Is OmniAb seeing the benefits of the improved funding environment for pharma and biotech, and when might those dollars start flowing?

OmniAb has seen nice growth in partners and programs, attributing it to their differentiated technologies. They observe larger partners taking 'bigger swings' at indications with significant unmet needs and an uptick in smaller, well-funded preclinical partners like Enrosa Therapeutics, alongside new agreements with major players like Argenix. “I do see the effects of that from the perspective of the types of swings that our bigger partners are taking, right? I think I think we have the benefit of technologies that represent, I'll say, a really substantial and durable competitive advantage.”

How should we think about the impact of Exploration sales on margins as the product ramps up?

The company expects 'very good margins' on the Exploration instrument and 'even better margins' on the consumables. While there might be quarter-to-quarter variability due to product mix, the overall margin profile is expected to remain strong. “what I would characterize as very good margins on the instrument and even better margins on the consumables.”

How does OmniAb plan to close the $20+ million funding gap between spend and expected revenues, and will it be self-funded or require external funds?

Management feels confident, citing $350 million in milestones from late-stage assets and strong new deal interest. The company started the year with $54 million in cash, expects to burn about $15 million for FY26, and plans to close the gap through growing revenue from clinical milestones and future royalties, leveraging its scalable infrastructure to ensure additional revenue drops to the bottom line. “we started the year with $54 million in cash, and if you sort of take a look at our end of year cash balance and let's just take the midpoint of that range, we're burning about $15 million this year.”

OABI

OmniAb (OABI) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Health Care· Aug 6, 2026

Source: earnings call transcript

Executive summary

OmniAb Q2 FY26 — Strong Performance Driven by Partner Program Advancements and Exploration Sales

OmniAb delivered a strong Q2 FY26, driven by significant milestone revenue from advancing partner programs and initial sales of its novel Exploration platform. The company raised its full-year revenue and cash guidance, reflecting confidence in its differentiated antibody discovery technologies and the growing pipeline of clinical-stage assets. Management emphasized the long-term potential of royalties and the scalable infrastructure to drive future profitability.

Highlights

Q2 FY26 revenue totaled $13.4 million, a significant increase from $3.9 million in Q2 FY25.
Year-to-date FY26 revenue grew to $27.8 million, up from $8.1 million in the corresponding 2025 period.
Net loss for Q2 FY26 improved to $5.9 million ($0.05 per share) compared to $15.9 million ($0.15 per share) in the prior year.
Full-year 2026 total revenue guidance was raised to $32 million to $36 million.
Two Exploration instruments were sold during the quarter, expanding the sales pipeline for this new platform.

Concerns

Milestone revenue for 2026 is more front-end loaded, implying lower growth in the second half of the year.
The company anticipates burning approximately $15 million in cash for the full fiscal year 2026.

Guidance & targets

Category	Target	Timeline	Confidence
Total Revenue	$32M-$36M high materiality	FY26	High
GAAP Operating Expense	$84M-$88M medium materiality	FY26	High
Cash Operating Expense	$51M-$55M medium materiality	FY26	High
Year-end Cash and Cash Equivalents	$37M-$41M high materiality	FY26	High
Effective Tax Rate	~0% low materiality	FY26	High

Product announcements

Product	Type	Timeline	Details
OmniUltra Technology	milestone	late October and early November
Investor and Analyst Day	milestone	October 6th

Deals & partnerships

Enrosa Therapeutics New license agreement with a preclinical stage venture-funded biotech company developing selective pathogenic cytotoxic T-cell depleters using bispecific antibodies.

Enrosa Therapeutics is a preclinical stage venture-funded biotech company developing selective pathogenic cytotoxic T-cell depleters using bispecific antibodies, representing a good match with OmniAb's technology.

Argenix New license agreement with a global leader in immunology, known for innovation in R&D.

Argenix is a global leader with a strong heritage of innovative R&D, described as leading a new era of innovation in immunology, and is ramping up activity with OmniAb's technologies.

Risks & headwinds

Milestone revenue variability H2 FY26

Milestone revenue is more front-end loaded for 2026, implying lower growth in the second half.

