Mesa Laboratories (MLAB) Q4 2026 earnings summary

Executive summary

• Achieved FY26 revenues of $249.1M, up 3.4% year-over-year, continuing a long-term growth trend driven by organic expansion and M&A.

• Focused on life science tools for quality control in regulated markets, with diversified exposure to biopharma, medical device, and genomics verticals.

• Maintains high recurring revenue streams and strong operating leverage, supported by disciplined management and a lean operating model.

• Operating income for FY26 increased 13.3% to $18,511, and net income was $6.7M, a turnaround from a net loss in FY25.

• Free cash flow for FY26 was $39,581, primarily used to pay down $14,700 in debt, reducing net leverage to 2.11.

Financial highlights

• FY26 gross profit was $158.3M (63.5% of revenue), and AOI excluding unusual items reached $63.5M (25.5% of revenue).

• Net income for FY26 was $6.7M (2.7% of revenue), up 440% year-over-year.

• Five-year revenue CAGR was 13.2%, with a 2016–26 CAGR of 11.4% for revenues and 9.1% for AOI.

• Organic revenue growth for FY26 was 3.4%, with core organic growth at 1.2%.

• Gross profit margin for FY26 was 71.3%, with a 10 bps increase year-over-year.

Outlook and guidance

• Strategic focus on sustainable, high-quality growth through penetration of new applications, geographic expansion, and leveraging operational excellence.

• Expectation for positive core organic revenue growth in 1Q27, with further guidance after H1 and CEO's 100-day review.

• AOI margin expected to moderate to mid-20% range as product mix normalizes and SDC investments increase.

• Robust cash flow and improving balance sheet, with $26.9M in cash and a total net leverage ratio of 2.11.

• Positioned to capitalize on inorganic growth opportunities as an experienced acquirer.