NeoGenomics, Inc. (NEO)
NeoGenomics, Inc. is a cancer-focused testing laboratory network operating in the United States, Europe, and Asia. The company offers a comprehensive suite of testing services to hospitals, pharmaceutical firms, and researchers, aiding in cancer diagnosis and treatment.
Company Overview
NeoGenomics is a leading cancer diagnostics company providing comprehensive testing services to hospitals and pharmaceutical companies, leveraging advanced technologies and strategic alliances to drive precision medicine and personalized cancer care, though profitability remains a key challenge for investors.
Investment Thesis
Investing in NeoGenomics presents a compelling opportunity to capitalize on the growing demand for precision medicine in oncology. The company's comprehensive testing services and strategic partnerships position it to benefit from advancements in cancer diagnostics and personalized treatment approaches. While the company's current P/E ratio is -2.57 and profit margin is -16.0%, indicating profitability challenges, the potential for revenue growth through expanded service offerings and market penetration remains significant. Key value drivers include the increasing adoption of molecular testing, the expansion of the Pharma Services segment, and the potential for improved operational efficiency. Upcoming catalysts include potential partnerships with pharmaceutical companies and expansion into new geographic markets. Success hinges on achieving profitability and effectively managing operational costs.
Key Highlights
- Market Cap of $0.30B reflects the company's current valuation in the market.
- Gross Margin of 43.5% indicates the profitability of NeoGenomics' testing services before operating expenses.
- P/E Ratio of -2.57 suggests the company is currently not profitable.
- Operates in the high-growth cancer diagnostics market, driven by increasing cancer incidence and demand for personalized medicine.
- Strategic alliance with Inivata Limited enhances capabilities in liquid biopsy and minimal residual disease testing.
Competitors
Strengths
- Comprehensive suite of cancer-focused testing services.
- Established network of laboratories in key geographic markets.
- Strategic alliance with Inivata Limited.
- Strong relationships with hospitals and pharmaceutical companies.
Weaknesses
- History of unprofitability and negative profit margin.
- High operating expenses.
- Dependence on reimbursement rates from payers.
- Intense competition in the diagnostics market.
Catalysts
- Upcoming: Potential partnerships with pharmaceutical companies to support drug development programs.
- Upcoming: Expansion into new geographic markets, particularly in Asia and Europe.
- Ongoing: Increasing adoption of molecular testing in cancer diagnosis and treatment.
- Ongoing: Development of new and innovative testing services.
- Ongoing: Strategic acquisitions of complementary businesses.
Risks
- Potential: Changes in reimbursement policies from government and private payers.
- Potential: Technological advancements by competitors could render NeoGenomics' services obsolete.
- Potential: Economic downturn impacting healthcare spending and demand for testing services.
- Ongoing: Intense competition in the diagnostics market.
- Ongoing: Regulatory hurdles and compliance requirements.
Growth Opportunities
- Expansion of Pharma Services: NeoGenomics has a significant opportunity to expand its Pharma Services segment by partnering with more pharmaceutical companies to support their oncology drug development programs. The market for oncology drug development is substantial, with billions of dollars invested annually. By offering comprehensive testing services throughout the drug development lifecycle, NeoGenomics can secure long-term contracts and generate recurring revenue. Timeline: Ongoing.
- Increased Adoption of Molecular Testing: The increasing adoption of molecular testing in cancer diagnosis and treatment presents a significant growth opportunity for NeoGenomics. As more clinicians recognize the value of molecular insights in guiding treatment decisions, the demand for NeoGenomics' molecular testing services is expected to rise. The market for molecular diagnostics is projected to reach billions of dollars in the coming years. Timeline: Ongoing.
- Geographic Expansion: NeoGenomics can expand its geographic footprint by establishing or acquiring laboratories in new markets, particularly in Asia and Europe. The global market for cancer diagnostics is growing rapidly, and expanding into new regions would allow NeoGenomics to tap into underserved markets and increase its revenue base. Timeline: Upcoming.
- Strategic Acquisitions: NeoGenomics can pursue strategic acquisitions to expand its service offerings and market share. By acquiring companies with complementary technologies or specialized testing capabilities, NeoGenomics can strengthen its competitive position and offer a more comprehensive suite of services to its clients. Timeline: Ongoing.
- Development of New Testing Services: Investing in research and development to develop new and innovative testing services can drive future growth for NeoGenomics. By staying at the forefront of technological advancements in cancer diagnostics, NeoGenomics can attract new clients and differentiate itself from competitors. Timeline: Ongoing.
Opportunities
- Expansion of Pharma Services segment.
- Increased adoption of molecular testing.
- Geographic expansion into new markets.
- Strategic acquisitions of complementary businesses.
Threats
- Changes in reimbursement policies.
- Technological advancements by competitors.
- Economic downturn impacting healthcare spending.
- Regulatory hurdles and compliance requirements.
