OABI

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 4:30 p.m. ET Chief Financial Officer - Kurt Gustafson President and Chief Executive Officer - Matthew Foehr Chief Operating Officer - Amechi Nwachuku Operator: Good afternoon, and welcome to OmniAb Inc.'s Second Quarter 2026 Financial Results and Business Update Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to Kurt Gustafson, OmniAb Inc.'s Chief Financial Officer. You may begin. Thank you. Kurt Gustafson: Thank you, operator, and good afternoon, everyone. Thank you all for joining our second quarter 2026 financial results conference call. There are slides to accompany today's prepared remarks, and they're available in the Investor section of our website at omniab.com. Before we begin, I'd like to remind listeners that comments made during this call by OmniAb's management will include forward-looking statements within the meaning of the federal securities laws. These forward-looking statements involve risks and uncertainties that could cause actual results to be materially different from any anticipated results. These forward-looking statements are qualified by the cautionary statements contained in today's press release and our SEC filings. Importantly, this conference call contains time-sensitive information that is accurate only as of the date of the live broadcast, today, August 6, 2026. Except as required by law, OmniAb undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call. Joining me on the call this afternoon is Matt Foehr, OmniAb's President and CEO, as well as Amechi Nwachuku, our recently appointed Chief Operating Officer. During today's call, Matt is going to cover some business highlights, and I'll review our Q2 financial results and update our full year guidance, and then we'll open the call to questions. And with that, let me turn the call over to Matt. Matthew Foehr: Thanks, Kurt. Good afternoon, everyone, and thanks for joining our second quarter call. I'll start now on Slide #4. We continue to see momentum in the business with the second quarter's strong performance led by advancements in our portfolio of partner programs. Our business here at OmniAb has been designed to benefit from long-term and durable revenue streams. We're excited to report that the programs derived from our differentiated discovery technologies continue to move into the clinic and to make progress through later-stage clinical development. This clinical progression gives visibility into the value that can be realized as our pipeline matures and as an increasing number of partnered programs reach milestones and approach potential royalty generation. Our novel technologies reinforce our position as a key enabling technology licensing partner and support both existing and new partnerships. Novel differentiated technologies and our capabilities keep us at the forefront of next-generation discovery, enabling meaningful value creation for our stakeholders and the broader industry. We're pleased to note that both of our most recently launched antibody generation technologies, which are OmniUltra and OmnidAb, are opening up new markets and important new opportunities for us. And we're seeing an increase in our chicken-derived technologies producing programs that are now in clinical trials. And for xPloration, we saw the sale of 2 instruments during the quarter as we continue to build a very strong foundation for that element of our business. We think xPloration gives us an important opportunity to broaden our reach, diversify our revenue streams, and deliver greater value for our stakeholders and for our customers. Ongoing discussions with our partners, some very recent market research, and our growing funnel of high-quality prospects evaluating the xPloration system for use in their labs gives us increasing confidence in the potential market opportunity. We're also really excited to have welcomed here Amechi to our team, who's an established and highly experienced global executive to help lead and grow the business. And lastly, we're encouraged by the continued progress across our partner programs that drove another very strong quarter for us. And so we're again raising our full year 2026 financial guidance by increasing both our revenue and our cash outlook, which we view as important indicators of the value that's embedded in our growing portfolio of partnered programs that have contracted downstream economics. Kurt will speak to our updated guidance in greater detail during his remarks. I'd also like to take a moment to highlight the continued expansion of our platform as our innovation engine advances novel technologies that we believe further differentiate and strengthen our value proposition. We have a growing ecosystem of partners. And that gives us a pulse on the work that partners are doing and that they plan to do. And it also gives us a unique vantage point on the industry's needs more broadly. We leverage that vantage point as we continue to enhance our technologies, our workflows, and our capabilities. And I want to highlight xPloration here on this slide, Slide #5. xPloration extends our business and nicely complements our novel antibody generation technologies. xPloration is our proprietary high-throughput single B cell screening platform that leverages machine learning and artificial intelligence. The platform includes a competitively priced instrument and proprietary single-use consumables, as well as annual software subscriptions and maintenance contracts. So it therefore has potential to generate multiple revenue streams to our business. We achieved an important milestone within Q2 with the sale of 2 instruments, while strong commercial interest continues to expand our sales pipeline. Early feedback highlights xPloration's rapid runtimes, ease of use, and overall robustness. With these user benefits, we strongly believe we have the right technology at the right time, as we're entering an era when our partners and the broader industry increasingly recognize the value of lab automation and high-value and high-impact instrumentation for large-scale proprietary data generation and AI and ML aided screening and selection. We continue to be very excited about what this technology can contribute to the business and look forward to sharing more with you at our upcoming Investor and Analyst Day on October 6, that I'll talk more about in a moment. I'll turn now to some of our metrics, starting on Slide #6. So at the end of the second quarter, we had 110 active partners. In Q2, new licenses included agreements with EnRosa Therapeutics and argenx. argenx is especially notable given that they're a global leader with a strong heritage of innovative R&D and are described as "leading a new era of innovation in immunology." We think our technologies are well positioned for some of the things that we think they're looking to achieve in novel drug discovery. The mix of our partners across discovery-stage companies, large pharma, and academic institutions remains really well balanced. And a majority of our partners are headquartered here in the U.S., with the remainder primarily in Europe and in Asia. We're also proud that 8 of the 10 largest pharmaceutical companies in the world continue to be active partners of OmniAb, which we believe demonstrates the quality and the strength of our partner base and further validates the value of our technology platforms. Now I'll move on to Slide #7, and you'll see here our active programs metric. We ended the quarter with 425 active programs, with an increase that reflects both the addition or new program starts and some normal attrition that occurs as partners refine their pipelines and their priorities. Importantly, about 98% of our active programs include contracted future economics to OmniAb. Across our portfolio, we have more than $3 billion in total contracted potential milestone payments on standard antibody licenses, with an average contracted royalty rate of approximately 3.4%. On the clinical front, Slide #8 here shows our partners' active clinical programs and approved products. At the end of Q2, there were 34 active clinical programs and approved products that leverage our technologies. That total reflects both new entrants into the clinic and attrition. We've had 4 new clinical entrants so far in 2026, and we continue to anticipate new clinical entrants. We've seen important clinical advancement within these active clinical programs year-to-date, and we're looking forward to further positive advancement activity later this year. And I note that we have approximately $340 million in remaining contracted potential milestone payments to OmniAb for these active clinical-stage programs. And also, as mentioned on the slide here, there are now 6 programs in Phase I or Phase II clinical trials that are derived from our novel genetically engineered chicken antibody discovery technologies, specifically OmnidAb and OmniChicken. I think it's worth noting that OmniAb is the only company in the world with a transgenic chicken platform that creates fully human antibody sequences. Traditionally, many therapeutic targets are highly conserved or similar in sequence among mammals, and that adds to the value proposition of our transgenic chickens. Part of the advantage of a chicken platform is based on the evolutionary distance of a chicken as a biological host for discovery versus other animals, specifically mammals. So this distance allows our chickens to create a robust response and a diverse set or a library, if you will, of antibodies against novel targets that a mammal or other approaches likely wouldn't. We have a number of different types of genetically engineered chickens that can create unique antibody repertoires and help discover drugs such as traditional heavy and light chain antibodies, common light chain formats, single domain antibodies, ultra-long CDRH3 domains, and dual-modality antibodies, and now even peptides. These capabilities open market opportunities and are driving partner interest. We're seeing increasing interest in our engineered chicken platforms, and now with further clinical validation, we think that can drive even more interest. Turning now to Slide #9, this graphic summarizes our clinical and commercial-stage partner pipeline for active programs that carry downstream economics to OmniAb. The placement of any program here is based on its most advanced stage in any geography or in any indication. As you can likely tell, there's been some significant movement in the later stages of development with additional programs now in Phase I, in Phase II, and in Phase III, with some bigger events having happened just in Q2. I'll call out 2 programs that jumped from Phase I directly into Phase III during Q2. Ramantamig, which is J&J's tri-specific antibody for multiple myeloma, and Merck KGaA's pracemtabart tocentecan, which is a CEACAM5 ADC for colorectal cancer. I'll also mention here the Boehringer Ingelheim BI 878 program, which is shown on the pipeline here in Phase II. So BI is pursuing a MASH indication, which is an important market and is a major health challenge. The right-hand side of this graphic is continuing to get more crowded with what some of our partners view as important potential first-in-class or best-in-class medicines. Let me turn now to Slide #10 to point out a few things that developed recently that are playing a key role in driving elements of the business. Specifically, we're pleased to highlight continued advancements in the clinical programs of our partners. I'll hop around a little bit on this slide, and I note that the Merck KGaA program that Merck announced that based on Phase I data, is now in the Phase III trial with precemtabart tocentecan, which is that potential first-in-class investigational anti-CEACAM5 antibody-drug conjugate for the treatment of metastatic colorectal cancer. They reported some very strong data, and that's also summarized here on this slide. I'll also highlight the TEV-'408 anti-IL-15 asset, which was the subject of some substantial news earlier this year with a large investment in the program by Royalty Pharma. Teva has now announced plans to begin its Phase IIb study in vitiligo in the fourth quarter, following encouraging results from its earlier clinical work. Those clinical data showed improvements in skin pigmentation in patients with active or stable vitiligo. At week 24, in evaluable participants, nearly 75% of the patients reported improvement in facial vitiligo, with half reporting much or very much improved. And as shown here on the left of this slide, Immunovant announced clinically meaningful response rates at week 16 of IMVT-1402 in its difficult to treat rheumatoid arthritis trial. Immunovant is expected to provide further updates on this program in the second half of this year, and also in the second half, Immunovant is expected to provide further updates on IMVT-1402 in lupus. Therefore, now turning to Slide #11, we look forward to some exciting updates in the second half of this year with additional expected readouts from Teva and updates from the IMVT-1402 program at Immunovant. There were also updates provided on the progress earlier this morning stating that the IMVT-1402 program remains on track across all 6 of the announced indications that are being pursued. Before turning the call back over to Kurt for a discussion of our Q2 financial results and our updated 2026 guidance, let me provide you with a little bit more detail on our upcoming Investor and Analyst Day. That'll be on October 6, and we'll be webcasting it and hosting it here at our headquarters in Emeryville. The team is preparing a productive session with an agenda that includes management presentations and will feature discussion of some of our partner programs and Q&A. And then for those that can attend in person, a demonstration of our xPloration technology and lab tours. You'll also be able to meet additional members of our team in person, including Amechi, for those that haven't met him yet, who will share more around our plans for the xPloration platform as well. We have provided an online link for additional information and participation details for the investor and analyst event in our press release. And in addition to that event, we have some technical presentations in the coming months related to our OmniUltra technology, for which we're excited to see continued strong adoption and also see some important new application possibilities. And on the lower part of this slide, we've highlighted a couple of those upcoming talks on OmniUltra. And just as background, we launched Ultra late last year, and it is the first and only transgenic chicken that produces antibodies with ultra-long CDRH3s, which is a structural feature of antibodies typically found in cows. These ultra-long CDRH3s are designed to reach binding pockets not accessible with other antibodies or modalities, potentially unveiling new therapeutic opportunities, and they can play a role in things such as building blocks for multispecifics, as binders for CAR-T and for radiopharma therapies, and as in vivo-generated peptides. So Dr. Christel Iffland, one of our scientific leaders here, will be giving a couple of talks on OmniUltra over in Europe in late October and in early November. And with that, I will turn the call back over to Kurt to discuss our financials. Kurt? Kurt Gustafson: Thanks, Matt. As Matt mentioned, this was a strong quarter driven by the advancements in our partner portfolio. On Slide 14, let me start with revenue for the quarter, which totaled $13.4 million compared with $3.9 million in the second quarter of 2025. The increase was primarily driven by higher milestone revenue reflecting the progress of our partners' programs in the clinic. We also saw an increase in xPloration sales this quarter with the sale of 2 instruments, and service revenue increased slightly due to some new ion channel agreements signed late last year and earlier this year. On Slide 15, we have our year-to-date revenue as of June 30, 2026. Total revenue grew to $27.8 million compared to $8.1 million from the corresponding 2025 period. Similar to the quarterly figures, the primary driver of revenue growth was the increase in milestone revenue. As a reminder, milestone revenue can vary significantly from quarter to quarter. Last year, milestone revenue was more heavily weighted toward the back half of the year, and this year it is more front-end loaded. Turning to Slide 16, you'll see our operating expense for the quarter. We continue to execute against our plan to run the business efficiently while investing appropriately in our technology platforms. While the numbers look flat year-over-year, I want to note that last year's figure included a 1-time net gain of about $2 million from the sale of an ion channel asset. This had the net impact of lowering operating expense last year, but from a true operating standpoint, you can see from the chart that we saw nice decreases in both R&D and G&A expense based on the realization of operational efficiencies. On Slide 17, we illustrate our year-to-date operating expenses. Starting with the other expense line, I already spoke about the gain that we had last year that had the impact of lowering operating expense, and earlier this year, we had a non-cash write-off in the first quarter. These 2 items skew the overall operating expense comparison, but once again, from a true operating perspective, if you focus on the R&D and G&A costs, you can see the efficiencies we've been able to drive in the business. Slide 18 shows our P&L