NeoGenomics, Inc. (NEO): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of a specialized diagnostics leader, and honestly, understanding how NeoGenomics, Inc. actually makes money is key to valuing their growth story. Their model hinges on high-volume, comprehensive oncology testing, fueled by proprietary tech and strategic deals, aiming for $720 million to $726 million in total revenue for 2025. We've mapped out all nine blocks of their Business Model Canvas-from their specialized lab network to their significant R&D investment-so you can see exactly where the near-term opportunity and cost pressures lie below.

NeoGenomics, Inc. (NEO) - Canvas Business Model: Key Partnerships

You're looking at how NeoGenomics, Inc. builds out its market reach and capability through external relationships, which is crucial for a diagnostics company like this. Here's the breakdown of those key partnerships as of late 2025, grounded in the numbers we have from the latest filings.

Ultima Genomics collaboration for future clinical test offerings

NeoGenomics, Inc. partnered with Ultima Genomics, Inc. to integrate the UG 100 sequencing platform into its innovation center in Cambridge, UK. This move is about future-proofing the test portfolio, especially for areas like minimal residual disease (MRD) testing. The technology itself provides some compelling metrics for high-throughput, high-fidelity sequencing. Ultima's platform, with its recent Solaris chemistry updates, reportedly delivers over 10 billion reads per wafer. The cost profile is aggressive, cited at $0.24 per million reads. Critically for liquid biopsy applications, the system supports 30X coverage from as little as 2 nanograms of DNA.

Managed care organizations for test reimbursement and coverage

Securing payment is as important as running the test, so contracting with payers is a core partnership function. NeoGenomics, Inc. is a participating provider with Medicare and Medicaid, plus many private insurance providers and managed care organizations. These contracts are key to revenue realization. For instance, strategic reimbursement initiatives are cited as a factor contributing to the Average revenue per clinical test ("revenue per test") increasing by 2% to $465 in the second quarter of 2025, and further increasing by 3% to $476 in the third quarter of 2025. The company works with client offices to handle prior authorization support, as many insurance providers require this step before testing can be performed.

Strategic business development for portfolio-enhancing acquisitions

Business development efforts focus on acquisitions that enhance the portfolio and geographic footprint. The most recent example is the Pathline, LLC deal, which was completed on April 7, 2025. This type of strategic move is intended to accelerate growth in specific regions. For context on the non-acquisition side of pharma/biotech partnerships, the non-clinical revenue stream, which often reflects clinical trial and drug development work, has faced headwinds. Non-clinical revenue declined 15.8% year-over-year in the first quarter of 2025, or a drop of $3.4 million. This weakness continued through Q2 and Q3 2025, which management incorporated into the full-year 2025 revenue guidance revision to $720 million to $726 million.

Academic centers and clinical trial sponsors for research services

NeoGenomics, Inc. serves academic centers and pharmaceutical firms as part of its Pharma Services Division, supporting clinical trials and drug development. The company offers one of the most comprehensive oncology-focused testing menus across the cancer continuum to these groups. The focus on high-value testing is evident in the growth of Next-Generation Sequencing (NGS) revenue, which increased 24% year-over-year in the third quarter of 2025 and now accounts for nearly one-third of clinical revenue. The overall clinical business, which includes services for these partners, grew 18% in Q3 2025.

Pathline, LLC acquisition to strengthen Northeast community channel

The Pathline, LLC acquisition, finalized in April 2025, was specifically aimed at strengthening the Northeast U.S. presence, a historically underpenetrated market. Pathline, a CLIA/CAP/NYS-certified laboratory in New Jersey, had approximately 98% of its revenue coming from Northeast customers. The deal structure involved initial cash consideration of $8.0 million, subject to adjustments, plus contingent consideration of $1.0 million. The impact of this partnership is quantifiable in the financials. For the three months ended September 30, 2025, revenue attributed to Pathline was approximately $4.6 million, with a related net loss of approximately $2.2 million. Management revised its full-year 2025 guidance to include an incremental $12 million to $14 million in revenue from this acquisition. Excluding Pathline tests, the clinical revenue growth in Q3 2025 was 15%, and the Average revenue per clinical test growth was 4%.

