Q2 2026 OmniAb Inc Earnings Call

August 6, 2026

Operator 3: Good afternoon, welcome to OmniAb Inc.'s second quarter 2026 financial results and business update conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the call over to Kurt Gustafson, OmniAb Inc.'s Chief Financial Officer. You may begin. Thank you.

Operator: Good afternoon, welcome to OmniAb Inc.'s second quarter 2026 financial results and business update conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the call over to Kurt Gustafson, OmniAb Inc.'s Chief Financial Officer. You may begin. Thank you.

Speaker #1: A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the call over to Kurt Gustafson, OmniAb, Inc.'s Chief Financial Officer.

Speaker #1: You may begin. Thank you.

Kurt Gustafson: Thank you, operator, good afternoon, everyone. Thank you all for joining our second quarter 2026 financial results conference call. There are slides to accompany today's prepared remarks, and they're available in the Investors section of our website at omniab.com. Before we begin, I'd like to remind listeners that comments made during this call by OmniAb's management will include forward-looking statements within the meaning of the federal securities laws. These forward-looking statements involve risks and uncertainties that could cause actual results to be materially different from any anticipated results. The forward-looking statements are qualified by the cautionary statements contained in today's press release and our SEC filings. Importantly, this conference call contains time-sensitive information that is accurate only as of the date of the live broadcast, today, 6 August 2026.

Speaker #2: Thank you, operator. And good afternoon, everyone. Thank you all for joining our second quarter 2026 financial results conference call. There are slides to accompany today's prepared remarks, and they're available in the investor section of our website at omni-ab.com.

Speaker #2: Before we begin, I'd like to remind listeners that comments made during this call by OmniAb's management will include forward-looking statements within the meaning of the Federal Securities Laws.

Speaker #2: These forward-looking statements involve risks and uncertainties that could cause actual results to be materially different from any anticipated results. These forward-looking statements are qualified by the cautionary statements contained in today's press release and our SEC filings.

Kurt Gustafson: These forward-looking statements involve risks and uncertainties that could cause actual results to be materially different from any anticipated results. The forward-looking statements are qualified by the cautionary statements contained in today's press release and our SEC filings. Importantly, this conference call contains time-sensitive information that is accurate only as of the date of the live broadcast, today, 6 August 2026.

Speaker #2: Importantly, this conference call contains time-sensitive information that is accurate only as of the date of the live broadcast, today, August 6, 2026. Except as required by law, OmniAb undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call.

Kurt Gustafson: Except as required by law, OmniAb undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call. Joining me on the call this afternoon is Matt Foehr, OmniAb's President and CEO, as well as Amechi Nwachuku, our recently appointed Chief Operating Officer. During today's call, Matt is going to cover some business highlights, I'll review our Q2 financial results and update our full year guidance, then we'll open the call to questions. With that, let me turn the call over to Matt.

Speaker #2: Joining me on the call this afternoon is Matt Foehr, OmniAb's president and CEO. As well as Meiji Wachuku, our recently appointed Chief Operating Officer.

Speaker #2: call, Matt is going to cover some business highlights and I'll review our Q2 financial results and update our full-year guidance. And then we'll open the call to questions.

Speaker #2: And with that, let me turn the call over to Matt.

Speaker #3: Thanks, Kurt. Good afternoon, everyone. And thanks for joining our second quarter call. I'll start now on slide number 4. We continue to with the second quarter strong performance led by advancements in our portfolio of partnered programs.

Matt Foehr: Thanks, Kurt. Good afternoon, everyone, and thanks for joining our Q2 call. I'll start now on slide number four. We continue to see momentum in the business with the Q2's strong performance led by advancements in our portfolio of partnered programs. Our business here at OmniAb has been designed to benefit from long-term and durable revenue streams. We're excited to report that the programs derived from our differentiated discovery technologies continue to move into the clinic and to make progress through later-stage clinical development. This clinical progression gives visibility into the value that can be realized as our pipeline matures and as an increasing number of partnered programs reach milestones and approach potential royalty generation. Our novel technologies reinforce our position as a key enabling technology licensing partner and support both existing and new partnerships.

Speaker #3: Our business here at OmniAb has been designed to benefit from long-term and durable revenue streams. We're excited to report that the programs derived from our differentiated discovery technologies continue to move into the clinic and to make progress through later-stage clinical development.

Speaker #3: This clinical progression gives visibility into the value that can be realized as our pipeline matures, and as an increasing number of partnered programs reach milestones and approach potential royalty generation.

Matt Foehr: This clinical progression gives visibility into the value that can be realized as our pipeline matures and as an increasing number of partnered programs reach milestones and approach potential royalty generation. Our novel technologies reinforce our position as a key enabling technology licensing partner and support both existing and new partnerships. Novel differentiated technologies and our capabilities keep us at the forefront of next-generation discovery, enabling meaningful value creation for our stakeholders and the broader industry. We're pleased to note that both of our most recently launched antibody generation technologies, which are OmniUltra and OmnidAb, are opening up new markets and important new opportunities for us. We're seeing an increase in our chicken-derived technologies producing programs that are now in clinical trials. For xPloration, we saw the sale of two instruments during the quarter as we continue to build a very strong foundation for that element of our business. We think xPloration gives us an important opportunity to broaden our reach, diversify our revenue streams, and deliver greater value for our stakeholders and for our customers.

Speaker #3: Our novel technologies reinforce our position as a key enabling technology licensing partner, and support both existing and new partnerships. Novel differentiated technologies and our capabilities keep us at the forefront of next-generation discovery, enabling meaningful value creation for our stakeholders and the broader industry.

Matt Foehr: Novel differentiated technologies and our capabilities keep us at the forefront of next-generation discovery, enabling meaningful value creation for our stakeholders and the broader industry. We're pleased to note that both of our most recently launched antibody generation technologies, which are OmniUltra and OmnidAb, are opening up new markets and important new opportunities for us. We're seeing an increase in our chicken-derived technologies producing programs that are now in clinical trials. For xPloration, we saw the sale of two instruments during the quarter as we continue to build a very strong foundation for that element of our business. We think xPloration gives us an important opportunity to broaden our reach, diversify our revenue streams, and deliver greater value for our stakeholders and for our customers.

Speaker #3: We're pleased to note that both of our most recently launched antibody generation technologies—which are on the Ultra and OmniDAb—are opening up new markets and important new opportunities for us.

Speaker #3: And we're seeing an increase in our chicken-derived technologies producing programs that are now in clinical trials. And for exploration, we saw the sale of two instruments during the quarter, as we continue to build a very strong foundation for that element of our business.

Speaker #3: We think exploration gives us an important opportunity to broaden our reach, diversify our revenue streams, and deliver greater value for our stakeholders and for our customers.

Speaker #3: Ongoing discussions with our partners—some very recent market research—and our growing funnel of high-quality prospects evaluating the exploration system for use in their labs—gives us increasing confidence in the potential market opportunity.

Matt Foehr: Ongoing discussions with our partners, some very recent market research, and our growing funnel of high-quality prospects evaluating the xPloration system for use in their labs gives us increasing confidence in the potential market opportunity. We're also really excited to have welcomed here Amechi to our team, who's an established and highly experienced global executive to help lead and grow the business. Lastly, we're encouraged by the continued progress across our partner programs that drove another very strong quarter for us. We're again raising our full year 2026 financial guidance by increasing both our revenue and our cash outlook, which we view as important indicators of the value that's embedded in our growing portfolio of partnered programs that have contracted downstream economics. Kurt will speak to our updated guidance in greater detail during his remarks.

Speaker #3: We're also really excited to have welcomed here Meiji to our team, who's an established and highly experienced global executive, to help lead and grow the business.

Speaker #3: And lastly, we're encouraged by the continued progress across our partner programs that drove another very strong quarter for us. And so we're again raising our full-year 2026 financial guidance by increasing both our revenue and our cash outlook, which we view as important indicators of the value that's embedded in our growing portfolio of partnered programs that have contracted downstream economics.

Speaker #3: Kurt will speak to our updated guidance in greater detail during his remarks. I'd also like to take a moment to highlight the continued expansion of our platform as our innovation engine advances novel technologies that we believe further differentiate and strengthen our value proposition.

