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    CSBR
    Earnings call· Apr 2026(Q4 FY26)

    CHAMPIONS ONCOLOGY Q4 FY26 earnings call CSBR

    Jul 27, 2026 Source

    Executive summary

    Champions Oncology Q4 FY26 — Record Revenue and Positive Adjusted EBITDA

    Champions Oncology achieved record annual revenue and positive adjusted EBITDA for FY26, driven by strong performance in its core services business and strategic investments in its data platform and therapeutic subsidiary, Corellia. While data revenue saw a year-over-year decline due to a non-recurring prior-year transaction and timing shifts, the company is focused on expanding its customer base and pursuing larger licensing opportunities. The company is actively seeking external funding for Corellia to potentially redeploy investments into other growth initiatives.

    Highlights

    5

    • Achieved record annual revenue of $59.4 million in FY26.

    • Delivered positive adjusted EBITDA of $1.6 million for FY26, including positive adjusted EBITDA in each of the four quarters for the first time since FY22.

    • Core translational oncology services revenue grew to a record $58.7 million, up approximately 12% over the prior year.

    • Fourth quarter gross margin improved significantly to 51% from 41% in the prior year quarter, driven by in-housing radiopharmaceutical work.

    • Ended the fiscal year with a healthy balance sheet, reporting $4.9 million in cash and no debt.

    Concerns

    4

    • Data license revenue decreased significantly to approximately $800,000 in FY26 from $4.7 million in FY25, primarily due to a large, non-recurring transaction in the prior year.

    • Some Q4 FY26 data revenue recognition, including a larger agreement, shifted into Q1 FY27, contributing to quarterly fluctuations.

    • Services growth is expected to moderate in the near term after a strong FY26 conversion.

    • GAAP net loss reflects deliberate investments in growth vectors like data and Corellia.

    Guidance & targets

    5
    CategoryTargetConfidence
    Services revenue growth rate
    moderate to a more normalized pace
    medium materiality
    Medium
    Data business revenue
    continue to fluctuate
    medium materiality
    Medium
    Corellia funding
    funded for the full year
    high materiality
    High
    Investment redeployment
    redeployed towards other growth initiatives, particularly data, or put to the bottom line
    high materiality
    High
    Outsourced radiopharma costs
    continue to decline
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Translational Oncology Services
    Achieved its strongest year in company history, driven by study conversions and model quality. Growth delivered without material headcount additions, showing operating leverage. Expected to moderate to a more normalized pace in the near term.
    PDx Bank differentiation
    		$58.7 millionapproximately 12%——
    Data Business
    Revenue comparison affected by a large, non-recurring transaction in FY25. Q4 FY26 revenue shifted to Q1 FY27. Expects revenue to continue to fluctuate in the near term. Focus on broadening customer base and larger strategic licensing opportunities.
    Customer base expanded from very small in FY25 to much larger in FY26Pipeline grown in number of opportunities and size of potential transactions
    		approximately $800,000down from $4.7 million——

    Operational metrics

    7
    Adjusted EBITDA
    $1.6 millionpositive in each of the 4 quarters, first time since FY22
    FY26

    Met commitment to full year positive adjusted EBITDA.

    Adjusted EBITDA
    $158,000
    Q4 FY26

    Fourth consecutive quarter of positive adjusted EBITDA.

    Gross Margin
    51%compared to 41% in the prior year quarter
    Q4 FY26

    Improvement reflected continued cost discipline and in-housing of radiopharmaceutical work.

    Gross Margin
    48%from 46% in the prior year
    FY26

    Modest improvement overall, with underlying core services performance stronger than reported due to offsetting factors.

    Operating Expenses
    increased
    FY26

    Increased as planned to support business development and growth initiatives.

    Cash and Investments Balance
    $4.9 million
    end of FY26

    Maintained a healthy balance sheet while investing in the business.

    Outsourced Radiopharmaceutical Costs
    meaningful reduction
    Q4 FY26

    Efforts to bring radiopharmaceutical activities in-house are beginning to show in financial results and are expected to continue to decline.