Here's a quick look at the Pathline acquisition's reported financial contribution through Q3 2025:

Metric	3 Months Ended Sept 30, 2025	9 Months Ended Sept 30, 2025
Revenue	$4.6 million	$9.4 million
Net Loss	$2.2 million	$4.6 million

The company expects operational consolidation efforts and synergies to yield substantial annual cost reductions, which are projected to be accretive to Adjusted EBITDA starting in 2026.

NeoGenomics, Inc. (NEO) - Canvas Business Model: Key Activities

You're looking at the core engine of NeoGenomics, Inc. as of late 2025. The company's activities are heavily weighted toward high-growth molecular testing segments, which is where the real money is moving in oncology diagnostics.

Performing comprehensive oncology-focused diagnostic testing

This is the bread and butter. NeoGenomics, Inc. is focused on delivering a broad, oncology-centric test menu, primarily serving community settings where about 80% of cancer care happens. The third quarter of 2025 showed solid execution here, with total revenue hitting a record $188 million. Clinical revenue, the core driver, increased by 18% year-over-year in Q3 2025. The sheer volume of work is up, too; total test volumes increased by 15% in that same quarter. The value of that work is also ticking up, with the Average Revenue Per Clinical Test (AUP) reaching $476 in Q3 2025, a 3% rise from the prior year. The high-value Next-Generation Sequencing (NGS) tests are a major part of this, growing 24% year-over-year in Q3 2025 and making up 33% of total clinical revenue.

Here's a look at how the average test price has trended:

Period Ended	Average Revenue Per Clinical Test (AUP)	Year-over-Year AUP Change
March 31, 2025 (Q1)	$459	3%
June 30, 2025 (Q2)	$465	2%
September 30, 2025 (Q3)	$476	3%

The activity involves processing tests across the United States and the United Kingdom, aiming to bring the latest cancer testing innovation to community hospitals and oncologists.

Research and Development (R&D) for next-gen MRD and therapy selection

NeoGenomics, Inc. is actively investing in the next wave of testing, specifically Minimal Residual Disease (MRD) and advanced therapy selection tools. For the first three months of 2025 (ending March 31, 2025), R&D expenses rose by $2.6 million compared to the same period in 2024. This investment supports key pipeline products. For instance, the RaDaR ST MRD assay secured MolDX approval for specific head and neck and breast cancer indications, though revenue recognition for this is weighted toward the second half of 2026. The company's Long-Range Plan targets continued high growth for NGS, aiming for approximately 25% growth per year.

Commercial launch and scaling of PanTracer™ Liquid Biopsy

A major activity in the second half of 2025 was the commercial launch of the NEO PanTracer™ LBx, a blood-based comprehensive genomic profiling (CGP) test, announced on July 30, 2025. This test is designed to analyze over 500 genes from circulating tumor DNA (ctDNA) with a target turnaround time of seven days. This launch positions NeoGenomics, Inc. to compete in the growing liquid biopsy market, estimated to be between $3 - $5 billion. While the launch was planned for earlier, the Q2 2025 call noted a delay in the commercial launch of PanTracer Liquid Biopsy, which impacted expected NGS revenue for that quarter. Still, management indicated the test plays a big role in the second half of 2025.

Expanding commercial sales force and enhancing operational efficiencies

To support test volume growth, the company is focused on its commercial organization and internal operations. Operating expenses in Q3 2025 were $107 million, an increase of $11 million, or 12%, year-over-year. This increase included $4.7 million in higher compensation and benefit costs, reflecting sales team expansion efforts. The company completed the acquisition of Pathline in April 2025 to bolster its Northeast presence. Operational efficiency is a forward-looking activity, with plans for LIMS consolidation, lab automation, and digital pathology initiatives expected to drive margin expansion starting in 2026 and beyond. The company also recorded $7.1 million in impairment charges in Q3 2025 related to the planned sale of Trapelo.

Key operational and financial metrics for Q3 2025:

• Adjusted EBITDA: Positive $12.2 million, marking the ninth consecutive quarter of positive results.
• Cash and Cash Flow: Ended Q3 2025 with $164 million in cash and $9 million in positive operating cash flow.
• Net Loss (Q3 2025): Increased by 53% to $27 million.

