2024[54] - Q2 2025 xPloration revenue was $0.6 million[54] - Q2 2025 royalty revenue was $0.1 million, down from $0.3 million in Q2 2024[54] - Q2 2025 net loss was $15.9 million, compared to a net loss of $13.6 million in Q2 2024[54] 2025 Guidance - Revenue is expected to be in the range of $20 million to $25 million[57] - Operating expense is expected to be in the range of $85 million to $90 million[57]

[Company Overview](index=1&type=section&id=Company%20Overview) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Matt Foehr highlighted strong business performance, reaching 100 active partners, and the launch of the xPloration Partner Access Program, emphasizing innovation, scalability, and potential for revenue diversification - Reached **100 active partners** in Q2 2025, indicating strong momentum and execution[2](index=2&type=chunk) - Streamlining operations enhances scalability and long-term value of the business[2](index=2&type=chunk) - Launched the xPloration Partner Access Program to expand and diversify revenue streams[2](index=2&type=chunk) [About OmniAb](index=4&type=section&id=About%20OmniAb) OmniAb licenses cutting-edge discovery research technology, including its Biological Intelligence™ platform and proprietary transgenic animals, to pharmaceutical and biotech companies for next-generation therapeutics. Its business model includes upfront/access fees, service revenue, milestones, and royalties - OmniAb licenses discovery research technology to pharmaceutical, biotech, and academic institutions to enable the discovery of next-generation therapeutics[25](index=25&type=chunk) - The core platform, Biological Intelligence™, powers engineered transgenic animals to create optimized antibody candidates for human therapeutics[25](index=25&type=chunk) - Business model aligns scientific and economic interests through structured agreements including upfront/access fees, service revenue, milestones, and royalties on commercial sales[25](index=25&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) [Second Quarter 2025 Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) OmniAb reported Q2 2025 revenue of $3.9 million, a decrease from $7.6 million for the same period in 2024, primarily due to declines in license, milestone, and service revenue, partially offset by new xPloration revenue. Net loss increased to $15.9 million from $13.6 million year-over-year | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (YoY) | | :----------------------- | :--------------------- | :--------------------- | :----------- | | Total Revenue | $3,897 | $7,614 | -48.8% | | License & Milestone Revenue | $1,242 | $3,125 | -60.3% | | Service Revenue | $1,936 | $4,171 | -53.6% | | xPloration Revenue | $608 | $0 | N/A | | Royalty Revenue | $111 | $318 | -65.1% | | Net Loss | $(15,875) | $(13,631) | +16.5% | | Net Loss Per Share | $(0.15) | $(0.13) | +15.4% | - Decrease in license and milestone revenue primarily due to a **$1.8 million decline** in milestone revenue[3](index=3&type=chunk) - Research and development expense decreased to **$10.9 million** from **$13.9 million**, mainly due to lower share-based compensation, reduced headcount, and lower external expenses for small-molecule ion channel programs[4](index=4&type=chunk) - Cash use in the second quarter of 2025 was **$2.0 million**[6](index=6&type=chunk) [Year-to-Date 2025 Financial Results](index=2&type=section&id=Year-to-Date%202025%20Financial%20Results) For the first half of 2025, OmniAb's revenue was $8.1 million, down from $11.4 million in the same period of 2024, driven by declines in milestone and service revenue, partially offset by xPloration revenue. Net loss for the period was $34.1 million, compared to $32.6 million in H1 2024 | Metric | H1 2025 (in thousands) | H1 2024 (in thousands) | Change (YoY) | | :----------------------- | :--------------------- | :--------------------- | :----------- | | Total Revenue | $8,051 | $11,415 | -29.5% | | License & Milestone Revenue | $3,263 | $3,841 | -15.0% | | Service Revenue | $3,839 | $6,937 | -44.7% | | xPloration Revenue | $650 | $0 | N/A | | Royalty Revenue | $299 | $637 | -53.1% | | Net Loss | $(34,075) | $(32,592) | +4.5% | | Net Loss Per Share | $(0.32) | $(0.32) | 0.0% | - Research and development expense decreased to **$23.5 million** from **$28.5 million**, primarily due to lower share-based compensation, reduced headcount, and lower external expenses associated with small-molecule ion channel programs and screening technology development[8](index=8&type=chunk) - As of June 30, 2025, OmniAb had cash, cash equivalents and short-term investments of **$41.6 million**[9](index=9&type=chunk) [2025 Financial Guidance](index=2&type=section&id=2025%20Financial%20Guidance) OmniAb affirmed its 2025 revenue guidance of $20 million to $25 million and costs and operating expense guidance of $85 million to $90 million. The company expects lower cash use in 2025 compared to $38.9 million in 2024 (excluding ATM issuance) | Metric | 2025 Guidance | 2024 Actual (for comparison) | | :-------------------------- | :-------------------- | :--------------------------- | | Revenue | $20M - $25M | N/A | | Costs & Operating Expense | $85M - $90M | N/A | | Cash Use | Lower than 2024 | $38.9M (excl. ATM issuance) | | Full Year Effective Tax Rate | ~0% | N/A | [Business and Partner Highlights](index=2&type=section&id=Business%20and%20Partner%20Highlights) [Strategic Initiatives and Partner Growth](index=2&type=section&id=Strategic%20Initiatives%20and%20Partner%20Growth) OmniAb continued strong partner growth in Q2 2025, adding six new license agreements and one asset-based sale, bringing the total active partners to 100. The company also launched the xPloration Partner Access Program, a high-throughput single B-cell screening instrument leveraging AI and machine learning - Entered into **six new license agreements** and **one asset-based sale** during the second quarter of 2025[11](index=11&type=chunk) - As of June 30, 2025, the Company had **100 active partners** and **381 active programs**, including **32 OmniAb-derived programs** in clinical development or being commercialized[12](index=12&type=chunk) - The asset-based sale with Angelini Pharma for the small molecule Kv7.2 program included an upfront payment of **$3 million** and potential milestones of over **$170 million** and royalties[11](index=11&type=chunk) [Key Program Updates](index=3&type=section&id=Key%20Program%20Updates) OmniAb's partners reported significant progress across various programs, including clinical trial advancements, regulatory designations, and strategic partnerships for several therapeutic candidates [xPloration](index=3&type=section&id=xPloration) OmniAb launched the xPloration Partner Access Program, a high-throughput single B-cell screening instrument leveraging AI and machine learning, which was awarded "2025 Best of Show" at the PEGS Boston Conference and Expo - OmniAb launched the xPloration Partner Access Program in May, a high-throughput single B-cell screening instrument[18](index=18&type=chunk) - xPloration leverages machine learning and artificial intelligence to address challenges in primary B-cell screening, offering unmatched throughput, superior hit recovery, and exceptional ease-of-use[18](index=18&type=chunk) - xPloration was awarded '**2025 Best of Show**' at the 21st Annual PEGS Boston Conference and Expo[18](index=18&type=chunk) [IMVT-1402](index=3&type=section&id=IMVT-1402) Immunovant initiated recruitment for a Phase 3 study of IMVT-1402 in generalized myasthenia gravis and is enrolling patients in potentially registrational trials for chronic inflammatory demyelinating polyneuropathy, Graves' disease, rheumatoid arthritis, and Sjogren's disease, with a new proof-of-concept study in cutaneous lupus erythematosus - Immunovant started recruitment for a randomized, placebo-controlled, double-blind Phase 3 study to assess the efficacy and safety of IMVT-1402 in patients with mild-to-severe generalized myasthenia gravis[18](index=18&type=chunk) - Immunovant is also enrolling patients in potentially registrational trials of IMVT-1402 in chronic inflammatory demyelinating polyneuropathy, Graves' disease, difficult-to-treat rheumatoid arthritis and Sjogren's disease[18](index=18&type=chunk) - A proof-of-concept study has been initiated for IMVT-1402 in a sixth indication, cutaneous lupus erythematosus[18](index=18&type=chunk) [TEV-53408](index=3&type=section&id=TEV-53408) Teva Pharmaceutical received FDA Fast Track designation for investigational TEV-53408, an anti-IL15 antibody, for the treatment of celiac disease. It is currently in Phase 2a and Phase 1 clinical trials for celiac disease and vitiligo, respectively - Teva Pharmaceutical announced that the U.S. FDA granted **Fast Track designation** for investigational TEV-53408, an anti-IL15 antibody, for the treatment of people with celiac disease on a gluten-free diet[15](index=15&type=chunk) - TEV-53408 is currently being evaluated in Phase 2a and Phase 1 clinical trials to assess efficacy and safety in adults with celiac disease and vitiligo, respectively[15](index=15&type=chunk) [TEV-56278](index=3&type=section&id=TEV-56278) Teva Pharmaceutical and Shanghai Fosun Pharmaceutical formed a strategic partnership for the development of investigational TEV-56278, an anti-PD1-IL2 ATTENUKINE therapy, which offers a new mechanism of action for oncology indications - Teva Pharmaceutical and Shanghai Fosun Pharmaceutical entered into a strategic partnership for the development of investigational TEV-56278, an anti-PD1-IL2 ATTENUKINE therapy[16](index=16&type=chunk) - Teva's proprietary ATTENUKINE technology provides a new mechanism of action, potentially offering high efficacy and low toxicity in a broad array of oncology indications[16](index=16&type=chunk) [JNJ-5322](index=3&type=section&id=JNJ-5322) Johnson & Johnson presented initial Phase 1 results for JNJ-5322, a next-generation trispecific T-cell redirecting