- Revenue Growth: 11% YoY increase to $15 million, driven by reduced cancellations and higher conversion of booked work.
- Adjusted EBITDA: $800,000, with full-year positive guidance maintained despite $2 million rise in operating expenses.
- Gross Margin Expansion: 52% (vs. 45% last year) due to operational efficiencies, with potential for further growth as radiolabeling scales.
- Operating Expenses: $7 million (up $2 million YoY), reflecting strategic investments in data platform and Corellia's R&D.
- Radiolabeling Demand: Strengthened strategic focus, with customer demand validating its importance and driving in-house expansion plans.
Operational Highlights
The company's radiolabeling and radiopharmaceutical support workflows are a key highlight, with demand from customers reinforcing the strategic importance of this capability. Champions is also investing in its data platform, enhancing its functionality and expanding its utility for pharma partners. As CEO Robert Brainin noted, the company is focused on execution, maximizing conversion of existing bookings, and advancing capabilities to distinguish themselves in the market.
Investment in Growth Initiatives
Operating expenses were $7 million, up $2 million from last year, primarily due to investments in the data platform and Corellia's target discovery initiatives. The company expects some of these increases to be temporary. Corellia, the company's wholly owned subsidiary, is making progress in discussions with potential venture capital funding partners, with plans to redirect investment dollars toward accelerating growth in the data business once external funding is secured.
Outlook and Valuation
Champions believes it is well-positioned to deliver year-over-year revenue growth and positive adjusted EBITDA for the full fiscal year. Analysts estimate next year's revenue growth at 3.4%. With a P/S Ratio of 2.29 and an EV/EBITDA of 26.03, the market is pricing in a certain level of growth. The company's ROE of 57.5% and ROIC of 23.24% indicate a strong ability to generate returns on equity and invested capital. However, the P/E Ratio of 40.94 suggests that the stock may be trading at a premium.