Competitive Advantages
- Established network of cancer-focused testing laboratories in the United States, Europe, and Asia.
- Comprehensive suite of testing services covering a wide range of cancer types and diagnostic needs.
- Strategic alliance with Inivata Limited enhances capabilities in liquid biopsy and minimal residual disease testing.
- Strong relationships with hospitals, oncologists, and pharmaceutical companies.
About
Founded in 2001 and headquartered in Fort Myers, Florida, NeoGenomics, Inc. has evolved into a prominent player in the cancer diagnostics industry. The company operates a network of cancer-focused testing laboratories across the United States, Europe, and Asia, offering a wide array of services through its Clinical Services and Pharma Services segments. NeoGenomics provides critical testing support to hospitals, reference labs, pathologists, oncologists, clinicians, pharmaceutical firms, and researchers. Its comprehensive suite of services includes cytogenetics testing, fluorescence in-situ hybridization (FISH), flow cytometry, immunohistochemistry, digital imaging, molecular testing, and morphologic analysis. These services enable precise cancer diagnosis, prognosis, and treatment monitoring. The company's Pharma Services segment supports pharmaceutical clients' oncology programs, spanning from drug discovery to commercialization. Through a strategic alliance with Inivata Limited, NeoGenomics enhances its capabilities in liquid biopsy and minimal residual disease testing, further solidifying its position in the precision medicine landscape. Despite its innovative offerings, NeoGenomics faces challenges in achieving consistent profitability, reflected in its negative profit margin.
What They Do
- Provides cytogenetics testing services to study chromosomes and their relationship to diseases.
- Offers fluorescence in-situ hybridization (FISH) testing services to detect DNA sequences and genes on chromosomes.
- Performs flow cytometry testing services to measure the characteristics of cell populations.
- Conducts immunohistochemistry and digital imaging testing services to localize cellular proteins in tissue sections.
- Provides molecular testing services to analyze DNA and RNA.
- Offers morphologic analysis, analyzing cells under a microscope for diagnosis.
- Supports pharmaceutical clients' oncology programs from discovery to commercialization.
- Acts as a reference laboratory supplying anatomic pathology testing services.
Business Model
- Generates revenue through clinical testing services offered to hospitals, reference labs, and oncologists.
- Earns revenue from pharmaceutical companies for providing testing services to support their drug development programs.
- Collects fees for each test performed, with pricing varying based on the complexity and type of test.
- Secures contracts with hospitals and pharmaceutical companies for recurring testing services.
Industry Context
NeoGenomics operates within the rapidly evolving medical diagnostics and research industry, specifically focusing on oncology. The market is driven by increasing cancer incidence rates, advancements in genomic technologies, and the growing demand for personalized medicine. The competitive landscape includes companies like ACRS, ARCT, HUMA, MDXH, and QTRX, each vying for market share in specialized testing services. The industry is experiencing significant growth, with increasing investments in research and development and a shift towards more targeted and effective cancer therapies. NeoGenomics' comprehensive testing portfolio and strategic partnerships position it to capitalize on these trends, although it faces challenges in achieving consistent profitability.
Key Customers
- Hospitals and reference laboratories requiring cancer diagnostic testing services.
- Oncologists and clinicians seeking precise diagnostic information for patient care.
- Pharmaceutical companies developing oncology drugs and requiring testing support.
- Researchers conducting cancer research and clinical trials.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q4 2025 | $190M | -$10M | $-0.38 |
| Q3 2025 | $188M | -$27M | $-1.06 |
| Q2 2025 | $181M | -$45M | $-1.76 |
| Q1 2025 | $168M | -$26M | $-1.02 |
Source: Company filings
Chart & Info
Price Chart
NeoGenomics, Inc. (NEO) stock price: $11.38 (+0.00, +0.00%)
Why Bull
- •Recent insider buying suggests confidence in NeoGenomics' growth potential, indicating that leadership believes in the company's future.
- •Community sentiment has turned positive as recent advancements in oncology diagnostics have garnered attention, positioning NeoGenomics favorably in the market.
- •The company's strategic partnerships with major healthcare organizations have strengthened its market presence and expanded its service offerings.
- •Investors are optimistic about the increasing demand for genomic testing, which aligns with NeoGenomics' core business model and growth strategy.
Why Bear
- •Concerns over regulatory changes in the healthcare sector have created uncertainty, potentially impacting NeoGenomics' operations and profitability.
- •Recent bearish community discussions highlight skepticism about the company's ability to maintain its competitive edge amidst rising competition in the diagnostics space.
- •Market perception has been tempered by broader economic concerns, leading some investors to question the sustainability of growth in the biotech sector.
- •The volatility in stock performance over the past month has raised red flags for some traders, leading to a cautious outlook on NeoGenomics' near-term prospects.
