Champions Oncology, Inc. Q1 FY2026 earnings call

• CEO Rob Brainin emphasizes building on the strong foundation, sharpening strategic execution, and positioning Champions for long-term growth, focusing on Corellia and the data business while expanding the core TOS platform. - In Q1, the company rebounded to $14 million in revenue after Q4 softness, with TOS leading and the data platform contributing. - The industry-leading PDX bank with deep multiomic characterization powers pharmacology studies across biopharma. - Despite a challenging macro environment for biotech funding and R&D budgets, trends are improving, with fewer customer cancellations, increased booking to revenue conversion, and growing relationships with large pharma. - Progress in the radiopharmaceutical services platform with expanded radioactive materials license, new infrastructure, and over 30 screened PDX models enabling integrated workflows. - The data platform is gaining traction, with three consecutive quarters of data sales since the first licensing deal closed less than a year ago. - Corellia, the wholly owned drug discovery subsidiary, continues to advance with compelling data from its platform and in vivo experiments.

In the first quarter of fiscal 2026, the company generated $14 million in revenue. The growth was led by the TOS business, with significant contributions from the emerging data platform. The research services business contributed $13.7 million, and the data business accounted for the remaining portion. The TOS business is the key driver of growth, while the data platform is showing increasing momentum.

• Anticipate to be roughly cash neutral in the second quarter. - Expect cash growth in the second half of fiscal 2026 as revenues increase and margins expand. - Foresee sequential revenue growth, continued adjusted EBITDA profitability, and margin expansion as radio labeling work shifts in-house. - Data business conversion and services business revenue are expected to grow gradually over the coming year.

• The macro environment remains challenging with biotech funding and R&D budgets under pressure.

Q: Is there any change in the strategy regarding the business model or go-to-market for the data licensing business?

A: There are no changes; it's still early with early wins and a building pipeline.

Q: How would you characterize the size of the opportunity for this business compared to the traditional business?

A: It's still early, and it's premature to predict the exact size, but potential and interest are seen.

Q: What frameworks are being considered for structuring deals with Corellia?

A: Actively involved in raising funds to support Corellia and seeking external partners and funding.

Q: Can you provide color on the broader investment landscape and customer trends?

A: Cautiously optimistic as the market is improving and budget constraints are easing, with the company well-positioned due to its proprietary tumor bank.

Q: Would you consider the stabilization period to be in the first half of the year?

A: Yes, potentially the low point for revenue in the fiscal year, with anticipation of expansion in coming quarters.

Q: Do you have color on Q2 revenue compared to last year?

A: Have a good handle on revenue but aren't providing specific guidance, anticipating quarterly revenue increase.