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NeoGenomics (NEO)
NASDAQ:NEO
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NeoGenomics (NEO) AI Stock Analysis

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NEO

NeoGenomics

(NASDAQ:NEO)

Rating:48Neutral
Price Target:
$8.50
▲(6.52% Upside)
NeoGenomics faces significant challenges with profitability and cash flow, reflected in its financial performance and valuation scores. While technical indicators show bullish momentum, they also suggest the stock may be overbought. The earnings call provided a mixed outlook, with strong clinical growth offset by pharma segment challenges. The strategic appointment of a new director is a positive long-term move but does not affect the current score.
Positive Factors
Legal Ruling
NEO announced that it had won a summary judgment in its RaDaR patent infringement case with Natera.
Market Expansion
NEO is now free to commercialize its RaDaR ST assay and has launched RaDaR ST to biopharma customers.
Stock Performance
Shares of NeoGenomics are up over 25% in the pre-market, as the company announced it won a summary judgment in its patent infringement lawsuit against Natera.
Negative Factors
Biopharma Market Challenges
The volatile macro issues around biopharma (tariffs, NIH spending, drug pricing) are not likely to abate anytime soon.
Guidance Cut
NEO shares are down on what turned out to be a larger than expected guide cut to FY25.
Revenue and EBITDA
Management lowered full-year guidance for revenue and Adjusted EBITDA after reporting worse than expected revenue and higher-than-expected special charges.

NeoGenomics (NEO) vs. SPDR S&P 500 ETF (SPY)

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 services, which include various cancer testing and diagnostic assays. The company charges healthcare providers, including hospitals and oncologists, for each test conducted. Key revenue streams include molecular testing, which encompasses a wide array of genetic and genomic tests, and anatomic pathology services. Additionally, NeoGenomics collaborates with pharmaceutical companies for clinical trial testing, providing another revenue source through partnerships. The company's focus on expanding its test menu and enhancing its capabilities in precision medicine contributes to its earnings, along with its strategic partnerships with healthcare institutions and research organizations.

NeoGenomics Earnings Call Summary

Earnings Call Date:Jul 29, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While the clinical segment showed robust growth and operational achievements, significant challenges in the nonclinical and pharma segments led to a downward revision of the full-year financial guidance. The company is taking steps to address these issues, but the immediate future appears cautious.
Q2-2025 Updates
Positive Updates
Solid Clinical Revenue Growth
Clinical revenue grew by 16% year-over-year, with organic clinical revenue increasing by 13%, driven by a 10% increase in test volumes and a 3% increase in AUP.
NGS Testing Expansion
NGS testing accounted for 32% of total clinical revenue and grew by 23% over the prior year, demonstrating strong market expansion.
Record High Test Volumes
The company reported a record quarter for test volumes, indicating robust demand and operational capacity.
Launch of PanTracer Liquid Biopsy
The PanTracer liquid biopsy is set to launch, expected to positively impact the NGS growth rate later in the year.
Cash Flow and Debt Reduction
Cash flow from operations was a positive $20 million, an improvement of 44% over the prior year, and the company significantly reduced debt by retiring $201 million in convertible notes.
Negative Updates
Nonclinical Revenue Decline
Nonclinical revenue decreased by 26% year-over-year, driven by weakness in pharma and biotech customer revenue.
Pharma Revenue Challenges
Market uncertainty and macro conditions led to revenue shortfall in the pharma segment, impacting the company's overall revenue guidance for the year.
Revised 2025 Financial Guidance
The company lowered its full-year 2025 revenue guidance to $720 million to $726 million, reflecting a 9% to 10% growth rate, down from previous expectations.
Impairment Charge
The company recorded a noncash impairment charge of $20 million associated with the replacement of the IVFL test and other asset write-downs.
Company Guidance
During the NeoGenomics Second Quarter 2025 Financial Results Call, the company provided updated financial guidance, projecting full-year revenue of $720 million to $726 million, reflecting 9% to 10% growth. This adjustment accounts for a $30 million reduction in guidance, with approximately two-thirds attributed to challenges in the pharma segment due to market uncertainties affecting NIH funding, drug pricing, and clinical trial enrollments. The clinical business demonstrated strong performance, with a 16% year-over-year growth, driven by a 10% increase in test volumes and a 3% increase in average unit price (AUP). Notably, next-generation sequencing (NGS) testing grew by 23%, accounting for 32% of total clinical revenue, although slightly below the 25% target. The delay in the launch of the PanTracer liquid biopsy contributed to lower-than-expected NGS growth, but the product is set for commercial launch imminently. The company remains focused on strategic investments in its sales force, digital pathology, and LIMS integration to enhance operational efficiencies and drive future growth.

