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NeoGenomics (NEO)
NASDAQ:NEO
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NeoGenomics
(NASDAQ:NEO)
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Rating:52Neutral
Price Target:
$11.50
▲(16.99% 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 and 2026 guidance
NeoGenomics has produced durable top-line expansion, reporting record FY2025 revenue and guiding ~10% revenue growth for 2026. Consistent revenue growth underpins scale benefits, funds commercial investments, and indicates sustained demand in oncology diagnostics over the next 2–6 months and beyond.
Product portfolio and reimbursement progress
Robust NGS growth and multiple product launches (RaDaR ST, PanTracer Pro) with initial MolDX reimbursement create durable competitive advantages. Reimbursed, high-value tests expand addressable market access, support higher average unit revenue, and underpin sustainable clinical revenue mix improvement.
Improving cash generation and manageable leverage
Operating cash flow turned positive and leverage has improved, indicating better cash generation and balance-sheet flexibility. This reduces refinancing risk, supports ongoing commercial investments and product launches, and improves the odds of achieving sustained free-cash-flow positivity over the medium term.
Negative Factors
Ongoing losses and negative free cash flow
Despite revenue growth, the company remains unprofitable with operating and net losses and negative free cash flow. Persistent losses constrain reinvestment flexibility, extend reliance on existing cash or debt, and make achieving durable, self-sustaining profitability a multi-quarter structural challenge.
Nonclinical and pharma revenue weakness
A material decline in nonclinical revenue and a weakened pharma book reduce revenue diversification and pressure margins. Reliance on recovering pharma and lab services creates structural risk if these segments remain soft, slowing overall margin recovery and the path to stable earnings.
Margin headwinds and delayed efficiency gains
Margins are under pressure from Pathline acquisition and launch costs, and the planned LIMS consolidation is a multi-year program. Near-term margin compression plus delayed systems-driven efficiency gains limit quick margin recovery and compress free cash flow for multiple quarters.
NeoGenomics (NEO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.23B
Dividend YieldN/A
Average Volume (3M)1.87M
Price to Earnings (P/E)―
Beta (1Y)1.05
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 Cap0.45
Enterprise Value/Revenue0.77
Enterprise Value/Gross Profit1.83
Enterprise Value/Ebitda-14.50
Forecast
1Y Price Target
$14.40Price Target Upside46.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
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 through its laboratory testing services, which include a variety of cancer-related tests such as genomic profiling and biomarker testing. The company charges healthcare providers, including hospitals and physician practices, for the tests performed. Key revenue streams include sales from its extensive test menu, which is continuously updated with new assays and technologies to meet the evolving needs of the oncology market. Additionally, NeoGenomics benefits from partnerships with pharmaceutical companies and research institutions, which can lead to collaborative projects and additional revenue opportunities. The company's focus on developing and marketing new testing solutions further enhances its earning potential by attracting more clients seeking advanced cancer diagnostics.
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
9.83
Price Trends
11.80
Negative
11.24
Negative
9.23
Positive
Market Momentum
-0.65
Positive
29.86
Positive
23.88
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 9.83 is below the 20-day moving average (MA) of 10.84, below the 50-day MA of 11.80, and above the 200-day MA of 9.23, indicating a neutral trend. The MACD of -0.65 indicates Positive momentum. The RSI at 29.86 is Positive, neither overbought nor oversold. The STOCH value of 23.88 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 40 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 | $832.18M | -33.04 | -5.21% | ― | 10.15% | -295.52% | |
54 Neutral | $2.08B | ― | -16.07% | ― | 20.53% | 82.91% | |
52 Neutral | $1.23B | -11.26 | -12.42% | ― | 10.10% | -44.29% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $443.47M | -7.22 | -5.39% | ― | 13.60% | 74.64% | |
48 Neutral | $468.48M | -1.27 | -68.45% | ― | 0.21% | -233.51% | |
46 Neutral | $941.24M | -4.10 | -17.14% | ― | -9.75% | -31.28% |
* Healthcare Sector Average
NEO
NeoGenomics
9.50
-0.08
-0.84%
MYGN
Myriad Genetics
5.01
-5.38
-51.78%
OPK
Opko Health
1.24
-0.51
-29.14%
FLGT
Fulgent Genetics
14.20
-1.08
-7.07%
CSTL
Castle Biosciences
27.99
6.72
31.59%
GRAL
GRAIL Inc
52.63
16.30
44.87%
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.