Champions Oncology Reports Record Quarterly Revenue of $17.0 Million Record Net Income of $4.5 Million
Rhea-AI Summary
Champions Oncology (Nasdaq:CSBR) reported record-breaking financial results for Q3 fiscal 2025. Total revenue increased 42% to $17.0 million, with net income reaching $4.5 million and adjusted EBITDA of $5.2 million.
The company achieved several key milestones, including signing their first data licensing deal worth up to $8.0 million and improving operational efficiency. Core services business grew 4%, while gross profit reached $10.4 million with a 61% margin. Year-to-date performance showed 23% revenue growth to $44.6 million.
Cost reduction initiatives proved successful, with total costs decreasing by 14.1% to $12.5 million compared to the previous year. The company maintains a strong financial position with $3.2 million cash on hand and no debt, while research services margin improved from 35% to 48% year-over-year.
Positive
- Record quarterly revenue of $17.0 million, up 42% YoY
- Strong net income of $4.5 million vs previous year loss
- Significant margin improvement to 61% from 35% YoY
- First data licensing deal worth up to $8.0 million
- Successful cost reduction leading to 14.1% decrease in operating expenses
- Debt-free balance sheet
Negative
- Reduced investment in R&D and subsidiary Corellia
- Ongoing funding constraints in pharma and biotech sectors
- Anticipated fluctuations in quarterly revenue warned by management
News Market Reaction 1 Alert
On the day this news was published, CSBR gained 10.00%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
HACKENSACK, NJ / ACCESS Newswire / March 11, 2025 / 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 third quarter of fiscal 2025, ended January 31, 2025.
Third Quarter and Recent Highlights:
Total revenue increased
42% to$17.0 million Gross profit of
$10.4 million ; gross margin of61% Net income of approximately
$4.5 million Adjusted EBITDA of
$5.2 million Signed first data licensing deal worth up to
$8.0 million Hired Matt Newman, Executive Vice President and General Manager, to lead and expand the development of Champions' data licensing platform
Year to Date Highlights:
Total revenue increased
23% to$44.6 million Gross profit of
$23.5 million ; gross margin of53% Net income of
$6.5 million Adjusted EBITDA of
$8.3 million
Ronnie Morris, CEO of Champions, commented, "Our third quarter was transformational, marked by our first major data licensing agreement-an important milestone toward monetizing our proprietary data platform." Added Morris, "despite ongoing funding constraints in the pharma and biotech sectors, we continue to drive strong performance in our core services business."
David Miller, CFO of Champions, added, "We delivered record breaking financial results this quarter, with revenue surpassing
Third Fiscal Quarter Financial Results
Total oncology revenue for the third quarter of fiscal 2025 was
For the third quarter of fiscal 2025, Champions reported income from operations of
Cost of oncology revenue was
Research and development expense for the three-months ended January 31, 2025 was
Net cash provided by operating activities was approximately
The Company ended the quarter with cash on hand of approximately
Year-to-Date Financial Results
Total oncology revenue for the nine-months ended January 31, 2025 was
For the nine-months ended January 31, 2025, Champions reported income from operations of
Cost of oncology revenue was
Research and development expense for the nine-months ended January 31, 2025 was
Conference Call Information:
The Company will host a conference call today at 4:30 p.m. EDT (1:30 p.m. PDT) to discuss its third quarter financial results. To participate in the call, please call 888-506-0062 (Domestic) or 973-528-0011 (International) and enter the access code 403045, or provide the verbal reference "Champions Oncology".
Full details of the Company's financial results will be available by or before March 17, 2025 in the Company's Form 10-Q at www.championsoncology.com.
* Non-GAAP Financial Information
This press release contains "Non-GAAP financial measures," which are measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP").
A further explanation and reconciliation of these Non-GAAP financial measures is included below and in the financial tables in this release.
The Company believes that the Non-GAAP financial measures presented facilitate an understanding of operating performance and provide a meaningful comparison of its results between periods. The Company's management uses Non-GAAP financial measures to, among other things, evaluate its ongoing operations in relation to historical results and for internal planning and forecasting purposes. Adjusted EBITDA and Adjusted EPS represent measures that we believe are customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures that we present. Our management also believes that these measures are useful in evaluating our core operating results. However, Adjusted EBITDA and Adjusted EPS are not measures of financial performance under accounting principles generally accepted in the United States of America and should not be considered an alternative to net income, operating income, or EPS as indicators of our operating performance or to net cash provided by operating activities as a measure of our liquidity. We believe the Company's Adjusted EBITDA and Adjusted EPS measures provide information that is directly comparable to that provided by other peer companies in our industry, but other companies may calculate Non-GAAP financial results differently, particularly related to nonrecurring, unusual items.
Adjusted EBITDA
Adjusted EBITDA represents net income (loss) excluding the effect of stock-based compensation and depreciation and amortization and may also exclude other items not indicative of our ongoing operating performance, when defined.