for the quarter and year-to-date. I've already walked you through the revenue and OpEx numbers on the previous slides, so I'll focus on the bottom line numbers. The net loss for the second quarter of 2026 improved to $5.9 million, or $0.05 per share. And this compares with the net loss of $15.9 million, or $0.15 per share in the year-ago period. We saw a similar reduction in our net loss for the year-to-date period, with a net loss of $13.6 million, or $0.11 per share, versus a net loss of $34.1 million, or $0.32 per share in the prior period. One of the metrics that we've introduced this year is a non-GAAP measure called cash costs and operating expense. On Slide 19, we have a reconciliation of our GAAP operating expense to our cash operating expense. The cash operating expense figure removes the major non-cash items of depreciation, stock-based compensation, and the amortization of intangibles. As you can see from the table, about 35% to 40% of our operating expense is non-cash, which is why we believe this cash metric provides a better measure of our true operating expense. In general, we've been driving our cash costs down for the last couple of years. Remember that these comparisons include that onetime gain in the prior year period, which I mentioned earlier. Excluding that gain, the cash cost and operating expenses would have shown an even bigger decrease year-over-year. Turning to the balance sheet on Slide 20, we ended the quarter with a cash position of $52 million. Our cash balance grew in the second quarter based on the receipt of milestone payments. The accounts receivable balance reflects certain milestones that were achieved in the second quarter but not yet paid. We continue to believe that based on our anticipated cash flows, the company is well capitalized to execute against our strategy. Our updated 2026 financial guidance is on Slide 21, which reflects the strong second quarter performance and our view for the remainder of the year. In addition to raising guidance for revenue and our year-end cash balance, we've also narrowed the ranges for all of these metrics. We've increased the range for 2026 total revenue to $32 million to $36 million. This increase is primarily the result of increased milestone achievements that we saw in the second quarter. We are slightly tightening the range in our OpEx guidance and now expect 2026 GAAP operating expense to be in the range of $84 million to $88 million and our cash operating expense to be in the range of $51 million to $55 million. Regarding cash, with the higher expected revenue, we now anticipate ending 2026 with cash and cash equivalents in the range of $37 million to $41 million. Our effective tax rate for the full year is expected to remain at approximately 0% because of the valuation allowance we record. Moving to Slide 22, we've shown this slide the last couple of quarters, and I thought I would repeat it again this quarter to provide historical context and highlight the guidance changes we're making this quarter. As you can see, our three-year financial metrics are improving in particular, when it comes to cash use, we expect revenue to grow significantly in 2026 versus 2025, while cash operating expense is expected to remain in a tight band, driving overall cash use lower. While we are still in a period where revenue is largely driven by milestones, which can be highly variable in any given quarter, our portfolio of partner programs has continued to grow and advance. This should generally drive milestone revenue higher. And this year, we are beginning to see the benefits of our business model take hold. Our milestone base continues to expand, and we expect royalties to become a growing part of our revenue streams as partner programs advance towards potential approvals. Combined with our scalable infrastructure, we expect these factors to drive the long-term profitability of the company. And with that, I'd like to open up the call for questions. Operator? Operator: [Operator Instructions] Your first question comes from the line of Matt Hewitt with Craig-Hallum. Matthew Hewitt: Maybe to start off, congratulations on the xPloration sales. Given that you do have a few in the ecosystem at the moment, what are you seeing from a utilization standpoint? Is that starting to tick up? And as far as the sales pipeline is concerned, how is that shaping up? And will that maybe be lumpy over the near term? Or are you starting to see maybe a cadence where you could start to see more consistent sales there? Matthew Foehr: Yes, Matt, thanks. I'll offer some perspectives and then I'll invite Amechi to comment as well. Just generally, I'll say we remain very excited about the xPloration opportunity. In fact, the more we learn, the greater our conviction grows that this could really be a meaningful complement to our antibody business. And, you know, right now we're not breaking out kind of the details of the different subcomponents of revenue, but we do see xPloration contributing to our revenue growth this year and going forward. It was great to get 2 units sold in the quarter, that we now have 4 out there in the field. But still probably a little early to talk about consumables and that sort of thing. But I will -- I mean based on Amechi's experience, I'll invite him to add commentary as well. Obviously, he's deep in it with the team and interacting with our customers as well. Amechi Nwachuku: Thank you. Thank you. Based on what I've seen in the life sciences tools world and the capital equipment world, differentiated life sciences instruments like the xPloration platform, they have a real potential to create diverse and durable revenue streams, including instrument placements, ongoing consumables and reagent usage, software and service. And we're still evaluating the full commercial opportunity for xPloration and how best to capture that. And we'll aim to maybe share more of our thinking around that -- around the platform, the market opportunity, the strategic role at our upcoming Analyst and Investor Day. Matthew Hewitt: That's great. And then maybe a follow-up question. Obviously, the funding environment for pharma and biotech has gotten much better. And I'm curious whether or not you're seeing that already, or is there typically a lag? If so, when do you anticipate some of those dollars might start to flow to you? Matthew Foehr: Yes, Matt, thanks. I will comment. I think we have seen very nice growth in partners and programs net of attrition over the last couple of years. I do see the effects of that from the perspective of the types of swings that our bigger partners are taking, right? I think we have the benefit of technologies that represent, I'll say, a really substantial and durable competitive advantage. We kind of leverage our ecosystem of partners and the deep relationships we have with them to get a good understanding of not only what they're doing, but where they're going and that sort of thing. And because our technologies are highly differentiated, we do see, you know, kind of where they want to focus from a target and an indication perspective. I'll say, just speaking generally, I think the big players are taking bigger swings. They're going after bigger indications with a substantial unmet need. And we are seeing an uptick in, I'll say, smaller partners as well. I mean, we highlighted a couple of new relationships that, or new licenses that were entered into this quarter. EnRosa Therapeutics, which I'll highlight, is a preclinical-stage venture-funded biotech company that's developing selective pathogenic cytotoxic T-cell depleters using bispecific antibodies, right? Really highly experienced team, really interesting science, and a very good match with our technology. So I think that's an example of an emerging preclinical-stage player who's now well-funded and charging ahead. And then on the bigger side, obviously, we signed up argenx this quarter. Obviously, a global leader research-wise and commercially, really are leading a new era in immunology, and so excited to see them become a partner and ramping up activity as well. So hopefully that gives you color on what we're seeing. Operator: Your next question comes from the line of Brendan Smith with TD Cowen. Brendan Smith: Congrats on the progress here. Maybe just kind of a quick follow-up first on xPloration. I just want to double-check and make sure that we're thinking about the impact to margins there. Nice to see the revenues coming through. Just wondering how we should think about and what your expectations are on kind of relative impact and margins, just as that product ramps up over the coming quarters. And then, separately, I wanted to ask, in your investing in potential partner conversations too, has OmniUltra kind of been a big focus? Maybe what's just kind of been the feedback there? And how are you kind of thinking about its relative contribution, maybe to new partner deals versus some of the other offerings kind of over the next, you know, maybe 12, 18 months? Kurt Gustafson: Yes, so maybe, thanks for the questions, Brendan. Maybe I'll take the first one on margins, and then, Matt, you can comment. You know, with regards to margins, I think what we have told you is that we have what I would characterize as very good margins on the instrument and even better margins on the consumables. And so in terms of the margins, you could see some variability quarter-to-quarter, just given the mix of what comes through. You also have -- there's also some service revenue that's kind of a component of that as well. So it's sort of -- I'm not going to say that this quarter is -- or the trends that you're seeing are like a trend that you should focus on going forward because it's going to vary a little bit just based on the mix that we see in each individual quarter. But it's a nice margin, and we expect that to continue. Matthew Foehr: Yes, Brendan, and on your questions around OmniUltra, we've been really pleased that OmniUltra is absolutely opening new markets for us and new opportunities. I'll say it's a driver of substantial inbound interest as well as OmnidAb. And both of those, I think, are well suited to have kind of important impacts on the industry, OmniUltra being dual-modality, both for antibodies and peptides. So that obviously drives a lot of inbound, and we'll be obviously continuing to highlight some of our latest data and applications. OmnidAb also with important potential uses, things like brain shuttling and multi-specifics. Both of them have applicability into some of these what I'll call, you know, really high-value areas like ion channels and GPCRs and things like that. So a lot of interest in high-value targets for these. So we've been really, really pleased with the dialogue and the signing up of new programs and new partners. And we expect we'll be able to talk more about those as partners start talking about data in the future. Operator: Your next question comes from the line of Michael King with Rodman & Renshaw. Michael King: Congrats on the progress and the increased guidance. Two questions, financial questions. One is, even though with the raised revenue guidance, you guys are still facing the $20-plus million gap between your spend and the expected revenues. So I just wonder how we should think about how you're going to close that gap. Are you going to continue to try to self-fund? Are you going to have to draw funds from outside? Or do you think you're going to try to raise the value of individual contracts? Matthew Foehr: Yes, Michael, I'll comment and then Kurt can comment as well. You know, we feel very good about where we are and where the business is headed. As we mentioned our late-stage assets have $350 million of milestones associated with them. We are seeing a real nice flow of new deal interest as well and feel really good about how we're situated, how we're placed. I mean, Kurt, you may want to add in some more color, subtleties for details. Kurt Gustafson: Yes. Mike, so I mean we started the year with $54 million in cash, and if you sort of take a look at our end-of-year cash balance, and let's just take the midpoint of that range, we're burning about $15 million this year. So the cash runway just from that standpoint, looks pretty long. But it's -- if you sort of step back and take a look at where we've been in terms of what we're growing -- how we're growing from a revenue standpoint, you know, the clinical milestones are what's driving most of that revenue growth today. You know, as we look forward, we think royalties are going to kick in. But as I mentioned, that clinical base is continuing to grow and mature. And as that happens, that kicks off even more and more milestones. So we fully expect to be growing the top line, and that revenue kind of drops to the bottom line because we've talked about sort of the scalable infrastructure that we have. So we're keeping a tight lid on expenses. So you're not going to see that scale with the revenue. And so that additional revenue that comes in drops to the bottom of the line. So, you know, I think that's how we close the gap. But as Matt said, we feel really good about where we are right now. Michael King: Okay. So if I could maybe summarize, you'd say that internally you've got great visibility of the probability of success of some of these late-stage relationships like Immunovant and Teva, et cetera, that you feel like that can do the vast majority of the funding gap, fill in the funding gap. Is that a fair statement? Matthew Foehr: Well, what I'd say, Mike, too, is just look at the progression of the clinical-stage programs, the visible clinical-stage programs, right? That absolutely speaks to the conviction of our partners around the programs. That is exciting to see. We've had a nice flow of new things entering the clinic this year. We expect additional ones to be entering the clinic. So yes, we feel great about where we're situated. Michael King: Okay, fair point, I won't belabor that. But related to that, I just, when we think about the model longer term, we're just revising our model and the way we look at things. Just curious about how you feel the pace of deal flow is going to go? Do you think that this is a model that accelerates with time or stays steady over time with greater value? How should we think about the OmniAb model sort of on a 3- to 5-year horizon? Matthew Foehr: Yes, Mike, I mean, obviously you look at where we've been, right, from the perspective of driving -- first, I'll just comment with the foundation of technologies that are highly differentiated, very innovative, durable, and offer a substantial competitive advantage, right? That's what drives partners, that's what drives programs. And you just look at the last couple of years, really, which were years where the industry as a whole was facing headwinds, but we were growing net of attrition, both programs and partners, at a very nice clip. I think that speaks a lot to how differentiated our technologies are, and I think it positions us extremely well for the future. We also, you know, have continued to see the partners do their part in progressing in the clinic with new things entering the clinic. We have some really exciting later-stage programs that partners are describing as pipeline-in-a-product type programs, right? Where we have downstream milestones and royalties, right? And so as you look at the model, milestones play a key role. Obviously, those are going to continue to grow over time. But then as you start to layer in royalties, which now we're getting greater and greater visibility towards as these things progress, that really creates a lot of power in the model. And keep in mind as well that many of our royalty agreements are tiered, meaning our percent of royalty goes up as revenue gets higher, right? And so that adds a lot of power to the model as well. So, yes. Just some general comments there that ought to be helpful. Operator: [Operator Instructions] Our next question comes from the line of Stephen Willey with Stifel. Stephen Willey: I know you're not showing any of the data in this deck specifically, but was just curious if you could provide some color around how the number of post-discovery preclinical programs has evolved over the last 6 months and how you see growth in that kind of defined subgroup through the end of the year. Just trying to get a sense of how the clinical-stage portfolio could actually grow over the coming months. Matthew Foehr: Yes, Steve, thanks. Yes, we've continued to see, I'll say nice progression, nice graduation of programs, and that both in the, I'll say, discovery to preclinical stage, the preclinical to Phase I, Phase I to Phase II, Phase II to Phase III. So we've continued to see nice growth there. And we're really pleased with what we see. As we mentioned, we've had 4 new things enter the clinic this year. We expect additional entrants this year as well. And those are ones that would be progressing out of preclinical into Phase I. And there could be some range of time that things are in the preclinical phase based on the indication, based on the type of preclinical work that partners are asked to do or need to do based on their interactions with regulatory authorities. I will note, though, that, you know, earlier this year there were some changes to guidelines around the preclinical work that's necessary for certain types of antibody programs that are entering into the clinic for the first time. So we see that as a potential long-term tailwind, especially for some of our smaller partners, but that gives you a little bit of detail