Executing strategic reimbursement and managed care pricing initiatives

Securing favorable payment terms directly impacts the AUP, which is a key focus. The increase in AUP in Q3 2025 to $476 reflects the positive impact of these strategic reimbursement initiatives. The company's initial full-year 2025 guidance, provided in January 2025, projected total revenues between $735 million and $745 million, representing 11% to 13% growth. However, this guidance was revised later in the year. By the Q3 2025 report, the reiterated full-year 2025 revenue guidance was narrowed to the range of $720 million to $726 million, representing 9% to 10% growth. The associated adjusted EBITDA guidance was set between $41 million and $44 million. Looking long-term, the plan includes achieving gross margin expansion of 100-150 basis points (bps) per year and Adjusted EBITDA improvement of 250-300 bps per year.

NeoGenomics, Inc. (NEO) - Canvas Business Model: Key Resources

You're looking at the core assets NeoGenomics, Inc. relies on to execute its precision oncology testing strategy as of late 2025. These aren't just line items; they are the engines of their revenue and competitive edge.

Network of CAP-accredited and CLIA-certified laboratories (US and UK)

The physical footprint is critical for regulatory compliance and service delivery. NeoGenomics, Inc. maintains a network of laboratories across the US and one in the United Kingdom. The Pathline, LLC acquisition finalized on April 4, 2025, added a New Jersey-based CLIA/CAP/NYS-certified facility to this network.

Here's a look at the established laboratory locations:

• Fort Myers and Tampa, Florida (CAP accredited and CLIA certified)
• Aliso Viejo, Carlsbad, and San Diego, California (CAP accredited and CLIA certified)
• Research Triangle Park, North Carolina (CAP accredited and CLIA certified)
• Houston, Texas (CAP accredited and CLIA certified)
• Atlanta, Georgia (CAP accredited and CLIA certified)
• Nashville, Tennessee (CAP accredited and CLIA certified)
• Phoenix, Arizona (CAP accredited and CLIA certified)
• Cambridge, United Kingdom (CAP accredited)

This infrastructure supports their full-service sample processing and analysis across the US and Europe.

Broad, oncology-centric test menu of over 500 tests

The breadth of the test menu is a major draw for oncologists and pharmaceutical partners. NeoGenomics, Inc. offers one of the most comprehensive oncology-focused testing menus globally.

Test Category/Metric	Data Point
Total Oncology-Focused Tests Offered	Over 500 tests
Pan-Solid Tumor Panel Genes (NEO PanTracer LBx)	Over 500 genes
Clinical Revenue Share (NGS) Q3 2025	33% of total clinical revenue
Average Revenue Per Clinical Test Q2 2025	$465

They cover all major modalities, including single-gene molecular testing, IHC, flow cytometry, FISH, and NGS.

Proprietary Next-Generation Sequencing (NGS) and Minimal Residual Disease (MRD) technology

Innovation in molecular technology is key to capturing high-value testing revenue. The proprietary technology centers on advanced sequencing and liquid biopsy platforms.

• RaDaR ST Assay: A circulating tumor DNA (ctDNA) assay leveraging whole-exome sequencing data and advanced bioinformatics to create patient-specific MRD panels.
• RaDaR ST Performance: Demonstrated 97% concordance with the predecessor RaDaR 1.0 assay in a bridging study.
• NEO PanTracer Tissue: The updated name for their Comprehensive Genomic Profiling NGS test, with a turnaround time of 8-10 Days for NGS.

The RaDaR ST assay is covered by Medicare for HR+/HER2- breast cancer and HPV- head and neck carcinoma monitoring.

Highly specialized pathologists and scientific personnel

The intellectual capital, including licensed physicians and molecular experts, interprets the complex results. While specific pathologist counts aren't public, the overall workforce size gives you a sense of the scale of expertise supporting the operations.

Here's the quick math on the workforce size as of late 2025:

• Total Employees (Estimate as of October 2025): Approximately 2,200 or about 1.7K employees.
• Key Personnel Mentioned: Chief Executive Officer, Chief Culture Officer, and Chief Scientific Officer And Laboratory Director Fort Myers, Fl.

If onboarding takes 14+ days, churn risk rises, especially for highly specialized roles.

Cash and marketable securities totaling $164 million as of Q2 2025

Liquidity is a foundational resource, especially after significant corporate actions. The balance sheet reflects solid cash discipline, even after retiring debt.

Financial Metric	Amount (as of Q2 2025 End)
Cash and Cash Equivalents and Marketable Securities	$164 million
Operating Cash Flow Q2 2025	Positive $20 million
Convertible Notes Retired (May 2025 Maturity)	$201 million
Cash and Cash Equivalents (Sep. 30, 2025, in thousands)	$164,117

This cash position supported the April 4, 2025, acquisition of Pathline, LLC, which had an initial cash consideration of $8.0 million.

