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Feb 28

Neogen Q3 2025 Earnings Report

Neogen reported third-quarter results that reflected a decline in revenue and net income, impacted by macroeconomic uncertainty and lower sample collection sales.

Key Takeaways

Neogen posted a net loss of $11 million in Q3 2025 as revenue declined to $221 million. The company saw modest core growth in its Food Safety segment, but faced headwinds from sample collection issues and global trade uncertainty.

Total revenue was $221 million, down 3.4% from the prior year.

Adjusted EPS came in at $0.10 despite a reported net loss of $11 million.

Food Safety core revenue grew 1.5% with strength in biosecurity and sanitation products.

Neogen updated its full-year guidance due to macro uncertainty and expected Q4 tariff impact.

Total Revenue
$221M
Previous year: $229M
-3.4%
EPS
$0.1
Previous year: $0.12
-16.7%
Gross Margin
49.9%
Previous year: 51.1%
-2.3%
Operating Margin
2.4%
Adjusted EBITDA Margin
22%
Previous year: 23%
-4.3%
Gross Profit
$110M
Previous year: $117M
-5.7%
Cash and Equivalents
$128M
Previous year: $161M
-20.9%
Total Assets
$4.04B
Previous year: $4.58B
-11.9%

Neogen

Neogen

Neogen Revenue by Segment

Forward Guidance

Neogen revised its FY25 outlook downward due to Q3 performance, economic uncertainty, and anticipated tariffs in Q4.

Positive Outlook

  • Solid core growth in the Food Safety segment
  • Strong performance in pathogen detection and biosecurity products
  • Progress in Petrifilm production ramp-up
  • Improvements in sample collection production
  • Resilient demand in historically stable food safety end-markets

Challenges Ahead

  • Macroeconomic uncertainty dampening distributor confidence
  • Decline in sample collection sales
  • Foreign currency impacts reducing reported revenue
  • Reduced Adjusted EBITDA margin
  • Expected Q4 impact from new tariff regulations

Revenue & Expenses

Visualization of income flow from segment revenue to net income