CSBR

Image source: The Motley Fool. Thursday, Sept. 10, 2026 at 4:30 p.m. ET Chief Executive Officer - Robert Brainin Chief Financial Officer - David Miller Operator: Greetings. Welcome to the Champions Oncology First Quarter Fiscal Year 2027 Earnings Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Rob Brainin, Chief Executive Officer. You may begin. Robert Brainin: Good afternoon, and thank you for joining our first quarter fiscal 2027 earnings call. I'm Rob Brainin, CEO of Champions Oncology, and I'm joined today by our CFO, David Miller. Before we begin, I'll remind everyone that today's remarks may include forward-looking statements. Actual results may differ materially, and you can find more information in our filings with the SEC. When we spoke in July, I said fiscal '26 was an investment year and that the onus was on us to deliver in fiscal 2027. The first quarter is a strong data point that we're moving in the right direction. Revenue was $15.2 million, compared to $14 million in the first quarter of fiscal '26. Gross margin was 50%, up from 43% in Q1 fiscal '26. Adjusted EBITDA was approximately $700,000 and on a GAAP basis, we reported a net loss of $0.4 million. That included $1.1 million of noncash expense. This represents our fifth consecutive quarter of positive adjusted EBITDA. Both our services business and our data business contributed to that improvement, and I'll touch on them in turn. Our translational oncology services business generated $14.3 million of revenue in the quarter. And margins in that business held where we wanted them, and the operating discipline we described in July showed up again this quarter. This is the part of Champions that has always been a predictive modeling business. A customer brings us to therapy, we run it through the most clinically relevant models in the industry, and we predict how the drug is likely to behave in patients. The demand environment for that work is healthy, and the quality of our tumor bank continues to be a core reason customers come to us. We feel good about how we're showing up in the market and look forward to continuing to share updates over the coming quarters as the year goes on. Data licensing revenue was $893,000 in the first quarter. To put that in context, we generated more data revenue in this 1 quarter than in all of fiscal 2026, reflecting the broader base of customers we spent the last year building. Much like our TOS business, we look at this on an annual basis rather than a quarterly one, though. Contracts close on their own time lines and while we're very pleased with the progress, revenue will remain lumpy. Pipeline continues to be robust and the strategic case keeps strengthening. As sponsors lean harder on AI and machine learning to make development decisions, the constraint isn't the model. It's the data underneath it. Deeply characterized clinically annotated, patient-derived data is scarce, and we have it. That's what will let us move from predicting the outcome of one study at a time toward helping sponsors find signatures, select the right patients and design better trials. On Corellia, our wholly-owned therapeutic subsidiary, we remain encouraged. The external conversations continue with both venture groups and potential pharmaceutical partners and the data we're generating continues to strengthen the case. I'm not going to put a date on any outcome for the same reasons I gave in July. If we're successful in securing outside funding or a licensing partnership, the investment currently flowing into that business would be redeployed toward our other growth initiatives, particularly data and to the bottom line. In conclusion, fiscal 2026 was an investment year. The first quarter of fiscal 2027 is evidence that those investments are paying off in revenue, in margin, and in data as well as progress in our discussions related to Corellia's pipeline. We have 3 more quarters to prove it out in fiscal '27 and we'll keep reporting against it in the same way each time. With that, I'll turn the call over to David to walk through the financials in more detail. David Miller: Thanks, Rob, and good afternoon, everyone. Our full financial results for the quarter will be filed with the SEC on Form 10-Q on or before September 14. As Rob highlighted, revenue for the first quarter was $15.2 million, an increase of approximately 9% from $14 million in the prior year quarter. On a GAAP basis, we reported a net loss of approximately $426,000 compared with a net loss from operations of $527,000 a year ago. Turning to the cash-based operating results as we typically discuss them. Adjusted EBITDA increased to $671,000 from $59,000 in the prior year quarter. This is our fifth consecutive quarter of positive adjusted EBITDA and our focus is on continuing to grow revenue while expanding profitability. Let me provide a little more detail on the drivers of the quarter, starting with revenue. The improved quality of our sales over the last several quarters resulted in a higher percentage of contracted study value converting to revenue in Q1. Importantly, that trend continued with sales made during the first quarter with expected conversion percentages remaining strong. And as Rob discussed, data license revenue also contributed to the year-over-year growth, reflecting the broader customer base we built last year. Another meaningful development was the improvement in oncology services margin, which increased to 51% from 43%. The improvement was driven by a few factors. Cost of oncology revenue declined by approximately $500,000 to $7.5 million from $8 million a year ago despite the increase in revenue. The reduction was driven primarily by lower third-party radiolabeling costs. As we've discussed over the past year, we've been working to bring those capabilities in-house, resulting in a lower cost structure. Increased revenue also contributed to the margin improvement, reflecting the leverage we have in the business. Turning to operating expenses. R&D expense was $1.9 million compared with $2.1 million in the prior year quarter. We were able to reduce spending in our core services business, while redirecting resources towards Corellia and our data initiatives. Sales and marketing expense was $3 million compared with $1.8 million a year ago. As we've discussed previously, we made a deliberate investment last year to expand our commercial organization across both our research services and data businesses. That