NeoGenomics (NASDAQ:NEO) Announces Quarterly Earnings Results, Beats Expectations By $0.02 EPS

NeoGenomics (NASDAQ:NEO) issued its quarterly earnings results on Tuesday. The medical research company reported $0.05 EPS for the quarter, beating the consensus estimate of $0.03 by $0.02, FiscalAI reports. The firm had revenue of $201.66 million during the quarter, compared to analysts’ expectations of $196.93 million. NeoGenomics had a negative return on equity of 2.80% and a negative net margin of 13.30%.

Here are the key takeaways from NeoGenomics’ conference call:

• Second-quarter revenue rose 11% to $201.7 million, exceeding guidance, while clinical revenue increased 14% on 2% volume growth and a 12% increase in average revenue per test.
• NGS revenue grew 26% year over year, driven by 14% volume growth and continued migration toward larger, higher-value panels. Management raised its full-year NGS growth outlook to the mid-20% range.
• Adjusted gross margin expanded 260 basis points to 48.1%, and adjusted EBITDA increased 36% to $14.4 million, supported by favorable test mix, pricing initiatives, operating discipline, and the Lab of the Future program.
• Management raised 2026 revenue guidance to $802 million-$806 million and adjusted EBITDA guidance to $56 million-$58 million, citing strong clinical momentum and expected continued margin improvement.
• Non-clinical revenue declined 15%, including a 26% drop in pharma revenue, leading the company to lower its 2026 non-clinical outlook to a high-single-digit decline. Management expects pharma to return to growth in 2027, but this depends on converting bookings into revenue and securing additional projects.

NeoGenomics Stock Performance

Shares of NASDAQ:NEO traded up $0.26 on Tuesday, hitting $13.40. The company had a trading volume of 2,402,401 shares, compared to its average volume of 2,281,783. NeoGenomics has a 1-year low of $4.72 and a 1-year high of $15.57. The stock has a market cap of $1.74 billion, a price-to-earnings ratio of -17.40 and a beta of 1.74. The stock has a 50 day moving average price of $12.29 and a 200 day moving average price of $10.65. The company has a current ratio of 4.42, a quick ratio of 4.06 and a debt-to-equity ratio of 0.41.

Insider Activity

In other news, Director Lynn A. Tetrault sold 5,307 shares of the firm’s stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $11.29, for a total transaction of $59,916.03. Following the completion of the sale, the director owned 91,422 shares in the company, valued at approximately $1,032,154.38. This trade represents a 5.49% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.10% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Entropy Technologies LP lifted its position in NeoGenomics by 6.9% during the fourth quarter. Entropy Technologies LP now owns 23,037 shares of the medical research company’s stock worth $271,000 after acquiring an additional 1,480 shares during the last quarter. Smartleaf Asset Management LLC grew its position in shares of NeoGenomics by 77.7% in the fourth quarter. Smartleaf Asset Management LLC now owns 3,466 shares of the medical research company’s stock valued at $42,000 after purchasing an additional 1,515 shares during the last quarter. MetLife Investment Management LLC increased its stake in shares of NeoGenomics by 2.2% during the fourth quarter. MetLife Investment Management LLC now owns 71,734 shares of the medical research company’s stock worth $844,000 after purchasing an additional 1,524 shares during the period. Caitong International Asset Management Co. Ltd increased its position in NeoGenomics by 110.2% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 2,968 shares of the medical research company’s stock worth $35,000 after acquiring an additional 1,556 shares during the period. Finally, Moors & Cabot Inc. increased its position in NeoGenomics by 14.6% during the third quarter. Moors & Cabot Inc. now owns 13,750 shares of the medical research company’s stock worth $106,000 after acquiring an additional 1,750 shares during the period. 98.50% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several research firms recently weighed in on NEO. TD Cowen reissued a “buy” rating on shares of NeoGenomics in a research note on Wednesday, July 15th. Weiss Ratings upgraded shares of NeoGenomics from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday, July 14th. Wall Street Zen raised shares of NeoGenomics from a “hold” rating to a “buy” rating in a report on Saturday, June 27th. Leerink Partners upgraded shares of NeoGenomics from a “market perform” rating to an “outperform” rating and raised their target price for the company from $12.00 to $25.00 in a research note on Wednesday, April 29th. Finally, Benchmark lifted their price target on NeoGenomics from $11.00 to $16.00 and gave the stock a “buy” rating in a report on Friday. Six investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, NeoGenomics has a consensus rating of “Hold” and an average price target of $14.57.

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.