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what it is
NeoGenomics runs cancer-testing labs for doctors, hospitals, and drug companies working on cancer treatment.
how it gets paid
Last year Neogenomics made $727M in revenue. Molecular testing was the main engine at $254M, or 35% of sales.
why it's growing
Revenue grew 10.1% last year. $190M matters because more revenue is finally showing up in reported results.
what just happened
Quarterly revenue reached $190M, while gross margin held at 43.0% and EPS stayed negative at -$0.21.
At a glance
C++ balance sheet — some cracks in the foundation
35/100 earnings predictability — expect surprises
-$0.62 fy2024 eps est
$2B fy2026 rev est
15.9% operating margin
xvary composite: 56/100 — below average
What they do
NeoGenomics runs cancer-testing labs for doctors, hospitals, and drug companies working on cancer treatment.
When a hospital needs oncology testing fast, you want the lab already inside the workflow. NeoGenomics has 2,200 employees and a cancer-focused lab network in the U.S., Switzerland, and Singapore. Management said it holds about 25% share in hematology testing. Market share → a bigger slice of the market → so what: more samples keep the lab network busy and make switching annoying.
How they make money
$727M
annual revenue · their business grew +10.1% last year
Molecular testing
$254M
Morphologic analysis
$167M
Other clinical testing
$109M
Pharma Services
$182M
Information services
$15M
The products that matter
oncology diagnostic testing
Clinical Testing
$727M base · +15% clinical growth
Clinical Testing is the core business. Clinical revenue grew 15% last year against total company growth of 10.1%, which is why the stock still gets a margin-recovery hearing.
core
physician decision support
Information Services
no breakout disclosed here
The page does not break out revenue for information services. That matters because with total revenue at $727M, the economic center of gravity still looks like testing, not a high-margin software side hustle.
thin disclosure
sample processing footprint
Lab Operations
43.0% gross margin
This is not a separate revenue line, but it is where the equity story lives. At a 43.0% gross margin, better utilization is how a $727M business starts looking more investable.
the real bet
Key numbers
$727M
annual revenue
That is the real sales base today, which matters because every margin improvement starts from this number.
15.9%
operating margin
Operating margin → profit after running the lab network → so what: the core business is still losing money.
$406M
long-term debt
That debt equals 28% of capital, which limits how much financial pain the company can absorb.
1.6
beta
Beta → how jumpy the stock is versus the market → so what: you should expect sharper moves than a typical stock.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 1 — safer than 95% of stocks
- price stability 5 / 100
- long-term debt $406M (28% of capital)
C++ — risk rank looks solid but balance sheet grade needs watching.
Total return vs. market
Return history isn't available for NEO right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Quarterly revenue reached $190M, while gross margin held at 43.0% and EPS stayed negative at -$0.21.
The loud part is simple: sales grew, but profits still did not show up. Full-year revenue was $727M, up 10.1% vs. prior year, while still shows a -15.9% operating margin.
$190M
revenue
$0.21
eps
43.0%
gross margin
the number that mattered
$190M matters because more revenue is finally showing up in reported results, but the stock still needs proof that growth can outrun losses.
source: company earnings report, 2026
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What could go wrong
the top threat here is oncology testing demand and lab utilization softening at the same time. this is a fixed-cost business. when volume wobbles, the income statement usually feels it fast.
med
testing demand slows
A $727M revenue base looks sturdier than it is if customer budgets tighten or procedure volume fades. The company does not need a collapse to miss expectations. It just needs fewer samples moving through the system.
Revenue growth of 10.1% is part of the current bull case. If that fades, the stock loses its cleanest support.
med
lab utilization slips
Clinical Testing grew 15%, but lab economics only improve when throughput keeps pace with the cost base. Empty capacity is expensive. Busy capacity is how earnings surprise to the upside.
At a 43.0% gross margin, even small utilization changes can matter more than the headline revenue number suggests.
med
margin recovery stalls
The stock can live with negative EPS for only so long. A -$0.62 EPS estimate tells you investors are still underwriting a better future, not paying for present-day profitability.
If gross margin stops improving from 43.0%, the multiple has less reason to stay generous.
med
debt limits flexibility
$406M of long-term debt and a C++ balance sheet are manageable until execution slips. Then they become the thing that makes every bad quarter feel heavier.
Debt at 28% of capital does not scream distress. It does reduce your margin for error.
A $727M business with $406M in long-term debt and a 43.0% gross margin does not need dramatic failure to disappoint you. It just needs growth to cool while fixed lab costs stay put.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
next earnings update
You want one thing from the next print: proof that revenue growth and margin are moving together, not taking turns.
metric
gross margin
43.0% is the number that matters. Revenue can look fine while the equity story weakens underneath it if this line rolls over.
trend
Clinical Testing growth
Clinical revenue grew 15% last year. If that starts converging down toward the 10.1% company growth rate, the core engine is losing torque.
risk
balance sheet pressure
C++ balance sheet grade and $406M of debt are fine until they are not. In weaker quarters, this becomes the first thing the market remembers.
Analyst rankings
short-term outlook
mixed
analyst target data is thin here. in human-speak: there is no tidy wall street consensus to hide behind.
risk profile
volatile
beta is 1.6 and price stability is 5 / 100. translation: this stock can agree with your thesis and still punish your timing.
chart momentum
stock-specific
with a $5–$14 52-week range, the tape is telling you this trades on company execution more than on smooth market trends.
earnings predictability
35/100
Low predictability means estimates move around because the model is still proving itself. That is normal for a story like this. It is not comfortable.
source: institutional data
Institutional activity
institutional ownership data for NEO is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$11
current price
n/a
target midpoint · n/a from current
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