investment is now reflected in our expense base and our focus is on generating greater revenue and profitability from it. G&A expense was essentially flat at approximately $2.1 million in both periods. Turning to cash. We used approximately $500,000 of cash during the quarter, primarily reflecting working capital movements in the ordinary course of business, including a reduction in accounts payable and higher accounts receivable. We ended the quarter with approximately $4.4 million of cash and no debt. Overall, the quarter demonstrates the operating leverage we've been working towards. Revenue grew, oncology services margin improved significantly, and adjusted EBITDA expanded while we continue to support the investments we've made for future growth. We are continuing to build on the foundation established last year with a focus on maintaining expense discipline and converting revenue growth into improved profitability. With that, I'll turn the call back over to Rob and ask for any questions. Operator: [Operator Instructions] We currently have no questions in the queue. I'd like to turn the floor back to Rob Brainin, for any closing remarks. Robert Brainin: Great. Thank you. Really appreciate. Appreciate everyone dialing in or listening to the recording. As you can tell, we're really encouraged and excited about the progress we've been making and the trajectory of the business. And look forward to in the coming quarters, sharing more about that progress and how we're doing. We'll speak to you then. Have a great afternoon. Thanks. Operator: Thank you. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Champions Oncology, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Champions Oncology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!* Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of September 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Champions Oncology (CSBR) Q1 2027 Earnings Call Transcript was originally published by The Motley Fool

Interested in Champions Oncology, Inc.? Here are five stocks we like better. Revenue and profitability improved: First-quarter fiscal 2027 revenue rose 9% to $15.2 million, while adjusted EBITDA increased to $671,000 from $59,000, marking the company’s fifth consecutive positive quarter. Services margins expanded: Translational oncology services revenue reached $14.3 million, and its margin improved to 51% from 43%, driven by lower third-party radiolabeling costs and operating leverage. Data licensing gained momentum: Data revenue reached $893,000, exceeding the full fiscal 2026 total, although management cautioned that quarterly results may remain uneven. Champions ended the quarter with $4.4 million in cash and no debt while continuing discussions around potential Corellia funding or licensing. Champions Oncology (NASDAQ:CSBR) reported first-quarter fiscal 2027 revenue growth, improved margins and its fifth consecutive quarter of positive adjusted EBITDA, as both its translational oncology services and data licensing businesses contributed to results. Revenue for the quarter totaled $15.2 million, up approximately 9% from $14.0 million in the prior-year period. The company reported a GAAP net loss of approximately $426,000, compared with a net loss from operations of $527,000 a year earlier. Adjusted EBITDA rose to $671,000 from $59,000 in the prior-year quarter. → Morgan Stanley Eyes Good Things Ahead for Meta After $18 Billion Legal Settlement “The first quarter is a strong data point that we are moving in the right direction,” Chief Executive Officer Rob Brainin said. He described fiscal 2026 as an investment year and said the company is focused on demonstrating that those investments are producing revenue, margin and data-business progress during fiscal 2027. Champions Oncology’s translational oncology services business generated $14.3 million of revenue during the quarter. Brainin said demand for the company’s predictive modeling work remained healthy, adding that the quality of its tumor bank continues to be an important factor for customers. → Tesla’s Robotaxi Launch Wasn’t the Moment Investors Expected The company’s oncology services margin increased to 51% from 43% in the prior-year quarter. Chief Financial Officer David Miller said cost of oncology revenue declined to approximately $7.5 million from $8.0 million a year ago despite higher revenue. He attributed the reduction primarily to lower third-party radiolabeling costs as the company brings those capabilities in-house. Miller also said higher revenue contributed to the margin expansion through operating leverage. He noted that improved sales quality over recent quarters resulted in a higher percentage of contracted study value converting to first-quarter revenue, a trend that continued with sales made during the quarter. → Despite Post-Earnings Drop, Wall Street Analysts Eye New Highs for Broadcom Stock Data licensing revenue was $893,000 in the first quarter, exceeding the amount Champions Oncology generated from data revenue during all of fiscal 2026, according to Brainin. He said the performance reflected a broader customer base developed over the last year. Management cautioned that data licensing revenue is likely to remain uneven from quarter to quarter because contracts close on their own timelines. Still, Brainin said the pipeline remains robust and the strategic rationale for the business is strengthening as drug developers increasingly use artificial intelligence and machine learning in development decisions. “The constraint isn't the model, it's the data underneath it,” Brainin said, pointing to the company’s clinically annotated, patient-derived data. He said the data business could help sponsors identify signatures, select patients and design trials, rather than only predict the results of individual studies. Research and development expense declined to $1.9 million from $2.1 million in the prior-year period. Miller said the company reduced spending in its core services business while redirecting resources toward its Corellia therapeutic subsidiary and data initiatives. Sales and marketing expense increased to $3.0 million from $1.8 million a year earlier, reflecting a deliberate investment in expanding the commercial organization across research services and data businesses. General and administrative expense was essentially unchanged at approximately $2.1 million. Champions Oncology used approximately $500,000 of cash during the