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OmniAb (OABI)
NASDAQ:OABI
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OmniAb
(NASDAQ:OABI)
Rating:56Neutral
Price Target:
$2.00
▲(0.00% Upside)
Positive Factors
Financial Performance
Steady financial results and new license agreements are factors in maintaining a Buy rating for the stock, with a price target representing over 100% potential share price appreciation.
Product Innovation
The launch of OmniAb's data-centered, AI/ML-driven tech xPloration product is a key addition to its platform and could provide new avenues for revenue generation as partner adoption begins.
R&D Pipeline and Growth
OmniAb has added new discovery licenses and increased its roster of active programs, indicating strong growth and development.
Negative Factors
Cash Flow Concerns
Questions about its $43M cash balance vs ~$38M FY25 cash burn remain, but management is confident the milestones in the post-discovery phase can get them to cash flow profitability.
Financial Guidance
Management reaffirmed FY25 revenues guidance with a potential downside, citing challenges in predicting drug discovery partner revenues.
Revenue Decline
Q2 revenues of $3.9M included OABI's first xPloration revenues, but overall revenues declined by 49% year over year.
OmniAb (OABI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$245.40M
Dividend YieldN/A
Average Volume (3M)553.04K
Price to Earnings (P/E)―
Beta (1Y)1.19
Revenue Growth6.05%
EPS Growth2.24%
CountryUS
Employees114
SectorHealthcare
Sector Strength43
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.15
Shares Outstanding122,701,294
10 Day Avg. Volume559,195
30 Day Avg. Volume553,042
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.67
Enterprise Value/Revenue7.16
Enterprise Value/Gross Profit9.10
Enterprise Value/Ebitda-3.10
Forecast
1Y Price Target
$6.71Price Target Upside235.50% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
OmniAb Business Overview & Revenue Model
Company DescriptionOmniAb, Inc. (OABI) is a biotechnology company that operates in the pharmaceutical and life sciences sectors. The company specializes in the discovery and development of novel antibody therapeutics using its proprietary platform. OmniAb's core services include providing pharmaceutical and biotechnology companies with access to its advanced antibody discovery technology, which is designed to accelerate the drug development process and enhance therapeutic outcomes.
How the Company Makes MoneyOmniAb makes money primarily through licensing agreements and collaborations with pharmaceutical and biotechnology companies. Its revenue model is centered on the use of its proprietary antibody discovery platform, which partners can leverage to develop new therapeutic candidates. Key revenue streams include upfront payments, milestone payments based on the achievement of specific development or regulatory goals, and royalties on sales of drugs developed using OmniAb's technology. Significant partnerships with leading biopharmaceutical companies contribute to its earnings by expanding the reach and application of its platform in the development of innovative therapies.
OmniAb Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: 3.63%|
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Neutral
The earnings call highlights robust new partnerships, technological advances with the xPloration launch, and strategic cost reductions, which positions OmniAb well for future growth. However, these positives are tempered by a noticeable decline in revenue and an increased net loss, along with natural attrition challenges.Q2-2025 Updates
Positive Updates
Strong Deal Flow and New Partnerships
OmniAb added a number of new partners in the first half of 2025, setting a pace for one of their strongest years yet. They ended Q2 with 100 active partners.
New Technology Launch: xPloration
The xPloration Partner Access Program was launched and well received, with the first system sold and installed within weeks of launch. The program is expected to be accretive to the business.
Increase in Active Programs and Potential Milestones
Active programs increased to 381 with a year-to-date net increase of 18 programs. The preclinical programs grew by 22% from the prior year with $1.3 billion in contracted potential milestones.
Positive Clinical Progress
A number of programs progressed to the preclinical stage, and a new program entered a Phase III clinical trial. Two novel programs initiated first-in-human clinical trials in 2025.
High Anticipated Future Revenue from Antibody Programs
Antibody programs have over $3 billion in total remaining contracted potential milestone payments with an average royalty rate of 3.36%.
Strategic Cost Reductions
OmniAb realigned staffing, reducing headcount from 114 to 87, which is expected to result in $7 million annual cash savings.
Negative Updates
Decline in Revenue
Q2 2025 revenue was $3.9 million compared to $7.6 million in Q2 2024, primarily due to lower milestones and service revenue.
Increased Net Loss
Net loss for Q2 2025 was $15.9 million or $0.15 per share, compared with a net loss of $13.6 million or $0.13 per share in Q2 2024.
Discontinued Programs and Attrition
Service revenue declined due to the discontinuation of a small-molecule ion channel program. Attrition in drug development is noted as a natural part of the process.
