NeoGenomics, Inc. reported a net revenue of $187.8 million for the third quarter of 2025, marking an increase of 11.9% from $167.8 million in the same period of 2024. For the nine months ending September 30, 2025, revenue rose to $537.2 million, up 9.9% from $488.6 million year-over-year. The growth in revenue was attributed to increased test volumes, a shift towards higher-value tests, and the positive impact of strategic reimbursement initiatives. However, this growth was partially offset by lower non-clinical revenue due to macro trends in the pharmaceutical industry and a less favorable test mix.
The company's cost of revenue for the third quarter increased by 15.5% to $107.4 million, compared to $92.9 million in the prior year, primarily driven by higher compensation and benefit costs, increased supplies expenses, and shipping costs. As a result, gross profit for the quarter was $80.4 million, reflecting a gross profit margin of 42.8%, down from 44.6% in the same quarter of 2024. For the nine-month period, gross profit was $231.0 million, with a margin of 43.0%, slightly lower than the 43.6% margin reported in the previous year.
In terms of strategic developments, NeoGenomics completed the acquisition of Pathline, LLC in April 2025, which is expected to enhance its capabilities and market presence in the Northeastern United States. The acquisition contributed approximately $4.6 million to revenue in the third quarter. Additionally, the company initiated a plan to sell its subsidiary, Trapelo Health, to focus on its core operations. This decision led to impairment charges of $7.1 million in the third quarter related to the disposal group.
Operationally, NeoGenomics reported a net loss of $27.1 million for the third quarter of 2025, compared to a loss of $17.7 million in the same quarter of 2024. The increase in losses was attributed to higher operating expenses, including general and administrative costs, which rose to $69.9 million from $67.0 million year-over-year. The company’s employee headcount increased as it expanded its sales force, contributing to higher compensation costs. As of September 30, 2025, NeoGenomics had $164.1 million in cash and cash equivalents, which it anticipates will be sufficient to support its 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 in its core business, enhancing its product offerings, and improving gross margins. Management remains optimistic about the future, despite the challenges posed by market conditions and ongoing regulatory scrutiny.
About NEOGENOMICS INC
NeoGenomics, Inc. specializes in oncology diagnostic testing and consultative services, including molecular, cytogenetic, and histopathology analyses. Operating laboratories in the U.S. and U.K., it serves healthcare providers, pharmaceutical companies, and research institutions. The company offers comprehensive cancer testing, interpretation, and data solutions, leveraging advanced technologies like NGS and liquid biopsies to support personalized medicine and drug development. Its core focus is improving patient outcomes through high-quality, innovative cancer diagnostics.
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