EX-99.1 2 a99-103312025earningsrelea.htm EX-99.1 Document
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Exhibit 99.1






NeoGenomics Reports First Quarter 2025 Results
Consolidated Revenue Increased 8% to $168 million
Fort Myers, Florida (April 29, 2025) - NeoGenomics, Inc. (NASDAQ: NEO) (the “Company”), a leading provider of oncology diagnostic solutions that enable precision medicine, today announced its first-quarter results for the period ended March 31, 2025.

First Quarter 2025 Highlights As Compared To First Quarter 2024
•Consolidated revenue increased 8% to $168 million
•Net loss decreased 4% to $26 million
•Adjusted EBITDA increased 102% to positive $7 million
“Our business is off to a solid start in 2025 with our team delivering a record number of results to patients in the first quarter and improving our adjusted EBITDA by over 100% from prior year,” said Tony Zook, CEO of NeoGenomics. “We expect to continue to accelerate growth as we expand our portfolio with upcoming product launches, win on customer experience and capitalize on our world-class sales force, supporting our mission to improve patient care.”
First-Quarter Results
Consolidated revenue for the first quarter of 2025 was $168 million, an increase of 8% over the same period in 2024 primarily due to higher volume partially offset by lower non-clinical revenue. Average revenue per clinical test (“revenue per test”) increased by 3% to $459. This increase reflects higher value tests, including NGS, and strategic reimbursement initiatives.
Consolidated gross profit for the first quarter of 2025 was $73 million, an increase of 12% compared to the first quarter of 2024. This increase was primarily due to an increase in revenue partially offset by higher compensation and benefit costs and an increase in supplies expense. Consolidated gross profit margin, including amortization of acquired intangible assets and stock-based compensation expense, was 44%. Adjusted Gross Profit Margin(1), excluding amortization of acquired intangible assets and stock-based compensation expense, was 47%.
Operating expenses for the first quarter of 2025 were $101 million, an increase of $5 million, or 5%, compared to the first quarter of 2024. Operating expenses included higher compensation and benefit costs as well as an increase in software and technology costs. These increases were partially offset by a decrease in restructuring activities due to the completion of restructuring activities in the fourth quarter of 2024 and a decrease in facilities related costs.
Net loss for the quarter decreased $1 million, or 4%, to $26 million compared to net loss of $27 million for the first quarter of 2024.
Adjusted EBITDA(1) increased $4 million, or 102%, to positive $7 million compared to positive $3 million in the first quarter of 2024. Adjusted Net Loss(1) was $0.5 million compared to Adjusted Net Loss(1) of $3 million in the first quarter of 2024.
Cash and cash equivalents and marketable securities totaled $358 million at quarter end.