antibody, showing a 100% overall response rate at the recommended Phase 2 dose in anti-BCMA/-GPRC5D naïve multiple myeloma patients, suggesting a potential paradigm shift as an off-the-shelf therapy - Johnson & Johnson presented initial Phase 1 results of JNJ-5322, a next-generation trispecific T-cell redirecting antibody, in patients with relapsed or refractory multiple myeloma[17](index=17&type=chunk) - JNJ-5322 demonstrated a **100% overall response rate (ORR)** at the recommended Phase 2 dose of 100 mg in anti-BCMA/-GPRC5D naïve patients[17](index=17&type=chunk) - Initial data with JNJ-5322 suggest a paradigm shift, offering ORRs similar to CAR-Ts but as an off-the-shelf therapy intended for outpatient dosing[17](index=17&type=chunk) [M9140](index=4&type=section&id=M9140) Merck KGaA presented promising Phase 1 data for M9140, a novel antibody-drug conjugate, in metastatic colorectal cancer (mCRC), showing a 31% ORR and 6.9 months mPFS, comparing favorably to current standard of care. A Phase 1b/2 study design for M9140 in various solid tumors was also presented - Merck KGaA presented data on M9140, a novel antibody-drug conjugate, in the Phase 1 PROCEADE-CRC-01 study for metastatic colorectal cancer (mCRC)[24](index=24&type=chunk) - M9140 showed a **31% ORR** (17.2% confirmed) and median progression-free survival (mPFS) of **6.9 months** at 2.8 mg/kg, comparing favorably with current monotherapy standard of care in 3L+ mCRC[24](index=24&type=chunk) - Merck KGaA also presented the PROCEADE PanTumor Phase 1b/2 clinical trial study design, assessing M9140 as monotherapy or in combination for advanced/metastatic gastric cancer, NSCLC, and pancreatic adenocarcinoma[24](index=24&type=chunk) [Sugemalimab](index=4&type=section&id=Sugemalimab) CStone Pharmaceuticals published long-term survival data for sugemalimab in The Lancet Oncology from its Phase 3 GEMSTONE-302 trial for NSCLC. CStone also partnered with Istituto Gentili for sugemalimab's commercialization across Western Europe and the UK - CStone Pharmaceuticals announced the publication of long-term survival data from its Phase 3 GEMSTONE-302 trial for sugemalimab combined with platinum-based chemotherapy as a first-line treatment for NSCLC in The Lancet Oncology[24](index=24&type=chunk) - This marks the trial's third publication in a top-tier journal[24](index=24&type=chunk) - CStone Pharmaceuticals also announced an exclusive partnership with Istituto Gentili to commercialize sugemalimab across Western Europe and the UK[24](index=24&type=chunk) [BC3195](index=4&type=section&id=BC3195) BioCity presented data on BC3195, a first-in-human antibody-drug conjugate targeting CDH3, demonstrating a manageable safety profile, favorable pharmacokinetics, and impressive preliminary antitumor activity with a 50% ORR in heavily pretreated NSCLC patients - BioCity presented data on BC3195, a first-in-human antibody-drug conjugate targeting CDH3, at the ASCO Annual Meeting[21](index=21&type=chunk) - BC3195 demonstrated a manageable safety profile and favorable pharmacokinetics[21](index=21&type=chunk) - Achieved an impressive preliminary antitumor activity with an **ORR of 50%** in heavily pretreated NSCLC patients, most of whom had EGFR mutations[21](index=21&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, OmniAb reported total assets of $295.7 million, a decrease from $325.6 million at December 31, 2024. Current assets, particularly cash and short-term investments, saw a notable decline. Total liabilities also decreased, while stockholders' equity decreased from $287.6 million to $262.1 million | Asset/Liability/Equity | June 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | Change | | :-------------------------------- | :--------------------------- | :-------------------------- | :----- | | **ASSETS** | | | | | Cash and cash equivalents | $18,281 | $27,598 | $(9,317) | | Short-term investments | $23,334 | $31,836 | $(8,502) | | Total current assets | $47,618 | $68,138 | $(20,520) | | Total assets | $295,674 | $325,558 | $(29,884) | | **LIABILITIES** | | | | | Total current liabilities | $12,638 | $15,088 | $(2,450) | | Total liabilities | $33,610 | $37,940 | $(4,330) | | **STOCKHOLDERS' EQUITY** | | | | | Total stockholders' equity | $262,064 | $287,618 | $(25,554) | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, OmniAb reported a net loss of $15.9 million on $3.9 million revenue. Year-to-date, the net loss was $34.1 million on $8.1 million revenue. Revenue declined significantly year-over-year for both periods, while operating expenses saw some reductions, particularly in R&D | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | H1 2025 (in thousands) | H1 2024 (in thousands) | | :-------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Total Revenue | $3,897 | $7,614 | $8,051 | $11,415 | | Cost of xPloration revenue | $262 | $0 | $265 | $0 | | Research and development | $10,864 | $13,935 | $23,466 | $28,486 | | General and administrative | $7,684 | $7,965 | $15,599 | $16,302 | | Loss from operations | $(16,219) | $(16,305) | $(35,063) | $(38,858) | | Net loss | $(15,875) | $(13,631) | $(34,075) | $(32,592) | | Net loss per share | $(0.15) | $(0.13) | $(0.32) | $(0.32) | [Supplementary Information](index=4&type=section&id=Supplementary%20Information) [Conference Call and Webcast Details](index=4&type=section&id=Conference%20Call%20and%20Webcast%20Details) OmniAb management was scheduled to host a conference call with accompanying slides on August 6, 2025, at 4:30 p.m. Eastern Time to discuss the announcement - OmniAb management hosted a conference call with accompanying slides on August 6, 2025, at 4:30 p.m. Eastern time[22](index=22&type=chunk) - Slides, as well as the live and replay webcast, are available at https://investors.omniab.com/investors/events-and-presentations/default.aspx[22](index=22&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements based on current beliefs and expectations, subject to various risks and uncertainties inherent in OmniAb's business, including dependence on partner acceptance, biopharmaceutical development uncertainties, technological changes, and competitive environment - Forward-looking statements include those regarding competitive advantage, business growth, scalability, xPloration program performance, partner additions, and 2025 financial guidance[27](index=27&type=chunk) - Actual results may differ due to risks such as dependence on partner acceptance and development, biopharmaceutical development uncertainties, and the competitive environment in the life sciences and biotechnology platform market[27](index=27&type=chunk) - Readers are cautioned not to place undue reliance on these statements, which speak only as of the date of the release[27](index=27&type=chunk) [Partner Information and Contacts](index=6&type=section&id=Partner%20Information%20and%20Contacts) Information regarding partnered products and programs is sourced from publicly released partner information. Contact details for OmniAb investor relations are provided - Information in this press release regarding partnered products and programs comes from information publicly released by OmniAb's partners[28](index=28&type=chunk) - Contact information for OmniAb, Inc. investors and Alliance Advisors IR is provided[28](index=28&type=chunk)

Business Highlights - OmniAb had 95 active partners as of March 31, 2025[13, 15] - The company reported 378 active programs as of March 31, 2025, with over 98% having contracted future economics to OmniAb[17, 19] - OmniAb had 33 active clinical programs and approved products as of March 31, 2025[20, 22] - One new OmniAb-derived program, Genmab's GEN1078, entered a first-in-human clinical trial in Q1[24] - Post-discovery stage programs grew by 39% over the last 24 months[25] - OmniAb launched the xPloration Partner Access Program, expecting it to be accretive to earnings and cash flow in both the short- and long-term[11, 67] Financial Performance - Q1 2025 total revenue increased to $4.2 million compared to $3.8 million in Q1 2024, driven by license and milestone revenue[73, 75, 79] - License and milestone revenue was $2.0 million in Q1 2025, compared to $0.7 million in Q1 2024[79] - Service revenue decreased to $1.9 million in Q1 2025 from $2.8 million in Q1 2024[79] - Q1 2025 net loss was $18.2 million, compared to a net loss of $19.0 million in Q1 2024[79] - OmniAb is affirming revenue guidance of $20 million to $25 million for 2025[82] - Operating expense guidance revised to be in the range of $85 million to $90 million for 2025[82]

Company Performance - OmniAb, Inc. reported a quarterly loss of $0.17 per share, which aligns with the Zacks Consensus Estimate, and is an improvement from a loss of $0.19 per share a year ago [1] - The company posted revenues of $4.15 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 11.50%, but showing an increase from $3.8 million in the same quarter last year [2] - Over the last four quarters, OmniAb has surpassed consensus EPS estimates two times and has also topped consensus revenue estimates two times [2][3] Stock Performance - OmniAb shares have declined approximately 56.8% since the beginning of the year, contrasting with the S&P 500's decline of 4.3% [3] - The company's current Zacks Rank is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.16 on revenues of $5.55 million, and for the current fiscal year, it is -$0.62 on revenues of $24.17 million [7] - The outlook for the Medical - Drugs industry, to which OmniAb belongs, is currently in the top 26% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 increased to $4.2 million from $3.8 million in Q1 2024, primarily due to higher milestone revenue from GENmAb's clinical program [24] - Operating expenses decreased to $23 million from $26.4 million year-over-year, with R&D expenses at $12.6 million compared to $14.6 million in the previous year [25] - Net loss for Q1 2025 was $18.2 million or $0.17 per share, compared to a net loss