Champions Oncology Q4 2025 Earnings Report

Champions Oncology EPS Results

• Actual EPS: -$0.13
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Champions Oncology Revenue Results

• Actual Revenue: $12.35 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Champions Oncology Announcement Details

• Quarter: Q4 2025
• Date: 7/23/2025
• Time: After Market Closes
• Conference Call Date: Wednesday, July 23, 2025
• Conference Call Time: 4:30PM ET

Champions Oncology (NASDAQ:CSBR) engages in the development and sale of technology solutions and products to personalize the development and use of oncology drugs. Its technology platform, TumorGraft, is a novel approach to personalizing cancer care based upon the implantation of human tumors in immune-deficient mice. It uses its technology to offer solutions to Translational Oncology Solutions, which includes pharmaceutical and biotechnology companies; and Personalized Oncology, which assists physicians in developing personalized treatment options for their cancer patients. The company was founded by James M. Martell and David Sidransky on June 4, 1985 and is headquartered in Hackensack, NJ.

Champions Oncology Q4 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Our fiscal 2025 total revenue reached a record $57 million, up 14% year-over-year, and adjusted EBITDA swung to a $7.1 million profit from a $3.9 million loss.
• Negative Sentiment: In Q4, revenue declined to $12.1 million from $14 million last year, resulting in an adjusted EBITDA loss of $1.2 million due to non-cash expenses and a stable cost base, pressuring margins.
• Positive Sentiment: We closed our inaugural data licensing deal, contributing $4.7 million in data revenue, and see a growing pipeline validating our strategy to build a comprehensive multi-omic PDX dataset.
• Positive Sentiment: The launch of our integrated radiopharmaceutical services platform leverages clinically relevant PDX tumor models and offers high-margin workflows (50–60%) to address market capacity constraints.
• Positive Sentiment: With cash of $9.8 million (up from $2.6 million) and no debt, we expect sequential revenue growth and an adjusted EBITDA profit in the coming quarters.

Presentation

[Operator]

note this conference is being recorded.

[Operator]

Will now turn the conference over to your host, Ronnie Morris, Chief Executive Officer. You may begin.

[Ronnie Morris, CEO at Champions Oncology]

Good afternoon. I am Ronnie Morris, CEO of Champion Oncology. Joining me today is David Miller, our Chief Financial Officer. Thank you for joining us for our quarterly earnings call. Before I begin, I will remind you we will be making forward looking statements during today's call and that actual results could differ materially from those indicated.

[Ronnie Morris, CEO at Champions Oncology]

Additional information on risk factors can be found in our Form 10 Q and Form 10 ks filings. A reconciliation of non GAAP financial measures to GAAP financial measures is available in our earnings release. Looking back, fiscal twenty twenty five may ultimately be seen as a pivotal year for Champion Psychology, one marked by renewed momentum, strategic execution and foundational growth. Following a challenging fiscal twenty twenty four, we successfully reestablished revenue growth and returned to profitability. A highlight of the year was closing our inaugural data licensing deal in the third quarter, followed by several smaller transactions in the recent quarter as well as a growing pipeline showing clear validation of our long term vision and strategic direction.

[Ronnie Morris, CEO at Champions Oncology]

Our core services business continues to be the foundation of Champions Oncology. Built on our industry leading PDX Bank and its extensive multi omen characterization, our platform remains a critical resource for pharmacology studies across the biopharma sector. We have made targeted investments to strengthen our team and streamline operations, resulting in improved quality, greater efficiency and increased scalability. These enhancements have contributed meaningfully to our margin expansion and overall profitability. This progress is especially significant given ongoing macroeconomic headwinds.

[Ronnie Morris, CEO at Champions Oncology]

While there are early signs of recovery, biotech and pharma R and D budgets remain constrained. Despite the challenging market, we have begun to see a decrease in customer cancellations, leading to a greater bookings to revenue conversion rate. We have also made strengthening our relationship with big pharma a core strategic focus as these customers are generally more resilient through market cycles and tend to engage in larger multi study programs. Another major milestone was the launch of our radio pharmaceutical services platform. This achievement was enabled by expanding our radioactive materials license, adding radiochemistry infrastructure and screening more than 30 PDX models in collaboration with pharma and biotech partners.

[Ronnie Morris, CEO at Champions Oncology]

Champions now offers fully integrated radio pharmaceutical workflows, including in vitro and ex vivo bio distribution studies and therapeutic efficacy testing across a range of isotopes. What truly sets us apart is our use of clinically relevant PDX tumor models, allowing radio pharma developers to test compounds and systems that closely mirror human biology. As highlighted before, our first data licensing deal underscore the potential of our rich multi omic functional PDX databank. We licensed both existing data and prospective omics generated data, aligning with our vision to create the world's most comprehensive, clinically relevant tumor dataset. This resource aims to bridge the gap between legacy datasets and the depth required to power next generation AIML driven discovery pipelines.

