OmniAb Q2 Earnings Call Highlights

Key Points

• Q2 revenue rose to $13.4 million from $3.9 million year over year, driven mainly by milestone payments from advancing partner programs, while the net loss narrowed to $5.9 million from $15.9 million.
• OmniAb raised its 2026 revenue outlook to $32 million–$36 million and increased its projected year-end cash balance to $37 million–$41 million, reflecting stronger milestone activity.
• The partner portfolio continued to expand, with 110 active partners, 425 programs and 34 clinical-stage programs or approved products; the company also highlighted progress in major partner assets and xPloration instrument placements.

OmniAb NASDAQ: OABI reported higher second-quarter revenue and a narrower net loss as milestone payments from partner programs increased, while the company raised its full-year 2026 revenue and year-end cash outlook.

Revenue for the second quarter totaled $13.4 million, compared with $3.9 million in the same period of 2025. Chief Financial Officer Kurt Gustafson said the increase was primarily driven by milestone revenue tied to partner programs advancing in clinical development. The company also recorded sales of two xPloration instruments during the quarter and modest growth in service revenue from ion channel agreements.

For the first six months of 2026, revenue reached $27.8 million, up from $8.1 million in the prior-year period. Gustafson noted that milestone revenue can vary materially between quarters and said 2026 milestone activity has been more weighted toward the first half of the year than it was in 2025.

OmniAb’s second-quarter net loss improved to $5.9 million, or $0.05 per share, from a loss of $15.9 million, or $0.15 per share, a year earlier. The year-to-date net loss was $13.6 million, or $0.11 per share, compared with $34.1 million, or $0.32 per share, in the comparable 2025 period.

Guidance Raised Following Milestone Activity

The company raised its 2026 revenue outlook to a range of $32 million to $36 million, citing increased milestone achievements during the second quarter. OmniAb also narrowed its expected range for GAAP operating expenses to $84 million to $88 million and forecast cash operating expenses of $51 million to $55 million.

OmniAb ended the quarter with $52 million in cash. It now expects to end 2026 with cash and cash equivalents between $37 million and $41 million, an increase from its previous outlook. The company said accounts receivable included milestones achieved in the second quarter that had not yet been paid.

Gustafson said the company expects its revenue base to expand as its clinical-stage portfolio matures, with potential royalties becoming a larger contributor as partnered products progress toward possible approvals. He said OmniAb’s infrastructure is designed to scale without operating expenses rising proportionally with revenue.

Partner Portfolio Expands and Advances

At the end of the second quarter, OmniAb had 110 active partners and 425 active programs. New licenses during the quarter included agreements with EnRosa Therapeutics and argenx. The company said eight of the world’s 10 largest pharmaceutical companies remain active OmniAb partners.

Approximately 98% of active programs include contracted future economics for OmniAb, according to management. The company reported more than $3 billion in total potential contracted milestone payments associated with standard antibody licenses, along with an average contracted royalty rate of roughly 3.4%.

OmniAb had 34 active clinical programs and approved products leveraging its technologies at quarter-end. Four programs entered the clinic during 2026 through the end of the second quarter, and management said it expects additional clinical entrants this year. The active clinical-stage programs have approximately $340 million in remaining potential contracted milestone payments.

Chief Executive Officer Matt Foehr highlighted two partner assets that advanced from Phase 1 directly to Phase 3 during the quarter: Johnson & Johnson’s ramantamig, a trispecific antibody for multiple myeloma, and Merck KGaA’s precemtabart tocentecan, an investigational anti-CEACAM5 antibody-drug conjugate for metastatic colorectal cancer.

Foehr also cited Teva’s plans to begin a Phase 2b vitiligo study of TEV-’408 in the fourth quarter, following earlier clinical results. In addition, Immunovant reported clinically meaningful response rates at week 16 for IMVT-1402 in rheumatoid arthritis, with further updates in rheumatoid arthritis and lupus expected in the second half of 2026, according to OmniAb.

Focus on Chicken-Derived Technologies and xPloration

The company said six programs derived from its genetically engineered chicken antibody-discovery technologies, including OmnidAb and OmniChicken, are now in Phase 1 or Phase 2 trials. Foehr said the chicken platforms may be particularly useful for targets that are highly conserved among mammals, as chickens can generate antibody responses against targets that may be more challenging for mammalian discovery systems.

OmniAb also continues to expand its xPloration business, its high-throughput single B-cell screening platform that incorporates machine learning and artificial intelligence. The platform includes instruments, single-use consumables, software subscriptions and maintenance contracts. Two instrument placements in the second quarter brought the total number of systems in the field to four, management said.

Foehr said early customer feedback has emphasized the platform’s runtime, ease of use and robustness. Chief Operating Officer Amechi Nwachuku said differentiated life-sciences instruments can support recurring revenue through consumables, reagents, software and service, although OmniAb is still evaluating the full commercial opportunity for xPloration.

Management plans to provide additional detail on xPloration and its market opportunity at an Investor and Analyst Day scheduled for Oct. 6 at the company’s Emeryville headquarters. The event will also be webcast.

About OmniAb (NASDAQ:OABI)

OmniAb, Inc NASDAQ: OABI operates as a biotechnology company specializing in the discovery and development of therapeutic antibodies. The company’s integrated antibody discovery platform combines proprietary transgenic animal models, in vitro screening, and in silico engineering to accelerate lead identification and optimization. OmniAb offers both fee-for-service collaborations and license agreements, enabling biopharmaceutical partners to leverage its suite of technologies for programs spanning oncology, immunology, and other therapeutic areas.

Founded in 2016 and headquartered in Seattle, Washington, OmniAb went public in May 2021.

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