Mesa Laboratories Reports 3.6% Revenue Growth and Net Income Turnaround in Q3 Fiscal 2026

Mesa Laboratories, Inc. reported a notable financial performance for the third quarter of fiscal year 2026, ending December 31, 2025, with revenues reaching $65.1 million, a 3.6% increase from $62.8 million in the same period last year. The company’s net income significantly improved to $3.6 million, compared to a net loss of $1.7 million in the prior year, resulting in earnings per share of $0.66, up from a loss of $0.31. For the nine months ended December 31, 2025, total revenues were $185.4 million, reflecting a 3.7% increase from $178.8 million in the previous year, while net income rose to $10.8 million from $5.1 million.

The company experienced several operational changes compared to the previous fiscal period. Notably, the Sterilization and Disinfection Control division saw a revenue increase of 6.0% for the quarter, driven by higher sales volumes and price increases, while the Biopharmaceutical Development division reported a 17.5% revenue growth, attributed to increased sales of peptides and immunoassays. However, the Clinical Genomics division faced challenges, with revenues declining by 7.1% due to reduced demand in China amid ongoing trade tensions and macroeconomic uncertainties.

Mesa Laboratories also made strategic moves during the quarter, including the repayment of $97.5 million in convertible notes, which matured in August 2025. The company utilized $97 million drawn from its revolving credit facility to settle these notes. Additionally, the company amended its credit facility to reduce the interest rate spread, which is expected to lower interest expenses by approximately $0.4 million annually. As of December 31, 2025, the company had cash and cash equivalents of $29.0 million, up from $27.3 million at the end of the previous fiscal year.

Operationally, Mesa Laboratories reported a slight increase in employee headcount, reflecting ongoing investments in talent to support growth initiatives. The company’s total assets increased to $434.8 million, with total liabilities decreasing to $248.2 million, resulting in a stronger balance sheet. The company’s working capital improved significantly to $51.2 million, compared to negative working capital of $(61.3) million in the prior year, primarily due to the settlement of the convertible notes.

Looking ahead, Mesa Laboratories anticipates continued growth driven by its strategic focus on expanding its customer base and enhancing operational efficiencies. The company expects challenges in the Clinical Genomics division to persist, particularly in the Chinese market, but remains optimistic about its overall performance in fiscal year 2026. The management is committed to leveraging its diverse product offerings and geographic presence to navigate market conditions and drive future growth.