Neogen (NEOG) Q1 2027 earnings summary

Executive summary

• Q1 FY27 revenue was $222.8M, up 6.5% reported and 8.1% core; Adjusted EBITDA rose to $41.6M, while GAAP net loss was $11.9M.

• Core growth accelerated from Q4, supported by stronger commercial execution and an estimated 3% benefit from order timing and prior-year distributor inventory adjustments.

• Priorities include commercial prowess, high-impact innovation and operational excellence, with continued investment in R&D, technology, enterprise systems and commercial capabilities.

Financial highlights

• Revenue was $222.8M vs. $209.2M; product revenue was $196.0M vs. $184.1M and service revenue was $26.8M vs. $25.1M.

• Adjusted EBITDA was $41.6M vs. $35.5M; adjusted net income was $17.5M vs. $9.5M, and adjusted EPS was $0.08 vs. $0.04.

• GAAP net loss was $11.9M vs. net income of $36.3M; operating loss narrowed to $1.8M from $16.1M. Prior-year net income included a $76.4M divestiture gain.

• Cash from operating activities was $12.9M vs. $10.8M; adjusted free cash flow was $4.7M, an $18M YoY improvement, as CapEx declined with the Petrifilm transition nearing completion.

• Gross profit was $105.5M vs. $95.0M; operating expenses were $107.3M vs. $111.1M.

Outlook and guidance

• FY27 revenue guidance increased to $885M–$890M from $880M–$885M; Adjusted EBITDA guidance rose to $181M–$183M from $180M–$182M.

• First-half core growth is expected at ~3.5%, with Q2 the lowest-growth quarter; first-half Adjusted EBITDA margin is expected in line with Q1.

• FY27 Adjusted EBITDA margin is expected roughly in line with FY26, with margin improvement weighted to H2 and meaningful YoY increases in operating and free cash flow expected.

• FY27 capital expenditures are estimated at $40.0M; operational and market headwinds are expected to continue affecting results during the year.