Mesa Laboratories(MLAB) - 2025 Q3 - Quarterly Results

Revenue Growth - Total revenues for Q3 2025 were $62,840, an increase of 17.5% compared to Q3 2024, driven by 12.6% organic growth and 4.9% inorganic contribution from the GKE acquisition[5] - Biopharmaceutical Development revenues grew by 31.3% in Q3 2025, driven by increased capital spending in North America and Europe[14] - Clinical Genomics revenues increased by 10.2% sequentially, indicating stabilization despite challenges in the China market[15] - Core organic revenues growth for the quarter was 13.2%, reflecting strong performance across all divisions[8] - The company anticipates year-over-year core revenue growth in Q4 2025, supported by solid sales funnels and backlog[7] - The acquisition of GKE will be fully incorporated as organic growth starting in Q4 2025[5] - Organic revenues growth for the three months ended December 31, 2024, was 12.6%, while core organic revenues growth was 13.2%[30] - Revenues for the three months ended December 31, 2024, increased by 17.5% to $62,840,000 compared to $53,473,000 for the same period in 2023[26] Financial Performance - Non-GAAP adjusted operating income excluding unusual items increased by 13.3% to $14,788, representing 23.5% of total revenues[6][11] - Operating income for the three months ended December 31, 2024, was $5,779,000, a turnaround from a loss of $67,000 in the same period last year[26] - Non-GAAP adjusted operating income (AOI) for the three months ended December 31, 2024, was $14,515,000, compared to $11,975,000 in 2023, indicating a growth of 21.3%[29] Debt and Leverage - The company repaid $9.4 million in debt during Q3 2025, reducing the total Net Leverage Ratio to 3.20, with a target to drop below 3.0x by the end of Q2 2026[4] Profitability - Gross profit percentage for Q3 2025 contracted by 240 basis points when excluding non-cash charges, primarily due to product and geographical mix[6] - Gross profit for the nine months ended December 31, 2024, was $112,458,000, up from $96,694,000 in 2023, reflecting a significant increase[26] Equity and Assets - Total assets as of December 31, 2024, were $437,148,000, a slight decrease from $446,796,000 as of March 31, 2024[28] - Stockholders' equity increased to $155,214,000 as of December 31, 2024, compared to $145,393,000 in March 2024[28] Net Income and EPS - The company reported a net loss of $1,676,000 for the three months ended December 31, 2024, compared to a net income of $2,116,000 in the same period last year[26] - Basic earnings per share (EPS) for the three months ended December 31, 2024, was $(0.31), down from $0.39 in 2023[26] Non-Operating Expenses - The company incurred non-operating expenses of $7,996,000 for the three months ended December 31, 2024, compared to income of $(2,013,000) in the same period last year[26]