NeoGenomics, Inc. (NEO) Stock

Understand NeoGenomics, Inc.: how it makes money

NeoGenomics runs a network of cancer-focused diagnostic labs that sell cytogenetics, FISH, and next-generation sequencing tests to hospitals, oncologists, and drug companies. Most revenue comes from Clinical Services (hospital and physician panels), while a smaller Pharma Services arm charges drugmakers for nonclinical studies.

Revenue scales on test volume times average revenue per test, and the ongoing shift from simple karyotype assays to multi-gene NGS panels is what drives AUP higher each year.

Business quality (Weak): Growth is accelerating (revenue up 11% YoY) but the operating structure is not yet self-funding: a 43% gross margin does not yet clear overhead, leaving the company at roughly a 10% operating loss.

Bull case

• NGS strength drove a guidance raise: Management raised full-year revenue and EBITDA guidance after NGS showed volume and mix strength across large panels and hematology products. Beating quarterly expectations and then guiding higher signals the clinical growth engine is compounding, not stalling.
• Pricing and mix lift AUP: Management flagged that pricing and mix initiatives provide additional AUP growth potential on top of the 7.8% year-over-year AUP increase already in the data. For a per-test business, a rising AUP means each unit of volume contributes more gross profit without needing new lab capacity.

Bear case

• Pharma arm is dragging the ship: Pharma revenue missed expectations and management lowered the full-year nonclinical outlook. That segment is the smaller of the two but represents a known revenue source, and a step-down here makes the .2 billion total harder to hold at the guided pace.
• RADAR ST needs payer sign-off: RADAR ST could unlock over 40% of its addressable market, but that upside is conditional on pending indications receiving reimbursement and commercial payer coverage. Until those approvals land, the pipeline story does not appear on the P&L.
• Operating losses persist at scale: The company posted a 43% gross margin but an operating margin of roughly -10%, meaning lab and SG&A overhead still outpace the contribution from 11% revenue growth. Investors funded with a -14% ROE are waiting to see that gap close.

NeoGenomics, Inc. earnings call transcripts

• NEO Q2 FY26 earnings call transcript (reported 2026-07-28) · analysis
• NEO Q2 FY25 earnings call transcript (reported 2025-07-29) · analysis

All NEO earnings calls

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