Champions Oncology Reports Quarterly Revenue of $13.5 Million Adjusted EBITDA of $1.1 Million
Rhea-AI Summary
Champions Oncology (NASDAQ:CSBR) reported strong Q2 fiscal 2025 results with revenue increasing 17% to $13.5 million and adjusted EBITDA of $1.1 million. The company achieved net income of $730,000 and maintained a gross profit margin of 45%. First half 2025 performance showed 14% revenue growth to $27.6 million with net income of $2.1 million.
Total costs decreased by $771,000 (5.7%) compared to Q2 fiscal 2024. The company implemented operational improvements and efficiencies, leading to increased revenue conversion. Management projects annual revenue growth of 10-15%, supported by core business strength and new data platform revenue contributions. The company ended the quarter with $2.8 million cash and no debt.
Positive
- Revenue increased 17% YoY to $13.5 million in Q2 FY2025
- Achieved net income of $730,000, compared to previous year loss
- Adjusted EBITDA improved to $1.1 million from -$1.4 million YoY
- Operating costs reduced by $771,000 (5.7%)
- Gross profit margin improved to 45% from 43% YoY
- Company maintains debt-free status
Negative
- Cash position relatively low at $2.8 million
- Net cash used in operating activities was $283,000
- Increased mice and lab costs impacting margins
- Research and development spending decreased by 32.8%
News Market Reaction
On the day this news was published, CSBR declined 11.64%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
HACKENSACK, NJ / ACCESSWIRE / December 11, 2024 / Champions Oncology, Inc. (Nasdaq:CSBR), a global preclinical and clinical research services provider that offers end-to-end oncology solutions, today announced its financial results for its second quarter of fiscal 2025, ended October 31, 2024.
Second Quarter and Recent Highlights:
Total revenue increased
17% to$13.5 million Gross profit of
$6.1 million ; margin of45% Net income of approximately
$730,000 Adjusted EBITDA of
$1.1 million Development of new data revenue stream
First Half 2025 Highlights:
Total revenue increased
14% to$27.6 million Gross profit of
$13.1 million ; margin of47% Net income of
$2.1 million Adjusted EBITDA of
$3.2 million
Ronnie Morris, CEO of Champions, commented, "Our second quarter's performance solidified our confidence in the Company's turnaround that we've been discussing the last several quarters. We remain cautiously optimistic that the pharma and biotech environment is improving which will continue to contribute to our long-term growth." Morris added, "In addition to our core business, we made significant strides in monetizing our data platform, establishing an additional revenue stream that can be transformative for the Company."
David Miller, CFO of Champions, added, "We continued to deliver strong financial results in our second quarter as revenue increased
Second Fiscal Quarter Financial Results
Total revenue for the second quarter of fiscal 2025 was
For the second quarter of fiscal 2025, Champions reported income from operations of
Cost of oncology services was
Research and development expense for the three-months ended October 31, 2024 was
Net cash used in operating activities was approximately
The Company ended the quarter with cash on hand of approximately
Year-to-Date Financial Results
Total revenue for the first half of fiscal 2025 was
For the first half of fiscal 2025, Champions reported income from operations of
Cost of oncology services was
Research and development expense for the six-months ended October 31, 2024 was
Conference Call Information:
The Company will host a conference call today at 4:30 p.m. EST (1:30 p.m. PST) to discuss its second quarter financial results. To participate in the call, please call 888-506-0062 (Domestic) or 973-528-0011 (International) and enter the access code 710610, or provide the verbal reference "Champions Oncology".
Full details of the Company's financial results will be available by or before December 16, 2024 in the Company's Form 10-Q at www.championsoncology.com.
* Non-GAAP Financial Information
See the attached Reconciliation of GAAP net income (loss) to Non-GAAP net income (loss) for an explanation of the amounts excluded to arrive at Non-GAAP net income (loss) and related Non-GAAP income (loss) per share amounts for the three and six months ended October 31, 2024 and 2023. Non-GAAP financial measures provide investors and management with supplemental measures of operating performance and trends that facilitate comparisons between periods before and after certain items that would not otherwise be apparent on a GAAP basis. Certain unusual or non-recurring items that management does not believe affect the Company's basic operations do not meet the GAAP definition of unusual or non-recurring items. Non-GAAP net income (loss) and Non-GAAP income (loss) per share are not, and should not, be viewed as a substitute for similar GAAP items. Champions defines Non-GAAP dilutive income (loss) per share amounts as Non-GAAP net income (loss) divided by the weighted average number of diluted shares outstanding. Champions' definition of Non-GAAP net income (loss) and Non-GAAP diluted income (loss) per share may differ from similarly named measures used by other companies and may not be applicable for the current reporting period.
About Champions Oncology, Inc.
