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1. Company Snapshot

1.a. Company Description

NeoGenomics, 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.

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1.b. Last Insights on NEO

NeoGenomics' recent performance has been negatively impacted by a series of investigations by Pomerantz LLP on behalf of investors, alleging claims against the company. These investigations, which began in July and continued through August, may have contributed to downward pressure on the stock. Additionally, the company's Q2 earnings release, which met expectations, did not provide sufficient momentum to offset the negative sentiment. With no recent announcements on new products, acquisitions, or share buybacks, the company's short-term prospects are uncertain.

1.c. Company Highlights

2. NeoGenomics Delivers Strong Q3 2025 Results with Revenue Growth and Advancements in NGS and MRD Initiatives

NeoGenomics reported total revenue of $188 million for Q3 2025, up 12% year-over-year, with clinical business generating revenue growth of 15% excluding the Pathline acquisition. Adjusted EBITDA was $12.2 million, marking the ninth consecutive quarter of positive earnings. The company's EPS came in at -$0.03, beating estimates of -$0.02. Adjusted gross profit improved by $5.2 million or 7% over the prior year, driven by volume-driven gains in NGS revenues, which grew by 24% over the prior year and accounted for 33% of total clinical revenue.

Publication Date: Nov -19

📋 Highlights
  • Revenue Growth:: Q3 total revenue reached $188 million, reflecting a 12% YoY increase, with clinical revenue up 15% excluding the Pathline acquisition.
  • NGS Expansion:: NGS revenue surged 24% YoY, contributing 33% of total clinical revenue, driven by five 2023-launched products accounting for 24% of clinical revenue.
  • Pathline Acquisition Impact:: Strengthened Northeast presence, enhancing turnaround times and physician experience, positioning it as a growth driver for 2026.
  • EBITDA Guidance:: Adjusted EBITDA of $12.2 million for Q3, with full-year guidance of $41–44 million, indicating 3–10% growth despite a projected net loss of $108–116 million.
  • MRD Market Potential:: Identified a $30 billion MRD cancer surveillance market growing at 30% CAGR, with pharma-focused RaDaR ST and Flow MRD advancing as key revenue contributors in 2026.

Revenue Growth Drivers

The company's clinical business continues to perform well, driven by volume and share gains in key segments. NGS revenues grew by 24% due to volume-driven gains, with a focus on penetration and access to the commercial channel. The top 5 NGS products now represent almost a quarter of clinical revenue, and NGS is almost a third of total clinical revenue, aiding in average unit price (AUP) and other areas. As Anthony Zook mentioned, "Our clinical business continues to perform well, driven by volume and share gains in key segments."

Operational Highlights

The company is making progress in its NGS and MRD initiatives, with the recent acquisition of Pathline giving NeoGenomics a meaningful presence in the Northeast. The LIMS rollout will simplify operations and allow for proactive equipping of physicians with test status and add-ons. The new LIMS system will also identify areas of leakage and productivity, allowing for streamlined workflows. Pharma growth is expected to be driven by portfolio representation and execution excellence, with a focus on conversation and relevance.

Valuation and Outlook

NeoGenomics' valuation metrics indicate a relatively low price-to-sales ratio of 0.37 and a price-to-book ratio of 0.32. The company's EV/EBITDA ratio is -12.74, indicating a potential undervaluation. Analysts estimate next year's revenue growth at 9.9%. With a strong track record of delivering on guidance, NeoGenomics is confident in its ability to meet Q4 expectations. The company's focus on delivering a superior customer experience in the community setting is expected to drive growth in 2026 and beyond.