NeoGenomics, Inc. | 9490 NeoGenomics Way Fort Myers, FL 33912
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2025 Financial Guidance(2)
The Company revised its full-year 2025 guidance(2), as initially issued on January 15, 2025 (in millions) to reflect the inclusion of $12 million to $14 million of revenue related to the acquisition of Pathline, LLC.
FY 2024Initial
 FY 2025 Guidance
Revised
FY 2025 Guidance(2)
YOY % Change from FY 2024
(in millions)ActualLowHighLowHighLowHigh
Consolidated revenue$661$735$745$747$75913%15%
Net loss$(79)$(85)$(76)$(85)$(77)(8)%3%
Adjusted EBITDA$40$55$58$55$5838%45%
______________________________________
(1) The Company has provided adjusted financial information that has not been prepared in accordance with GAAP, including Adjusted EBITDA, Adjusted Gross Profit Margin, Adjusted Net (Loss) Income, and Adjusted Diluted EPS. Each of these measures is defined in the section of this report entitled “Use of Non-GAAP Financial Measures.” See also the tables reconciling such measures to their closest GAAP equivalent.
(2) The Company reserves the right to adjust this guidance at any time. Current and prospective investors are encouraged to perform their own due diligence before buying or selling any of the Company’s securities and are reminded that the foregoing estimates should not be construed as guarantees of future performance.
Conference Call
The Company has scheduled a webcast and conference call to discuss its first quarter 2025 results on Tuesday, April 29, 2025 at 8:30 a.m. Eastern Time. To access the live call via telephone, interested investors should dial (888) 506-0062 (domestic) or (973) 528-0011 (international) at least five minutes prior to the call. The participant access code provided for this call is 603651. The live webcast may be accessed by visiting the Investor Relations section of our website at ir.neogenomics.com. A replay of the webcast will be available shortly after the conclusion of the call and will be archived on the Company’s website.
About NeoGenomics, Inc.
NeoGenomics, Inc. is a premier cancer diagnostics company specializing in cancer genetics testing and information services. We offer one of the most comprehensive oncology-focused testing menus across the cancer continuum, serving oncologists, pathologists, hospital systems, academic centers, and pharmaceutical firms with innovative diagnostic and predictive testing to help them diagnose and treat cancer. Headquartered in Fort Myers, FL, NeoGenomics operates a network of CAP-accredited and CLIA-certified laboratories for full-service sample processing and analysis services throughout the US and a CAP-accredited full-service sample-processing laboratory in Cambridge, United Kingdom.
We routinely post information that may be important to investors on our website at https://www.neogenomics.com.
Forward Looking Statements
This press release includes forward-looking statements. These forward-looking statements generally can be identified by the use of words such as “anticipate,” “expect,” “plan,” “could,” “would,” “may,” “will,” “believe,” “estimate,” “forecast,” “goal,” “project,” “guidance,” “plan,” “potential” and other words of similar meaning, although not all forward-looking statements include these words. These forward-looking statements address various matters, including statements regarding 2025 financial guidance. Each forward-looking statement contained in this press release is subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others, the Company's ability to identify and implement appropriate financial and operational initiatives to improve performance, to assemble and maintain an effective executive team, to continue gaining new customers, offer new types of tests, integrate its acquisitions and otherwise implement its business plans, and the risks identified under the heading "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and filed with the SEC on February 18, 2025, as well as subsequently filed Quarterly Reports on Form 10-Q and the Company's other filings with the Securities and Exchange Commission.
NeoGenomics, Inc. | 9490 NeoGenomics Way Fort Myers, FL 33912
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We caution investors not to place undue reliance on the forward-looking statements contained in this press release. You are encouraged to read our filings with the SEC, available at www.sec.gov and on our website at www.neogenomics.com, for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document (unless another date is indicated), and we undertake no obligation to update or revise any of these statements. Our business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.

Investor Contact
Kendra Sweeney
kendra.sweeney@neogenomics.com

Media Contact
Andrea Sampson
asampson@sampsonprgroup.com


NeoGenomics, Inc. | 9490 NeoGenomics Way Fort Myers, FL 33912
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NeoGenomics, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, 2025
(unaudited)
December 31, 2024
ASSETS
Current assets
Cash and cash equivalents$346,194 $367,012 
Marketable securities, at fair value11,886 19,832 
Accounts receivable, net151,208 150,540 
Inventories29,772 26,748 
Prepaid assets22,980 20,165 
Other current assets11,892 11,722 
Total current assets573,932 596,019 
Property and equipment, net89,603 94,103 
Operating lease right-of-use assets77,803 79,583 
Intangible assets, net331,319 339,681 
Goodwill522,766 522,766 
Other assets6,007 5,886 
Total non-current assets1,027,498 1,042,019 
Total assets$1,601,430 $1,638,038 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
   Accounts payable and other current liabilities$75,489 $97,083 
Current portion of operating lease liabilities3,075 3,381 
Current portion of convertible senior notes, net201,131 200,777 
Total current liabilities279,695 301,241 
Long-term liabilities
Operating lease liabilities59,861 60,841 
Convertible senior notes, net340,714 340,335 
Deferred income tax liabilities, net20,970 21,510 
Other long-term liabilities11,921 11,772 
Total long-term liabilities433,466 434,458 
     Total liabilities$713,161 $735,699 
Stockholders’ equity
     Total stockholders’ equity$888,269 $902,339 
     Total liabilities and stockholders’ equity$1,601,430 $1,638,038 


 
NeoGenomics, Inc. | 9490 NeoGenomics Way Fort Myers, FL 33912
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NeoGenomics, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)