Adjusted Net Income (Loss) and Adjusted Earnings Per Share (EPS)
Adjusted net income (loss) (if denoted) and adjusted EPS exclude the effect of stock-based compensation and depreciation and amortization and may also exclude other items not indicative of our ongoing operating performance when defined.
About Champions Oncology, Inc.
Champions Oncology is a global preclinical and clinical research services provider that offers end-toend 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 Net Income (Loss) to Adjusted EBITDA - (Non-GAAP) (Unaudited)
| Three Months Ended January 31, |
|
| Nine Months Ended January 31, |
| |||||||||||
| 2025 |
|
| 2024 |
|
| 2025 |
|
| 2024 |
| |||||
Net income (loss) - GAAP |
| $ | 4,495 |
|
| $ | (2,530 | ) |
| $ | 6,536 |
|
| $ | (7,167 | ) |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
| 256 |
|
|
| 379 |
|
|
| 523 |
|
|
| 855 |
|
Depreciation and amortization |
|
| 398 |
|
|
| 481 |
|
|
| 1,246 |
|
|
| 1,408 |
|
Adjusted EBITDA - Non-GAAP |
| $ | 5,149 |
|
| $ | (1,670 | ) |
| $ | 8,305 |
|
| $ | (4,904 | ) |
Reconciliation of GAAP EPS to Non-GAAP EPS (Unaudited)
| Three Months Ended January 31, |
|
| Nine Months Ended January 31, |
| |||||||||||
| 2025 |
|
| 2024 |
|
| 2025 |
|
| 2024 |
| |||||
EPS - basic, GAAP |
| $ | 0.33 |
|
| $ | (0.19 | ) |
| $ | 0.48 |
|
| $ | (0.53 | ) |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of stock-based compensation on EPS |
|
| 0.02 |
|
|
| 0.03 |
|
|
| 0.04 |
|
|
| 0.06 |
|
Effect of depreciation and amortization on EPS |
|
| 0.03 |
|
|
| 0.04 |
|
|
| 0.09 |
|
|
| 0.10 |
|
Adjusted EPS - basic, Non-GAAP |
| $ | 0.38 |
|
| $ | (0.12 | ) |
| $ | 0.61 |
|
| $ | (0.37 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Three Months Ended January 31, |
|
| Nine Months Ended January 31, |
| ||||||||||
| 2025 |
|
| 2024 |
|
| 2025 |
|
| 2024 |
| |||||
EPS - diluted, GAAP |
| $ | 0.31 |
|
| $ | (0.19 | ) |
| $ | 0.46 |
|
| $ | (0.53 | ) |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of stock-based compensation on EPS |
|
| 0.02 |
|
|
| 0.03 |
|
|
| 0.04 |
|
|
| 0.06 |
|
Effect of depreciation and amortization on EPS |
|
| 0.03 |
|
|
| 0.04 |
|
|
| 0.09 |
|
|
| 0.10 |
|
Adjusted EPS - diluted, Non-GAAP |
| $ | 0.36 |
|
| $ | (0.12 | ) |
| $ | 0.59 |
|
| $ | (0.37 | ) |
Unaudited Condensed Consolidated Statements of Operations (unaudited)
| Three Months Ended January 31, |
|
| Nine Months Ended January 31, |
| |||||||||||
| 2025 |
|
| 2024 |
|
| 2025 |
|
| 2024 |
| |||||
Oncology revenue |
| $ | 17,039 |
|
| $ | 12,019 |
|
| $ | 44,589 |
|
| $ | 36,153 |
|
Cost of oncology revenue |
|
| 6,617 |
|
|
| 7,849 |
|
|
| 21,118 |
|
|
| 22,151 |
|
Research and development |
|
| 1,719 |
|
|
| 2,186 |
|
|
| 4,862 |
|
|
| 7,494 |
|
Sales and marketing |
|
| 1,806 |
|
|
| 1,797 |
|
|
| 5,236 |
|
|
| 5,288 |
|
General and administrative |
|
| 2,398 |
|
|
| 2,764 |
|
|
| 6,813 |
|
|
| 8,305 |
|
Income (loss) from operations |
|
| 4,499 |
|
|
| (2,577 | ) |
|
| 6,560 |
|
|
| (7,085 | ) |
Other income (expense) |
|
| 19 |
|
|
| 58 |
|
|
| 30 |
|
|
| (33 | ) |
Income (loss) before provision for income taxes |
|
| 4,518 |
|
|
| (2,519 | ) |
|
| 6,590 |
|
|
| (7,118 | ) |
Provision for income taxes |
|
| 23 |
|
|
| 11 |
|
|
| 54 |
|
|
| 49 |
|
Net income (loss) |
| $ | 4,495 |
|
| $ | (2,530 | ) |
| $ | 6,536 |
|
| $ | (7,167 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net income (loss) per common share outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
basic |
| $ | 0.33 |
|
| $ | (0.19 | ) |
| $ | 0.48 |
|
| $ | (0.53 | ) |
and diluted |
