Education
About Us
Working with TipRanks
Follow Us
NeoGenomics (NEO)
NASDAQ:NEO
Top Page
NeoGenomics
(NASDAQ:NEO)
Select Model
Select Model
Rating:52Neutral
Price Target:
$8.50
▲(6.78% Upside)
Action:ReiteratedDate:02/18/26
The score is held back primarily by weak financial quality (continued losses and negative free cash flow) and soft near-term technical momentum. These are partially offset by constructive FY2026 guidance (revenue growth, higher adjusted EBITDA, and an aim for free-cash-flow positivity) and modestly positive governance/news flow.
Positive Factors
Revenue Growth & Clinical Momentum
NeoGenomics delivered record FY2025 revenue and sustained clinical growth, reflecting durable demand for oncology diagnostics. Recurring clinical test volumes and higher average unit prices indicate predictable, patient-driven revenue that supports multi-quarter growth and underpins long-term commercial expansion.
NGS Strength and Product Launches
Rapid NGS adoption and a growing product mix (NGS ≈1/3 of clinical revenue) strengthen competitive positioning in precision oncology. New launches and demonstrated assay concordance expand addressable markets, increase higher-value test mix, and create lasting differentiation around biomarker-driven clinical services.
Improving Balance Sheet & Cash Trends
Debt metrics have meaningfully improved and cash balances remain material, giving the company financial flexibility to fund commercialization and LIMS consolidation. Combined with positive operating cash flow trends and guidance to reach FCF positivity, this supports sustained execution on strategic initiatives.
Negative Factors
Ongoing Losses and Negative Free Cash Flow
Despite revenue gains, the company remains unprofitable and free cash flow negative, which constrains reinvestment and increases dependence on operational improvement or external capital. Persistent losses limit returns and create execution sensitivity to cadence of margin and cash recovery.
Margin Pressure from Acquisition and Launch Costs
Acquisition integration and clinical launch expenses are compressing gross margins. These structural headwinds, together with multi-year LIMS migration whose benefits accrue later, imply margin recovery may be gradual and could limit near-term operating leverage from revenue growth.
Reimbursement and Pharma Revenue Timing Risk
Uncertain payer approvals for liquid biopsy reimbursements and a weakened pharma services book reduce visibility on medium-term revenue contributions. Delayed reimbursements or slower pharma recovery would materially slow cash conversion and postpone expected upside from new products.
NeoGenomics (NEO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.03B
Dividend YieldN/A
Average Volume (3M)1.87M
Price to Earnings (P/E)―
Beta (1Y)1.11
Revenue Growth10.10%
EPS Growth-44.29%
CountryUS
Employees2,200
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)0.06
Shares Outstanding129,812,210
10 Day Avg. Volume2,257,039
30 Day Avg. Volume1,867,457
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)0.36
Price to Sales (P/S)0.41
P/FCF Ratio-13.83
Enterprise Value/Market Cap0.51
Enterprise Value/Revenue0.72
Enterprise Value/Gross Profit1.72
Enterprise Value/Ebitda-13.63
Forecast
1Y Price Target
$14.75Price Target Upside85.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)0.17
Revenue Forecast (FY)$796.68M
NeoGenomics Business Overview & Revenue Model
Company DescriptionNeoGenomics, Inc. operates a network of cancer-focused testing laboratories in the United States, Europe, and Asia. It operates through, Clinical Services and Pharma Services segments. The company offers testing services to hospitals, reference labs, pathologists, oncologists, clinicians, pharmaceutical firms, and researchers. It provides cytogenetics testing services to study normal and abnormal chromosomes and their relationship to diseases; fluorescence in-situ hybridization testing services that focus on detecting and locating the presence or absence of specific DNA sequences and genes on chromosomes; flow cytometry testing services to measure the characteristics of cell populations; and immunohistochemistry and digital imaging testing services to localize cellular proteins in tissue section, as well as to allow clients to visualize scanned slides, and perform quantitative analysis for various stains. The company also provides molecular testing services, which focus on the analysis of DNA and/or RNA, and the structure and function of genes at the molecular level; morphologic analysis, which is the process of analyzing cells under the microscope by a pathologist for the purpose of diagnosis; and testing services in support of its pharmaceutical clients' oncology programs covering discovery and commercialization, as well as acts as a reference laboratory supplying anatomic pathology testing services. It has a strategic alliance agreement and laboratory services agreement with Inivata Limited. The company was founded in 2001 and is headquartered in Fort Myers, Florida.
