Third Quarter 2026
Filed Oct 30, 2026OmniAb Reports Third Quarter 2026 Financial Results and Business Highlights Raises Full Year 2026 Revenue and Cash Outlook on Continued Business Momentum
Third-quarter revenue was $4.0 million versus $2.2 million in the prior-year period, net loss narrowed to $15.7 million from $16.5 million, and the company raised its 2026 revenue and year-end cash outlook. Nine-month revenue growth was driven primarily by milestone revenue, while quarterly revenue growth reflected service and xPloration revenue.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30GAAP | $3.99M | – | – |
| License and milestone revenue, three months ended September 30GAAP | $100K | – | – |
| Service revenue, three months ended September 30GAAP | $2.83M | – | – |
| xPloration revenue, three months ended September 30GAAP | $703K | – | – |
| Royalty revenue, three months ended September 30GAAP | $355K | – | – |
| Cost of xPloration revenue, three months ended September 30GAAP | $309K | – | – |
| Research and development expense, three months ended September 30GAAP | $9.55M | – | – |
| General and administrative expense, three months ended September 30GAAP | $7.24M | – | – |
| Amortization of intangibles, three months ended September 30GAAP | $3.05M | – | – |
| Other operating expense (income), net, three months ended September 30GAAP | $202K | – | – |
| Total costs and operating expenses, three months ended September 30GAAP | $20.36M | – | – |
| Cash costs and operating expenses, three months ended September 30non-GAAP | $13.69M | – | – |
| Loss from operations, three months ended September 30GAAP | −$16.37M | – | – |
| Interest income, three months ended September 30GAAP | $524K | – | – |
| Total other income, net, three months ended September 30GAAP | $513K | – | – |
| Loss before income taxes, three months ended September 30GAAP | −$15.86M | – | – |
| Income tax benefit, three months ended September 30GAAP | $127K | – | – |
| Net loss, three months ended September 30GAAP | −$15.73M | – | – |
| Net loss per share, basic and diluted, three months ended September 30GAAP | $(0.12) | – | – |
| Weighted-average shares outstanding, basic and diluted, three months ended September 30GAAP | 129.3M | – | – |
| Total revenue, nine months ended September 30GAAP | $31.84M | – | – |
| License and milestone revenue, nine months ended September 30GAAP | $21.64M | – | – |
| Service revenue, nine months ended September 30GAAP | $7.42M | – | – |
| xPloration revenue, nine months ended September 30GAAP | $1.92M | – | – |
| Royalty revenue, nine months ended September 30GAAP | $862K | – | – |
| Total costs and operating expenses, nine months ended September 30GAAP | $62.67M | – | – |
| Cash costs and operating expenses, nine months ended September 30non-GAAP | $39.24M | – | – |
| Net loss, nine months ended September 30GAAP | −$29.29M | – | – |
| Net loss per share, basic and diluted, nine months ended September 30GAAP | $(0.23) | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $22.88M | – | – |
| Short-term investments, September 30, 2026GAAP | $41.33M | – | – |
| Cash, cash equivalents and short-term investments, September 30, 2026other | $64.2M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| License and milestone revenue, three months ended September 30No driver was provided for the quarterly change. | $100K | – | – |
| Service revenue, three months ended September 30Increased work performed on antibody and ion channel programs. | $2.83M | – | – |
| xPloration revenue, three months ended September 30Higher instrument sales and related consumables. | $703K | – | – |
| Royalty revenue, three months ended September 30No driver was provided for the quarterly change. | $355K | – | – |
| License and milestone revenue, nine months ended September 30Revenue increase was primarily related to milestone revenue. | $21.64M | – | – |
| Service revenue, nine months ended September 30Increased work performed on antibody and ion channel programs. | $7.42M | – | – |
| xPloration revenue, nine months ended September 30Higher instrument sales and related consumables. | $1.92M | – | – |
| Royalty revenue, nine months ended September 30No driver was provided for the nine-month change. | $862K | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full Year 2026 outlook
- Revenue$35 million to $39 million
- Operating expensesCosts and operating expenses of $83 million to $87 million; cash costs and operating expenses of $50 million to $54 million
- Tax rateapproximately 0%
- NoteExpected year-end cash and cash equivalents of $53 million to $57 million
- NotexPloration revenue in 2026 between $2 million and $3 million
- NotexPloration revenue expected to double in 2027 and to double again in 2028
What drove it
- Quarterly revenue increased primarily because of service revenue and xPloration revenue.
- Nine-month revenue increased primarily because of milestone revenue, with additional increases in service and xPloration revenue.
- Third-quarter research and development expense declined due to lower personnel expense related to share-based compensation and salary expense and lower facility-related costs.
- Third-quarter general and administrative expense increased primarily due to higher external expenses, including legal and other public company expenses, partially offset by lower personnel expense related to share-based compensation.
- OmniAb entered into a global collaboration and license agreement with Eli Lilly and Company for a new ion channel program and received an up-front payment.
- The Eli Lilly agreement makes OmniAb eligible for up to $370 million in research, development, and commercial milestone payments, as well as tiered royalties on global net sales.
- The company had 111 active partners and 433 active programs as of September 30, 2026, including 34 OmniAb-derived clinical and commercial programs.
Concerns
- Quarterly license and milestone revenue was $100 (in thousands), compared with $616 (in thousands) in the prior-year period.
- Quarterly royalty revenue was $355 (in thousands), compared with $361 (in thousands) in the prior-year period.
