Champions Oncology — First Quarter Fiscal 2027 Earnings Summary

Financial Performance

• Total oncology revenue increased 8.8% year-over-year to $15.2 million, up from $14.0 million in the prior-year period.
• Oncology services margin improved to 51% from 43% in the prior-year period, driven by higher revenue and lower third-party radiolabeling costs.
• Adjusted EBITDA increased to $671,000 from $59,000 in the prior-year period.
• Net loss narrowed to $426,000 compared to a net loss of $466,000 in the prior-year period.
• Total costs and operating expenses rose 7.7% to $15.6 million from $14.5 million in the prior-year period.
• Cost of oncology revenue decreased 5.8% to $7.5 million from $8.0 million in the prior-year period.
• Net cash used in operating activities was approximately $492,000, compared to net cash provided of $600,000 in the prior-year period.
• The company ended the quarter with $4.4 million in cash and no debt.
• Deferred revenue increased to $9.6 million from $8.8 million at the end of the previous quarter.

Guidance and Future Outlook

• Management stated a focus on building sustainable growth across the business while continuing to improve profitability.
• The company is investing in its commercial organization, radiopharmaceutical capabilities, data platform, and target discovery initiatives to drive future revenue growth.

Business Segments and Product Lines

• Growth was driven by higher core research services revenue, reflecting improved conversion of contracted work into revenue.
• Data license revenue also increased, contributing to overall revenue growth.
• Research and development expense increased 12.6% to $2.3 million, primarily due to higher share-based compensation related to Corellia, the company's wholly owned subsidiary focused on target discovery.
• Sales and marketing expense increased 66.6% to $3.1 million from $1.9 million, reflecting investment in expanding the commercial organization to support growth in research services and data licensing.
• General and administrative expense increased 4.0% to $2.7 million from $2.6 million.

Management Commentary and Tone

• CEO Robert Brainin described the performance as "strong," citing improved study execution and conversion in the core research services business.
• CFO David Miller highlighted the operating leverage demonstrated by the increase in Adjusted EBITDA as revenue grew.
• Management emphasized maintaining expense discipline while converting revenue growth into improved profitability.

Other Key Points

• The company reported $766,000 in stock-based compensation and $314,000 in depreciation and amortization expense for the quarter.
• Proceeds from the exercise of stock options were $52,000 for the quarter.
• Purchases of property and equipment totaled $55,000.
• The company holds the largest and most annotated bank of clinically relevant patient-derived xenograft (PDX) and primary hematological malignancy models.
• The company will host a conference call to discuss results, with full details available in the Form 10-Q on or before September 14, 2026.