Matt Foehr: I'd also like to take a moment to highlight the continued expansion of our platform as our innovation engine advances novel technologies that we believe further differentiate and strengthen our value proposition. We have a growing ecosystem of partners, that gives us a pulse on the work that partners are doing and that they plan to do, and it also gives us a unique vantage point on the industry's needs more broadly. We leverage that vantage point as we continue to enhance our technologies, our workflows, and our capabilities. I want to highlight xPloration here on this slide number five. xPloration extends our business and nicely complements our novel antibody generation technologies.

Speaker #3: We have a growing ecosystem of partners, and that gives us a pulse on the work that partners are doing and that they plan to do.

Speaker #3: And it also gives us a unique vantage point on the industry's needs more broadly. We leverage that vantage point as we continue to enhance our technologies, our workflows, and our capabilities.

Speaker #3: And I want to highlight exploration here on this slide, slide number 5. Exploration extends our business and nicely complements our novel antibody generation technologies.

Speaker #3: Exploration is our proprietary high-throughput machine learning and artificial intelligence. The platform includes a competitively priced instrument and proprietary single-use consumables, as well as annual software subscriptions and maintenance contracts.

Matt Foehr: xPloration is our proprietary high-throughput single B-cell screening platform that leverages machine learning and artificial intelligence. The platform includes a competitively priced instrument and proprietary single-use consumables, as well as annual software subscriptions, and maintenance contracts. It therefore has potential to generate multiple revenue streams to our business. We achieved an important milestone within Q2 with the sale of two instruments, while strong commercial interest continues to expand our sales pipeline. Early feedback highlights xPloration's rapid runtimes, ease of use, and overall robustness. With these user benefits, we strongly believe we have the right technology at the right time, as we're entering an era when our partners and the broader industry increasingly recognize the value of lab automation and high-value and high-impact instrumentation for large-scale proprietary data generation and AI and ML-aided screening and selection.

Speaker #3: So it therefore has potential to generate multiple revenue streams to our business. We achieved an important milestone within Q2 with the sale of two instruments, while strong commercial interest continues to expand our sales pipeline.

Speaker #3: Early feedback highlights exploration's rapid runtimes, ease of use, and overall robustness. With these, user benefits, we strongly believe we have the right technology at the right time as we're entering an era when our partners and the broader industry increasingly recognize the value of lab automation and high-value and high-impact instrumentation for large-scale proprietary data generation and AI and ML-aided screening and selection.

Speaker #3: We continue to be very excited about what this technology can contribute to the business and look forward to sharing more with you at our upcoming Investor and Analyst Day on October 6, which I'll talk more about in a moment.

Matt Foehr: We continue to be very excited about what this technology can contribute to the business and look forward to sharing more with you at our upcoming Investor and Analyst Day on 6 October that I'll talk more about in a moment. I'll turn now to some of our metrics, starting on slide number six. At the end of Q2, we had 110 active partners. In Q2, new licenses included agreements with EnRosa Therapeutics and argenx. argenx is especially notable given that they're a global leader with a strong heritage of innovative R&D and are described as leading a new era of innovation in immunology. We think our technologies are well-positioned for some of the things that we think they're looking to achieve in novel drug discovery.

Speaker #3: I'll turn now to some of our metrics, starting on slide number 6. At the end of the second quarter, we had 110 active partners.

Speaker #3: In Q2, new licenses included agreements with Enrosa Therapeutics and Argenics. Argenics is especially notable given that they're a global leader with a strong heritage of innovative R&D and are described as, quote, "leading a new era of innovation in immunology." We think our technologies are well positioned for some of the things that we think they're looking to achieve in novel drug discovery.

Speaker #3: The mix of our partners across discovery-stage companies, large pharma, and academic institutions remains really well balanced, and a majority of our partners are headquartered here in the US, with the remainder primarily in Europe and in Asia.

Matt Foehr: The mix of our partners across discovery stage companies, large pharma, and academic institutions remains really well-balanced, and a majority of our partners are headquartered here in the US, with the remainder primarily in Europe and Asia. We're also proud that eight of the 10 largest pharmaceutical companies in the world continue to be active partners of OmniAb, which we believe demonstrates the quality and the strength of our partner base and further validates the value of our technology platforms. Now I'll move on to slide number seven, and you'll see here our active programs metric. We ended the quarter with 425 active programs, with an increase that reflects both the addition or new program starts and some normal attrition that occurs as partners refine their pipelines and their priorities. Importantly, about 98% of our active programs include contracted future economics to OmniAb.

Speaker #3: We're also proud that 8 of the 10 largest pharmaceutical companies in the world continue to be active partners of OmniAb, which we believe demonstrates the quality and the strength of our partner base and further validates the value of our technology platforms.

Speaker #3: Now I'll move on to slide number 7, and you'll see here our active program metric. We ended the quarter with 425 active programs. With an increase that reflects both the addition or new program starts and some normal attrition that occurs as partners refine their pipelines and their priorities.

Speaker #3: Importantly, about 98% of our active programs include contracted future economics to OmniAb. Across our portfolio, we have more than $3 billion in total contracted potential milestone payments on standard antibody licenses, with an average contracted royalty rate of approximately 3.4%.

Matt Foehr: Across our portfolio, we have more than $3 billion in total contracted potential milestone payments on standard antibody licenses, with an average contracted royalty rate of approximately 3.4%. On the clinical front, slide number eight here shows our partners' active clinical programs and approved products. At the end of Q2, there were 34 active clinical programs and approved products that leverage our technologies. That total reflects both new entrants into the clinic and attrition. We've had four new clinical entrants so far in 2026, and we continue to anticipate new clinical entrants. We've seen important clinical advancement within these active clinical programs year to date, and we're looking forward to further positive advancement activity later this year. I note that we have approximately $340 million in remaining contracted potential milestone payments to OmniAb for these active clinical stage programs.

Speaker #3: On the clinical front, slide number 8 here shows our partners' active clinical programs and approved products. At the end of Q2, there were 34 active clinical programs and approved products that leverage our technologies.

Speaker #3: That total reflects both new entrants into the clinic and attrition. We've had 4 new clinical entrants so far in 2026, and we continue to anticipate new clinical entrants.

Speaker #3: We've seen important clinical advancement within these active clinical programs year to date, and we're looking forward to further positive advancement activity later this year.

Speaker #3: And I note that we have approximately 340 million dollars in remaining contracted potential milestone payments to OmniAb for these active clinical-stage programs. And also, as mentioned on the slide here, there are now 6 programs in phase 1 or phase 2 clinical trials that are derived from our novel genetically engineered chicken antibody discovery technologies specifically OmniDab and OmniChicken.

Matt Foehr: As mentioned on the slide here, there are now six programs in phase I or phase II clinical trials that are derived from our novel genetically engineered chicken antibody discovery technologies, specifically OmnidAb and OmniChicken. I think it's worth noting that OmniAb is the only company in the world with a transgenic chicken platform that creates fully human antibody sequences. Traditionally, many therapeutic targets are highly conserved or similar in sequence among mammals, and that adds to the value proposition of our transgenic chickens. Part of the advantage of a chicken platform is based on the evolutionary distance of a chicken as a biological host for discovery versus other animals, specifically mammals. This distance allows our chickens to create a robust response and a diverse set or a library, if you will, of antibodies against novel targets that a mammal or other approaches likely wouldn't.

Speaker #3: I think it's worth noting that OmniAb is the only company in the world with a transgenic chicken platform that creates fully human antibody sequences.

Speaker #3: Traditionally, many therapeutic targets are highly conserved or similar in sequence among mammals, and that adds to the value proposition of our transgenic chickens. Part of the advantage of a chicken platform is based on the evolutionary distance of a chicken as a biological host for discovery versus other animals, specifically mammals.

Speaker #3: So this distance allows our chickens to create a robust response and a diverse set or a library, if you will, of antibodies against novel targets that a mammal or other approaches likely wouldn't.

Speaker #3: We have a number of different types of genetically engineered chickens that can create unique antibody repertoires, and help discover drugs such as traditional heavy and light chain antibodies, common light chain formats, single-domain antibodies, ultra-long CDRH3 domains, and dual modality antibodies, and now even peptides.

Matt Foehr: We have a number of different types of genetically engineered chickens that can create unique antibody repertoires and help discover drugs such as traditional heavy and light chain antibodies, common light chain format, single domain antibodies, ultra long CDRH3 domains, and dual modality antibodies, and now even peptides. These capabilities open market opportunities and are driving partner interest. We're seeing increasing interest in our engineered chicken platforms, and now with further clinical validation, we think that can drive even more interest. Turning now to slide number nine, this graphic summarizes our clinical and commercial stage partner pipeline for active programs that carry downstream economics to OmniAb. The placement of any program here is based on its most advanced stage in any geography or in any indication.

