Top-line Revenue Growth
Total Q1 revenue of $186.7M, up 11% year-over-year, exceeding guidance; clinical revenue $171.2M, up 14% year-over-year.
NeoGenomics
· NEO
April 28th, 2026
Summary
- Earnings Call Date:
- 2026-04-28
- Change Since:
- +43.02%
- Next Earnings Date:
- 2026-08-05
Earnings Call Sentiment
PositiveThe call conveyed a predominantly positive operational and financial trajectory: consistent double-digit top-line growth, strong NGS performance (+26% YoY) with favorable mix shift (NGS now ~1/3 of clinical revenue), adjusted EBITDA expansion (+27% YoY), early commercial and reimbursement wins (PanTracer MolDX approval, RaDaR ST launch), and an increase to full-year revenue guidance. Offsetting risks include a meaningful nonclinical decline (-15% YoY), first-quarter gross margin headwinds (–80 bps) from acquisition and pre-approval launch timing, freight/fuel cost pressure, payer coverage timing for new products, and the need to refinance a sizable convertible in 2028. On balance, the positive growth, margin recovery plans, product launches, and improved cash flow prospects outweigh the near-term headwinds.
Company Guidance
NeoGenomics raised 2026 revenue guidance to $797–803 million (prior $793–801M), implying a $800M midpoint, and reiterated adjusted EBITDA guidance of $55–57 million (≈27–31% YoY growth); underlying assumptions include RaDaR ST revenue in the mid-single‑million range, PanTracer Liquid revenue in the mid-single‑millions following March MolDX approval, and nonclinical revenue down low‑ to mid‑single digits. The company delivered a Q1 base of $186.7M total revenue (+11% YoY) and $171.2M clinical (+14%), with volumes +6% and AUP +8% (same‑store revenue $167.9M, +12% driven by +3% volumes and +9% AUP); NGS revenue grew 26% and now represents ~1/3 of clinical. Q1 adjusted EBITDA was $9M (+27%) with adjusted EBITDA margin up ~60 bps, adjusted gross profit +$7M and adjusted gross margin 46% (down ~80 bps, with ~150 bps headwind from Pathline and pre‑MolDX PanTracer Liquid); full‑year gross margin expansion is expected to be ~100 bps. Management also guided quarterly cadence of ~9% YoY growth in Q2 (raised from 8–9%), 9–10% in Q3 and >10% in Q4, plans to add ~25 sales reps by Q3, ended Q1 with $146M cash and used $8.1M in operating cash, and plans to refinance the $342M convertible due Jan 2028 in H2.
Strong NGS Performance and Mix Shift
NGS revenue grew 26% year-over-year, driven by 16% volume growth and higher AUP; NGS now represents ~1/3 of clinical revenue and is scaling 3–4x faster than core clinical business.
Improved Profitability Metrics
Adjusted EBITDA of $9M, up 27% year-over-year; adjusted EBITDA margin expanded ~60 basis points year-over-year.
AUP and Volume Momentum
Average unit price (AUP) increased 8% year-over-year and volumes grew 6% year-over-year; same-store revenue $167.9M, up 12% driven by +3% volumes and +9% AUP.
Product and Reimbursement Catalysts
Full clinical launch of RaDaR ST (detection down to 1 ppm) and MolDX reimbursement for PanTracer Liquid (approval in March), with PanTracer LBx expected to contribute mid-single-digit millions in revenue.
Early Adoption Signals for RaDaR ST
~29% of prior RaDaR 1.0 customers have ordered RaDaR ST since launch; 34% of RaDaR ST orders included additional NEO tests; all results delivered faster than published turnaround times.
Raised 2026 Revenue Guidance
Full-year 2026 revenue guidance increased to $797M–$803M (from $793M–$801M); quarterly cadence guidance tightened to ~9% YoY growth in Q2, 9–10% in Q3 and >10% in Q4.
Cash Flow and Liquidity Improvement
Cash used in operations improved to $8.1M in Q1 (from ~$25.3M YoY); ending cash balance $146M and management expects free cash flow positive for the year.
Commercial and Operational Investments
Plan to add ~25 sales resources by Q3 to support RaDaR ST and PanTracer adoption; Pathline acquisition strengthened Northeast presence (growing at 1.5x national average); ~330 interfaces developed including Epic Aura to drive adoption.
Pipeline and R&D Progress
Targeted R&D investments in whole genome sequencing and next-generation MRD platform (data generation expected next year, potential launch as early as 2028); expansion of nonclinical offerings (AML flow panel, IHC markers).
Operator
Good afternoon, and welcome to the NeoGenomics First Quarter 2026 Financial Results Call. Please be advised that today's conference is being recorded. I will now turn the call over to Priya Vedaraman, Senior Vice President of Finance.
Priya Vedaraman
Thank you, Matthew, and good afternoon, everyone. Welcome to NeoGenomics First Quarter 2026 Financial Results Call. With me today to discuss the results are Tony Zook, Chief Executive Officer; Abhishek Jain, Chief Financial Officer; and Warren Stone, President and Chief Operating Officer. Additional members of the management team will be available for the Q&A portion of our call. This call is being simultaneously webcast. You will note that we will be advancing through a brief slide presentation to accompany today's call, and we have also made the presentation available on the Investors tab of our website at ir.neogenomics.com. During this call, we will make forward-looking statements regarding our future financial and business performance, planned future operations and related expectations with respect to timing and performance, future financial position, future revenue, growth potential and expected growth drivers, projected cost and capital expenditures, prospects and plans, estimated market size and position and objectives of management and financial guidance. We caution you that the actual events or results could differ materially from those expressed or implied by the forward-looking statements.
The forward-looking statements made during the call speak only as of the original date of this call, and we undertake no obligation to update or...
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