Champions Oncology Swings to Six-Month Loss Amid Rising Costs

TL;DR

**CSBR's revenue growth is overshadowed by exploding costs, leading to a net loss and making it a risky bet for the short term.**

AI Summary

CHAMPIONS ONCOLOGY, INC. (CSBR) reported a net income of $237,000 for the three months ended October 31, 2025, a significant decrease from $728,000 in the same period of 2024. For the six months ended October 31, 2025, the company posted a net loss of $230,000, a stark contrast to the net income of $2,041,000 in the prior year. Oncology revenue increased to $15,035,000 for the three-month period, up from $13,489,000, and to $29,030,000 for the six-month period, up from $27,550,000. However, total costs and operating expenses surged to $14,850,000 for the quarter and $29,372,000 for the six months, compared to $12,757,000 and $25,489,000 respectively in 2024, driven by increased research and development, sales and marketing, and general and administrative expenses. The company's cash and cash equivalents decreased from $9,785,000 on April 30, 2025, to $8,516,000 on October 31, 2025, and it reported negative working capital of $809,000. Despite the net loss and negative working capital, management believes current cash and expected cash flows are adequate for the next twelve months.

Why It Matters

This filing reveals a concerning shift for Champions Oncology, moving from profitability to a net loss over six months, despite revenue growth. For investors, the significant increase in operating expenses, particularly R&D and G&A, raises questions about cost control and future profitability, especially given the negative working capital of $809,000. Employees might face pressure if cost-cutting measures become necessary, while customers could see continued investment in the TumorGraft Technology Platform, which is crucial for drug discovery. In a competitive oncology research market, CSBR's ability to translate revenue growth into sustainable profit is critical for its long-term viability and market position.

Risk Assessment

Risk Level: high — The company reported a net loss of $230,000 for the six months ended October 31, 2025, a significant decline from a $2,041,000 net income in the prior year. Furthermore, CSBR has negative working capital of $809,000 and an accumulated deficit of $80.1 million, indicating potential liquidity challenges despite management's assertion of adequate cash for the next twelve months.

Analyst Insight

Investors should exercise caution and closely monitor CSBR's next earnings report for signs of improved cost management and a return to profitability. Consider holding off on new investments until there's clear evidence that the company can translate its revenue growth into positive net income and improve its working capital position.

Financial Highlights

debt To Equity

6.13

revenue

$29,030,000

operating Margin

-1.18%

total Assets

$30,162,000

total Debt

$18,759,000

net Income

-$230,000

eps

-$0.01

gross Margin

47.7%

cash Position

$8,516,000

revenue Growth

+5.7%

Revenue Breakdown

Key Numbers

• $230,000 — Net Loss (For the six months ended October 31, 2025, a significant swing from $2,041,000 net income in 2024.)
• $29,030,000 — Oncology Revenue (For the six months ended October 31, 2025, an increase from $27,550,000 in 2024.)
• $29,372,000 — Total Costs and Operating Expenses (For the six months ended October 31, 2025, a substantial increase from $25,489,000 in 2024.)
• $8,516,000 — Cash and Cash Equivalents (As of October 31, 2025, a decrease from $9,785,000 on April 30, 2025.)
• $809,000 — Negative Working Capital (As of October 31, 2025, indicating short-term liquidity challenges.)
• $80,121,000 — Accumulated Deficit (As of October 31, 2025, an increase from $79,892,000 on April 30, 2025.)
• $4,698,000 — Research and Development Expenses (For the six months ended October 31, 2025, up from $3,143,000 in 2024.)
• $5,544,000 — General and Administrative Expenses (For the six months ended October 31, 2025, up from $4,416,000 in 2024.)

