CSBR

Champions is not a cash-burning biotech but a technology-enabled oncology CRO selling PDX/TumorGraft studies, model-data licensing, and Lumin bioinformatics to pharma. FY2025 (ended April 30) was a genuine operating turnaround: revenue grew 13.5% to $56.9M while the company swung from a $7.36M operating loss in FY2024 to $4.55M of operating income, and from prior-year net losses to $4.70M net income ($0.33 diluted EPS). The MD&A makes the mechanics concrete — cost of revenue fell to 49.9% of sales from 58.6% (gross margin expansion on a larger top line), G&A dropped 15.6%, and total operating expenses fell 8.9% even as revenue rose. Critically, operating cash flow of $7.39M (+220%) exceeds reported net income, and cash more than tripled to $9.79M, so the profit is real and self-funding, not an accrual artifact.

Valuation is the supporting leg: at $6.43 the stock is 1.6x sales and 19.5x trailing EPS for a business that just inflected to profitability and generates an ~8% operating-cash-flow yield on its $88.6M market cap. That is undemanding if even part of FY2025's margin gain sticks. The optionality kicker is the drug-discovery pipeline — management states it 'regularly evaluate[s] strategic options... including potential spin-out transactions or capital raises,' a path to surface value not reflected in the services-only multiple.