OmniAb (NasdaqGM:OABI) Q4 2025 Earnings call March 04, 2026 04:30 PM ET Company ParticipantsJoseph Pantginis - Managing DirectorKurt Gustafson - EVP and CFOMatthew Foehr - President and CEOStephen D. Willey - Managing DirectorConference Call ParticipantsJacqueline Kisa - Biotechnology Specialist and AnalystMatthew Hewitt - Senior Research AnalystMichael G. King, Jr. - Managing Director and Senior Biotechnology AnalystPuneet Souda - Senior Research AnalystNone - AnalystOperatorGood afternoon, welcome to Omni ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $8.4 million, down from $10.8 million in Q4 2024, primarily due to a decline in license revenue, partially offset by an increase in milestone revenue [24] - For the full year 2025, revenue was $18.7 million compared to $26.4 million in 2024, attributed to declines in both license and milestone revenue [28] - The net loss for Q4 2025 was $14.2 million or $0.11 per share, compared to a net loss of $13.1 million or $0.12 per share in the prior year [26] - The full year net loss was $64.8 million or $0.57 per share, compared to a net loss of $62 million or $0.61 per share in 2024 [30] Business Line Data and Key Metrics Changes - The company had 107 partners running 407 active programs by year-end 2025, reflecting growth in both partner count and program activity [4][7] - There were 84 program additions in 2025, significantly higher than previous years, with a net increase of 44 programs during the year [9] - Over 98% of active programs have contracted future economics to the company, with total contracted milestone payments exceeding $3 billion [10] Market Data and Key Metrics Changes - The majority of partners are based in the U.S., with others primarily in Europe and Asia, indicating a diversified partner base [8] - Eight of the ten largest pharmaceutical companies are active partners, showcasing the strength of the company's partner relationships [8] Company Strategy and Development Direction - The company introduced OmniUltra, a transgenic chicken platform for ultra-long CDRH3s, which is expected to drive growth and attract new partners [5][20] - The xPloration platform, launched in mid-2025, is positioned for significant growth and aims to enhance partner engagement through high-throughput screening capabilities [6][22] - The company is focused on transitioning revenue from milestone-driven to more royalty-driven streams, with an average royalty rate of 3.4% across its portfolio [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, citing strong partner engagement and the potential for multiple new clinical program entries in 2026 [19][55] - The company anticipates achieving cash flow positivity as it continues to control operating costs while expanding its partner and program portfolio [32] Other Important Information - The company ended 2025 with $54 million in cash equivalents and short-term investments, with expectations to end 2026 with a cash balance of $30 million to $35 million [30] - The company implemented workforce reductions of 22 employees in 2025, contributing to lower operating expenses [29] Q&A Session Summary Question: Impact of market conditions on new program growth - Management noted strong momentum in program additions in 2025 and expressed optimism for continued growth in 2026, driven by new technologies [34][36] Question: Revenue expectations from xPloration - Management indicated that xPloration is expected to contribute significantly to revenue in 2026, with strong interest from high-tier partners [38][40] Question: Cash flow neutrality and investment strategy - Management emphasized the importance of maintaining cash flow neutrality while also investing in technologies that meet industry needs [43][47] Question: Deployment of xPloration systems - Two xPloration instruments were deployed by the end of 2025, with expectations for growth in 2026 [52] Question: Initial response to OmniUltra - The launch of OmniUltra has been well-received, with strong engagement from partners and an increase in partner programs [62][64] Question: Milestones for OmniUltra in 2026 - The focus for 2026 will be on adding partners and programs leveraging OmniUltra technology [74] Question: Royalty structures for active programs - The majority of active programs have flat royalties, with some having tiered structures [78][81]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $8.4 million, down from $10.8 million in Q4 2024, primarily due to a decline in license revenue, partially offset by an increase in milestone revenue [22] - For the full year 2025, revenue was $18.7 million compared to $26.4 million in 2024, attributed to declines in both license and milestone revenue [25][26] - The net loss for Q4 2025 was $14.2 million or $0.11 per share, compared to a net loss of $13.1 million or $0.12 per share in the prior year [25] - The full year net loss was $64.8 million or $0.57 per share, compared to a net loss of $62 million or $0.61 per share in 2024 [27] Business Line Data and Key Metrics Changes - The company had 107 active partners and 407 active programs by year-end 2025, reflecting growth in both partnerships and program activity [4][6] - There were 84 program additions in 2025, significantly higher than previous years, with a net increase of 44 programs during the year [9] - Over 98% of active programs have contracted future economics to the company, with over $3 billion in total contracted milestone payments [10] Market Data and Key Metrics Changes - The majority of partners are based in the U.S., with others primarily in Europe and Asia, indicating a diversified partner base [7] - Eight of the ten largest pharmaceutical companies are active partners, showcasing the strength of the company's technology [8] Company Strategy and Development Direction - The company introduced OmniUltra, a transgenic chicken platform, which is expected to drive growth and attract new partners [5][19] - The xPloration platform is positioned for significant growth, with an expanding pipeline and increasing partner engagement [5][20] - The company aims to transition from milestone-driven revenue to more royalty-driven revenue, with an average royalty rate of 3.4% across its portfolio [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory towards positive cash flow, supported by a scalable business model and controlled operating costs [6][31] - The company anticipates a strong year in 2026 with potential value-creating events and expects revenue to be in the range of $25 million to $30 million [29][30] Other Important Information - The company ended 2025 with $54 million in cash equivalents and short-term investments [28] - Operating expenses decreased to $87.6 million in 2025 from $100.9 million in 2024, reflecting cost control measures [26] Q&A Session Summary Question: Impact of market conditions on new program growth - Management noted strong momentum in program additions in 2025 and expressed optimism for continued growth in 2026, driven by new technologies [34][36] Question: Growth expectations for xPloration - Management indicated strong demand for xPloration, with expectations for significant revenue growth from instrument sales and consumables [37][39] Question: Cash flow neutrality and investment strategy - Management emphasized the importance of maintaining cash flow neutrality while also investing in technologies that meet industry needs [42][45] Question: Timeline for achieving cash flow break-even - While no precise date was provided, management expressed confidence in reaching break-even due to the growing portfolio of partner programs [53][54] Question: Interest in xPloration from new partners - Management confirmed that xPloration is attracting both existing and new partners, enhancing relationships and creating new opportunities [71][73] Question: Milestones expected from OmniUltra - The initial focus for OmniUltra will be on adding partners and programs, with expectations for continued engagement and development [74]