Key Players & Entities

• CHAMPIONS ONCOLOGY, INC. (company) — Registrant
• $237,000 (dollar_amount) — Net income for three months ended October 31, 2025
• $728,000 (dollar_amount) — Net income for three months ended October 31, 2024
• $230,000 (dollar_amount) — Net loss for six months ended October 31, 2025
• $2,041,000 (dollar_amount) — Net income for six months ended October 31, 2024
• $15,035,000 (dollar_amount) — Oncology revenue for three months ended October 31, 2025
• $29,030,000 (dollar_amount) — Oncology revenue for six months ended October 31, 2025
• $8,516,000 (dollar_amount) — Cash and cash equivalents as of October 31, 2025
• $9,785,000 (dollar_amount) — Cash and cash equivalents as of April 30, 2025
• $809,000 (dollar_amount) — Negative working capital as of October 31, 2025

FAQ

Risk Factors

• Negative Working Capital [high — financial]: As of October 31, 2025, the company reported negative working capital of $809,000. This indicates potential short-term liquidity challenges as current liabilities ($22,141,000) exceed current assets ($21,332,000).
• Decreasing Cash Reserves [medium — financial]: Cash and cash equivalents decreased from $9,785,000 on April 30, 2025, to $8,516,000 on October 31, 2025. This 12.9% reduction, coupled with increasing operating expenses, raises concerns about future funding.
• Rising Operating Expenses [high — financial]: Total costs and operating expenses surged by 15.2% to $29,372,000 for the six months ended October 31, 2025, from $25,489,000 in the prior year. This increase outpaced revenue growth.
• Deteriorating Profitability [high — financial]: The company reported a net loss of $230,000 for the six months ended October 31, 2025, a significant swing from a net income of $2,041,000 in the same period last year. This indicates a substantial decline in profitability.
• Growing Accumulated Deficit [medium — financial]: The accumulated deficit increased from $79,892,000 on April 30, 2025, to $80,121,000 on October 31, 2025. This trend highlights the company's ongoing struggle to achieve sustained profitability.
• Increased R&D Spending [medium — operational]: Research and development expenses increased by 49.5% to $4,698,000 for the six months ended October 31, 2025, from $3,143,000 in the prior year. While necessary for innovation, this significant rise contributes to the current net loss.
• Higher Sales and Marketing Costs [medium — operational]: Sales and marketing expenses rose by 12.3% to $3,853,000 for the six months ended October 31, 2025, from $3,430,000 in the prior year. This increase is part of the overall surge in operating expenses.
• Increased General and Administrative Expenses [medium — operational]: General and administrative expenses grew by 25.5% to $5,544,000 for the six months ended October 31, 2025, from $4,416,000 in the prior year, further contributing to the increased operating costs.

Industry Context

Champions Oncology operates in the oncology diagnostics and services sector, a field characterized by rapid technological advancements and increasing demand for personalized medicine. The competitive landscape includes established diagnostic companies and emerging biotech firms. Key trends involve the integration of genomic data into clinical decision-making and the development of companion diagnostics.

Regulatory Implications

The company operates within a highly regulated healthcare environment. Compliance with FDA regulations for diagnostic tests and data privacy laws like HIPAA is critical. Any failure to adhere to these regulations could result in significant fines, product recalls, and reputational damage, impacting financial performance and market access.

What Investors Should Do

1. Monitor cash burn rate and runway.
2. Analyze expense control measures.
3. Evaluate the sustainability of revenue growth.
4. Assess the impact of negative working capital.

Key Dates

• 2025-10-31: End of Second Quarter — Reporting period for the 10-Q, showing a net loss of $230,000 and negative working capital of $809,000.
• 2025-04-30: End of First Quarter — Previous reporting period, with cash and cash equivalents at $9,785,000 and a positive working capital position.

Glossary

Accumulated Deficit

The cumulative net losses of a company that have not been offset by net income. It represents the total losses incurred since the company's inception. (Indicates the company's long-term profitability challenges, as the deficit increased to $80,121,000 as of October 31, 2025.)

Working Capital

The difference between a company's current assets and current liabilities. Positive working capital indicates a company can meet its short-term obligations. (The company reported negative working capital of $809,000 as of October 31, 2025, signaling potential liquidity issues.)

Noncontrolling Interest

The portion of equity of a subsidiary that is not attributable to the parent company. It represents the ownership interest of outside shareholders in the subsidiary. (A net loss attributable to noncontrolling interest of $61,000 was reported for the six months ended October 31, 2025.)