| $ | 0.31 |
|
| $ | (0.19 | ) |
| $ | 0.46 |
|
| $ | (0.53 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
basic |
|
| 13,700,627 |
|
|
| 13,593,758 |
|
|
| 13,620,686 |
|
|
| 13,538,480 |
|
and diluted |
|
| 14,364,904 |
|
|
| 13,593,758 |
|
|
| 14,132,712 |
|
|
| 13,538,480 |
|
Condensed Consolidated Balance Sheets
| January 31, 2025 |
|
| April 30, 2024 |
| |||
|
| (unaudited) |
|
|
|
| ||
Cash and cash equivalents |
| $ | 3,202 |
|
| $ | 2,618 |
|
Accounts receivable, net |
|
| 15,782 |
|
|
| 9,526 |
|
Other current assets |
|
| 713 |
|
|
| 1,495 |
|
Total current assets |
|
| 19,697 |
|
|
| 13,639 |
|
|
|
|
|
|
|
|
| |
Operating lease right-of-use assets, net |
|
| 5,370 |
|
|
| 6,252 |
|
Property and equipment, net |
|
| 5,040 |
|
|
| 5,721 |
|
Other long term assets |
|
| 185 |
|
|
| 185 |
|
Goodwill |
|
| 335 |
|
|
| 335 |
|
Total assets |
| $ | 30,627 |
|
| $ | 26,132 |
|
|
|
|
|
|
|
|
| |
Accounts payable and accrued liabilities |
| $ | 7,360 |
|
| $ | 7,960 |
|
Current portion of operating lease liabilities |
|
| 1,434 |
|
|
| 1,337 |
|
Other current liabilities |
|
| 154 |
|
|
| 150 |
|
Deferred revenue |
|
| 10,922 |
|
|
| 12,094 |
|
Total current liabilities |
|
| 19,870 |
|
|
| 21,541 |
|
|
|
|
|
|
|
|
| |
Non-current operating lease liabilities |
|
| 5,003 |
|
|
| 6,093 |
|
Other Non-current Liability |
|
| 285 |
|
|
| 401 |
|
Total liabilities |
|
| 25,158 |
|
|
| 28,035 |
|
|
|
|
|
|
|
|
| |
Stockholders' equity (deficit) |
|
| 5,469 |
|
|
| (1,903 | ) |
Total liabilities and stockholders' equity (deficit) |
| $ | 30,627 |
|
| $ | 26,132 |
|
Unaudited Condensed Consolidated Statements of Cash Flows (unaudited)
| Nine Months Ended January 31, |
| ||||||
| 2025 |
|
| 2024 |
| |||
Cash flows from operating activities: |
|
|
|
|
|
| ||
Net income (loss) |
| $ | 6,536 |
|
| $ | (7,167 | ) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations: |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
| 523 |
|
|
| 855 |
|
Operating lease right-of use assets |
|
| 881 |
|
|
| 782 |
|
Depreciation and amortization expense |
|
| 1,246 |
|
|
| 1,410 |
|
Loss on disposal of equipment |
|
| - |
|
|
| 81 |
|
Allowance for doubtful accounts and estimated credit losses |
|
| (320 | ) |
|
| 314 |
|
Changes in operating assets and liabilities |
|
| (7,920 | ) |
|
| (596 | ) |
Net cash provided by (used in) operating activities |
|
| 946 |
|
|
| (4,321 | ) |
|
|
|
|
|
|
|
| |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
| (564 | ) |
|
| (839 | ) |
Net cash used in investing activities: |
|
| (564 | ) |
|
| (839 | ) |
|
|
|
|
|
|
|
| |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Repurchases of common stock |
|
| - |
|
|
| (634 | ) |
Proceeds from the exercise of stock options |
|
| 314 |
|
|
| 252 |
|
Finance lease payments |
|
| (112 | ) |
|
| (108 | ) |
Net cash provided by (used in) financing activities: |
|
| 202 |
|
|
| (490 | ) |
|
|
|
|
|
|
|
| |
Net increase (decrease) in cash |
|
| 584 |
|
|
| (5,650 | ) |
Cash at beginning of period |
|
| 2,618 |
|
|
| 10,118 |
|
Cash at the end of period |
| $ | 3,202 |
|
| $ | 4,468 |
|
Contact: One University Plaza, Suite 307 Hackensack, NJ 07601 Tel: 551-206-8104
SOURCE: Champions Oncology, Inc.
View the original press release on ACCESS Newswire
FAQ
What was Champions Oncology's (CSBR) revenue growth in Q3 2025?
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What was CSBR's gross margin in Q3 2025?
How much did Champions Oncology (CSBR) reduce its operating expenses in Q3 2025?
What is Champions Oncology's (CSBR) current cash position and debt status?
