Neogen Corporation (NEOG) Q1 2026 Financial Results Summary
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Neogen Corporation (NEOG) Q1 2026 Financial Results Summary
LANSING, Mich., October 9, 2025 – Neogen Corporation (NASDAQ: NEOG) announced today the results of the first quarter ended August 31, 2025. Below is a summary of their financial performance and significant events during the quarter.
Financial and Business Highlights
- Total Revenue: $209.2 million
- Decrease: 3.6% compared to $217.0 million in Q1 2025.
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Core Revenue: Increased by 0.3% after excluding foreign currency effects and impacts from divestitures.
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Net Income: $36.3 million
- Earnings per Share: $0.17 per diluted share, compared to a net loss of $12.6 million ($0.06 loss per diluted share) in the prior-year period.
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This improvement was largely due to a non-cash gain from the sale of the Cleaners and Disinfectants business.
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Adjusted Net Income: $9.4 million
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Decrease: 34.7% from $14.4 million in Q1 2025 ($0.04 per diluted share vs. $0.07).
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Adjusted EBITDA: $35.5 million
- Adjusted EBITDA Margin: 17.0%, compared to $43.7 million and a margin of 20.1% in Q1 2025.
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The margin decline was attributed to reduced gross margin and increased operating expenses.
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Gross Margin: 45.4%
- Decrease: 3.0 percentage points compared to 48.4% in the same quarter last year.
- Excluding integration-related costs, gross margin was 49.5%.
Segment Performance
- Food Safety Segment:
- Revenue: $152.1 million
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Decrease: 4.6% compared to $159.3 million in Q1 2025.
- Core Revenue Decline: 1.7%
- Impact from divestitures and discontinued products: 3.7%
- Positive foreign currency impact: 0.8%
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Animal Safety Segment:
- Revenue: $57.1 million
- Decrease: 0.8% compared to $57.6 million in Q1 2025.
- Core Revenue Increase: 5.8%
- Negative impact from divestitures: 6.4%
- Negative foreign currency impact: 0.2%
Corporate Developments
- Neogen completed the divestiture of its Cleaners & Disinfectants business during the period.
- The company repaid $100 million in debt using proceeds from the aforementioned divestiture.
- A new CEO, Mike Nassif, was appointed effective August 11.
- Restructuring efforts were announced at the end of September to streamline the cost base, which included workforce reductions.
Liquidity and Capital Resources
- As of August 31, 2025:
- Cash and Cash Equivalents: $138.9 million
- Total Outstanding Debt: $800.0 million
- Committed Borrowing Headroom: $201.5 million
Fiscal 2026 Outlook
- Neogen is reaffirming its full-year revenue outlook for fiscal year 2026, projecting:
- Revenue: Between $820 million to $840 million
- Adjusted EBITDA: Expected in the range of $165 million to $175 million
- Capital Expenditures: Approximately $50 million
Dividend and Share Repurchase
- No quarterly dividend has been declared by the company in the reported period.
- No share repurchase program was mentioned in the report.
This summary encapsulates Neogen Corporation’s Q1 2026 performance amidst challenges while reaffirming their strong market position and future outlook.
For more details, please refer to the company’s investor relations page or tune into their conference call events.
| Three months ended August 31, | 2025 | 2024 |
|---|---|---|
| Revenue | $ 152,050 | $ 159,345 |
| Animal Safety | $ 57,139 | $ 57,619 |
| Total revenue | $ 209,189 | $ 216,964 |
| Cost of revenues | $ 114,219 | $ 112,038 |
| Gross profit | $ 94,970 | $ 104,926 |
| Operating expenses | ||
| Sales & marketing | $ 45,048 | $ 45,799 |
| Administrative | $ 60,888 | $ 51,671 |
| Research & development | $ 5,125 | $ 5,199 |
| Total operating expenses | $ 111,061 | $ 102,669 |
| Operating loss (income) | $ (16,091) | $ 2,257 |
| Interest expense, net | $ (15,524) | $ (17,622) |
| Gain on sale of business | $ 76,390 | $ — |
| Other, net | $ (967) | $ (244) |
| Income (Loss) Before Taxes | $ 43,808 | $ (15,609) |
| Income Tax Expense (Benefit) | $ 7,470 | $ (3,000) |
| Net Income (Loss) | $ 36,338 | $ (12,609) |
| Net Earnings (Loss) Per Diluted Share | $ 0.17 | $ (0.06) |
| Shares to calculate per share amount | 217,334,926 | 216,695,348 |
| August 31, 2025 | May 31, 2025 | |
|---|---|---|
| Assets | ||
| Current Assets | ||
| Cash and cash equivalents | $ 138,883 | $ 129,004 |
| Accounts receivable, net of allowance of | $ 138,459 | $ 153,384 |
| $5,403 and $5,397 | ||
| Inventories, net of reserves of $16,865 | $ 193,414 | $ 190,859 |
| and $16,483 | ||
| Assets held for sale | $ — | $ 50,402 |
| Prepaid expenses and other current | $ 53,304 | $ 53,288 |
| assets | ||
| Total Current Assets | $ 524,060 | $ 576,937 |
| Net Property and Equipment | $ 345,893 | $ 339,131 |
| Other Assets | ||
| Right of use assets | $ 16,994 | $ 17,152 |
| Goodwill | $ 1,065,889 | $ 1,064,902 |
| Amortizable intangible assets, net | $ 1,389,141 | $ 1,410,485 |
| Other non-current assets | $ 36,179 | $ 35,229 |
| Total Assets | $ 3,378,156 | $ 3,443,836 |
| Liabilities and Stockholders’ Equity | ||
| Current Liabilities | ||
| Current portion of debt | $ — | $ 19,301 |
| Accounts payable | $ 76,596 | $ 79,605 |
| Accrued compensation | $ 20,273 | $ 14,134 |
| Income tax payable | $ 9,449 | $ 5,599 |
| Accrued interest | $ 3,556 | $ 11,078 |
| Deferred revenue | $ 5,824 | $ 5,558 |
| Liabilities held for sale | $ — | $ 6,556 |
| Other current liabilities | $ 30,507 | $ 32,180 |
| Total Current Liabilities | $ 146,205 | $ 174,011 |
| Deferred Income Tax Liability | $ 277,253 | $ 280,907 |
| Non-current debt | $ 792,530 | $ 874,810 |
| Other non-current liabilities | $ 43,519 | $ 42,854 |
| Total Liabilities | $ 1,259,507 | $ 1,372,582 |
| Commitments and Contingencies | ||
| Equity | ||
| Preferred stock, $1.00 par value, 100,000 shares authorized, none issued | $ — | $ — |
| Common stock, $0.16 par value, 315,000,000 shares authorized, | $ 34,768 | $ 34,728 |
| 217,298,626 and 217,044,098 shares issued and outstanding | ||
| Additional paid-in capital | $ 2,607,452 | $ 2,601,848 |
| Accumulated other comprehensive loss | $ (23,485) | $ (28,898) |
| Accumulated deficit | $ (500,086) | $ (536,424) |
| Total Stockholders’ Equity | $ 2,118,649 | $ 2,071,254 |
| Total Liabilities and Stockholders’ Equity | $ 3,378,156 | $ 3,443,836 |