OmniAb walked into this quarter with a reputation as a high multiple, high promise antibody discovery platform, and the stock has just been reminded of that. Shares jumped 37.5% to US$3.08 after the Q2 2026 release, a sharp move for a company that still reports losses but just posted US$13.4m in revenue and a much smaller net loss of US$5.9m.

The real story for OmniAb this time is the earnings trend. Losses are shrinking while milestone revenue from partner drugs advancing in the clinic does more of the heavy lifting. The sections that follow unpack how durable that earnings pattern looks.

Is OmniAb at 11.6x P/S with ongoing losses a genuine valuation discount, or just expensive growth wrapped in a lower share price after this Q2 move? Compare that gap against our detailed valuation analysis for OmniAb.

Q2 2026 Earnings Summary

• Revenue (Q2 2026 vs. Q2 2025): US$13.415m vs. US$3.897m (a very large year-on-year increase, driven mainly by milestone revenue)
• Net Loss (Q2 2026 vs. Q2 2025): loss of US$5.859m vs. loss of US$15.875m (loss narrowed)
• Basic EPS (Q2 2026 vs. Q2 2025): loss of US$0.04549 per share vs. loss of US$0.149555 per share (loss per share narrowed)
• Trailing 12 Month Revenue and Net Loss (TTM to Q2 2026 vs. TTM to Q2 2025): revenue of US$38.457m and net loss of US$44.27m vs. revenue of US$23.027m and net loss of US$63.516m (higher revenue with a smaller full-year loss)

Prefer clean charts instead of another wall of earnings tables and footnotes? Get a visual snapshot of OmniAb’s revenue, losses, and broader financial picture in the company report for OmniAb.

OmniAb bull case, milestones moving in the right direction

Bulls argue OmniAb is turning its partner portfolio and xPloration into a scalable, recurring revenue engine with improving earnings leverage. Q2 gives some support to that view. Revenue reached US$13.4m, with management explicitly tying the step up to partner milestones as more programs progressed clinically. There are now 34 clinical programs or approved products and 4 new clinical entrants in 2026, which helps back the claim of a deepening late stage pipeline. Roughly 98% of 425 active programs carry contracted future economics, with over US$3b of potential milestones and an average royalty of about 3.4%. Management raised 2026 revenue guidance to a range of US$32m to US$36m and lifted year end cash guidance to a range of US$37m to US$41m. The quarterly net loss narrowed to US$5.9m and cash operating expense guidance was set at US$51m to US$55m, which supports the narrative of tighter cost control.

Bear case on OmniAb, lumpiness and reliance unresolved

Bears focus on OmniAb’s dependence on partner decisions, milestone lumpiness and the early stage of xPloration. Q2 does not remove those concerns. Management again highlighted that milestones are the primary near term revenue driver and that timing is uneven, with 2026 milestones more front loaded than 2025. That keeps back half revenue risk on the table. xPloration remains very early, with only 4 instruments installed and recurring consumables and software revenue not yet material. The company still reports a net loss of US$5.9m in the quarter and guides to GAAP operating expenses of US$84m to US$88m for 2026, so profitability still relies on continued partner progression. Cash is guided to US$37m to US$41m at year end, which implies ongoing burn that is sensitive to milestone receipts. These data points keep the core bear narrative about volatility and external dependency intact.

Compare OmniAb’s shrinking losses, heavier milestone mix and royalty potential with the stock’s recent 37.5% move in a single session. See whether analysts think that operational story justifies the current share price with the consensus price target analysis for OmniAb.

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If OmniAb’s shrinking losses and milestone driven revenue have your attention after this Q2 2026 move, register for free with Simply Wall St and add it to a Watchlist to track the share price against fair value and watch for your preferred entry point. Once you are invested, use the Portfolio Command Center to cut through market noise and focus on the most important updates to your holdings. For a longer term view, tap into the Community to see how other investors are thinking about opportunities and risks. This way you can spot potential catalysts or red flags early and stay a step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.