- Cost of xPloration revenue was $309 (in thousands), compared with $29 (in thousands) in the prior-year period.
- The company reported a net loss of $(15,728) (in thousands) for the third quarter and $(29,294) (in thousands) for the nine months ended September 30, 2026.
- The company cautioned that it may not achieve financial guidance or projected xPloration revenues and that operating expenses may be higher than anticipated.
What to watch
- Execution of the broader commercial launch of xPloration, which became available for purchase by all customers beginning in October 2026.
- 2026 xPloration revenue guidance of between $2 million and $3 million and the expectation for xPloration revenue to double in 2027 and again in 2028.
- Revenue delivery against the updated full-year 2026 range of $35 million to $39 million.
- Year-end cash and cash equivalents relative to the updated expected range of $53 million to $57 million.
- Development, regulatory, and commercialization progress across partnered programs, including the new Eli Lilly ion channel program.
Balance sheet and cash flow
- Cash and cash equivalents were $22,883 (in thousands) at September 30, 2026, compared with $25,524 (in thousands) at December 31, 2025.
- Short-term investments were $41,327 (in thousands) at September 30, 2026, compared with $28,501 (in thousands) at December 31, 2025.
- Cash, cash equivalents and short-term investments were $64.2 million as of September 30, 2026.
- Total assets were $290,920 (in thousands) at September 30, 2026, compared with $300,914 (in thousands) at December 31, 2025.
- Total liabilities were $41,760 (in thousands) at September 30, 2026, compared with $33,887 (in thousands) at December 31, 2025.
Analysis
Third-quarter revenue was $3,993 (in thousands), compared with $2,239 (in thousands) in the prior-year period. The increase was primarily driven by service revenue of $2,835 (in thousands), compared with $1,188 (in thousands), and xPloration revenue of $703 (in thousands), compared with $74 (in thousands). Service revenue benefited from increased work on antibody and ion channel programs, while xPloration revenue reflected higher instrument sales and related consumables. License and milestone revenue was $100 (in thousands), compared with $616 (in thousands), and royalty revenue was $355 (in thousands), compared with $361 (in thousands).
The nine-month revenue profile was led by milestone activity. Total revenue for the nine months ended September 30 was $31,835 (in thousands), compared with $10,290 (in thousands), including license and milestone revenue of $21,640 (in thousands), compared with $3,879 (in thousands). Service revenue was $7,415 (in thousands), compared with $5,027 (in thousands), and xPloration revenue was $1,918 (in thousands), compared with $724 (in thousands). The company also added a new global ion channel collaboration and license agreement with Eli Lilly and Company during the quarter.
Quarterly total costs and operating expenses were $20,361 (in thousands), essentially unchanged from $20,379 (in thousands). Research and development expense declined to $9,553 (in thousands) from $10,379 (in thousands), while general and administrative expense increased to $7,244 (in thousands) from $6,777 (in thousands). Cash costs and operating expenses, a non-GAAP measure excluding share-based compensation, depreciation and amortization of intangibles, were $13,692 (in thousands), compared with $12,326 (in thousands). The quarterly net loss narrowed to $(15,728) (in thousands), or $(0.12) per share, from $(16,525) (in thousands), or $(0.14) per share.
For the nine-month period, total costs and operating expenses were $62,669 (in thousands), compared with $63,493 (in thousands), while net loss improved to $(29,294) (in thousands) from $(50,600) (in thousands). Nine-month amortization of intangibles increased to $12,134 (in thousands) from $9,684 (in thousands), primarily due to a $2.9 million non-cash impairment related to discontinued legacy small-molecule ion channel programs recorded in the first quarter of 2026. The prior-year nine-month period also included a $3.0 million one-time gain from the sale of a small-molecule program.
OmniAb raised full-year 2026 revenue guidance to $35 million to $39 million from $32 million to $36 million and expects year-end cash and cash equivalents of $53 million to $57 million, up from $49 million to $53 million previously. It lowered its expected ranges for GAAP costs and operating expenses and non-GAAP cash costs and operating expenses. As of September 30, 2026, cash, cash equivalents and short-term investments were $64.2 million. The company is positioning xPloration for broader commercialization, with access expanded to all customers beginning in October 2026, and expects 2026 xPloration revenue of between $2 million and $3 million.
Management, verbatim
Our strong third-quarter 2026 performance reflects our licensing execution and our focus on driving value for our stakeholders within an efficient business model built on highly differentiated technologies.
Matt Foehr, Chief Executive Officer of OmniAb
In addition, the expanded commercial launch of xPloration ® , the introduction of OmniTides ™ , and continued progress across our portfolio of milestone- and royalty-bearing partnered programs reinforce our confidence in the durability of our revenue base and our long-term growth potential.
Matt Foehr, Chief Executive Officer of OmniAb
Based on our performance to date and our expectation for the remainder of the year, we are again raising our revenue guidance and cash outlook.
Matt Foehr, Chief Executive Officer of OmniAb
Not in the filing
stated, not guessed- Prior-release outlook was not provided; therefore, no actual-versus-prior-guidance comparisons are included.
- Gross margin was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Debt was not reported.
- Capital returns, including share repurchases and dividends, were not reported.
- Quarterly and nine-month prior-quarter comparisons were not reported.
- Percentage year-over-year and quarter-over-quarter changes were not reported for the financial statement line items.
- No numerical revenue guidance was provided for 2027 or 2028, other than the expectation that xPloration revenue will double in each year relative to the preceding year.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.