there. Operator: Your next question comes from the line of Puneet Souda with Leerink Partners. Your line is open. Please go ahead. Michael Almisry: You have Michael on for Puneet. I was hoping to get a bit of color on the guide. It seems like you're implying basically just low single digits per quarter in the back half. I'm curious how much of that is conservatism on your part versus any sort of one-off dynamic we should be aware of in the front half? Obviously, the milestones for sure, but what are the expectations in the back half? Kurt Gustafson: Yes, I mean, Michael, we're not going to get too granular on the revenue guidance. But, you know, in my kind of prepared remarks, I sort of did indicate this year the milestones are obviously the big driver of growth for us right now, and those milestones are -- achievements are front-end loaded for 2026. And so, you know, there's nothing kind of negative happening about the other lines in terms of xPloration and royalties and service revenue. In fact, you know, we had sort of have said service revenue we expect actually should be better in 2026 than it was in 2025. But that's probably the extent of what I can do to help you out with thinking about the back half of the year. Michael Almisry: Okay, great, thanks. And then my other question, hoping to get a little bit of color on, you know, your portfolio's exposure to like lab in the loop and applying AI for antibody drug discovery. I know you've highlighted some interest there from xPloration. We've seen other tools companies see some significant growth there. So I'm curious in what ways is OmniAb leverage that, and to what extent is that influencing the business now? Matthew Foehr: Yes, Michael, thanks. Look, we -- as those that follow us closely and know us well, we are big believers in the benefits of AI as a tailwind for the industry in a lot of different ways. And those that have followed us closely know we launched our OmniDeep brand over 3 years ago now, and OmniDeep is a suite of in silico tools, AI and ML in silico tools that are woven throughout our technology stack, right? And so, you know, really starts with high-quality input data, right, that really is proprietary data that doesn't exist anywhere, especially when you're going after novel targets, that becomes really important. And our transgenic animals really are the core element of that. And we coined the term biological intelligence years ago, but that is a real core of that, especially when you're going after novel targets. Another key element of that is the xPloration platform, right, is the ability to generate massive amounts of data in a very quick period of time. And I'll call that both hits and misses, right? So that's the benefit of the xPloration platform. So, our OmniDeep platform, obviously, we feed that into deep learning models to suggest new hits, and that can serve as training data and drive more efficiency. So we really see all of this as a potential tailwind to us and from a lot of different perspectives. I've mentioned in the past that at the most recent AACR meeting, I think it was BioCentury that reported its analysts identified over 175 previously untracked oncology targets, right? So brand-new oncology targets being disclosed for the first time now, right? That sort of thing. And you start thinking about how our animals that have been engineered with human immune systems can help guide that, that I'll say ocean of potential zones where you might want to look for a therapeutic, and then to pair that with xPloration and AI and ML tools, I think is a really powerful thing. So we're excited about where the industry's going from that perspective. We think xPloration can play a key role in generating large data sets, and really do think the pace of drug discovery generally is accelerating, and that's going to be a good thing. Operator: There are no further questions at this time. I will now turn the call back to Matt Foehr, CEO, for closing remarks. Matthew Foehr: Great. Thank you, operator. I'd like to thank everyone for joining today's call and for your questions and your engagement. I also want to thank our team here at OmniAb for their continued hard work around our innovative platforms and their focus on our customers. Our team takes a lot of pride in their work, and that's appreciated. We look forward to discussing our third quarter financial results in a few months. And in the meantime, we will be at some upcoming investor conferences, including the H.C. Wainwright Conference in New York City in the middle of September. And we're excited to host our Investor and Analyst Day here on October 1, and look forward to seeing some of you then. Thanks again and have a great day. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in OmniAb, 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 OmniAb wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and 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 $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 14, 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. OmniAb (OABI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in OmniAb, Inc.? Here are five stocks we like better. Q2 revenue rose to $13.4 million from $3.9 million year over year, driven mainly by milestone payments from advancing partner programs, while the net loss narrowed to $5.9 million from $15.9 million. OmniAb raised its 2026 revenue outlook to $32 million–$36 million and increased its projected year-end cash balance to $37 million–$41 million, reflecting stronger milestone activity. The partner portfolio continued to expand, with 110 active partners, 425 programs and 34 clinical-stage programs or approved products; the company also highlighted progress in major partner assets and xPloration instrument placements. OmniAb (NASDAQ:OABI) reported higher second-quarter revenue and a narrower net loss as milestone payments from partner programs increased, while the company raised its full-year 2026 revenue and year-end cash outlook. Revenue for the second quarter totaled $13.4 million, compared with $3.9 million in the same period of 2025. Chief Financial Officer Kurt Gustafson said the increase was primarily driven by milestone revenue tied to partner programs advancing in clinical development. The company also recorded sales of two xPloration instruments during the quarter and modest growth in service revenue from ion channel agreements. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth For the first six months of 2026, revenue reached $27.8 million, up from $8.1 million in the prior-year period. Gustafson noted that milestone revenue can vary materially between quarters and said 2026 milestone activity has been more weighted toward the first half of the year than it was in 2025. OmniAb’s second-quarter net loss improved to $5.9 million, or $0.05 per share, from a loss of $15.9 million, or $0.15 per share, a year earlier. The year-to-date net loss was $13.6 million, or $0.11 per share, compared with $34.1 million, or $0.32 per share, in the comparable 2025 period. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High The company raised its 2026 revenue outlook to a range of $32 million to $36 million, citing increased milestone achievements during the second quarter. OmniAb also narrowed its expected range for GAAP operating expenses to $84 million to $88 million and forecast cash operating expenses of $51 million to $55 million. OmniAb ended the quarter with $52 million in cash. It now expects to end 2026 with cash and cash equivalents between $37 million and $41 million, an increase from its previous outlook. The company said accounts receivable included milestones achieved in the second quarter that had not yet been paid. → Ulta's Growth Is Real, But So Are the Risks Gustafson said the company expects its revenue base to expand as its clinical-stage portfolio matures, with potential royalties becoming a larger contributor as partnered products progress toward possible approvals. He said OmniAb’s infrastructure is designed to scale without operating expenses rising proportionally with revenue. At the end of the second quarter, OmniAb had 110 active partners and 425 active programs. New licenses during the quarter included agreements with EnRosa Therapeutics and argenx. The company said eight of the world’s 10 largest pharmaceutical companies remain active OmniAb partners. Approximately 98% of active programs include contracted future economics for OmniAb, according to management. The company reported more than $3 billion in total potential contracted milestone payments associated with standard antibody licenses, along with an average contracted royalty rate of roughly 3.4%. OmniAb had 34 active clinical programs and approved products leveraging its technologies at quarter-end. Four programs entered the clinic during 2026 through the end of the second quarter, and management said it expects additional clinical entrants this year. The active clinical-stage programs have approximately $340 million in remaining potential contracted milestone payments. Chief Executive Officer Matt Foehr highlighted two partner assets that advanced from Phase 1 directly to Phase 3 during the quarter: Johnson & Johnson’s ramantamig, a trispecific antibody for multiple myeloma, and Merck KGaA’s precemtabart tocentecan, an investigational anti-CEACAM5 antibody-drug conjugate for metastatic colorectal cancer. Foehr also cited Teva’s plans to begin a Phase 2b vitiligo study of TEV-’408 in the fourth quarter, following earlier clinical results. In addition, Immunovant reported clinically meaningful response rates at week 16 for IMVT-1402 in rheumatoid arthritis, with further updates in rheumatoid arthritis and lupus expected in the second half of 2026, according to OmniAb. The company said six programs derived from its genetically engineered chicken antibody-discovery technologies, including OmnidAb and OmniChicken, are now in Phase 1 or Phase 2 trials. Foehr said the chicken platforms may be particularly useful for targets that are highly conserved among mammals, as chickens can generate antibody responses against targets that may be more challenging for mammalian discovery systems. OmniAb also continues to expand its xPloration business, its high-throughput single B-cell screening platform that incorporates machine learning and artificial intelligence. The platform includes instruments, single-use consumables, software subscriptions and maintenance contracts. Two instrument placements in the second quarter brought the total number of systems in the field to four, management said. Foehr said early customer feedback has emphasized the platform’s runtime, ease of use and robustness. Chief Operating Officer Amechi Nwachuku said differentiated life-sciences instruments can support recurring revenue through consumables, reagents, software and service, although OmniAb is still evaluating the full commercial opportunity for xPloration. Management plans to provide additional detail on xPloration and its market opportunity at an Investor and Analyst Day scheduled for Oct. 6 at the company’s Emeryville headquarters. The event will also be webcast. OmniAb, Inc (NASDAQ: OABI) operates as a biotechnology company specializing in the discovery and development of therapeutic antibodies. The company’s integrated antibody discovery platform combines proprietary transgenic animal models, in vitro screening, and in silico engineering to accelerate lead identification and optimization. OmniAb offers both fee-for-service collaborations and license agreements, enabling biopharmaceutical partners to leverage its suite of technologies for programs spanning oncology, immunology, and other therapeutic areas. Founded in 2016 and headquartered in Seattle, Washington, OmniAb went public in May 2021. 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 "OmniAb Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. OmniAb Inc (NASDAQ:OABI) reported a strong second quarter with total revenue of $13.4 million, a significant increase from $3.9 million in the same period last year, driven by higher milestone revenue. The company's partner portfolio has advanced significantly, with two programs (rimantomib and persentabartosentican) jumping from Phase 1 directly into Phase 3 during Q2, highlighting the potential of its technology. OmniAb Inc (NASDAQ:OABI) is the only company in the world with a transgenic chicken platform that creates fully human antibody sequences, providing a unique competitive advantage for targeting conserved or difficult-to-drug targets. The company is seeing increasing partner interest and signed new agreements with Argenx and Rosa Therapeutics, indicating strong demand for its OmniChicken and OmniDab platforms. OmniAb Inc (NASDAQ:OABI) improved its net loss to $5.9 million in Q2 2026, compared to a net loss of $15.9 million in the year-ago period, and raised its full-year 2026 revenue guidance to $32 million-$36 million. The company's cash position grew to $52 million in Q2, and it expects to end 2026 with $37 million-$41 million in cash, reflecting improved financial management and operational efficiencies. OmniAb Inc (NASDAQ:OABI) is seeing strong adoption of its Omni Ultra technology, which opens new markets for ultra-long CDRH3 antibodies and peptides, driving inbound interest and potential new applications. The company's exploration platform is gaining traction with the sale of two instruments in Q2, and management believes it can become a meaningful complement to the antibody business with durable revenue streams. OmniAb Inc (NASDAQ:OABI) is well-positioned to benefit from AI and machine learning trends, leveraging its OmniDeep suite and exploration platform to generate proprietary data for novel target discovery. OmniAb Inc (NASDAQ:OABI)'s revenue is heavily dependent on milestone payments, which can vary significantly from quarter to quarter, making financial results lumpy and less predictable. The company still faces a significant gap between its operating expenses and revenue, with expected 2026 GAAP operating expenses of $84 million-$88 million versus revenue of $32 million-$36 million. OmniAb Inc (NASDAQ:OABI) continues to operate at a net loss, with a year-to-date net loss of $13.6 million, and relies on future milestones and royalties to close the funding gap. The exploration platform's revenue contribution is still early-stage, with only four instruments in the field, and management notes it is too early to discuss consumables or consistent sales cadence. The company's cash runway, while improved, is still limited, and it may need to seek external funding if milestone payments or partner progress do not materialize as expected. OmniAb Inc (NASDAQ:OABI) faces potential delays in partner programs, as seen with the need for additional preclinical work for certain antibody programs, which could slow the progression of its pipeline. The company's revenue guidance for the back half of 2026 implies lower quarterly revenue, reflecting the front-end loading of milestone achievements and potential conservatism in guidance. OmniAb Inc (NASDAQ:OABI) is still in a period where royalties are not yet a significant revenue stream, and the transition to royalty-based income depends on partner programs advancing to potential approvals. Warning! GuruFocus has detected 3 Warning Signs with OABI. Is OABI fairly valued? Test your thesis with our free DCF calculator. Q: Given the strong quarter and the raised guidance, how should we think about closing the gap between current spend and expected revenues? Will you continue to self-fund, or will you need to draw funds from outside?A: Matt Foehr (CEO) and Kurt (CFO) expressed strong confidence in the company's position, highlighting $340 million in potential milestones tied to late-stage assets and a robust flow of new deal interest. Kurt detailed that the company started the year with $54 million in cash and expects to burn only about $15 million in 2026, providing a long runway. He emphasized that as the clinical milestone base grows and matures, it will generate more milestones, and with a scalable infrastructure keeping expenses tight, additional revenue will drop to the bottom line, naturally closing the gap over time. Q: Can you provide color on how the number of post-discovery preclinical programs has evolved over the last six months and how you see that group growing through the end of the year?A: Matt Foehr (CEO) noted continued "nice progression" and "graduation" of programs across all stages, from discovery to preclinical and into the clinic. He confirmed that four new programs entered the clinic this year, with more expected before year-end. He also mentioned that recent regulatory guidance changes around preclinical work for certain antibody programs could serve as a long-term tailwind, particularly for smaller partners, potentially accelerating the path to clinical entry. Q: Regarding the Exploration platform, what are you seeing from a utilization standpoint, and how is the sales pipeline shaping up? Will sales remain lumpy, or are you starting to see a more consistent cadence?A: Matt Foehr (CEO) stated the team remains "very excited" about the Exploration opportunity, with growing conviction that it will be a meaningful complement to the antibody business. He confirmed two units were sold in Q2, bringing the total to four in the field, but noted it's still early to discuss consumables trends. Amechi (President) added that differentiated life sciences instruments like the Exploration Platform have the potential to create diverse and