quarter, primarily due to ordinary working-capital movements, including lower accounts payable and higher accounts receivable. The company ended the period with approximately $4.4 million in cash and no debt. Brainin said external discussions regarding Corellia continue with venture groups and potential pharmaceutical partners. He did not provide a timetable for a funding or licensing outcome. If outside funding or a licensing partnership is secured, he said investment currently directed to Corellia could be redeployed to other growth initiatives, particularly the data business, and to the company’s bottom line. Management said it intends to maintain expense discipline while pursuing revenue growth and improved profitability through the remainder of fiscal 2027. Champions Oncology, Inc engages in the development and sale of technology solutions and products to personalize the development and use of oncology drugs. Its technology platform, TumorGraft, is a novel approach to personalizing cancer care based upon the implantation of human tumors in immune-deficient mice. It uses its technology to offer solutions to Translational Oncology Solutions, which includes pharmaceutical and biotechnology companies; and Personalized Oncology, which assists physicians in developing personalized treatment options for their cancer patients. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Champions Oncology Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

This article first appeared on GuruFocus. Revenue: Record annual revenue of $59.4 million for fiscal 2026. Fourth-quarter revenue was $13.8 million, a 12% increase over the prior-year quarter. Services Revenue: Record $58.7 million for the Translational Oncology Solutions business, up approximately 12% year-over-year. Data-License Revenue: Approximately $800,000 for fiscal 2026, compared to $4.7 million in fiscal 2025, which included a large non-recurring transaction. Adjusted EBITDA: Positive $158,000 for the fourth quarter, marking the fourth consecutive quarter of positive adjusted EBITDA. Full-year adjusted EBITDA was $1.6 million. Gross Margin: Fourth-quarter gross margin improved to 51% from 41% in the prior-year quarter. Full-year gross margin increased to 48% from 46% in the prior year. Operating Expenses: Full-year operating expenses increased, with approximately $3 million of the increase related to temporary outsourced radiopharma activities. Cash: Ended the year with $4.9 million cash and no debt. Warning! GuruFocus has detected 2 Warning Sign with CSBR. Is CSBR fairly valued? Test your thesis with our free DCF calculator. Release Date: July 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record annual revenue of $59.4 million, driven by 12% growth in core study-services business. Achieved positive adjusted EBITDA in each quarter of fiscal 2026, the first time since fiscal 2022. Gross margin improved to 51% in Q4 from 41% in the prior-year quarter, reflecting cost discipline and in-sourcing of radiopharmaceutical work. Expanded customer base for data business through multiple smaller licensing agreements, growing pipeline of opportunities. Corellia therapeutic subsidiary continues to generate compelling data, with active discussions with venture capital and pharma partners. Data-license revenue dropped significantly to $800,000 in fiscal 2026 from $4.7 million in fiscal 2025 due to a non-recurring large transaction. GAAP net loss reported due to deliberate investments in data platform, Corellia, and sales expansion. Services growth expected to moderate to a more normalized pace in the near term after strong conversion. Some expected Q4 data revenue shifted into fiscal Q1 2027, causing quarter-to-quarter fluctuations. Corellia funding remains a risk; external funding or partnership timing is uncertain in the current biotech funding environment. Q: The transcript shows no Q&A session occurred. However, based on the prepared remarks, what were the key drivers behind the record annual revenue and positive adjusted EBITDA in fiscal 2026?A: Rob Brainin (CEO): The record annual revenue of $59.4 million was driven by 12% growth in our core Translational Oncology Solutions (TOS) services business, which reached a record $58.7 million. This growth was achieved without material additions to headcount, demonstrating operating leverage. We also met our commitment to full-year positive adjusted EBITDA of $1.6 million, including positive adjusted EBITDA in each of the four quarters for the first time since fiscal 2022. Q: Why did data-license revenue decline significantly from $4.7 million in fiscal 2025 to approximately $800,000 in fiscal 2026?A: Rob Brainin (CEO): The year-over-year comparison is misleading. The prior year's figure included one large, non-recurring transaction. In fiscal 2026, we expanded our customer base through a series of smaller licensing agreements, growing from a very small customer base to a much larger one. The pipeline of opportunities has also grown, both in number and potential size. Some expected Q4 revenue, including from a larger agreement, shifted into Q1 of fiscal 2027. Q: What is the strategic logic behind the data business, and how does it relate to the company's core services?A: Rob Brainin (CEO): Our work in PDX models is a form of predictive modeling. This becomes far more powerful when combined with a deeply characterized data set and modern machine learning and AI. This combination allows us to move from predicting the result of one study to helping partners identify signatures, select the right patients, and design better trials. The long-term opportunity strengthens as AI becomes more central to drug discovery. Q: What is the current status and funding plan for Corellia, the company's wholly owned therapeutic subsidiary?A: Rob Brainin (CEO): We remain encouraged by the compelling data and positive feedback from venture-capital groups and potential pharmaceutical partners. The fiscal 2027 budget assumes Corellia is funded for the full year. If we secure external funding through an outside round or licensing partnership, the investment currently flowing into Corellia would be redeployed towards other growth initiatives, particularly data, or put to the bottom line. Discussions are active, but timing is uncertain. Q: What drove the significant improvement in gross margin from 41% to 51% in the fourth quarter?A: David Miller (CFO): The improvement reflected continued cost discipline and, importantly, a