Key Highlights

  • EPS of USD 0.07 edged past the USD 0.06 consensus estimate, and the GAAP loss narrowed to USD 0.06.
  • Revenue rose 11.4% to USD 209.3 million, topping the USD 206.7 million consensus estimate on clinical volume and pricing.
  • Next-generation sequencing revenue grew 29% and adjusted gross margin expanded more than 300 basis points to 49%.
  • Raised 2026 guidance targets revenue of USD 807 million to USD 809 million and adjusted EBITDA near USD 60 million.

NeoGenomics, Inc. (NASDAQ:NEO) reported third-quarter 2026 EPS of USD 0.07, above a consensus estimate of USD 0.06. On a verified GAAP basis, the net loss narrowed to USD 7.5 million, or USD 0.06 per share, from USD 27.1 million, or USD 0.21 per share, a year earlier, when the quarter carried a USD 7.1 million impairment charge. Revenue grew 11.4% to USD 209.3 million from USD 187.8 million, above a consensus estimate of USD 206.7 million.

Clinical revenue rose 13% to USD 195 million, built on a 2% rise in test volume and an 11% gain in average unit price. Next-generation sequencing revenue climbed 29% on 17% volume growth, with large panel volumes up more than 25%. Nonclinical revenue slipped about 10% to roughly USD 15 million as the company reviewed low-margin legacy pharma contracts.

Margins, Costs and Leadership Transition

GAAP gross margin widened to 46.2% from 42.8%, and adjusted gross margin reached 49%, with adjusted gross profit up 19% to USD 102 million. Management credited pricing, a richer sequencing mix and laboratory efficiency work. General and administrative expense fell 4% to USD 67.1 million, while sales and marketing rose 26.6% to USD 27.6 million as the sales force expanded to more than 160 sales resources. Adjusted EBITDA, a non-GAAP measure, rose to USD 18.7 million from USD 12.2 million.

Chief executive Tony Zook said this was his last earnings call in that role. The company's president and chief operating officer is scheduled to become chief executive on January 4, 2027, while Zook moves to executive chair. Management also highlighted Medicare coverage in August for RaDaR ST in immunotherapy response monitoring, two further indications under review, and a regional commercial plan that begins covering the test on December 15.

Cash Position and Updated Outlook

Cash and cash equivalents were USD 139.3 million, down about USD 6 million from the prior quarter after a roughly USD 10 million settlement payment with the Department of Justice, transitional effects from a new revenue cycle platform and infrastructure spending. In June the company issued USD 316.3 million of 0.75% convertible notes due 2032, used cash to repay part of its 2028 notes, and bought back USD 25.0 million of stock during the nine months. Operating cash flow was USD 2.9 million for the period, and capital spending is forecast near USD 35 million for 2026.

Management raised 2026 revenue guidance to USD 807 million to USD 809 million from USD 802 million to USD 806 million, and adjusted EBITDA guidance to about USD 60 million from USD 56 million to USD 58 million. The outlook assumes clinical growth in the low teens, sequencing revenue growth above 25% to approach USD 250 million, and nonclinical revenue down by a low double-digit rate. Fourth-quarter revenue growth is projected near 11% with adjusted gross margin of about 48%.

Variables to Monitor

Four items frame the next report. Sequencing is first: 29% revenue growth this quarter against a full-year projection above 25%. The adjusted gross margin is second, at 49% versus the 48% projected for the fourth quarter. Receivables are third, with management projecting that the revenue cycle platform effect normalizes into early 2027. Reimbursement is fourth, with two more RaDaR ST indications under Medicare review, one possibly by year-end, and the move of heme sequencing to the NovaSeq X platform scheduled for the first half of 2027.