NeoGenomics shares plunge on slashed revenue guidance

Published 29/07/2025, 13:50
NeoGenomics shares plunge on slashed revenue guidance

Investing.com -- NeoGenomics Inc . (NASDAQ:NEO) shares tumbled 22.3% in premarket trading after the oncology diagnostics company significantly cut its full-year revenue forecast, overshadowing a slight earnings beat in the second quarter.

The provider of cancer-focused testing services reported adjusted earnings of $0.03 per share for the second quarter, edging past analyst expectations of $0.02. However, quarterly revenue of $181.3 million fell short of the $183 million consensus estimate, despite representing a 10% increase YoY. The company cited ongoing pressure in its pharmaceutical services segment and delays in launching its PanTracer Liquid Biopsy product as key factors behind the disappointing performance.

NeoGenomics dramatically slashed its full-year 2025 revenue guidance to $720-726 million from its previous forecast of $747-759 million, well below analyst expectations of $744.6 million. The midpoint of the new guidance represents just 9.5% growth compared to 2024.

"Strength in our Clinical business was largely offset by continuing pressure in pharma revenue that was beyond our initial assumptions, and a delay in our commercial launch of PanTracer Liquid Biopsy that impacted our expected NGS revenue," said Tony Zook, CEO of NeoGenomics.

The company’s clinical services showed some bright spots, with a 16% revenue increase driven by improved average unit pricing and record testing volumes. Next-generation sequencing (NGS) services grew 23% compared to the same quarter last year.

NeoGenomics completed the acquisition of Pathline in April 2025 for an initial $8 million, expanding its presence in the Northeastern United States. Despite the acquisition and clinical growth, the company’s net loss widened significantly to $45 million, compared to $19 million in the second quarter of 2024, partly due to $20 million in impairment charges related to planned asset sales.

Adjusted EBITDA remained relatively flat at $10.7 million compared to $10.9 million in the year-ago period.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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