Champions Oncology falls after slight revenue miss in first quarter

Investing.com -- Champions Oncology, Inc. (NASDAQ:CSBR) reported first quarter fiscal 2026 results that missed analyst revenue expectations, sending shares down 1.3% after-hours as investors reacted to the revenue shortfall despite better-than-expected earnings.

The translational oncology research organization posted revenue of $14 million for the quarter ended July 31, 2025, falling short of the $14.7 million consensus estimate. However, the company reported earnings per share of $0.02, exceeding analyst expectations of a $0.01 loss. Revenue was slightly lower compared to $14.1 million in the same quarter last year, representing a 0.7% YoY decline.

Champions Oncology achieved adjusted EBITDA of $59,000 for the quarter, significantly down from $2 million in the first quarter of fiscal 2025. Gross margin contracted to 43% from 50% in the prior year, primarily due to higher outsourced lab services for radiolabeling work.

"While revenue was slightly lower than the first quarter of last year, we achieved solid sequential growth that met our expectations and provides a strong foundation for the year," said David Miller, CFO of Champions. "As we move forward, we anticipate continued topline expansion and margin improvement driven by a healthy services pipeline and growing demand for our proprietary data offerings."

The company recently appointed Rob Brainin as Chief Executive Officer to lead its next phase of growth. The quarter saw a $400,000 decline in service revenue, partially offset by a $300,000 increase in data license revenue.

Champions Oncology ended the quarter with approximately $10.3 million in cash and no debt, which the company believes provides financial flexibility for strategic investments. Operating cash flow was positive at approximately $600,000 for the quarter.

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