NeoGenomics (NASDAQ:NEO) Announces Quarterly Earnings Results, Hits Estimates

Key Points

• NeoGenomics reported Q1 EPS of $0.01 (in line with estimates) and revenue of $186.7M (up 11% YoY), with adjusted EBITDA of $9M; management raised full‑year revenue guidance to $797M–$803M and reiterated adjusted EBITDA guidance of $55M–$57M.
• NGS is the company’s growth engine—NGS revenue grew 26% and now represents about one‑third of clinical revenue, and management expects the PanTracer family plus planned sales hires and the full launch of RaDaR ST to sustain above‑market NGS/MRD growth.
• Non‑clinical (pharma) revenue declined 15% to $15.5M, a near‑term headwind, while adjusted gross margin was 46% (down ~80 bps); the company expects ~100 bps of full‑year margin improvement and plans a H2 refinancing of a $342M convertible.

NeoGenomics (NASDAQ:NEO - Get Free Report) released its earnings results on Tuesday. The medical research company reported $0.01 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.01, FiscalAI reports. The business had revenue of $186.67 million for the quarter, compared to analyst estimates of $184.53 million. NeoGenomics had a negative net margin of 14.85% and a negative return on equity of 3.10%. The company's revenue was up 11.3% on a year-over-year basis.

Here are the key takeaways from NeoGenomics' conference call:

• NeoGenomics reported Q1 revenue of $186.7M (up 11% YoY) and clinical revenue of $171.2M (up 14%), with adjusted EBITDA of $9M (up 27%); management raised full‑year revenue guidance to $797M–$803M and reiterated adjusted EBITDA guidance of $55M–$57M.
• NGS is the growth engine—NGS revenue grew 26% and now represents ~one‑third of clinical revenue, and management expects the PanTracer family (including MolDX‑approved PanTracer LBx) plus planned sales hires to sustain above‑market NGS growth.
• Management reentered MRD with the full launch of RaDaR ST (ctDNA sensitivity to 1 ppm) for HPV‑negative head & neck and a breast subset; early adoption shows 29% of prior RaDaR customers ordered ST and MolDX submissions for two additional indications could materially expand the MRD opportunity.
• Non‑clinical (pharma) revenue declined 15% to $15.5M and remains a headwind in 2026, although management expects it is near the trough with sequential recovery in the back half of the year.
• Adjusted gross margin was 46% (down ~80 bps) due to Pathline dilution, pre‑approval PanTracer LBx volume and higher freight costs, but the company expects ~100 bps of full‑year margin improvement from lab automation and efficiency initiatives and plans to pursue a H2 refinancing of a $342M convertible.

NeoGenomics Stock Up 4.8%

NEO traded up $0.41 during midday trading on Tuesday, hitting $9.02. The company had a trading volume of 2,892,544 shares, compared to its average volume of 1,954,998. NeoGenomics has a 52 week low of $4.72 and a 52 week high of $13.74. The company has a quick ratio of 3.94, a current ratio of 4.26 and a debt-to-equity ratio of 0.41. The company has a market capitalization of $1.17 billion, a price-to-earnings ratio of -10.74 and a beta of 1.72. The stock's 50 day moving average price is $8.50 and its 200 day moving average price is $10.45.

Institutional Investors Weigh In On NeoGenomics

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Ieq Capital LLC bought a new stake in NeoGenomics in the fourth quarter valued at $177,000. Captrust Financial Advisors bought a new stake in NeoGenomics in the fourth quarter valued at $133,000. Gamco Investors INC. ET AL increased its stake in NeoGenomics by 45.5% in the third quarter. Gamco Investors INC. ET AL now owns 16,000 shares of the medical research company's stock valued at $124,000 after purchasing an additional 5,000 shares in the last quarter. WINTON GROUP Ltd bought a new stake in shares of NeoGenomics during the fourth quarter worth about $121,000. Finally, CIBC Bancorp USA Inc. bought a new stake in shares of NeoGenomics during the third quarter worth about $106,000. 98.50% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the stock. Needham & Company LLC boosted their target price on shares of NeoGenomics from $14.00 to $15.00 and gave the company a "buy" rating in a report on Tuesday, February 17th. UBS Group restated a "hold" rating on shares of NeoGenomics in a report on Wednesday, February 18th. Zacks Research lowered shares of NeoGenomics from a "strong-buy" rating to a "hold" rating in a report on Friday, February 20th. Weiss Ratings restated a "sell (d-)" rating on shares of NeoGenomics in a report on Friday, March 27th. Finally, Piper Sandler boosted their target price on shares of NeoGenomics from $12.00 to $13.00 and gave the company an "overweight" rating in a report on Tuesday, February 24th. Five equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $11.86.

About NeoGenomics

NeoGenomics, traded on the Nasdaq under the symbol NEO, is a leading provider of cancer-focused genetic and molecular testing services. Headquartered in Fort Myers, Florida, the company operates an integrated network of CAP-accredited and CLIA-certified laboratories across the United States, Europe and Asia. NeoGenomics delivers diagnostic insights that support oncologists, pathologists and healthcare institutions in the detection, prognosis and treatment of hematologic and solid tumor cancers.

The company's core service offerings include flow cytometry, immunohistochemistry, fluorescence in situ hybridization (FISH), karyotyping and advanced molecular assays such as next-generation sequencing (NGS) panels and polymerase chain reaction (PCR) tests.

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