durable revenue streams, including instruments, consumables, software, and service, with more details to be shared at the upcoming Investor Day. Q: With the improved funding environment for pharma and biotech, are you seeing that benefit already, or is there a lag? When might those dollars start to flow to you?A: Matt Foehr (CEO) observed "very nice growth in partners and programs net of attrition" over the last couple of years. He noted that larger partners are taking "bigger swings" at major indications with substantial unmet need, and there's an uptick in smaller, well-funded partners as well. He highlighted new licenses with Rosa Therapeutics and Argenix as examples of both emerging and global-leading partners ramping up activity, indicating the improved funding environment is already translating into new business. Q: How should we think about the relative impact of Exploration sales on margins as that product ramps up?A: Kurt (CFO) explained that the company has "very good margins on the instrument and even better margins on the consumables." He cautioned that quarterly margins could vary based on the mix of instrument, consumable, and service revenue, but emphasized that the overall margin profile is expected to remain strong and continue. Q: Has Omni Ultra been a big focus in partner conversations? What has the feedback been, and how do you see its contribution to new deals over the next 12-18 months?A: Matt Foehr (CEO) stated that Omni Ultra is "absolutely opening new markets" and driving substantial inbound interest, alongside OmniAb. He highlighted its dual modality for antibodies and peptides, and its applicability in high-value areas like ion channels and GPCRs, as well as for brain shuttling and multi-specifics. He expressed pleasure with the dialogue and the signing of new programs, expecting to share more as partners begin discussing data. Q: The raised guidance implies lower revenue in the back half of the year. How much of that is conservatism versus one-off dynamics in the front half?A: Kurt (CFO) clarified that milestone achievements are "front end loaded for 2026," which is the primary driver of the revenue pattern. He emphasized there is nothing negative happening in other revenue lines; in fact, service revenue is expected to be better in 2026 than in 2025. He declined to provide more granular guidance but indicated the back-half expectations are based on the current visibility of milestone timing. Q: Can you provide color on your portfolio's exposure to lab-in-the-loop and AI for antibody drug discovery? How is OmniAb leveraging that, and to what extent is it influencing the business now?A: Matt Foehr (CEO) reiterated the company's strong belief in AI as a tailwind, referencing the OmniDeep brand launched over three years ago. He explained that AI/ML tools are woven throughout the technology stack, starting with proprietary, high-quality input data from transgenic animalstermed "biological intelligence." The Exploration platform generates massive datasets of hits and misses that feed deep learning models to suggest new hits, driving efficiency. He sees this as a powerful combination for navigating the growing number of novel targets, accelerating drug discovery. Q: How do you feel about the pace of deal flow going forward? Is this a model that accelerates with time, or stays steady with greater value? How should we think about the OmniAb model on a 3-5 year horizon?A: Matt Foehr (CEO) pointed to the company's track record of growing programs and partners net of attrition even during industry headwinds, which speaks to the differentiation of its technologies. He highlighted that partners are progressing programs into the clinic, with some late-stage programs described as "pipeline in a product." He emphasized that while milestones will continue to grow, the layering in of royaltiesmany of which are tieredwill add significant power to the model over the long term. Q: Congratulations on the Exploration sales. Given the few in the ecosystem, what are you seeing from a utilization standpoint?A: Matt Foehr (CEO) reiterated excitement about the Exploration opportunity, noting it's contributing to revenue growth. While it's still early to discuss consumables, he confirmed two units were sold in the quarter, bringing the total to four in the field. Amechi (President) added that the platform has the potential to create diverse, durable revenue streams, and the company will share For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Raises Full Year 2026 Revenue and Cash Outlook Driven by Continued Business Momentum Conference Call to Begin Today at 4:30 p.m. ET EMERYVILLE, Calif., August 06, 2026--(BUSINESS WIRE)--OmniAb, Inc. (NASDAQ: OABI), a provider of cutting-edge discovery research technology to enable the discovery of next-generation therapeutics, today reported financial results for the three and six months ended June 30, 2026, provided operating and partner program progress, and updated 2026 financial guidance. "We are pleased to report a strong quarter and to increase our revenue and cash outlook for 2026 based on continued momentum in our business. Recent updates from partner programs have been very encouraging with important advancements in clinical development," stated Matt Foehr, Chief Executive Officer of OmniAb. "We continue to efficiently leverage and expand the reach of our core and highly differentiated discovery technologies, as we also focus on our promising xPloration® platform. We recently expanded our executive leadership with the addition of Chief Operating Officer Amechi Nwachuku, who has quickly integrated into our team to drive and strengthen this area. We believe we’re well positioned to accelerate growth, and we look forward to providing business updates and technology highlights and plans at our October Investor and Analyst Day." Second Quarter 2026 Financial Results Revenue for the second quarter of 2026 was $13.4 million, compared with $3.9 million in the prior-year period, with the increase driven primarily by milestone revenue. Service revenue increased primarily due to the commencement of new ion channel programs, and xPloration revenue increased on higher instrument sales and related consumables. Cost of xPloration revenue was $0.6 million for the second quarter of 2026, compared with $0.3 million for the same period in 2025. The increase was due to increased instrument and consumable sales. Research and development expense was $9.6 million for the second quarter of 2026, compared with $10.9 million for the same period in 2025, with the decrease due to lower personnel expense related to share-based compensation and salary expense and lower facility-related costs. General and administrative expense was $6.7 million for the second quarter of 2026, compared with $7.7 million for the same period in 2025, with the decrease primarily due to lower personnel expense related to share-based compensation and salary expense and lower professional fees. Amortization of intangibles decreased to $3.1 million for the second quarter of 2026, compared with $3.2 million for the same period in 2025. Other operating expense (income) increased to $0.2 million for the second quarter of 2026 from ($1.9) million for the same period in 2025, primarily as a result of a net $2.0 million one-time gain from the sale of a small-molecule program in the second quarter of 2025. Total costs and operating expenses were $20.1 million for the second quarter of 2026, flat with $20.1 million for the same period in 2025. Cash costs and operating expenses were $13.3 million for the second quarter of 2026, compared with $11.9 million for the same period in 2025 (see note regarding "Use of Non-GAAP Financial Measure" below for further discussion of this non-GAAP measure). Net loss for the second quarter of 2026 was $5.9 million, or $0.05 per share, compared with a net loss of $15.9 million, or $0.15 per share, for the same period in 2025. Year-to-Date Financial Results Revenue for the first half of 2026 was $27.8 million, compared with $8.1 million for the same period in 2025, with the increase primarily related to milestone revenue. Service revenue increased primarily due to the commencement of new ion channel programs, and xPloration revenue increased on higher instrument sales and related consumables. Cost of xPloration revenue was $0.6 million for the first half of 2026, compared with $0.3 million for the same period in 2025. The increase was due to increased instrument and consumable sales. Research and development expense was $19.2 million for the first half of 2026, compared with $23.5 million for the same period in 2025, with the decrease due to lower personnel expense related to share-based compensation and salary expense, lower external expenses associated with legacy small-molecule ion channel programs and lower facility-related costs. General and administrative expense was $13.3 million for the first half of 2026, compared with $15.6 million for the same period in 2025, with the decrease primarily due to lower personnel expense related to share-based compensation and salary expense and lower professional fees. Amortization of intangibles increased to $9.1 million for the first half of 2026, compared with $6.5 million for the same period in 2025, primarily due to a $2.9 million non-cash impairment related to the discontinuation of certain legacy small-molecule ion channel programs recorded in the first quarter of 2026. Other operating expense (income) for the first half of 2026 was $0.1 million compared to ($2.7) million for the same period in 2025. The prior-year period included a net $2.0 million one-time gain from the sale of a small-molecule program in the second quarter of 2025. Total costs and operating expenses were $42.3 million for the first half of 2026, compared with $43.1 million for the same period in 2025. Cash costs and operating expenses were $25.5 million for the first half of 2026, compared with $26.6 million for the same period in 2025 (see note regarding "Use of Non-GAAP Financial Measure" below for further discussion of this non-GAAP measure). Net loss for the first half of 2026 was $13.6 million, or $0.11 per share, compared with a net loss of $34.1 million, or $0.32 per share, for the same period in 2025. As of June 30, 2026, OmniAb had cash, cash equivalents and short-term investments of $52.0 million. 2026 Financial Guidance OmniAb revises 2026 financial guidance and now expects revenue to be in the range of $32 million to $36 million, versus $28 million to $33 million previously, and costs and operating expenses to be in the range of $84 million to $88 million, versus $83 million to $88 million previously. Cash costs and operating expenses are expected to be in the range of $51 million to $55 million, versus $50 million to $55 million previously (see note regarding "Use of Non-GAAP Financial Measure" below for further discussion of this non-GAAP measure). The Company now expects to end the year with cash and cash equivalents in the range of $37 million to $41 million, versus $33 million to $38 million previously. The full-year 2026 effective tax rate is expected to be approximately 0%. Second Quarter 2026 and Recent Business Highlights During the second quarter of 2026, OmniAb entered into new license agreements with EnRosa Therapeutics and argenx. As of June 30, 2026, the Company had 110 active partners and 425 active programs, including 34 OmniAb-derived programs in clinical development or being commercialized. Business and partner highlights from the second quarter of 2026 and recent weeks included the following: JNJ-5322 Ramantamig (JNJ-79635322), a tri-specific antibody targeting (BCMA x GPRC5D x CD3), has advanced to Phase 3 from Phase 1 clinical trials. The Phase 3 study is randomized study comparing JNJ-79635322 and an anti-BCMAxCD3 bispecific antibody in participants with relapsed or refractory multiple myeloma who have received at least three prior lines of therapy including a PI, an IMiD, and an anti CD38 antibody. Precemtabart tocentecan (M9140) Merck KGaA, announced the first patient has been dosed in the Phase 3 PROCEADE®-CRC-03 trial evaluating precemtabart tocentecan, a potential first‑in‑class investigational anti‑CEACAM5 antibody‑drug conjugate (ADC), for the treatment of metastatic colorectal cancer based on Phase 1 data. The Phase 3 study will assess the efficacy and safety of precemtabart tocentecan, alone or with bevacizumab, in patients with metastatic colorectal cancer who are intolerant- or refractory-to, or progressed after, systemic therapies. Phase 1 data from the PROCEADE-CRC-01 study showed predictable and manageable safety in more than 100 patients with heavily pretreated metastatic colorectal cancer. At the recommended dose for Phase 3 development (2.8 mg/kg Q3W; n=29), confirmed objective response rate was 20.7% (95% CI: 8.0, 39.7), median PFS was 6.9 months (95% CI: 4.4, 9.5), and median OS was not reached after a median follow-up of 13.1 months (95% CI: 8.7, NE). TEV- '408 Teva Pharmaceuticals announced plans for its TEV-’408, an investigational anti-interleukin-15 monoclonal antibody, to advance into a Phase 2b study in vitiligo in the fourth quarter of 2026 following encouraging results from an ongoing Phase 1b, open-label study in adults with active or stable non-segmental vitiligo (NSV). Topline results in Phase 1b trial evaluating TEV-'408 for vitiligo showed improvements in skin pigmentation in patients with active or stable NSV. TEV-’408 was well-tolerated with no safety signals observed. At baseline, 66% of enrolled participants had vitiligo affecting more than 10% of body surface area, representing a population with limited treatment options. At week 24, in evaluable participants, nearly 75% of patients reported improvement in facial vitiligo, with half reporting "much" or "very much" improved, 42% achieved F-VASI50 and 21% achieved F-VASI75, 55% of patients reported improvement in total body vitiligo, and 7% achieved T-VASI50. Teva Pharmaceuticals and Royalty Pharma entered into a funding agreement of up to $500 million to accelerate the clinical development of TEV-'408 for vitiligo. Topline results of the Phase 2a trial evaluating TEV-'408 for celiac disease continue to be expected in the second half of 2026. IMVT-1402 Immunovant announced preliminary week 16 IMVT-1402 results in the difficult-to-treat rheumatoid arthritis trial that showed clinically meaningful response rates of 72.7% ACR20, 54.5% ACR50 and 35.8% ACR70. Immunovant’s development plans for IMVT-1402 remain on track across all six announced indications. They expect to provide further updates on the potentially registrational IMVT-1402 difficult-to-treat rheumatoid arthritis program and report topline data from the proof-of-concept trial of IMVT-1402 in cutaneous lupus erythematosus in the second half of calendar year 2026. In calendar year 2027, topline data are anticipated for the potentially registrational trials evaluating IMVT-1402 in Graves’ disease and myasthenia gravis. Topline data are expected to follow in calendar year 2028 for the potentially registrational trials of IMVT-1402 in chronic inflammatory demyelinating polyneuropathy and Sjögren’s disease. BI 3802876 Boehringer Ingelheim has commenced its Phase 2a double-blind, placebo-controlled study evaluating the safety, tolerability, pharmacokinetics and pharmacodynamics of BI 3802876 in participants with compensated cirrhosis due to metabolic dysfunction-associated steatohepatitis (MASH). The study is to evaluate BI 3802876 tolerance and dose response in MASH patients. Sugemalimab Arrotex Pharmaceuticals entered into an exclusive commercialization agreement with CStone Pharmaceuticals for Sugemalimab, a fully human anti–PD-L1 monoclonal antibody, covering all approved and future indications in Australia and New Zealand. The agreement includes potential commercialization across stage III and IV non-small cell lung cancer, gastric cancer, esophageal squamous cell carcinoma, and extranodal NK/T-cell lymphoma, subject to regulatory approval by Australia's Therapeutic Goods Administration. VXA-222 VERAXA Biotech announced the advancement of bispecific ADC (bsADC) program VXA-222, following successful achievement of a key technical milestone in its alliance with OmniAb. The program is moving into its next collaboration phase with OmniAb's discovery work successfully concluded. VXA-222 utilizes an "AND-gate" logic to address two different target antigens present on solid tumors with one molecule. Additional Updates The company appointed Amechi Nwachuku to the newly-created position of Executive Vice President and Chief Operating Officer, primarily responsible for managing the strategy, operations and commercial maximization of xPloration. OmniAb will host an Investor and Analyst Day on October 6, 2026 at its corporate headquarters in Emeryville, CA. The agenda for the day will include presentations by management, panel discussions, and a lab tour for those attending in-person. For additional information and participation details, please visit. Conference Call and Webcast OmniAb management will host a conference call with accompanying slides today beginning at 4:30 p.m. ET (1:30 p.m. PT) to discuss this announcement and answer questions. To participate via telephone, please dial (833) 461-5787 using the conference ID 545137839. Slides, as well as the live and replay webcast, are available here. About OmniAb® OmniAb licenses cutting-edge discovery research technology to pharmaceutical and biotech companies and academic institutions to enable the discovery of next-generation therapeutics. Our technology platform creates and screens diverse antibody repertoires and is designed to quickly identify optimal antibodies and other target-binding proteins for our partners’ drug development efforts. At the heart of the OmniAb platform is what we call Biological Intelligence™, which powers the immune systems of our proprietary, engineered transgenic animals to create optimized antibody candidates for human therapeutics. We believe the OmniAb animals comprise the most diverse host systems available in the industry. These technologies paired with xPloration, our AI-powered high-throughput single B-cell screening platform, are used to identify fully-human antibodies with exceptional performance and developability characteristics. We provide our partners both integrated end-to-end capabilities and highly customizable offerings, which address critical industry challenges and provide optimized discovery solutions. Our business model aligns scientific and economic interests of our partners through structured agreements that generally include upfront/access fees, service revenue, milestones and royalties on commercial sales. For more information, please visit www.omniab.com. Forward-Looking Statements OmniAb cautions you that statements contained in this press release regarding matters that are not historical facts are forward-looking statements. Words such as "may," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "project," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" and similar expressions, are intended to identify forward-looking statements. The forward-looking statements are based on our current beliefs and expectations and include, but are not limited to: statements regarding the value of our portfolio and growth prospects of our business; the ability to add new partners and programs; the ability to efficiently leverage and expand the reach of our technologies; continuation of our innovation efforts and the expected value and performance of our technologies and the opportunities they may create, potential contributions to our business by our xPloration partner access program; scientific presentations and clinical and regulatory events of our partners and the timing thereof and their perspectives on and expectations for their product candidates; and our 2026 financial guidance. