NeoGenomics, Inc. (NEO): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of NeoGenomics, Inc.'s portfolio, so I've mapped their core businesses onto the BCG Matrix to see where the cash is flowing and where the big bets are. Honestly, it's a tale of two companies: Next-Generation Sequencing is clearly a Star, growing 24% year-over-year and driving a high-growth mix shift, while the core clinical testing acts as the Cash Cow, supporting the $41 million to $44 million Adjusted EBITDA guidance for FY 2025. Still, the big picture is dominated by Question Marks-heavy investments in new products and the Pathline integration-which is why the company is guiding for a net loss between $116 million and $108 million this year, even as they divest underperforming Dogs like Trapelo. Let's dive into the specifics of this strategic positioning below.

Background of NeoGenomics, Inc. (NEO)

You're analyzing NeoGenomics, Inc. (NEO), a company that stands as a leading provider of specialized oncology testing services. Headquartered in Fort Myers, Florida, NeoGenomics operates a network of CAP-accredited and CLIA-certified laboratories across the United States and in Cambridge, United Kingdom, to serve oncologists, pathologists, hospital systems, academic centers, and pharmaceutical firms. The company offers one of the most comprehensive oncology-focused testing menus across the cancer continuum, focusing on innovative diagnostic and predictive testing to help diagnose and treat cancer.

As of late 2025, NeoGenomics, Inc. has been executing a patient-centric strategy focused on product innovation and commercial expansion, including the integration of the Pathline acquisition completed in April 2025. For the third quarter ending September 30, 2025, NeoGenomics reported total revenue of $188 million, marking an 11.9% increase year-over-year. This performance beat analyst expectations for the quarter. The company's clinical business showed strong momentum, with clinical revenue growing 15% year-over-year when excluding the Pathline contribution.

A key driver within the clinical segment is the Next-Generation Sequencing (NGS) services, which saw revenue growth of 24% in the third quarter of 2025 compared to the prior year. These higher-value NGS services now represent approximately 33% of the company's total clinical revenue. Furthermore, the company secured a favorable court ruling regarding its RaDaR ST minimal residual disease (MRD) assay, positioning it for a robust clinical launch in early 2026, following a launch to biopharma customers in Q3 2025. On the other hand, non-clinical revenue, which includes pharma services, has faced continuing pressure throughout 2025.

Looking at the full year 2025 projections, NeoGenomics, Inc. affirmed its guidance, projecting total revenues in the range of $735 million to $745 million. The company maintained its adjusted EBITDA guidance for the full year between $55 million and $58 million. This outlook supports the company's Long-Range Financial Plan, which targets annual revenue growth of 12-13%, with a specific expectation for NGS growth of approximately 25% per year.

NeoGenomics, Inc. (NEO) - BCG Matrix: Stars

You're looking at the core growth engine for NeoGenomics, Inc. (NEO) right now, the segment that demands capital investment because it's capturing a rapidly expanding market. These are the businesses where market share is high and the market itself is still growing fast.

The Next-Generation Sequencing (NGS) business unit clearly fits this Star profile based on recent performance. For the third quarter of 2025, NGS revenues showed impressive momentum, growing by 24% year-over-year. This growth is driving a favorable mix shift within the company's overall clinical testing segment, which itself grew by 18% year-over-year in Q3 2025.

The strategic importance of NGS is underscored by the company's forward-looking targets. NeoGenomics, Inc. has set its Long-Range Growth Plan to target approximately 25% annual growth for NGS. This high investment priority is necessary to maintain leadership in this dynamic area, which already accounted for 33% of total clinical revenue in Q3 2025. The overall Q3 2025 total revenue reached $188 million.

The company is also positioning its Minimal Residual Disease (MRD) testing portfolio to be the next Star, or at least a significant contributor to the high-growth segment. Specifically, the RaDaR ST assay is scheduled for a robust launch in the clinical oncology setting in the first quarter of 2026. This move targets the MRD and therapy selection markets, which management views as representing more than $40 billion of addressable market opportunity combined.

