Champions Oncology (CSBR) Earnings Transcript

Core Insights - The company anticipates introducing a new revenue stream through data-licensing, which is expected to positively impact revenue, margins, and enterprise value [1] - The wholly-owned drug development subsidiary, Corellia, is actively seeking capital and remains optimistic about its developed targets and compounds [1] - The company has built a rich multi-omic data set that enhances drug discovery and development, with increasing demand due to advancements in AI [2] Financial Performance - The company reported revenue of $13.5 million for Q2, a 17% increase year-over-year, and achieved income from operations of $700,000 compared to a loss of $1.9 million in the prior year [6] - Adjusted EBITDA for the quarter was $1.1 million, a significant improvement from an adjusted loss of $1.4 million in the same period last year [7] - Total revenue for the first half of the year was $27.6 million, reflecting a 14% increase compared to the first half of 2024 [10] Cost Management - The total cost of sales increased to $7.4 million, primarily due to rising mouse costs associated with growing study numbers [7] - R&D expenses were reduced to approximately $1.7 million, down from $2.5 million in the previous year, indicating a strategic focus on bottom-line results [8][9] - General and administrative expenses decreased to $1.6 million from $2.1 million, attributed to reduced compensation and recruitment costs [10] Market Dynamics - The funding environment is improving, with cautious optimism regarding investments from both big pharma and the biotech sector [14] - The company is focusing on leveraging its unique data assets, which are increasingly valuable in the current market landscape [15][16] Future Outlook - The company expects a slight decline in research service revenues next quarter, with a reacceleration anticipated in Q4 and into fiscal 2026 [13] - Revenue growth for fiscal 2025 is projected to be between 10% and 15%, supported by the new data revenue stream [13] - The company is confident in its growth trajectory and plans to provide further updates in the upcoming quarterly report [20]