NeoGenomics, Inc. (NASDAQ: NEO) reported fourth‑quarter and full‑year 2025 results that exceeded analyst expectations. Total revenue rose 10% to $727 million, driven by a 23% increase in next‑generation sequencing (NGS) sales in the quarter and a 15% rise in clinical revenue for the year. Earnings per share were $0.06, beating the consensus estimate of $0.04, while the company posted a net loss of $10 million for the quarter and $108 million for the year, a reduction from $15 million and $79 million respectively in the same periods a year earlier. Operating expenses increased modestly to $97 million, largely due to expanded sales force and ongoing LIMS integration costs, and adjusted EBITDA reached $13 million for the quarter, up from $12 million in Q3.
Gross profit margin for the quarter was 43.8%, slightly higher than the 42.8% reported in Q3, reflecting a mix shift toward higher‑margin NGS panels. The company’s operating income remained positive, and adjusted EBITDA growth was supported by disciplined cost management and a favorable product mix. "We ended 2025 on a strong note, delivering double‑digit revenue growth in the fourth quarter on the strength of our clinical volumes and ongoing mix shift toward higher value tests," said CEO Tony Zook.
Clinical revenue growth was a key driver of the results. NGS sales grew 23% in Q4 and 22% for the full year, well ahead of market growth, "reflecting our ability to pull innovation through the community channel, where we enjoy a leadership position and where approximately 80% of all cancer care is delivered today," Zook added. The newly cleared RaDaR ST MRD assay is positioned to generate revenue beginning in 2026, with the company anticipating modest contribution in 2026 but substantial long‑term opportunity. "Looking ahead, the imminent clinical launch of our RaDaR ST MRD assay further enhances our menu of advanced tests and allows us to address the $20+ billion molecular residual disease monitoring market. And while we anticipate modest revenue contribution from MRD in 2026, we believe the longer‑term opportunity, in 2027 and beyond, is substantial. We believe RaDaR ST, together with our PanTracer family of therapy selection solutions, will be a key driver of our revenue growth over the long term," Zook said.
Management reiterated its 2026 guidance, projecting consolidated revenue of $793 million to $801 million and adjusted EBITDA of $55 million to $57 million, a year‑over‑year growth of approximately 27% to 31%. "We expect adjusted EBITDA to be in the range of $55 million to $57 million for 2026, representing year‑over‑year growth of approximately 27% to 31%," said incoming CFO Abhishek Jain. The company also expects gross margins to expand by about 100 to 120 basis points in 2026, "anticipating the gross margins to expand at about like 100 basis points... So the gross margin is expected to improve at about 100 to 120 basis points in 2026," Jain added. Investors noted a muted market reaction, with concerns about valuation and the timing of reimbursement for new assays tempering enthusiasm for the strong results.
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