Mesa Laboratories Reports 5% Revenue Growth in Q2 FY 2026, Mixed Performance Across Divisions

Mesa Laboratories, Inc. reported its financial results for the second quarter of fiscal year 2026, ending September 30, 2025, revealing a revenue increase of 5% to $60.7 million compared to $57.8 million in the same period last year. For the first half of the fiscal year, revenues rose by 3.7% to $120.3 million, up from $116 million. The company’s net income for the quarter was $2.5 million, a decrease of 27.8% from $3.4 million in the prior year, while net income for the six-month period increased by 5.9% to $7.2 million.

The financial performance reflects a mixed landscape across its divisions. The Sterilization and Disinfection Control division saw a slight revenue decline of 0.4% for the quarter, attributed to lower-than-expected order fulfillments, while the Biopharmaceutical Development division experienced a significant revenue increase of 17.3%. The Calibration Solutions division also reported a 10.7% revenue growth, driven by successful contract renewals. In contrast, the Clinical Genomics division faced a revenue decline of 3.1% for the quarter, primarily due to reduced sales in China amid ongoing trade tensions.

Operationally, Mesa Laboratories has made strategic adjustments, including a reduction in workforce and other cost-saving initiatives expected to yield annualized savings of approximately $3.2 million. The company plans to reinvest a portion of these savings back into its most profitable division, Sterilization and Disinfection Control, to accelerate growth. The total employee headcount was not disclosed, but the company noted that the adjustments were primarily concentrated in the Clinical Genomics division.

The company’s balance sheet as of September 30, 2025, showed total assets of $430.4 million, a slight decrease from $433.3 million at the end of the previous fiscal year. Current liabilities significantly decreased to $48.3 million from $164 million, largely due to the settlement of convertible notes. Mesa Laboratories ended the quarter with $20.4 million in cash and cash equivalents, down from $27.3 million at the end of March 2025. The company’s working capital improved to $49.1 million, compared to negative working capital of $(61.3) million in the prior period.

Looking ahead, Mesa Laboratories anticipates continued challenges in the Clinical Genomics division, particularly in China, but expects to see growth in other regions. The company is focused on enhancing its operational efficiency and expanding its customer base through both organic growth and strategic acquisitions. The management remains optimistic about the long-term prospects, emphasizing a commitment to protecting product integrity and improving quality across its offerings.