Mesa Laboratories(US:MLAB)2026-02-03 13:01Revenue Growth - For the nine months ended December 31, 2025, revenues grew by 3.7% to $185,406,000 compared to $178,843,000 in the prior year[92]. - The Biopharmaceutical Development division saw a revenue increase of 10.2% for the nine months ended December 31, 2025, reaching $39,779,000 compared to $36,112,000 in the prior year[96]. - Revenues for the Sterilization and Disinfection Control division increased by 6.0% to $24,914,000 for the three months ended December 31, 2025, and by 5.5% to $72,431,000 for the nine months ended December 31, 2025[100]. - Revenues for the Biopharmaceutical Development division increased by 17.5% to $14,373,000 for the three months ended December 31, 2025, and by 10.2% to $39,779,000 for the nine months ended December 31, 2025[104]. - Revenues for the Calibration Solutions division decreased by 2.5% to $14,072,000 for the three months ended December 31, 2025, but increased by 3.9% to $39,992,000 for the nine months ended December 31, 2025[109]. - Revenues for the Clinical Genomics division declined by 7.1% to $11,767,000 for the three months ended December 31, 2025, and by 6.7% to $33,204,000 for the nine months ended December 31, 2025[113]. Profitability - The gross profit for the nine months ended December 31, 2025, was $116,065,000, representing a 3.2% increase from $112,458,000 in the prior year[97]. - Operating income increased by 6.0% to $15,763,000 for the nine months ended December 31, 2025, compared to $14,867,000 in the prior year[97]. - The net income for the nine months ended December 31, 2025, was $10,848,000, a significant increase of 111.1% from $5,140,000 in the prior year[97]. - The gross profit as a percentage of revenues for the nine months ended December 31, 2025, was 62.6%, slightly down from 62.9% in the prior year[96]. - The company reported a gross profit percentage of 69.5% for the Sterilization and Disinfection Control division for the nine months ended December 31, 2025[96]. - Gross profit for the Biopharmaceutical Development division was $8,920,000, or 62.1% of revenues for the three months ended December 31, 2025, and $23,355,000, or 58.7% of revenues for the nine months ended December 31, 2025[104]. - Gross profit for the Calibration Solutions division was $8,450,000, representing 60.0% of revenues for the three months ended December 31, 2025, and $23,727,000, or 59.3% of revenues for the nine months ended December 31, 2025[109]. - Gross profit for the Clinical Genomics division increased by 5.6 percentage points to 60.5% of revenues for the three months ended December 31, 2025, and by 1.7 percentage points to 56.1% for the nine months ended December 31, 2025[114]. Operating Expenses - Operating expenses increased by 2.8% to $100,302,000 for the nine months ended December 31, 2025, compared to $97,591,000 in the prior year[94]. - Operating expenses increased by 2.8% for the nine months ended December 31, 2025, while remaining flat for the three months ended December 31, 2025[116]. - Selling expenses decreased by 4.4% to $9,986,000 for the three months ended December 31, 2025, but increased by 1.0% to $30,715,000 for the nine months ended December 31, 2025[118]. Cash Flow and Working Capital - Net cash provided by operating activities was $28.9 million for the nine months ended December 31, 2025, a decrease of $5.3 million compared to the prior year[142]. - Working capital improved to $51.2 million as of December 31, 2025, compared to negative working capital of $(61.3) million as of March 31, 2025[134]. - Cash on hand as of December 31, 2025, was $29.0 million, up from $27.3 million as of March 31, 2025[132]. - The company expects to incur approximately $10.2 million in cash interest expense over the next twelve months based on outstanding debt levels[135]. Tax and Non-Operating Expenses - The effective tax rate for the three months ended December 31, 2025, was 21.0%, a decrease of 3.4 percentage points from 24.4% in the prior year[128]. - Total non-operating expense, net, decreased by 57.7% to $3.4 million for the three months ended December 31, 2025, down from $8.0 million in the prior year[124]. - Interest expense for the three months ended December 31, 2025, increased to $3.0 million, a rise of 6.8% compared to $2.8 million in the prior year[124]. Dividends and Shareholder Returns - The company has paid regular quarterly dividends of $0.16 per share since 2003, with the next dividend payable on March 16, 2026[137][138]. Impairment and Currency Gains - The estimated fair value of the Clinical Genomics reporting unit exceeded its carrying value by approximately 40% as of the most recent annual impairment test[140]. - The company recognized unrealized foreign currency gains of approximately $5.8 million during the nine months ended December 31, 2025[125]. Organic Revenue Growth - Total company organic revenue growth for the three months ended December 31, 2025, was 3.6%, compared to 17.5% in 2024[149]. - The Sterilization and Disinfection Control segment reported organic revenue growth of 6.0% for the three months ended December 31, 2025, down from 21.6% in 2024[149]. - Biopharmaceutical Development segment achieved organic revenue growth of 17.5% for the three months ended December 31, 2025, compared to 29.8% in 2024[149]. - Calibration Solutions segment experienced a decline in organic revenue growth of (2.5%) for the three months ended December 31, 2025, down from 18.7% in 2024[149]. - Clinical Genomics segment reported an organic revenue decline of (7.1%) for the three months ended December 31, 2025, compared to a growth of 1.0% in 2024[149]. - For the nine months ended December 31, 2025, total company organic revenue growth was 3.7%, compared to 13.7% in 2024[149]. - The Sterilization and Disinfection Control segment reported organic revenue growth of 5.5% for the nine months ended December 31, 2025, down from 31.2% in 2024[149]. - Biopharmaceutical Development segment achieved organic revenue growth of 10.2% for the nine months ended December 31, 2025, compared to 26.6% in 2024[149]. - Calibration Solutions segment reported organic revenue growth of 3.9% for the nine months ended December 31, 2025, down from 10.1% in 2024[149]. - Clinical Genomics segment experienced a decline in organic revenue growth of (6.7%) for the nine months ended December 31, 2025, compared to (14.2%) in 2024[149].