📊 NEO Key Takeaways
Is Neogenomics Inc. (NEO) a Good Investment?
NeoGenomics exhibits troubling fundamental deterioration with operating losses of -$18.2M, negative free cash flow of -$13.1M, and inability to cover debt interest despite 10.1% revenue growth. The disconnect between top-line growth and bottom-line losses signals structural operational inefficiencies, and the company's unsustainable cash burn trajectory poses solvency concerns even with adequate current liquidity.
NeoGenomics shows solid demand with 10%+ revenue growth and healthy gross margins, supported by strong liquidity and moderate leverage. However, profitability remains weak with sizable operating losses, negative net margin, and negative free cash flow alongside deeply negative interest coverage. Evidence of operating leverage and sustained positive cash generation is needed to upgrade the outlook.
Neogenomics Inc. Key Strengths (NEO)
- Revenue growth of 10.1% year-over-year demonstrates ongoing market demand for testing laboratory services
- Strong liquidity position with current ratio of 4.42x and $146.1M in cash reserves provides near-term runway
- Gross margin of 43.3% indicates reasonable pricing power and acceptable core unit economics at the operating level
- Double-digit revenue growth (+10.1% YoY)
- Healthy gross margin (43.2%) indicating pricing/mix strength
- Strong liquidity and moderate leverage (4.26x current ratio, 0.41x D/E)
NEO Stock Risks: Neogenomics Inc. Investment Risks
- Negative operating cash flow of -$8.1M and free cash flow of -$13.1M indicate operational cash burn is unsustainable
- Negative interest coverage ratio of -10.8x demonstrates inability to service $341.9M debt from operations, creating material refinancing risk
- Operating and net losses persist despite revenue growth, suggesting structural cost structure issues or margin compression problems requiring immediate resolution
- Persistent operating losses (operating margin -15.9%)
- Negative FCF and limited OCF, risking cash burn
- Deeply negative interest coverage (-68.8x) raises financing risk
Key Metrics to Watch
- Quarterly operating cash flow trajectory toward positive generation and timeline to profitability
- Operating margin expansion rate and effectiveness of management's cost reduction initiatives
- Debt refinancing requirements and covenant compliance given negative earnings and EBITDA position
- Operating margin improvement toward breakeven
- Free cash flow turning and staying positive
Neogenomics Inc. (NEO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 4.42x current ratio provides a solid financial cushion.
NEO Profit Margin, ROE & Profitability Analysis
NEO vs Services Sector: How Neogenomics Inc. Compares
How Neogenomics Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Neogenomics Inc. Stock Overvalued? NEO Valuation Analysis 2026
Based on fundamental analysis, Neogenomics Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Neogenomics Inc. Balance Sheet: NEO Debt, Cash & Liquidity
NEO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Neogenomics Inc.'s revenue has grown significantly by 50% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.70 indicates the company is currently unprofitable.
NEO Revenue Growth, EPS Growth & YoY Performance
NEO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $168.0M | -$17.1M | $-0.13 |
| Q3 2025 | $167.8M | -$17.7M | $-0.14 |
| Q2 2025 | $164.5M | -$18.6M | $-0.15 |
| Q1 2025 | $156.2M | -$25.9M | $-0.20 |
| Q3 2024 | $152.0M | -$17.7M | $-0.14 |
| Q2 2024 | $146.9M | -$18.6M | $-0.15 |
| Q1 2024 | $137.2M | -$27.1M | $-0.21 |
| Q3 2023 | $128.8M | -$18.5M | $-0.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Neogenomics Inc. Dividends, Buybacks & Capital Allocation
NEO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Neogenomics Inc. (CIK: 0001077183)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NEO
What is the AI rating for NEO?
Neogenomics Inc. (NEO) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NEO's key strengths?
Claude: Revenue growth of 10.1% year-over-year demonstrates ongoing market demand for testing laboratory services. Strong liquidity position with current ratio of 4.42x and $146.1M in cash reserves provides near-term runway. ChatGPT: Double-digit revenue growth (+10.1% YoY). Healthy gross margin (43.2%) indicating pricing/mix strength.
What are the risks of investing in NEO?
Claude: Negative operating cash flow of -$8.1M and free cash flow of -$13.1M indicate operational cash burn is unsustainable. Negative interest coverage ratio of -10.8x demonstrates inability to service $341.9M debt from operations, creating material refinancing risk. ChatGPT: Persistent operating losses (operating margin -15.9%). Negative FCF and limited OCF, risking cash burn.
What is NEO's revenue and growth?
Neogenomics Inc. reported revenue of $186.7M.
Does NEO pay dividends?
Neogenomics Inc. does not currently pay dividends.
Where can I find NEO SEC filings?
Official SEC filings for Neogenomics Inc. (CIK: 0001077183) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NEO's EPS?
Neogenomics Inc. has a diluted EPS of $-0.21.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is NEO's fundamental grade?
Based on our AI fundamental analysis in May 2026, Neogenomics Inc. has a C grade with 71% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is NEO stock overvalued or undervalued?
Valuation metrics for NEO: ROE of -2.1% (sector avg: 16%), net margin of -9.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is NEO's AI grade for 2026?
Our dual AI analysis gives Neogenomics Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NEO's free cash flow?
Neogenomics Inc.'s operating cash flow is $-8.1M, with capital expenditures of $5.0M. FCF margin is -7.0%.
How does NEO compare to other Services stocks?
Vs Services sector averages: Net margin -9.2% (avg: 10%), ROE -2.1% (avg: 16%), current ratio 4.42 (avg: 1.5).