Mesa Laboratories (MLAB) Q2 2026 earnings summary

Executive summary

• Revenue for the quarter ended September 30, 2025, was $60.7M, up 5.0% year-over-year; net income was $2.5M, down 27.8% from the prior year quarter.

• Operating income increased 34.7% year-over-year to $4.7M; adjusted operating income excluding unusual items rose 6.1% and represented 25.1% of revenues.

• Growth was driven by Calibration Solutions and Biopharmaceutical Development, while Clinical Genomics faced declines due to China market weakness.

• Cost reduction initiatives were implemented, including headcount reductions, expected to yield $2.3M in annualized savings, with $0.9M reinvested in SDC.

• Core organic revenues grew 3.7% year-over-year in 2Q26.

Financial highlights

• Gross profit for the quarter was $37.3M (61.5% margin), up 5.3% year-over-year.

• Non-GAAP AOI rose 7.2% to $14.4M; AOI per diluted share was $2.60.

• Diluted EPS for the quarter was $0.45, down from $0.63 last year.

• Cash from operations for six months was $10.1M, down from $16.0M in the prior year period.

• Cash and equivalents at quarter end were $20.4M; working capital improved to $49.1M.

Outlook and guidance

• Revenue growth is expected to continue in Calibration Solutions and Biopharmaceutical Development; Clinical Genomics faces ongoing headwinds in China.

• Cost savings from restructuring are expected to be realized in the second half of fiscal 2026.

• Sequential revenue growth is expected in 3Q26.