of $19 million or $0.19 per share in Q1 2024 [26] Business Line Data and Key Metrics Changes - The number of active partners grew to 95, with new deals signed with Harvard's Weiss Institute, Takis Biotech, and Orion Corporation [9] - Total active programs increased to 378 by the end of Q1 2025, with 33 active clinical programs and approved products [10][11] - The portfolio of post-discovery stage assets has increased by over 39% in the last two years [12] Market Data and Key Metrics Changes - The company expects to see 5 to 7 new entries into clinical development for the year [11] - The exploration partner access program was launched, allowing partners to purchase exploration instruments for their labs, which is anticipated to create new revenue streams [15][21] Company Strategy and Development Direction - The company remains focused on driving innovation in drug discovery and enhancing its technology offerings [7] - The launch of the exploration partner access program is seen as a strategic enhancement to existing offerings, aimed at expanding revenue sources [22] - The company is committed to long-term profitability and value creation through consistent innovation and efficiency [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong start to 2025, with continued deal flow and a growing pipeline of partnered programs [6] - The company views the recent FDA announcement regarding animal testing as potentially beneficial for the industry, facilitating faster entry of antibody-based medicines into clinical trials [68] Other Important Information - The company implemented a reduction in force in early February, resulting in an additional cash outlay of approximately $1 million in Q1 2025 [27] - Guidance for 2025 revenue is expected to be between $20 million and $25 million, excluding contributions from the exploration program [28] Q&A Session Summary Question: Trends in the number of programs started this quarter - Management noted strong momentum in new program additions, driven by continued innovation and the launch of new technologies [32][34] Question: Details on the exploration platform and associated costs - The exploration partner access program is exclusively for existing partners, and the company has planned for its launch within their financial framework [36][37] Question: Revenue opportunity and impact of tariffs - Management indicated that tariffs do not significantly impact the business, as most components are sourced and manufactured in the U.S. [55][56] Question: Future expansion of the exploration program to new partners - New partners will also have access to the exploration platform as they sign up, and the company has deep relationships with existing partners to target the best candidates [62] Question: Impact of FDA decisions on business prospects - The FDA's announcement is seen as a positive development that could streamline timelines and reduce costs for antibody-based medicines [68] Question: Plans for additional AI-driven platform offerings - The company is focused on leveraging AI and big data management across its platforms, with exploration serving as a key data generation tool [75]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 increased to $4.2 million from $3.8 million in Q1 2024, primarily due to higher milestone revenue from GENmAb's clinical program [24] - Operating expenses decreased to $23 million from $26.4 million year-over-year, with R&D expenses down to $12.6 million from $14.6 million [25] - Net loss for Q1 2025 was $18.2 million or $0.17 per share, compared to a net loss of $19 million or $0.19 per share in Q1 2024 [26] Business Line Data and Key Metrics Changes - The number of active partners grew to 95, with new deals signed with Harvard's Weiss Institute, Takis Biotech, and Orion Corporation [9] - Total active programs increased to 378, with 33 active clinical programs and approved products as of the end of Q1 [10][11] - The company expects 5 to 7 new entries into clinical development for the year [11] Market Data and Key Metrics Changes - The exploration partner access program was launched, allowing partners to purchase exploration instruments for their labs, indicating a strategic move to enhance partner offerings [7][15] - The company anticipates that the exploration program will create new revenue streams and enhance partner workflows [21][46] Company Strategy and Development Direction - The company remains focused on driving innovation in drug discovery and enhancing its technology offerings [7][8] - The launch of the exploration partner access program is seen as a strategic enhancement to the existing offerings, aimed at creating long-term value for stakeholders [22] - The company is committed to growing its business with a focus on value creation and long-term profitability [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong start to 2025, with continued deal flow and a growing pipeline of partnered programs [6] - The company noted that the FDA's recent