Executive Summary

Q1 FY2026 revenue was $14.0M, up sequentially from $12.4M in Q4 FY2025 but slightly down year over year from $14.1M; gross margin was 43% vs 41% in Q4 and 50% YoY .
Adjusted EBITDA was modestly positive; management text references ~$60k while the reconciliation table shows $120k (we anchor on reconciliation), and GAAP diluted EPS was -$0.03; adjusted diluted EPS was $0.02 .
Against S&P Global consensus, CSBR beat revenue ($13.995M actual vs $13.513M est) and beat Primary EPS (0.02 actual vs -0.01 est), albeit on a single estimate; note SPGI “Primary EPS” reflects adjusted EPS here while GAAP EPS was -$0.03* .
Management expects sequential revenue growth, adjusted EBITDA profitability, and gross margin expansion as radiolabeling work shifts in-house; cash neutral in Q2 and cash build in H2 FY2026, with no debt supporting flexibility .

What Went Well and What Went Wrong

What Went Well

Sequential recovery: revenue rebounded to $14.0M from $12.4M in Q4; gross margin improved to 43% vs 41% .
Data traction: third consecutive quarter of data sales, with research services contributing $13.7M and data providing the balance; management highlighted momentum and AI/ML tailwinds for data platform .
New CEO as catalyst: “Our core services business…is strengthening…we are scaling our emerging data platform…These complementary growth engines…create durable long-term value” – Rob Brainin .

What Went Wrong

YoY softness and margin compression: revenue down ~1% YoY ($14.0M vs $14.1M), gross margin 43% vs 50% prior year, driven by higher outsourced radiolabeling costs .
Operating loss despite positive adjusted EBITDA: loss from operations of $0.527M vs +$1.329M YoY; GAAP diluted EPS -$0.03 vs $0.09 YoY .
OpEx increased YoY: R&D +43% (to $2.1M), S&M +10% (to $1.9M), G&A +2% (to $2.6M) as the company invested in its data platform and commercial capabilities .

Financial Results

Headline Financials vs Prior Periods and Estimates

Metric	Q3 FY2025	Q4 FY2025	Q1 FY2026	YoY (Q1 vs Q1 FY2025)	vs S&P Global Consensus (Q1 FY2026)
Revenue ($USD Millions)	$17.039	$12.355	$13.995	$14.061	Estimate: $13.513; Actual: $13.995 → Beat by $0.482M (3.6%)
Gross Margin %	61%	41%	43%	50%	n/a
GAAP Diluted EPS ($)	$0.31	$(0.13)	$(0.03)	$0.09	Estimate Primary EPS: $(0.01); Actual Primary EPS: $0.02 (Note: GAAP EPS was $(0.03))
Adjusted Diluted EPS ($)	$0.36	$(0.07)	$0.02	$0.14	Estimate uses SPGI “Primary EPS” which aligns to adjusted EPS here*
Adjusted EBITDA ($USD Millions)	$5.149	$(1.016)	$0.120	$2.020	n/a

Notes: SPGI consensus values are from S&P Global; figures marked with * are retrieved from S&P Global.

Segment Revenue Breakdown

Segment	Q3 FY2025 ($M)	Q4 FY2025 ($M)	Q1 FY2026 ($M)
Research Services	$12.5	n/a	$13.7
Data Licensing	$4.5	~$0.2	~$0.3

KPIs and Balance Sheet Highlights

KPI	Q3 FY2025	Q4 FY2025	Q1 FY2026
Operating Cash Flow ($USD Millions)	~$0.918	$6.4	~$0.600
Cash & Cash Equivalents ($USD Millions)	$3.202	$9.785	$10.325
Deferred Revenue ($USD Millions)	$10.922	$15.443	$14.430
Cost of Oncology Revenue ($USD Millions)	$6.617	$7.271	$7.995
Total OpEx ($USD Millions)	$5.923	$7.090	$6.527

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance/Outlook	Change
Revenue	FY2026 near term	None quantified	Expect sequential revenue growth through coming quarters	New qualitative outlook
Adjusted EBITDA	FY2026 near term	None quantified	Expect continued adjusted EBITDA profitability	New qualitative outlook
Gross Margin	FY2026	None quantified	Expect margin expansion as radiolabeling shifts in-house	Positive qualitative
Cash	Q2 FY2026 / H2 FY2026	None quantified	Roughly cash neutral in Q2; cash growth in second half	New qualitative outlook
EPS/Tax/OpEx specific ranges	n/a	None provided	No numerical guidance issued	Maintained “no guidance” stance

