NeoGenomics Reports $181.3 Million Revenue in Q2 2025, Net Loss of $45.1 Million

NeoGenomics, Inc. reported a net revenue of $181.3 million for the second quarter of 2025, marking a 10.2% increase from $164.5 million in the same period of 2024. For the first half of 2025, revenue reached $349.4 million, an 8.9% rise compared to $320.7 million in the prior year. The growth in revenue was attributed to increased test volumes, higher average unit prices due to strategic reimbursement initiatives, and contributions from the recent acquisition of Pathline, LLC. However, this was partially offset by a decline in non-clinical revenue linked to macro trends in the pharmaceutical industry.

The company's cost of revenue also increased, rising by 13.1% to $104.1 million in Q2 2025, compared to $92.0 million in Q2 2024. This increase was primarily driven by higher compensation and benefit costs, increased supplies expenses, and higher postage and shipping costs. Consequently, gross profit for the second quarter was $77.3 million, reflecting a gross profit margin of 42.6%, down from 44.1% in the previous year. For the first half of 2025, gross profit was $150.5 million, with a margin of 43.1%.

In terms of operational changes, NeoGenomics completed the acquisition of Pathline, LLC on April 4, 2025, for an initial cash consideration of $8.0 million, with potential contingent consideration of up to $2.0 million based on performance milestones. The acquisition is expected to enhance the company's capabilities and market presence in the Northeastern United States. Additionally, NeoGenomics initiated a plan to sell its subsidiary, Trapelo Health, LLC, to refocus on its core operations, with the sale expected to close within a year.

The company reported a net loss of $45.1 million for Q2 2025, compared to a loss of $18.6 million in Q2 2024. The loss was attributed to increased operating expenses, including a significant impairment charge of $20.0 million related to the InVisionFirst®-Lung product line and the planned sale of Trapelo. As of June 30, 2025, NeoGenomics had $154.7 million in cash and cash equivalents, down from $367.0 million at the end of 2024, and anticipates that its current cash position will be sufficient to meet operational needs for at least the next 12 months.

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 remains optimistic about the future, despite the challenges posed by market conditions and the ongoing restructuring of its operations.