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in our business, including, without limitation: our future operating results and success is dependent on acceptance of our technology platform and technologies by new and existing partners, as well as on the eventual development, approval and commercialization of products developed by our partners for which we have no control over the development plan, regulatory strategy or commercialization efforts; biopharmaceutical development is inherently uncertain; risks arising from changes in technology; the competitive environment in the life sciences and biotechnology platform market; risks associated with quality and timing in manufacturing our xPloration instruments and related consumables and our reliance on a limited number of third-party manufacturers and suppliers; our failure to maintain, protect and defend our intellectual property rights; difficulties with performance of third parties we will rely on for our business; government healthcare reform, legislative measures and regulatory developments in the United States and foreign countries; unstable market and economic conditions may have serious adverse consequences on our business, financial condition and stock price; the potential impact of tariffs, trade policies, geopolitical instability and conflicts, inflation and interest rate changes; we may not achieve our financial guidance; our operating expenses may be higher than we anticipate, including if we decide to engage in activities not currently in our plan or if we face unexpected, or higher than anticipated, expenses; we may use our capital resources sooner than we expect; and other risks described in our prior press releases and filings with the SEC, including under the heading "Risk Factors" in our annual report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and we undertake no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Partner Information The information in this press release regarding partnered products and programs comes from information publicly released by our partners. Note Regarding Use of Non-GAAP Financial Measure This press release includes financial results prepared in accordance with accounting principles generally accepted in the United States (GAAP), and also actual and projected cash costs and operating expenses, which is a non-GAAP financial measure, adjusted to exclude share-based compensation, depreciation and amortization of intangibles. Non-GAAP financial measures are not an alternative for financial measures prepared in accordance with GAAP. However, OmniAb believes the presentation of actual and projected non-GAAP cash costs and operating expenses, when viewed in conjunction with GAAP figures, provides investors with a more meaningful understanding of our operating performance. Cash costs and operating expense is not intended to be considered in isolation or as a substitute for costs and operating expenses. A reconciliation between actual and projected GAAP costs and operating expenses and non-GAAP costs and operating expenses is provided later in this press release. OMNIAB, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except share and per share data) OMNIAB, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)(in thousands, except per share data) OMNIAB, INC.RECONCILIATION OF GAAP COSTS AND OPERATING EXPENSES TO NON-GAAP CASH COSTS AND OPERATING EXPENSES View source version on businesswire.com: https://www.businesswire.com/news/home/20260806690841/en/ Contacts OmniAb, [email protected] X@OmniAbTechAlliance Advisors IRVivian [email protected] (973) 873-7724

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. Performance in Q1 was primarily driven by the advancement of partner programs into later-stage clinical development, which management views as the primary driver of visible stakeholder value. The company is leveraging its 'evolutionary distance' advantage with transgenic chicken platforms to address novel therapeutic targets that are often highly conserved and difficult to reach in mammalian hosts. Management attributes the growing partner base, including 8 of the top 10 global pharma companies, to the platform's ability to generate robust data for AI and machine learning-enabled screening. The xPloration platform is being positioned as a strategic entry into lab automation, aiming to diversify revenue through instrument sales and recurring consumable streams. Strategic positioning is focused on 'stacking' royalties from differentiated products, with management emphasizing that 98% of active programs now include contracted future economics. Operational efficiency initiatives led to a decrease in cash operating expenses, though GAAP figures were impacted by a non-cash write-off of legacy small molecule assets. Full-year 2026 revenue guidance was raised to $28 million–$33 million, primarily due to a partner achieving a milestone that was not included in the original internal projections. Management anticipates multiple new clinical entrants throughout 2026, supported by approximately $350 million in remaining potential contracted milestones for current clinical-stage programs. The company expects royalty revenue to accelerate and eventually become the dominant revenue contributor as the portfolio matures beyond the next few years. Guidance for year-end cash was increased to $33 million–$38 million, reflecting higher expected revenue while maintaining a disciplined cash operating expense range of $50 million–$55 million. The launch of OmniUltra is expected to open new markets in peptides and multispecifics, with management targeting over 130 companies previously outside their traditional call file. A $2.9 million non-cash impairment charge was recorded in Q1 related to the write-off of legacy small molecule ion channel intangible assets. Management noted that while partner additions were steady, they were offset by attrition, which is characterized as a standard and expected part of the business model as partners refine portfolios. The company maintains a valuation allowance resulting in an effective tax rate of approximately 0% for the full year. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated the update had no impact on planning or guidance as they had already anticipated a pivot toward the IMVT-1402 program. IMVT-1402 is being prioritized by the partner across multiple indications including Graves disease, rheumatoid arthritis, and lupus. Management clarified that milestones are generally linked to clinical and regulatory events (like Phase starts) rather than specific data disclosures. While data readouts themselves may not trigger payments, they serve as critical catalysts for the visibility and advancement of the underlying assets. Academic deals are structured as revenue-sharing models designed to facilitate company formation and asset monetization. OmniAb participates in the upside through sublicense fees or equity stakes in new entities spun out from university research. Management views AI as a significant tailwind that accelerates target identification, creating more opportunities for OmniAb's biological discovery tools. The platform is described as a way to 'navigate the ocean' of novel biology to generate the high-quality data required for partner AI/ML models.

Image source: The Motley Fool. Thursday, May 7, 2026 at 4:30 p.m. ET Chief Executive Officer — Matthew Foehr Chief Financial Officer — Kurt Gustafson Need a quote from a Motley Fool analyst? Email [email protected] Matthew Foehr: Thanks, Kurt. Good afternoon, everyone, and thanks for joining our first quarter call. I'll start now on Slide #4. OmniAb delivered a very strong start to the year, largely driven by advancement of our partner programs. We continue to see programs derived from our technologies move into the clinic and into later-stage development. And in many cases and in many respects, that's really where our business model translates into clear and more visible value for our stakeholders. The progression of these programs gives us a growing line of sight into potential for future milestones and new royalties as our partners' programs advance. Our business is designed to benefit from durable revenue streams and royalties from differentiated pharmaceutical products are extremely valuable in our view. In addition, our innovations and our technologies are designed to differentiate OmniAb as a licensing partner and more broadly as a business. and are keeping us at the forefront of next-generation discovery tech. We believe our novel technologies and our workflows are increasingly positioned to attract partners, while also supporting current relationships, having potentially important impacts both on our business and on our industry. Both our OmniUltra and our OmnidAb technologies are opening new markets and opportunities and the traction we're seeing is encouraging. And we believe that our innovation, which is informed by deep relationships with partners is a key competitive advantage. During Q1, we also continued to build a strong foundation for xPloration, which we view as a tremendous opportunity to expand our reach and diversify our sources of revenue. The xPloration sales funnel continues to grow with a lot of high-quality prospects evaluating the system for use in their labs. And with a very strong start to the year, we've revised our full year financial guidance and increased our revenue outlook, which we view as an important early indicator of the value that's embedded in our partner pipeline. Kurt will speak to our updated guidance in greater detail in his remarks. Turning now to Slide #5. I'd like to take a moment to highlight some of our novel technology launches, which we believe position us for growth. OmniAb is the only company in the world with a transgenic chicken platform that creates fully human antibody sequences. Part of the advantage of a chicken platform is based on the evolutionary distance of the chicken as a biological host for discovery versus other animals, specifically mammals. This distance allows our chickens to create a robust response and a diverse set of antibodies against novel targets that a mammal likely wouldn't. Members of our business development team recently attended the AACR meeting down in San Diego. And at the conference, there were reports and one specifically from BioCentury that about 170 new therapeutic targets for cancer were disclosed at the meeting, many of which had not appeared before in cancer-focused R&D programs. And new targets are generally where biology is not fully understood and technology platforms such as ours can really help understand and advance novel drug discovery. Traditionally, many therapeutic targets are highly conserved among mammals and that also adds to the value proposition of our transgenic chicken platforms. We have a number of different types of highly engineered chickens that can create unique antibody repertoires and help discover drugs such as traditional heavy and light chain antibodies, common light chain formats, single-domain antibodies, ultra-long CDRH3 domains and dual modality antibodies and even peptides. These technologies are designed to open new market opportunities and drive partner interest. Our most recently launched OmniUltra shown at the top right-hand corner of this slide is the first and only transgenic chicken that produces antibodies with ultra-long CDRH3s, which is a structural feature of antibodies typically found in cows. These ultra-long CDRH3s are designed to reach binding pockets not accessible with other antibodies or modalities, potentially unveiling new therapeutic opportunities and can also play a role in such things as being building blocks for multispecifics as binders for CAR-T and for radiopharma therapies and as in vivo generated peptides. We just launched the new OmniUltratech in December, and our scientists will be presenting on OmniUltra next week at the PEGS, Protein Engineering Meeting in Boston as well as at the TIDES peptide meeting that is also taking place in Boston next week. Prior to OmniUltra, the most recent novel chicken-based technology we launched was our single domain technology known as OmnidAb, which was launched just a couple of years back. As of Q1, there are now 2 OmnidAb-derived partner programs in human clinical trials. Both got to the clinic very quickly, and one is now already in Phase II trials. I'll touch on this a little more in a few slides when I review our clinical pipeline. xPloration is summarized here on Slide #6. xPloration is our proprietary innovative high-throughput single B-cell screening platform that leverages machine learning and artificial intelligence. The xPloration platform includes a competitively priced instrument and proprietary single-use consumables. As such, it has the potential to generate multiple revenue streams to our business. We're seeing continued strong interest in exploration and in demand for demos given its rapid run times, its ease of use and overall robustness. With these user benefits, we believe we have the right technology at the right time as we're entering an era when our partners and the broader industry increasingly recognize the value of lab automation and high-value and high-impact instrumentation for large-scale data generation and AI and ML-enabled screening and selection. We're in the early days of xPloration, but we're very excited about what this technology can contribute to the business. I'll now turn to some of our metrics starting on Slide #7. At the end of Q1, we had 107 active partners, consistent with year-end 2025. In the first quarter, new licenses included an agreement with Florida State University as we continue to see growing opportunities in academia with agreements that have been prewired with financial terms that allow us to share in the economics of assets generated from our technology. This quarter, our partner adds were offset by attrition, which is an expected part of the business. The mix of partners across discovery stage companies, large pharma and academic institutions remains very well balanced. A majority of our partners are headquartered here in the United States with the remainder primarily in Europe and in Asia. We're also proud that 8 of the 10 largest pharmaceutical companies in the world are active partners of OmniAb. This demonstrates the quality and the strength of our partner base and further validates our technology platforms. And I think it's kind of important to note that these are companies that spend billions of dollars on clinical work and research and development. So they're deploying substantial amounts of capital to discover impactful medicines that serve global markets, and they leverage OmniAb's technologies as part of their discovery efforts. Management here and our team take pride in that, and so we feel it's important to note. Now I'll move on to Slide #8, and you'll see here our active programs metric. We ended the quarter with 409 active programs with a net increase that reflects both the addition of new programs and new program starts and the normal attrition that occurs as partners refine their pipelines and portfolio priorities. Importantly, about 98% of our active programs include contracted future economics