Key Highlights

  • Third-quarter Revenue was USD 4.0 million compared with USD 2.2 million, driven by service and xPloration revenue.
  • Nine-month revenue was USD 31.8 million versus USD 10.3 million, primarily from higher milestone revenue.
  • The net loss was USD 15.7 million, or USD 0.12 per share, for the third quarter.
  • A new Eli Lilly ion channel deal carries an upfront payment and up to USD 370 million in milestones.

Revenue Grows From a Small Base

OmniAb, Inc. (NASDAQ:OABI) reported third-quarter 2026 revenue of USD 4.0 million compared with USD 2.2 million in the prior-year period, with the increase driven primarily by service and xPloration revenue, including work on antibody and ion channel programs and new ion channel service agreements signed late last year and earlier this year. Nine-month revenue was USD 31.8 million versus USD 10.3 million, primarily from milestone revenue that was more front-loaded than last year.

The net loss for the third quarter was USD 15.7 million, or USD 0.12 per share.

Lilly Deal and Platform Updates

OmniAb signed a license with Eli Lilly for a novel ion channel program, receiving an upfront payment and becoming eligible for up to USD 370 million in research, development and commercial milestone payments plus tiered royalties on global net sales. Chief executive Matthew Foehr said the company is pleased to work with Lilly given its focus on major unmet needs and OmniAb's expertise in ion channels.

The xPloration platform, an AI-powered high-throughput single B-cell screening platform, is now available to all potential customers. Management described the Business as designed around diversified, long-term and durable revenue streams. Each xPloration instrument sale establishes a broader customer relationship, with proprietary chips and other consumables, software licenses and multi-year service contracts adding recurring revenue. The company also launched OmniTides, a peptide discovery offering built on its OmniUltra transgenic chicken that provides an integrated discovery-to-synthesis workflow with Manufacturing by qualified contract research organizations.

Outlook

Management said strong business performance resulted in another raise to its 2026 revenue and cash outlook, and that partner programs continue to progress through development stages. The company said service revenue from the Lilly collaboration begins contributing in the fourth quarter, and that the timing of milestone revenue varies from quarter to quarter, with this year more front-end loaded. xPloration revenue is guided to USD 2 million to USD 3 million in 2026, with management projecting that it doubles in 2027 and doubles again in 2028 as consumables, software and service build recurring revenue.

Total cost and Operating Expense was USD 20.4 million in both the current and prior-year quarters, with lower R&D offset by higher G&A and cost of sales tied to instrument sales, and year-to-date operating expense was USD 62.7 million versus USD 63.5 million. Operating expense comparisons were affected by a noncash write-off in the first quarter and other one-time items, which would have shown a much larger decrease absent those items. These themes were highlighted at the company's Investor and Analyst Day held earlier this month in Emeryville.

Licensing and Milestone Indicators

Items to track include milestone timing, xPloration utilization, new licensing activity and the progression of partner programs through clinical stages.