Mesa Laboratories (MLAB) investor relations material

Executive summary

• Q2 revenue rose 2.6% YoY to $62.336m; adjusted EBITDA increased 21.1% to $17.317m, operating income rose 77.6%, and net income rose 75.3%.

• Q2 organic revenue growth was 2.6%, or 3.1% constant currency; excluding Clinical Genomics, revenue grew 5.2%, or 5.8% constant currency.

• FY27 guidance is $250m–$255m revenue and $66m–$68m adjusted EBITDA, implying 0%–2% revenue growth and 5%–8% adjusted EBITDA growth.

Financial highlights

• Q2 gross profit was $39.878m, up 6.8% YoY; gross margin rose to 64.0% from 61.5%, while operating expenses declined 3.4% to $31.490m.

• Q2 GAAP operating income increased to $8.388m from $4.724m; diluted EPS was $0.75 versus $0.45 a year earlier.

• H1 revenue increased 1.8% to $122.474m; net income was $7.171m versus $7.218m a year earlier.

• H1 adjusted EBITDA rose to $32.836m from $27.160m, or 26.8% of revenue versus 22.6%.

• H1 operating cash flow increased to $18.832m from $10.115m, supported by stronger results and receivables collections.

Outlook and guidance

• FY27 guidance is $250m–$255m revenue and $66m–$68m adjusted EBITDA; adjusted EBITDA guidance excludes restructuring charges and reflects savings net of reinvestment and lower Clinical Genomics revenue.

• Q3 revenue is expected to be flat YoY, mainly due to lower Clinical Genomics revenue; revenue excluding that business is expected to continue growing.

• Clinical Genomics revenue is expected to decline in H2 FY27 and FY28 as lower-margin business is deemphasized, with profitability and gross margin expected to improve.

• Liquidity sources are expected to cover operating needs, debt service, restructuring, dividends and planned capital spending for at least 12 months; projected cash interest over the next 12 months is ~$7.3m.