 
Three Months Ended March 31,
20252024
NET REVENUE168,035 156,240 
COST OF REVENUE94,789 90,771 
GROSS PROFIT73,246 65,469 
Operating expenses:
General and administrative68,207 65,797 
Research and development10,181 7,620 
Sales and marketing22,683 20,221 
Restructuring charges— 2,398 
Total operating expenses101,071 96,036 
LOSS FROM OPERATIONS(27,825)(30,567)
Interest income(3,721)(4,834)
Interest expense1,618 1,685 
Other (income) expense, net(65)263 
Loss before taxes(25,657)(27,681)
Income tax expense (benefit)266 (620)
NET LOSS$(25,923)$(27,061)
NET LOSS PER SHARE
Basic$(0.20)$(0.21)
Diluted$(0.20)$(0.21)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic127,376 126,111 
Diluted127,376 126,111 

NeoGenomics, Inc. | 9490 NeoGenomics Way Fort Myers, FL 33912
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NeoGenomics, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

 Three Months Ended March 31,
20252024
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss$(25,923)$(27,061)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation9,366 9,905 
Amortization of intangibles8,362 8,362 
Stock-based compensation10,754 7,774 
Non-cash operating lease expense1,584 2,401 
Amortization of convertible debt discount and debt issue costs735 725 
Impairment of assets— 145 
Other adjustments37 (57)
Changes in assets and liabilities, net(30,242)(28,109)
Net cash used in operating activities(25,327)(25,915)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from maturities of marketable securities8,060 20,110 
Purchases of property and equipment(4,500)(5,585)
Net cash provided by investing activities3,560 14,525 
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of equipment financing obligations— — 
Issuance of common stock, net949 816 
Net cash provided by financing activities949 816 
Net change in cash and cash equivalents(20,818)(10,574)
Cash and cash equivalents, beginning of period367,012 342,488 
Cash and cash equivalents, end of period$346,194 $331,914 

NeoGenomics, Inc. | 9490 NeoGenomics Way Fort Myers, FL 33912
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Use of Non-GAAP Financial Measures
In order to provide greater transparency regarding our operating performance, the financial results and financial guidance in this press release refer to certain non-GAAP financial measures that involve adjustments to GAAP results. Non-GAAP financial measures exclude certain income and/or expense items that management believes are not directly attributable to the Company’s core operating results and/or certain items that are inconsistent in amounts and frequency, making it difficult to perform a meaningful evaluation of our current or past operating performance. Management believes that the presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors by facilitating the analysis of the Company’s core test-level operating results across reporting periods. These non-GAAP financial measures may also assist investors in evaluating future prospects. Management also uses non-GAAP financial measures for financial and operational decision making, planning and forecasting purposes and to manage the business. These non-GAAP financial measures do not replace the presentation of financial information in accordance with U.S. GAAP financial results, should not be considered measures of liquidity, and are unlikely to be comparable to non-GAAP financial measures provided by other companies.
Definitions of Non-GAAP Measures
Non-GAAP Adjusted EBITDA
“Adjusted EBITDA” is defined by NeoGenomics as net (loss) income from continuing operations before: (i) interest income, (ii) interest expense, (iii) tax (benefit) or expense, (iv) depreciation and amortization expense, (v) stock-based compensation expense, and, if applicable in a reporting period, (vi) CEO transition costs, (vii) restructuring charges, (viii) intellectual property (“IP”) litigation costs, and (ix) other significant or non-operating (income) or expenses, net.
Non-GAAP Adjusted Cost of Revenue, Adjusted Gross Profit and Adjusted Gross Profit Margin
“Adjusted cost of revenue” is defined by NeoGenomics as cost of revenue before: (i) amortization of acquired intangible assets, and, if applicable in a reporting period, (ii) stock-based compensation expense.
“Adjusted gross profit” is defined by NeoGenomics as total revenue less adjusted cost of revenue.
“Adjusted gross profit margin” is defined by NeoGenomics as adjusted cost of revenue divided by total revenue.
Non-GAAP Adjusted Net (Loss) Income
“Adjusted net (loss) income” is defined by NeoGenomics as net (loss) income from continuing operations plus: (i) amortization of intangible assets, (ii) stock-based compensation expense, and, if applicable in a reporting period, (iii) CEO transition costs, (iv) restructuring charges, (v) IP litigation costs, and (vi) other significant or non-operating (income) or expenses, net. If GAAP net (loss) income is negative and adjusted net (loss) income is positive, adjusted net (loss) income will also be adjusted to reverse any recognized interest expense (including any amortization of discounts) on the convertible notes using the if-converted method unless the effect of this adjustment on both the adjusted net (loss) income and weighted average diluted common shares outstanding would be anti-dilutive. If GAAP net (loss) income is positive and adjusted net (loss) income is negative, adjusted net (loss) income will also be adjusted to reverse any recognized interest expense (including any amortization of discounts) on the convertible notes using the if-converted method.
Non-GAAP Adjusted Diluted EPS
“Adjusted diluted EPS” is defined by NeoGenomics as adjusted net (loss) income divided by adjusted diluted shares outstanding. If GAAP net (loss) income is negative and adjusted net (loss) income is positive, adjusted diluted shares outstanding will also include any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period, until the effect of these adjustments are anti-dilutive. If GAAP net (loss) income is positive and adjusted net (loss) income is negative, adjusted diluted shares outstanding will exclude any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period.