meaningful reduction in outsourced radiopharmaceutical costs as we have continued transitioning that work in-house. This operational initiative is beginning to show in our financial results. For the full year, gross margin improved to 48% from 46%, despite fiscal 2025 benefiting from high-margin data revenue and fiscal 2026 including temporarily outsourced radiopharma costs. Q: How did operating expenses change in fiscal 2026, and what were the main drivers?A: David Miller (CFO): Full-year operating expenses increased as planned. Approximately $3 million of the increase was related to the temporary outsourced radiopharma activities. The remainder primarily reflected the continued development of our data platform and the expansion of our sales and marketing organization to support both the core research-service business and emerging data offerings. Q: What is the company's outlook for services growth in the near term?A: Rob Brainin (CEO): After this year's strong conversion, we would expect services growth to moderate to a more normalized pace in the near term. The underlying demand environment is healthy, and our focus is on continuing to expand bookings and the future pipeline of work. Q: What is the company's financial position and capital allocation strategy?A: David Miller (CFO): We ended the year with $4.9 million cash and no debt. We maintained a healthy balance sheet while continuing to invest in the business. Our focus for fiscal 2027 is on executing our operating plan, continuing to improve profitability, and maintaining financial discipline. We will continue evaluating opportunities to invest where they can generate attractive, long-term returns. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Shares of Champions Oncology, Inc. CSBR have lost 10.9% since the company reported its earnings for the quarter ended April 30, 2026. This compares to the S&P 500 Index’s 0.9% decline over the same time frame. Over the past month, the stock lost 9.7% compared with the S&P 500’s 2.7% decline. Champions Oncology reported fiscal 2026 revenues of $59.4 million, up 4.4% from $56.9 million in fiscal 2025, driven by growth in its core research services business. The company posted a GAAP loss of $0.08 per diluted share for the year against earnings of $0.33 per diluted share in the prior year. For the full year, operating loss was $1.1 million against an operating income of $4.6 million in fiscal 2025. Fourth-quarter fiscal 2026 revenues increased 11.9% year over year to $13.8 million, while diluted loss per share narrowed to $0.05 from $0.13 in the year-ago quarter. CSBR reported a GAAP loss from operations of $522,000 in the fourth quarter of fiscal 2026, narrowing from a $2 million loss in the prior-year quarter. Adjusted EBITDA was $1.6 million for fiscal 2026 compared with $7.1 million in fiscal 2025, while fourth-quarter fiscal 2026 adjusted EBITDA improved to $158,000 from a loss of $1.2 million. Champions Oncology’s core pharmacology services business remained the primary growth contributor during fiscal 2026. Pharmacology services revenues rose 17.6% to $57.1 million from $48.6 million in the prior year, reflecting improved conversion of previously booked studies into revenues, including projects delayed from the prior fiscal year. CSBR’s data licensing business experienced a significant decline during the year, with TOS data license revenues falling to $764,000 from $4.7 million in fiscal 2025. Management noted that the prior-year figure benefited from a large single-customer licensing transaction that did not recur. In fiscal 2026, data revenues came from multiple smaller agreements, while Champions Oncology expanded its customer base and continued pursuing larger strategic licensing opportunities. Other TOS revenues, which include flow cytometry services and SaaS revenue through Lumin, declined 58.5% to $1.5 million from $3.7 million, primarily due to lower flow cytometry revenues as Champions Oncology shifted investment and strategic focus away from that area. Champions Oncology, Inc. price-consensus-eps-surprise-chart | Champions Oncology, Inc. Quote Champions Oncology improved quarterly profitability metrics as cost discipline and operational initiatives supported margins. Fourth-quarter fiscal 2026 oncology services margin increased to 51% from 41% a year ago, helped by lower outsourced research service costs and the transition of certain radiopharmaceutical activities in-house. For the full year, oncology services margin was 48% compared with 50% in fiscal 2025. CSBR attributed the decline primarily to temporary outsourced laboratory costs associated with expanding radiopharmaceutical capabilities. Cost of oncology revenues increased 8.8% to $30.9 million, mainly due to outsourced laboratory expenses, although management expects internalization of radiopharmaceutical activities to reduce costs going forward. Management highlighted fiscal 2026 as a year focused on building capabilities for future expansion while maintaining positive adjusted EBITDA. CEO Robert Brainin said that CSBR continued investing in two major growth areas — its data platform and Corellia, while also expanding its translational oncology services business and radiopharmaceutical platform. Research and development expenses in fiscal 2026 increased 33.1% to $9.1 million, reflecting investments in the data platform, sequencing and laboratory costs. Sales and marketing expenses increased 23.5% to $9.3 million as Champions Oncology expanded its commercial organization to support both research services and data offerings. General and administrative expenses rose 19.4% to $11.2 million due to higher compensation, stock-based compensation and information technology investments. Management expects research services growth to moderate to a more normalized pace after strong conversion activity in fiscal 2026. However, executives said that the underlying demand environment remains healthy and emphasized the importance of expanding bookings and the future pipeline of work. CSBR continues to see long-term potential in combining its deeply characterized oncology models with data analytics, machine learning and AI capabilities. Management said that the data business remains in an early stage, with revenues expected to fluctuate near term, but believes the strategic opportunity will strengthen as AI becomes more important in drug discovery. Champions Oncology also expects to maintain investment in Corellia during fiscal 2027. Management noted that the fiscal 2027 budget assumes Corellia is funded for the full year, while external funding opportunities through a financing round or licensing partnership remain under discussion. During fiscal 2026, Champions Oncology continued transitioning radiopharmaceutical activities in-house, reducing reliance on outsourced laboratory services. The company also expanded its data licensing customer base and continued developing its commercial organization to support research services and emerging data offerings. CSBR ended fiscal 2026 with $4.9 million in cash and no debt, providing financial flexibility to continue executing its growth strategy. The company said it believes its cash position, combined with expected operating cash flows, is sufficient to fund operations through at least August 2027. