OmniAb’s Exploration Platform: Contradictory Deployments and Revenue Claims in 2026 Q2 Call

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Date of Call: Aug 6, 2026

Financials Results

• Revenue: $13.4M for Q2, compared to $3.9M in Q2 2025; YTD revenue $27.8M vs $8.1M in 2025 period.
• EPS: Net loss of $0.05 per share vs net loss of $0.15 per share in Q2 2025; YTD net loss $0.11 per share vs $0.32 per share in prior period.

Guidance:

• Full-year revenue guidance raised to $32-$36M.
• Full-year operating expense expected in range of $84-$88M.
• Full-year cash operating expense expected in range of $51-$55M.
• Expected year-end cash balance of $37-$41M.
• Effective tax rate for full year expected to remain at approximately 0%.

Business Commentary:

Revenue Growth and Clinical Milestones:

• Omniab Inc. reported revenue of $13.4 million for Q2 2026, compared with $3.9 million in the same quarter in 2025, showing a significant increase.
• The growth was primarily driven by an increase in milestone revenue reflecting the progress of partners' programs in the clinic.

Active Programs and Partner Expansion:

• The company ended Q2 with 425 active programs, reflecting growth despite some normal attrition, with 98% including contracted future economics.
• This increase was due to new program starts and the addition of new licenses, including agreements with notable companies like Argenix and Enosar Therapeutics.

Exploration Platform Sales and Revenue Streams:

• Omniab achieved the sale of two instruments in Q2, marking an important milestone for the Exploration platform.
• The sales indicate strong commercial interest and are expected to generate multiple revenue streams, including consumables and software subscriptions.

Financial Guidance and Cash Position:

• The company raised its full-year 2026 financial guidance, expecting revenue to be in the range of $32 to $36 million.
• This adjustment was based on increased milestone achievements and a strengthened cash position, ending the quarter with $52 million in cash.

Sentiment Analysis:

Overall Tone: Positive

• Management expressed strong performance: 'We're excited to report that the programs... continue to move into the clinic and to make progress...'. Raised full-year guidance and noted 'increased milestone achievements' and 'continued advancements in our partner portfolio'. 'We feel really good about where we are right now' and 'we're looking forward to some exciting updates'.

Q&A:

• Question from Matt Hewitt (Craig Hallam): Congratulations on the strong quarter. Maybe to start off, congratulations on the exploration sales. Given that you do have a few in the ecosystem at the moment, what are you seeing from a utilization standpoint? Is that starting to tick up? And as far as the sales pipeline is concerned, you know, how is that shaping up? And will that maybe be lumpy over the near term? But are you starting to see maybe a cadence where you could start to see more consistent sales there?
  Response: Management is very excited about the exploration opportunity and sees its potential to create diverse revenue streams. Early sales momentum with two units sold in the quarter, but it's still early to comment on consumables; more details will be shared at the upcoming Investor and Analyst Day.

• Question from Matt Hewitt (Craig Hallam): Obviously, the funding environment for pharma and biotech has gotten much better. And I'm curious whether or not you're seeing that already, or is there typically a lag? If so, when do you anticipate, you know, some of those dollars might start to flow to you.
  Response: Management sees growth in partners and programs, with bigger partners pursuing larger indications and smaller, well-funded biotechs like Rosa Therapeutics engaging. New licenses with companies like Argenix demonstrate strong interest and activity.

• Question from Brendan Smith (TD Cowan): great thanks for taking the questions guys and congrats on the progress here uh maybe just kind of a quick um follow-up first on on exploration I just want to double check and make sure that we're thinking about the impact to margins there um nice to see the revenues coming through just wondering how we should think about what your expectations are and kind of relative impact to margins just as that product ramps up over the coming quarters
  Response: Exploration instruments and consumables are expected to have very good margins, though quarterly variability is expected due to mix. Service revenue is also a component.

• Question from Brendan Smith (TD Cowan): And then, excuse me, separately, I wanted to ask, in your existing and potential partner conversations too, how are you kind of thinking about its relative contribution maybe to new partner deals? Is OmniUltra kind of been a big focus? Maybe what's just kind of been the feedback there versus some of the other offerings kind of over the next, you know, maybe 12, 18 months?
  Response: OmniUltra and OmniDAB are opening new markets and driving substantial inbound interest, particularly for high-value targets like ion channels and GPCRs. Both technologies are well suited for important applications and have generated significant dialogue and new programs.

• Question from Michael King (Rodman and Renshaw): Congrats on the progress and the increased guidance. Two questions, financial questions. One is, even though with the raised revenue guidance, You guys are still facing the $20-plus million gap between your spend and the expected revenues. So I just wonder how we should think about how you're going to try to self-fund. Are you going to have to draw funds from outside, or do you close that gap? Are you going to continue to think you're going to try to raise the value of individual contracts?
  Response: With a strong cash position and clinical milestone-driven revenue growth expected to increase, the company anticipates closing the funding gap internally as royalties kick in and expenses remain tightly controlled. Visibility from late-stage assets and new deal flow provides confidence.

• Question from Michael King (Rodman and Renshaw): And related to that, I just, when we think about the model longer term, we just think the pace of deal flow, advising our model and the way we look at things. Just curious about how you feel is going to go. Do you think that this is a model that accelerates with time, stays steady over time with greater value? How should we think about the OmniAB model sort of on a three to five year horizon?
  Response: The model is expected to accelerate with differentiated technologies driving partners and programs. Growth from downstream milestones and future royalties, including tiered royalty agreements, adds significant power and long-term value to the business.