Speaker #3: These capabilities open market opportunities and are driving partner interest. We're seeing increasing interest in our engineered chicken platforms, and now with further clinical validation, we think that can drive even more interest.

Speaker #3: Turning now to slide number 9, this graphic summarizes our clinical and commercial-stage partner pipeline for active programs that carry downstream economics to OmniAb. The placement of any programs here is based on its most advanced stage in any geography or in any indication.

Speaker #3: And as you can likely tell, there's been some significant movement in the later stages of development, with additional programs now in Phase 1, Phase 2, and Phase 3, with some bigger events having happened just in Q2.

Matt Foehr: As you can likely tell, there's been some significant movement in the later stages of development with additional programs now in phase I, in phase II, and in phase III, with some bigger events having happened just in Q2. I'll call out two programs that jumped from phase I directly into phase III during Q2. Ramucirumab, which is J&J's trispecific antibody for multiple myeloma, and Merck KGaA's precemtabart tocentecan, which is a CEACAM5 ADC for colorectal cancer. I'll also mention here the Boehringer Ingelheim BI 907828 program, which is shown on the pipeline here in phase II. BI is pursuing a MASH indication, which is an important market and is a major health challenge. The right-hand side of this graphic is continuing to get more crowded with what some of our partners view as important potential first-in-class or best-in-class medicines.

Speaker #3: I'll call out two programs that jumped from phase 1 directly into phase 3 during Q2. Remantamid, which is J&J's tri-specific antibody for multiple myeloma, and Merck KGA's Precenta Barcocentacan, which is a CCAM5 ADC for colorectal cancer.

Speaker #3: I'll also mention here the Boehringer Ingelheim BI878 program, which is shown on the pipeline here in Phase 2. So, BI is pursuing a MASH indication, which is an important market and is a major health challenge.

Speaker #3: The right-hand side of this graphic is continuing to get more crowded, with what some of our partners view as important potential first-in-class or best-in-class medicines.

Speaker #3: Let me turn now to slide number 10 to point out a few things that developed recently that are playing a key role in driving elements of the business, specifically we're pleased to highlight continued advancements in the clinical programs of our partners.

Matt Foehr: Let me turn now to slide number 10 to point out a few things that developed recently that are playing a key role in driving elements of the business. Specifically, we're pleased to highlight continued advancements in the clinical programs of our partners. I'll hop around a little bit on this slide, and I note that the Merck KGaA program that Merck announced that based on phase I data, it's now in the phase III trial with precemtabart tocentecan, which is that potential first-in-class investigational anti-CEACAM5 antibody drug conjugate for the treatment of metastatic colorectal cancer. They reported some very strong data, and that's also summarized here on this slide. I'll also highlight the TEV-'408 anti-IL-15 asset, which was the subject of some substantial news earlier this year with a large investment in the program by Royalty Pharma.

Speaker #3: I'll hop around a little bit on this slide, and I note that the Merck KGA program that Merck announced that based on phase 1 data, it's now in the phase 3 trial with Precenta Barcocentacan, which is that potential first-in-class investigational anti-CCAM5 antibody drug conjugate for the treatment of metastatic colorectal cancer.

Speaker #3: They reported some very strong data, and that's also summarized here on this slide. I'll also highlight the TEV408 anti-IL15 asset, which was the subject of some substantial news earlier this year, with a large investment in the program by royalty pharma.

Speaker #3: Teva has now announced plans to begin its phase 2b study in vitiligo in the fourth quarter, following encouraging results from its earlier clinical work.

Matt Foehr: Teva has now announced plans to begin its phase II-B study in vitiligo in Q4, following encouraging results from its earlier clinical work. Those clinical data showed improvements in skin pigmentation in patients with active or stable vitiligo at week 24 in evaluable participants. Nearly 75% of the patients reported improvement in facial vitiligo, with half reporting much or very much improved. As shown here on the left of this slide, Immunovant announced clinically meaningful response rates at week 16 of IMVT-1402 in its difficult-to-treat rheumatoid arthritis trial. Immunovant is expected to provide further updates on this program in H2 of this year, and also in H2, Immunovant is expected to provide an update on IMVT-1402 in lupus.

Speaker #3: Those clinical data showed improvements in skin pigmentation in patients with active or stable vitiligo, at week 24 in evaluable participants nearly 75% of the patients reported improvement in facial vitiligo, with half reporting much or very much improved.

Speaker #3: And as shown here on the left of this slide, Immunovance announced clinically meaningful response rates at week 16 of IMVT1402 and its difficult-to-treat rheumatoid arthritis trial.

Speaker #3: Immunovance expected to provide further updates on this program in the second half of this year, and also in the second half, Immunovance expected to provide an update on IMVT1402 in lupus.

Speaker #3: Therefore, now turning to slide number 11, we look forward to some exciting updates in the second half of this year, with additional expected readouts from Teva and updates from the IMVT1402 program at Immunovance.

Matt Foehr: Turning to slide number 11, we look forward to some exciting updates in H2 of this year with additional expected readouts from Teva and updates from the IMVT-1402 program at Immunovant. There were also updates provided on the progress earlier this morning stating that the IMVT-1402 program remains on track across all six of the announced indications that are being pursued. Before turning the call back over to Kurt for a discussion of our Q2 financial results and our updated 2026 guidance, let me provide you with a little bit more detail on our upcoming Investor and Analyst Day. That will be on 6 October, and we will be webcasting it and hosting it here at our headquarters in Emeryville. The team is preparing a productive session with an agenda that includes management presentations and will feature discussion of some of our partnered programs and Q&A.

Speaker #3: There were also updates provided on the progress earlier this morning, stating that the IMVT1402 program remains on track across all six of the announced indications that are being pursued.

Speaker #3: Before turning the call back over to Kurt, for a discussion of our Q2 financial results and our updated 2026 guidance, let me provide you with a little bit more detail on our upcoming investor and analyst day.

Speaker #3: That'll be on October 6th, and we'll be webcasting it and hosting it here at our headquarters in Emeryville. The team is preparing a productive session with an agenda that includes management presentations, and we'll feature discussion of some of our partnered programs and Q&A.

Speaker #3: And then for those that can attend in technology and lab tours. You'll also be able to meet additional members of our team in person, including Amechi, for those that haven't met him yet, who will share more around our plans for the exploration platform as well.

Matt Foehr: For those that can attend in person, a demonstration of our xPloration technology and lab tours. You will also be able to meet additional members of our team in person, including Amechi, for those that have not met him yet, who will share more around our plans for the xPloration platform as well. We have provided an online link for additional information and participation details for the investor and analyst event in our press release. In addition to that event, we have some technical presentations in the coming months related to our OmniUltra technology, for which we are excited to see continued strong adoption and also see some important new application possibilities.

Speaker #3: We provided an online link for additional information and participation details for the investor and analyst event in our press release. In addition to that event, we have some technical presentations in the coming months related to our OmniUltra technology, for which we're excited to see continued strong adoption and also see some important new application possibilities.

Speaker #3: And on the lower part of this slide, we've highlighted a couple of those upcoming talks on OmniUltra. And just as background, we launched Ultra late last year, and it's the first and only transgenic chicken that produces antibodies with ultra-long CDRH3s, which is a structural feature of antibodies typically found in cows.

Matt Foehr: On the lower part of this slide, we have highlighted a couple of those upcoming talks on OmniUltra, and just as background, we launched Ultra late last year, and it is the first and only transgenic chicken that produces antibodies with ultra-long CDRH3s, which is a structural feature of antibodies typically found in cows. These ultra-long CDRH3s are designed to reach binding pockets not accessible with other antibodies or modalities, potentially unveiling new therapeutic opportunities, and they can play a role in things such as building blocks for multi-specifics, as binders for CAR T and for radiopharma therapies, and as in vivo-generated peptides. So Dr. Christel Iffland, one of our scientific leaders here, will be giving a couple of talks on OmniUltra over in Europe in late October and in early November. With that, I will turn the call back over to Kurt to discuss our financials. Kurt?

