Champions Oncology Inc (CSBR) Q3 2025 Earnings Report

- Q3 2025 Revenue: $17.04M (+41.8% YoY; QoQ not disclosed for the quarter).
- Gross profit: $10.42M; Gross margin: 61.17% (vs. 40% YoY gross margin through 9M 2024).
- R&D: $1.72M (-21% YoY).
- SG&A: $4.20M; Total operating expenses: $5.92M.
- Operating income: $4.50M; Operating margin: 26.40%.
- EBITDA: $4.92M; EBITDA margin: 28.85%.
- Adjusted EBITDA (ex‑stock comp/depr): $5.20M (record).
- Net income: $4.50M; Net income margin: 26.38%; EPS: $0.33 (GAAP), $0.31 (diluted).
- YTD (9M) revenue: $45.0M (+22% YoY); Gross margin YTD: 53%; Adj. EBITDA YTD: $8.3M;
- Cash: $3.20M; Debt: $6.44M total; Net debt: $3.24M. Current ratio: 0.99.
- Data licensing: first onetime data deal closed; $4.50M data revenue contribution in the quarter.
- Guidance: Full-year revenue growth guidance reaffirmed at 10-15%.
- Commentary: Management emphasizes a cautiously optimistic view on a rebound in biotech R&D budgets and continued demand for deep multiomic data, aided by AI insights.

- Strategy and data leadership: Ronnie Morris highlighted that Q3 marked a transformative quarter with a record revenue run rate and the inaugural data licensing deal, underscoring the strategic pivot toward a data-centric platform. “Q3 marked a transformative quarter for Champions Oncology, underscored by our record revenue of $17 million and the successful closure of our inaugural data deal.”
- Data platform traction and AI tailwinds: Morris noted the rising demand for deep multiomic data driven by AI and ML workflows, signaling a durable data asset with broader discovery potential. “With the rise of AI which can extract deeper insights from the biological data, the demand for our data set has notably increased in both breadth and depth.”
- Financial performance and discipline: CFO David Miller detailed the margin expansion, cost discipline, and the breakout of data revenue. “Total cost of sales was $6.6 million… gross margin for the quarter was 61%, lifted by the high margin data revenue.” He also emphasized that R&D declined meaningfully while operating expenses were managed.
- Data deal mechanics and pipeline: The licensing deal was a “portion of our data” and a one-time fee, with multiple potential partners in the pipeline. Morris commented, “the licensing deal that we signed was for a portion of our data and it was a one-time fee. And in terms of the pipeline, we are actively talking to multiple partners.”
- Corellia and capital raising: Management discussed Corellia as a separate entity and indicated ongoing capital-raising efforts to support Phase I/II programs, with Champions retaining a future stake as an asset.
- Market environment and volatility: Executives acknowledged a tight biotech environment with potential volatility in near-term demand, yet remained cautiously optimistic about long-term growth. “While we anticipate short term volatility in research service revenue, we remain confident in our long term growth trajectory.”

In the near term, CSBR presents a cautious but constructive investment thesis. The QQ3 2025 quarter delivered a rare combination of a record revenue beat, margin expansion, and the formal entry into a data licensing business, which has the potential to become a meaningful, high-margin revenue stream as the data platform matures. The reaffirmed 10-15% annual revenue growth guidance provides a stabilizing anchor for investors, but the absence of a clear, scalable revenue forecast for data licensing implies that the stock remains sensitive to deal cadence and macro biotech funding cycles. The company’s balance sheet shows modest leverage with net debt around $3.24M, a cash position of $3.20M, and ongoing capital-raising activities for Corellia that could unlock additional shareholder value if monetized effectively. The key catalysts to monitor are: (i) additional data licensing deals and their structure (one-time vs. recurring); (ii) the pace and outcome of Corellia financing; (iii) the deployment of AI to enhance core service profitability and to widen data-driven pharma partnerships; and (iv) the realization of biomarker and clinical biomarker opportunities from the data assets. On balance, if Champions can convert pipeline opportunities into multi-deal data licensing agreements and sustain margin expansion, the stock could re-rate on both absolute profitability and data asset value. However, given the early-stage nature of the data business, investors should expect intermittent volatility and remain mindful of the biotech funding backdrop.