Earnings Call Themes & Trends

Topic	Q3 FY2025 (Jan 31)	Q4 FY2025 (Apr 30)	Q1 FY2026 (Jul 31)	Trend
Data licensing & AI/ML	First major data deal; record quarter; building dataset depth; early but transformative	Dedicated team formed; pipeline building; diverse deal structures discussed	Third consecutive quarter of data sales; optimism on AI/ML-driven demand	Positive momentum, lumpy timing
Macro/budgets/tariffs	Tight environment; cautious optimism; tariffs not a direct factor yet	Headwinds persist; pivot to resilient big pharma relationships	Cautiously optimistic; cancellations down; better bookings-to-revenue conversion	Gradual improvement
Radiopharmaceutical services	—	Platform launched; high-margin (50–60%) opportunity; capacity constraints favor CSBR	Expanded license/infrastructure; bringing radiolabeling in-house to cut costs and lift margins	Expanding offering; margin tailwind
Corellia (drug discovery subsidiary)	Raising external capital; aim to retain ownership; separate investor base	Continued efforts to fund externally; compelling data	Progressing; seeking partners/funding; pipeline data compelling	Funding-dependent progress
Big pharma relationships	—	Strategic focus on larger, multi-study programs	Deepening relationships; opportunities for durable bookings	Strengthening mix

Management Commentary

“Our core services business—the backbone of our company—is strengthening…we are scaling our emerging data platform…These complementary growth engines give us the opportunity to deepen our scientific impact… and create durable long-term value for shareholders.” – Rob Brainin, CEO .
“Revenue for Q1 was $14 million…research services contributed $13.7 million, and our data business provided the balance…gross margin of 43% versus 50% in Q1 last year…the margin decline was primarily due to an increase in outsourced lab service costs for our radiolabeling work. As we bring this work in-house, we anticipate gross margin expansion.” – David Miller, CFO .
“We rebounded…stabilized revenue at $14 million, returned to adjusted EBITDA profitability, and strengthened our balance sheet…we expect sequential revenue growth, continued profitability on an adjusted EBITDA basis, and margin expansion as radiolabeling work shifts in-house.” – David Miller, CFO .
“While revenue was slightly lower than the first quarter of last year, we achieved solid sequential growth…we anticipate continued topline expansion and margin improvement driven by a healthy services pipeline and growing demand for our proprietary data offerings.” – David Miller, CFO .

Q&A Highlights

Data licensing strategy and opportunity size: Still early; strong customer interest; exploring fee-only and milestone/royalty models; pipeline building across customer tiers .
Corellia funding and structure: Targeting external capital for the wholly owned subsidiary; aim to retain a meaningful stake; designed not to impair CSBR cash flow .
Radiopharma economics: Statements of work similar to in vivo, but higher price point; anticipated 50–60% margins; capacity constraints in the market support demand .
Near-term outlook cadence: Management anticipates sequential revenue increases but withheld specific Q2 numbers; timing of data deals is the swing factor .
Macro tone: Cautious optimism; signs of improvement with fewer cancellations and better conversion, but funding environment remains tight .

Estimates Context

Q1 FY2026 revenue: $13.995M actual vs $13.513M consensus → beat by $0.482M (3.6%)*.
Q1 FY2026 Primary EPS: $0.02 actual vs $(0.01) consensus → beat by $0.03*; note the company’s GAAP diluted EPS was $(0.03), and SPGI “Primary EPS” aligns to adjusted EPS in this case .
Number of estimates: 1 for both revenue and EPS, so consensus is thin and subject to revision*.

Values retrieved from S&P Global. Figures marked with * come from S&P Global.

Key Takeaways for Investors

Sequential recovery underway with Q1 revenue/margin improvement vs Q4; watch for continued gross margin expansion as radiolabeling shifts in-house .
Data platform is a potential multi-year growth driver, but revenue timing is lumpy; deal structure flexibility (license fees vs milestones/royalties) could influence profitability mix .
Radiopharma services offer high-margin expansion and differentiation via clinically relevant PDX models; insourcing radiolabeling is a tangible cost lever .
Balance sheet resilience with $10.3M cash and no debt supports investment in data and infrastructure; management guides for cash neutrality in Q2 and cash build in H2 .
Expect no quantitative guidance; monitor bookings-to-revenue conversion, deferred revenue trends, and operating expense discipline tied to scaling data .
Near-term trading lens: the beat vs SPGI consensus and CEO transition may act as catalysts; medium-term thesis hinges on successful conversion of data pipeline and margin lift from operational insourcing* .

Additional Notes and Cross-References:

Adjusted EBITDA discrepancy: Management’s narrative references ~$60k for Q1 while reconciliation table shows $120k; we anchor on the reconciliation ($0.120M) as authoritative .
Non-GAAP adjustments: Adjusted EPS and EBITDA exclude stock-based compensation, depreciation/amortization, and disposal charges, with reconciliations provided in the release .

CHAMPIONS ONCOLOGY, INC. (CSBR)·Q1 2026 Earnings Summary