Mesa Laboratories (MLAB) Q3 2026 earnings summary

Executive summary

• Revenues for the nine months ended December 31, 2025 grew 3.7% year-over-year, driven by Biopharmaceutical Development, Sterilization and Disinfection Control, and Calibration Solutions, while Clinical Genomics declined due to China market weakness.

• Revenues grew 3.6% year-over-year in 3Q26, with organic and core organic growth at 3.6% and 1.2%, respectively; excluding Clinical Genomics China, organic growth was 5.7%.

• Net income for the nine months was $10.8 million, up 111% from $5.1 million in the prior year, with EPS of $1.97 basic and $1.95 diluted.

• Operating income rose 38.0% to $7,975 in 3Q26, and net income increased 317.0% to $3,630, a turnaround from a net loss in 3Q25.

• Gross profit margin remained stable at 62.6% for the nine months, with cost savings and favorable mix offsetting currency and tariff headwinds.

Financial highlights

• Revenues: $185.4 million for the nine months ended December 31, 2025, up from $178.8 million year-over-year.

• Total revenues for 3Q26 were $65,126, up from $62,840 in 3Q25.

• Operating income: $15.8 million for nine months, up 6% from $14.9 million.

• Net income: $10.8 million for nine months, up 111% from $5.1 million; 3Q26 net income was $3,630, a turnaround from a net loss of $1,676 in 3Q25.

• Cash from operations: $28.9 million for nine months, down from $34.1 million, mainly due to higher bonus payments and inventory purchases.

Outlook and guidance

• Management expects continued challenges in China for Clinical Genomics through fiscal 2026 and likely into 2027, but positive momentum is expected in 4Q26 as China headwinds ease.

• AOI margin rate is expected to moderate slightly as cost realignment benefits are realized and SDC investments increase into FY27.

• Cost savings and efficiency initiatives are expected to support margins.

• Interest expense is expected to remain higher due to the shift from convertible notes to the Credit Facility.