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Champions Oncology, Inc. (CSBR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Champions Oncology, Inc.? Here are five stocks we like better. Record fiscal 2026 performance: Revenue reached $59.4 million, up from the prior year, and adjusted EBITDA was positive in every quarter, totaling $1.6 million for the year. Fourth-quarter revenue rose 12% year over year to $13.8 million. Core services drove growth and margins: Translational Oncology Solutions revenue increased approximately 12% to $58.7 million, while fourth-quarter gross margin improved to 51% as more radiopharmaceutical work moved in-house. Growth investments and funding remain priorities: Data-license revenue declined to $800,000 after a nonrecurring large transaction in fiscal 2025, though management cited a growing pipeline. Champions is also seeking outside funding or a licensing deal for Corellia and ended the year with $4.9 million in cash and no debt. Champions Oncology (NASDAQ:CSBR) reported record revenue for fiscal 2026 and positive adjusted EBITDA in every quarter of the year, supported by growth in its core Translational Oncology Solutions, or TOS, services business and efforts to bring radiopharmaceutical work in-house. For the fourth quarter, revenue rose 12% year over year to $13.8 million. Full-year revenue reached a record $59.4 million, while adjusted EBITDA totaled $1.6 million. Fourth-quarter adjusted EBITDA was $158,000, marking the company’s fourth consecutive quarter of positive adjusted EBITDA. → MarketBeat Week in Review – 07/20- 07/24 CEO Rob Brainin said fiscal 2026 was an investment year in which the company continued to fund its data platform, its Corellia therapeutic subsidiary and growth initiatives within its research-services operations while meeting its profitability objective. “In fiscal 2026, we delivered record annual revenue and met our commitment to full-year positive Adjusted EBITDA, including positive Adjusted EBITDA in each of the four quarters on its own, the first time that has happened since fiscal 2022,” Brainin said. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit The company’s Translational Oncology Solutions business produced its strongest year to date, according to Brainin. Services revenue increased about 12% from the prior year to a record $58.7 million, benefiting from the conversion of previously booked studies and the company’s patient-derived xenograft, or PDX, model bank. Brainin said the operations team delivered that growth without material additions to headcount, which he characterized as evidence of improving operating leverage. He also cautioned that quarterly results can vary based on study-completion timing and said the company evaluates the services business on an annual basis. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Following strong study conversion in fiscal 2026, Champions Oncology expects services growth to moderate toward a more normalized pace in the near term. However, Brainin said the demand environment remains healthy, with the company focused on expanding bookings and its future work pipeline. Data-license revenue was approximately $800,000 in fiscal 2026, compared with $4.7 million in fiscal 2025. Management said the prior-year figure included one large transaction that did not recur. The fourth quarter did not include meaningful data revenue. Some revenue expected in the period, including revenue connected with a previously discussed larger agreement, shifted into the first quarter of fiscal 2027, Brainin said. Management said the timing and scale of individual data transactions can create significant quarter-to-quarter revenue fluctuations. Still, Brainin said the company expanded its customer base through smaller licensing agreements during fiscal 2026 and continued to pursue larger strategic licensing opportunities. “Our pipeline has also grown, both in the number of opportunities and the size of potential transactions,” Brainin said, adding that customer engagement has increased around the combination of deeply characterized models and clinically relevant data. The company continues to invest in its data platform, which management views as a longer-term opportunity. Brainin said Champions Oncology’s predictive modeling capabilities could be strengthened by combining its data sets with machine learning and artificial intelligence, potentially helping partners identify signatures, select patients and design clinical trials. Chief Financial Officer David Miller said fourth-quarter gross margin improved to 51%, compared with 41% in the prior-year period. He attributed the gain to cost discipline and a meaningful reduction in outsourced radiopharmaceutical costs as the company transitions more of that work internally. For the full year, reported gross margin increased to 48% from 46%. Miller said the underlying improvement in the core study-services business was greater than the reported increase suggests, because fiscal 2025 benefited from higher-margin data revenue and fiscal 2026 included temporarily outsourced radiopharma costs. Operating expenses increased during the year as planned. Approximately $3 million of the increase was related to temporary outsourced radiopharma activities, while the remainder largely reflected development of the data platform and an expanded sales and marketing organization, Miller said. The company ended fiscal 2026 with $4.9 million in cash and no debt. Champions Oncology’s fiscal 2027 budget assumes Corellia, its wholly owned therapeutic subsidiary, will be funded for the full year. Brainin said the