OmniAb, Inc. (OABI)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 revenue was $3.9M and GAAP EPS was $(0.15), down year over year on lower milestones and service revenue, partially offset by first xPloration instrument and consumables sales; guidance for 2025 revenue ($20–$25M) and operating expense ($85–$90M) was affirmed .
• Partners and programs continued to scale: 100 active partners (+5 vs. Q1) and 381 active programs, with 32 clinical programs/approved products; management highlighted strong deal flow and the launch of the xPloration Partner Access Program as a diversification and growth driver .
• Operating efficiency actions progressed: headcount reduced to 87 and expected ~$7M annual cash savings, with Q2 cash use only $2.0M and liquidity of $41.6M as of June 30, 2025 .
• Partner pipeline catalysts: Immunovant’s IMVT-1402 entered Phase 3; Teva’s TEV-53408 received FDA Fast Track; JNJ-5322 showed 100% ORR at RP2D, framing near-term narrative drivers tied to later-stage programs and potential milestones/royalties .

What Went Well and What Went Wrong

What Went Well

• “Our business is performing very well…reaching 100 active partners…on pace for one of our strongest years ever in partner adds. Additionally, a recent further streamlining of our operations enhances the scalability and long-term value of our business” — CEO Matt Foehr (press release) .
• xPloration Partner Access Program launched; within weeks, OmniAb sold and installed an instrument and recognized $0.6M of xPloration revenue, demonstrating early commercialization traction and revenue diversification .
• Partner pipeline momentum: IMVT-1402 Phase 3 start; JNJ-5322 trispecific with 100% ORR at RP2D; TEV-53408 Fast Track in celiac disease — all supportive of downstream milestones and royalty potential .

What Went Wrong

• Q2 revenue declined to $3.9M from $7.6M YoY as milestone revenue fell by $1.8M and service revenue declined due to discontinuation/recognition timing of small-molecule ion channel programs .
• GAAP net loss widened YoY to $(15.9)M and $(0.15) per share versus $(13.6)M and $(0.13), reflecting lower revenue despite cost reductions; loss from operations remained elevated .
• Royalty revenue decreased YoY ($0.111M vs. $0.318M), with China PD-1/PD-L1 market pressures previously noted by management as headwinds to certain royalties .

Financial Results

Financial Overview vs. Prior Two Quarters

Q2 2025 Revenue Mix (YoY)

Selected Operating Items (Q2 YoY)

Liquidity and Cash Flow Highlights

KPIs and Pipeline

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Our business is performing very well…reaching 100 active partners…puts us on pace for one of our strongest years ever in partner adds…xPloration Partner Access Program…potential to expand and diversify our revenue streams” — Matt Foehr, CEO (press release) .
• “Research and development expense was $10.9M…G&A $7.7M…other operating income included a $3.0M gain from the sale of a small molecule program to Angelini Pharma…Net loss…$(15.9)M, or $(0.15) per share” — Q2 release detail .
• “We expect…the actions that we took…will result in approximately $7,000,000 of annual cash savings going forward” — Kurt Gustafson, CFO (call) .
• “Exploration…offers 10x more single cell screening throughput…sold and installed [an] instrument…creating…recurring revenue from proprietary single-use consumables and subscription services for software with maintenance” — management (call) .

Q&A Highlights

• Estimates/Guide and xPloration contribution: Guidance unchanged; xPloration expected to be additive but still small early; instrumentation sale plus consumables/subscriptions model clarified .
• Pipeline breadth (large vs. small biotech): Additions across large pharma, SMid-cap, and academia; momentum sustained; attrition normal part of discovery/development .
• Janssen trispecific economics: Management indicated $35M milestones associated with first sales; not a fully prepaid license, differentiating from prior bispecific .
• xPloration revenue model: High-margin back-end (consumables/subscriptions) noted; per-instrument back-end varies by customer; reagent rental not current plan .
• Additional tech launch: Another technology launch planned this year, highly relevant to accelerating antibody discovery, with novelty and impact expected .

Estimates Context

• Wall Street consensus estimates from S&P Global were unavailable for OABI for Q2 2025 due to missing CIQ mapping for the ticker in the SPGI dataset; as a result, we cannot assess beats/misses versus consensus for this quarter [SpgiEstimatesError].
• Given the unavailability, comparisons vs. estimates are omitted; management affirmed full-year guidance ranges as the anchor for expectations .

Key Takeaways for Investors

• Execution and diversification: Early xPloration commercialization and partner momentum (100 active partners, 381 programs) support multi-source revenue growth while core licensing continues to scale .
• Cost discipline: Headcount reductions and ~$7M annual cash savings, plus lower R&D/G&A YoY, position the P&L for improved operating leverage as revenue drivers mature .
• Pipeline catalysts: Near-term visibility from IMVT-1402 Phase 3, JNJ-5322 (100% ORR), and Teva’s Fast Track underscore potential milestone and royalty optionality .
• Revenue mix transition: Expect continued lumpiness in milestones/service; watch for incremental xPloration instrument placements and recurring consumables/subscriptions — a potentially high-margin stream .
• Guidance as the near-term anchor: With consensus estimates unavailable, use affirmed FY25 revenue ($20–$25M) and OpEx ($85–$90M) ranges for modeling; monitor Q3 for xPloration pipeline updates and any milestone timing .
• Trading implications: Near-term stock drivers include partner clinical updates (esp. IMVT-1402, JNJ-5322), additional tech launch disclosure, and evidence of xPloration adoption breadth; dips on quarterly revenue volatility may be opportunities if pipeline and xPloration traction accelerate .