Champions Oncology is a global preclinical and clinical research services provider that offers end-to-end oncology R&D solutions to biopharma organizations. With the largest and most annotated bank of clinically relevant patient-derived xenograft (PDX) and primary hematological malignancy models, Champions delivers innovative highest-quality data through proprietary in vivo and ex vivo platforms. Through its large portfolio of cutting-edge bioanalytical platforms, groundbreaking data platform and analytics, and scientific excellence, Champions enables the advancement of preclinical and clinical oncology drug discovery and development programs worldwide. For more information, please visit www.ChampionsOncology.com.
This press release may contain "forward-looking statements" (within the meaning of the Private Securities Litigation Act of 1995) that inherently involve risk and uncertainties. Champions Oncology generally uses words such as "believe," "may," "could," "will," "intend," "expect," "anticipate," "plan," and similar expressions to identify forward-looking statements. One should not place undue reliance on these forward-looking statements. The Company's actual results could differ materially from those anticipated in the forward-looking statements for many unforeseen factors. See Champions Oncology's Form 10-K for the fiscal year ended April 30, 2024 for a discussion of such risks, uncertainties and other factors. Although the Company believes the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and Champions Oncology's future results, levels of activity, performance or achievements may not meet these expectations. The Company does not intend to update any of the forward-looking statements after the date of this press release to conform these statements to actual results or to changes in Champions Oncology's expectations, except as required by law.
Champions Oncology, Inc.
(Dollars in thousands)
Reconciliation of GAAP to Non-GAAP Net Income (Loss) (Unaudited)
|
| Three Months Ended October 31, |
|
| Six Months Ended October 31, |
| ||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| |||||
Net income (loss) - GAAP |
| $ | 728 |
|
| $ | (2,071 | ) |
| $ | 2,041 |
|
| $ | (4,637 | ) |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
| 9 |
|
|
| 53 |
|
|
| 267 |
|
|
| 476 |
|
Net income (loss) - Non-GAAP |
| $ | 737 |
|
| $ | (2,018 | ) |
| $ | 2,308 |
|
| $ | (4,161 | ) |
Reconciliation of GAAP EPS to Non-GAAP EPS (Unaudited)
| Three Months Ended October 31, |
|
| Six Months Ended October 31, |
| |||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| |||||
EPS - GAAP, basic |
| $ | 0.05 |
|
| $ | (0.15 | ) |
| $ | 0.15 |
|
| $ | (0.34 | ) |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of stock-based compensation on EPS |
|
| - |
|
|
| - |
|
|
| 0.02 |
|
|
| 0.04 |
|
EPS - Non-GAAP, basic |
| $ | 0.05 |
|
| $ | (0.15 | ) |
| $ | 0.17 |
|
| $ | (0.30 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Three Months Ended October 31, |
|
| Six Months Ended October 31, |
| |||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| |||||
EPS - GAAP, diluted |
| $ | 0.05 |
|
| $ | (0.15 | ) |
| $ | 0.15 |
|
| $ | (0.34 | ) |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of stock-based compensation on EPS |
|
| - |
|
|
| - |
|
|
| 0.02 |
|
|
| 0.04 |
|
EPS - Non-GAAP, diluted |
| $ | 0.05 |
|
| $ | (0.15 | ) |
| $ | 0.17 |
|
| $ | (0.30 | ) |
Unaudited Condensed Consolidated Statements of Operations (unaudited)
| Three Months Ended October 31, |
|
| Six Months Ended October 31, |
| |||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| |||||
Oncology services revenue |
| $ | 13,489 |
|
| $ | 11,573 |
|
| $ | 27,550 |
|
| $ | 24,134 |
|
Cost of oncology services |
|
| 7,428 |
|
|
| 6,618 |
|
|
| 14,500 |
|
|
| 14,302 |
|
Research and development |
|
| 1,689 |
|
|
| 2,515 |
|
|
| 3,143 |
|
|
| 5,308 |
|
Sales and marketing |
|
| 1,751 |
|
|
| 1,795 |
|
|
| 3,430 |
|
|
| 3,491 |
|
General and administrative |
|
| 1,889 |
|
|
| 2,600 |
|
|
| 4,416 |
|
|
| 5,540 |
|
Income (loss) from operations |
