NeoGenomics’ fourth quarter results were met with a negative market reaction, despite revenue and non-GAAP earnings per share surpassing Wall Street’s expectations. Management attributed the quarter’s performance to continued growth in next-generation sequencing (NGS) test volumes, robust adoption of new products, and a deliberate shift away from lower-value, high-volume testing. CEO Anthony Zook noted, “Our clinical business continued its robust growth with revenue increasing 16% year over year,” highlighting the company’s ability to drive higher average revenue per test through targeted commercial execution.
Is now the time to buy NEO? Find out in our full research report (it’s free for active Edge members).
NeoGenomics (NEO) Q4 CY2025 Highlights:
- Revenue: $190.2 million vs analyst estimates of $188.3 million (10.6% year-on-year growth, 1% beat)
- Adjusted EPS: $0.06 vs analyst estimates of $0.04 ($0.02 beat)
- Adjusted EBITDA: $13.38 million vs analyst estimates of $13.77 million (7% margin, 2.8% miss)
- Adjusted EPS guidance for the upcoming financial year 2026 is $0.19 at the midpoint, beating analyst estimates by 4.9%
- EBITDA guidance for the upcoming financial year 2026 is $56 million at the midpoint, below analyst estimates of $57.38 million
- Operating Margin: -7.1%, up from -10.7% in the same quarter last year
- Market Capitalization: $1.29 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From NeoGenomics’s Q4 Earnings Call
- David Michael Westenberg (Piper Sandler) asked for detail on the timing of RADAR ST reimbursement and sales force expansion. CEO Anthony Zook and EVP Warren Stone explained the launch focus and sales team build-out for targeted indications, highlighting initial efforts in head and neck cancer.
- Bill Bonello (Craig Hallum) inquired about the impact of exiting low-value test contracts and future volume trends. Zook emphasized the shift toward higher-margin testing and clarified that most low-value exits would be evident by mid-year.
- Andrew with William Blair asked about the workflow and financial impact of LIMS system integration. Zook and Stone described a phased rollout, with efficiency benefits expected to materialize more fully in 2027 and 2028.
- Andrew Harris Cooper (Raymond James) questioned the outlook for the pharma segment and leading products. Zook confirmed continued modest erosion in pharma this year, with RADAR ST expected to drive eventual recovery.
- Mark Massaro (BTIG) sought clarity on gross margin expansion in 2026. CFO Abhishek Jain forecasted 100–120 basis points of gross margin improvement, primarily from product mix and workflow efficiencies.
Catalysts in Upcoming Quarters
In coming quarters, the StockStory team will watch (1) the pace of adoption for RADAR ST and the timing of reimbursement approvals for new indications, (2) sustained NGS and PANTRASER portfolio momentum as new products reach the market, and (3) progress on LIMS integration and operational efficiencies. Continued success in shifting the product mix toward higher-value tests and securing favorable coverage decisions will be critical for sustained growth.
NeoGenomics currently trades at $9.98, down from $11.38 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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