NEO

NeoGenomics is a structurally well-positioned oncology-diagnostics franchise — heme NGS leadership, a growing solid-tumor and MRD menu, and a community-oncology channel feeding a secular rise in cancer testing. The top line backs the story: revenue of $727M grew 10.1% YoY and has compounded cleanly from $484M in FY2021, with gross margin a healthy 43.2%. Management's claim of positive Adjusted EBITDA ($43.4M, +9.5%) and the December 2025 resolution of the RaDaR ST patent litigation (no claims remaining) remove two overhangs and support owning the name. The balance sheet is still investment-grade in spirit: $837M equity, liabilities/equity of just 0.63x, and no current debt maturity.

But profitability is the unresolved problem, and it is getting worse, not better. NEO has lost money every year shown, and the FY2025 net loss of -$108M actually widened from -$78.7M in FY2024 (-37.2% YoY), with operating income at -$116M (-15.9% margin) and ROE of -12.9%. The retained-earnings deficit has deepened to -$434M. Most important for a company that funds growth with convertible notes ($342M long-term debt), cash fell 56.5% to $160M while operating cash flow was a razor-thin +$5.23M — the Pathline acquisition and capex consumed nearly all internally generated cash. The 10-K's own risk section flags that servicing the Convertible Notes 'require a significant amount of cash' and that NEO 'may not have sufficient cash flow' to meet them — a real concern when cash is halving annually and OCF barely clears zero.