• Question from Stephen Willey (Stiefel): I know you're not showing any of the data in this deck specifically, but was curious if you could provide some color around how the number of post-discovery preclinical programs has evolved over the last six months and how you see growth in that kind of defined subgroup through the end of the year. Just trying to get a sense of how the clinical stage portfolio could actually grow over the coming months.
  Response: Management sees nice progression of programs through stages, with four new clinical entrants this year and more expected. Regulatory changes could be a long-term tailwind for some partners, facilitating preclinical to clinical progression.

• Question from Michael on behalf of Puneet Sauda (Lear Inc. Partners): I was hoping to get a bit of color on the guide. It seems like you're implying basically... Lowest single digits per quarter in the back half. I'm curious how much of that is conservatism on your part versus any sort of one-off dynamics we should be aware of in the front half. Obviously, the milestones for sure, but what are the expectations in the back half?
  Response: Milestone revenue is front-end loaded for 2026, but service revenue is expected to be better in 2026 than 2025. There is no negativity in other revenue lines; the guidance reflects the milestone pattern.

• Question from Michael on behalf of Puneet Sauda (Lear Inc. Partners): And then my other question, I'm hoping to get... We're thinking about the back half of the year. A little bit of color on your portfolio's exposure to lab-in-the-loop and applying AI for antibody drug discovery. I know you've highlighted some interest there from exploration. We've seen other tools companies, Omni, have leveraged that. And to what extent is that influencing the business?
  Response: AI and ML are seen as a tailwind. The company's OmniDeep suite integrates AI/ML with proprietary data from transgenic animals, and the Exploration platform generates large datasets for training models, enhancing efficiency. This aligns with industry trends toward accelerated drug discovery.

Contradiction Point 1

Timeline and Launch Status of AI/ML Tools (OmniDeep)

Contradiction on when the OmniDeep AI/ML tools were launched and integrated.

Puneet Sauda (Lear Inc. Partners) - Question asked by Michael on his behalf - Puneet Sauda (Lear Inc. Partners) - Question asked by Michael on his behalf

2026Q2: The **OmniDeep** brand (launched >3 years ago) is a suite of AI/ML in silico tools integrated throughout its technology stack... - [Kurt Gustafson](CFO)

Can you provide color on your portfolio's exposure to lab-in-the-loop and AI-driven antibody drug discovery, and to what extent this is influencing the business? - Matt Hewitt (Craig Hallam)

2026Q2: Differentiated life sciences instruments like **xPloration** have potential to create diverse and durable revenue streams... The full commercial opportunity is still being evaluated, with more details to be shared at the Investor and Analyst Day. - [Amechi Nwachuku](CFO)

Contradiction Point 2

Revenue Contribution from the Exploration Platform

Contradiction on whether Exploration is already contributing to revenue growth.

Matt Hewitt (Craig Hallam) - Matt Hewitt (Craig Hallam)

2026Q2: The company is very excited about the **Exploration** platform's potential... It's still early to discuss consumables revenue, but they now have four units in the field. - [Matt Foer](CEO)

How are utilization trends, sales pipeline development, and near-term sales consistency progressing? - Matt Hewitt (Craig-Hallum)

2026Q2: The **xPloration opportunity is exciting with greater conviction growing. It is contributing to revenue growth**, with two units sold in Q2 and four in the field. - [Matt Foehr](CEO)

Contradiction Point 3

Milestone/Royalty Revenue Timing and Lumpiness

Contradiction on whether milestone revenue is lumpy or consistently forecasted.

Josh (Stifel, on for Stephen Willey) - Josh (Stifel, on for Stephen Willey)

2026Q2: The revenue guidance for 2026 is for the full year. Milestone-based revenue can be lumpy, but the company has forecasted several clinical events throughout the remainder of the year... - [Matt Foehr](CEO)

How do shifts in priorities between academic and industry-focused deals impact the timing of milestone/royalty revenue, particularly with upcoming clinical catalysts and second-half weighting? - Josh (Stifel, on for Stephen Willey)

2026Q1: Milestone-based revenue can be lumpy... The company has forecasted several clinical events throughout the remainder of the year, building on a strong Q1. - [Matt Foehr](CEO)

Contradiction Point 4

Deployment Timeline for the Exploration Platform

Inconsistent reporting on the number of deployed instruments.

Matt Hewitt (Craig Hallam) - Matt Hewitt (Craig Hallam)

2026Q2: The company now has four units in the field. - [Matt Foer](CEO) & [Amechi Wachuku](CTO)

"Given the exploration sales, how is utilization trending, and is it starting to increase?" - Matthew Hewitt (Craig-Hallum Capital Group)

20260305-2025 Q4: As of the end of 2025, 2 instruments were deployed. - [Matthew Foehr](CEO)

Contradiction Point 5

Growth Outlook for Partner Programs

Contradiction on the visibility and predictability of revenue growth.

Matt Hewitt (Craig Hallam) - Matt Hewitt (Craig Hallam)

2026Q2: The company is seeing nice growth in partners and programs, net of attrition... This indicates a positive trend. - [Matt Foer](CEO)

Have you observed improvements in the pharma and biotech funding environment? - Brendan Smith (TD Cowen)

20260305-2025 Q4: The 2026 revenue guidance is based on specific clinical/regulatory events for existing programs, not on broad market recovery. Revenue is lumpy and tied to milestone achievements. - [Kurt Gustafson](CFO)

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