NeoGenomics, Inc. (NEO) - Canvas Business Model: Value Propositions

You're looking at what NeoGenomics, Inc. offers to its customers-the core reasons why oncologists, hospital systems, and biopharma partners choose them over the competition. It's all about breadth, speed, and actionable data in the complex world of cancer diagnostics.

The first big value is offering comprehensive oncology testing across the entire cancer continuum. NeoGenomics provides one of the most complete oncology-focused testing menus available, covering the full spectrum of cancer care needs. This breadth is anchored by a menu featuring over 500 oncology-focused tests.

Next, you see the push for innovative diagnostic and predictive testing for precision medicine. This isn't just running tests; it's about delivering deep insights for targeted therapy. For instance, their Comprehensive Genomic Profiling (CGP) panels identified actionable alterations in 67% of tumors tested, which is more than double the 33% found using a standard 50-gene targeted NGS panel. The PanTracer LBx liquid biopsy test, for example, analyzes a total of 514 genes.

Speed is a major differentiator in oncology, and NeoGenomics delivers with rapid turnaround times. Specifically, the NEO PanTracer LBx liquid biopsy test is designed to offer a seven-day turnaround time (TAT). For their tissue-based tests, the TAT is 8-10 days for PanTracer Tissue and PanTracer Tissue + HRD.

The company helps simplify operational workflows for institutions by consolidating send-out testing. By offering a holistic genomic picture through their PanTracer portfolio, they provide a frictionless, single-source workflow. This consolidation reduces the complexity for institutions managing multiple vendors for different types of testing.

The focus on advanced testing is clearly paying off in the financials, particularly in high-growth NGS testing. In the third quarter of 2025, Next-Generation Sequencing (NGS) revenue grew 24% year-over-year. This high-value segment now accounts for nearly one-third (or 33%) of their total clinical revenue. This growth in high-value testing helped drive the Average Revenue per Clinical Test (AUP) up to $476 in Q3 2025.

Here's a quick look at how their key portfolio elements stack up:

Value Component	Metric/Feature	Associated Number
Comprehensive Coverage	Total Genes Analyzed (PanTracer Portfolio)	Over 500
Precision Medicine Impact	Actionable Alterations Found (CGP vs. 50-gene panel)	67% vs. 33%
Speed of Results	PanTracer LBx Turnaround Time (TAT)	7 days
Growth Engine	NGS Revenue Growth (Q3 2025 YoY)	24%
Clinical Volume	Total Clinical Test Volume (Q3 2025)	361,000 tests

The value proposition is further supported by operational performance metrics from Q3 2025:

• Total Consolidated Revenue reached $188 million.
• Clinical Revenue grew 18% year-over-year.
• Clinical Test Volumes increased 15% year-over-year.
• The company is projecting full-year 2025 revenue between $720 million and $726 million.

They are delivering these results while focusing on integrating acquisitions, like Pathline, which was completed during the third quarter, including the validation of critical TAT-sensitive assays.

NeoGenomics, Inc. (NEO) - Canvas Business Model: Customer Relationships

You're looking at how NeoGenomics, Inc. connects with the oncologists, pathologists, and hospital systems that rely on their specialized cancer testing. It's about making complex diagnostics accessible and actionable for the people treating patients every day. The company's strategy, as CEO Tony Zook noted entering 2025, centers on winning on customer experience while capitalizing on its commercial organization.

The structure for direct engagement relies heavily on a dedicated commercial sales team. NeoGenomics, Inc. has been actively optimizing and expanding this commercial organization throughout 2025. This team includes Oncology Sales Specialists focused on the community oncology segment, a group they expanded in 2024 to increase coverage as new products launched in 2025. While the exact current size of the dedicated sales force isn't public, the company had 2,200 total employees as of September 30, 2025, indicating the scale of the support structure behind these relationships. The acceleration point for contributions from this sales force was anticipated in the second half of 2025.

Consultative services from expert pathologists are a key differentiator, supporting the rapport NeoGenomics, Inc. has established with community pathologists and oncologists. This expert interaction helps translate complex genomic data into clinically actionable reports. The focus on high-value tests, like Next-Generation Sequencing (NGS), which grew 24% year-over-year in Q3 2025, suggests these consultative touchpoints are crucial for adoption.