company continues discussions with venture capital groups and potential pharmaceutical partners regarding external funding or a licensing partnership. If the company secures outside funding or a licensing arrangement, capital currently being directed to Corellia could be redeployed to other growth initiatives, particularly the data business, or contribute to the bottom line, he said. Brainin did not provide a timetable for a potential transaction, noting that such processes can take time in the current biotech funding environment. He said discussions remain active, feedback has been positive and the data supporting the program continues to strengthen. Looking ahead, management said its fiscal 2027 priorities include executing its operating plan, improving profitability and maintaining financial discipline while evaluating investments that could generate long-term returns. Champions Oncology, Inc engages in the development and sale of technology solutions and products to personalize the development and use of oncology drugs. Its technology platform, TumorGraft, is a novel approach to personalizing cancer care based upon the implantation of human tumors in immune-deficient mice. It uses its technology to offer solutions to Translational Oncology Solutions, which includes pharmaceutical and biotechnology companies; and Personalized Oncology, which assists physicians in developing personalized treatment options for their cancer patients. 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This article first appeared on GuruFocus. Release Date: March 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Champions Oncology Inc (NASDAQ:CSBR) reported another quarter of strong operational performance with record services revenue. The company achieved its third consecutive quarter of positive adjusted EBITDA. There is early momentum in the data business, with new deals closed and additional revenue expected in the fourth quarter. The PDX Bank remains a market differentiator, contributing to the resilience of customer relationships. The company is managing to invest in growth opportunities while maintaining positive adjusted EBITDA, indicating disciplined capital allocation. Total revenue for the quarter decreased by approximately 3% compared to the prior year period. There was no data revenue recognized in the third quarter, contributing to the overall year-over-year revenue decline. Gross margin decreased to 47% from 61% in the prior year, partly due to outsourced laboratory work costs. Operating expenses increased significantly, reflecting investments in strategic priorities, which impacted short-term profitability. Net cash used in operating activities was $1.4 million, driven by changes in working capital and decreased deferred revenue. Warning! GuruFocus has detected 2 Warning Sign with CSBR. Is CSBR fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an overview of the company's financial performance this quarter? A: David Miller, CFO, explained that total revenue for the quarter was $16.6 million, a slight decrease from $17 million in the prior year. However, core study revenue reached a record $16.6 million, reflecting a 32% growth. The decline in total revenue was due to the absence of data revenue this quarter, compared to $4.5 million in the prior year. The company achieved its third consecutive quarter of positive adjusted EBITDA at $575,000. Q: What factors contributed to the changes in gross margin this quarter? A: David Miller noted that the gross margin was 47%, down from 61% last year. This was primarily due to over $2 million in outsourced laboratory work costs. As the company brings this work in-house, they expect costs to decline and margins to improve. Last year's margins also benefited from a data license transaction. Q: How is the company progressing with its data business? A: CEO Rob Brainin highlighted that while no data revenue was recognized this quarter, the company closed a six-figure data deal expected to be recognized in Q4. They are seeing traction with smaller transactions, which could lead to larger deals in the future. The data business is expected to become a more regular contributor over time. Q: What are the strategic priorities for Champions Oncology moving forward? A: Rob Brainin emphasized the focus on scaling the core services business, investing in the data platform, and advancing the Corellia subsidiary. The company aims to maintain positive adjusted EBITDA while investing in growth opportunities. They expect these investments to yield results in fiscal 2027 and beyond. Q: Can you elaborate on the funding strategy for Corellia? A: Rob Brainin mentioned that while they have included Corellia's funding in their fiscal 2027 budgeting, they are actively seeking external funding. The timing of this funding is uncertain due to the current biotech funding environment, but discussions are ongoing, and the data being generated continues to strengthen the investment case. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Record services revenue was driven by strong conversion of previously booked work and the completion of backlog from prior quarters. The year-over-year revenue decline resulted from a difficult comparison against a large $4.5 million data deal in the prior year period, which the core services business nearly offset. Management reported a decline in gross margins to 47% from 61% in the prior year, primarily due to outsourced laboratory work and the lack of high-margin data license revenue in the current quarter. Despite these margin pressures and increased operating expenses from headcount expansion in sales and marketing, the company achieved its third consecutive quarter of positive adjusted EBITDA through record study revenue growth. The core services platform is anchored by a differentiated PDX Bank and expanding radiopharmaceutical capabilities to enhance competitive positioning. The business model is intentionally managed on an annual basis to account for 'lumpy' quarterly revenue fluctuations caused by the timing of study progression and completion. Strategic investments in the data platform and Corellia subsidiary are being funded through internal cash flow to avoid dilution of Champions' shares. Management expects revenue to normalize in the near term as studies move through various stages following the recent period of high study completion. The company remains on track for full-year revenue growth and full-year positive adjusted EBITDA for fiscal 2026. Meaningful acceleration from current investments in data and drug discovery is projected to begin in fiscal 2027 with more significant impacts in fiscal 2028. Data revenue is expected to return in the fourth quarter, supported by a recently closed six-figure deal and incremental revenue from a large legacy contract. Fiscal 2027 budgeting currently includes the funding of Corellia, though management is actively pursuing external venture capital or licensing partners to offload these costs. