OmniAb, Inc. Q3 FY2025 earnings call

• Had strong deal flow in Q3 with program additions equaling 2024's total, and active partners exceeding 100.
• xPloration partner access program sales funnel growing, with strong interest and new opportunities.
• Launching OmniUltra, a transgenic chicken producing cow-like antibodies with ultra-long CDRH3s, set for December launch at Antibody Engineering & Therapeutics Conference.
• Active programs leveraging technologies increased to 399, with 36 net additions year-to-date. Post-discovery stage programs increased 15% year-over-year, and one program moved to registration phase.
• Clinical programs: 32 active, with 2 new entries into clinic and 2 exiting; potential for 5 new clinical entries from novel OmniAb-derived programs this year.

For the third quarter of 2025, OmniAb reported revenue of $2.2 million, down from $4.2 million in the same period of 2024. The decrease was due to fewer milestones achieved and lower service revenue, but was offset by xPloration revenue from consumables and a modest increase in royalty revenue. Cost and operating expense decreased to $20.4 million from $23.9 million in the prior year period. R&D expense was $10.4 million vs $13.3 million in 2024, and G&A expense was $6.8 million vs $7.1 million. Net loss for Q3 2025 was $16.5 million or $0.14 per share. The balance sheet as of September 30, 2025, showed $59.5 million in cash, and after a $30 million private placement, the company had a stronger balance sheet.

• 2025 revenue expected to be between $18 million and $22 million, operating expense between $82 million and $86 million.
• Cash used in 2025 expected to be lower than 2024 excluding financings, with year-end cash balance between $52 million and $56 million.
• Tax rate remains unchanged at approximately 0% due to valuation allowance.

Q: Thoughts on the timing and motivation of the private placement and cash runway?

A: Kurt mentioned it was to bolster the balance sheet as markets became more favorable, and Matt added it provides flexibility and the company is well capitalized.

Q: Color on xPloration customer conversations and bookings?

A: Interest in xPloration is strong, with higher-tier partners most active, positive feedback on efficiency and ease of use, and demos ongoing.

Q: OmniUltra launch readiness and partners lined up?

A: Substantial validation work done, with 2 podium and 2 poster presentations at AET conference, well-positioned for December launch.

Q: xPloration revenue breakdown and future metrics?

A: Early days, mostly consumables revenue, with more color expected as launch progresses.

Q: Program delays and R&D budget trends?

A: Some program milestones pushed to 2026 due to standard development timing, but strong program addition momentum continues, and R&D budgets are being planned with xPloration in focus.