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Champions Oncology Inc (CSBR)
NASDAQ:CSBR
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Champions Oncology
(NASDAQ:CSBR)
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Rating:47Neutral
Price Target:
$5.50
▼(-17.17% Downside)
Action:ReiteratedDate:03/13/26
The score is held back primarily by deteriorating TTM operating performance (revenue decline, margin compression, and losses) and a bearish technical trend. These are only partly offset by relatively resilient cash flow/leverage and a moderately positive earnings outlook centered on full-year growth and positive adjusted EBITDA, while valuation remains challenging due to a very high P/E.
Positive Factors
Services (Core study) revenue growth
Sustained growth in core services demonstrates durable demand and execution in the firm's primary business. A record quarter of study revenue signals expanding customer adoption and backlog conversion, supporting predictable contracted services revenue over the next several quarters.
Positive adjusted EBITDA momentum & cash generation
Consistent adjusted EBITDA gains and positive TTM cash flow indicate the business can generate cash despite GAAP swings. This improves financial resilience, funds organic investments, and reduces near-term refinancing risk, supporting stability across the next 2-6 months.
Manageable leverage and liquidity
A cash balance with no debt and historically manageable leverage gives the company flexibility to fund operations and strategic investments without immediate capital markets dependence. That balance-sheet position buffers short-term volatility and supports execution of growth projects.
Negative Factors
Revenue decline & lumpy recognition
Top-line volatility and a steep TTM decline highlight structural sensitivity to timing and recognition of data deals. Reliance on episodic data license revenue makes multi-period revenue visibility weak and complicates stable margin expansion over the medium term.
Gross margin compression from outsourced costs
Material margin contraction tied to outsourced lab costs undermines sustainable profitability. If outsourcing remains necessary, gross margins may stay depressed; reversing this requires internalizing costly capabilities or securing better cost terms, which takes quarters to execute.
Nascent data business & uncertain Corellia funding
The data platform's early-stage, lumpy revenue profile and unclear external financing for Corellia create execution risk. Continued internal funding of Corellia could suppress corporate EBITDA and cash flow until external financing or licensing crystallizes, weighing on near-term durability.
Champions Oncology (CSBR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$86.10M
Dividend YieldN/A
Average Volume (3M)17.98K
Price to Earnings (P/E)―
Beta (1Y)0.42
Revenue Growth9.06%
EPS GrowthN/A
CountryUS
Employees210
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.02
Shares Outstanding13,886,826
10 Day Avg. Volume35,034
30 Day Avg. Volume17,980
Financial Highlights & Ratios
PEG Ratio-0.13
Price to Book (P/B)25.89
Price to Sales (P/S)1.72
P/FCF Ratio13.96
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue1.45
Enterprise Value/Gross Profit3.34
Enterprise Value/Ebitda-93.50
Forecast
1Y Price Target
$12.00Price Target Upside80.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.12
Revenue Forecast (FY)$58.53M
Champions Oncology Business Overview & Revenue Model
Company DescriptionChampions Oncology (CSBR) is a biotechnology company that specializes in personalized medicine, particularly in the field of oncology. The company develops advanced technology platforms, including its proprietary TumorGraft® technology, which allows for the creation of patient-derived tumor models for use in drug development and treatment selection. By providing solutions that enhance the understanding of cancer biology and treatment responses, Champions Oncology serves pharmaceutical companies, academic institutions, and healthcare providers globally.
How the Company Makes MoneyChampions Oncology generates revenue primarily through its services related to tumor models and personalized medicine solutions. The company earns money from its TumorGraft platform by offering preclinical services to pharmaceutical companies, which include drug efficacy testing and biomarker studies. Additionally, the company has established partnerships with various pharmaceutical firms that may involve collaborative research agreements and licensing deals, contributing to its revenue streams. The company also provides consulting services and engages in strategic collaborations that can enhance its earnings potential. Overall, its revenue model is centered on providing high-value, data-driven insights that help accelerate the drug development process for oncology therapies.
Champions Oncology Key Performance Indicators (KPIs)
Any
Revenue By Segment
Breaks down revenue by different business segments, highlighting which areas are driving growth and profitability. This can indicate strategic focus and potential areas for expansion or risk.
Breaks down revenue by different business segments, highlighting which areas are driving growth and profitability. This can indicate strategic focus and potential areas for expansion or risk.