Speaker #3: These ultra-long CDRH3s are designed to reach binding pockets not accessible with other antibodies or modalities, potentially unveiling new therapeutic opportunities. And they can play a role in things such as building blocks for multispecifics, as binders for CAR-T and for radio pharma therapies, and as in vivo-generated peptides.

Speaker #3: So, Dr. Kristel Iffland, one of our scientific leaders here, will be giving a couple of talks on OmniUltra over in Europe in late October and early November.

Speaker #3: And with that, I will turn the call back over to Kurt to discuss our financials. Kurt.

Speaker #1: Thanks, Matt. As Matt mentioned, this was a strong quarter, driven by the advancements in our partner portfolio. On slide 14, let me start with revenue for the quarter.

Kurt Gustafson: Thanks, Matt. As Matt mentioned, this was a strong quarter driven by the advancements in our partner portfolio. On slide 14, let me start with revenue for the quarter, which totaled $13.4 million compared with $3.9 million in Q2 of 2025. The increase was primarily driven by higher milestone revenue reflecting the progress of our partners' programs in the clinic. We also saw an increase in xPloration sales this quarter with the sale of two instruments, and service revenue increased slightly due to some new ion channel agreements signed late last year and earlier this year. On slide 15, we have our year-to-date revenue as of 30 June 2026. Total revenue grew to $27.8 million compared to $8.1 million from the corresponding 2025 period. Similar to the quarterly figures, the primary driver of revenue growth was the increase in milestone revenue.

Speaker #1: Which totaled $13.4 million, compared with $3.9 million in the second quarter of 2025. The increase was primarily driven by higher milestone revenue, reflecting the progress of our partner's programs in the clinic.

Speaker #1: We also saw an increase in exploration sales this quarter, with the sale of two instruments and service revenue increased slightly due to some new ion channel agreements signed late last year and earlier this year.

Speaker #1: On slide 15, we have our year-to-date revenue as of June 30th, 2026. Total revenue grew to $27.8 million, compared to $8.1 million from the corresponding 2025 period.

Speaker #1: Similar to the quarterly figures, the primary driver of revenue growth was the increase in milestone revenue. As a reminder, milestone revenue can vary significantly from quarter to quarter.

Kurt Gustafson: As a reminder, milestone revenue can vary significantly from quarter to quarter. Last year, milestone revenue was more heavily weighted toward the H2 of the year, and this year it is more front-end loaded. Turning to slide 16, you'll see our operating expense for the quarter. We continue to execute against our plan to run the business efficiently while investing appropriately in our technology platforms. While the numbers look flat year-over-year, I want to note that last year's figure included a one-time net gain of about $2 million from the sale of an ion channel asset. This had the net impact of lowering operating expense last year, but from a true operating standpoint, you can see from the chart that we saw nice decreases in both R&D and G&A expense based on the realization of operational efficiencies. On slide 17, we illustrate our year-to-date operating expenses.

Speaker #1: Last year, milestone revenue was more heavily weighted toward the back half of the year, and this year, it is more front-end loaded. Turning to slide 16, you'll see our operating expense for the quarter.

Speaker #1: We continued to execute against our plan to run the business efficiently, while investing appropriately in our technology platforms. While the numbers look flat year over year, I want to note that last year's figure included a one-time net gain of about $2 million from the sale of an ion channel asset.

Speaker #1: This had the net impact of lowering operating expense last year. But from a true operating standpoint, you can see from the chart that we saw nice decreases in both R&D and G&A expense based on the realization of operational efficiencies.

Speaker #1: On slide 17, we illustrate our year-to-date operating expenses. Starting with the other expense line, I already spoke about the gain that we had last year that had the impact of lowering operating expense and earlier this year, we had a non-cash write-off in the first quarter.

Kurt Gustafson: Starting with the other expense line, I already spoke about the gain that we had last year that had the impact of lowering operating expense, and earlier this year we had a non-cash write-off in Q1. These two items skew the overall operating expense comparison, but once again, from a true operating perspective, if you focus on the R&D and G&A costs, you can see the efficiencies we've been able to drive in the business. Slide 18 shows our P&L for the quarter and year to date. I've already walked you through the revenue and OpEx numbers on the previous slides, so I'll focus on the bottom line numbers. The net loss for Q2 of 2026 improved to $5.9 million, or $0.05 per share. This compares with the net loss of $15.9 million or $0.15 per share in the year-ago period.

Speaker #1: These two items skew the overall operating expense comparison, but once again, from a true operating perspective, if you focus on the R&D and G&A costs, you can see the efficiencies we've been able to drive in the business.

Speaker #1: Slide 18 shows our P&L for the quarter and year-to-date. I've already walked you through the revenue and opex numbers on the previous slides, so I'll focus on the bottom line numbers.

Speaker #1: The net loss for the second quarter of 2026 improved to $5.9 million or $0.05 per share, and this compares with the net loss of $15.9 million or $0.15 per share in the year ago period.

Speaker #1: We saw a similar reduction in our net loss for the year-to-date period, with the net loss of $13.6 million, or $0.11 per share, versus a net loss of $34.1 million, or $0.32 per share in the prior period.

Kurt Gustafson: We saw a similar reduction in our net loss for the year-to-date period with a net loss of $13.6 million or $0.11 per share, versus a net loss of $34.1 million or $0.32 per share in the prior period. One of the metrics that we've introduced this year is a non-GAAP measure called cash cost and operating expense. On slide 19, we have a reconciliation of our GAAP operating expense to our cash operating expense. The cash operating expense figure removes the major non-cash items of depreciation, stock-based compensation, and the amortization of intangibles. As you can see from the table, about 35% to 40% of our operating expense is non-cash, which is why we believe this cash metric provides a better measure of our true operating expense. In general, we've been driving our cash costs down for the last couple of years.

Speaker #1: One of the metrics that we've introduced this year is a non-GAAP measure called cash costs and operating expense. On slide 19, we have a reconciliation of our GAAP operating expense to our cash operating expense.

Speaker #1: The cash operating expense figure removes the major non-cash items of depreciation, stock-based compensation, and the amortization of intangibles. And as you can see from the table, about $35 to 40 percent of our operating expense is non-cash, which is why we believe this cash metric provides a better measure of our true operating expense.

Speaker #1: In general, we've been driving our cash costs down for the last couple of years. And remember that these comparisons include that one-time gain in the prior year period, which I mentioned earlier.

Kurt Gustafson: Remember that these comparisons include that one-time gain in the prior year period, which I mentioned earlier. Excluding that gain, the cash cost and operating expenses would have shown an even bigger decrease year-over-year. Turning to the balance sheet on slide 20, we ended the quarter with a cash position of $52 million. Our cash balance grew in Q2 based on the receipt of milestone payments. The accounts receivable balance reflects certain milestones that were achieved in Q2 but not yet paid. We continue to believe that based on our anticipated cash flows, the company is well capitalized to execute against our strategy. Our updated 2026 financial guidance is on slide 21, which reflects the strong Q2 performance and our view for the remainder of the year.

Speaker #1: Excluding that gain, the cash costs and operating expenses would have shown an even bigger decrease year over year. Turning to the balance sheet on slide 20, we ended the quarter with cash position of $52 million.

Speaker #1: Our cash balance grew in the second quarter based on the receipt of milestone payments. The accounts receivable balance reflects certain milestones that were achieved in the second quarter but not yet paid.

Speaker #1: We continue to believe that based on our anticipated cash flows, the company is well capitalized to execute against our strategy. Our updated 2026 financial guidance is on slide 21, which reflects the strong second quarter performance and our view for the remainder of the year.

Speaker #1: In addition to raising guidance for revenue in our year-end cash balance, we've also narrowed the ranges for all of these metrics. We've increased the range for 2026 total revenue to $32 to $36 million, this increase is primarily the result of increased milestone achievements that we saw in the second quarter.

Kurt Gustafson: In addition to raising guidance for revenue and our year-end cash balance, we've also narrowed the ranges for all of these metrics. We've increased the range for 2026 total revenue to $32 to $36 million. This increase is primarily the result of increased milestone achievements that we saw in Q2. We are slightly tightening the range in our OpEx guidance and now expect 2026 GAAP operating expense to be in the range of $84 to $88 million and our cash operating expense to be in the range of $51 to $55 million. Regarding cash, with the higher expected revenue, we now anticipate ending 2026 with cash and cash equivalents in the range of $37 to $41 million. Our effective tax rate for the full year is expected to remain at approximately 0% because of the valuation allowance we record. Moving to slide 22.