3. NewsRoom

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Analysts Set NeoGenomics, Inc. (NASDAQ:NEO) Price Target at $13.11

Nov -18

Source: defenseworld.net

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Neo Performance Materials Inc. (NEO:CA) Q3 2025 Earnings Call Transcript

Nov -14

Source: seekingalpha.com

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NeOnc Technologies Completes Enrollment in Pivotal NEO100 Phase2a Trial for IDH-1 mutant Recurrent High‑Grade Glioma and Expects Interim Data Readout in SixMonths (Q22026)

Nov -13

Source: globenewswire.com

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NeoGenomics to Participate in Upcoming Investor Conferences

Nov -06

Source: businesswire.com

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NeoGenomics to Present RaDaR ST Bridging Study at ISLB 2025, Demonstrating Reliable MRD Detection Across Solid Tumors

Oct -30

Source: businesswire.com

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NeoGenomics, Inc. (NEO) Q3 2025 Earnings Call Transcript

Oct -28

Source: seekingalpha.com

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NeoGenomics (NEO) Surpasses Q3 Earnings and Revenue Estimates

Oct -28

Source: zacks.com

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NeoGenomics Reports Third Quarter 2025 Results

Oct -28

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.31%)

6. Segments

Clinical Services

Expected Growth: 14.1%

Increasing demand for personalized medicine, advancements in genomic testing, and growing incidence of cancer drive growth in NeoGenomics' Clinical Services. Rising adoption of precision medicine and pharmacogenomics further fuels growth.

Advanced Diagnostics

Expected Growth: 15.4%

Growing demand for personalized cancer treatment, increasing adoption of genomic testing, and advancements in DNA sequencing technology drive the growth of Advanced Diagnostics from NeoGenomics, Inc.

7. Detailed Products

NeoTYPE Chronic Myeloid Leukemia (CML) Test

A molecular diagnostic test for the detection of BCR-ABL1 fusion genes in patients with suspected CML

NeoTYPE Solid Tumor Test

A comprehensive genomic profiling test for solid tumors, including lung, breast, colon, and other cancers

NeoTYPE Hematologic Malignancies Test

A molecular diagnostic test for the detection of genetic mutations in hematologic malignancies, including AML, MDS, and CLL

Pharma Services

Comprehensive testing and analytical services for pharmaceutical and biotechnology companies

Informatics and Analytics

Advanced bioinformatics and analytics solutions for interpreting and integrating large-scale genomic data

8. NeoGenomics, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

NeoGenomics, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is moderate due to the presence of alternative genetic testing services.

Bargaining Power Of Customers

NeoGenomics, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's specialized services and expertise give it an upper hand in negotiations.

Bargaining Power Of Suppliers

NeoGenomics, Inc. relies on a few key suppliers for its genetic testing services, which gives them some bargaining power. However, the company's size and reputation help mitigate this risk.

Threat Of New Entrants

The genetic testing industry has high barriers to entry, including significant capital expenditures and regulatory hurdles, which reduces the threat of new entrants.

Intensity Of Rivalry

The genetic testing industry is highly competitive, with several established players competing for market share. NeoGenomics, Inc. must continually innovate and differentiate itself to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.38%
Debt Cost 3.95%
Equity Weight 60.62%
Equity Cost 9.53%
WACC 7.33%
Leverage 64.97%

11. Quality Control: NeoGenomics, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Neuronetics

A-Score: 4.4/10

Value: 7.2

Growth: 4.0

Quality: 3.5

Yield: 0.0

Momentum: 10.0

Volatility: 1.7

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Psychemedics

A-Score: 4.2/10

Value: 7.1

Growth: 1.7

Quality: 4.1

Yield: 2.0

Momentum: 7.0

Volatility: 3.3

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Enzo Biochem

A-Score: 3.6/10

Value: 8.8

Growth: 1.0

Quality: 3.7

Yield: 7.0

Momentum: 0.0

Volatility: 1.3

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NeoGenomics

A-Score: 3.2/10

Value: 9.6

Growth: 3.2

Quality: 3.4

Yield: 0.0

Momentum: 1.5

Volatility: 1.7

1-Year Total Return ->

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Standard BioTools

A-Score: 3.1/10

Value: 7.8

Growth: 3.6

Quality: 4.3

Yield: 0.0

Momentum: 1.5

Volatility: 1.3

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Myriad Genetics

A-Score: 2.9/10

Value: 8.6

Growth: 1.9

Quality: 4.8

Yield: 0.0

Momentum: 0.5

Volatility: 1.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.95$

Current Price

11.96$

Potential

-0.00%

Expected Cash-Flows