Champions Oncology reported a quarter (QQ2 2026) characterized by a negative gross profit driven by a high cost of revenue against an undisclosed quarterly revenue figure. Even so, the company posted a modest bottom-line improvement with operating income of $0.185 million and net income of $0.237 million (EPS $0.02). EBITDA stood at $0.185 million, underscoring that the quarter’s profitability was aided by non-operating income rather than core gross margin expansion.
Near-term liquidity remains solid on a cash balance of $8.52 million and a net cash position of approximately $(3.25) million after considering total debt of $5.27 million. The balance sheet shows a meaningful deferred revenue balance of $12.34 million and accounts receivable of $11.54 million, supporting a potential revenue recognition runway. However, operating cash flow was negative at $(1.74) million for the quarter, with free cash flow at $(1.98) million, signaling ongoing cash burn toward R&D and platform development activities. The company carries a cumulative negative retained earnings balance (~$(80.12) million), reflecting a long history of reinvestment and losses typical of advancing biotechnology platforms.
Looking forward, a meaningful uplift hinges on converting the sizable deferred revenue into realized revenue and expanding recurring revenue streams (notably Lumin Bioinformatics subscriptions and Translational Oncology Solutions), while continuing to manage operating costs. The absence of explicit quarterly revenue guidance requires investors to monitor the cadence of new customer onboarding, contract wins, and the rate at which deferred revenue converts to revenue over the next several quarters.