Speaker #1: We are slightly tightening the range in our opex guidance and now expect 2026 GAAP operating expense to be in the range of $84 to $88 million, and our cash operating expense to be in the range of $51 to $55 million.

Speaker #1: Regarding cash, with the higher expected revenue, we now anticipate ending 2026 with cash and cash equivalents in the range of $37 to $41 million.

Speaker #1: Our effective tax rate for the full year is expected to remain at approximately 0% because of the valuation allowance we record. Moving to slide 22, we've shown the slide the last couple of quarters, and I thought I would repeat it again this quarter to provide historical context and highlight the guidance changes we're making this quarter.

Kurt Gustafson: We've shown this slide the last couple of quarters, and I thought I would repeat it again this quarter to provide historical context and highlight the guidance changes we're making this quarter. As you can see, our three-year financial metrics are improving. In particular, when it comes to cash use. We expect revenue to grow significantly in 2026 versus 2025. While cash operating expense is expected to remain in a tight band, driving overall cash use lower. While we are still in a period where revenue is largely driven by milestones, which can be highly variable in any given quarter, our portfolio of partner programs has continued to grow and advance. This should generally drive milestone revenue higher. This year, we are beginning to see the benefits of our business model take hold.

Speaker #1: As you can see, our three-year financial metrics are improving. In particular, when it comes to cash use. We expect revenue to grow significantly in 2026 versus 2025, while cash operating expense is expected to remain in a tight band, driving overall cash use lower.

Speaker #1: While we are still in a period where revenue is largely driven by milestones, which can be highly variable in any given quarter, our portfolio of partner programs has continued to grow and advance.

Speaker #1: This should generally drive milestone revenue higher. This year, we are beginning to see the benefits of our business model take hold. Our milestone base continues to expand, and we expect royalties to become a growing part of our revenue streams as partner programs advance towards potential approvals.

Kurt Gustafson: Our milestone base continues to expand, and we expect royalties to become a growing part of our revenue streams as partner programs advance towards potential approvals. Combined with our scalable infrastructure, we expect these factors to drive the long-term profitability of the company. With that, I'd like to open up the call for questions. Operator?

Speaker #1: Combined with our scalable infrastructure, we expect these factors to drive the long-term profitability of the company. And with that, I'd like to open up the call for questions. Operator?

Speaker #2: We will now begin the question-and-answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again.

Operator 3: We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question for optimum sound quality, and if muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Matt Hewitt with Craig-Hallum. Your line is open. Please go ahead.

Operator: We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question for optimum sound quality, and if muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Matt Hewitt with Craig-Hallum. Your line is open. Please go ahead.

Speaker #2: We ask that you pick up your handset when asking a question for optimum sound quality and if muted locally, please remember to unmute your device.

Speaker #2: Please stand by while we compile the Q&A roster. Your first question comes from the line of Matt Hewitt with Craig Hallam. Your line is open.

Speaker #2: Please go ahead.

Speaker #3: Good afternoon, gentlemen. 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?

Matt Hewitt: Good afternoon, gentlemen. Congratulations on the strong quarter. Maybe to start off, congratulations on the xPloration 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? As far as the sales pipeline is concerned, how is that shaping up and will that maybe be lumpy over the near term? Or are you starting to see maybe a cadence where you could start to see more consistent sales there?

Speaker #3: Is that starting to tick up and as far as the sales pipeline is concerned, 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?

Speaker #4: Yeah. Matt, thanks. I'll offer some perspectives and then I'll invite a mate sheet to comment as well. Just generally, I'll say we remain very excited about the exploration opportunity.

Matt Foehr: Yeah, Matt. Thanks. I'll offer some perspectives. I'll invite Amechi to comment as well. Just generally, I'll say we remain very excited about the xPloration opportunity. In fact, the more we learn, the greater our conviction grows, that this could really be a meaningful complement to our antibody business. Right now we're not breaking out kind of the details of the different subcomponents of revenue, but we do see xPloration contributing to our revenue growth this year and going forward. It was great to get 2 units sold in the quarter, that we now have 4 out there in the field, but still probably a little early to talk about consumables and that sort of thing. I mean, based on Amechi's experience, I'll invite him to add commentary as well. Obviously, he's deep in it with the team and interacting with our customers as well.

Speaker #4: In fact, the more we learn, the greater our conviction grows that this could really be a meaningful complement to our antibody business. And right now, we're not breaking out kind of the details of the different subcomponents of revenue, but we do see exploration contributing to our revenue growth this year and going forward.

Speaker #4: It was great to get two units sold in the quarter that we now have four out there in the field. But still, probably a little early to talk about a consumables and that sort of thing, but I will I mean, based on a mate sheet's experience, I'll invite him to add commentary as well.

Speaker #4: Obviously, he's deep in it with the team and interacting with our customers as well.

Speaker #3: Thank you. Thank you. Based on what I've seen, and the life sciences tools world and the capital equipment world, differentiated life sciences instruments like the exploration platform, they have a real potential to create diverse and durable revenue streams.

Amechi Nwachuku: Thank you. Based on what I've seen in the life sciences tools world and the capital equipment world, differentiated life sciences instruments like the xPloration platform, they have a real potential to create diverse and durable revenue streams, including instrument placements, ongoing consumables and reagent usage, software and service. We're still evaluating the full commercial opportunity for xPloration and how best to capture that. We'll aim to maybe share more of our thinking around that, around the platform, the market opportunity, the strategic role at our upcoming Analyst and Investor Day.

Speaker #3: Including instrument placements, ongoing consumables and reagent usage, software and service, and we're still evaluating the full commercial opportunity for exploration and how best to capture that.

Speaker #3: And we'll aim to maybe share more of our thinking around that, around the platform, the market opportunity, the strategic role, and our upcoming analysts and investor day.

Speaker #1: That's great. And then maybe a follow-up question. 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?

Matt Hewitt: That's great. Maybe a follow-up question. 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 some of those dollars might start to flow to you? Thank you.

Speaker #1: If so, when do you anticipate some of those dollars might start to flow to you? Thank you.

Speaker #4: Yeah. Matt, thanks. I will comment. I think we have seen very nice growth in partners and programs net of attrition over the last couple of years.

Matt Foehr: Matt. Thanks. I will comment. I think we have seen very nice growth in partners and programs, net of attrition over the last couple of years. I do see the effects of that from the perspective of the types of swings that our bigger partners are taking, right? I think we have the benefit of technologies that represent, I'll say, a really substantial and durable competitive advantage. We kind of leverage our ecosystem of partners and the deep relationships we have with them to get a good understanding of not only what they're doing, but where they're going and that sort of thing. Because our technologies are highly differentiated, we do see kind of where they want to focus from a target and an indication perspective. I'll say just speaking generally, I think the big players are taking bigger swings.

Speaker #4: I do see the effects of that from the perspective of the types of swings that are bigger partners are taking, right? I think we have the benefit of technologies that represent, I'll say, a really substantial and durable competitive advantage we kind of leverage our ecosystem of partners and the deep relationships we have with them to get a good understanding of not only what they're doing, but where they're going, and that sort of thing.

Speaker #4: And because our technologies are highly differentiated, we do see kind of where they want to focus from a target and an indication perspective. I'll say, just speaking generally, I think the big players are taking bigger swings.

Speaker #4: They're going after bigger indications, with substantial unmet need. And we are seeing an uptick in, I'll say, smaller partners as well. I mean, we highlighted a couple of new relationships that or a new licenses that were entered into this quarter and Rosa Therapeutics, which I'll highlight as a preclinical stage venture-funded biotech company that's developing selective pathogenic cytotoxic T-cell depleters using bispecific antibodies, right?

Matt Foehr: They're going after bigger indications, with substantial unmet need. We are seeing an uptick in, I'll say, smaller partners as well. I mean, we highlighted a couple of new relationships or new licenses that were entered into this quarter. EnRosa Therapeutics, which I'll highlight, is a preclinical stage venture-funded biotech company that's developing selective pathogenic cytotoxic T-cell depleters, using bispecific antibodies, right? Really highly experienced team, really interesting science, and a very good match with our technology. I think that's an example of an emerging preclinical stage player who's now well-funded and charging ahead. On the bigger side, obviously, we signed up argenx this quarter. Obviously, a global leader research-wise and commercially, really are leading a new era in immunology and excited to see them become a partner and ramping up activity as well.

