Champions Oncology, Inc. Q4 FY2025 earnings call

Management Statement and Operational Highlights:

• Fiscal 2025 was a turnaround year with record revenue ($57M, up 14% y-o-y) and return to profitability after fiscal 2024 decline.
• Core services business built on industry-leading PDX bank and multi-omic characterization remains the foundation, with targeted investments strengthening team and operations, improving margin and profitability.
• Saw decrease in customer cancellations leading to better bookings-to-revenue conversion rate.
• Launched radiopharmaceutical services platform enabled by expanding radioactive materials license and collaborating with pharma/biotech partners.
• First data licensing deal underscored potential of multi-omic functional PDX databank, with growing pipeline validating long-term vision.
• Ronnie Morris stepping down as CEO, to be succeeded by Rob Brainin with 25+ years of experience in life sciences and data-driven innovation.

Segment Performance:

• Research Services: Generated $52.3 million in fiscal 2025, up 4% year-over-year, contributing approximately 91.75% of total revenue ($52.3M / $57M).
• Data Revenue: Contributed $4.7 million in fiscal 2025, making up approximately 8.25% of total revenue.

Guidance:

• Expect sequential quarterly revenue increase and adjusted EBITDA profit.
• Project to remain cash neutral over next quarter with cash growth in second half of 2026 as revenue increases and margin improvements take hold.
• Confident in long-term growth trajectory, with plans to expand data business and enhance profitability.

Risks:

• Ongoing macroeconomic headwinds and constrained biotech/pharma R&D budgets pose challenges.

Question and Answer: Q: Congratulations on the improved year. Current environment and expectations for fiscal '26?

A: Ronnie Morris states the current environment is still tight, but sees glimpses of improvement, feels cautiously optimistic due to niche PDX bank and differentiated product, confident in sustaining growth.

Q: Data licensing pipeline and fiscal '26 contribution?

A: Ronnie mentions pipeline is growing, licensing revenue expected to be similar in next year then grow.

Q: Radiopharmaceutical service margins and size?

A: Ronnie says radiopharmaceutical services have margins 50%-60%, high demand due to capacity constraints in the field.

Q: Capital allocation and investments for growth?

A: Ronnie states investment will be in data creation, building different types of data sets.

Q: Corellia AI partnered programs?

A: Ronnie is excited about Corellia portfolio, out raising money for the company, hopes to fund it with outside capital in next couple of months.

Q: Relationship with Turbine AI and data licensing monetization?

A: Ronnie says current licensing agreements are purely licensing, expects more partnership over time as they develop deeper data sets.