Here’s Why Conestoga Capital Advisors Sold Mesa Laboratories (MLAB)

Core Insights - Conestoga Capital Advisors reported that US equities had solid returns in 2025, with double-digit gains across major indices, but underlying conditions showed extreme volatility and market leadership [1] - The Small Cap Strategy of Conestoga Capital Advisors returned -1.89% net-of-fees in Q4 2025, underperforming the Russell 2000 Growth Index, which returned 1.22% [1] - The rally in "low quality" stocks continued in Q4 2025, albeit at a slower pace compared to previous quarters [1] Company-Specific Insights - Mesa Laboratories, Inc. (NASDAQ:MLAB) is a provider of life sciences tools and quality control products, with a one-month return of 11.32% but a 52-week loss of 35.06% [2] - As of February 19, 2026, Mesa Laboratories, Inc. had a stock price of $92.02 and a market capitalization of $508.393 million [2] - Conestoga Capital Advisors expressed concerns about Mesa Laboratories' long-term growth prospects, citing pressures from end-market weakness, particularly in cell and gene therapy and in China [3] - The company exited its position in Mesa Laboratories due to insufficient conviction in its growth potential and limited organic growth opportunities [3] - Mesa Laboratories was not among the 30 most popular stocks among hedge funds, with 20 hedge fund portfolios holding the stock at the end of Q3 2025, an increase from 12 in the previous quarter [5] - Conestoga Capital Advisors believes that certain AI stocks present greater upside potential and less downside risk compared to Mesa Laboratories [5]