The patient-centric strategy is designed to directly improve patient care, which is the ultimate measure of customer success. The company delivered a record number of results to patients in the first quarter of 2025. Furthermore, the long-range goal is to serve more than 1 million patients annually by 2028, showing a commitment to scaling this patient impact. This focus is reflected in the clinical volume growth, which increased 15% year-over-year in the third quarter of 2025.

To make doing business easier-a direct driver for customer retention-NeoGenomics, Inc. has heavily invested in its digital ecosystem. This includes direct user interfaces for ordering and accessing results. As of the end of 2024, the company had already implemented over 300 direct user interfaces with customers. This digital push is part of a broader strategy to transform the digital ecosystem, including migrating to a single Laboratory Information Management System (LIMS).

Here's a quick look at some of the key operational metrics that reflect the volume and value flowing through these customer relationships in 2025:

Metric	Period/Date	Value
Total Employees	September 30, 2025	2,200
Direct User Interfaces Implemented (Cumulative)	End of 2024 (Latest Figure)	Over 300
Average Revenue Per Clinical Test	Q3 2025	$476
Clinical Test Volume Growth (YoY)	Q3 2025	15%
NGS Revenue Growth (YoY)	Q3 2025	24%

The company's commitment to customer experience is supported by tangible results in test value and volume, even as they manage headwinds in non-clinical revenue.

• Focus on community oncology segment expansion.
• Goal to achieve 12-13% annual revenue growth for fiscal year 2025.
• NGS now accounts for nearly one-third of clinical revenue as of Q3 2025.
• Adjusted Gross Profit Margin was 47% in Q1 2025.

Finance: draft 13-week cash view by Friday.

NeoGenomics, Inc. (NEO) - Canvas Business Model: Channels

Direct sales force to oncologists, pathologists, and hospitals

NeoGenomics, Inc. capitalizes on a commercial organization focused on the community setting, where approximately 80% of cancer care is delivered. The clinical services sales team is structured across nine regions in the United States. The company noted in its Q2 2025 update that it was 'continuing to grow our sales team.' For pharmaceutical development services, a dedicated team of business development specialists supports sponsors with testing needs for research and development projects, including Phase I, II, and III studies. Sales representatives manage their territories using a custom Customer Relationship Management System (CRM), which integrates key customer care functionality from the Laboratory Information Management System (LIMS) in real time.

Network of full-service, accredited laboratories for sample processing

NeoGenomics, Inc. maintains a network of laboratories across the US that are CAP-accredited and CLIA-certified for full-service sample processing and analysis. This network expanded with the completion of the acquisition of Pathline, LLC, a CLIA/CAP/NYS-certified laboratory in New Jersey, on April 4, 2025. Internationally, the company operates a CAP-accredited full-service, sample-processing laboratory located in Cambridge, United Kingdom. As of September 30, 2025, NeoGenomics (Fort Myers) had a total employee count of 2,200. The company has a long-range goal to serve more than 1 million patients annually by 2028.

Electronic Health Record (EHR) integration, including EPIC, for streamlined ordering

The company is focused on transforming its digital ecosystem, which includes efforts to enhance integration capabilities. While specific adoption numbers for NeoGenomics, Inc. integrations aren't detailed, industry context shows that it may take 4 to 6 months for an IT team to implement a point-to-point integration with a single reference lab. A 2022 report noted a Maryland cancer institute planned to integrate MEDITECH's Expanse Genomics with several labs, including NeoGenomics. Industry-wide, approximately 85% of EHRs offer seamless integration with laboratory systems for real-time result access.

Digital platforms for test ordering and results reporting

The digital infrastructure supports ordering and reporting, with sales teams relying on the integrated LIMS and CRM. The clinical business performance in Q3 2025 showed strong utilization of advanced digital testing platforms, as Next-Generation Sequencing (NGS) testing grew 24% year-over-year and accounted for nearly one-third of clinical revenue. The average revenue per clinical test in the third quarter of 2025 reached $476. The clinical revenue growth for Q3 2025 was 18% compared to Q3 2024.