Data provided by:
The Fly
The FlyChampions Oncology Earnings Call Summary
Earnings Call Date:Mar 12, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
The call conveyed solid operational execution — record services revenue, ~32% growth in core study revenue, and a third consecutive positive adjusted EBITDA — alongside deliberate investments in data and a therapeutic subsidiary (Corellia). However, near-term challenges include a modest overall revenue decline (~3%) driven by absence of prior-year data license revenue, compression of gross margin (61% to 47%) driven in part by outsourced radiolabeling costs, and elevated operating expenses (~+36%). Data revenue remains early and variable, and Corellia funding timing is uncertain. On balance, the positive operational momentum and pathway to monetize data and Corellia slightly outweigh the near-term margin and timing headwinds.Q3-2026 Updates
Positive Updates
Record Services Revenue and Core Study Growth
Total revenue of $16.6M for the quarter with core study (services) revenue a record $16.6M, up from $12.6M year-ago (~+32%), reflecting strong study execution and conversion of previously booked work.
Positive Adjusted EBITDA Momentum
Third consecutive quarter of positive adjusted EBITDA of $575k, and management remains on track for full-year positive adjusted EBITDA.
Operating Leverage and Efficiency
Growth in services delivered without material additions to headcount, indicating operating leverage and the ability to expand margins as the business scales.
Early Commercial Traction in Data Business
Closed a six-figure data deal in the quarter (expected to be recognized in Q4) and expects incremental revenue from a previously announced large data deal in Q4 — signs of early momentum in the nascent data platform.
Strategic Investments in Growth Vectors
Continued investments in the data platform, sequencing and related R&D, expansion of data business development and commercial teams, and development of radiopharmaceutical capabilities to enhance long-term growth potential.
Progress at Corellia (Target Discovery Subsidiary)
Corellia generating attractive data with positive feedback from potential VC and licensing partners; management plans to include funding in fiscal 2027 budget and may secure external funding to reduce internal EBITDA investment.
Solid Balance Sheet Positioning
Ended the quarter with $7.1M in cash, no debt, and net cash used in operating activities of $1.4M for the quarter, with management stating cash is within projected range.
Negative Updates
Overall Revenue Slight Decline Year-Over-Year
Total revenue declined to $16.6M from $17.0M year-ago (~-3%), primarily due to recognition of $4.5M of data revenue in the prior-year quarter that was not recognized this quarter.
Gross Margin Compression
Gross margin declined to 47% from 61% year-ago (down 14 percentage points). Cost of sales rose to $8.8M from $6.6M (~+33%), with over $2M attributable to outsourced laboratory (radiolabeling) work driving margin pressure.
Higher Operating Expenses
Operating expenses increased to $7.2M from $5.3M (~+36%) due to investments in R&D (sequencing), expanded sales and marketing for data and services, and higher G&A from leadership transitions and IT investments.
GAAP Loss from Operations
Despite positive adjusted EBITDA, the company reported a GAAP loss from operations of approximately $275k for the quarter.
Data Revenue Volatility and Early-Stage Platform
Data revenue remains inconsistent quarter-to-quarter; no data revenue recognized this quarter and the platform is still nascent, making future data revenue timing and magnitude uncertain despite early deals.
Dependency on Timing of Study Completions
Management emphasized the business is 'lumpy' and quarterly revenue can fluctuate with study timing — some of the quarter's strength was driven by backlog conversion that may normalize in future periods.
Uncertain Timing for External Funding of Corellia
While Corellia is attracting interest, management provided no specific timing for external financing; continued internal funding could suppress near-term EBITDA until an external round closes.