How the Company Makes MoneyNeoGenomics generates revenue primarily from laboratory testing and related oncology diagnostic services. A key revenue stream is clinical testing for patient care, where it performs cancer diagnostic and molecular tests ordered by healthcare providers; revenue is recognized from reimbursed tests paid by third-party payors (e.g., commercial insurers, government programs) and, in some cases, patients or client institutions, with amounts dependent on test mix and reimbursement terms. Another major revenue stream is pharmaceutical and clinical trials services, where the company provides testing and laboratory support to biopharma customers for research, drug development, and clinical trials (e.g., biomarker testing, trial enrollment support, and other lab services); revenue in this area is typically driven by contracted projects and study volume. Additional revenue can come from pathology professional services and other lab-related services, but specific breakout details beyond the company’s reported segments are null.
NeoGenomics Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call presented a constructive operational and commercial story: record FY2025 revenue, robust clinical and NGS growth, new product launches (RADAR ST, PanTracer Pro), strong customer satisfaction (NPS 79), and a confident 2026 financial guide with meaningful adjusted EBITDA growth and a goal to achieve free cash flow positivity. Offsetting these positives are notable headwinds: a significant decline in nonclinical revenue, near-term margin pressure from the Pathline acquisition and launch costs, intentional volume rationalization that temporarily lowered volumes, and timing uncertainty around MolDX reimbursements for key liquid offerings. Management articulated clear strategies to prioritize higher-value testing, expand the salesforce, and deliver LIMS-driven efficiency gains over the coming years.Q4-2025 Updates
Positive Updates
Record Revenue and Full-Year Growth
Total revenue for FY2025 was $727.0M, representing 10% growth versus FY2024; Q4 total revenue was $190.0M, up 11% year-over-year.
Clinical Business Strength
Total clinical revenue grew 15% for the full year (13% excluding Pathline); Q4 clinical revenue increased 16% year-over-year, driven by volume and AUP gains.
NGS Outperformance
NGS revenue grew 23% year-over-year in Q4 and accounted for roughly one-third of total clinical revenue; five NGS products launched in 2023 contributed 23% of clinical revenue in Q4.
Improved Profitability Metrics
Q4 adjusted gross profit improved by $5.8M (7% YoY) and adjusted EBITDA was $13.4M, up 10% YoY; FY2025 adjusted EBITDA was $43.4M, a 9% improvement versus prior year.
Operational Momentum and Volume Trends
Public test volumes increased 11% in Q4; same-store revenue (excluding Pathline) was $170.0M in Q4, up 14% driven by a 6% increase in volumes and 7% AUP growth.
Strong Customer Satisfaction and Commercial Execution
Net Promoter Score of 79 and continued improvement in 2025; 14% growth in the number of pathologists/oncologists ordering five or more tests and an estimated ~40% of active pathologists/oncologists ordering five or more tests in 2025.
Strategic Product Launches and Reimbursement Wins
RADAR ST bridging study showed 97% concordance with RADAR 1.0 and secured MolDX reimbursement for HPV-negative head & neck and a subset of breast cancers; full clinical launch targeted by end of the month. PanTracer tissue volumes nearly doubled YoY (2024->2025) and PanTracer Pro was launched.
2026 Guidance and Financial Targets
2026 revenue guidance of $793M–$801M (midpoint ~ $797M) implying ~10% growth; adjusted EBITDA guidance $55M–$57M, representing ~27%–31% YoY growth; company aims to be free cash flow positive in 2026.
Balance Sheet and Cash Position
Ended Q4 with $160.0M of total cash and positive operating cash flow of $1.0M in Q4 and $5.0M for FY2025, with free cash flow improving over 35% versus 2024.
Commercial Capacity Expansion
Invested in salesforce: added 35 oncology sales specialists in late 2024/2025 and plans to add >25 oncology sales specialists by Q3 2026 to support RADAR ST and PanTracer commercialization.
