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Jun 30
Mesa Labs Q1 2026 Earnings Report
Mesa Labs reported its first fiscal quarter results for 2026, with revenues increasing by 2.4% and net income rising by 40.0%.
Key Takeaways
Mesa Laboratories, Inc. announced its first fiscal quarter results for 2026, with total revenues reaching $59.543 million, a 2.4% increase year-over-year. Net income saw a significant 40.0% increase to $4.742 million, or $0.85 per diluted share. Despite a challenging macroeconomic environment, the company achieved 0.4% core organic revenue growth, driven by strong performance in Sterilization and Disinfection Control and Clinical Genomics (excluding China). Operating income decreased by 45.1% due to FX impacts and non-cash stock-based compensation, but non-GAAP adjusted operating income excluding unusual items was 21.7% of revenues.
Total revenues increased by 2.4% to $59.543 million in Q1 FY26 compared to the same period last year.
Net income surged by 40.0% to $4.742 million, resulting in diluted EPS of $0.85.
Core organic revenue growth was 0.4%, with strong performance in SDC and CG (excluding China) offsetting declines in BPD and CG China.
Non-GAAP adjusted operating income excluding unusual items was $12.902 million, representing 21.7% of revenues, despite a 15.9% decrease from the prior year.
Mesa Labs
Mesa Labs
Mesa Labs Revenue by Segment
Mesa Labs Revenue by Geographic Location
Revenue by Segment
Sterilization & Disinfection Control Revenue
CapyFin.comBiopharmaceutical Development Revenue
CapyFin.comCalibration Solutions Revenue
CapyFin.comClinical Genomics Revenue
CapyFin.comRevenue by Geographic Location
China Revenue
CapyFin.com Forward Guidance
Mesa Labs expects to meet its revenue goals for the first half of the fiscal year, with anticipated additional revenue in Q2 FY26 from BPD timing delays. The company also expects a meaningful improvement in non-GAAP adjusted operating income excluding unusual items as a percentage of revenues in the second quarter.
Positive Outlook
- Expectation to meet revenue goals for the first half of the fiscal year.
- Anticipated shift of approximately $1.5 million of 1Q26 BPD revenues into 2Q26.
- Expected meaningful improvement in AOI excluding unusual items as a percentage of revenues in Q2 FY26.
- Continued reduction of past-due backlog in SDC over the remainder of fiscal year 2026.
- Expected normalization of mix and improvement in gross profit percentage for BPD over the course of the year.
Challenges Ahead
- Continued contraction of Clinical Genomics China revenues due to macroeconomic and tariff uncertainty, and regulatory headwinds.
- Ongoing impact of tariffs on the bottom line, despite efforts to counter them through price increases or surcharges.
- Gross profit percentage contraction in BPD due to unfavorable product mix, delayed volumes, and FX.
- Gross profit percentage decrease in Calibration Solutions due to raw material price headwinds driven by tariffs and increased labor costs.
- Gross profit percentage decrease in Clinical Genomics primarily due to decreased volumes.
Revenue & Expenses
Visualization of income flow from segment revenue to net income