to OmniAb. Across our portfolio, we have more than $3 billion in total contracted milestones on standard antibody licenses with an average contracted royalty rate of approximately 3.4%. On the clinical front, Slide 9 shows our partners' active clinical programs and approved products. At the end of Q1, there were 32 active clinical programs and approved products that leverage our technologies. That total reflects both new entrants into the clinic and attrition. And I want to note that the numbers we consistently report to investors are all net of attrition. As I mentioned briefly, during the quarter, a second OmnidAb-derived program progressed into Phase I human testing, reinforcing the momentum we're seeing from our newer technologies, and we continue to anticipate multiple new clinical entrants in 2026. We've seen important clinical advancement within these active clinical programs year-to-date and look forward to further positive advancement activity this year. And I note that we have approximately $350 million in remaining potential contracted milestones to OmniAb for these clinical stage programs. Turning now to Slide #10. This graphic summarizes our clinical and commercial stage partner pipeline for active programs that carry downstream economics to OmniAb. The placement of each program here is based on its most advanced stage in any geography or indication. And as you can likely tell, there has been some significant movement in the later stages of development with additional programs now in Phase I, in Phase II and in Phase III. Now I know many investors follow and reference this graphic frequently, and I do want to point out a few things that developed in Q1 that are playing a key role in driving elements of the business. First, in the lower left-hand corner of this slide, in the Phase I section, you'll see we have our second OmnidAb-derived program enter human trials. For competitive reasons, this partner wants to ensure that both the therapeutic target and their work in the clinic remain confidential. And we obviously respect that request by our partner. As we move to the right on this graphic, I want to highlight that we also had a program progress from Phase I to Phase II in Q1. This is also an OmnidAb-derived program and another instance, where the partner continues to want to keep the program and specifically the source of the antibody confidential. Both programs are what I will characterize as early adopters of the OmnidAb single domain technology, which is really great to see. And both of these are pursuing what we see as areas of substantial unmet medical need. Moving further to the right, I also want to mention that Ramantamig, which was formerly referred to as JNJ-5322, jumped from Phase I to Phase III on this chart. That was a program that J&J Innovative Medicines highlighted earlier with some impressive clinical data, and it's a trispecific antibody being developed for multiple myeloma. The right-hand side of this graphic is getting more crowded with what we view as important potential first-in-class or best-in-class medicines. And I should also highlight the TEV-408 anti-IL-15 asset, which was subject to some substantial news in Q1 with a very large investment in the program by Royalty Pharma that was announced by Teva in the quarter. Teva featured this program prominently on their most recent earnings call last week, highlighting that it has potential in multiple indications and describing it as being on a "accelerated path". Slide 11 shows a summary of some of the upcoming clinical and regulatory events with 2026 clearly shaping up to be a really active year of news and catalysts for our clinical stage partner programs. Teva is expecting a few data readouts, including the TEV-408 program for vitiligo in the first half of the year. The drug is being evaluated in a 24-week proof-of-concept study with a week 24 body surface area score as the primary endpoint, which Teva has described as the registrational endpoint in this disease. The second half of the year features additional expected readouts from Teva as well as from Merck KGaA and from the IMVT-1402 program at Immunovant, which is also a very exciting program with multiple indications. And as a final slide for me here on Slide #12, we highlight a few of the partner programs that will be featured at the ASCO conference beginning later this month in Chicago. These programs cover a range of cancer types being treated with antibody drug conjugates and bispecific antibodies that are derived from our technologies. We look forward to seeing these data, which will provide additional visibility into individual assets and continue to highlight our broadly validated technology platform. And with that, let me turn the call over to Kurt for a discussion of our Q1 financial results and our updated 2026 guidance. Kurt? Kurt Gustafson: Thanks, Matt. As Matt mentioned, this was a strong quarter, driven by the advancements in our partner portfolio. So let me start with Slide 14 with total revenue. Total revenue totaled $14.4 million compared with $4.2 million in the first quarter of 2025. The increase was primarily driven by higher milestone revenue, reflecting the progress of our partners' programs in the clinic. We also saw a modest increase in service revenue due to some new Ion channel agreements signed late last year as well as early this year. Revenues from royalties and xPloration were about the same year-over-year. Turning to Slide 15, you'll see our operating expenses for the quarter. We continue to execute against our plan to run the business efficiently while investing appropriately in our technology platforms. Our operating expense in the first quarter decreased slightly to $22.3 million from $23 million. Most of this decrease is due to lower personnel expenses and outside service costs related to contract research services and legal costs. Q1 2026 also included a noncash write-off of $2.9 million related to certain legacy small molecule ion channel intangible assets. Without this, our operating expense would have shown an even larger decrease year-over-year. On Slide 16, you'll see the change in the new financial metric that we introduced last year, cash cost and operating expense. We define this as our GAAP cost and operating expense less stock-based compensation, depreciation and amortization of intangibles. Essentially, it takes the GAAP number and removes all the major noncash items in our P&L. We believe this metric provides a better measure of our spend. As you can see from this slide, while both the GAAP and non-GAAP figures decline was an even larger decline in our cash operating expense. We focus on driving efficiencies in the business that have brought costs down. But in Q1 2026 due to the noncash write-off, those reductions aren't as apparent when looking at the GAAP figures alone. Moving on to Slide 17 shows our P&L for the quarter. I'd like to draw your attention to our operating expense line items, where reductions in R&D and G&A demonstrate the impact of cost savings and other efficiency initiatives. R&D decreased $3 million to $9.6 million in the first quarter of 2026, and G&A also decreased $1.3 million to $6.6 million in the first quarter of 2026. The onetime noncash charge that I mentioned earlier was reported in the goodwill and intangibles amortization line. Net loss for the first quarter of 2026 was $7.7 million or $0.06 per share. This compares with a net loss of $18.2 million or $0.17 per share in the year ago period. Excluding the onetime noncash charge, our EPS in Q1 2026 would have been a loss of $0.04 per share. Now turning to the balance sheet on Slide 18. We ended the quarter with a cash position of $49.1 million. You'll also see a slight increase to our accounts receivable, reflecting the milestones that were achieved in the quarter that won't be paid until after the end of the quarter. We continue to believe that the company is well capitalized to execute against our strategy. Our updated 2026 financial guidance is on Slide 19, which reflects the strong first quarter performance and our view for the remainder of the year. We are raising our full year 2026 revenue outlook and revising expectations for our operating expenses and year-end cash. We now project total revenue for 2026 to be in the range of $28 million to $33 million. During the first quarter, one of our partners achieved a milestone that was not part of our original guidance, which is the primary driver of the increase in our revenue guidance. We now expect 2026 GAAP operating expenses to be in the range of $83 million to $88 million. The revised range is driven primarily by the noncash impairment charge recorded in the first quarter. Importantly, our cash operating expense guidance remains unchanged at $50 million to $55 million as the noncash write-off doesn't impact this figure. Regarding cash, with the higher expected revenue and no change to the cash operating expense guidance, we now anticipate ending 2026 with cash and cash equivalents in the range of $33 million to $38 million. The effective tax rate for the full year remains at approximately 0% because of the valuation allowance we record. I thought I would put our guidance in a historical context here on Slide 20. You can see our 3-year financial metrics are improving, in particular, when it comes to cash usage. We expect revenue to grow significantly in 2026 versus 2025, while cash operating expense is expected to remain in a tight band, driving overall cash use lower. While we're still in a period, where revenue is largely driven by milestones, which can be highly variable in any given quarter, our portfolio of partner programs has continued to grow and advance. This should generally drive milestone revenue higher. As we look beyond the next couple of years, we would expect royalty revenue to kick in and start to accelerate that revenue growth and eventually become the larger contributor to our total revenue. The stacking of royalties combined with a scalable infrastructure is the essence of our business model and points to a promising future for the company and our shareholders. And with that, I'd like to open up the call for questions. Operator? Operator: [Operator Instructions] Your first question comes from the line of Joe Pantginis with H.C. Wainwright. Joseph Pantginis: Two, please. So first, as you mentioned, you have some ASCO data coming up for some of your partners. Are there milestones associated with these data releases? And are they in your current guidance, number one? And then number two, more for your overall tech platforms. While you're constantly developing new ones, if you will, can you discuss any -- I mean, you don't have to describe any secret sauce here, but for your current platforms, any sort of improvements and refinements that you do to the existing that add to your marketability of those platforms? Matthew Foehr: Yes. Great. Thanks, Joe. Yes, great questions. In regard to the ASCO data events, maybe I'll answer that by maybe describing generally how our agreements are designed, right? So partners come to us to get access to our technologies, and we'll generally enter into a license agreement that provides them access to the technologies in exchange for service costs, some license fees and then where the real focus is, are the downstream milestones and royalties. And while we generally start in about the same place in any negotiation with our 107 partners, every agreement is different in one way or another. But generally, the milestone payments are linked to clinical events, regulatory events, approvals, things like that. So largely, it's Phase I starts, Phase II, Phase III. There are some subtleties around it. We generally don't have milestones that are specifically associated with, I'll say, data disclosures, but there can be milestones associated with data generation. So hopefully, that gives you a little more color there. But as far as ASCO, we're actually quite excited about some of the work that our partners will be presenting. I think that's an opportunity for assets to become more in focus for those that are watching the expansion and the growth of our portfolio. In terms of the technology platforms, obviously, I talked through some of our platforms today in the prepared remarks, specifically around our chicken-based technologies. And I think it's important to note, even beyond our [ night branding ] of each of those technologies, our brand team is obviously proud of that. But even beneath those, there are different kind of highly technical subflavors, if you will, of each of those animals that we pair with partners' programs. And I think that's one of the reasons why we've continued to be successful in growing the portfolio, why partners kind of understand the quality of the technologies that we produce. And for us, those continued innovations and the things we add on really are informed by these deep relationships with our partners. So really leveraging this ecosystem of partnerships and these deep relationships around discovery, that informs our continued innovation. And we expect we'll continue to innovate around our platforms, another area I will highlight is workflows as well. We continue to innovate around more efficient workflows, leveraging big data management, AI and ML and our data work, those kinds of things, partners have known that about us for years. But all of those things kind of together, I think you'll continue to see those sorts of innovations out of us in the future. Operator: Your next question comes from the line of Srikripa Devarakonda with Truist Securities. Srikripa Devarakonda: I had a couple of questions. One is around Teva, the TEV-408 with Phase Ib vitiligo data expected in the first half, and you were just talking about it, Matt, milestone -- when we think about milestones, would that be -- would we have to wait until Teva formally elects to move the program into Phase II or Phase III or at the end of Phase Ib, knowing that they're moving ahead, is there a milestone there? And then second one is Immunovant recently announced batoclimab failed Phase III trials in TED. This was, at least for a section of investors, one of your most advanced and visible programs. Can you talk a little bit about how this impacts your long-term royalty projections in the context of having Immunovant IMVT-1402 as well? Matthew Foehr: Yes. Great. Maybe I'll start with your second question, Kripa, on Immunovant. And for a long time, they have remained highly focused on rapidly advancing the clinical development of IMVT-1402. And they've really been signaling that the last almost couple of years. Obviously, IMVT-1402, it's an investigational FcRn blocker. They're looking at it across multiple autoimmune diseases with -- that significant unmet medical need. So Graves disease is one of their key strategic priorities. And -- but they're going after multiple diseases as well with IMVT-1402. So in addition to Graves, they're looking at difficult-to-treat rheumatoid arthritis and lupus, where they think they can be potentially first-in-class and best-in-class. And then also looking at myasthenia gravis and CIDP and Sjogren's disease, where they've generally described it as a potential best-in-class drug. So we have really seen and they have signaled that pivot towards IMVT-1402 for quite a while. So the Batoclimab update that occurred really had no impact on our planning or our guidance, et cetera. So we're obviously cheering them on and with all the great work that they're doing on IMVT-1402. Switching gears a little bit on your question around TEV-408 at Teva. While I can't disclose kind of the final details of any individual contract, I kind of go back to my general comments around how our agreements are generally structured that I mentioned earlier, but that is an asset that I think is becoming much more in focus now. It's an asset that they're highlighting quite a bit. They've described it as having quite a unique binding site. They call it the antibody with the highest affinity for IL-15, and they're going after multiple indications. So right now, they have vitiligo and celiac. Vitiligo is a disease with really tremendous unmet medical need with a lot of psychosocial burden, social stigma, et cetera, and they'll have top line results from that here in the first half of the year. They also have a trial running in celiac. And then more recently, they've also referenced other indications for this as well, alopecia areata, atopic dermatitis, eosinophilic esophagitis and potentially others as well. So we're obviously cheering them on. It's great to see not only their efficiency of acceleration of clinical work, but they've also, in some of their recent presentations, talked about potential market size and seeing a potential for peak sales of $1 billion in just in vitiligo and $1.5 billion to $2 billion in celiac. So we're cheering them on as well. And they've been a great partner, long-term partner of ours. So that's good to see. Operator: [Operator Instructions] Your next question comes from the line of Brendan Smith with TD Cowen. Jacqueline Kisa: This is Jackie on for Brendan. Maybe a broader question to start for us. We've been seeing a lot of pharma and academic users increasing their own adoption of AI within their workflows. So how should we think about how that ramp in adoption should impact demand for your specific products and services? Do you expect the increase in partner model training could potentially accelerate demand for your platform, which is very data generating? Matthew Foehr: