Champions Oncology delivered a resilient Q2 2025, with revenue of $13.49 million, up 17% year over year, supported by continued strength in the core CRO services business and an improving margin profile. GAAP operating income was $0.73 million, and adjusted EBITDA stood at $1.11 million, underscoring ongoing profitability in a modestly capital-light model. Through the first half of 2025, revenue reached $27.6 million, with gross margins expanding to 48% on a H1 basis, driven by operational efficiency and a favorable product mix. The company confirmed a strategic pivot toward monetizing its unique multi-omic data asset via data licensing, signaling a potential new revenue stream that management expects to lift revenue, margins, and enterprise value going forward.
Management articulated a clear growth thesis centered on: (1) leveraging the industry-leading PDX bank and its expansive multi-omic dataset to support drug discovery and development; (2) monetizing data assets in an AI-enabled environment to accelerate data-driven customer value; and (3) advancing Corellia, Champions’ drug development subsidiary, while pursuing capital solutions to fund its development program. While near-term liquidity remains tight (current ratio ~0.75; cash balance of ~$2.75 million with no debt), the company maintains a positive trajectory with improving operating metrics and a stated FY2025 growth target of 10-15%. Investors should monitor the revenue mix shift toward data licensing, the cadence of receivables and payables as working capital normalizes, and the progress of Corellia's funding initiatives and related burn rate.