Champions Oncology (CSBR) 11 Dec 242025 Q2 Earnings call transcript

Greetings. Welcome to the Champions Oncology Second Quarter Fiscal Year 2025 Earnings Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Ronnie Morris, Chief Executive Officer.

You may begin.

Good afternoon. CEO Oncology. Morris, Ronnie am of Champions I

Joining Officer. for Thank is David our Chief Financial Miller, our you earnings me call. today quarterly for joining us

forward-looking that Before results actual materially described will remind begin, is differ today's you what those I be and I'll could making in statements from that during call we statements.

during financial for on available in reconciliation Oncology. in QX XX-Q discussed the XXXX Forms half quarter earnings XX-K. A was results. release. call on quarter of may positive year fourth positive factors another financial continued the began and strong that could that results this cause financial available quarter the first that information another GAAP of our Additional Champions to is momentum measures through of non-GAAP measures differ The with the of to Form be is

services Our PDX characterized our precisely business sustained our customer by a operational strong industry-leading core growth, bank, and relationships. data saw multiomic driven improvement

with been their mill-specific resource have drug discovery set continuously our we focused long-term significant our the R&D budgets bank, processes, data efficiency pricing a further and expanding always tumor expanding differentiator which enhancing reinforcing in bookings drug for year, The with for Over and and to to collection past partners quality, our scalability. leading data for us the industry-leading the key strong both This and reduce on we sector confidence our By in strengthening and enhanced of companies insights boosted embedded development. our PDX unique invaluable resulting valuable have studies. in data and pharma growth a characterization, potential increased rich set greater has refining outlook. A biotech teams our access with our models for development. cancellations, built multiomic of have is pharmaceutical provides

particularly over this exploring to in of depth. have with shift, demand enterprise our revenue on breadth its terms to insights the deeper grown, and rise have effectively progress significant data from of substantial data which ability Recognizing its ways margins AI our been for more the will biological introduce data has both positive With customers. In and this data coming to making we revenue, monetize unlock impact value. the past expect a licensing, new a stream quarter, year through our we and

our subsidiary, we Corellia, remain enthusiastic drug Regarding using have we compounds we proprietary our owned development targets the about have highly data. wholly and developed

actively engaged We discussions capital raise in are the to company. for

the we cost without progresses on while focused our our with impact ensuring that results. To end, potential pursuing bottom all compromise, that of costs mindful of As on all development line are drug are centers, minimizing while investors. we

remains efforts they environment support we the this evident we optimistic both fronts. call, from QX challenging, about summary, outlook. In bankers funding are the capital and have a engaged Although with quarter on to raise very I positive our multiple recently as and is was hope

back We are growth. feel sustain core our on are track business we excited about and to

forthcoming. on feel of our external like the asset is Additionally, we value validation the data

strategy data morph for will transformative data be into business to Champions. our expect a We that

the turn Miller detailed David results. financial call me let Now of review over for the a more to

Thanks, Ronnie.

will Form be with Our by the filed December Monday, XX-Q on SEC full results XX.

of noncash that million, same strong last our rebound the second quarter the depreciation a results the reported revenue from the totaling million financial over of items, ago sequential period XX% Included quarters of through of noncash an our XXXX. a compared in in of comp On loss $X.X EBITDA has excluding fiscal income the quarter, loss highlighting, stock a was XXXX, and million quarter both $XX.X in expenses non-GAAP the second to our the quarter compared $X.X continued income operations $X.X basis, were these been adjusted income GAAP we've financial million a year in $XXX,XXX, for of year. We for adjusted on and As began with to in marking increase basis, GAAP final period. $XXX,XXX prior year. approximately was the $XXX,XXX, of

our [ Total second million costs ] was for of [ number to XX%. of focus The and humanized cost an more increase the cash-based was due year, grow primarily last mouse Turning sales million $X.X studies the as results. studies. costs mouse in to ] of of even compared specifically, our to $X.X quarter increase

Our compared quarter gross XX% year. same margin last to improved XX% the period for to for the

quarters the next growth long cost long-term revenue XX%. excess in volatility margins sales, delivering anticipate will with term, cost revenue few we with expected some fluctuate in the of service and expected in and margins of revenue over research research stabilization our Our over the but in

For $X.X a expense period, of ago in the quarter, approximately was R&D decline million compared $X.X year to the million $XXX,XXX.

