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Dec 31, 2024
Mesa Labs Q3 2025 Earnings Report
Reported strong revenue growth driven by organic growth and the acquisition of GKE, with operating income significantly increasing and strategic investments continuing.
Key Takeaways
Mesa Labs reported a 17.5% increase in revenues, driven by 12.6% organic growth and a 4.9% inorganic contribution from GKE. Operating income saw a substantial increase of 8,725%. However, the company experienced a net loss due to unrealized foreign currency losses and interest expense. Non-GAAP core organic revenues grew by 13.2%, and AOI increased by 21.2%.
Revenues increased by 17.5% driven by organic growth and the acquisition of GKE.
Operating income increased significantly by 8,725%.
Non-GAAP core organic revenues grew by 13.2%.
AOI excluding unusual items increased by 13.3%.
Mesa Labs
Mesa Labs
Forward Guidance
Solid sales funnels and a backlog build in 3Q25 will enable year over year core revenues growth in 4Q25. The company anticipates adapting to new policies and market shifts, including the recent appreciation of the US dollar, and rising recession risk in Europe.
Positive Outlook
- Solid sales funnels expected to drive core revenue growth.
- Backlog build in 3Q25 supports future revenue.
- Strong operating leverage profile.
- Continued investment in strategic initiatives.
- Acquisition of GKE delivered first twelve months of full ownership revenues >10% higher than initial expectations.
Challenges Ahead
- Potential need to adapt to new policies in the USA.
- Recent appreciation of the US dollar.
- Rising recession risk in Europe.
- Operating results tend to change quickly in response to market conditions.
- Ongoing headwinds from China and continued disruption to the U.S. Laboratory Developed Test (“LDT”) market