[Ronnie Morris, CEO at Champions Oncology]

As the market increasingly values rich high fidelity datasets, Champions is well positioned to lead in that effort. As we enter this next phase of transformative growth, I will be stepping down as CEO and passing the reins to Rob Braynen. Rob brings over twenty five years of experience at the intersection of life sciences and data driven innovation. He has a proven track record of scaling companies rooted in scientific and computational excellence. His unique background makes him the banking leader to connect our robust services with our emerging data platform.

[Ronnie Morris, CEO at Champions Oncology]

In summary, we have made significant strides in fiscal twenty twenty five. We stabilized and reignited our core services business. We returned to revenue growth and profitability. We validated our data platform with initial licensing deals, and we launched our radiopharmaceutical services. We believe the structural improvements made this year will continue to bear fruit in the quarters ahead.

[Ronnie Morris, CEO at Champions Oncology]

Despite external challenges, we have maintained strong momentum, advanced our platform and upheld our scientific leadership. On a personal note, leading Champion Psychology has been a great privilege, and I am very proud of the extraordinary company that we have built. I am confident that under Rob's leadership, Champions will continue to advance, innovate and excel. I look forward to supporting him in my new role. Now I will turn the call over to David Miller for a more complete review of the financial results.

[David Miller, CFO at Champions Oncology]

Thanks, Rodney, and good afternoon, everyone. I'll review our results for the fourth quarter and for fiscal year 2025 and frame our thinking about fiscal twenty twenty six. Before I dive in, a reminder that our full audited results will be filed on Form 10 k with the SEC by Wednesday, July 29. As always, today, I'll reference certain non GAAP metrics or reconciliations to GAAP are included in our earnings release. Fiscal year twenty twenty five was a turnaround year for champions.

[David Miller, CFO at Champions Oncology]

We returned to growth and profitability after the decline we saw in fiscal twenty twenty four. Our total revenue was a record $57,000,000 compared to $50,200,000 last year, a 14% increase. Our research services revenue was 52,300,000.0, up 4% year over year, and our data revenue stream contributed 4,700,000.0, reflecting our initial data licensing deal. Due to the combination of disciplined cost execution and revenue increase, including high margin data, our adjusted EBITDA was $7,100,000 versus an adjusted EBITDA loss of $3,900,000 in fiscal twenty twenty four. Turning to our fourth quarter, as expected, our fourth quarter came in weaker both sequentially and compared to Q4 last year.

[David Miller, CFO at Champions Oncology]

Revenue was $12,100,000 compared to $14,000,000 last year. We recorded a GAAP operating loss of 2,000,000 compared to a loss of 200,000 in 2024. This included approximately 800,000 in noncash expenses, mainly stock comp stock based compensation, depreciation and a charge related to equipment disposal. Excluding those, adjusted EBITDA for the quarter was a loss of $1,200,000 compared to a gain of $900,000 last year. Turning the focus to our cash based results.

[David Miller, CFO at Champions Oncology]

Cost of sales for the fourth quarter were $7,300,000 relatively flat versus last year, resulting in gross margin of 41%, down from 48% in q four twenty twenty four. The margin decline reflects lower revenue on a relatively unchanged cost base, something we expect to reverse next quarter as revenue increases and costs remain stable. Operating expenses for the quarter rose $400,000 or 7%, driven by a $500,000 increase in sales and marketing due to the formation of our data sales team along with continued marketing efforts such as conferences that were heavily concentrated in the quarter. These operating expenses were partially offset by modest declines in R and D and G and A. We're encouraged that the business development investments are already contributing to pipeline expansion and will support growth in high margin data revenue moving forward, while at the same time, we remain focused on expense management and reduction in noncore areas of the business.

[David Miller, CFO at Champions Oncology]

Now summarizing our results for the full year. As mentioned, revenue reached a record $57,000,000 up 14% from 2024. Cost of sales was $28,300,000 a 3% decrease from 29,200,000.0 enabling gross margin to expand to 50%, up from 42% last year. This improvement came from two key drivers, the addition of high margin data revenue and operational efficiencies that improve revenue conversion and contained cost. Total operating expense declined by approximately 3,400,000.0 year over year.

[David Miller, CFO at Champions Oncology]

R and D was down 2,700,000.0 and G and A was down 1,200,000.0, while sales and marketing rose by 500,000, again, demonstrating our focus on strategic cost controls while investing will require to our commercial expansion efforts. Adjusted EBITDA for the year was 7,100,000.0, a dramatic swing from a loss of 3,900,000.0 in fiscal twenty twenty four. This is a testament to the team's disciplined execution and our ability to translate top line growth into bottom line improvement. Turning to cash. We ended the year with $9,800,000 in cash, up from $2,600,000 a year ago, and we remain debt free.

