OmniAb (OABI) AI Stock Analysis

• Market Cap: $209.82M
• Dividend Yield: N/A
• Average Volume (3M): 464.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: 6.05%
• EPS Growth: 2.24%
• Country: US
• Employees: 114
• Sector: Healthcare
• Sector Strength: 53
• Industry: Biotechnology
• EPS (TTM): -0.15
• Shares Outstanding: 122,701,294
• 10 Day Avg. Volume: 402,671
• 30 Day Avg. Volume: 464,956
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 7.16
• Enterprise Value/Gross Profit: 9.10
• Enterprise Value/Ebitda: -3.10
• 1Y Price Target: $7.50
• Price Target Upside: 338.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 53 Neutral
• Price Target: $2.00 ▲(16.96% Upside)

OmniAb's overall stock score reflects significant financial challenges, particularly in profitability and revenue growth, despite a stable balance sheet and improving cash flow. Technical analysis provides mixed signals, while valuation remains unattractive due to ongoing losses. The earnings call highlights potential future growth through partnerships and technology launches, but these are not factored into the score due to weight redistribution.

Positive Factors

Partnership Growth

OmniAb continued to expand its partnered programs, reaching 100 active partners and 381 active programs by the end of 2Q25.

Product Launch

The xPloration platform launched successfully, attracting prospective customers and generating $0.6M shortly after launch, with a 56.9% gross margin viewed as attractive.

Negative Factors

Financial Performance

The company reported revenue of $3.9 million compared to our estimate of $5.4 million and consensus of $5.3 million.

Revenue Decline

Q2 revenues of $3.9M included OABI's first xPloration revenues, but overall revenues declined by 49% year over year.

OmniAb Business Overview & Revenue Model

Company Description

OmniAb, Inc., a biotechnology company, provides therapeutic antibody discovery technologies in the United States. The company's discovery platform provides industry partners access to the diverse antibody repertoires and screening technologies to enable discovery of next-generation therapeutics. Its OmniAb platform is the biological intelligence of proprietary transgenic animals, including OmniRat, OmniChicken, and OmniMouse that have been genetically modified to generate antibodies with human sequences to facilitate development of human therapeutic candidates. The company's OmniFlic (transgenic rat) and OmniClic (transgenic chicken) address industry needs for bispecific antibody applications though a common light chain approach, and OmniTaur that features unique structural attributes of cow antibodies for complex targets. The company was founded in 2012 and is headquartered in Emeryville, California.

How the Company Makes Money

OmniAb 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 Financial Statement Overview

Summary

OmniAb faces significant financial challenges with declining revenue and negative profit margins, although it maintains a strong gross profit margin and a stable balance sheet with low leverage. Cash flow improvements are a positive sign, but operational inefficiencies and revenue growth need addressing.

Income Statement

OmniAb's income statement reveals significant challenges, with declining revenue and negative profit margins. The TTM data shows a revenue decline of 13.9% and a net profit margin of -275.8%, indicating substantial losses. The EBIT and EBITDA margins are also deeply negative, reflecting operational inefficiencies. However, the gross profit margin remains relatively high at 78.7%, suggesting some potential for cost management improvements.

Balance Sheet

The balance sheet shows a stable financial structure with a low debt-to-equity ratio of 0.08, indicating conservative leverage. However, the return on equity is negative at -22.8%, highlighting profitability issues. The equity ratio is strong, suggesting a solid asset base relative to liabilities, which provides some financial stability.

Cash Flow

Cash flow analysis indicates mixed results. The free cash flow has grown by 36.9% in the TTM, showing improvement in cash generation. However, the operating cash flow to net income ratio is 2.28, suggesting cash flow is not yet sufficient to cover net losses. The free cash flow to net income ratio is close to 1, indicating that cash flow is nearly covering net losses, which is a positive sign.

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

• Technical Analysis Sentiment: Negative
• Last Price: 1.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OABI, the sentiment is Negative. The current price of 1.71 is below the 20-day moving average (MA) of 1.80, below the 50-day MA of 1.89, and below the 200-day MA of 2.54, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 45.46 is Neutral, neither overbought nor oversold. The STOCH value of 23.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OABI.

OmniAb Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XOMA	61 Neutral	$425.97M	―	-12.42%	―	194.98%	38.01%
CMPX	60 Neutral	$578.20M	―	-51.84%	―	-100.00%	-25.75%
OABI	53 Neutral	$209.82M	―	-22.84%	―	6.05%	2.24%
Sector *	51 Neutral	$7.95B	-0.40	-41.67%	2.21%	22.29%	-1.85%
VSTM	44 Neutral	$662.84M	―	-437.92%	―	-78.63%	1.88%
HUMA	42 Neutral	$231.22M	―	-257.38%	―	―	63.92%
CADL	33 Underperform	$274.48M	―	-55.18%	―	―	60.29%

OmniAb Corporate Events

OmniAb Announces $30M Private Placement Agreement

On August 24, 2025, OmniAb, Inc. entered into a securities purchase agreement for a private placement of 21,254,106 shares of common stock, expecting to raise approximately $30 million. The proceeds are intended for working capital and general corporate purposes. The private placement is set to close on August 26, 2025, and is conducted in accordance with Nasdaq rules. The company will file a registration statement with the SEC for the resale of the shares, and the placement is exempt from registration under the Securities Act. Leerink Partners acted as the placement agent.

OmniAb Elects Directors at Annual Shareholder Meeting

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.