Champions Oncology Q3 Services Revenue Rises 32% to $16.6M, EBITDA Positive
Champions Oncology reported Q3 services revenue record with core study revenue up 32% to $16.6M, delivering a third straight quarter of positive adjusted EBITDA at $575K. Total revenue slid 3% to $16.6M due to absence of data income and gross margin narrowed to 47% from 61%.
1. Q3 Financial Performance
Champions Oncology delivered $16.6 million in total revenue for Q3, down 3% from $17.0 million year-over-year. Core study services revenue reached a record $16.6 million, representing 32% growth, and adjusted EBITDA was positive at $575,000 for the third consecutive quarter.
2. Margin Pressure and Cost Management
Gross margin contracted to 47% from 61% a year ago, driven by over $2 million in outsourced laboratory work. Management plans to bring lab operations in-house to reduce costs and improve margins in coming periods while continuing to invest in strategic priorities.
3. Data Business Progress
No data revenue was recognized this quarter, but the company closed a six-figure data transaction expected to contribute revenue in Q4. Early traction in smaller data deals suggests the segment could become a more regular revenue source over time.
4. Cash Flow and Investment
Operating expenses rose as investments in growth initiatives increased, resulting in net cash outflow from operating activities of $1.4 million. The PDX Bank platform remains a key differentiator sustaining customer relationships and supporting disciplined capital allocation.