|
| 732 |
|
|
| (1,955 | ) |
|
| 2,061 |
|
|
| (4,507 | ) |
Other income (expense) |
|
| 7 |
|
|
| (105 | ) |
|
| 11 |
|
|
| (91 | ) |
Income (loss) before provision for income taxes |
|
| 739 |
|
|
| (2,060 | ) |
|
| 2,072 |
|
|
| (4,598 | ) |
Provision for income taxes |
|
| 11 |
|
|
| 11 |
|
|
| 31 |
|
|
| 39 |
|
Net income (loss) |
| $ | 728 |
|
| $ | (2,071 | ) |
| $ | 2,041 |
|
| $ | (4,637 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net income (loss) per common share outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
basic |
| $ | 0.05 |
|
| $ | (0.15 | ) |
| $ | 0.15 |
|
| $ | (0.34 | ) |
and diluted |
| $ | 0.05 |
|
| $ | (0.15 | ) |
| $ | 0.15 |
|
| $ | (0.34 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
basic |
|
| 13,593,766 |
|
|
| 13,497,061 |
|
|
| 13,593,766 |
|
|
| 13,529,629 |
|
and diluted |
|
| 13,969,967 |
|
|
| 13,497,061 |
|
|
| 14,006,173 |
|
|
| 13,529,629 |
|
Condensed Consolidated Balance Sheets
| October 31, |
|
| April 30, |
| |||
|
| (unaudited) |
|
|
|
| ||
Cash and cash equivalents |
| $ | 2,754 |
|
| $ | 2,618 |
|
Accounts receivable, net |
|
| 10,470 |
|
|
| 9,526 |
|
Other current assets |
|
| 860 |
|
|
| 1,495 |
|
Total current assets |
|
| 14,084 |
|
|
| 13,639 |
|
|
|
|
|
|
|
|
| |
Operating lease right-of-use assets, net |
|
| 5,669 |
|
|
| 6,252 |
|
Property and equipment, net |
|
| 4,967 |
|
|
| 5,721 |
|
Other long term assets |
|
| 185 |
|
|
| 185 |
|
Goodwill |
|
| 335 |
|
|
| 335 |
|
Total assets |
| $ | 25,240 |
|
| $ | 26,132 |
|
|
|
|
|
|
|
|
| |
Accounts payable and accrued liabilities |
| $ | 7,089 |
|
| $ | 7,960 |
|
Current portion of operating lease liabilities |
|
| 1,401 |
|
|
| 1,337 |
|
Other current liabilities |
|
| 151 |
|
|
| 150 |
|
Deferred revenue |
|
| 10,220 |
|
|
| 12,094 |
|
Total current liabilities |
|
| 18,861 |
|
|
| 21,541 |
|
|
|
|
|
|
|
|
| |
Non-current operating lease liabilities |
|
| 5,374 |
|
|
| 6,093 |
|
Other Non-current Liability |
|
| 324 |
|
|
| 401 |
|
Total liabilities |
|
| 24,559 |
|
|
| 28,035 |
|
|
|
|
|
|
|
|
| |
Stockholders' equity (deficit) |
|
| 681 |
|
|
| (1,903 | ) |
Total liabilities and stockholders' equity (deficit) |
| $ | 25,240 |
|
| $ | 26,132 |
|
Unaudited Condensed Consolidated Statements of Cash Flows (unaudited)
| Six Months Ended October 31, |
| ||||||
| 2024 |
|
| 2023 |
| |||
Cash flows from operating activities: |
|
|
|
|
|
| ||
Net income (loss) |
| $ | 2,041 |
|
| $ | (4,637 | ) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations: |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
| 267 |
|
|
| 476 |
|
Operating lease right-of use assets |
|
| 583 |
|
|
| 502 |
|
Depreciation and amortization expense |
|
| 848 |
|
|
| 929 |
|
Loss on disposal of equipment |
|
| - |
|
|
| 65 |
|
Allowance for doubtful accounts and estimated credit losses |
|
| (280 | ) |
|
| 234 |
|
Changes in operating assets and liabilities |
|
| (3,431 | ) |
|
| (971 | ) |
Net cash provided by (used in) operating activities |
|
| 28 |
|
|
| (3,402 | ) |
|
|
|
|
|
|
|
| |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
| (94 | ) |
|
| (747 | ) |
Net cash used in investing activities: |
|
| (94 | ) |
|
| (747 | ) |
|
|
|
|
|
|
|
| |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Repurchases of common stock |
|
| - |
|
|
| (634 | ) |
Proceeds from the exercise of stock options |
|
| 276 |
|
|
| 252 |
|
Finance lease payments |
|
| (74 | ) |
|
| (74 | ) |
Net cash provided by (used in) financing activities: |
|
| 202 |
|
|
| (456 | ) |
|
|
|
|
|
|
|
| |
Net increase (decrease) in cash |
|
| 136 |
|
|
| (4,605 | ) |
Cash at beginning of period |
|
| 2,618 |
|
|
| 10,118 |
|
Cash at the end of period |
| $ | 2,754 |
|
| $ | 5,513 |
|
SOURCE: Champions Oncology, Inc.
View the original press release on accesswire.com
FAQ
What was Champions Oncology's (CSBR) revenue growth in Q2 2025?
How much did CSBR reduce its operating costs in Q2 2025?
What is CSBR's projected revenue growth for fiscal 2025?
How much cash does CSBR have on hand as of Q2 2025?
What was CSBR's adjusted EBITDA for Q2 2025?
