Champions Oncology (CSBR) Q3 2026 earnings summary

Executive summary

• Achieved record study service revenue of $16.6 million in Q3 FY2026, up 32% year-over-year, driven by strong execution and backlog conversion, despite a modest total revenue decline due to the absence of a $4.5 million data license deal.

• Adjusted EBITDA was $574,000 for Q3 FY2026, marking the third consecutive quarter of positive adjusted EBITDA, while net loss for Q3 FY2026 was $279,000 compared to net income of $4.5 million in Q3 FY2025.

• Early momentum in the data business with new deals closed and additional revenue expected in Q4, alongside continued investment in data platform and discovery therapeutic subsidiary.

• Cost of oncology revenue and operating expenses rose significantly, mainly due to outsourced lab services and compensation, impacting profitability.

• Year-to-date revenue for the nine months ended January 31, 2026, was $45.6 million, up 2.2% year-over-year.

Financial highlights

• Total/Oncology revenue for the quarter was $16.6 million, down 2.8% from $17 million in the prior year period, with core study revenue up 32% year-over-year.

• No data revenue recognized this quarter versus $4.5 million in the prior year period.

• Cost of oncology revenue increased 33.5% year-over-year to $8.8 million, mainly from higher outsourced lab service costs.

• Gross margin was 47%, down from 61% last year, impacted by outsourced laboratory costs and absence of high-margin data revenue.

• Cash on hand at quarter-end was $7.1 million, with no debt.

Outlook and guidance

• Management expects annual revenue growth and full-year positive adjusted EBITDA.

• Margins are expected to improve as outsourced radiolabeling work transitions in-house.

• Cash on hand and expected cash flows are believed sufficient to fund operations through at least March 2027.

• Continued investment in data platform, commercial, and discovery therapeutics initiatives is planned.

• Investments in data and Corellia expected to drive meaningful growth in fiscal 2027 and acceleration in fiscal 2028.