first quarter of fiscal 2027
Filed Sep 10, 2026Revenue of $15.2 Million; Oncology services margin improves to 51%; Adjusted EBITDA increases to $671,000
Revenue increased 8.8%, oncology services margin improved to 51% from 43%, and Adjusted EBITDA increased to $671,000 from $59,000. The company remained loss-making on a GAAP basis and used cash in operations while continuing to increase commercial and growth-initiative spending.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Oncology revenueGAAP | $15.23M | – | 8.8% |
| Cost of oncology revenueGAAP | $7.53M | – | decrease of $461,000, or 5.8% |
| Oncology services profitnon-GAAP | 7,698 | – | – |
| Oncology services marginnon-GAAP | 51 % | – | – |
| Total costs and operating expensesGAAP | $15.6M | – | increase of $1.1 million or 7.7% |
| Research and developmentGAAP | $2.34M | – | increase of $262,000 or 12.6% |
| Sales and marketingGAAP | $3.09M | – | increase of $1.2 million, or 66.6% |
| General and administrativeGAAP | $2.67M | – | increase of $103,000, or 4.0% |
| Loss from operationsGAAP | $ (409) | – | – |
| Other income (expense), netGAAP | $ (6) | – | – |
| Loss before provision for income taxesGAAP | $ (415) | – | – |
| Provision for income taxesGAAP | $ 11 | – | – |
| Net lossGAAP | $ (426) | – | – |
| EPS – basicGAAP | $ (0.03) | – | – |
| Adjusted EBITDAnon-GAAP | $ 671 | – | – |
| Adjusted EPS - basicnon-GAAP | $ 0.05 | – | – |
| Weighted average common shares outstanding basicGAAP | 13,897,535 | – | – |
| Stock-based compensationother | 766 | – | – |
| Depreciation and amortizationother | 314 | – | – |
| Net cash (used in) provided by operating activitiesGAAP | (492) | – | – |
| Net cash used in investing activitiesGAAP | (55) | – | – |
| Net cash provided by (used in) financing activitiesGAAP | 33 | – | – |
| Net (decrease) increase in cashGAAP | (514) | – | – |
| Cash and cash equivalentsGAAP | $4.36M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Oncology revenueGrowth was driven primarily by higher core research services revenue, reflecting improved conversion of contracted work into revenue, together with increased data license revenue. | $15.23M | – | 8.8% |
What drove it
- Higher core research services revenue and improved conversion of contracted work into revenue.
- Increased data license revenue.
- Higher revenue and lower third-party radiolabeling costs improved oncology services margin.
- Sales and marketing expense increased to support expansion of the commercial organization for research services and data licensing.
- Research and development expense increased primarily because of higher share-based compensation expense related to Corellia, the wholly owned target-discovery subsidiary.
Concerns
- The company reported a GAAP net loss of $ (426) and a GAAP loss from operations of $ (409).
- Net cash (used in) provided by operating activities was (492), driven primarily by normal working capital movements, including a decrease in accounts payable and an increase in accounts receivable.
- Sales and marketing expense increased 66.6% to $3,090 as the company invested in its commercial organization.
- The company ended the quarter with approximately $4.4 million of cash.
What to watch
- Conversion of contracted work into revenue in core research services.
- Commercial activity and customer-base expansion for data offerings and data licensing.
- Oncology services margin and the impact of third-party radiolabeling costs.
- Expense discipline while the company invests in its commercial organization, radiopharmaceutical capabilities, data platform and target discovery initiatives.
- Operating cash flow and working-capital movements, including accounts receivable and accounts payable.
Balance sheet and cash flow
- Cash and cash equivalents were $ 4,358 at July 31, 2026, compared with $ 4,872 at April 30, 2026.
- The Company ended the quarter with approximately $4.4 million of cash and no debt.
- Accounts receivable, net was 13,602 at July 31, 2026, compared with 13,178 at April 30, 2026.
- Deferred revenue was 9,552 at July 31, 2026, compared with 8,828 at April 30, 2026.
- Total liabilities were 28,830 at July 31, 2026, compared with 22,921 at April 30, 2026.
- Net cash (used in) provided by operating activities was (492), compared with 600 in the prior-year period.
- Purchases of property and equipment were (55), compared with (46) in the prior-year period.
- Proceeds from the exercise of stock options were 52, compared with 24 in the prior-year period.
Analysis
Champions Oncology reported first-quarter fiscal 2027 oncology revenue of $15,232, up 8.8% from $13,995 in the prior-year period. Management attributed the growth primarily to higher core research services revenue, improved conversion of contracted work into revenue, and increased data license revenue. The company reported one revenue line, oncology revenue, rather than a numerical breakdown between research services and data licensing.
Direct profitability improved materially. Cost of oncology revenue decreased to $7,534 from $7,995, described as a decrease of $461,000, or 5.8%, as revenue increased. Oncology services profit rose to 7,698 from 6,000 and oncology services margin improved to 51 % from 43 %, reflecting higher revenue and lower third-party radiolabeling costs. Adjusted EBITDA increased to $ 671 from $ 59, with management citing operating leverage as revenue grows.
The company continued to fund commercial and development initiatives. Research and development rose to $2,344 from $2,082, primarily due to higher share-based compensation expense related to Corellia. Sales and marketing increased to $3,090 from $1,855 as Champions expanded its commercial organization for both research services and data licensing, while general and administrative expense increased to $2,673 from $2,570. These investments contributed to total costs and operating expenses of $15.6 million, compared with $14.5 million.
GAAP results remained negative, although losses narrowed on the reported figures. Loss from operations was $ (409), compared with $ (527), and net loss was $ (426), compared with $ (466). Basic GAAP EPS was unchanged at $ (0.03), while adjusted basic EPS was $ 0.05 compared with $ 0.01. The current-quarter net loss included 766 of stock-based compensation and 314 of depreciation and amortization.
Liquidity and cash conversion require attention. Net cash (used in) provided by operating activities was (492), which management attributed primarily to working-capital movements that included lower accounts payable and higher accounts receivable. Cash and cash equivalents were $ 4,358 at July 31, 2026, versus $ 4,872 at April 30, 2026, and the company stated it had approximately $4.4 million of cash and no debt. The release did not provide forward financial guidance.
Management, verbatim
We delivered strong performance in the first quarter of fiscal 2027, with improved study execution and conversion in our core research services business driving higher revenue and materially better margins. We are also seeing increased commercial activity around our data offerings as we work to broaden that business across a larger customer base.
Robert Brainin, CEO of Champions
At the same time, we continued to invest in our commercial organization, radiopharmaceutical capabilities, data platform and target discovery initiatives. Our focus remains on building sustainable growth across the business while continuing to improve profitability.
Robert Brainin, CEO of Champions
We are continuing to build on the foundation established last year, with a focus on driving revenue growth, maintaining expense discipline and converting that growth into improved profitability.
David Miller, CFO of Champions
Not in the filing
stated, not guessed- Forward revenue, gross-margin, operating-expense, tax-rate, or other financial guidance was not provided.
- Previous-period outlook was not provided; therefore, no comparison with prior guidance is available.
- GAAP gross margin was not reported.
- Diluted GAAP EPS and diluted non-GAAP EPS were not reported.
- Free cash flow was not reported.
- Share repurchases and dividends were not reported.
- A numerical breakdown of revenue between core research services and data licensing was not reported.
- Quarter-over-quarter comparisons for income-statement metrics were not reported.
- An exact debt balance was not reported; the company stated that it had no debt.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.