Champions Oncology Reports Net Income of $728,000 and Revenue Growth for Q3 2024

Champions Oncology, Inc. reported a net income of $728,000 for the three months ended October 31, 2024, a significant turnaround from a net loss of $2.1 million in the same period last year. For the six months ended October 31, 2024, the company achieved a net income of $2.0 million compared to a loss of $4.6 million in the prior year. Revenue from oncology services increased by 16.6% to $13.5 million for the three months and by 14.2% to $27.6 million for the six months, driven by improved bookings and operational efficiencies.

The company’s total operating expenses decreased by 5.7% to $12.8 million for the three months and by 11.0% to $25.5 million for the six months, primarily due to reductions in research and development costs, which fell by 32.8% and 40.8% for the respective periods. General and administrative expenses also saw a notable decline of 27.3% for the three months and 20.3% for the six months, attributed to lower compensation and recruitment costs. The cost of oncology services rose by 12.2% for the three months and by 1.4% for the six months, reflecting increased expenses related to lab supplies.

Champions Oncology's balance sheet as of October 31, 2024, showed total assets of $25.2 million, a decrease from $26.1 million at the end of the previous fiscal period. Current liabilities also decreased significantly from $21.5 million to $18.9 million, primarily due to a reduction in deferred revenue. The company reported an accumulated deficit of $82.6 million, down from $84.6 million, indicating a gradual improvement in financial health.

In terms of operational metrics, the company reported an increase in accounts receivable, which rose to $10.5 million from $9.5 million, while unbilled services also increased to $6.6 million. The company’s employee headcount remained stable, with no significant changes reported. Looking ahead, Champions Oncology expressed optimism about its ability to continue increasing revenues and reducing costs, although it acknowledged the need for potential capital raises to support ongoing operations and strategic initiatives.

The company is actively pursuing opportunities to enhance its drug discovery capabilities and expand its market presence, including a recent licensing agreement expected to generate approximately $5 million in revenue. However, management cautioned that uncertainties in market conditions and the need for additional financing could impact future operations.