Neogen (NEOG) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $221 million, down 3–3.4% year-over-year, with core revenue growth of 0.2% and strong Food Safety core growth of 7% excluding sample collection; Animal Safety remained in a cyclical trough.

• Net loss was $11 million for the quarter, driven by a $461 million goodwill impairment in Food Safety; Adjusted Net Income was $20.9 million ($0.10 per share).

• Adjusted EBITDA was $48.5 million (22% margin), down from $52.7 million (23%) year-over-year, reflecting lower sales and higher operating expenses.

• CEO John Adent announced his planned departure, with a search for a successor and leadership changes in R&D, commercial, and HR roles.

• Integration of a major acquisition is progressing, with operational improvements in sample collection and Petrifilm production.

Financial highlights

• Gross margin was 49.9% for the quarter, down from 51.1% year-over-year; adjusted for integration/restructuring, gross margin was 51.5%.

• Adjusted Net Income was $20.9 million ($0.10 per share), down from $26.4 million ($0.12 per share) in Q3 FY24.

• Free cash flow improved by $49 million year-over-year, with net cash from operations at $41.7 million for the nine months.

• Cash and equivalents stood at $127.7 million as of February 28, 2025, with $150 million available under the revolving credit facility.

• Non-current debt was $900 million, with net debt at $772 million and 61% fixed rate.

Outlook and guidance

• FY25 revenue guidance updated to approximately $895 million, with Adjusted EBITDA expected at $195 million.

• CapEx for the year expected to be $100 million, with $70 million for integration; free cash flow outflow projected at $20 million.

• Market environment remains dynamic, with continued macro uncertainty, inflation, and tariff impacts expected in Q4.

• Further cost alignment and restructuring actions planned, with full impact in fiscal 2026.

• No formal financial guidance provided in some disclosures.