Executive Summary
Champions Oncology reported a solid start to FY2025 with Q1 QQ1 2025 revenue of $14.061 million, up 11.9% year over year, supported by ongoing operational improvements and a higher revenue conversion rate. Gross margin expanded to 49.7% (approx. 50%), as cost of sales declined to $7.072 million from $7.5 million a year earlier, underscoring efficiency gains in service delivery. Net income reached $1.313 million with GAAP operating income of $1.329 million and EBITDA of $1.778 million; adjusted EBITDA was $2.0 million, marking a positive earnings trajectory versus prior-year losses. Management characterized the quarter as a continuation of a turnaround that began in the prior year, aided by scalable platforms (PDX bank, in vivo/ex vivo platforms) and a renewed emphasis on cost discipline.
Key Performance Indicators
QoQ: 710.37% | YoY:152.08%
QoQ: 1 304.59% | YoY:151.17%
QoQ: 1 307.50% | YoY:150.84%
Key Insights
Revenue: $14.061 million; YoY +11.94%; QoQ +0.43%. GrossProfit: $6.989 million; GrossMargin = 49.7%; YoY +43.31%; QoQ +3.53%. OperatingIncome: $1.329 million; Margin = 9.45%; YoY +152.08%; QoQ +710.37%. NetIncome: $1.313 million; NetMargin = 9.34%; YoY +151.17%; QoQ +1304.59%. EPS: $0.0966; Diluted $0.0935; YoY +150.84%; QoQ +1307.50%. EBITDA: $1.778 million; EBITDA Margin = 12.64%. Adjusted EBITDA: $2.0 million (vs. prior-year adjusted loss). CostOfSales: $7.072 million; R&D: $1.454 ...
Financial Highlights
Revenue: $14.061 million; YoY +11.94%; QoQ +0.43%. GrossProfit: $6.989 million; GrossMargin = 49.7%; YoY +43.31%; QoQ +3.53%. OperatingIncome: $1.329 million; Margin = 9.45%; YoY +152.08%; QoQ +710.37%. NetIncome: $1.313 million; NetMargin = 9.34%; YoY +151.17%; QoQ +1304.59%. EPS: $0.0966; Diluted $0.0935; YoY +150.84%; QoQ +1307.50%. EBITDA: $1.778 million; EBITDA Margin = 12.64%. Adjusted EBITDA: $2.0 million (vs. prior-year adjusted loss). CostOfSales: $7.072 million; R&D: $1.454 million; SG&A (Selling, General & Administrative): $4.206 million; R&D decline vs year-ago period (~$1.3 million reduction). OperatingExpenses: $5.66 million; Depreciation & Amortization: $0.449 million. CashFlow: Operating cash flow $0.311 million; Free cash flow $0.311 million. Balance Sheet: Cash and equivalents $2.89 million; Total Debt $7.107 million; NetDebt $4.215 million; TotalAssets $24.933 million; TotalLiabilities $25.265 million; Stockholders’ Equity = -$0.332 million. Liquidity: CurrentRatio 0.688; QuickRatio 0.688; CashRatio 0.151; DSO ~57.8 days; CCC = -8.81 days.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
14.06M |
11.94% |
0.43% |
| Gross Profit |
6.99M |
43.31% |
3.53% |
| Operating Income |
1.33M |
152.08% |
710.37% |
| Net Income |
1.31M |
151.17% |
1 304.59% |
| EPS |
0.10 |
150.84% |
1 307.50% |
Key Financial Ratios
operatingProfitMargin
9.45%
operatingCashFlowPerShare
$0.02
freeCashFlowPerShare
$0.02
Management Commentary
Management commentary and key themes from the earnings call: - Turnaround momentum continued into FY2025: “the positive momentum which began last quarter has continued. We have begun the year with another good revenue quarter, in excess of $14 million, improved operational efficiency and scalability, all leading to expanded profitability” (Ronnie Morris, CEO). - Market environment improving but not back to pre-2022 norms: “the funding environment has gotten a little bit better” with tighter conditions still in the small biotech sector; larger pharma maintains budgets and continues work in preclinical services, particularly using Champions’ PDX bank. - Booking and revenue conversion improving; cancellations down: “our revenue is converting better and as a result of our cancellations being down as well” (Ronnie Morris). - Strategic focus on Corellia and cost discipline: “we are actively engaged in discussions to out-license several of our programs” and continuing cost optimization to preserve development targets while pursuing licensing opportunities. - Regulatory and policy context: BIOSECURE Act discussion presented as potential tailwind through competitive positioning. - Outlook tone: management cautioned about volatility in near term but expects long‑term margins above 50% with revenue growth; mid-December update anticipated for Q2 results (Ronnie Morris; David Miller).
“The positive momentum which began last quarter has continued. We have begun the year with another good revenue quarter, in excess of $14 million, improved operational efficiency and scalability, all leading to expanded profitability.”
— Ronnie Morris
“Our first quarter revenue was $14.1 million, an increase of 12% from the first quarter of 2024.”
— David Miller
Forward Guidance
Management guidance centers on a continued turnaround with some volatility in quarterly revenue and EBITDA. They anticipate gross margins stabilizing above 50% as revenue grows and costs normalize. Specific forward-looking elements include: - Revenues “in excess of $14 million” already achieved in Q1; - Adjusted EBITDA around $2 million in Q1, with volatility expected across the year; - A pathway to margins north of 50% in the long run as cost structures stabilize and scale accelerates; - Ongoing emphasis on Corellia program out-licensing to supplement growth and reduce net spend while preserving development programs; - A plan to monitor cash flow closely, with stabilization of cash and working capital driving a gradual cash balance increase. Key factors investors should monitor: bookings growth and revenue visibility, the pace and success of licensing discussions for Corellia assets, cadence of operating cash flow, changes in working capital (especially deferred revenue), and the evolving macro funding environment for biotech services.