NeoGenomics, Inc. | 9490 NeoGenomics Way Fort Myers, FL 33912
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Reconciliation of GAAP Net Loss to Non-GAAP EBITDA and Adjusted EBITDA
(in thousands)
(unaudited)

Three Months Ended March 31,
20252024
Net loss (GAAP)$(25,923)$(27,061)
Adjustments to net loss:
Interest income(3,721)(4,834)
Interest expense1,618 1,685 
Income tax expense (benefit)266 (620)
Depreciation9,366 9,905 
Amortization of intangibles8,362 8,362 
EBITDA (non-GAAP)$(10,032)$(12,563)
Further adjustments to EBITDA:
CEO transition costs(3)
2,193 — 
Stock-based compensation expense10,754 7,774 
Restructuring charges— 2,398 
IP litigation costs(4)
2,983 4,281 
Other significant expenses, net(5)
1,172 1,602 
Adjusted EBITDA (non-GAAP)$7,070 $3,492 
_________________
(3) For the three months ended March 31, 2025, CEO transition costs include severance costs, executive retention costs, and executive search costs.
(4) For the three months ended March 31, 2025 and March 31, 2024, IP litigation costs include legal fees.
(5) For the three months ended March 31, 2025, other significant (income) expenses, net, includes acquisition related expenses. For the three months ended March 31, 2024, other significant (income) expenses, net, includes site closure costs, and other non-recurring items.
NeoGenomics, Inc. | 9490 NeoGenomics Way Fort Myers, FL 33912
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Reconciliation of Segment and Consolidated GAAP Cost of Revenue, Gross Profit and Gross Profit Margin to
Non-GAAP Adjusted Cost of Revenue, Adjusted Gross Profit and Adjusted Gross Profit Margin
(dollars in thousands)
(unaudited)
Three Months Ended March 31,
20252024% Change
Consolidated:
Total revenue (GAAP)$168,035$156,2407.5 %
Cost of revenue (GAAP)$94,789$90,7714.4 %
Adjustments to cost of revenue(6)
(5,325)(5,305)
Adjusted cost of revenue (non-GAAP)$89,464$85,4664.7 %
Gross profit (GAAP)$73,246$65,46911.9 %
Adjusted gross profit (non-GAAP )$78,571$70,77411.0 %
Gross profit margin (GAAP)43.6 %41.9 %
Adjusted gross profit margin (non-GAAP)46.8 %45.3 %
_______________
(6) Cost of revenue adjustments for the three months ended March 31, 2025 and 2024, includes $4.9 million of amortization of acquired intangible assets and $0.4 million of stock-based compensation.