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Gross margins were suppressed at 47% due to over $2 million in outsourced laboratory work for radiolabeling, which management plans to bring in-house to improve margins. Operating expenses increased due to strategic investments in sequencing for the data platform and leadership transitions. The timing of external financing for the Corellia subsidiary remains uncertain due to the current biotech funding environment, despite active engagement with partners. A decrease in deferred revenue during the quarter was driven by the specific timing of billings, impacting net cash used in operating activities. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Image source: The Motley Fool. Thursday, March 12, 2026 at 4:30 p.m. ET Chief Executive Officer — Robert Brainin Chief Financial Officer — David Miller Robert Brainin: Good afternoon, and thank you for joining us for our third quarter fiscal 2026 earnings call. I'm Rob Brainin, CEO of Champions Oncology, and I'm joined today by our CFO, David Miller. Before we begin, I'll remind everyone that today's remarks may include forward-looking statements. Actual results may differ materially, and additional information can be found in our filings with the SEC. Before I walk through the quarter, let me briefly highlight 3 key takeaways. First, we delivered another quarter of strong operational performance, including record services revenue and our third consecutive quarter of positive adjusted EBITDA. Second, while quarterly revenue can fluctuate in our business, we remain on track for full year revenue growth and full year positive adjusted EBITDA while continuing to invest in both our data platform and our discovery therapeutics subsidiary. And third, we're beginning to see early momentum in our data business, including new deals closed during the quarter and additional revenue expected in the fourth quarter. Overall, we're pleased with the progress we're making as we scale the core services business while booting the longer-term growth opportunities in data and drug discovery. Turning to the quarter in more detail. We delivered another quarter of record services revenue, underscoring the strength of our core translational oncology services platform and the resilience of our customer relationships. Our PDX Bank remains a true differentiator in the market. And as customer budgets stabilize, we continue to see bookings convert into revenue. I also want to thank our operations team who delivered this growth without material additions to headcount. That reflects the operating leverage in our model and our ability to expand margins as we scale. As we've said repeatedly, this is a somewhat lumpy business. Quarterly revenue can fluctuate depending on the timing of study progression and completion. During the quarter, we saw strong conversion of previously booked work, including some backlog from prior quarters, which benefited revenue in the period. Looking ahead, we would expect revenue to normalize somewhat as studies move through their various stages. That said, the underlying demand for our services remains healthy, and our focus continues to be on expanding the pipeline of future work through increased commercial engagement. This quarter, despite strong services performance, our year-over-year revenue showed a slight decline due to the large data deal we closed in the third quarter last year. Importantly, our services revenue came close to fully offsetting that comparison. Stepping back from the quarter-to-quarter noise, which is why we manage the business on an annual basis, we remain on track for full year revenue growth and full year positive adjusted EBITDA. all while continuing to invest in both our data business and Corellia without dilution of Champions' shares. That balance, growth and investment, coupled with disciplined focus on the bottom line is central to how we're managing the company. While EBITDA remains somewhat suppressed in the near term as we continue investing in these growth drivers, we expect the payoff from those investments to begin showing up in fiscal 2027 with more meaningful acceleration in fiscal 2028, which brings me to an update on our data business. Although we did not recognize data revenue in the third quarter, we are beginning to see tangible signs of momentum in our data business. During the quarter, we closed a 6-figure data deal that we expect to recognize in Q4. We're beginning to see traction with smaller transactions, which is important in building a broader and more diversified data business customer base with the potential to lead to larger deals in the future with those customers. And we continue to progress the large data deal we originally announced in Q3 of fiscal '25 with incremental revenue expected from that deal in the fourth quarter. While I need to reiterate that this is still early, these developments are encouraging. Customer engagement remains strong, and we are spending significant time and strategic discussions with partners who recognize the value of combining deep biological annotation with clinically relevant tumor models. The opportunity here remains substantial, and we are building it deliberately and thoughtfully. Turning to Corellia, our wholly owned target discovery subsidiary. We continue to generate attractive data that is being well received by potential venture capital funding partners and licensing counterparts. The feedback we're receiving is positive, and we believe the science is compelling. As we've communicated previously, we have included the funding of Corellia in our initial fiscal 2027 budgeting assumptions. However, if we're successful in closing an external funding round, the EBITDA currently being invested in that business would be redeployed toward other growth initiatives, particularly in data and/or flow through to the bottom line. I know a common question is the expected timing of