NeoGenomics Q2 revenue falls short, lowers FY23 guidance.

• NeoGenomics reports Q2 revenue of $181.3 million, missing estimates. • Net loss of $45.1 million. • 2025 revenue forecast reduced to $720-$726 million. • Adjusted EBITDA projection lowered to $41 million. • Lawsuit filed against NeoGenomics and officers for securities fraud.

NeoGenomics (NASDAQ: NEO) reported mixed financial results for Q2 2025, with a significant revenue miss and a net loss. The company's stock experienced a notable decline in pre-market trading, leading to a revised price target by Piper Sandler.

Key Points:

- Revenue: NeoGenomics reported Q2 revenue of $181.3 million, falling short of analyst estimates by $1.8 million.
- Net Loss: The company incurred a net loss of $45.1 million, compared to a net income of $20.3 million in the same quarter last year.
- 2025 Revenue Forecast: NeoGenomics revised its full-year 2025 revenue guidance to $720-$726 million, a decrease from the previous projection of $740-$745 million.
- Adjusted EBITDA: The adjusted EBITDA projection was lowered to $41 million, down from the previous estimate of $44 million.
- Litigation: NeoGenomics and its officers are facing a lawsuit alleging securities fraud.

Market Reaction:

The market reacted negatively to the earnings report, with the stock experiencing a significant decline in pre-market trading. Despite an earnings per share (EPS) beat, the revenue miss and ongoing challenges in the pharma services sector have raised concerns among investors. The stock's current price is nearing its 52-week low, highlighting market skepticism despite the EPS beat.

Piper Sandler Analysis:

Piper Sandler has maintained an overweight rating on the stock, indicating a belief in NeoGenomics' long-term prospects. However, the firm has lowered its price target to $11 from $12, reflecting concerns over the recent revenue miss and the ongoing challenges in the pharma services sector.

Conclusion:

NeoGenomics reported a mixed performance in its Q2 2025 earnings report, with an EPS beat but a revenue miss. The stock experienced a significant decline in pre-market trading, with Piper Sandler lowering its price target to $11. The company remains focused on innovation and growth, with the Pan Tracer Liquid Biopsy launch scheduled for commercialization. However, it faces ongoing challenges in the pharma services sector, which may impact its financial performance in the near term.

References:

[1] https://www.ainvest.com/news/neogenomics-piper-sandler-maintains-overweight-pt-11-12-2508/
[2] https://www.nasdaq.com/articles/organon-ogn-fiscal-q2-revenue-beats-1