NeoGenomics, Inc. | 9490 NeoGenomics Way Fort Myers, FL 33912
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Reconciliation of GAAP Net Loss to Non-GAAP Adjusted Net Loss
and GAAP EPS to Non-GAAP Adjusted EPS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended March 31,
20252024
Net loss (GAAP)$(25,923)$(27,061)
Adjustments to net loss, net of tax:
Amortization of intangibles8,362 8,362 
CEO transition costs(7)
2,193 — 
Stock-based compensation expense10,754 7,774 
Restructuring charges— 2,398 
IP litigation costs(8)
2,983 4,281 
Other significant expenses, net(9)
1,172 1,602 
Adjusted net income/(loss) (non-GAAP)$(459)$(2,644)
Net loss per common share (GAAP)
Diluted EPS$(0.20)$(0.21)
Adjustments to diluted loss income per share:
Amortization of intangibles0.07 0.07 
CEO transition costs(7)
0.02 — 
Stock-based compensation expense0.08 0.06 
Restructuring charges— 0.02 
IP litigation costs(8)
0.02 0.03 
Other significant expenses, net(9)
0.01 0.01 
Rounding and impact of diluted shares in adjusted diluted shares(10)
— — 
Adjusted diluted EPS (non-GAAP)$— $(0.02)
Weighted average shares used in computation of adjusted diluted EPS:
Diluted common shares (GAAP)127,376 126,111 
Dilutive effect of options, restricted stock, and converted shares(11)(12)
— — 
Adjusted diluted shares outstanding (non-GAAP)127,376 126,111 
_______________
(7) For the three months ended March 31, 2025, CEO transition costs include severance costs, executive retention costs, and executive search costs.
(8) For the three months ended March 31, 2025 and March 31, 2024, IP litigation costs include legal fees.
(9) For the three months ended March 31, 2025, other significant (income) expenses, net, includes acquisition related expenses. For the three months ended March 31, 2024, other significant (income) expenses, net, includes site closure costs, and other non-recurring items.
(10) This adjustment is for rounding and, in those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive or GAAP net (loss) income is positive and adjusted net (loss) income is negative, also compensates for the effects of additional diluted shares included or excluded in adjusted diluted shares outstanding for the treasury stock impact of outstanding stock options and restricted stock and the if-converted impact of convertible notes.
(11) In those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive, this adjustment includes any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period, until the effect of these adjustments are anti-dilutive.
(12) In those periods in which GAAP net (loss) income is positive and adjusted net (loss) income is negative, this adjustment excludes any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period.
NeoGenomics, Inc. | 9490 NeoGenomics Way Fort Myers, FL 33912
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Reconciliation of Non-GAAP Financial Guidance to Corresponding GAAP Measures
(in thousands, except per share amounts)
(unaudited)
GAAP net loss in 2025 will be impacted by certain charges, including: (i) expense related to the amortization of intangible assets, (ii) stock-based compensation, and (iii) other one-time expenses. These charges have been included in GAAP net loss available to stockholders and GAAP net loss per share; however, they have been removed from adjusted net loss and adjusted diluted net loss per share
The following table reconciles the Company’s 2025 outlook for net loss and EPS to the corresponding non-GAAP measures of adjusted net loss, adjusted EBITDA, and adjusted diluted EPS:
Year Ended December 31, 2025
Low RangeHigh Range
Net loss (GAAP)$(85,000)$(77,000)
Amortization of intangibles34,000 34,000 
Stock-based compensation expenses47,000 44,000 
Other one-time expenses24,000 24,000 
Adjusted net income (non-GAAP)20,000 25,000 
Interest and taxes(7,000)(7,000)
Depreciation42,000 40,000 
Adjusted EBITDA (non-GAAP)$55,000 $58,000 
Net loss per diluted share (GAAP)$(0.66)$(0.60)
Adjustments to net loss per diluted share:
Amortization of intangibles0.27 0.27 
Stock-based compensation expenses0.37 0.34 
Other one-time expenses0.19 0.19 
Rounding and impact of diluted shares in adjusted diluted shares(13)
(0.01)— 
Adjusted diluted EPS(13) (non-GAAP)
$0.16 $0.20 
Weighted average assumed shares outstanding in 2025:
Diluted shares (GAAP)128,000 128,000 
Options, restricted stock, and converted shares not included in diluted shares(14)
— — 
Adjusted diluted shares outstanding (non-GAAP)128,000 128,000 
_________________
(13) This adjustment is for rounding and, in those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive, also compensates for the effects of additional diluted shares included in adjusted diluted shares outstanding for the treasury stock impact of outstanding stock options and restricted stock and the if-converted impact of convertible notes.
(14) For those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive, this adjustment includes any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such shares would have been outstanding in the reporting period, until the effect of these adjustments are anti-dilutive.

NeoGenomics, Inc. | 9490 NeoGenomics Way Fort Myers, FL 33912
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Supplemental Information
Clinical(15) Tests Performed and Revenue
(unaudited)
Three Months Ended March 31, 2025
20252024% Change
Clinical(15):
Number of tests performed326,163 300,827 8.4 %
Average revenue/test$459 $447 2.7 %
_________________
(15) Excludes non-clinical tests and revenue.




NeoGenomics, Inc. | 9490 NeoGenomics Way Fort Myers, FL 33912