    Industry KPIs

    1
    MetricValueDetails
    Segment organic revenue growthapproximately 12%%

    Risks & headwinds

    3
    Data Revenue Fluctuationnear term

    Data license revenue was approximately $800,000 for fiscal 2026 compared to $4.7 million in fiscal 2025, with Q4 not including meaningful data revenue due to shifts into Q1 FY27.

    Mitigation: Expanding customer base through smaller licensing agreements while continuing to pursue larger strategic licensing opportunities; investing in the data platform.

    Biotech Funding Environment

    null

    Mitigation: Active discussions with venture capital groups and pharmaceutical partners; FY27 budget assumes Corellia is funded for the full year.

    GAAP Net LossFY26

    GAAP net loss

    Mitigation: These are deliberate investments positioned for stronger growth and expanding profitability ahead.

    What to watch in Q1 FY27

    4

    Corellia External Funding

    FY27
    CurrentDiscussions are active, feedback is positive, data continues to strengthen the case.
    TargetSuccessful external funding (outside round or licensing partnership)

    Why it matters

    Securing external funding for Corellia would allow redeployment of internal investments to other growth initiatives or the bottom line, impacting future profitability and growth.

    If we're successful in securing external funding, either by closing an outside round or through a licensing partnership, the investment currently flowing into that business will be redeployed towards other growth initiatives, particularly data, or put to the bottom line.

    2 min read6 chapters

    Detailed Narrative

    01

    FY26 Performance Overview

    Champions Oncology achieved record annual revenue and positive adjusted EBITDA for fiscal 2026, marking the first time since fiscal 2022 that the company reported positive adjusted EBITDA in all four quarters. This performance was driven by the strong execution of its core translational oncology services business, which saw significant growth and operational leverage. The company also continued its strategic investments in its data platform and therapeutic subsidiary, Corellia, which contributed to a GAAP net loss despite the adjusted EBITDA profitability.

    02

    Translational Oncology Services (TOS) Business Strength

    The core services business delivered its strongest year in company history, with revenue reaching $58.7 million, an increase of approximately 12% year-over-year. This growth was attributed to successful study conversions and the differentiation provided by the PDx Bank. Management highlighted the operating leverage achieved, as this growth was delivered without material headcount additions, indicating improved efficiency. The company expects services growth to moderate to a more normalized pace in the near term after this strong conversion.

    03

    Data Business Evolution and Strategic Importance

    The data business experienced a year-over-year revenue decline to $800,000 in FY26 from $4.7 million in FY25, primarily due to a large, non-recurring📎 transaction in the prior year. However, the company emphasized strategic progress, including expanding its customer base through smaller licensing agreements and growing its pipeline of larger opportunities. The integration of deeply characterized models with machine learning and AI is seen as a key long-term differentiator for drug discovery, despite expected revenue fluctuations in the near term.

    04

    Corellia Therapeutic Subsidiary Development

    Corellia, the wholly owned therapeutic subsidiary, continues to generate compelling data, reinforcing confidence in its scientific and commercial potential. The company is actively engaged in discussions with venture capital groups and pharmaceutical partners to secure external funding or licensing partnerships. While the biotech funding environment presents challenges, management's FY27 budget assumes Corellia will be fully funded, with potential for investment redeployment if external capital is secured.

    05

    Operational Efficiency and Margin Improvement

    A key operational initiative in FY26 was bringing radiopharmaceutical activities in-house, which began to positively impact financial results. This transition led to a significant improvement in fourth-quarter gross margin to 51% from 41% in the prior year quarter, and a full-year gross margin increase to 48% from 46%. The company expects continued benefits from this initiative, leading to further margin expansion over time⏳ as outsourced costs decline.

    06

    Financial Discipline and Balance Sheet Health

    Champions Oncology maintained financial discipline throughout FY26, ending the year with $4.9 million in cash and no debt. This healthy balance sheet provides the financial flexibility to continue executing its strategy and investing in growth initiatives. The company remains committed to improving profitability and maintaining financial discipline in fiscal 2027, evaluating opportunities to invest where they can generate attractive long-term returns.

    AI-generated summary of the company’s earnings call. Not investment advice.