Speaker #4: So, really highly experienced team, really, really, really interesting science, and a very good match—an example of an emerging preclinical-stage player who's now well-funded and charging ahead.

Speaker #4: And then on the bigger side, obviously, we signed up our GenX this quarter. Obviously, a global leader research-wise, and commercially, they really are leading a new era in immunology.

Speaker #4: And so excited to see them.

Speaker #1: ...become a partner and are ramping up activity as well. So hopefully that gives you some color on what we're seeing.

Matt Foehr: Hopefully that gives you color on what we're seeing.

Speaker #2: Yeah, no, that's very helpful. Thank you.

Matt Hewitt: Yeah, no, that's very helpful. Thank you.

Speaker #3: Your next question comes from the line of Brendan Smith with TD Cowen . Your line is open . Please go ahead

Operator 3: Your next question comes from the line of Brendan Smith with TD Cowen. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Brendan Smith with TD Cowen. Your line is open. Please go ahead.

Speaker #1: Great .

Brendan Smith: Great. Thanks for taking the questions, guys. Congrats on all the progress here. Maybe just kind of a quick follow-up first on xPloration, and I just want to double-check and make sure that we're thinking about the impact to margins there. Nice to see the revenues coming through. Just wondering how we should think about and what your expectations are on kind of relative impact to margins just as that product ramps up over the coming quarters. Excuse me. Separately, I wanted to ask, in your existing and potential partner conversations too, has OmniUltra kind of been a big focus? Maybe what's just kind of been the feedback there, and how are you kind of thinking about its relative contribution, maybe to new partner deals versus some of the other offerings, kind of over the next maybe 12, 18 months?

Speaker #4: Thanks for taking the questions , guys , and congrats on the progress here . Maybe just a quick follow up . First on exploration .

Speaker #4: And I just want to double check and make sure that we're thinking about the impact to margins . There . Nice to see the revenues coming through .

Speaker #4: Just wondering how we should think about and what your expectations are . Kind of relative impact to margins , just as that product ramps up over the coming quarters .

Speaker #4: And then excuse me , separately , I wanted to ask in your existing and potential partner conversations to has omni Ultra kind of been a big focus ?

Speaker #4: Maybe what's just kind of been the feedback there ? And how are you thinking about its relative contribution maybe to new partner deals versus some of the other offerings kind of over the next maybe 12 to 18 months

Speaker #5: Yeah . So maybe thanks . Thanks for the questions , Brendan . Maybe I'll take the first one on margins and then Matt , you can comment on , you know , with , with regards to , to margins .

Kurt Gustafson: Yeah. Thanks for the questions, Brendan. Maybe I'll take the first one on margins, and then Matt, you can comment. With regards to margins, I think what we have told you is that we have, what I would characterize as very good margins on the instrument and even better margins on the consumables. In terms of the margins, you could see some variability quarter to quarter, just given the mix of what comes through. There's also some service revenue that's kind of a component of that as well. I'm not going to say that this quarter or the trends that you're seeing are like a trend that you should focus on going forward, because it's going to vary a little bit just based on the mix that we see in each individual quarter. It's a nice margin and we expect that to continue.

Speaker #5: I think what we have told you is that we have what I would what I would characterize as as very good margins on the instrument and even better margins on the consumables .

Speaker #5: And so in terms of the margins , you could see some variability quarter to quarter , just given the mix of what comes through You also have , you know , there's also some service revenue that's kind of a component of that as well .

Speaker #5: So so it's sort of I can't I'm not going to say that this quarter is , you know , or the trends that you're seeing are like a trend that you should focus on going forward because it's going to vary a little bit just based on the mix that we see in each individual quarter .

Speaker #5: But , you know , it's a nice margin and you know , we expect that to continue .

Speaker #1: Yeah . Brendan . And on your questions around Omni Ultra , we've been really pleased that Omni Ultra is , is absolutely opening new markets for us .

Matt Foehr: Yeah, Brendan, on your questions around OmniUltra, we've been really pleased that OmniUltra is absolutely opening new markets for us and new opportunities. I'll say it's a driver of substantial inbound interest as well as OmnidAb, both of those, I think are well-suited to have kind of important impacts on the industry, OmniUltra being dual modality, both for antibodies and peptides. That obviously drives a lot of inbound and we'll be obviously continuing to highlight some of our latest data and applications. OmnidAb also with important potential uses, things like brain shuttling and multi-specifics. Both of them have applicability into some of these, what I'll call really high-value areas like ion channels and GPCRs and things like that. A lot of interest in high-value targets for these.

Speaker #1: And new opportunities . I'll say it's a driver of substantial inbound interest as well as omni dab and both of those , I think are well suited to have kind of important impacts on the industry , on the ultra being dual modality , both for antibodies and peptides .

Speaker #1: So that obviously drives a lot of inbound and will be obviously continuing to highlight some of our latest data and applications Omni dab also with with important potential uses , things like brain shuttling and multi specifics .

Speaker #1: Both of them have applicability into some of these , what I'll call , you know , really high value areas like ion channels and , and GPCRs and things like that .

Speaker #1: So a lot of interest in , in high value targets for these . So we've been really , really pleased with the , with the dialogue and the signing up of new programs and new partners .

Matt Foehr: We've been really pleased with the dialogue and the signing up of new programs and new partners. We expect we'll be able to talk more about those as partners start talking about data in the future.

Speaker #1: And we expect we'll be able to talk more about those as partners. We'll start talking about data in the future.

Speaker #3: Your next question comes from the line of Michael King with Rodman and Renshaw . Your line is open . Please go ahead

Operator 3: Your next question comes from the line of Michael King with Rodman & Renshaw. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Michael King with Rodman & Renshaw. Your line is open. Please go ahead.

Speaker #6: Thanks for taking the question , guys . 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 a 20 plus million dollar gap between your spend and the expected revenues .

Michael King: Thanks for taking the question, guys. 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. I just wonder how we should think about how you're going to close that gap. Are you going to continue to try to self-fund? Are you going to have to draw funds from outside, or do you think you're going to try to raise the value of individual contracts?

Speaker #6: So I just wonder how we should think about how you're going to close that gap . Does that you know , are you going to continue to try to self-fund ?

Speaker #6: You're going to have to draw funds from outside , or do you think you're going to try to raise the value of individual contracts

Speaker #1: Yeah , Mike , I'll comment and Curt , can comment as well . You know , we feel very good about where we are and where the business is , headed .

Matt Foehr: Yeah. Mike, I'll comment, and Kurt can comment as well. We feel very good about where we are and where the business is headed. As we mentioned, our late-stage assets have $340 million of milestones associated with them. We're seeing a real nice flow of new deal interest as well and feel really good about how we're situated, how we're placed. Kurt, you may want to add in some more color or subtleties for details.

Speaker #1: You know , as we mentioned , our late stage assets have 340 million of milestones associated with them . We're seeing a real nice flow of of new deal interest as well and feel really good about , you know , how we're how we're situated , how we're placed .

Speaker #1: I mean , Curt , you may want to add in some more color or subtleties for details .

Speaker #5: Yeah , yeah . Mike . So I mean , we started the year with 54 million in cash . And if you sort of take a look at our end of year cash balance and , you know , let's just take the midpoint of that range , you know , we're burning about $15 million this year .

Kurt Gustafson: Yeah, Mike, we started the year with $54 million in cash, and if you sort of take a look at our end-of-year cash balance and let's just take the midpoint of that range, we're burning about $15 million this year. The cash runway, just from that standpoint looks pretty long. If you sort of step back and take a look at where we've been in terms of how we're growing from a revenue standpoint, the clinical milestones are what's driving most of that revenue growth today. As we look forward, we think royalties are going to kick in. As I mentioned, that clinical base is continuing to grow and mature, and as that happens, that kicks off even more and more milestones.

Speaker #5: So , you know , the cash runway just from from that standpoint , looks looks pretty long , but if you sort of step back and take a look at where , where we've been in terms of what we're , you know , growing or how we're growing from a revenue standpoint , you know , the clinical milestones are what's driving most of that revenue growth today .

Speaker #5: You know , as we look forward , we think royalties are going to kick in . But as I mentioned that that clinical base is continuing to grow and mature .

Speaker #5: And as that happens , that kicks off even more and more milestones . So we fully expect to be growing the top line and , and , and that revenue kind of drops to the bottom line because we , you know , we've talked about sort of the scalable infrastructure that we have .

