Champions Oncology(CSBR) - 2026 Q1 - Quarterly Results

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