Neogen reported fiscal third-quarter 2026 revenue of $211.2 million, down 4.4% from $221.0 million a year earlier, as gains in food safety were offset by a sharp drop in animal safety.
Food safety revenue rose 2.6% to $156.7 million from $152.8 million. Within that segment, indicator testing and culture media climbed 11.0% to $83.0 million, bacterial and general sanitation increased 5.5% to $42.1 million, and natural toxins and allergens edged up 1.7% to $17.9 million. Biosecurity products, however, fell 66.9% to $3.9 million from $11.8 million.
Animal safety revenue fell 20.1% to $54.5 million from $68.2 million. Biosecurity products in that segment dropped to $15.0 million from $23.8 million, while animal care and other declined 43.3% to $5.9 million from $10.4 million. Veterinary instruments and disposables were flat at $15.5 million, and genomics services slipped 2.4% to $16.6 million.
By geography, domestic revenue decreased 11.4% to $102.3 million from $115.4 million, while international revenue rose 3.1% to $108.9 million from $105.6 million.
Gross profit was $99.0 million, down from $110.3 million, and gross margin narrowed to 46.9% from 49.9%. Operating expenses fell to $102.3 million from $104.9 million, but the company still posted an operating loss of $3.3 million, compared with operating income of $5.4 million a year earlier.
Net loss widened to $17.0 million, or $(0.08) per diluted share, from a loss of $10.9 million, or $(0.05) per share. Adjusted net income was $19.4 million, down from $20.9 million, and adjusted EPS slipped to $0.09 from $0.10.
Adjusted EBITDA was $48.2 million, down slightly from $48.6 million, but the margin improved to 22.8% from 22.0%. Cash flow from operations was $22.7 million, and free cash flow was $11.1 million.
For the first nine months, revenue was $645.1 million, down 3.6% from $669.2 million. Food safety revenue was essentially flat at $474.3 million, while animal safety revenue declined 11.5% to $170.8 million. Net income for the nine-month period was $3.4 million versus a loss of $479.8 million a year earlier.
Neogen raised its fiscal 2026 revenue outlook to $857 million to $860 million from $845 million to $855 million, while keeping adjusted EBITDA guidance at approximately $175 million.
The company also said it completed validation on 100% of Petrifilm equipment and is now in operational and performance validation on multiple SKUs, with the manufacturing transition still targeted for November 2026. Neogen said the genomics divestiture is expected to close in the second quarter of fiscal 2027, with net proceeds of about $140 million. As a result of these announcements, the company's shares have moved -0.11% on the market, and are now trading at a price of $9.15. For more information, read the company's full 8-K submission here.