Yes. Thanks, Jackie. Yes, good question. Simply put, we see AI as a tailwind for the industry as a real positive for a lot of different reasons. One, and there's been a lot of reports of AI playing a role in accelerating the potential early identification of new targets. And I think we kind of see some early evidence of that with some of the things that came out of the AACR meeting this year that I was referencing in the prepared remarks with over 170 previously untracked oncology targets now being visible. Our partners have known about us for a long time, and you can look at our history of announcements, et cetera, that we've leveraged AI for quite a while. We've been deep in that space. It's a natural place for us to go when you have novel biological systems that are generating billions upon billions of sequences it was always a natural place for us to go. That's something -- a few years ago, we rolled out our OmniDeep platform, which is essentially a way for us to kind of brand the in silico tools that are woven throughout our technology platform. I've told this story a couple of times, and I was kind of reminded of it because I saw this partner recently, but there was a partner, who was talking to me, who was describing the success they were having with our platform and talking about how much there is still to learn about novel biology. And that's especially true when you're going after a disease target that might not be fully understood. And she was comparing the data about target biology that exists in all of the public databases and even within individual companies only as sort of a bathtub of data, if you will, whereas when you're going after a novel target, you need to explore the ocean. And she was sort of connecting our animals as being a way to navigate that ocean, right, that you can generate these bespoke repertoires and then downstream from that, you can really leverage AI and machine learning to help you focus and hone and do downstream work. So we're excited about the impact of AI across the industry, and I think we're really well positioned. Jacqueline Kisa: So more of Dolphin and less of a [ rubber ducky ], I guess, in that analogy. But maybe just -- it might be too early to tell, but just as a follow-up, are you seeing any shift in new partner interest towards like more data and tech-focused partners away from more of the biology pure plays? It might be too early to tell that, but are you seeing any of that kind of mix shift over to tech? Matthew Foehr: Well, I do -- the comment I'll make and it sort of relates to our xPloration platform is that I do think there is -- and it's part of the reason we feel like xPloration is well timed. There is a thirst for more data, right, and big data analysis. And I think that was one of the things that I think partners saw in us and can see our technology platform developing and producing. So hopefully, that gives you some color. Operator: Your next question comes from the line of Stephen Willey with Stifel. Joshua Nickerson: This is Josh on for Steve. So I know that you said you have this new license out of the Florida State and just kind of thinking about -- I know you had said you share economics generated from partnerships like this, but I wanted to kind of dig a little deeper into kind of the differences in the economics associated with maybe a more academic deal versus more industry-focused deal and what kind of differences there are there and maybe if there's any kind of priority for one or the other moving forward? Matthew Foehr: Yes. Good question. The way we describe and really design the architecture of our agreements with the academics is in a simple sense, they're -- we'll call it a revenue share, right? But they're designed that way specifically to enable academics who are focused on asset monetization or company formation, right? And we've seen -- we've already seen examples of that. That's something I think, with some dynamics that exist in the greater academic landscape, we'll see more universities who are motivated to spin companies out, out of some of their basic biology technology and that sort of thing. So the way they're structured, there's a sharing of revenue that will flow back to OmniAb. And that can come in a variety of forms, whether it's license fees -- sublicense fees to a new entity that's formed, whether it's in the form of equity of the new formed entity that would also flow back to OmniAb. And so those kinds of scenarios and, of course, milestones and royalties as well. So those agreements are specifically structured to enable that. That's something that we think is quite unique in terms of how we do licensing with the academic space, and it's something that I think does attract partners. And some of the research that these places are doing is quite exquisite. I'm very impressed with some of the things that have been produced by some of our academic partners who from the very beginning are planning to potentially form companies. Now that obviously takes time, but it's a good thing to see. So hopefully, that gives you a little more color. Joshua Nickerson: Yes, definitely. And then just a follow-up. I know there was a previous question on kind of some of the milestones attributed to maybe some of the catalysts for the second half of this year. And just trying to think about some of your milestone and license revenue assumptions for the remainder of the year. Is it fair to say with some of these clinical event catalysts coming up that maybe some of your milestone and royalty revenues will be more second half weighted in terms of your guidance that you provided? Kurt Gustafson: Well, I think we provided full year guidance for revenue. Q1 was a pretty strong quarter for us. Most of the revenue that sort of is slated for 2026 is kind of milestone-based. That can be lumpy. So we had a really nice Q1, but we're also looking forward, we sort of have forecasted a number of nice clinical events to happen throughout the rest of the year. So we're off to a good start, but we see more to come. Operator: Your next question comes from the line of Puneet Souda with Leerink. Michael Almisry: You have Micheal Sonntag for Puneet. Congrats on the quarter. My first question regards to OmniUltra. I was wondering if you could offer any insights on traction you're seeing with expanding into like new customer types and modalities that you've highlighted peptides is one area that this model unlocks. Any color you can offer there? Matthew Foehr: Yes. Great. Thanks, Micheal. Yes, obviously, OmniUltra is our newest technology. We just launched it in December, as I mentioned, our team is actually going to be highlighting it at the PEGS conference as well as the TIDES conference in Boston next week, and it opens up a whole host of new opportunities for us. still early days. I'll say the reception is good. We obviously have multiple programs running with OmniUltra partner programs already. We disclosed that previously. And I think for the antibody space, the players that know OmniAb very, very well in the antibody space, it's a very natural expansion, and we're obviously working on a number of work plans and expect some other starts coming here soon around OmniUltra. And those are folks who are interested in, I'll say, kind of the Pico body element as well as the ultra-long CDRH3 element that the OmniUltra platform produces. On the peptide side, it really is kind of a completely new way of discovering peptides, right? So you're looking for inherently or you're screening right out of the gate, essentially inherently biologically active and peptides that are also evolved for stability, you get high diversity in those repertoires. But it is a bit of a new sell, right? These are new customers for us, which is great. I see a real nice opportunity there. But there are over 130 companies that previously were not in our call file that are now in our call file that our BD team is -- has been reaching out to and dialoguing with. So still early days, but we're excited about it, and we are really looking forward to highlighting the OmniUltra technology at these conferences next week as well. Michael Almisry: And then I wanted to also ask on the new program starts this quarter. It came in maybe a little bit softer than we were expecting. And we did have a larger tool company, particularly leveraging the preclinical space, highlight some headwinds in the early-stage [ biotech ] affecting their results. I'm curious if you could offer any color on if you're seeing any of that or if this is just your standard fluctuations in the starts. Matthew Foehr: Yes. I'd characterize it as standard fluctuations, right? We see lumpiness in program additions. We saw a big bolus of programs come in very late in Q4. And sometimes there will be impacts on when we receive annual or biannual reports from our partners. So it can have -- that can also be part of that as well. But no, we actually -- we see the industry really -- a couple of years ago, there was a lot more, I'll say, macro headwinds in the industry. We're really seeing the industry get back to work, and we're excited about that. So I just would describe it as kind of the standard lumpiness that we see. Operator: Your next question comes from the line of Michael King with Rodman & Renshaw. Tanay Mehta: This is [ Tanay ] on for Mike. Congratulations on the updates. Just a quick one on your active programs. You had 9 additions and 7 terminations and that base the guidance for this year. Just wanted to ask, is the value of the newer contracts higher than the older ones? Or if you could provide some more color on that? Matthew Foehr: Yes. So as we look across our whole portfolio of programs, right, we've got over $3 billion in contracted milestones and average royalty rate of 3.4%. As you look at what our average royalty rate was a couple of years ago, that it's actually improved over time. When you have that big of a denominator, right, it can take time to continue to evolve that. But as we continue to have a further validated platform and invest in it, that's allowed us to command, I'll say, strong economics. The way program additions and starts work, right, they're going to be linked to an individual partner and a contract. So they're not always linked to a contract that would say, just signed in the last quarter or so, right? Some of the programs that are going to be spinning up are ones that are from an agreement that may have been signed a couple of years ago, right? So there's a variety there. But again, I kind of direct back to our total portfolio from that perspective. But we are excited about the novel targets that our partners are going after. We're noticing bigger companies taking bigger swings, if you will, from a target and an indication perspective. And I think that's good to see, that's healthy to see, and that's something that we're excited about as well. Operator: There are no further questions at this time. I will now turn the call back to Matt Foehr for closing remarks. Matthew Foehr: Great. Thank you, operator. We look forward to discussing our second quarter financial results in a few months. And in the meantime, we'll be participating in some investor conferences over the coming weeks, including Benchmark's Healthcare House Call Virtual Investor Conference that will be later this month. And then we'll also be at the Jefferies Global Healthcare Conference in New York City in June. So we hope to see some of you there. So thanks again for joining our call, and have a great day. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in OmniAb, 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 OmniAb 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. OmniAb (OABI) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Conference Call Begins at 4:30 p.m. Eastern Time Today EMERYVILLE, Calif., May 07, 2026--(BUSINESS WIRE)--OmniAb, Inc. (NASDAQ: OABI) today reported financial results for the three months ended March 31, 2026, provided operating and partner program updates, and increased 2026 financial guidance. "OmniAb experienced strong momentum during the first quarter as multiple partnered programs advanced into later-stage clinical development, reinforcing the diversity and value of our portfolio. With a very strong start to the year, we are raising our 2026 revenue guidance," stated Matt Foehr, Chief Executive Officer of OmniAb. "Continued progression of partner programs highlights the value of our technology platform and positions our business well for the future. Our innovation efforts continue to differentiate our platform as demonstrated by the launch of OmniUltra™ and our xPloration® partner access program." First Quarter 2026 Financial Results Revenue for the first quarter of 2026 was $14.4 million, compared with $4.2 million for the same period in 2025, with the increase primarily related to milestone revenue. Research and development expense was $9.6 million for the first quarter of 2026, compared with $12.6 million for the same period in 2025, with the decrease due to lower personnel expense, share-based compensation expense, and external expenses associated with legacy small molecule ion channel programs. General and administrative expense was $6.6 million for the first quarter of 2026, compared with $7.9 million for the same period in 2025, with the decrease primarily due to lower personnel expense, share-based compensation expense, and legal fees. Amortization of intangibles increased to $6.0 million for the first quarter of 2026, compared with $3.2 million for the same period in 2025, primarily due to a $2.9 million non-cash impairment related to the discontinuation of certain legacy small-molecule ion channel programs. Total costs and operating expenses were $22.3 million for the first quarter of 2026, compared with $23.0 million for the same period in 2025. Cash costs and operating expenses were $12.3 million for the first quarter of 2026, compared with $14.7 million for the same period in 2025 (see note regarding "Use of Non-GAAP Financial Measure" below for further discussion of this non-GAAP measure). Net loss for the first quarter of 2026 was $7.7 million, or $0.06 per share, compared with a net loss of $18.2 million, or $0.17 per share, for the same period in 2025. 2026 Financial Guidance OmniAb revises 2026 financial guidance and now expects revenue to be in the range of $28 million to $33 million, versus $25 million to $30 million previously, and costs and operating expenses to be in the range of $83 million to $88 million, versus $80 million to $85 million previously. Cash costs and operating expenses remain unchanged and are expected to be in the range of $50 million to $55 million (see note regarding "Use of Non-GAAP Financial Measure" below for further discussion of this non-GAAP measure). The Company now expects to end the year with cash and cash equivalents in the range of $33 million to $38 million, versus $30 million to $35 million previously. The full-year 2026 effective tax rate is expected to be approximately 0%. First Quarter 2026 and Recent Business Highlights During the first quarter of 2026, OmniAb entered into a new license agreement with Florida State University. As of March 31, 2026, the Company had 107 active partners and 409 active programs, including 32 OmniAb-derived programs in clinical development or being commercialized. Business and partner highlights from the first quarter of 2026 and recent weeks included the following: IMVT-1402 & batoclimab The potentially registrational trial with IMVT-1402 in difficult-to-treat rheumatoid arthritis is fully enrolled, with topline data expected in the second half of this year. Topline data from the proof-of-concept trial with IMVT-1402 in cutaneous lupus erythematosus is also expected in the second half of this year. Potentially registrational studies with IMVT-1402 in Graves’ disease (GD), myasthenia gravis (MG), chronic inflammatory demyelinating polyneuropathy and Sjögren’s disease remain on track with topline data in GD and MG expected in 2027. Immunovant announced topline data from its two Phase 3 studies evaluating batoclimab as a treatment for active, moderate-to-severe thyroid eye disease and intends to review future plans for the development of batoclimab with its partner HanAll Biopharma Co. Immunovant remains focused on rapidly advancing the clinical development of IMVT-1402. TEV- '408 Teva Pharmaceuticals announced a funding agreement with Royalty Pharma of up to $500 million to accelerate the clinical development of Teva’s anti-IL-15 antibody TEV-'408 for vitiligo. Topline results of the Phase 1b trial evaluating TEV-'408 for vitiligo are expected in the first half of this year. Topline results of the Phase 2a trial evaluating TEV-'408 for celiac disease are expected in the second half of this year. Precemtabart tocentecan (M9140) At the American Society of Clinical Oncology (ASCO) Gastrointestinal Cancers Symposium, pooled data on precemtabart tocentecan, a novel anti‑CEACAM5 antibody‑drug conjugate with a topoisomerase 1 inhibitor payload, from the PROCEADE-CRC-01 study in patients with metastatic colorectal cancer were presented that showed an objective response rate of 26.8% and median progression-free survival of 6.9 months. The overall safety profile was consistent with earlier data with no new or unexpected treatment-emergent adverse events. Merck KGaA indicated that based on Phase 1 data, it plans to advance precemtabart tocentecan directly to Phase 3 trials in metastatic colorectal cancer, with study initiation anticipated in the second or third quarter of 