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 [29][30] - 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 [32] - 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 [31] - 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 [34] Business Line Data and Key Metrics Changes - The company had 107 active partners by year-end 2025, with 407 active programs, reflecting a net increase of 44 programs during the year [6][12] - The number of program additions in 2025 was 84, significantly higher than in previous years, with over 98% of active programs having contracted future economics to the company [12][13] - The company introduced OmniUltra, a new transgenic chicken platform, which is expected to drive growth and attract new partners [7][26] 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 [11] - Eight of the ten largest pharmaceutical companies are active partners, showcasing the strength of the company's technology [11] Company Strategy and Development Direction - The company is focused on broadening its partner roster and increasing the number of active programs, with a scalable platform that allows for operational efficiency [9][10] - The introduction of new technologies like OmniUltra and xPloration is expected to enhance growth and expand market reach [7][28] - The company aims to transition from milestone-driven revenue to more royalty-driven revenue, with over $3 billion in contracted milestones [39] 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 entries into clinical development [18][61] - The company anticipates a revenue range of $25 million to $30 million for 2026, indicating a recovery from previous years [37] - The effective tax rate is expected to remain close to 0% due to a full valuation allowance against the income tax benefit associated with net losses [31][38] 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 [36][38] - Operating expenses decreased to $87.6 million in 2025 from $100.9 million in 2024, reflecting cost control measures [33] 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 [42][44] Question: Revenue growth expectations for xPloration - Management indicated significant growth potential for xPloration, with strong demand from high-tier partners and multiple revenue streams expected [45][47] 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 [50][53] Question: Timeline for achieving cash flow break-even - Management stated that while a precise date for achieving break-even cannot be provided, the growing portfolio gives confidence in reaching that goal [60][61] Question: Initial response to OmniUltra - The launch of OmniUltra has been well-received, with strong engagement and increasing partner programs expected [68][70] Question: Proportion of tiered vs. fixed royalty structures - Management indicated that while most deals are flat royalties, there are some instances of tiered royalties, but it is not the majority [85][89]

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]

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]