[David Miller, CFO at Champions Oncology]

Operating cash flow for the fourth quarter was $6,400,000 as we converted our accounts receivable and increased our deferred revenue. Looking ahead, we expect to maintain remain cash neutral over the next quarter with projected cash growth in the second half of the year as revenue increases and margin improvements take hold. We do not expect any significant capital expenditures this year, and we believe we're in a strong position to fund operations and organic strategic growth. To summarize, fiscal year twenty twenty five was a turnaround year for Champions with record revenue and a return to profitability. As we look ahead to next quarter and beyond, we should see a sequential quarterly revenue increase and adjusted EBITDA profit, and we have growing confidence that revenue will increase over the next few quarters along with expanding operating margins.

[David Miller, CFO at Champions Oncology]

Our balance sheet is strong with growing cash and no debt. As a result, we remain confident in our long term growth trajectory, expanding our data business, enhancing profitability, and driving shareholder value. We look forward to updating you on our first quarter results in about six weeks. We'd now like to open the call to call for questions.

[Operator]

Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue.

[Operator]

The first question comes from Matt Hewitt with Craig Hallum.

[Matthew Hewitt, Senior Research Analyst at Craig-Hallum]

Congratulations on the improved year. But before I my questions, Ronnie, it's been nice working with you and best wishes in your new role at Champions. As far as the first question, and you kind of teased this a little bit in your prepared remarks, but the current environment, obviously, 'twenty four was a very challenging environment. We've seen hints that maybe this calendar year that's going to show some improvement. You noted that you've seen a decline in cancellations.

[Matthew Hewitt, Senior Research Analyst at Craig-Hallum]

I'm just wondering if you could maybe provide a little bit more color on what you're seeing in the current environment and what your expectations are for fiscal 'twenty six.

[Ronnie Morris, CEO at Champions Oncology]

Yes. Thank you, Matt, for your well wishes, and it's always great getting your questions. Yes. So the the current environment is still not great.

[Ronnie Morris, CEO at Champions Oncology]

Right? It's still pretty tight out there. You know, we definitely agree with you that there are some glimpses of things turning around, and I think everyone's expecting it to turn around. The general markets have kind of turned around and some of other sectors have turned around. So waiting for biotech to fully come back.

[Ronnie Morris, CEO at Champions Oncology]

Having said that, I think when we look at things like operate opportunity generation, the amount of conversations we're having with big pharma, middle pharma, biotech, you know, some of the services that we've added that that are really much in need out there in the marketplace. We feel pretty confident that even though it's a tight marketplace, we still feel like we're going to be able to sustain the growth and be able to continue to grow. And just because of the niche where we are, the PDX Bank that we have, which is somewhat of a differentiated product. So there's a place for us. People need our services.

[Ronnie Morris, CEO at Champions Oncology]

Not as easy as it was a couple years ago, but those are the times where we continue to double down and just become more efficient, get better using better tools for marketing and for sales and for how we think about our r and d and all the other stuff. It just makes us have to be a little little bit better, but we feel cautiously optimistic that that the next couple of quarters and the next year or two are gonna be okay for us.

[Matthew Hewitt, Senior Research Analyst at Craig-Hallum]

That's very helpful. And then kinda just moving down the list here, the the data licensing opportunity, a nice little win here this quarter or follow on. I'm just wondering what that pipeline looks like, what your expectations are for contribution in fiscal 'twenty six.

[Ronnie Morris, CEO at Champions Oncology]

Yes. So as I think about the data, as I think we've described on this call, it's somewhat of an early business for us, although we've been we've been collating data for a long time. And we've always known that it's valuable and that it's going to be important at some point. So we really still feel like we're at the right place at the right time. We are pipeline is growing.

[Ronnie Morris, CEO at Champions Oncology]

So some of the licensing deals will be smaller, and those will happen sooner and some of the larger licensing deals take more time. But I think that it's reasonable to expect that our licensing revenue will be somewhat in the same range for the next year or so, and then I think it's gonna grow from there.

[Matthew Hewitt, Senior Research Analyst at Craig-Hallum]

So Got it. And then maybe one last one, I'll hop back in the queue, but the new radiopharmaceutical service opportunity, What do what will those agreements look like? Size, margins, any color that you could provide there would be helpful.

[Ronnie Morris, CEO at Champions Oncology]

Yes. Those are going to look like the same types of statements of work that we've done for in vivo work. It's gonna have a higher price tag because radiopharmaceutical services are a little bit cost more than than regular, just in vivo either cell line or PDX work, but you can think of it as a fairly high margin, you know, somewhere 50 to 60% margin business. The reason we're super excited about this line of business is because it's a very hot field right now, and there's a capacity constraint out there in terms of being able to to get this work done. So we feel like there's a demand, and we have a great PBX bank, and and that's those are the type of models that people are gonna wanna test their radio pharmaceutical platform again.

