Champions Oncology(CSBR) - 2025 Q4 - Annual Results

Overall Financial Performance Champions Oncology achieved record annual revenue and significant profitability in fiscal year 2025, driven by strategic growth Executive Summary & Highlights 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] - The company is optimistic about fiscal 2026, citing a strong pipeline for continued revenue growth and further monetization of its data offerings[2] Fourth Quarter Fiscal 2025 Financial Results 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] - General and administrative expenses decreased by 9% to $2.5 million, mainly due to lower overall compensation and reduced recruiting fees[7] - The company ended the quarter with a cash position of $9.8 million and no debt[8] Full Fiscal Year 2025 Financial Results 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] - Research and development expenses declined by 28% to $6.8 million due to reduced investment in non-essential services[13] - Gross margin improved significantly to 50% from 41%, attributed to higher revenue, operational efficiencies, and the contribution from high-margin data revenue[12] Detailed Financial Statements This section provides a comprehensive overview of the company's financial position, operational results, and cash flows Consolidated Statements of Operations 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 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 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 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 This section provides essential details about the company's business, upcoming events, and important disclaimers Company Overview 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] - Core assets include the largest bank of clinically relevant patient-derived xenograft (PDX) models and proprietary in vivo and ex vivo platforms[22] Conference Call Information 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] - Full financial details will be available in the Company's Form 10-K on or before July 29, 2025[16] Forward-Looking Statements 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] - Actual results may differ materially from expectations; readers are directed to the Form 10-K for risk factors[23]