NeoGenomics to exit lower-value contracts

NeoGenomics posts record Q4 results with non-GAAP EPS $0.06 (+50% YoY) and revenue $190.2M (+11%), beating estimates, delivering positive adjusted EBITDA and a smaller GAAP net loss, and guiding 2026 to ~10% revenue growth with faster EBITDA expansion; on its earnings call, it said it will exit lower‑value, high‑volume contracts to focus on higher‑value therapy‑guided testing, cautioning this shift could compress testing volumes early in 2026.

• Investor takeaway: record Q4 revenue, strong NGS and AUP gains, and tenth straight positive EBITDA quarter.
• Biggest positive: clinical revenue +16% and NGS +23% in Q4, with AUP up 5% and accelerating.
• Biggest risk: MRD (RaDaR ST) and PanTracer liquid ramps depend on uncertain MolDx reimbursement timing and adoption.
• Q4 revenue: $190M (+11% YoY); full-year 2025 revenue: $727M (+10% YoY), both driven by clinical strength.
• Nonclinical/pharma revenue fell 24% in 2025 and is expected to remain soft, down low-to-mid single digits in 2026.
• 2026 guidance: revenue $793–$801M (~10% growth) and adjusted EBITDA $55–$57M (+27–31% YoY), with Q1–Q4 growth re-accelerating through the year.
• Company targets 100–120 bps adjusted gross margin expansion in 2026 (from 46% in 2025), mainly via mix shift to higher-value tests and operational efficiencies.

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