NeoGenomics, Inc. reported a net revenue of $168.0 million for the first quarter of 2025, reflecting a 7.5% increase from $156.2 million in the same period of 2024. The growth in revenue was attributed to an increase in test volume and higher average unit prices, driven by strategic reimbursement initiatives. However, the company recorded a net loss of $25.9 million, slightly improved from a loss of $27.1 million in the prior year. The loss per share for the quarter was $(0.20), compared to $(0.21) in the previous year.
The company's cost of revenue increased by 4.4% to $94.8 million, primarily due to higher compensation and benefit costs, as well as increased supplies expenses. Despite the rise in costs, the gross profit margin improved to 43.6% from 41.9% year-over-year, indicating better operational efficiency. General and administrative expenses rose to $68.2 million, up 3.7% from $65.8 million, largely due to increased compensation and software development costs. Research and development expenses surged by 33.6% to $10.2 million, reflecting ongoing investments in new test development.
In terms of operational developments, NeoGenomics completed a restructuring program in 2024 aimed at enhancing efficiency, which resulted in no restructuring charges for the first quarter of 2025, compared to $2.4 million in the same period last year. The company also reported a slight decrease in cash used in operating activities, totaling $25.3 million, down from $25.9 million in the previous year. As of March 31, 2025, NeoGenomics had $346.2 million in cash and cash equivalents, along with $11.9 million in marketable securities, indicating a solid liquidity position.
Strategically, NeoGenomics simplified its operational structure by merging its Clinical Services and Advanced Diagnostics segments into a single reporting segment in 2024. This change is expected to streamline operations and enhance service offerings. Additionally, the company announced the acquisition of Pathline, LLC, a laboratory based in New Jersey, for an initial purchase price of $8.0 million, with potential contingent payments based on future performance.
Looking ahead, NeoGenomics aims to sustain growth through innovation and operational efficiency. The company plans to focus on accelerating volume growth, enhancing its product offerings, and improving gross margins. Management anticipates that the combination of cash reserves and marketable securities will be sufficient to support operational needs and potential strategic investments over the next 12 months.
About NEOGENOMICS INC
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