In the coming quarter, we expect to introduce a new revenue stream through data-licensing, which will have a significant positive impact on our revenue, margins and enterprise value.
— Ronnie Morris
03Detailed Report
CSBR
Company CSBR
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 17, 2026
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Executive Summary
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.
Key Performance Indicators
Revenue
Increasing
13.49M
QoQ: -4.07% | YoY: 16.56%
Gross Profit
Increasing
6.42M
47.57% margin
QoQ: -8.18% | YoY: 29.51%
Operating Income
Increasing
732.00K
QoQ: -44.92% | YoY: 137.44%
Net Income
Increasing
728.00K
QoQ: -44.55% | YoY: 135.15%
EPS
Increasing
0.05
QoQ: -44.51% | YoY: 135.73%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and margin trajectory:
- Q2 2025 revenue: $13.489 million, up 16.56% YoY and down 4.07% QoQ. The quarterly revenue implies a continued rebound from late-2024, aided by stronger bookings and expanding data-driven demand.
- Gross profit: $6.417 million; gross margin 47.57% for Q2 2025, up from 43% YoY, reflecting better cost control and favorable product mix.
- Operating income: $0.732 million; operating margin approximately 5.43%. YoY operating income surged due to stronger top-line and cost discipline, while QoQ profitability remained positive.
- EBITDA: $1.131 million; EBITDARatio ~8.38%. Adjusted EBITDA for the quarter was $1.11 million (excluding non-cash items), versus a year-ago adjusted loss, signaling a continuing cash-flow-friendly trajectory.
- Net income and earnings per share: Net income $0.728 million; net margin ~5.40%. Basic EPS $0.0536 and diluted EPS $0.0519; weighted-average shares outstanding: 13.5938 million (basic) and 14.0169 million (diluted).
- First-half performance: H1 2025 revenue of $27.6 million, up 14% YoY; gross margin improved to 48% from 41% in H1 2024; total operating expenses declined by roughly $3.1 million, driving a $3.2 million adjusted EBITDA in H1 2025.
- Cash and liquidity: End of quarter cash of $2.754 million with no debt; net cash used in operating activities was $0.283 million; free cash flow was negative at $(0.377) million. Net debt stood at $(4.021) million, with total debt of $6.775 million and cash balance supporting near-term liquidity needs. Current ratio 0.747 and cash ratio 0.146 indicate liquidity headwinds, but balance sheet improvements and a data-revenue ramp could improve liquidity in coming quarters.
- Deferred revenue: $10.222 million (non-current) and other current liabilities of $3.787 million reflect a substantial deferred revenue component that can provide visibility into future revenue and cash generation as performance obligations are satisfied.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
13.49M
16.56%
-4.07%
Gross Profit
6.42M
29.51%
-8.18%
Operating Income
732.00K
137.44%
-44.92%
Net Income
728.00K
135.15%
-44.55%
EPS
0.05
135.73%
-44.51%
Key Financial Ratios
Gross Profit Margin
Good
47.60%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Fair
5.43%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
5.40%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
2.88%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
1.07%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.75
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
9.95
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Fair Value
18.25x
P/E ratio in line with market averages
Price to Book
High Premium
78.05x
Very high premium suggests asset-light business model or lofty expectations
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