R&D We renewed expense. have strategically our on results, bottom a we've emphasis reduced and our line

future continue our to long-term vision. we've scaled some facilitate business programs integral or core developmental not we growth, in are in to operations that invest to While investment strategic our back

Sales mostly quarter, million unchanged $X.X For at and year. million expense was last the $X.X marketing compared to

compared year. last adjusted in sales a was operating $X.X R&D million compared The in expenses recruitment million in which The expenses revenue to a $XXX,XXX. reduction with adjusted were in was increase onetime in our in X%. to revenue a for allowance compared expense from $X.X of $X.X decrease small was our down EBITDA of only in to loss the increase The to result reductions approximately million G&A Total $XX.X modest implemented percentage $XX.X compared XX% million a our to $X.X decrease was half million year, primarily improve of million and cost to a increase first margin costs, compared was $X.X expenses. primarily of year. Total of results, or Total lifted XX% period, of compared the million $XX due an gross million along to credit half last first to compensation efficiencies $XXX,XXX G&A conversion the year Our of was an ago $XX.X enabled reduction to half last million, and XX%. on of first operational us losses. Summarizing XXXX,

Now cash. quarter and cash to We debt. sheet no $X.X turning the with on million balance the of ended

reduction and of For business. adjusted results growing as of in are our confident cash decline reduction was payables the expected our coming over balance and million. Despite stronger and cash we anticipate quarter the continue position our we payables, aforementioned the the course our from remains introduce operational operating were operating cash used our quarter, ordinary financial stream, Inflammation, increase quarterly the to quarters. Accordingly, of is revenue we The quarter increase improve the in cash We a strong fourth with reacceleration receivables million data our $XXX,XXX. from into in accounts minor a revenue research $XX.X second a quarter fiscal activities as balance with results anticipate was a that decline and decline EBITDA in new an slight primarily activities next XXXX. cash occurring sequential in service with an in receivable $X.X in continuing in in sheet in and revenues solid.

fiscal projections that we've XXXX As and XX%, adjusted growth will quarterly positive. We're data the revenue and remain EBITDA a of expected returned and and these confident for XX% least should our between extremely result be should at our look strong revenue, the create value delivering report now path financial to we forward shareholders. open update when quarter in that for results to our questions. our results. We We the call next third to can of mid-March excited

from first question Hewitt comes Instructions] Craig-Hallum. Matt [Operator with The

] Corman for Tolf on [ is This Hello. Hewitt. Matt

market dynamics? First off, are congratulations that please a on color there CROs on Other funding are saying quarter. is lumpiness Could the some environment. you What strong provide in seeing? the you any

not to, was that -- a ago, I would it's Yes. better we over of but still the question. it's Thank couple back it say, so you year. for last gotten years definitely Yes, where

we and is in see So more back, where is is I sector. guess the we big was definitely to funding biotech biotech from it of that see But that ago. is the funding to up starting optimistic certainly sector. coming the There are we not are improving. investment there are signs is a cautiously short It's it pharma, starting couple it the the from opening answer years

new could to rolling And be drive growth? out any tests you then or services there further are

Yes.

we were Omics rows and been focused of a focused always the patient, were expression treatments, that we data think And many or the and data the was the on transcriptomics and RNA it's was something I longitudinal always mentioned as knew biological the that a understand of or have in proteomics on rows call, be many, the created the tumor, tumor for they to did and have turn that data, where patients rows tumors. tumor genomics to some and on and very in or who people we on from and try interested gene. We many, a years, on just whether the of different from different would for we think so focused expression unique what we same I have beginning So perspective. making many is we adding value XXX,XXX were time same off on, the company, to type long on creating for very the

data is the sets we the where we're that long. right I lot forward. interested kind advent are value of deep a at of with else data went think very AI and those went those now and are type type So provide sets now in to of going where everyone that of everyone And of going the time

like we're area. going to where from growth, perspective, be feel So there's where we going on we're that's to to going area and that focus an -- that

business, In we lot a our and in and be a both the bread Vivo to studies, interest do. that's core and Ex and of businesses. Vivo studies strong in continue terms those butter biomarker what of of There's other

the We [Operator I'd remarks. any management further to floor Instructions] closing queue. in to back turn no have like for questions

strategy very quarterly We're for making subsidiary. we're business you Thank and as drug call. the earnings on much progress development well excited core data us the both the for our the about joining as Okay.

excited update and growth the feel about days. next we very to confident So XX the we in the give of company are

have evening. So thank a and you, good

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