funding for Corellia. At this point, I do not have a specific estimate as to when an external financing may occur. These processes take time, particularly in the current biotech funding environment. What I can say is that the discussions are ongoing, engagement remains quite active and the underlying data being generated on an ongoing basis continues to strengthen the investment case. Stepping back, Champions today is a stronger, more diversified company than it was 2 years ago. We have a differentiated and deeply characterized tumor bank that anchors our services platform, a growing radiopharmaceutical capability that enhances our competitive positioning, a data platform that is beginning to generate commercial traction and has significant long-term potential and a therapeutic subsidiary with scientific validation and external interest, where we believe we will soon be positioned to capture some of the return for the investments we have made. These growth vectors are separate but interrelated and our objective remains to maximize shareholder value across all 3 while maintaining disciplined capital allocation. Importantly, we are demonstrating that we can invest in the future while maintaining positive adjusted EBITDA today. That combination is critical. As we move through the fourth quarter, our focus remains on execution, delivering strong service performance, advancing data opportunities, progressing Corellia discussions and finishing the fiscal year with positive adjusted EBITDA and annual growth. Looking ahead, we believe the investments we are making today in these value drivers position Champions to deliver stronger growth and expanding profitability in the years ahead. With that, I'll turn the call over to David to walk through the financial results in more detail. David Miller: Thank you, Rob, and good afternoon, everyone. Before I dive in, just a quick reminder that our full results will be filed on Form 10-Q with the SEC before March 17. And as always, I'll reference certain non-GAAP metrics with reconciliations to GAAP included in our earnings release. Total revenue for the quarter was $16.6 million compared to $17 million in the prior year period, a decrease of approximately 3%. However, the mix of revenue this quarter is important to understand. Our core study revenue reached a record $16.6 million compared to $12.6 million in the year ago period, representing growth of approximately 32%. This performance reflects strong study execution and conversion of previously booked work during the quarter. We did not recognize any data revenue from our nascent data platform this quarter compared to $4.5 million in the prior year period, which accounts for the overall year-over-year revenue decline. As we have discussed previously, data revenue will vary from quarter-to-quarter at this stage of the platform development. We anticipate it will become a more meaningful and regular contributor to our results over time. It is also worth noting that study revenue in the quarter benefited in part from strong study completion timing, which will normalize in the near term before continuing to grow as bookings expand. As a result, quarterly revenue can fluctuate as studies move through different phases of execution. Taken together, this revenue performance and continued operating discipline supported our third consecutive quarter of positive adjusted EBITDA coming in at $575,000, while our GAAP loss from operations for the quarter was approximately $275,000. Importantly, on a year-to-date basis, we remain on track to achieve full year positive adjusted EBITDA. Turning to margins. Cost of sales for the quarter was $8.8 million compared to $6.6 million in the prior year period, resulting in a gross margin of 47% compared to 61% last year. It's important to highlight that more than $2 million of cost of sales in the quarter was attributable to outsourced laboratory work primarily related to radiolabeling workflows. As we continue bringing this work in-house, we expect these costs to decline and margins to improve. At current revenue levels, had this work been performed internally, our gross margin would have been in excess of 50%. It is also worth noting that prior year margins benefited from the data license transaction recognized in that period. Operating expenses for the quarter were $7.2 million compared to $5.3 million in the prior year period. The increase reflects investments aligned with our strategic priorities. Research and development expenses increased as we invested in sequencing and related activities to support the continued development of our data platform. Sales and marketing expenses increased as we expanded both our data business development team and our commercial POS team supporting both platforms. And G&A expense increased primarily due to leadership transitions and investments in IT infrastructure. While these investments increased operating expenses in the near term, they are intended to support future revenue growth and operating leverage. Turning to cash flows. Net cash used in operating activities for the quarter was $1.4 million, primarily driven by changes in working capital, including a decrease in deferred revenue related to the timing of billings during the quarter. We ended the quarter with $7.1 million in cash and no debt, and our cash balance remains within our projected range for the quarter. Looking ahead, our focus remains on consistent execution, driving revenue growth, improving both gross and operating margins and continuing to invest in the strategic capabilities that support our long-term growth. As we are now in our fourth and final quarter of fiscal year 2026, our next earnings call will be in July. With that, we'll open the call for questions. Operator: [Operator Instructions] And there were no questions currently from the lines. I will now hand the call back to Rob Brainin for closing remarks. Robert Brainin: Yes. Thank you all for listening in today. Like we said, we're pleased with the progress we're making. Look forward to sharing with you another update in July to give you an update on that continued progress. Have a wonderful day. Operator: Thank you. This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Champions Oncology, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Champions Oncology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Champions Oncology (CSBR) Earnings Transcript was originally published by The Motley Fool