Company Guidance
In the second quarter of 2025, OmniAb, Inc. reported a robust performance characterized by continued growth in its partnerships and active programs, despite a decrease in quarterly revenue to $3.9 million from $7.6 million in the same period in 2024. The decrease was attributed to lower milestone achievements and service revenue, partially offset by new revenue from the launch of the xPloration Partner Access Program. This program has facilitated the sale and installation of an xPloration system, adding to the company's revenue diversity. The company ended the quarter with 100 active partners and 381 active programs, marking a net increase of 18 programs year-to-date. Additionally, OmniAb's strategic realignment efforts, including a reduction in headcount from 114 to 87 employees, are expected to yield $7 million in annual cash savings. Looking forward, OmniAb reaffirmed its 2025 revenue guidance of $20-25 million and operating expenses of $85-90 million, while emphasizing the potential of its differentiated technology platform to deliver long-term value.OmniAb Financial Statement Overview
Summary
OmniAb faces significant financial challenges, marked by declining revenues, negative profitability margins, and strained cash flows. The balance sheet remains a relative strength with adequate equity, but the operational and cash flow difficulties present substantial risks. The company needs to improve revenue generation and cost management to enhance its financial stability.Income Statement
OmniAb's revenue has shown a declining trend with a significant revenue drop from 2022 to TTM 2025. Gross profit margin has weakened, and the company has negative net profit and EBIT margins, indicating operational challenges and lack of profitability. Despite a slight recovery in gross profit in TTM 2025, the overall financial health remains concerning with consistent net losses.45
Neutral
Balance Sheet
OmniAb maintains a strong equity base with a high equity ratio, indicating a solid balance sheet structure. However, the company has a significant amount of debt, resulting in a moderate debt-to-equity ratio. The return on equity is negative, reflecting the company's struggle to generate profits from its equity base.60
Neutral
Cash Flow
The company's cash flows are under pressure, with negative operating cash flow and free cash flow in the TTM period. The ratio of operating cash flow to net income is unfavorable due to negative earnings, signaling cash generation challenges. The company is reliant on financing activities to support its cash position.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.03M | 26.39M | 34.16M | 59.08M | 34.75M | 23.27M |
| Gross Profit | 18.12M | 26.39M | 34.16M | 42.83M | 19.78M | 23.27M |
| EBITDA | -53.25M | -50.92M | -49.73M | -13.01M | -19.38M | -10.59M |
| Net Income | -63.52M | -62.03M | -50.62M | -22.33M | -27.04M | -17.56M |
Balance Sheet | ||||||
| Total Assets | 295.67M | 325.56M | 375.23M | 421.21M | 304.46M | 295.38M |
| Cash, Cash Equivalents and Short-Term Investments | 41.62M | 59.43M | 86.98M | 88.27M | -13.85M | -2.59M |
| Total Debt | 21.78M | 23.16M | 25.56M | 25.80M | 13.85M | 2.59M |
| Total Liabilities | 33.61M | 37.94M | 60.64M | 79.84M | 70.16M | 59.84M |
| Stockholders Equity | 262.06M | 287.62M | 314.58M | 341.37M | 234.31M | 235.54M |
Cash Flow | ||||||
| Free Cash Flow | 28.28M | -41.54M | 703.00K | -20.75M | -9.74M | 1.87M |
| Operating Cash Flow | 28.85M | -39.66M | 2.35M | -3.59M | -5.67M | 3.62M |
| Investing Cash Flow | 16.25M | 37.88M | -18.38M | -73.31M | -4.03M | -26.98M |
| Financing Cash Flow | 12.70M | 13.02M | -892.00K | 110.74M | 9.70M | 23.36M |
OmniAb Technical Analysis
Positive
2.00
Price Trends
1.86
Positive
1.82
Positive
2.73
Negative
Market Momentum
0.03
Positive
53.48
Neutral
79.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OABI, the sentiment is Positive. The current price of 2 is above the 20-day moving average (MA) of 1.99, above the 50-day MA of 1.86, and below the 200-day MA of 2.73, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 53.48 is Neutral, neither overbought nor oversold. The STOCH value of 79.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OABI.
OmniAb Risk Analysis
OmniAb disclosed 77 risk factors in its most recent earnings report. OmniAb 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
OmniAb Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $438.36M | ― | -51.84% | ― | -100.00% | -25.75% | |
56 Neutral | $245.40M | ― | -22.84% | ― | 6.05% | 2.24% | |
53 Neutral | €4.18B | 12.96 | -41.26% | 2.54% | 14.43% | -26.74% | |
52 Neutral | $340.58M | ― | -12.42% | ― | 194.98% | 38.01% | |
44 Neutral | $505.29M | ― | -437.92% | ― | -78.63% | 1.88% | |
42 Neutral | $284.28M | ― | -257.38% | ― | ― | 63.92% | |
33 Underperform | $322.08M | ― | -55.18% | ― | ― | -2.93% |
* Healthcare Sector Average
Performance Comparison
OABI
OmniAb
2.00
-2.18
-52.15%
VSTM
Verastem
7.73
5.43
236.09%
XOMA
Xoma
31.59
3.46
12.30%
CMPX
Compass Therapeutics
2.95
1.79
154.31%
HUMA
Humacyte
1.88
-4.60
-70.99%
CADL
Candel Therapeutics
6.04
0.77
14.61%
OmniAb Corporate Events
Executive/Board ChangesShareholder Meetings
OmniAb Elects Directors at Annual Shareholder Meeting
Neutral
Jun 18, 2025
OmniAb, Inc. held its 2025 Annual Meeting of Shareholders on June 17, 2025, where shareholders voted on key proposals. During the meeting, two directors, Carolyn R. Bertozzi, Ph.D., and John Higgins, were elected as Class III directors for a three-year term. Additionally, the appointment of Ernst & Young LLP as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified.
The most recent analyst rating on (OABI) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on OmniAb stock, see the OABI Stock Forecast page.
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.