Negative Updates
Nonclinical Revenue Decline
Nonclinical revenue declined over 25% in Q4 and decreased 24% for the full year 2025, contributing to margin pressure and being a known softness in the 2026 guide.
Gross Margin and Margin Headwinds
Adjusted gross margin for FY2025 was ~46%, down 111 basis points year-over-year, driven by the Pathline acquisition, nonclinical decline, and operating costs of the clinical liquid biopsy launch.
Short-Term Volume Rationalization
Management intentionally reduced exposure to higher-volume, lower-value clients, negatively impacting sequential volumes in Q4 and leading to a near-term shift to lower volume, higher AUP mix.
Pharma Book Weakness and Timing Risk
Pharma-related revenue is expected to continue modest erosion in 2026 (mid-to-upper 5%–10% decline) with return to growth anticipated in 2027; pharma represents only ~5%–6% of overall revenue but remains a near-term headwind.
Timing Uncertainty for Key Reimbursements
MolDX timing for PanTracer liquid (LBX) reimbursement and additional RADAR ST indications remains uncertain; guidance conservatively assumes modest RB contributions in back half of 2026, so faster approvals would be upside but are not included.
Modest Operating Cash Generation
Operating cash flow remained low-positive ($1.0M in Q4, $5.0M FY2025) despite improved free cash flow; cash declined slightly from Q3 and the company still aims to reach sustained free cash flow positivity in 2026.
LIMS Migration is Multi-Year
Migration from eight LIMS systems to a single LIMS is underway but is a multiyear program; meaningful efficiency and margin benefits are expected mainly in 2027 and beyond, so near-term gains are limited.
Q1 Weather-Related Volume Risk
Management disclosed that extreme weather impacts could reduce volumes and revenue in Q1 2026; this is factored into the full-year guide but represents near-term execution risk.
Company Guidance
NeoGenomics guided full‑year 2026 revenue of $793 million to $801 million (midpoint ~$797M), assuming RADAR ST generates mid‑single‑digit millions and PANTRASER liquid a modest contribution, with nonclinical revenue remaining soft and exiting the year down low‑to‑mid single digits; management said RADAR ST/PANTRASER and the Pathline impact are weighted to the back half of the year. They outlined a quarterly cadence of roughly +10% YoY in Q1, +8–9% in Q2, +9–10% in Q3 and slightly above +10% in Q4, and expect adjusted EBITDA of $55M–$57M (≈27–31% YoY growth), with adjusted EBITDA growth of low‑20% YoY in Q1–Q2 and low‑30% YoY in Q3–Q4. Management also expects adjusted gross margin improvement of ~100–120 basis points in 2026, plans to add more than 25 oncology sales specialists by Q3 to support launches, anticipates only modest RADAR ST revenue in 2026 with acceleration in 2027, aims to be free‑cash‑flow positive this year, and finished 2025 with ~$160M cash and $5M of operating cash flow.NeoGenomics Financial Statement Overview
Summary
Strong revenue growth and improved gross margin are offset by ongoing operating/net losses and still-negative free cash flow (despite recently positive operating cash flow). Balance sheet leverage has improved and looks manageable, but returns remain negative due to losses.Income Statement
Revenue has grown steadily from $444M (2020) to $727M (2025), with accelerating growth in 2025 (up ~256% vs. 2024). Gross margin has improved versus 2022 (mid-40% range in 2024–2025), indicating better underlying unit economics. However, profitability remains weak: the company is still generating operating losses and net losses (2025 net margin roughly -15%), and earnings have not shown consistent progress toward breakeven after a profitable 2020.34
Negative
Balance Sheet
Leverage looks manageable with debt-to-equity improving to ~0.49 in 2025 (down from ~0.67 in 2024), and equity remains sizable (~$837M in 2025). That said, total debt is still high at ~$409M and returns on equity are consistently negative due to ongoing losses, which limits balance-sheet quality despite acceptable leverage.58