Mitigation:Growing portfolio of partner programs and expected royalties to become a growing part of revenue streams.

Cash burn FY26

Burning about $15 million in cash for FY26.

Mitigation:Scalable infrastructure means operating expenses will not scale with revenue, allowing additional revenue to drop to the bottom line.

What to watch in Q3 FY26

Exploration sales cadence

Next quarter / Near term

Current 2 units sold in Q2 FY26

Target More consistent sales and revenue contribution

Why it matters

Indicates the ramp-up and market adoption of a new, diversified revenue stream for OmniAb.

Is that starting to tick up? And as far as the sales pipeline is concerned, how is that shaping up? And will that maybe be lumpy over the near term? But are you starting to see maybe a cadence where you could start to... to see more consistent sales there.

Find out whether OABI delivers this. Inve re-checks your case every morning.

Q&A highlights

What is the utilization of the Exploration instruments already in the ecosystem, how is the sales pipeline shaping up, and can we expect more consistent sales?

Management is very excited about Exploration's potential as a meaningful complement to the antibody business and its contribution to revenue growth. The platform has the potential to create diverse and durable revenue streams from instruments, consumables, software, and service, with more details to be shared at the upcoming Investor Day.

“we remain very excited about the exploration opportunity. In fact, the more we learn... the greater our conviction grows that this could really be a meaningful compliment to our antibody business.”

asked by Matthew Hewitt · answered by Matthew Foehr

2 min read 6 chapters

Detailed narrative

Partner Program Advancements

OmniAb's business model is designed for long-term, durable revenue streams, with programs derived from its discovery technologies consistently advancing into and through later-stage clinical development. This progression enhances visibility into future value from milestones and potential royalty generation, solidifying OmniAb's role as a key enabling technology licensing partner.

The company noted significant movement in later stages of development, with additional programs now in Phase 1, Phase 2, and Phase 3.

Exploration Platform Momentum

The proprietary high-throughput single B cell screening platform, Exploration, leverages machine learning and artificial intelligence. This platform offers multiple revenue streams, including instrument sales, proprietary single-use consumables, and annual software subscriptions. Two instruments were sold in Q2, and strong commercial interest continues to expand the sales pipeline, with early feedback highlighting rapid runtimes, ease of use, and overall robustness.

Clinical Pipeline Progress

At the end of Q2, OmniAb reported 34 active clinical programs and approved products utilizing its technologies, including four new clinical entrants in 2026. Notably, two programs, J&J's romantamig and Merck KGA's percentibarc-tocentican, advanced directly from Phase 1 to Phase 3 during Q2.

Boehringer Ingelheim's BI878 program is also progressing in Phase 2 for a MASH indication, highlighting significant movement in the later stages of development.

Chicken-Derived Technologies

OmniAb highlighted increasing clinical validation for its genetically engineered chicken antibody discovery technologies, OmniUltra and OmniDab, with six programs now in Phase I or Phase II. The evolutionary distance of chickens as a biological host allows for robust immune responses and diverse antibody repertoires against novel targets, opening new market opportunities and driving partner interest, especially for high-value targets like ion channels and GPCRs.

Innovation and AI/ML Integration

The company continues to expand its platform through ongoing innovation, leveraging its partner ecosystem to enhance technologies and workflows. The OmniDeep brand, a suite of in silico AI/ML tools, is integrated throughout OmniAb's technology stack. This platform utilizes proprietary data from transgenic animals and the Exploration platform to generate high-quality input data, driving efficiency and accelerating the pace of drug discovery, particularly for novel oncology targets.

Financial Performance and Efficiency

Q2 FY26 revenue saw a substantial year-over-year increase, primarily driven by higher milestone revenue. Despite this growth, OmniAb demonstrated operational efficiency, with R&D and G&A costs showing decreases from a true operating perspective. This efficiency contributed to an improved net loss for both the quarter and year-to-date, with management emphasizing that 35-40% of operating expense is non-cash, making cash operating expense a key performance measure.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.