2026. OmniAb expects that multiple partner programs will be highlighted at the ASCO Annual Meeting taking place May 29 - June 2, 2026. Conference Call and Webcast OmniAb management will host a conference call with accompanying slides today beginning at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss this announcement and answer questions. To participate via telephone, please dial (833) 461-5787 using the conference ID 563758100. Slides, as well as the live and replay webcast, are available at https://investors.omniab.com/investors/events-and-presentations/default.aspx. About OmniAb® OmniAb licenses cutting-edge discovery research technology to pharmaceutical and biotech companies and academic institutions to enable the discovery of next-generation therapeutics. Our technology platform creates and screens diverse antibody repertoires and is designed to quickly identify optimal antibodies and other target-binding proteins for our partners’ drug development efforts. At the heart of the OmniAb platform is what we call Biological Intelligence™, which powers the immune systems of our proprietary, engineered transgenic animals to create optimized antibody candidates for human therapeutics. We believe the OmniAb animals comprise the most diverse host systems available in the industry. Our suite of technologies and methods, including computational antigen design and immunization methods, paired with high-throughput single B-cell phenotypic screening and mining of next-generation sequencing datasets with custom algorithms, are used to identify fully-human antibodies with exceptional performance and developability characteristics. We provide our partners both integrated end-to-end capabilities and highly customizable offerings, which address critical industry challenges and provide optimized discovery solutions. Our business model aligns scientific and economic interests of our partners through structured agreements that generally include upfront/access fees, service revenue, milestones and royalties on commercial sales. For more information, please visit www.omniab.com. Forward-Looking Statements OmniAb cautions you that statements contained in this press release regarding matters that are not historical facts are forward-looking statements. Words such as "may," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "project," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" and similar expressions, are intended to identify forward-looking statements. The forward-looking statements are based on our current beliefs and expectations and include, but are not limited to: statements regarding the value of our portfolio and growth prospects of our business; the ability to add new partners and programs; the ability to maintain a disciplined cost structure; continuation of our innovation efforts and the expected value and performance of our technologies and the opportunities they may create, including OmniUltra; potential contributions to our business by our xPloration partner access program; scientific presentations and clinical and regulatory events of our partners and the timing thereof and their perspectives on and expectations for their product candidates; and our 2026 financial guidance. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in our business, including, without limitation: our future operating results and success is dependent on acceptance of our technology platform and technologies by new and existing partners, as well as on the eventual development, approval and commercialization of products developed by our partners for which we have no control over the development plan, regulatory strategy or commercialization efforts; biopharmaceutical development is inherently uncertain; risks arising from changes in technology; the competitive environment in the life sciences and biotechnology platform market; risks associated with quality and timing in manufacturing our xPloration instruments and related consumables and our reliance on a limited number of third-party manufacturers and suppliers; our failure to maintain, protect and defend our intellectual property rights; difficulties with performance of third parties we will rely on for our business; government healthcare reform, legislative measures and regulatory developments in the United States and foreign countries; unstable market and economic conditions may have serious adverse consequences on our business, financial condition and stock price; the potential impact of tariffs, trade policies, geopolitical instability and conflicts, inflation and interest rate changes; we may not achieve our financial guidance; our operating expenses may be higher than we anticipate, including if we decide to engage in activities not currently in our plan or if we face unexpected, or higher than anticipated, expenses; we may use our capital resources sooner than we expect; and other risks described in our prior press releases and filings with the SEC, including under the heading "Risk Factors" in our annual report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and we undertake no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Partner Information The information in this press release regarding partnered products and programs comes from information publicly released by our partners. Note Regarding Use of Non-GAAP Financial Measure This press release includes financial results prepared in accordance with accounting principles generally accepted in the United States (GAAP), and also actual and projected cash costs and operating expenses, which is a non-GAAP financial measure, adjusted to exclude share-based compensation, depreciation and amortization of intangibles. Non-GAAP financial measures are not an alternative for financial measures prepared in accordance with GAAP. However, OmniAb believes the presentation of actual and projected non-GAAP cash costs and operating expenses, when viewed in conjunction with GAAP figures, provides investors with a more meaningful understanding of our operating performance. Cash costs and operating expense is not intended to be considered in isolation or as a substitute for costs and operating expenses. A reconciliation between actual and projected GAAP costs and operating expenses and non-GAAP costs and operating expenses is provided later in this press release. [Tables Follow] View source version on businesswire.com: https://www.businesswire.com/news/home/20260507498483/en/ Contacts OmniAb, Inc. [email protected] X @OmniAbTech Alliance Advisors IR Yvonne Briggs [email protected] (310) 691-7100

Interested in OmniAb, Inc.? Here are five stocks we like better. OmniAb reported Q1 revenue of $14.4M (vs. $4.2M a year ago) largely driven by milestone revenue, narrowed its net loss to $7.7M, and has raised guidance for 2026 revenue to $28–33M while expecting year-end cash of $33–38M. Partner programs are advancing into later stages—the company cites 32 active clinical programs and multiple new clinical entrants expected in 2026, including a program that moved from Phase I to Phase III, with roughly $350M of remaining potential contracted milestones tied to the clinical-stage portfolio. OmniAb is leaning on technology differentiation—its unique transgenic chicken platforms (including OmniUltra with ultralong CDRH3s) and AI-enabled xPloration screening—to expand partner interest and new business development opportunities. OmniAb (NASDAQ:OABI) reported first-quarter 2026 results that management characterized as a “very strong start to the year,” driven primarily by clinical progress across its partner portfolio and associated milestone revenue. President and CEO Matt Foehr said the company continues to see partner programs derived from OmniAb’s technologies move into the clinic and into later-stage development, which he described as the point where the licensing model translates into “clearer and more visible value” through potential future milestones and royalties. He added that the company’s business is designed to generate “durable revenue streams,” with royalties from differentiated pharmaceutical products viewed as “extremely valuable.” → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% In the quarter, OmniAb ended with 32 active clinical programs and approved products leveraging its technologies, a figure the company reports net of attrition. Foehr said a second OmnidAb-derived program entered phase I human testing during the quarter, and OmniAb continues to anticipate “multiple new clinical entrants in 2026.” He also noted approximately $350 million in remaining potential contracted milestones tied to the clinical-stage portfolio. Foehr highlighted several developments in the partner pipeline during the quarter, including an OmnidAb-derived program that progressed from phase I to phase II and a second OmnidAb-derived program entering human trials. He said both partners have requested confidentiality around the targets and the source of the antibodies. → Light Speed Returns: Corning Cashes In on NVIDIA Growth Foehr also pointed to movement in later-stage development, including Romantamig (formerly JNJ-5322), which he said “jumped from phase I to phase III” on the company’s pipeline chart. He described the asset as a tri-specific antibody being developed for multiple myeloma and said JNJ Innovative Medicine previously highlighted the program with “impressive clinical data.” Another partner program discussed was Teva’s anti-IL-15 asset TEV-’408. Foehr noted that Teva announced a “very large investment” in the program from Royalty Pharma during the quarter and said Teva described the program on its recent earnings call as being on an “accelerated path.” → Years in the Making, AMD’s Upside Movement Has Just Begun Management outlined a series of expected clinical and regulatory events in 2026. Foehr said Teva expects data readouts in the first half of the year, including TEV-’408 in vitiligo from a 24-week proof-of-concept study using a week 24 body surface area score as the primary endpoint, which Teva has described as the registrational endpoint in the disease. He added that additional readouts are expected in the second half of the year from Teva, Merck KGaA, and Immunovant’s IMVT-1402 program. On the call, Truist Securities analyst Srikripa Devarakonda asked about Immunovant after the company reported that batoclimab failed a phase III trial in thyroid eye disease. Foehr said Immunovant has been “highly focused” on rapidly advancing IMVT-1402 and had been signaling that shift for “almost a couple of years.” He said the batoclimab update had “no impact on our planning or our guidance,” and he reiterated that IMVT-1402 is being evaluated across multiple autoimmune diseases, including Graves’ disease, difficult-to-treat rheumatoid arthritis and lupus, as well as myasthenia gravis, CIDP, and Sjögren’s disease. Foehr also previewed that several partner programs will be featured at the upcoming ASCO conference in Chicago, including antibody-drug conjugates and bispecific antibodies derived from OmniAb technologies. In response to a question from H.C. Wainwright analyst Joseph Pantginis, Foehr said OmniAb milestones are generally linked to clinical and regulatory events (such as phase starts and approvals) rather than “data disclosures,” though he added there can be milestones tied to “data generation.” Foehr emphasized OmniAb’s focus on technology innovation as a licensing differentiator. He said the company is “the only company in the world with a transgenic chicken platform that creates fully human antibody sequences,” and argued that the evolutionary distance between chickens and mammals can generate a more robust and diverse antibody response to novel targets. He highlighted OmniUltra, launched in December, which he described as “the first and only transgenic chicken that produces antibodies with ultralong CDRH3s,” a feature typically found in cows. Foehr said ultralong CDRH3 antibodies are designed to reach binding pockets not accessible with other antibodies or modalities and may serve as building blocks for multi-specifics, CAR-T binders, radiopharma therapies, and “in vivo generated peptides.” OmniAb scientists are set to present on OmniUltra at the PEGS protein engineering meeting and the TIDES peptide meeting in Boston. In Q&A with Leerink Partners analyst Michael Sonntag, Foehr said OmniUltra is in “early days” but that “the reception is good” and OmniAb already has multiple OmniUltra partner programs underway. He also said the platform creates an opportunity to reach new customers in peptides, calling it “a bit of a new sell,” and noted that more than 130 companies not previously in OmniAb’s business development “call file” are now being engaged around the opportunity. Foehr also discussed xPloration, OmniAb’s high-throughput single B-cell screening platform that leverages machine learning and artificial intelligence. He said the xPloration sales funnel continues to grow with “high-quality prospects” and described demand for demos based on “rapid run times,” “ease of use,” and robustness. He framed broader AI adoption as a “tailwind” for the industry and said OmniAb has leveraged AI “for quite a while,” including through its OmniDeep in silico toolset. OmniAb reported 107 active partners at the end of Q1, consistent with year-end 2025. Foehr said the company signed a new license with Florida State University and is seeing growing opportunities in academia through agreements designed to share in the economics of assets generated from OmniAb technology. He added that partner adds in the quarter were offset by attrition, which he described as expected, and said eight of the 10 largest pharmaceutical companies in the world are active partners. The company ended the quarter with 409 active programs, reflecting new program additions and starts offset by attrition. Foehr said approximately 98% of active programs include contracted future economics to OmniAb. Across the portfolio, he cited more than $3 billion in total contracted milestones on standard antibody licenses and an average contracted royalty rate of approximately 3.4%. Asked by Rodman & Renshaw about whether new contracts are more valuable than older ones, Foehr said the company’s average royalty rate has improved over time and attributed OmniAb’s ability to “command strong economics” to validation of its platform and continued investment. He also noted that program starts can stem from agreements signed years earlier, not only recent contracts. Chief Financial Officer Kurt Gustafson reported total revenue of $14.4 million for the first quarter, up from $4.2 million in the year-ago quarter. He said the increase was primarily driven by higher milestone revenue reflecting partner clinical progress. Service revenue rose modestly due to new ion channel agreements signed late last year and early this year, while royalty and xPloration revenue were “about the same” year-over-year. Operating expenses in Q1 decreased slightly to $22.3 million from $23.0 million. Gustafson attributed the change mainly to lower personnel expenses and outside service costs, including contract research and legal. The quarter also included a $2.9 million non-cash write-off related to certain legacy small molecule ion channel and tangible assets; Gustafson said that without the write-off, operating expense would have shown a larger year-over-year decrease. R&D expense decreased $3.0 million to $9.6 million, and G&A expense decreased $1.3 million to $6.6 million, which Gustafson said reflected cost savings and efficiency initiatives. Net loss was $7.7 million, or $0.06 per share, compared with a net loss of $18.2 million, or $0.17 per share, in the prior-year period. Excluding the one-time non-cash charge, Gustafson said Q1 EPS would have been a loss of $0.04 per share. OmniAb ended the quarter with $49.1 million in cash and cash equivalents. Gustafson noted accounts receivable increased slightly due to milestones achieved during the quarter that will be paid after quarter-end, and he said the company remains “well-capitalized” to execute its strategy. Based on the first-quarter performance, OmniAb raised its full-year 2026 revenue outlook to $28 million to $33 million. Gustafson said the increase was primarily driven by a partner milestone achieved in Q1 that was not included in the company’s original guidance. The company also updated its GAAP operating expense guidance to $83 million to $88 million, driven primarily by the non-cash impairment charge recorded in Q1, while maintaining cash operating expense guidance of $50 million to $55 million. With higher expected revenue and unchanged cash operating expense expectations, OmniAb now anticipates ending 2026 with $33 million to $38 million in cash and cash equivalents. Gustafson said the full-year effective tax rate is expected to remain approximately 0% due to the company’s valuation allowance. OmniAb, Inc (NASDAQ: OABI) operates as a biotechnology company specializing in the discovery and development of therapeutic antibodies. The company’s integrated antibody discovery platform combines proprietary transgenic animal models, in vitro screening, and in silico engineering to accelerate lead identification and optimization. OmniAb offers both fee-for-service collaborations and license agreements, enabling biopharmaceutical partners to leverage its suite of technologies for programs spanning oncology, immunology, and other therapeutic areas. Founded in 2016 and headquartered in Seattle, Washington, OmniAb went public in May 2021. The article "OmniAb Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.