Neutral
Cash Flow
Operating cash flow turned positive in recent years (about $5M in 2025 vs. negative in 2021–2023), showing some improvement in cash generation. However, free cash flow remains negative (about -$22M in 2025 and -$34M in 2024), indicating continued cash burn after capital spending, and cash conversion remains weak relative to reported losses.37
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 727.33M | 660.57M | 591.64M | 509.73M | 484.33M |
| Gross Profit | 282.54M | 290.10M | 244.60M | 187.90M | 187.06M |
| EBITDA | 1.75M | -1.51M | -17.61M | -82.33M | -65.40M |
| Net Income | -108.03M | -78.73M | -87.97M | -144.25M | -8.35M |
Balance Sheet | |||||
| Total Assets | 1.36B | 1.64B | 1.68B | 1.74B | 1.87B |
| Cash, Cash Equivalents and Short-Term Investments | 159.62M | 386.84M | 415.20M | 437.99M | 515.39M |
| Total Debt | 472.28M | 605.33M | 611.68M | 610.93M | 612.79M |
| Total Liabilities | 523.27M | 735.70M | 739.69M | 742.01M | 761.50M |
| Stockholders Equity | 836.56M | 902.34M | 941.54M | 998.02M | 1.11B |
Cash Flow | |||||
| Free Cash Flow | -21.78M | -34.04M | -30.70M | -96.88M | -90.86M |
| Operating Cash Flow | 5.23M | 7.02M | -1.95M | -65.99M | -26.72M |
| Investing Cash Flow | -12.34M | 12.86M | 76.71M | 517.00K | -632.37M |
| Financing Cash Flow | -200.29M | 4.65M | 4.55M | 11.83M | 725.28M |
NeoGenomics Technical Analysis
Negative
7.96
Price Trends
10.88
Negative
11.08
Negative
9.29
Negative
Market Momentum
-0.80
Positive
29.63
Positive
22.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEO, the sentiment is Negative. The current price of 7.96 is below the 20-day moving average (MA) of 9.01, below the 50-day MA of 10.88, and below the 200-day MA of 9.29, indicating a bearish trend. The MACD of -0.80 indicates Positive momentum. The RSI at 29.63 is Positive, neither overbought nor oversold. The STOCH value of 22.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NEO.
NeoGenomics Risk Analysis
NeoGenomics disclosed 43 risk factors in its most recent earnings report. NeoGenomics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NeoGenomics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $743.28M | -46.67 | -5.27% | ― | 10.15% | -295.52% | |
54 Neutral | $1.92B | -7.70 | -17.11% | ― | 20.53% | 82.91% | |
52 Neutral | $1.03B | -2.79 | -12.64% | ― | 10.10% | -44.29% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $484.39M | -13.36 | -5.40% | ― | 13.60% | 74.64% | |
48 Neutral | $428.27M | -1.57 | -79.81% | ― | 0.21% | -233.51% | |
48 Neutral | $888.11M | ― | -17.42% | ― | -9.75% | -31.28% |
* Healthcare Sector Average
NEO
NeoGenomics
7.96
-1.90
-19.27%
MYGN
Myriad Genetics
4.58
-5.43
-54.25%
OPK
Opko Health
1.12
-0.68
-37.78%
FLGT
Fulgent Genetics
15.51
-1.58
-9.25%
CSTL
Castle Biosciences
25.00
4.48
21.83%
GRAL
GRAIL Inc
46.84
16.55
54.64%
NeoGenomics Corporate Events
Business Operations and StrategyExecutive/Board Changes
NeoGenomics Announces Board Changes to Support Future Growth
Positive
Dec 30, 2025
On December 23, 2025, NeoGenomics’ board accepted the resignation of long-serving director Dr. Alison L. Hannah, effective December 31, 2025, and appointed diagnostics and lab services veteran John P. “Jack” Kenny to the board effective January 1, 2026, with his term running until the 2026 annual shareholders’ meeting. Kenny, a former president and CEO of Meridian Bioscience with more than three decades of executive and commercial experience at major diagnostics and healthcare companies, is expected to bolster NeoGenomics’ strategic focus on next-generation cancer testing such as NGS and MRD, reinforcing the company’s position in hematology cancer testing and supporting its plans for the next phase of growth while maintaining standard independent-director compensation and governance practices.
The most recent analyst rating on (NEO) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on NeoGenomics stock, see the NEO Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.