Executive Summary
Champions Oncology reported a challenging QQ1 2026 quarter with perpetual profitability headwinds contrasted by meaningful cash generation. Gross profit was negative at -$7.995 million driven by an undisclosed revenue figure that appears to render cost of revenue equal to revenue for the period, resulting in a -$0.527 million EBITDA and a net loss of -$0.466 million (EPS -$0.03). The lack of disclosed revenue in QQ1 2026 creates a meaningful ambiguity around the quarter’s top-line trajectory, but the company still produced positive operating cash flow of $0.60 million and free cash flow of $0.554 million, supporting a cash balance of $10.33 million at period end. The balance sheet reveals a sizable deferred revenue liability of $14.43 million, suggesting substantial revenue recognition potential across future periods and a capital-light operational model that can sustain near-term liquidity even as profitability remains under pressure.
Looking at the trailing twelve months through the prior disclosed quarters, Champions has demonstrated more robust top-line activity in late 2024 through 2025 (e.g., Q3 2025 revenue of $17.04 million with net income of $4.50 million and EPS of $0.33), implying a rebound in operating performance when revenue is recognized. The QQ1 2026 results imply a structural shift or timing issue in revenue recognition rather than an immediate deterioration in underlying demand, given the company’s cash generation and modest debt burden. Investors should monitor when and how the deferred revenue translates into realized revenue, as well as any changes in gross margins that could affect profitability going forward.
Key Performance Indicators
QoQ: -111.71% | YoY:-421.34%
QoQ: -110.37% | YoY:-327.52%
QoQ: -109.09% | YoY:-275.00%
Key Insights
Revenue: Not disclosed for QQ1 2026 (reported as null). Gross Profit: -$7.995 million; Gross Profit Margin: N/A; YoY gross profit change: -218.43%; QoQ change: -176.71%.
Operating Income: -$0.527 million; YoY change: -421.34%; QoQ change: -111.71%.
Net Income: -$0.466 million; YoY change: -327.52%; QoQ change: -110.37%.
EPS: -$0.03; YoY change: -275.00%; QoQ change: -109.09%.
EBITDA: -$0.527 million (as reported); Net Cash Provided by Operating Activities: $0.60 million; Free Cash Flow: $0.554 m...
Financial Highlights
Revenue: Not disclosed for QQ1 2026 (reported as null). Gross Profit: -$7.995 million; Gross Profit Margin: N/A; YoY gross profit change: -218.43%; QoQ change: -176.71%.
Operating Income: -$0.527 million; YoY change: -421.34%; QoQ change: -111.71%.
Net Income: -$0.466 million; YoY change: -327.52%; QoQ change: -110.37%.
EPS: -$0.03; YoY change: -275.00%; QoQ change: -109.09%.
EBITDA: -$0.527 million (as reported); Net Cash Provided by Operating Activities: $0.60 million; Free Cash Flow: $0.554 million.
Cash, Equivalents & Short-Term Investments: $10.33 million at period end.
Total Assets: $30.546 million; Total Liabilities: $27.008 million; Total Stockholders’ Equity: $3.509 million.
Current Ratio: 0.93x; Quick Ratio: ~0.87x; Deferred Revenue (current): $14.43 million; Debt: $5.75 million total; Net Debt: -$4.58 million (net cash position).
Trailing four-quarter revenue (approximate, based on disclosed quarters): ~$58.6 million; trailing gross profit around ~$31 million; trailing net income modest in late 2024 to 2025 quarters, with a recent quarter showing a net loss alongside a positive operating cash flow.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Gross Profit |
-8.00M |
-218.43% |
-176.71% |
| Operating Income |
-527.00K |
-421.34% |
-111.71% |
| Net Income |
-466.00K |
-327.52% |
-110.37% |
| EPS |
-0.03 |
-275.00% |
-109.09% |
Management Commentary
No earnings transcript data provided for QQ1 2026 in the supplied material.
Forward Guidance
There is no formal forward guidance disclosed in the provided data for QQ1 2026. Given the substantial deferred revenue liability and the cash-flow strength despite a quarterly gross loss, the near-term focus appears to be on revenue recognition timing and cost optimization. Management commentary (when available) would likely address: 1) monetization of Lumin Bioinformatics subscriptions and Translational Oncology Solutions, 2) expansion of Tumorgraft platform services with pharmaceutical partners, 3) cadence of revenue recognition from deferred revenue streams, and 4) any steps to restore gross margins. Our assessment is that visibility hinges on revenue recognition timing and the company’s ability to convert deferred revenue into realized revenue without a material uptick in cost of goods sold.