announcement regarding animal testing could streamline the entry of antibody-based medicines into the clinic, potentially benefiting the industry [68] Other Important Information - The company implemented a reduction in force in early February, resulting in an additional cash outlay of approximately $1 million in Q1, but expects lower expenses going forward [27] - The guidance for 2025 revenue remains between $20 million and $25 million, excluding contributions from the exploration program [28] Q&A Session Summary Question: What trends contributed to the strong number of program starts this quarter? - Management attributed the strong program starts to continued innovation and the launch of new technologies, with existing partners also starting new programs [32] Question: Is the exploration platform exclusively for existing partners? - Yes, the exploration partner access program is available only to partners within the OmniAb ecosystem [35] Question: What are the potential revenue opportunities from the exploration program? - Management indicated that while specific numbers are difficult to predict, early feedback from partners has been positive, and the program is expected to create new revenue streams [40][46] Question: How does the FDA's decision to move away from animal testing impact the business? - Management clarified that the FDA's announcement is separate from their offerings, but it could facilitate faster entry of antibody-based medicines into the clinic, which is seen as a potential benefit [68] Question: Will there be additional AI-driven platform offerings for customers? - Management confirmed that there are ongoing efforts to build out additional computational and AI-driven offerings, leveraging the data generated from the exploration platform [72]

Financial Data and Key Metrics Changes - Revenue increased to $4.2 million in Q1 2025 from $3.8 million in Q1 2024, primarily due to higher milestone revenue from GenmAb's clinical program [24] - Operating expenses decreased to $23 million from $26.4 million year-over-year, with R&D expenses down to $12.6 million from $14.6 million [25] - Net loss for Q1 2025 was $18.2 million or $0.17 per share, compared to a net loss of $19 million or $0.19 per share in Q1 2024 [26] Business Line Data and Key Metrics Changes - The number of active partners grew to 95, with new deals signed with Harvard's Weiss Institute, Takis Biotech, and Orion Corporation [8] - Total active programs increased to 378, with 33 active clinical programs and approved products as of the end of Q1 [10] Market Data and Key Metrics Changes - The company expects to receive a $3 million upfront payment from Angelini Pharma, with potential milestones exceeding $170 million [9] - The portfolio of post-discovery stage assets has increased by over 39% in the last two years [11] Company Strategy and Development Direction - The launch of the exploration partner access program aims to enhance partner workflows and create new revenue streams [14][21] - The company remains focused on licensing novel discovery technology to the pharmaceutical industry, which is the foundation of its strategy [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong deal flow and the robustness of new partnerships despite broader industry challenges [5] - The company anticipates that the exploration program will be accretive to earnings and cash flow in both the short and long term [23] Other Important Information - The company implemented a reduction in force in early February, resulting in an additional cash outlay of approximately $1 million in Q1 [27] - Guidance for 2025 revenue remains between $20 million and $25 million, excluding contributions from the exploration program [28] Q&A Session Summary Question: What attributed to the strong number of program starts this quarter? - Management noted that continued innovation and the launch of new technologies have driven interest from both new and existing partners [30][31] Question: Is the exploration platform exclusively for existing partners? - Yes, the exploration partner access program is available only to partners within the OmniAb ecosystem [35] Question: Can you provide any benchmarks for potential partners for the exploration program? - Management indicated that while it is difficult to provide exact numbers, they have deep relationships with partners and are targeting those most likely to benefit from the exploration instruments [42] Question: What are the key differentiators of the exploration platform? - Key differentiators include ease of use, high efficiency, and the absence of fluidics, which reduces maintenance issues [48] Question: How do tariffs impact the business? - Management stated that there are minimal impacts from tariffs as the exploration instrument and most parts are manufactured in the U.S. [51] Question: Will new partners also have access to the exploration platform? - Yes, new partners will have access to the exploration platform as they sign up [58]