Latest News
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Earnings Scheduled For February 17, 2026
benzinga · Feb 17, 2026
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NeoGenomics Announces Launch of New Cancer Assay PanTracer Pro
Zacks · Feb 16, 2026
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1 Stock Under $50 Worth Your Attention and 2 We Brush Off
StockStory · Feb 9, 2026
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Earnings Scheduled For November 14, 2025
benzinga · Nov 14, 2025
Technical Analysis
Rationale
AI-generated technical analysis for NEO including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for NEO.
Make a Prediction
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Current price: $11.38
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for NEO.
Price Targets
Median: $12.50 (+9.8% from current price)
Insider Flow (30d)
MoonshotScore
Score Factors
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Revenue Growth 4/100
Revenue grew only 10.1% YoY, suggesting the company is in a slower growth phase.
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Gross Margin 6/100
Gross margin of 38.8% is acceptable but leaves limited room for R&D and marketing investment.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 8/100
Strong cash reserves of $160M provide a solid financial cushion for growth investments and market downturns.
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R&D Intensity 5/100
R&D spending at 5.1% of revenue is moderate, balancing current profitability with future development.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 4/100
High daily turnover of 8.41% may indicate speculative trading rather than fundamental investing.
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Price Momentum 5/100
Mixed technical signals (oversold rsi, above sma200); price trend is inconclusive and may consolidate.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates NEO's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Frequently Asked Questions
What does NeoGenomics, Inc. do?
NeoGenomics, Inc. operates as a network of cancer-focused testing laboratories, providing a comprehensive suite of diagnostic services to hospitals, oncologists, and pharmaceutical companies. The company's offerings include cytogenetics, FISH, flow cytometry, immunohistochemistry, molecular testing, and morphologic analysis. These services aid in cancer diagnosis, prognosis, and treatment monitoring. Additionally, NeoGenomics supports pharmaceutical clients' oncology programs, spanning from drug discovery to commercialization, positioning itself as a key partner in the precision medicine landscape.
Is NEO stock a good buy?
NEO stock presents a mixed investment picture. While the company operates in a high-growth market and offers a comprehensive suite of cancer diagnostic services, its history of unprofitability and negative profit margin raise concerns. Investors should carefully consider the company's growth potential, strategic initiatives, and ability to achieve profitability before investing. Monitoring key metrics such as revenue growth, gross margin, and operating expenses is crucial for assessing the investment's viability.
What are the main risks for NEO?
NeoGenomics faces several key risks, including potential changes in reimbursement policies, technological advancements by competitors, and economic downturns impacting healthcare spending. The company's dependence on reimbursement rates from government and private payers exposes it to policy changes that could negatively impact revenue. Additionally, rapid technological advancements in the diagnostics market could render NeoGenomics' services obsolete if the company fails to innovate and adapt. Intense competition and regulatory hurdles also pose ongoing challenges.
Is NEO a good stock to buy?
Whether NEO is a good investment depends on your financial goals, risk tolerance, and investment horizon. Review the Investment Thesis, SWOT analysis, and Risk sections on this page. Always do your own research and consult a financial advisor before investing.
What is the NEO MoonshotScore?
MoonshotScore is our proprietary AI-powered rating system that evaluates stocks based on growth potential, financial health, market momentum, and risk factors. It helps investors quickly identify high-potential opportunities. Check the MoonshotScore badge on this page for the current rating.
How often is NEO data updated?
Stock prices are updated in real-time during market hours (9:30 AM - 4:00 PM ET). Company fundamentals, analyst ratings, and AI insights are refreshed daily. News is updated continuously throughout the day.
What are the growth catalysts for NEO?
Growth catalysts vary by company and may include new product launches, market expansion, earnings surprises, partnerships, or industry tailwinds. Check the Catalysts section on this page for specific drivers relevant to NeoGenomics, Inc..
Who are NEO's main competitors?
NeoGenomics, Inc.'s competitors depend on its industry and market segments. Check the Competitors section on this page for a list of direct competitors and how NEO compares.
What do analysts say about NEO?
Analyst ratings and price targets for NEO are aggregated from multiple sources. Check the Analyst Consensus tab for buy/hold/sell ratings and the current consensus price target.
What is NEO's market cap?
Market capitalization reflects the total market value of NEO's outstanding shares. Check the Key Statistics section at the top of this page for the current market cap and other key financial metrics.
How has NEO stock performed recently?
Check the Chart & Info tab for NEO's recent price action, including daily, weekly, and monthly performance charts with technical indicators.
What are the risks of investing in NEO?
Every stock carries risk. Check the Risks and Weaknesses sections on this page for NEO-specific risk factors. Consider macroeconomic conditions, industry trends, and company-specific challenges.
Are insiders buying or selling NEO?
Insider activity can signal management confidence. Check the Insider Flow tab for recent insider buys, sells, and exercise transactions for NEO.
Is NEO a good stock for beginners?
NeoGenomics, Inc. (NEO) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is NEO for first-time investors?
Every stock carries risk, including NeoGenomics, Inc. (NEO). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like NEO.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Financial data may be subject to change pending official updates.