Kurt Gustafson: We fully expect to be growing the top line and that revenue kind of drops to the bottom line because we've talked about sort of the scalable infrastructure that we have. We're keeping a tight lid on expenses, you're not going to see that scale with the revenue, and that additional revenue that comes in drops to the bottom line. I think that's how we close the gap. As Matt said, we feel really good about where we are right now.

Speaker #5: So we're keeping a tight lid on expenses . So you're not going to see that scale with the revenue . And so that that additional revenue that comes in drops to the bottom of line .

Speaker #5: So , you know , I think that's how we close the gap , but as Matt said , we feel really good about where we are right now .

Speaker #6: Okay . So if I could maybe summarize , you'd say that you've got internally , you've got great visibility of the probability of success of some of these late stage relationships like Immunovant and Teva , etc.

Michael King: Okay, if I could maybe summarize, you'd say that internally you've got great visibility of the probability of success of some of these late-stage relationships like Immunovant and Teva, et cetera, that you feel that they can do the vast majority of filling the funding gap. Is that a fair statement?

Speaker #6: , that you feel that they can do the vast majority of the funding gap , filling the funding gap . Is that a fair statement ?

Speaker #1: Well , what I'd say , Mike , too , is you just you just look at the progression of the clinical stage programs , the visible clinical stage programs , right ?

Matt Foehr: Well, what I'd say, Mike, too, is just look at the progression of the clinical stage programs, the visible clinical stage programs, right?

Speaker #1: That . Yeah , absolutely speaks to the conviction of our partners around the programs . That is exciting to see . We've had a nice flow of new things entering the clinic this year .

Michael King: Yep.

Matt Foehr: That absolutely speaks to the conviction of our partners around the programs. That is exciting to see. We've had a nice flow of new things entering the clinic this year. We expect additional ones to be entering the clinic. Yeah, we feel great about where we're situated.

Speaker #1: We expect additional ones to be entering the clinic . So yeah , we feel we feel great about where we're situated .

Speaker #6: Okay , fair point . I won't belabor that , but related to that , I just when we think about the model longer term , we just revising our model , the way we look at things .

Michael King: Okay, fair point. I won't belabor that. Related to that, when we think about the model longer term, we're just revising our model and the way we look at things. Just curious about how you feel the pace of deal flow 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?

Speaker #6: Just curious about how you feel the pace of deal flow is going to go . Do you you know , do you think that this is a model that accelerates with time stays steady over time with greater value ?

Speaker #6: How should we about the Omniab model sort of on a on a 3 to 5 year horizon

Speaker #1: Yeah . Mike . I mean , obviously you look at where we've been right from the perspective of driving , you know , first I'll just comment with the foundation of technologies that are highly differentiated , very Durable and offer a substantial competitive advantage , right ?

Matt Foehr: Yeah, Mike, obviously you look at where we've been, right? First I'll just comment with the foundation of technologies that are highly differentiated, very innovative, durable, and offer a substantial competitive advantage, right? That's what drives partners, that's what drives programs. You just look at the last couple of years, really, which were years where the industry as a whole was facing headwinds, but we were growing net of attrition, both programs and partners at a very nice clip. I think that speaks a lot to how differentiated our technologies are, and I think it positions us extremely well for the future. We also have continued to see the partners do their part in progressing in the clinic with new things entering the clinic. We have some really exciting later-stage programs that partners are describing as pipeline in a product type programs, right?

Speaker #1: That's what drives partners . That's what drives programs . And you just look at the last couple of years really , which were years where the industry as a whole was facing headwinds .

Speaker #1: But we were growing net of attrition, both programs and partners, at a very nice clip. I think that speaks a lot to how differentiated our technologies are.

Speaker #1: And I think it positions us extremely well for the future We also , you know , have continued to see the partners do their part in progressing in the clinic with new things entering the clinic .

Speaker #1: We have some really exciting later stage programs that partners are describing as pipeline in a product type programs , right , where we have downstream milestones and royalties .

Matt Foehr: Where we have downstream milestones and royalties, right? As you look at the model, milestones play a key role. Obviously, those are going to continue to grow over time. As you start to layer in royalties, which now we're getting greater and greater visibility towards as these things progress, that really creates a lot of power in the model. Keep in mind as well that many of our royalty agreements are tiered, meaning our percent of royalty goes up as revenue gets higher, right? That adds a lot of power to the model as well. Yeah, just some general comments there that ought to be helpful.

Speaker #1: Right . And so as you look at the model milestones play a key role . Obviously , those are those are going to continue to grow over time .

Speaker #1: But then as you start to layer in royalties , which now we're getting greater and greater visibility towards as these things progress , that really creates a lot of power in the model .

Speaker #1: And keep in mind as well that many of our royalty agreements are tiered , meaning our percent of royalty goes up as revenue gets higher , right .

Speaker #1: And so that adds a lot of power to the as well . So yeah , just some general comments there that ought to be helpful

Speaker #6: Yes it is . Thanks . That's that's illuminating . Thanks , Matt

Michael King: Yes, it is. Thanks. That's illuminating. Thanks, Matt.

Speaker #3: As a reminder , if you would like to ask a question , please press star one to raise your hand . Our next question comes from the line of Stephen Willie with Stifel .

Operator 3: As a reminder, if you would like to ask a question, please press star one to raise your hand. Our next question comes from the line of Stephen Willey with Stifel. Your line is open. Please go ahead.

Operator: As a reminder, if you would like to ask a question, please press star one to raise your hand. Our next question comes from the line of Stephen Willey with Stifel. Your line is open. Please go ahead.

Speaker #3: Your line is open . Please go ahead .

Speaker #7: Yeah . Good afternoon . Thanks for taking the questions . I know you're not showing any of the data in this deck specifically , but was just curious if you could provide some color around how the number of posts discovery , pre-clinical 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 .

Stephen Willey: Yeah, good afternoon. Thanks for taking the questions. I know you're not showing any of the data in this deck specifically, but was just 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 that-

Speaker #7: Just trying to get a sense of how that clinical stage portfolio could actually grow over the coming months . Thanks

Matt Foehr: Yeah

Stephen Willey: clinical stage portfolio could actually grow over the coming months. Thanks.

Speaker #1: Yeah . Steve , thanks . Yeah . We've continued to see , I'll say nice progression . Nice graduation of programs and that both in the I'll say , discovery to preclinical stage .

Matt Foehr: Yeah, Steven, thanks. Yeah, we've continued to see, I'll say nice progression, nice graduation of programs and that both in the, I'll say, discovery to preclinical stage, the preclinical to phase I, phase I to phase II, phase II to phase III. We continue to see nice growth there. We're really pleased with what we see. As we mentioned, we've had four new things enter the clinic this year. We expect additional entrants this year as well, and those are ones that would be progressing out of preclinical into phase I. There could be some range of time that things are in the preclinical phase based on the indication, based on the type of preclinical work that partners are asked to do or need to do based on their interactions with regulatory authorities.

Speaker #1: The preclinical to phase one , phase one to phase two , phase two to phase three . So we've continued to see nice growth there .

Speaker #1: And and we're we're really pleased with what we see . As we mentioned , we've had four things for new things . Enter the clinic this year .

Speaker #1: We expect additional entrants this year as well . And those are ones that would be progressing out of preclinical into phase one . And there could be some range of time that things are in the preclinical phase based on the indication , based on the type of preclinical work that partners are asked to do or need to do based on their interactions with regulatory authorities .

Speaker #1: I will note , though , that , you know , earlier this year , there were some changes to guidance around the preclinical work .

Matt Foehr: I will note, though, that earlier this year there were some changes to guidance around the preclinical work that's necessary for certain types of antibody programs that are entering into the clinic for the first time. We see that as a potential long-term tailwind, especially for some of our smaller partners. That gives you a little bit of detail there.

Speaker #1: That's necessary for certain types of antibody programs that are entering into the clinic for the first time . So we see that as a potential long term tailwind , especially for some of our smaller partners .

Speaker #1: But that gives you a little bit of detail . There

Speaker #7: All right. Thanks for taking the question.

Stephen Willey: All right. Thanks for taking the question.

Speaker #5: Thanks , Steve .

Kurt Gustafson: Thanks, Steve.