Deferred Revenue

Revenue that has been received by a company for goods or services that have not yet been delivered or rendered. It is recorded as a liability until earned. (Deferred revenue decreased from $15,443,000 on April 30, 2025, to $12,338,000 on October 31, 2025, impacting current liabilities.)

Year-Over-Year Comparison

Compared to the prior year's six-month period, Champions Oncology has experienced a significant downturn. While oncology revenue saw a modest increase of 5.7% to $29,030,000, total costs and operating expenses surged by 15.2% to $29,372,000. This divergence led to a net loss of $230,000, a stark contrast to the $2,041,000 net income reported previously. Furthermore, cash and cash equivalents have decreased, and the company now reports negative working capital, indicating a worsening financial condition.

Key Financial Figures

• $0.001 — ich Registered Common Stock, par value $0.001 per share CSBR The Nasdaq Stock Market

Filing Documents

• csbr-20251031.htm (10-Q) — 883KB
• csbrq11031202510-qex311.htm (EX-31.1) — 10KB
• csbrq11031202510-qex312.htm (EX-31.2) — 10KB
• csbrq11031202510-qex321.htm (EX-32.1) — 8KB
• 0001628280-25-057082.txt ( ) — 5433KB
• csbr-20251031.xsd (EX-101.SCH) — 37KB
• csbr-20251031_cal.xml (EX-101.CAL) — 55KB
• csbr-20251031_def.xml (EX-101.DEF) — 156KB
• csbr-20251031_lab.xml (EX-101.LAB) — 525KB
• csbr-20251031_pre.xml (EX-101.PRE) — 349KB
• csbr-20251031_htm.xml (XML) — 776KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. Condensed Consolidated Balance Sheets as of October 31, 2025 (unaudited) and April 30, 202 5 4 Unaudited Condensed Consolidated Statements of Operations for the Three and Six Months Ended October 31, 2025 and 2024 5 Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity for the Six Months Ended October 31, 2025 and 2024 6 Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended October 31, 2025 and 2024 7 Notes to Unaudited Condensed Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 20

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 24

Controls and Procedures

Item 4. Controls and Procedures 25

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 26

Risk Factors

Item 1A. Risk Factors 26

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 26

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 26

Other Information

Item 5. Other Information 26

Exhibits

Item 6. Exhibits 27 3

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CHAMPIONS ONCOLOGY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) October 31, 2025 April 30, 2025 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 8,516 $ 9,785 Accounts receivable, net 11,539 11,204 Prepaid expenses and other current assets 1,277 1,369 Total current assets 21,332 22,358 Operating lease right-of-use assets, net 4,348 5,080 Property and equipment, net 3,951 4,375 Other long-term assets 196 196 Goodwill 335 335 Total assets $ 30,162 $ 32,344 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 5,993 $ 4,248 Accrued liabilities 2,188 2,556 Current portion of operating lease liabilities 1,525 1,471 Other current liability 97 135 Deferred revenue 12,338 15,443 Total current liabilities 22,141 23,853 Non-current operating lease liabilities 3,744 4,634 Other non-current liabilities 46 85 Total liabilities $ 25,931 $ 28,572 Stockholders' equity: Common stock, $ .001 par value; 200,000,000 shares authorized; 14,006,659 and 13,897,503 shares issued; and 13,886,326 and 13,777,170 outstanding as of July 31, 2025 and April 30, 2025, respectively 14 14 Treasury stock, at cost ( 708 ) ( 708 ) Additional paid-in capital 84,985 84,358 Accumulated deficit ( 80,121 ) ( 79,892 ) Total stockholders' equity attributable to Champions Oncology, Inc. 4,170 3,772 Noncontrolling interest 61 — Total stockholders' equity 4,231 3,772 Total liabilities and stockholders' equity $ 30,162 $ 32,344 The accompanying notes are an integral part of these condensed consolidated financial statements. 4 CHAMPIONS ONCOLOGY, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in Thousands, Except Per Share Amounts) Three Months Ended October 31, Six Months Ended October 31, 2025 2024 2025 2024 Oncology revenue $ 15,035 $ 13,489 $ 29,030 $ 27,550 Costs and operating expenses: Cost of oncology revenue 7,262 7,428 15,257 14

View Full Filing

View this 10-Q filing on SEC EDGAR