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Mar 31
Mesa Labs Q4 2025 Earnings Report
Reported Fourth Quarter and Full Fiscal Year 2025 Results
Key Takeaways
Mesa Laboratories reported solid results for the fourth quarter of fiscal year 2025, with a 5.5% increase in total revenues and a significant increase in operating income. Core organic revenue growth was strong across all four divisions, and the company improved its balance sheet by reducing inventory and paying down debt.
Total revenues increased by 5.5% to $62.1 million in the fourth quarter of FY25.
Operating income increased by 100.5% to $1.5 million in the fourth quarter of FY25.
Non-GAAP core organic revenues growth was 6.3% for the fourth quarter of FY25.
The company generated $42.6 million of free cash flow in FY25, which was used primarily for debt reduction.
Mesa Labs
Mesa Labs
Mesa Labs Revenue by Segment
Revenue by Segment
Sterilization & Disinfection Control Revenue
CapyFin.comBiopharmaceutical Development Revenue
CapyFin.comCalibration Solutions Revenue
CapyFin.comClinical Genomics Revenue
CapyFin.com Forward Guidance
The company expects to continue reducing its past due backlog in the first two quarters of FY26. The impact of global tariffs is currently mitigated due to product switching barriers and a high recurring revenue mix, but the resolution of global trade is uncertain.
Positive Outlook
- Expectation to continue reducing past due backlog during the first two quarters of FY26.
- Barriers to switching products in highly regulated applications.
- Revenue base with a high recurring service and consumables mix (~75% of revenues for FY25).
- Strong gross profit margin percentages.
- Opportunities to leverage deep customer relationships and compete with companies facing similar challenges.
Challenges Ahead
- Uncertainty regarding the ultimate resolution of global trade and potential unwinding of global economic flows.
- Potential for the FDA to appeal the federal court ruling regarding restrictions on lab-developed tests.
- Need to further increase focus on organizational and operational resilience and adaptability depending on global trade resolution.
- Short-term impacts of increased tariffs, although mostly mitigated currently.
- Competition with companies facing many of the same challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income