Sign in

You're signed outSign in or to get full access.

CO

CHAMPIONS ONCOLOGY, INC. (CSBR)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY2025 revenue was $12.355M, down 12% YoY, with gross margin 41% vs 48% last year as lower revenue on a largely unchanged cost base compressed margins .
  • GAAP diluted EPS was -$0.13; Adjusted EBITDA was a loss of $1.016M per reconciliation, with management citing a ~$1.2M adjusted EBITDA loss in narrative due to stock comp, D&A, and an equipment disposal charge .
  • CFO guided to sequential revenue increase and a return to positive adjusted EBITDA next quarter; capital spending expected to be minimal and cash neutral in the near term with cash growth in 2H as revenue/margins improve .
  • CEO transition announced: Ronnie Morris to step down; Rob Brandon to become CEO, reflecting focus on scaling services and monetizing data platforms—a potential stock narrative catalyst .

What Went Well and What Went Wrong

  • What Went Well
    • Data platform monetization continued: Q4 included “new data licensing revenue of approximately $200,000,” building on Q3’s first major deal; management reiterated a growing pipeline and validation of the data strategy .
    • Operational discipline drove FY25 turnaround: record annual revenue $57M, net income $4.6M, adjusted EBITDA $7.1M, and year-end cash $9.8M with no debt .
    • Radiopharmaceutical services launched with attractive economics—expected “50%–60% margin” and ability to address capacity-constrained demand using clinically relevant PDX tumor models .
  • What Went Wrong
    • Q4 revenue declined YoY ($12.355M vs $14.001M), and gross margin fell to 41% (from 48%) on lower revenue against relatively unchanged costs; adjusted EBITDA swung to a loss .
    • Q4 operating loss was $2.0M including non-cash charges (stock comp $131k, D&A $394k, equipment disposal $293k); adjusted EBITDA was a loss, reflecting near-term revenue softness .
    • Sales and marketing increased $533k in Q4 (to $2.309M) tied to expansion of the data BD team and conference spend, creating short-term OpEx pressure amid macro headwinds .

Financial Results

MetricQ4 2024Q3 2025Q4 2025
Revenue ($USD Millions)$14.001 $17.039 $12.355
Gross Margin %48% 61% 41%
GAAP EPS (Diluted, $)-$0.01 $0.31 -$0.13
Adjusted EBITDA ($USD Millions)$0.965 $5.149 -$1.016

Notes:

  • Press release narrative references adjusted EBITDA loss of ~$1.2M for Q4 vs reconciliation table showing -$1.016M; management attributes the gap to non-cash items (stock-based comp, D&A, and equipment disposal) and rounding in narrative .

Segment/Data Mix and KPIs

MetricQ4 2024Q3 2025Q4 2025
Data License Revenue ($USD Millions)N/A$4.5 ~$0.2
Operating Cash Flow ($USD Millions)N/A$0.918 $6.4
Cash ($USD Millions, period-end)N/A$3.2 $9.8
Debt ($USD Millions)N/A$0.0 $0.0

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue trajectoryNext quarterNone“We should see a sequential quarterly revenue increase” New
Adjusted EBITDANext quarterNone“Adjusted EBITDA profit” expected New
Cash flowNext quarter / 2HNone“Remain cash neutral next quarter… project cash growth in the second half” New
CapexFY2026None“Do not expect any significant capital expenditures this year” New
Data licensing revenueNext ~yearNone“Reasonable to expect licensing revenue will be somewhat in the same range for the next year or so” New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2: Q2 2025)Previous Mentions (Q-1: Q3 2025)Current Period (Q4 2025)Trend
Data licensing / AI“Development of new data revenue stream” alongside improving core business First major data licensing deal (up to $8M), $4.5M recognized; gross margin lifted; dedicated GM hire for data platform Several smaller licensing transactions; pipeline “growing”; near-term revenue to be “in same range” before growth; goal to build deepest clinically relevant tumor dataset powering AI/ML Building momentum; monetization broadening
Radiopharmaceutical servicesNot highlightedNot highlightedPlatform launched; high-margin (50–60%); capacity constraints in market; PDX differentiation New line scaling; attractive margin profile
Macro/funding environmentCautious optimism; environment improving modestly (pharma/biotech) Tight environment; improved margins via cost discipline despite constraints Still tight; cancellations declining; more big/mid pharma engagement; cautious optimism for next 1–2 years Gradual recovery signs; cautious tone
Corellia (drug discovery spin-out)Target discovery spend reduced; focus on core Plan to raise outside capital; CSBR to retain stake; no impact on CSBR cash flows Continued capital-raising efforts; programs “super excited”; aim to fund with outside capital Progress toward external funding
Customer mix / bookings conversionOperational improvements and bookings acceleration Improved service margins; discipline on costs and mix Decrease in cancellations; better bookings-to-revenue conversion; focus on Big Pharma multi-study programs Mix moving to resilient Big Pharma

