Champions Oncology, Inc. (CSBR) Q2 2025 Earnings Call Transcript
Revenue $13.5 million, a 17% increase over the same period last year.
Income from Operations (GAAP) $700,000, compared to a loss of $1.9 million in the prior year.
Adjusted EBITDA $1.1 million, compared to an adjusted loss of $1.4 million in the year ago period.
Total Cost of Sales $7.4 million, an increase of 11% from $6.6 million in the second quarter of last year.
Gross Margin 45%, improved from 43% for the same period last year.
R&D Expense $1.7 million, a decline of $800,000 from $2.5 million in the year ago period.
Sales and Marketing Expense $1.7 million, mostly unchanged compared to $1.8 million last year.
G&A Expense $1.6 million, a decrease of $500,000 from $2.1 million in the year ago period.
Total Revenue (First Half) $27.6 million, an increase of 14% compared to $24 million in the first half of 2024.
Total Cost of Sales (First Half) $14.4 million, a small increase of $300,000 or 2% compared to $14.1 million.
Gross Margin (First Half) 48%, improved from 41% in the first half of last year.
Total Operating Expenses (First Half) Down approximately $3.1 million compared to last year.
Adjusted EBITDA (First Half) $3.2 million, compared to an adjusted loss of $3.1 million last year.
Cash Position $2.8 million of cash on the balance sheet and no debt.
Cash Used in Operating Activities $300,000, primarily due to an increase in accounts receivable and a reduction in payables.
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- Record Core Services Revenue: Champions Oncology reported a record core services revenue of $16.6 million in Q3 2026, representing a 32% increase year-over-year despite an overall revenue decline of 3%, indicating strong performance in its core business and setting the stage for sustained future growth.
- Positive Adjusted EBITDA for Third Quarter: The company achieved positive adjusted EBITDA for the third consecutive quarter, with management emphasizing their commitment to full-year revenue growth while continuing to invest in both the data platform and drug discovery subsidiary, reflecting confidence in future profitability.
- Early Momentum in Data Business: Management noted early progress in the data business with new deals closed during the quarter, anticipating recognition of six-figure data revenue in Q4, which highlights the potential and rising market demand for this new business segment.
- Strategic Investment and Cost Control: Although total sales costs rose to $8.8 million, resulting in a gross margin decline to 47%, management plans to reduce costs by bringing outsourced work in-house, ensuring long-term financial health and the effectiveness of strategic investments.
- Earnings Highlights: Champions Oncology reported a Q3 non-GAAP EPS of $0.04, with revenue at $16.6 million, reflecting a 2.4% year-over-year decline, indicating pressure in market competition.
- Operational Loss: The company recorded a GAAP loss from operations of approximately $276,000, while adjusted EBITDA stood at $574,000, suggesting room for improvement in cost management.
- Margin Improvement: Champions Oncology's margin improved to 52%, indicating progress in expanding its radiolabeling and data platform, which may lay the groundwork for future profitability.
- Market Outlook: Despite the revenue decline, signals of technological platform expansion may attract investor interest, particularly against the backdrop of ongoing innovation in the biotechnology sector.
- Announcement of Agreement: Blackstone has announced an agreement to acquire Champions Group.
- Strategic Move: This acquisition is part of Blackstone's strategy to expand its portfolio in the sports and entertainment sector.
Earnings Reports Schedule: This week features earnings reports from various companies, including homebuilders, apparel brands, and tech firms, with notable reports from Micron Technology and Nike.
Key Earnings Dates: Major companies reporting include Navan, Ark Restaurants, and Champions Oncology on Monday; Organigram and Duluth Holdings on Tuesday; and a heavy slate on Wednesday with Jabil, General Mills, and Micron.
Investor Focus: Investors are particularly interested in Micron's performance, with expectations of strong earnings driven by high bandwidth memory sales for AI chips.
End of Week Reports: The week will conclude with Carnival Corp and other companies like Paychex and Conagra Brands reporting before Friday's market open.