Here's a quick look at the key metrics supporting the Star categorization for NGS:

The investment required to push these high-growth areas-like the upcoming clinical rollout of RaDaR ST-is substantial, but it's the necessary strategy to convert this high-growth market share into future Cash Cows when the market growth naturally decelerates. You need to keep funding the commercial and R&D efforts now.

The key strategic elements driving this Star quadrant include:

• NGS revenue growth of 24% year-over-year in Q3 2025.
• NGS contributing 33% of clinical revenue as of Q3 2025.
• Long-range plan targeting ~25% annual NGS growth.
• Clinical launch for RaDaR ST targeted for Q1 2026.
• Clinical revenue growth of 18% in Q3 2025.

Finance: draft the capital expenditure forecast for the Q1 2026 RaDaR ST clinical launch by next Tuesday.

NeoGenomics, Inc. (NEO) - BCG Matrix: Cash Cows

Cash Cows in the Boston Consulting Group Matrix represent the established, high-market-share businesses that generate more cash than they consume, funding other parts of the portfolio. For NeoGenomics, Inc., this quadrant is anchored by its core, established clinical testing services.

Core, established clinical testing services generate the bulk of the volume. In the third quarter of 2025, the clinical volume reached 361,000 tests. This high volume underscores the mature, high-share nature of this business unit within the market for oncology diagnostics.

This segment provides the stable revenue base for the company's overall positive Adjusted EBITDA. NeoGenomics, Inc. re-affirmed its full-year 2025 guidance for Adjusted EBITDA to be in the range of $41 million to $44 million.

The comprehensive oncology-focused test menu maintains a strong market position in community oncology settings. This breadth allows the company to capture a wide array of testing needs, which supports the consistent growth in revenue per test, reflecting a favorable mix shift toward higher-value tests like Next-Generation Sequencing (NGS).

The performance of this segment is clear in the year-over-year comparisons. Clinical revenue grew 18% year-over-year in Q3 2025, providing consistent, high-share growth. This growth is a direct result of strong volume and pricing power.

Here's a quick look at the key clinical performance metrics from Q3 2025 that define this Cash Cow:

The focus for this segment is maintaining efficiency, as low growth in the overall market suggests promotion investments should be minimized. You want to ensure the infrastructure supporting these high volumes-like laboratory operations and commercial support for existing accounts-is optimized to maximize the cash flow contribution. Investments here should focus on incremental efficiency gains rather than broad market expansion.

The drivers supporting this high-share status include:

• Strong clinical test volumes, up 15% year-over-year in Q3 2025.
• NGS revenue growth of 24% year-over-year in Q3 2025.
• AUP increase of 3% year-over-year in Q3 2025.

This segment is the engine that delivers the positive Adjusted EBITDA, which is crucial for funding the company's Question Marks and Stars. Finance: draft 13-week cash view by Friday.

NeoGenomics, Inc. (NEO) - BCG Matrix: Dogs

You're looking at the parts of NeoGenomics, Inc. (NEO) that aren't pulling their weight, the units that tie up capital without delivering meaningful returns. In the BCG framework, these are the Dogs-low market share in low-growth areas.

The Non-clinical revenue segment, dominated by Pharma Services, clearly fits this profile. For the second quarter of 2025, this segment experienced a significant contraction, with Nonclinical revenue declining by 26% year-over-year. Considering that Pharma Services makes up roughly three quarters of the total non-clinical revenue, this weakness is a major headwind for the entire organization. Management's cautious outlook for this segment was a key factor in slashing the full-year 2025 revenue guidance to a midpoint of $723 million, representing only 9.5% year-over-year growth from the 2024 midpoint.

The explicit actions taken by NeoGenomics, Inc. management confirm the underperformance of certain ventures. In the second quarter of 2025, the company recorded $20.0 million in impairment charges related to assets held for sale. These charges specifically targeted the planned sale of Trapelo and intangible asset impairments related to InVisionFirst®-Lung. This move signals a clear divestiture strategy for these underperforming assets.