Management Commentary

  • “Fiscal 2025 may ultimately be seen as the pivotal year… we successfully reestablished revenue growth and returned to profitability.”
  • “We should see a sequential quarterly revenue increase and Adjusted EBITDA profit… growing confidence that revenue will increase over the next three quarters, along with expanding operating margins.”
  • On data strategy: “We licensed both existing data and prospective omics-generated data… to power next-generation AI/ML-driven discovery pipelines.”
  • On radiopharma: “You can think of it as a fairly high margin, somewhere 50%–60% margin business… capacity constraint out there.”

Q&A Highlights

  • Macro and cancellations: Management sees a “tight” environment but “glimpses of things turning around”; decline in cancellations and stronger Big Pharma dialogues support cautious growth outlook .
  • Data revenue outlook: Pipeline growing; expect licensing revenue “in the same range for the next year or so” before accelerating; current agreements are pure licenses without milestones/royalties, with potential for deeper partnerships over time .
  • Radiopharma economics: Contracts akin to in vivo statements of work but higher price points; margin “50%–60%,” with demand supported by capacity constraints and PDX differentiation .
  • Capital allocation: Focused R&D spend on building deeper datasets; minimal capex expected; priority on monetizable data creation .
  • Corellia: Pursuing outside capital; CSBR expects to retain a stake; spin-out model aims to be additive to shareholder value .

Estimates Context

MetricConsensus*Actual
Revenue ($USD Millions)$12.013*$12.355
Primary EPS ($USD)-$0.20*-$0.13
# of Estimates1*—
  • Results vs consensus: Revenue beat by ~$0.34M; EPS beat by ~$0.07—both on a small sample of one estimate. Bold: Revenue and EPS beat consensus. Values retrieved from S&P Global*.

Key Takeaways for Investors

  • Q4 softness masks FY25 turnaround: record $57M revenue, $4.6M net income, and $7.1M adjusted EBITDA; balance sheet strengthened with $9.8M cash and no debt .
  • Near-term setup: management expects sequential revenue increase and positive adjusted EBITDA next quarter, with minimal capex and cash neutrality ahead of 2H cash build—supportive for estimate stability/near-term sentiment .
  • Data monetization as multiple expansion narrative: continued licensing activity (Q4 ~$0.2M) after Q3’s major deal ($4.5M recognized), with a growing pipeline and potential evolution to milestone/royalty structures over time .
  • Radiopharmaceutical services add high-margin growth with PDX differentiation and market capacity constraints, supporting margin trajectory as core services normalize .
  • Cost control remains a lever: Q4 margins compressed on revenue decline against stable costs; operating discipline and mix shift (Big Pharma, data) are key to margin re-expansion .
  • Watch CEO transition execution: leadership change to Rob Brandon underscores focus on scaling data/services platforms—a potential narrative catalyst if licensing cadence and radiopharma ramp materialize .
  • Estimate implications: modest upward bias to near-term margins and EPS if sequential revenue growth and adjusted EBITDA profitability are achieved; consensus sample is thin—results may prompt recalibration. Values retrieved from S&P Global*.

Appendix: Additional Detail from Prior Quarters

  • Q3 FY2025: Revenue $17.039M (+42% YoY), gross margin 61%, GAAP diluted EPS $0.31, adjusted EBITDA $5.149M; first data license deal signed, $4.5M data revenue recognized .
  • Q2 FY2025: Revenue $13.489M (+17% YoY), gross margin 45%, GAAP diluted EPS $0.05, adjusted EBITDA $1.1M; nascent data revenue stream noted; focus on operational efficiencies .