Revenue

+42% " " "

The record Q3 2025 revenue of $17 million represents a 42% increase driven by a 4% lift in research services business and an additional $4.5 million from a first‐time data licensing deal, building on the previous period's moderate growth. " " "

Operating Expenses

–14.1% " "

Expenses fell by 14.1% due to reductions in salary costs, lab expenses, and outsourced lab services compared to Q3 2024, reflecting a focus on cost management relative to prior periods. " "

Gross Margin

Improved to 61% " "

The gross margin increased to 61% as a result of higher‐margin data revenue and improved operational efficiencies, a noticeable enhancement over the previous year’s performance. " "

R&D Expense

–21.4% " "

A 21.4% decrease in R&D spending was noted as investment in the drug discovery subsidiary was curtailed, marking a more focused allocation of resources than in the previous period. " "

Cash Position

Declined (from $4.5M to $3.2M; –29%) " " " " "

Although Q3 2025 generated approximately $918,000 in net cash from operating activities, the ending cash balance dropped from $4.5 million in Q3 2024 to $3.2 million in Q3 2025, likely due to increased capital allocation for strategic investments. " " " " "

Revenue growth

FY 2025

10% to 15% "

no current guidance

no current guidance

Revenue & Profitability

FY 2026

no prior guidance

sequential quarterly revenue increase and adjusted EBITDA profit with expanding operating margins "

no prior guidance

Cash Flow

FY 2026

no prior guidance

remain cash neutral or cash positive over the next quarter with margin improvements and revenue increases leading to cash growth "

no prior guidance

Capital Expenditures

FY 2026

no prior guidance

No significant capital expenditures are expected for the year "

no prior guidance

Data Licensing Revenue

FY 2026

no prior guidance

Guidance indicates the range will remain similar for the next year or so, with growth anticipated thereafter "

no prior guidance

Radiopharmaceutical Services

FY 2026

no prior guidance

Expected high margin of around 50% to 60% due to capacity constraints and growth opportunities "

no prior guidance

Data Licensing and Commercialization

In earlier quarters, the company introduced its initial licensing deals and proof‐of‐concept arrangements (Q3 " " ) and outlined plans to monetize data (Q2 " ).

In Q4, data licensing efforts contributed $4.7 million to revenue, with evolving partnerships and a growing pipeline supporting commercialization ( " " ).

Increasing pipeline maturity and evolving partnership models, reinforcing a high‐margin revenue strategy.

Multiomic Data Asset Development and AI Integration

Q3 and Q2 emphasized building a deep multiomic dataset with integrated AI capabilities (Q3 " " and Q2 " " ) to enhance drug discovery.

Q4 continues this focus by leveraging its multiomic data through licensing deals and incorporating AI insights into transformative applications ( " " ).

Consistent strategic focus with enhanced integration of AI, reinforcing its potential as a competitive differentiator.

Capital Investment in Data and R&D Initiatives

Previous discussions in Q1 " , Q2 ( " " ), and Q3 ( " " ) centered on optimizing R&D spend while reinvesting in data creation and technology.

Q4 underscores a significant capital allocation toward new data creation and R&D initiatives, notably through the Corellia programs ( " " ).

A reinforced shift toward heavy investment in data-driven R&D while maintaining cost discipline, aligning with long-term growth goals.

Biotech Market and Funding Environment Dynamics

Earlier periods reflected challenges and a tight funding environment with cautious optimism, noting weaknesses in Q1 ( " " " ), modest improvements in Q2 ( " ), and continued challenges in Q3 ( " " ).

Q4 maintains a cautious tone as the environment remains challenging, even as the company leverages niche offerings to sustain growth ( " " ).

Persistent market challenges with gradual improvement, leading to a cautiously optimistic sentiment despite ongoing headwinds.

High-Margin Radiopharmaceutical Services Launch

Not mentioned in Q1, Q2, or Q3 (N/A).

Q4 introduces a new radiopharmaceutical services platform with high margins (50–60%) and differentiated clinical testing using the PDX bank ( " " " ).

An emerging high-margin venture that could be transformative for revenue, adding a new dimension to the company’s service portfolio.

Regulatory Shifts and Competitive Uncertainty

Q1 discussed the Biosecure Act as a potential competitive advantage ( " ) while Q3 addressed regulatory uncertainty and how their deep data strategy differentiates them from competitors ( " " ).

Not mentioned in Q4.

The topic has been dropped in the current period, possibly reflecting a reduced emphasis on regulatory uncertainty or a clearer competitive landscape.

Operational Efficiency and PDX Bank Metrics

Consistent improvements were noted from Q1 ( " " ) through Q2 ( " " ) and Q3 ( " " ), with ongoing enhancements in processes, cost controls, and PDX bank value.

Q4 reaffirms strong operational efficiency with improved gross margins (50% vs. 42% previously) and robust PDX bank metrics underpinning core service growth ( " " ).

A steady trend of operational efficiency improvements and margin expansion, reinforcing the PDX bank's role as a key competitive asset.

Capital Raising for Spin-Out Ventures

Active capital raising for Corellia was highlighted in Q1 ( " ), Q2 ( " ), and Q3 ( " ), emphasizing ongoing discussions with investors and strategic funding efforts.

Q4 continues the active pursuit of outside capital for spin-out ventures, with new investor engagements supporting Corellia’s advancement ( " " ).

Persistent focus on raising capital for spin-out ventures, with evolving strategies to attract different investor bases and support drug development programs.