📊 NEO Key Takeaways
Is NEO a Good Investment? Thesis Analysis
NeoGenomics demonstrates healthy revenue growth of 10.1% YoY and maintains strong liquidity with a 4.26x current ratio, but the company is deeply unprofitable with a -15.9% operating margin, -$108M net loss, and negative free cash flow of -$21.8M, indicating unsustainable cash burn. Without a clear path to profitability demonstrated in near-term results, the operational losses and inability to cover interest expenses pose material financial risk despite the moderate 0.41x debt/equity leverage ratio.
Why Buy NEO? Key Strengths
- Solid 10.1% YoY revenue growth in testing/diagnostics sector
- Excellent liquidity position with $159.6M cash and 4.26x current ratio provides runway
- Reasonable 43.2% gross margin indicates underlying business unit economics could support profitability
- Moderate leverage at 0.41x debt/equity ratio limits solvency risk in near term
NEO Investment Risks to Consider
- Negative operating income of -$115.9M and operating margin of -15.9% despite revenue growth indicates fundamental operational challenges
- Negative free cash flow of -$21.8M means company is burning cash and not self-sustaining despite positive operating cash flow of $5.2M
- Interest coverage ratio of -68.8x shows company cannot cover debt obligations from operations, relying on cash reserves
- Negative ROE of -12.9% and ROA of -7.9% demonstrate poor capital efficiency and value destruction
- Continued losses will deplete $159.6M cash reserve at current burn rate within several years without operational improvement
Key Metrics to Watch
- Path to operating profitability and timeline to positive operating margin
- Operating cash flow sustainability and trend toward positive free cash flow
- Gross margin maintenance and ability to leverage fixed cost base as revenue scales
- Cash burn rate and cash balance trends to assess runway
- Expense reduction initiatives and operational efficiency improvements
NEO Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 4.26x current ratio provides a solid financial cushion.
NEO Profitability Ratios
NEO vs Default Sector
How NEOGENOMICS INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NEO Overvalued or Undervalued?
Based on fundamental analysis, NEOGENOMICS INC has mixed fundamental signals relative to the Default 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.
NEO Balance Sheet & Liquidity
NEO 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
NEO Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $125.1M | -$24.3M | $-0.19 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NEO Capital Allocation
NEO SEC 10-K & 10-Q Filing 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 an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are NEO's key strengths?
Claude: Solid 10.1% YoY revenue growth in testing/diagnostics sector. Excellent liquidity position with $159.6M cash and 4.26x current ratio provides runway.
What are the risks of investing in NEO?
Claude: Negative operating income of -$115.9M and operating margin of -15.9% despite revenue growth indicates fundamental operational challenges. Negative free cash flow of -$21.8M means company is burning cash and not self-sustaining despite positive operating cash flow of $5.2M.
What is NEO's revenue and growth?
NEOGENOMICS INC reported revenue of $727.3M.
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 rating reflects both perspectives for balanced insights.
Is NEO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, NEOGENOMICS INC has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NEO stock overvalued or undervalued?
Valuation metrics for NEO: ROE of -12.9% (sector avg: 15%), net margin of -14.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy NEO stock in 2026?
Our dual AI analysis gives NEOGENOMICS INC a combined SELL rating 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 $5.2M, with capital expenditures of $27.0M. FCF margin is -3.0%.
How does NEO compare to other Default stocks?
Vs Default sector averages: Net margin -14.9% (avg: 12%), ROE -12.9% (avg: 15%), current ratio 4.26 (avg: 1.8).