Neogenomics 2025 Q2 Earnings Misses Targets as Net Loss Worsens by 141.9%

Neogenomics (NEO) reported its fiscal 2025 Q2 earnings on Jul 29th, 2025. Neogenomics faced challenges in meeting targets this quarter, with revenue growth overshadowed by a significant increase in net loss. The company's revised guidance for 2025 anticipates revenue between $720 million and $726 million, slightly below previous expectations. Adjusted EBITDA is expected to range from $41 million to $44 million, reflecting adjustments due to challenges in the pharma segment and the delayed launch of the PanTracer liquid biopsy. These adjustments indicate a cautious outlook while aiming for double-digit growth.

Revenue
Neogenomics reported a 10.2% increase in total revenue for 2025 Q2, reaching $181.33 million compared to $164.50 million in 2024 Q2. Client direct billing contributed the largest share with $131.16 million, followed by commercial insurance at $28.77 million. Medicare and other government sources added $21.39 million, while self-pay revenue amounted to $20,000. The company's total net revenue for the quarter stood at $181.33 million, showcasing growth across various segments.

Earnings/Net Income
Neogenomics experienced a widened loss of $0.35 per share in 2025 Q2, compared to a loss of $0.15 per share in 2024 Q2—a 133.3% increase. The net loss deepened to $-45.09 million, marking a substantial 141.9% rise from the $-18.64 million loss recorded in the previous year. The financial performance highlights a challenging quarter for the company.

Price Action
The stock price of Neogenomics has edged down 0.94% during the latest trading day, has plummeted 18.22% during the most recent full trading week, and has plummeted 26.68% month-to-date.

Post Earnings Price Action Review
The strategy of purchasing Neogenomics (NEO) shares after reporting quarter-over-quarter revenue growth and holding them for 30 days resulted in significant underperformance. This approach yielded a return of -81.00%, significantly lagging behind the benchmark's return of 87.35%. The excess return was -168.34%, and the compound annual growth rate (CAGR) stood at -28.39%, indicating substantial losses over the three-year period. Despite the downturn, the strategy saw a maximum drawdown of 0.00%, suggesting that shares were not sold during the lowest point of the market decline, potentially exacerbating losses. This outcome underscores the volatile nature of the investment strategy and highlights the challenges faced by the company in sustaining performance amid market fluctuations.

CEO Commentary
Anthony P. Zook - CEO & Director, emphasized that "our delivery this quarter was below expectations," acknowledging challenges in the nonclinical revenue segment, particularly from pharma customers. He noted a "solid second quarter" in clinical business with a 10% year-over-year revenue growth, driven by "significant volume and share gains." Zook highlighted the importance of execution excellence and strategic investments, particularly in community oncology and new product offerings like the PanTracer liquid biopsy. He expressed optimism about the future, stating, "I’m more optimistic than ever about Neo’s future," and emphasized confidence in achieving double-digit annual growth while addressing shareholder feedback.

Guidance
For full-year 2025, NeoGenomics now anticipates revenue between $720 million and $726 million, reflecting a growth rate of 9% to 10%. Adjusted EBITDA is expected to range from $41 million to $44 million. The guidance adjustment accounts for challenges in the pharma environment and the delayed launch of PanTracer liquid biopsy, with expectations of achieving double-digit growth while managing operational efficiencies.

Additional News
NeoGenomics has made significant strides recently, including the appointment of Dr. Marjorie Green to its Board of Directors on June 24, 2025, enhancing its leadership team with her expertise in oncology. Earlier this year, NeoGenomics launched the PanTracer Family of Genomic Profiling Tests at ASCO 2025, aimed at improving cancer care through advanced diagnostics. Additionally, on May 1, 2025, NeoGenomics successfully paid off its 1.25% Convertible Senior Notes, clearing $201.25M of convertible debt, showcasing its commitment to strengthening its financial position. These developments reflect the company's strategic focus on innovation and financial stability amidst ongoing challenges in the healthcare sector.