Company Guidance
The company guided that it remains on track for full‑year revenue growth and full‑year positive adjusted EBITDA, expects to close additional data revenue in Q4 (including a closed 6‑figure data deal and incremental revenue from the large data deal announced in Q3 FY25), and sees the payoff from current investments beginning in fiscal 2027 with more meaningful acceleration in fiscal 2028; Corellia funding is included in initial fiscal 2027 budgets (though external financing could redeploy that EBITDA). For context, Q3 results underpinning the guidance included total revenue of $16.6M (down ~3% YoY from $17.0M) driven by record study revenue of $16.6M (+~32% YoY vs $12.6M) and no data revenue this quarter (vs $4.5M prior), adjusted EBITDA of $575K (GAAP loss from operations ≈$275K), gross margin of 47% ($8.8M cost of sales, >$2M of which was outsourced lab work — if performed internally margin would exceed 50%), operating expenses of $7.2M (vs $5.3M), net cash used in operations $1.4M, and $7.1M cash with no debt.Champions Oncology Financial Statement Overview
Summary
Mixed fundamentals: income statement has weakened with sharp TTM revenue decline, margin compression, and a return to losses, partially offset by relatively strong TTM operating/free cash flow and currently manageable leverage (though historical balance-sheet volatility is a risk).Income Statement
Profitability has been volatile. After a profitable FY2025 (annual) with positive operating income and an ~8% net margin, results deteriorated in TTM (Trailing-Twelve-Months) with a return to losses (about a -5% net margin and negative operating margin). The top line is the key pressure point: revenue declined sharply in TTM (Trailing-Twelve-Months) (~-29%) after modest growth in FY2025, and gross margin compressed materially versus prior years, indicating weaker pricing/power, mix, or cost absorption.38
Negative
Balance Sheet
Leverage looks manageable in TTM (Trailing-Twelve-Months) with debt below equity (debt-to-equity ~0.79) and equity positive. However, the capital structure has shown meaningful swings over time, including a period of negative equity in FY2024, highlighting balance-sheet fragility and sensitivity to losses. Returns on equity are also inconsistent (strongly positive in FY2025 but negative in TTM), reinforcing that profitability stability is the main balance-sheet risk.52
Neutral
Cash Flow
Cash generation is a relative bright spot. TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both positive, despite net losses, suggesting effective working-capital management and/or non-cash charges supporting cash earnings quality. That said, free cash flow declined versus the prior annual period (negative growth), and the company has a history of lumpy cash flow (including negative operating and free cash flow in FY2024 and FY2021), so durability through the current revenue downturn remains a watch item.64
Positive
| Breakdown | TTM | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 | Apr 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 57.94M | 56.94M | 50.16M | 53.87M | 49.11M | 41.04M |
| Gross Profit | 25.13M | 26.91M | 20.75M | 24.34M | 25.48M | 19.59M |
| EBITDA | -898.00K | 6.29M | -5.41M | -2.07M | 3.00M | 2.02M |
| Net Income | -2.25M | 4.70M | -7.28M | -5.33M | 548.00K | 362.00K |
Balance Sheet | ||||||
| Total Assets | 28.45M | 32.34M | 26.13M | 34.31M | 35.38M | 27.59M |
| Cash, Cash Equivalents and Short-Term Investments | 7.13M | 9.79M | 2.62M | 10.12M | 9.01M | 4.69M |
| Total Debt | 5.00M | 6.11M | 7.43M | 8.60M | 9.47M | 9.60M |
| Total Liabilities | 24.07M | 28.57M | 28.04M | 29.68M | 26.28M | 20.16M |
| Stockholders Equity | 4.28M | 3.77M | -1.90M | 4.64M | 9.10M | 7.43M |
Cash Flow | ||||||
| Free Cash Flow | 3.82M | 7.00M | -6.97M | 1.08M | 4.11M | -4.96M |
| Operating Cash Flow | 4.39M | 7.39M | -6.14M | 3.96M | 6.50M | -1.68M |
| Investing Cash Flow | -555.00K | -389.00K | -836.00K | -2.87M | -2.38M | -3.17M |
| Financing Cash Flow | 86.00K | 170.00K | -527.00K | 11.00K | 207.00K | 1.20M |
Champions Oncology Technical Analysis
Negative
6.64
Price Trends
6.44
Negative
6.57
Negative
6.78
Negative
Market Momentum
-0.10
Negative
43.08
Neutral
72.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSBR, the sentiment is Negative. The current price of 6.64 is above the 20-day moving average (MA) of 5.95, above the 50-day MA of 6.44, and below the 200-day MA of 6.78, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 43.08 is Neutral, neither overbought nor oversold. The STOCH value of 72.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CSBR.
Champions Oncology Risk Analysis
Champions Oncology disclosed 30 risk factors in its most recent earnings report. Champions Oncology reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Champions Oncology Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $179.67M | -21.41 | -13.46% | ― | 35.42% | ― | |
49 Neutral | $92.87M | -9.85 | -65.55% | ― | ― | 11.78% | |
47 Neutral | $86.10M | -90.96 | -57.20% | ― | 9.06% | ― | |
43 Neutral | $44.18M | -3.22 | -49.42% | ― | ― | -9.42% |
* Healthcare Sector Average
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Champions Oncology
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.