Here's a quick look at the key performance metrics relevant to channel output for the third quarter of 2025:

Metric	Value (Q3 2025)	Comparison/Context
Consolidated Revenue	$188 million	Up 12% year-over-year
Clinical Revenue Growth (YOY)	18%	Driven by test volumes
Average Revenue per Clinical Test	$476	Up 3% year-over-year
NGS Revenue Share of Clinical Revenue	Nearly one-third	NGS grew 24% year-over-year
Total Employees	2,200	As of September 30, 2025

Finance: review Q4 2025 sales pipeline conversion rates by region by next Tuesday.

NeoGenomics, Inc. (NEO) - Canvas Business Model: Customer Segments

You're looking at how NeoGenomics, Inc. structures its client base, which is really about where the testing dollars are coming from. As of late 2025, the focus is clearly on the clinical side, especially the community setting, even with headwinds in the pharma sector.

The clinical business is the engine. For the third quarter of 2025, total revenue hit a record of \$188 million, with the clinical business driving an 18% year-over-year growth. This segment is where you find the community practices, hospitals, and academic centers.

The company specifically notes its focus on the community setting, stating that approximately 80% of cancer care is delivered there. This tells you where the sales force and service improvements are directed.

The pharmaceutical and biotech firms fall under the non-clinical revenue bucket, and that area has seen pressure. For instance, in the first quarter of 2025, non-clinical revenue declined by 15.8% year-over-year, which the company anticipated.

Here is a breakdown mapping the required segments to the available financial context from the recent quarters:

Customer Segment Group	Primary Revenue Type Context	Key Metric/Data Point (Latest Available)
Community-based pathology and oncology practices	Clinical Revenue	~80% of cancer care delivered in this setting.
Hospital systems and academic medical centers	Clinical Revenue	Part of the clinical business driving 18% YoY growth in Q3 2025.
Pharmaceutical and biotech firms for clinical trials and research	Non-Clinical Revenue	Declined by 15.8% year-over-year in Q1 2025.
Reference laboratories (send-out testing)	Clinical Revenue	Contributes to overall clinical volume, with Average Revenue Per Test at \$476 in Q3 2025.

Within the clinical revenue stream, Next-Generation Sequencing (NGS) is a key value driver for these customers. In the third quarter of 2025, NGS revenue grew by 24% year-over-year and now accounts for nearly one-third of the total clinical revenue.

You can see the overall revenue mix shift by looking at the Q2 2025 figures, where Clinical Revenue was approximately \$160 million out of total revenue of \$181 million, showing the heavy weighting toward direct patient/provider testing.

The average revenue per clinical test (ARPCT) is a good proxy for the value captured from these segments. For the third quarter of 2025, the ARPCT was \$476, up 3% year-over-year.

The company is actively managing its customer base by focusing on high-value tests and maintaining strong relationships in the community. They are positioning themselves as the partner of choice for clinicians.

• NGS testing now represents nearly one-third of clinical revenue.
• The revised full-year 2025 revenue guidance is between \$720 million and \$726 million.
• Q3 2025 total revenue was \$188 million.
• The company is growing its sales team to strengthen the community channel.

If onboarding for new hospital systems takes longer than expected, it definitely impacts the near-term realization of that segment's potential.

Finance: draft 13-week cash view by Friday.

NeoGenomics, Inc. (NEO) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive NeoGenomics, Inc.'s operations as of late 2025. It's a cost-intensive business, built on specialized science and infrastructure.

High compensation and benefit costs for specialized staff represent a major component of the overall spend. For instance, in the third quarter of 2025, the increase in operating expenses included approximately $4.7 million attributed to higher compensation and benefit costs, largely driven by the expansion of the commercial sales team. This reflects the need to staff highly skilled personnel across lab operations and sales.

The commitment to staying ahead in oncology diagnostics means significant R&D investment in new product defintely development is a constant drain on cash flow. Looking at the first nine months of 2025, Research and Development expenses totaled $27,898 thousand, up from $23,190 thousand for the same period in 2024. This investment fuels the development of next-generation MRD products and therapy selection tests.

Total Operating expenses are substantial, reflecting the scale of the laboratory network. For the third quarter of 2025, total operating expenses were reported at $107 million, which was an increase of $11 million, or 12%, compared to the third quarter of 2024. This figure includes non-recurring charges, such as $7.1 million in impairment charges related to the planned sale of Trapelo during Q3 2025.

The core of the cost structure lies in the Costs of supplies and reagents for complex testing. This is captured within the Cost of Revenue. For the three months ended September 30, 2025, the Cost of Revenue was $107,351 thousand. This increase, partially offsetting revenue gains, led to a consolidated gross profit margin of 43% for the quarter, though the Adjusted Gross Profit Margin was 45%.

