Key Takeaways:
- Neogen Corporation Q2 revenues declined 2.8 percent year over year, while core revenue increased 2.9 percent.
- Net loss narrowed significantly compared to the prior-year period due to the absence of a goodwill impairment charge.
- Food Safety segment posted modest revenue growth, while Animal Safety revenues declined primarily due to divestitures.
- The company raised its full-year fiscal 2026 revenue and Adjusted EBITDA outlook.
Neogen Corporation Reports Second Quarter Financial Performance
Neogen Corporation (NASDAQ: NEOG) announced financial results for the second quarter ended November 30, 2025. Revenues for the quarter were $224.7 million, a decrease of 2.8 percent compared to $231.3 million in the prior-year period. Core revenue, which excludes the effects of foreign currency, divestitures, and discontinued product lines, increased by 2.9 percent.
Net loss for the quarter was $15.9 million, or $(0.07) per diluted share, compared to a net loss of $456.3 million, or $(2.10) per diluted share, in the prior-year period. The improvement reflected the absence of a non-cash goodwill impairment charge recorded in the prior year. Adjusted net income was $22.6 million, or $0.10 per diluted share, compared to $24.4 million, or $0.11 per diluted share, a year earlier.
Gross margin was 47.5 percent, down from 49.0 percent in the same quarter last year, primarily due to tariff costs, inventory write-offs, and product mix. Adjusted EBITDA totaled $48.7 million, representing a margin of 21.7 percent, compared to $51.4 million and a margin of 22.2 percent in the prior-year period.