Furthermore, the discontinuation of InVisionFirst®-Lung, which was replaced by the enhanced NEO PanTracer LBx offering, suggests the former was a legacy product struggling to compete or meet internal benchmarks. While the clinical side of the business showed strength, with clinical revenue growing 16% in Q2 2025, the overall financial picture for the Dogs segment is one of cash consumption or minimal contribution, as seen in the overall margin compression.

Here is a snapshot of the financial performance metrics that characterize the pressure on NeoGenomics, Inc.'s overall profitability, which is often exacerbated by these low-return units:

These Dogs units, like the Pharma Services segment, are markets where NeoGenomics, Inc. has a low relative share or where the growth has stalled, making them candidates for divestiture or minimal investment. The strategy here is to stop the bleeding and redeploy capital to the Stars and Question Marks.

• Non-clinical revenue decline in Q2 2025: 26% year-over-year.
• Impairment charge for Trapelo/InVisionFirst®-Lung in Q2 2025: $20.0 million.
• InVisionFirst®-Lung discontinued, replaced by NEO PanTracer LBx.
• Pharma Services represents roughly three quarters of non-clinical revenue.
• Full-year 2025 revenue guidance midpoint reduced to $723 million.

When expensive turn-around plans fail to materialize, the logical next step is to stop allocating resources. The impairment charges are the financial recognition of this reality for assets like Trapelo and InVisionFirst®-Lung.

NeoGenomics, Inc. (NEO) - BCG Matrix: Question Marks

You're looking at the new ventures at NeoGenomics, Inc. (NEO)-the products and acquisitions that are burning cash now but could become the big winners later. These are the classic Question Marks: high market growth potential, but we haven't captured significant market share yet. They demand serious capital infusion to move them out of this quadrant.

The PanTracer Liquid Biopsy (LBx) is a prime example. This noninvasive test, which uses circulating tumor DNA (ctDNA) from a blood draw, officially launched commercially in July 2025. It aims to capture a piece of the growing $3 - $5 billion liquid biopsy market. However, its 2025 revenue contribution is still uncertain; a delay in its commercial launch actually impacted expected NGS revenue in the second quarter of 2025. The market is growing fast, but PanTracer LBx is still fighting for its first big wins.

The Pathline acquisition, completed in April 2025, fits this profile too. It's strategic, expanding the company's footprint, but it comes with near-term financial drag. For the full year 2025, Pathline is projected to contribute between $12 million to $14 million in revenue. Still, integration is costing cash; the company noted a potential adjusted EBITDA impact of negative $1 million for the remainder of 2025 due to integration costs following the second quarter.

These high-growth bets require heavy spending. NeoGenomics, Inc. is actively enhancing its R&D efforts to support these new platforms. For instance, the company's commitment to next-generation sequencing (NGS) is evident, as five new NGS products launched since the first quarter of 2023 now account for 22% of total clinical revenue. This investment is reflected in the bottom line, showing the cash burn associated with building market share.

The financial reality of these investments is clear when you look at the reported losses and the revised guidance. For the second quarter of 2025, the Net loss increased 142% to $45 million, which included $20 million of impairment charges related to the upcoming replacement of an older test with PanTracer LBx. The third quarter of 2025 saw a Net loss of $27 million. The company's revised full-year 2025 guidance, issued in July 2025, projects total revenues between $720 million to $726 million, but the expected Adjusted EBITDA is only $41 million to $44 million. This lower profitability, relative to the high revenue potential, underscores the heavy investment phase these Question Marks are currently in.

Here's a snapshot of the recent financial drain from these growth initiatives:

You need to watch the adoption speed of PanTracer LBx and the successful integration of Pathline. These are the two levers that will determine if these assets move into the Star quadrant or slide into the Dog category.

• PanTracer LBx launch was in July 2025.
• Pathline acquisition completed in April 2025.
• NGS revenue growth target is ~25% annually long-term.
• Revised FY 2025 revenue growth guidance is 9% to 10%.

Finance: draft 13-week cash view by Friday.