OmniAb Q2 Earnings Call Highlights

OmniAb Q2 Earnings Call Highlights

Q2 revenue rose to $13.4 million from $3.9 million year over year, driven mainly by milestone payments from advancing partner programs, while the net loss narrowed to $5.9 million from $15.9 million. OmniAb raised its 2026 revenue outlook to $32 million–$36 million and increased its projected year-end cash balance to $37 million–$41 million, reflecting stronger milestone activity. The partner portfolio continued to expand, with 110 active partners, 425 programs and 34 clinical-stage programs or approved products; the company also highlighted progress in major partner assets and xPloration instrument placements. OmniAb NASDAQ: OABI reported higher second-quarter revenue and a narrower net loss as milestone payments from partner programs increased, while the company raised its full-year 2026 revenue and year-end cash outlook. Revenue for the second quarter totaled $13.4 million, compared with $3.9 million in the same period of 2025. Chief Financial Officer Kurt Gustafson said the increase was primarily driven by milestone revenue tied to partner programs advancing in clinical development. The company also recorded sales of two xPloration instruments during the quarter and modest growth in service revenue from ion channel agreements. For the first six months of 2026, revenue reached $27.8 million, up from $8.1 million in the prior-year period. Gustafson noted that milestone revenue can vary materially between quarters and said 2026 milestone activity has been more weighted toward the first half of the year than it was in 2025. OmniAb’s second-quarter net loss improved to $5.9 million, or $0.05 per share, from a loss of $15.9 million, or $0.15 per share, a year earlier. The year-to-date net loss was $13.6 million, or $0.11 per share, compared with $34.1 million, or $0.32 per share, in the comparable 2025 period. Guidance Raised Following Milestone Activity The company raised its 2026 revenue outlook to a range of $32 million to $36 million, citing increased milestone achievements during the second quarter. OmniAb also narrowed its expected range for GAAP operating expenses to $84 million to $88 million and forecast cash operating expenses of $51 million to $55 million. OmniAb ended the quarter with $52 million in cash. It now expects to end 2026 with cash and cash equivalents between $37 million and $41 million, an increase from its previous outlook. The company said accounts receivable included milestones achieved in the second quarter that had not yet been paid. Gustafson said the company expects its revenue base to expand as its clinical-stage portfolio matures, with potential royalties becoming a larger contributor as partnered products progress toward possible approvals. He said OmniAb’s infrastructure is designed to scale without operating expenses rising proportionally with revenue. Partner Portfolio Expands and Advances At the end of the second quarter, OmniAb had 110 active partners and 425 active programs. New licenses during the quarter included agreements with EnRosa Therapeutics and argenx. The company said eight of the world’s 10 largest pharmaceutical companies remain active OmniAb partners. Approximately 98% of active programs include contracted future economics for OmniAb, according to management. The company reported more than $3 billion in total potential contracted milestone payments associated with standard antibody licenses, along with an average contracted royalty rate of roughly 3.4%. OmniAb had 34 active clinical programs and approved products leveraging its technologies at quarter-end. Four programs entered the clinic during 2026 through the end of the second quarter, and management said it expects additional clinical entrants this year.