NeoGenomics Inc. (NASDAQ: NEO) has shown steady revenue growth over the past four years. Quarterly operating revenue increased from approximately $125 million in Q2 2022 to $181 million in Q2 2025. Despite this growth in top line, the company has reported consistent net losses each quarter over this period, indicating ongoing challenges in achieving profitability.
The gross profit margin has remained relatively stable, with gross profit around 40-45% of revenue, which is a positive sign reflecting controlled cost of revenue relative to sales.
Selling, General & Administrative (SG&A) and operating expenses have increased in line with revenue growth, but impairment and restructuring charges in some quarters have negatively impacted operating income. Notably, impairment charges in Q2 2025 resulted in a substantial increase in total operating expenses.
The company has consistently reported negative operating income, with losses widening in recent quarters. For example, operating income declined from approximately -$26 million in Q2 2022 to -$47.6 million in Q2 2025.
Interest expense has remained relatively modest compared to operating losses, and other income has helped offset some costs, but overall pre-tax losses have persisted and even deepened.
NeoGenomics has been investing steadily in property, plant, and equipment each quarter, with purchases ranging roughly from $4.3 million to $13 million, reflecting continuous capital expenditure to support business growth.
Cash flow from operating activities has fluctuated substantially, with some quarters showing positive cash flow (e.g., $20.3 million in Q2 2025) and others negative. Capital expenditures and investing activities have generally resulted in negative cash flow due to ongoing investment in property, plant, equipment, and short-term investments.
On the balance sheet, NeoGenomics maintains a strong cash and equivalents position, fluctuating around $150 million to over $360 million quarterly. Accounts receivable and inventories have generally increased in line with revenue growth.
The company carries significant long-term debt, approximately $341 million as of Q2 2025, which has been relatively stable but presents a sizable liability needing monitoring.
Equity has decreased over time, largely due to accumulated losses, reducing shareholders’ equity from about $1.0 billion in early 2022 to $854 million by mid-2025.
- Consistent revenue growth from $125 million in Q2 2022 to $181 million in Q2 2025, indicating expanding business scale.
- Stable gross profit margins around 40-45%, suggesting controlled cost of revenue relative to sales.
- Strong cash and cash equivalents position (around $154 million in Q2 2025), providing liquidity.
- Continued investment in property, plant, and equipment indicates focus on capacity and growth.
- Fluctuating but occasionally positive operating cash flow (e.g., $20.3 million in Q2 2025), showing potential for operational improvements.
- Significant accounts receivable growth tied to revenue increases, requiring efficient collections management.
- Consistent net losses each quarter, with net loss increasing to -$45 million in Q2 2025, reflecting ongoing profitability challenges.
- Operating income remains negative and has worsened, reaching -$47.6 million in Q2 2025.
- High impairment charges in recent quarters increased expenses and worsened losses.
- Substantial long-term debt (~$341 million) creating balance sheet leverage and potential risk.
In summary, NeoGenomics demonstrates good revenue growth and solid gross margins, supported by continued investment in operational capacity and healthy liquidity. However, the company continues to face challenges in turning this growth into profitability, with rising net losses and operating expenses, including occasional impairments. The sizeable long-term debt also warrants attention. Investors should watch for improved operational efficiencies and steps toward consistent profitability in future quarters.
08/25/25 04:50 AMAI Generated. May Contain Errors.
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