[Matthew Hewitt, Senior Research Analyst at Craig-Hallum]

So got it. Thank you very much.

[Ronnie Morris, CEO at Champions Oncology]

You're welcome, Matt.

[Operator]

If there are any remaining questions, please press star one on your touch tone phone. We have a follow-up question coming from Matt Hewitt. Please proceed.

[Matthew Hewitt, Senior Research Analyst at Craig-Hallum]

Alright. Thanks. If no one else is gonna jump in. Maybe first up, how should we be thinking about the capital allocation? Obviously, a nice improvement this year versus last year.

[Matthew Hewitt, Senior Research Analyst at Craig-Hallum]

You're now sitting with a healthy amount of cash. But where do you see investments necessary to drive additional growth going forward?

[Ronnie Morris, CEO at Champions Oncology]

Yeah. So I I I think that a lot a lot of our investment going forward is gonna be in the creation of this data, the new data, and to to go deeper into the data and build different types of datasets. Now I I don't know that that is gonna that is gonna be its own cost without the revenue associated with it.

[Ronnie Morris, CEO at Champions Oncology]

So I think that we're gonna we're gonna see what the market's interested in. We're gonna build datasets that that is gonna be revenue producing. But that's that is where I see a lot of our r and d dollars. I I don't see other capital expenditures. See I see a lot of spend going into the data.

[Matthew Hewitt, Senior Research Analyst at Craig-Hallum]

Got it. And then I guess kind of on the the data side and some of the work that you have previously done with your Corellia AI, Are you still kind of pursuing partnered programs there? Or any updates you can provide would be helpful.

[Ronnie Morris, CEO at Champions Oncology]

Yeah. So we have several programs within the the Corellia portfolio.

[Ronnie Morris, CEO at Champions Oncology]

We are super excited about you know, one one of the nice things about working on thousands of compounds for hundreds and hundreds of biotech and pharma companies is we see everything. We we test all these drugs that come through our clinic, come through our lab, and we generally know which of the drugs that are gonna become the billion dollar drugs out there. And we see them before they get approval. And we have some drugs that we've developed and we don't want to waste time. So so things that don't work in in in in our playground in our platform with the PDXs, we don't waste a lot of time on.

[Ronnie Morris, CEO at Champions Oncology]

So we're super excited about the portfolio that we have, and we're out there raising money. As you know, it's a tough environment. We are talking to a whole bunch of people, and we really hope that over the next couple months, we're gonna be able to fund that company with outside capital. And we we we remain super excited about the the methodology of how we came to these targets and the team that's been able to develop first class drugs against these targets.

[Matthew Hewitt, Senior Research Analyst at Craig-Hallum]

That's great. Thanks very much.

[Operator]

The next question comes from Richard Baffarian, private investor. Please proceed, Richard.

[Analyst]

Hi, Ronnie. Thanks for your leadership over there at Champions. I wanted to I'm I'm I'm pretty excited about your your announcement about your relationship with Turbine AI, and wanted to get some nuance for this relationship. Is the plan to monetize your data licensing together in some percentage of some format? And how do you expect this partnership to accelerate your data licensing revenues? Just some color if that's good.

[Ronnie Morris, CEO at Champions Oncology]

Yeah.

[Ronnie Morris, CEO at Champions Oncology]

So that is one example of so so the stage we're at right now, we're pretty much licensing out our our our data to companies like Turbine and some other. At at at the current stage, the licensing agreements are purely licensing agreements, and we haven't we haven't really built in any type of milestones or royalties. But we certainly see over time as we go further down this step and we we kind of work more with pharma and develop a deeper data set and have more experience that we will do more of a partnership and really work with some of these companies to develop drugs together. So I would say it's exciting because they're using it for what we always dreamed and thought was possible with our data, and they're getting great value out of it. And over time, I think that the relationships with companies like Turnbine and others just become more of a partnership.

[Analyst]

Thank you.

[Operator]

We have no further questions in the queue. I would like to turn the floor back to management for any closing remarks.

[Ronnie Morris, CEO at Champions Oncology]

Well, thank you very much for tuning in to our quarterly and end of year call. We look forward to giving you another update in September. We're certainly super excited about not only the core business, but our data. We're also excited about the drug development efforts that we have. So there's a lot to be excited about, and we look forward to updating everybody in another six weeks.

[Ronnie Morris, CEO at Champions Oncology]

Have a good evening, and thank you for joining us.

[Operator]

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

Participants

Executives

• Ronnie Morris, CEO
• David Miller, CFO

Analysts

• Matthew Hewitt, Senior Research Analyst at Craig-Hallum
• Analyst