NEO earnings analysis
What we found in NEO's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
NeoGenomics delivered Q2 revenue of $201.656 million, up 11.2% year over year and 7.8% sequentially, with gross margin expanding 300 basis points year over year to 45.6%. GAAP diluted EPS improved to $0.02 from losses of $0.35 in the prior-year quarter and $0.13 in Q1, while operating cash flow was positive $11.822 million for the first half. Results benefited from cost discipline and a $11.181 million debt-extinguishment gain, but cash declined to $145.539 million following substantial refinancing, capped-call, and share-repurchase activity.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew 11.2% YoY and 7.8% sequentially
- Q2 revenue rose $20.326 million, or 11.2% year over year, to $201.656 million; this was also $14.656 million (7.8%) above Q1 2026 revenue of $187 million. Management attributed growth to higher test volume and strategic reimbursement initiatives.
- Gross margin expanded 300 bps YoY
- Gross margin expanded to 45.6% from 42.6% a year earlier and 43.3% in Q1 2026. Gross profit increased $14.620 million, or 18.9%, to $91.878 million, outpacing the 5.5% increase in cost of revenue.
- Profitability improved sharply
- GAAP diluted EPS improved to $0.02 from a loss of $0.35 in Q2 2025 and a loss of $0.13 in Q1 2026. The operating loss narrowed to approximately $9.771 million, or 4.8% of revenue, from an operating-margin loss of 26.3% a year earlier and 9.8% in Q1.
- Operating cash flow turned positive
- First-half operating cash flow was positive $11.822 million, versus cash outflow of $4.997 million a year earlier. The $16.819 million improvement was primarily driven by a $22.238 million increase in gross profit.
- EBITDA and overhead trends improved
- Adjusted EBITDA increased to $14.467 million from $10.675 million in Q2 2025, while GAAP net income was $2.238 million versus a $45.092 million loss. G&A declined $8.134 million, or 11.3%, to $63.613 million.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Debt gain aided reported GAAP profit
- Q2 GAAP net income of $2.238 million included an $11.181 million gain on extinguishment of debt. Excluding that item, the company still reported an operating loss of approximately $9.771 million.
- Cash and working capital declined
- Liquidity fell during the first half: cash and equivalents declined $14.079 million to $145.539 million at June 30, 2026, while working capital was $275.595 million versus $292.433 million a year earlier.
- Material convertible-debt refinancing activity
- The company issued $316.3 million of 0.75% convertible notes due 2032 and used $262.9 million for partial repayment of 2028 notes; it also spent $28.7 million on capped calls and $25.0 million repurchasing stock. These financing actions add execution and capital-structure complexity.
- Pharma demand and investment spending pressure
- Management said non-clinical revenue was lower because of macro clinical-trial trends in the pharmaceutical industry, while R&D expense rose $1.738 million, or 19.3%, to $10.761 million as innovation investment continues.
- No formal risk-factor changes; capex remains elevated
- No updated risk factors were disclosed in Item 1A; the filing instead refers investors to the February 17, 2026 Form 10-K. Management nevertheless forecasts $30.0 million to $35.0 million of 2026 capex, after spending $13.2 million in the first six months.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.02
- Gross margin
- 45.6%
- Operating margin
- -4.8%
- Segment
- Single reportable segment; consolidated revenue was $201.656 million, up 11.2% year over year. The filing provides no separate segment-revenue breakdown.
What they said about what is next.
The 10-Q does not provide quantitative revenue or EPS guidance. Management anticipates 2026 capital expenditures of $30.0 million to $35.0 million and states cash on hand plus collections should fund operating and capital needs for at least the next 12 months.
The filing reads better than the one before it.
What came before.
- 10-Q · April 28, 2026
- NeoGenomics reported Q1 2026 results with revenues of $186.67M, surpassing analyst forecasts of $184.47M, and an EPS of $0.01, beating the expected loss of $0.02. This quarter marks a significant increase in revenue of…
- 10-K · February 17, 2026
- NeoGenomics positions itself as a comprehensive, oncology-focused diagnostics provider prioritizing growth in therapy selection and MRD (molecular residual disease) while leveraging its PanTracer/NeoTYPE/NGS menu and…
- 10-Q · October 28, 2025
- NeoGenomics reported revenue of $187.8M for the quarter ended September 30, 2025, up versus the prior-year quarter and showing contribution from the April Pathline acquisition. Gross profit was $80.4M (42.8% margin) but…
- 10-Q · July 29, 2025
- NeoGenomics reported quarter revenue of $181,330,000 (up 10.2% YoY and 7.9% QoQ) but swung to a larger operating loss driven by impairment and integration costs. The company recognized $20,041,000 of impairment charges…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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