You also have to account for Acquisition and integration costs as NeoGenomics, Inc. continues to expand its footprint. The acquisition of Pathline, LLC, completed in April 2025, involved an initial cash consideration of $8.0 million, subject to adjustments, plus a contingent consideration of $1.0 million. The company anticipates operational consolidation and synergies from this deal will yield substantial annual cost reductions, expected to be accretive to Adjusted EBITDA starting in 2026.

Here's a quick look at the major expense categories for the three months ended September 30, 2025, compared to the prior year period, in thousands of USD:

Expense Category	3 Months Ended Sep. 30, 2025 (in thousands)	3 Months Ended Sep. 30, 2024 (in thousands)
Cost of Revenue	$107,351	$92,944
General and administrative	$69,874	$66,969
Sales and marketing	$21,806	$20,415
Impairment charges (Note 5)	$7,086	$0
Total Operating Expenses	$107,460	$96,077

The breakdown of operating expenses for the third quarter of 2025 shows where the cash is going:

• General and administrative expenses: $69,874 thousand.
• Sales and marketing expenses: $21,806 thousand.
• Research and development expenses: $8,694 thousand.
• Impairment charges: $7,086 thousand.

The company ended the quarter with $164 million in cash and cash equivalents and marketable securities.

Finance: draft 13-week cash view by Friday.

NeoGenomics, Inc. (NEO) - Canvas Business Model: Revenue Streams

You're looking at how NeoGenomics, Inc. brings in its money as of late 2025. It's primarily a testing and services company focused on oncology.

The company's revenue streams are built around its laboratory services, which are segmented by the type of client and test complexity. You'll see the core business is heavily reliant on clinical volume and pricing power.

For the full year 2025, NeoGenomics, Inc. has provided guidance expecting total revenue in the range of $720 million to $726 million. Furthermore, the company guided for Full-year 2025 Adjusted EBITDA guidance of $41 million to $44 million.

Clinical Services Revenue from Diagnostic Testing (Primary Driver)

This is the bread and butter for NeoGenomics, Inc. It covers the testing ordered by oncologists and pathologists to help diagnose and manage cancer treatment for patients. Strength here drives the overall top line, as seen in recent quarters.

For instance, in the third quarter of 2025, total clinical revenue grew by 18% year-over-year. This growth was fueled by a 15% increase in clinical test volumes and a 3% increase in the average revenue per clinical test, which reached $476. That average price increase reflects a mix shift toward more complex, higher-value tests.

The key components driving this segment include:

• Clinical cancer testing services.
• Interpretation and consultative services.
• Validation laboratory services.

Next-Generation Sequencing (NGS) Testing Revenue (High-Growth Segment)

Next-Generation Sequencing (NGS) is a critical, high-growth component within the broader clinical testing category. These are more advanced, comprehensive genomic tests that provide deeper insights for targeted therapy selection.

NGS has been a standout performer. In the third quarter of 2025, NGS revenue specifically grew by 24% year-over-year. This segment benefits from the overall increase in the average revenue per test because NGS tests carry a higher price point than standard tests.

The table below summarizes some recent quarterly performance metrics that feed into this revenue stream:

Metric	Q3 2025 Value	YoY Growth (Q3 2025 vs Q3 2024)
Total Consolidated Revenue	$188 million	12%
Clinical Revenue Growth	Not explicitly stated	15% increase in clinical test volumes
NGS Revenue Growth	Not explicitly stated	24%
Average Revenue Per Clinical Test	$476	3%

Non-Clinical Revenue from Pharmaceutical and Biotech Research Services

This stream comes from providing testing and lab services to pharmaceutical and biotech companies, often supporting their clinical trials or research and development efforts. This revenue can be more lumpy and less predictable than the core clinical business.

You need to watch this segment closely, as it has shown recent weakness. In the third quarter of 2025, non-clinical revenue declined by 27% versus the prior year, which partially offset the strong performance in the clinical segment. This pressure in pharma revenue was cited as a reason for earlier guidance revisions.

The services falling under this category are:

• Clinical trials and research support.
• Comprehensive technical and professional services offering.
• Oncology data solutions.

It's a smaller piece of the pie right now, but it's important for strategic partnerships.