Champions Oncology(US:CSBR)2025-12-15 22:32Financial Data and Key Metrics Changes - Total revenue for Q2 2026 was $15 million, an increase of 11% year-over-year from $13.5 million, driven by improved conversion of booked work due to a lower level of cancellations [8][9] - Income from operations for the quarter was $185,000, and adjusted EBITDA was approximately $800,000, with the company on track to achieve full-year positive adjusted EBITDA [8][9] - Gross margin improved to 52% compared to 45% last year, supported by flat cost of sales despite increased revenue [9] Business Line Data and Key Metrics Changes - The company reported continued success in radiolabeling and radiopharmaceutical support workflows, which are becoming increasingly significant in oncology drug development [4][5] - Investments in the data platform are ongoing, enhancing its functionality and expanding utility for pharma partners, which is viewed as a critical long-term value driver [5][6] Market Data and Key Metrics Changes - The broader environment shows gradual improvement across pharma and biotech budgets, with customer engagement and opportunity pipeline generation improving relative to the previous year and a half [3] - A recent survey indicated that over a third of biotech executives plan to increase outsourcing next year, suggesting a positive trend for the company's services [15] Company Strategy and Development Direction - The company aims to deliver year-on-year revenue growth, invest in growth levers like data platforms, and maintain fiscal discipline to avoid shareholder dilution [2][3] - Focus remains on execution, maximizing conversion of existing bookings, improving operational efficiency, and advancing capabilities to distinguish the company in the market [3][7] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for booking momentum in the next calendar year as R&D budgets reset for 2026 [3] - The company is encouraged by improved operational discipline, a strengthening commercial position, and strategic investments in areas with competitive advantages [7][11] Other Important Information - The company ended the quarter with $8.5 million in cash and no debt, maintaining a solid financial position [10] - Corelia, a wholly-owned subsidiary focused on target discovery, is making progress in discussions with potential venture capital funding partners [6] Q&A Session Summary Question: Has there been an uptick in inbound call volume regarding RFPs, and how quickly can the company return to double-digit revenue growth? - Management noted optimism regarding opportunity generation and improvements in the market, with investments in the commercial team positioning the company well for recovery [15] Question: Are sales and marketing investments targeting the data opportunity exclusively? - Management highlighted a recent hire to lead the data business, emphasizing the strategic mindset and domain expertise brought to the team [16] Question: What are the expectations for gross margins moving forward? - Management indicated that gross margins for the service business are expected to remain in the 50%-52% range, with potential fluctuations due to various expenses [19][20] Question: Can the company provide updates on Corelia's drug candidates and potential valuations? - Management refrained from sharing specific details but expressed excitement about the data and traction with VC partners [22]