Neogen(NEOG) - 2026 Q2 - Quarterly Results

Financial Performance - Revenues for the second quarter were $224.7 million, a decrease of 2.8% compared to $231.3 million in the prior year, while core revenue increased by 2.9%[4] - Net loss for the second 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[5] - Adjusted EBITDA was $48.7 million, representing an Adjusted EBITDA margin of 21.7%, compared to $51.4 million and a margin of 22.2% in the prior-year period[7] - Adjusted Net Income for the second quarter was $22.6 million, compared to $24.4 million in the prior-year period[5] - For the three months ended November 30, 2025, the net loss was $15,924,000 compared to a net loss of $456,282,000 for the same period in 2024[34] - Adjusted net income for the six months ended November 30, 2025, was $32,063,000, down from $38,730,000 in 2024, reflecting a decrease of 17.3%[34] - Adjusted earnings per share for the three months ended November 30, 2025, was $0.10, a decrease from $0.11 in the same period of 2024[34] Segment Performance - Food Safety segment revenues were $165.6 million, an increase of 0.8% year-over-year, with a 4.1% core revenue increase[9] - Animal Safety segment revenues were $59.1 million, a decrease of 11.8% year-over-year, with a 0.1% core revenue increase[10] - Food Safety segment revenue for Q2 FY26 was $165,554,000, showing a growth of 0.8% compared to $164,238,000 in Q2 FY25[37] - Animal Safety segment revenue decreased by 11.8% to $59,137,000 in Q2 FY26 from $67,020,000 in Q2 FY25[37] - Total revenue for Neogen in Q2 FY26 was $224,691,000, down 2.8% from $231,258,000 in Q2 FY25[37] Outlook and Strategic Initiatives - The company is raising its full-year revenue outlook for fiscal year 2026 to a range of $845 million to $855 million[13] - The company plans to continue focusing on transformation initiatives and related costs to improve operational efficiency[31] - The company has strengthened its leadership team with key additions to its commercial organization to support strategic transformation initiatives[3] Balance Sheet and Cash Flow - As of November 30, 2025, the company had total cash and cash equivalents of $145.3 million and total outstanding debt of $800.0 million[12] - Cash and cash equivalents increased to $145,340 as of November 30, 2025, from $129,004 at the beginning of the year[24] - Total assets decreased to $3,359,953 as of November 30, 2025, down from $3,443,836 as of May 31, 2025[22] - Total liabilities decreased to $1,255,465 as of November 30, 2025, compared to $1,372,582 as of May 31, 2025[22] - The current portion of debt was eliminated, reducing current liabilities to $147,050 as of November 30, 2025, from $174,011[22] Impairments and Other Adjustments - The company incurred a goodwill impairment of $461,390 in the prior year, which significantly impacted net income[30] - The company reported a goodwill impairment of $461,390,000 for the six months ended November 30, 2024[34] - The company incurred $22,369,000 in amortization of acquisition-related intangibles for the three months ended November 30, 2025[34] - The estimated tax effect of adjustments for the three months ended November 30, 2025, was $(9,756,000)[34] - The company experienced a foreign currency transaction loss of $180,000 for the three months ended November 30, 2025[34] - The company reported a gain on the sale of business amounting to $76,390 during the six months ended November 30, 2025[30]