Speaker #3: Your next question comes from the line of Puneet Sudha with Leerink Partners . Your line is open . Please go ahead

Operator 3: Your next question comes from the line of Puneet Souda with Leerink Partners. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Puneet Souda with Leerink Partners. Your line is open. Please go ahead.

Speaker #8: Hey guys , you have Michael on for Puneet . Congrats on the beat and raise quarter . I was hoping to get a bit of color on the guide .

[Analyst] (Leerink Partners): Hey, guys. You have Michael on for Puneet. Congrats on the beat and raised quarter. I was hoping to get a bit of color on the guide. It seems like you're implying basically just low 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?

Michael Cherny: Hey, guys. You have Michael on for Puneet. Congrats on the beat and raised quarter. I was hoping to get a bit of color on the guide. It seems like you're implying basically just low 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?

Speaker #8: It seems like you're implying basically just low 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?

Speaker #8: Obviously, the milestones, for sure. But what are the expectations in the back half?

Speaker #5: Yeah . I mean , Michael , we're not going to go get to to granular on , on the revenue guidance , but , you know , in my prepared remarks , I sort of did indicate , you know , this year , the milestones are obviously the big driver of , of growth for us right now .

Kurt Gustafson: Yeah, Michael, we're not going to go get too granular on the revenue guidance. In my kind of prepared remarks, I sort of did indicate this year the milestones are obviously the big driver of growth for us right now. Those milestones achievements are front-end loaded for 2026. There's nothing kind of negative happening about the other lines in terms of xPloration and royalties and service revenue. In fact, we had sort of said service revenue we expect actually should be better in 2026 than it was in 2025. That's probably the extent of what I can do to help you out with thinking about the back half of the year.

Speaker #5: And those milestones are achievements are front end loaded for 2026 . And so , you know , there's , there's nothing kind of negative happening about the other lines in terms of exploration and royalties and service revenue .

Speaker #5: In fact , you know , we , we had sort of have said service revenue . We expect actually should be better in 2026 than it was in 2025 .

Speaker #5: So that's probably the extent of what I can , I can do to help you out with thinking about the back half of the year

Speaker #8: Okay , great . Thanks . And then my other question , I'm hoping to get a little bit of color on your portfolios , exposure to labs and applying AI for antibody drug discovery .

[Analyst] (Leerink Partners): Okay, great. Thanks. My other question, hoping to get 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 xPloration. We've seen other tools company see some significant growth there. I'm curious, in what ways does OmniAb leverage that, and to what extent is that influencing the business now?

Michael Cherny: Okay, great. Thanks. My other question, hoping to get 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 xPloration. We've seen other tools company see some significant growth there. I'm curious, in what ways does OmniAb leverage that, and to what extent is that influencing the business now?

Speaker #8: I know you've highlighted some interest there from exploration. We've seen other tools companies see some significant growth there, so I'm curious—what ways does OmniAb leverage that?

Speaker #8: And to what extent is that influencing the business ? Now ?

Speaker #1: Yeah . Michael , thanks . Look , we as those that follow us closely and know us well , we are big believers in the benefits of AI as a as a tailwind for the industry in a lot of different ways .

Matt Foehr: Michael, thanks. Look, as those that follow us closely and know us well, we are big believers in the benefits of AI as a tailwind for the industry in a lot of different ways. Those that have followed us closely know we launched our OmniDeep brand over three years ago now. OmniDeep is a suite of in silico tools, AI and ML in silico tools that are woven throughout our technology stack, right? It really starts with high-quality input data that really is proprietary data that doesn't exist anywhere, especially when you're going after novel targets, that becomes really important. Our transgenic animals really are the core element of that. We coined the term biological intelligence years ago, but that is a real core of that, especially when you're going after novel targets. Another key element of that is the xPloration platform.

Speaker #1: And those that have followed us closely know we , we launched our Omni deep brand over three years ago . Now . And Omni deep is a suite of in silico tools , AI and ML in silico tools that are woven throughout our technology stack .

Speaker #1: Right . And so , you know , it really starts with high quality input data , right ? That that really is proprietary data that doesn't exist anywhere , especially when you're going after novel targets , that becomes really important .

Speaker #1: And our transgenic animals really are the core element of that . And we coined the term biological intelligence years ago , but that is a real core of that , especially when you're going after novel targets .

Speaker #1: Another key element of that is the exploration platform , right , is the ability to generate massive , massive amounts of data in a , in a very quick period of time .

Matt Foehr: Is the ability to generate massive amounts of data in a very quick period of time. I'll call that both hits and misses, right? That's the benefit of the xPloration platform. Our OmniDeep platform, obviously, we feed that into deep learning models and to suggest new hits and that can serve as training data and drive more efficiency. We really see all of this as a potential tailwind to us and from a lot of different perspectives. I've mentioned in the past that at the most recent AACR meeting, I think it was BioCentury that reported its analysts identified over 175 previously untracked oncology targets, right? Brand-new oncology targets being disclosed for the first time now, right? That sort of thing.

Speaker #1: And I'll call that both hits and misses , right ? So that's the benefit of , of the exploration platform , our Omni deep platform .

Speaker #1: Obviously , we feed that into deep learning models to suggest new hits and that can serve as training data and drive drive more efficiency .

Speaker #1: So we really see all of this as a , as a potential tailwind to us . And from a lot of different perspectives .

Speaker #1: I mentioned in the past that at the most recent aAcr meeting , I think it was Biocentury that reported its analysts identified over 175 previously untracked oncology targets .

Speaker #1: Right . So brand new oncology targets being disclosed for the first time . Now , right . That sort of thing . And you start thinking about how our animals that have been engineered with human immune systems can help guide that , that I'll say ocean of potential zones where you might want to look for a therapeutic and then to pair that with exploration and AI and ML tools , I think is a really powerful thing .

Matt Foehr: You start thinking about how our animals that have been engineered with human immune systems can help guide that, I'll say, ocean of potential zones where you might want to look for a therapeutic. To pair that with xPloration and AI and ML tools, I think is a really powerful thing. We're excited about where the industry's going from that perspective. We think xPloration can play a key role in generating large data sets and really do think the pace of drug discovery generally is accelerating and that's going to be a good thing.

Speaker #1: So we're we're excited about where the industry is going from that perspective . We think exploration can play a key role in generating large data sets and really do think , you know , the pace of drug discovery generally is accelerating .

Speaker #1: And and that's going to be a good thing

Speaker #8: Great . Thank you very much

[Analyst] (Leerink Partners): Great. Thank you very much.

Michael Cherny: Great. Thank you very much.

Speaker #3: There are no further questions at this time . I will now turn the call back to Matt for CEO for closing remarks .

Operator 3: There are no further questions at this time. I will now turn the call back to Matt Foehr, CEO, for closing remarks.

Operator: There are no further questions at this time. I will now turn the call back to Matt Foehr, CEO, for closing remarks.

Speaker #1: Great . Thank you . Operator . I'd like to thank everyone for joining today's call and for your questions and your engagement . I also want to thank our team here at Omniab for their continued hard work around our innovative platforms and their focus on our customers , our team takes a lot of pride in their work , and that's .

Matt Foehr: Great. Thank you, operator. I'd like to thank everyone for joining today's call and for your questions and your engagement. I also want to thank our team here at OmniAb for their continued hard work around our innovative platforms and their focus on our customers. Our team takes a lot of pride in their work, and that's appreciated. We look forward to discussing our Q3 financial results in a few months. In the meantime, we will be at some upcoming investor conferences, including the H.C. Wainwright Conference in New York City in the middle of September. We're excited to host our Investor and Analyst Day here on 6 October and look forward to seeing some of you then. Thanks again and have a great day.

Speaker #1: Appreciated . We look forward to discussing our third quarter financial results in a few months . And in the meantime , we will be at some upcoming investor conferences , including the H.C.

Speaker #1: Wainwright Conference in New York City in the middle of September , and we're excited to host our Investor and Analyst Day here on October 6th .

Speaker #1: And look forward to seeing some of you then . Thanks again and have a great day

Speaker #3: This concludes today's call. Thank you for attending. You may now disconnect.

Operator 3: This concludes today's call. Thank you for attending. You may now disconnect. This event has now concluded. Thank you for joining OmniAb Q2 2026 financial results and business update call. The line will disconnect automatically.

Operator: This concludes today's call. Thank you for attending. You may now disconnect. This event has now concluded. Thank you for joining OmniAb Q2 2026 financial results and business update call. The line will disconnect automatically.

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