NeoGenomics Financial Statement Overview

Summary
NeoGenomics shows revenue growth but struggles with profitability and cash flow. The stable balance sheet offers some financial cushion, yet negative free cash flow and net income margins indicate significant challenges.
Income Statement
42
Neutral
NeoGenomics has been experiencing consistent revenue growth over the years, with a notable increase of 11.6% from 2023 to 2024 and 4.3% in TTM (Trailing-Twelve-Months). However, the company is facing challenges in profitability, with negative EBIT and net income margins. The gross profit margin has remained relatively stable around 43.9% in TTM, but high operating expenses are impacting overall profitability.
Balance Sheet
55
Neutral
The company maintains a relatively stable financial position with a debt-to-equity ratio of 0.48 in TTM, indicating moderate leverage. However, the equity ratio has slightly decreased to 61.3% in TTM, suggesting some reduction in equity compared to total assets. The negative net income has adversely affected the return on equity, indicating challenges in generating shareholder value.
Cash Flow
38
Negative
NeoGenomics has shown improvement in operating cash flow, turning positive in TTM. However, free cash flow remains negative, indicating challenges in covering capital expenditures and other cash outflows. The free cash flow to net income ratio highlights the company's difficulty in translating earnings into cash flow, which could pose liquidity risks if not managed effectively.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue689.19M660.57M591.64M509.73M484.33M444.45M
Gross Profit302.64M290.10M244.60M187.90M187.06M185.89M
EBITDA-48.48M-1.51M-17.61M-82.33M-65.40M34.85M
Net Income-104.04M-78.73M-87.97M-144.25M-8.35M4.17M
Balance Sheet
Total Assets1.39B1.64B1.68B1.74B1.87B988.33M
Cash, Cash Equivalents and Short-Term Investments163.69M386.84M415.20M437.99M515.39M296.26M
Total Debt411.76M605.33M611.68M610.93M612.79M218.22M
Total Liabilities539.91M735.70M739.69M742.01M761.50M294.04M
Stockholders Equity854.04M902.34M941.54M998.02M1.11B694.29M
Cash Flow
Free Cash Flow-19.17M-34.04M-30.70M-96.88M-90.86M-27.64M
Operating Cash Flow14.05M7.02M-1.95M-65.99M-26.72M1.46M
Investing Cash Flow-14.74M12.86M76.71M517.00K-632.37M-159.44M
Financing Cash Flow-199.62M4.65M4.55M11.83M725.28M235.60M

NeoGenomics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.98
Price Trends
50DMA
6.67
Positive
100DMA
7.31
Positive
200DMA
10.44
Negative
Market Momentum
MACD
0.52
Negative
RSI
64.03
Neutral
STOCH
65.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEO, the sentiment is Positive. The current price of 7.98 is above the 20-day moving average (MA) of 6.85, above the 50-day MA of 6.67, and below the 200-day MA of 10.44, indicating a neutral trend. The MACD of 0.52 indicates Negative momentum. The RSI at 64.03 is Neutral, neither overbought nor oversold. The STOCH value of 65.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$672.79M-4.54%4.31%69.57%
59
Neutral
$669.80M30.59-2.15%20.40%-165.41%
56
Neutral
$697.27M12.8320.73%14.72%
52
Neutral
$631.77M-70.03%3.83%-137.31%
51
Neutral
$7.92B-0.43-41.69%2.21%22.29%-1.85%
48
Neutral
$1.10B-13.16%-7.31%29.84%
48
Neutral
$1.14B-11.76%9.70%-30.94%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NEO
NeoGenomics
7.98
-7.16
-47.29%
MYGN
Myriad Genetics
6.61
-20.53
-75.64%
OPK
Opko Health
1.35
-0.21
-13.46%
CDNA
CareDx
13.82
-13.61
-49.62%
FLGT
Fulgent Genetics
21.95
0.76
3.59%
CSTL
Castle Biosciences
23.56
-5.77
-19.67%

NeoGenomics Corporate Events

Executive/Board Changes
NeoGenomics Board Member Elizabeth Floegel Resigns
Neutral
Aug 8, 2025

On August 5, 2025, Elizabeth Floegel resigned from the Board of Directors of NeoGenomics, Inc., effective immediately. Her resignation was not due to any disagreements with the company’s operations, policies, or practices.

Executive/Board ChangesBusiness Operations and Strategy
NeoGenomics Expands Board, Appoints New Director
Positive
Jun 24, 2025

On June 19, 2025, NeoGenomics, Inc. expanded its Board of Directors from nine to ten members and appointed Marjorie C. Green as a new director. Dr. Green, who is currently Senior Vice President and Head of Oncology, Global Clinical Development at Merck, brings extensive experience in oncology and business development. Her appointment is expected to enhance NeoGenomics’ strategic direction in the precision oncology market, aligning with the company’s mission to improve patient care.

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.Date of analysis: Aug 30, 2025