NeoGenomics, Inc.

What they do

NeoGenomics provides oncology diagnostic testing and consultative services, including technical laboratory services and professional interpretation of results by licensed physicians and molecular experts. It operates CAP-accredited, CLIA-certified laboratories in Fort Myers, Florida; Aliso Viejo and Carlsbad, California; Research Triangle Park, North Carolina; Ramsey, New Jersey; and Houston, Texas, plus a CAP-accredited sample-processing laboratory in Cambridge, United Kingdom. Its test menu includes cytogenetics, FISH, flow cytometry, immunohistochemistry with digital imaging, molecular residual disease testing, and molecular testing.

Revenue drivers

• Clinical services — Clinical revenue was $187 million in Q2 2026, up 14% year over year, driven by robust NGS growth of 26%, and average revenue per clinical test rose 12% to $515 while clinical volume increased 2%.
• Molecular and NGS testing — Molecular testing, including NGS, is described as a rapidly growing field and the company says it is one of the key providers of solid tumor NGS testing and a leading provider of heme oncology diagnostic testing.
• Pharmaceutical development services — The company provides laboratory testing, biomarker analysis, data generation, and related scientific support services to pharmaceutical firms for sponsor-led research studies and clinical trials.

Recent performance

Second quarter 2026 total revenue was $202 million, up 11% year over year, with clinical revenue of $187 million up 14%. GAAP net income was $2 million, including an $11 million gain on extinguishment of debt, versus a net loss of $45 million in the prior-year quarter. Adjusted EBITDA rose 36% to $14 million. Consolidated gross profit was $92 million at a 46% margin, and adjusted gross profit margin was 48%, up 260 basis points. Cash from operations was $20 million in the quarter, ending with $146 million of cash, cash equivalents, and short-term investments.

Strategy

Management's stated 2026 focus is to grow through targeted innovation and extend market relevance in therapy selection and MRD. Planned initiatives include targeted product launches in therapy selection and MRD through a launch excellence program and focused investment in a solid tumor next-generation MRD assay for ultra-sensitive testing. The company also intends continued expansion into the community oncology market and to leverage partnerships to accelerate topline growth. It plans to drive operational efficiency through automation, process improvement, and platform upgrades while improving customer experience and cross-functional collaboration.

Risks

• Personnel dependence — The company states it depends on key personnel and needs to hire additional qualified personnel for its business to succeed.
• Scientific and technological change — Failure to keep pace with rapid scientific and technological change, or to develop or acquire licenses for new or improved testing technologies, could harm its competitive position and financial condition.
• Capacity constraints — The company cites the risk of capacity constraints, which could materially adversely affect its business, results of operations, and financial condition.
• Competition and pricing — Increased competition, including price competition, could materially adversely impact net revenues and profitability.

Outlook

The company raised full-year 2026 revenue and adjusted EBITDA guidance in its July 28, 2026 earnings release. The CEO said revenue growth of 11% exceeded the company's outlook and expressed confidence in delivering long-term profitable growth while investing in the business and expanding on-market testing solutions. Management also cited three RaDaR ST submissions to MolDx pending approval, reflecting an effort to support Medicare reimbursement for new indications.