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.
Key Performance Indicators
Operating Income
Decreasing
185.00K
QoQ: 135.10% | YoY: -86.08%
Net Income
Decreasing
237.00K
QoQ: 150.86% | YoY: -81.95%
EPS
Decreasing
0.02
QoQ: 163.29% | YoY: -79.30%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: QQ2 2026 revenue not disclosed in the filing; trailing four-quarter revenue (as per fourQuarters data) is approximately $58.6 million (Q4 2024 to Q2 2026 window) based on disclosed quarters: Q4 2024–Q3 2025 accumulated revenues of roughly $14.061M, $13.489M, $17.039M, and $13.995M respectively.
Gross Profit: $(7.262) million for QQ2 2026; Gross Profit Margin: not disclosed (negative gross profit as reported).
EBITDA: $0.185 million; EBITDA Margin: not disclosed.
Operating Income: $0.185 million; Operating Margin: not disclosed.
Net Income: $0.237 million; Net Income Margin: not disclosed.
Cash Flow: Net income $0.236 million; Depreciation/Amortization $0 (reported as not applicable); Stock-based compensation $0.249 million; Change in working capital: accounts receivable $(2.078) million; accounts payables $1.311 million; other working capital impact $(2.577) million; Net cash from operating activities $(1.735) million; Capital expenditures $(0.242) million; Free cash flow $(1.978) million.
Balance Sheet Highlights: Cash and cash equivalents $8.516 million; Accounts receivable $11.539 million; Deferred revenue $12.338 million; Total current assets $21.332 million; Property, plant and equipment net $8.299 million; Goodwill $0.335 million; Total assets $30.162 million; Total current liabilities $22.141 million; Long-term debt $3.744 million; Total debt $5.269 million; Net debt position $(3.247) million; Total stockholders’ equity $4.170 million; Retained earnings $(80.121) million.
Liquidity Ratios: Current ratio roughly 0.96x (Current Assets $21.33M vs Current Liabilities $22.14M); Cash ratio approximately 0.39x; Quick ratio not separately disclosed.
Income Statement
Metric
Value
YoY Change
QoQ Change
Gross Profit
-7.26M
-203.91%
-221.03%
Operating Income
185.00K
-86.08%
135.10%
Net Income
237.00K
-81.95%
150.86%
EPS
0.02
-79.30%
163.29%
Key Financial Ratios
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