Neogen Corporation (NEOG): Business Model Canvas [Dec-2025 Updated]

As a finance vet who's seen a few major integrations, you're looking at Neogen Corporation's blueprint right now, and honestly, the numbers from fiscal year 2025 paint a sharp picture of their current reality. With total revenue hitting $894.7 million, largely fueled by the $638.1 million from the Food Safety segment, the focus is clearly on making that big 3M acquisition work, even as they carry $900.0 million in debt and spent $104.6 million on capital expenditures just to get things aligned. I've mapped out the nine essential building blocks-from their proprietary genomics services to the high COGS at 52.9% of revenue-so you can see exactly how Neogen Corporation plans to turn this complex structure into predictable profit; dive in below to see the full breakdown.

Neogen Corporation (NEOG) - Canvas Business Model: Key Partnerships

You're mapping out Neogen Corporation's strategic alliances as of late 2025. These partnerships are critical for maintaining their global footprint and regulatory standing in both Food Safety and Animal Safety segments.

Distribution partners are essential for global market reach. Neogen Corporation has a presence in over 140 countries, supported by a dedicated sales team selling products to animal health product distributors.

Regulatory alignment is a core component, especially with the U.S. Department of Agriculture (USDA). The USDA Food Safety and Inspection Service (FSIS) has named the Neogen Molecular Detection System (MDS) as its primary method for testing Salmonella and Listeria monocytogenes in meat, poultry, and egg products. The agency also selected Listeria spp. and the Neogen Molecular Detection Assay 2 - Salmonella Enteritidis/Salmonella Typhimurium. The USDA FSIS has been using the Neogen MDS for over five years.

The genetics sector relies heavily on collaborations with breeding and genetics companies. This includes large dairy artificial insemination providers. The estimated value of the global veterinary artificial insemination market in 2025 was $5.55 Billion, and the global bovine artificial insemination market size was calculated at USD 3.42 billion in 2025.

Technology and research collaborators help drive new diagnostic and genomic solutions. Neogen Analytics is now integrated with Clean-Trace® and Petrifilm Plate Reader Advanced.

The integration of the former 3M Food Safety Division continues to shape operational partnerships. The full-year net loss for fiscal year 2025 was $1,092.0 million, driven by a non-cash goodwill impairment charge related primarily to this acquisition. The company is progressing into the later stages of integration, with Petrifilm production integration proceeding well.

Here is a breakdown of the key partnership categories and associated figures:

The company's total outstanding shares of common stock as of August 26, 2025, the record date for the Annual Meeting, were 217,298,626.

Neogen Corporation (NEOG) - Canvas Business Model: Key Activities

You're looking at the core engine room of Neogen Corporation as of late 2025, the things they absolutely must do well to make the business work.

Manufacturing and production of diagnostic test kits and consumables

Neogen Corporation's manufacturing activity centers on producing the physical tools for food safety and animal health testing. For the full fiscal year ending May 31, 2025, the Food Safety segment generated $638.1 million in revenue, representing 71.3% of total revenues for that period. The Animal Safety segment, which includes many consumables, brought in $256.5 million for the same full year. The company faced production constraints impacting the sample collection product line during fiscal year 2025. Furthermore, the company reported duplicate costs associated with the startup of Petrifilm manufacturing in the prior period. In the fourth quarter of fiscal 2025, Neogen's total revenue was $225.5 million.

Integration of the former 3M Food Safety Division assets and operations

The integration of the former 3M Food Safety Division remains a critical, ongoing activity, though it has been complex. Capital expenditures for fiscal year 2025 were approximately $105 million, which included approximately $55 million specifically related to the integration of the former 3M Food Safety Division assets. This integration activity has been linked to significant financial events, including a non-cash goodwill impairment charge of $456.3 million reported in the second quarter of fiscal 2025, and a total net loss driver of $612.2 million in the fourth quarter of fiscal 2025. The company is working to resolve inefficiencies in production and strengthen supply chain planning as part of this integration effort. The former 3M Food Safety business had a diversified revenue base of more than 100,000 end-user customers and products used in more than 60 countries prior to the merger.

Research and development (R&D) focused on core food safety and animal health

Neogen Corporation is focusing its R&D on fewer, more impactful innovation projects within its core food safety categories. During the second quarter of fiscal 2025, the company initiated restructuring actions focused mainly on rightsizing its Genomics business to streamline operations and focus end-market exposure. For the full year 2025, the company reported a total operating loss of $(1,060,997) thousand, which included a goodwill impairment charge of $1,059.3 million in the Food Safety segment. The Animal Safety segment saw lower genomics volume due to voluntary attrition related to restructuring actions. The company's overall revenue for the full fiscal year 2025 was $894.7 million.

Executing a targeted improvement plan for margin expansion and cost reduction

A targeted improvement plan is central to Neogen Corporation's near-term strategy. This plan includes executing a $20 million annualized cost reduction initiative. The company is also focused on cost productivity in sample collection. This focus is intended to drive margin expansion, as the Adjusted EBITDA Margin for the full fiscal year 2025 was 20.6%, down from 22.4% in the prior year's fourth quarter. For the first quarter of fiscal 2026 (ending November 30, 2024), the Adjusted EBITDA was $35.5 million, representing a margin of 17%. The company expects capital expenditures to decline significantly in fiscal year 2026 to approximately $50 million from $105 million in fiscal 2025. The company completed the divestiture of its global Cleaners & Disinfectants business, using proceeds to pay down $100 million in debt.

Providing advanced genomic testing services for livestock and companion animals

Genomic testing services are a component of the Animal Safety segment. During fiscal year 2025, revenue for the Animal Safety segment decreased by $12.4 million compared to the prior year. This decline was driven by lower genomics volume due to voluntary attrition in connection with restructuring actions. The company is working to improve performance in this area, as evidenced by the restructuring actions taken in the second quarter of fiscal 2025 to rightsize the Genomics business. The Animal Safety segment's full-year revenue for fiscal 2025 was $256.5 million. The company's overall revenue guidance for fiscal year 2026 is in the range of $820 million to $840 million.

• Restructuring actions initiated in Q2 FY2025 focused on rightsizing the Genomics business.
• Divestiture of Cleaners & Disinfectants business proceeds used to pay down $100 million in debt.
• Q2 FY2025 saw core revenue growth of 3.5%.
• Q4 FY2025 core revenue declined by 2.9%.
• FY2025 Goodwill Impairment Charge (Food Safety Segment) was $1,059.3 million.

Neogen Corporation (NEOG) - Canvas Business Model: Key Resources

The Key Resources for Neogen Corporation are centered on its deep scientific foundation, extensive global reach, and established product franchises that are critical for maintaining its leadership in food and animal safety diagnostics and services.

Proprietary antibodies and RNA/DNA testing methodologies form the core of the Food Safety segment's diagnostic offerings, underpinning tests for natural toxins, allergens, and pathogens. This scientific base is also leveraged in the Animal Safety segment, particularly within the genomics services which include over 350 genetic tests for dogs and cats following the 2021 acquisition of Genetic Veterinary Sciences, Inc. The company's intellectual property portfolio is a direct reflection of this R&D strength.

The global manufacturing and distribution infrastructure across over 140 countries is a massive asset, allowing Neogen Corporation to serve its worldwide customer base effectively. International revenues accounted for a significant 50.2% of consolidated net revenues in fiscal year 2025, demonstrating the necessity of this global footprint. The company completed the divestiture of its global Cleaners & Disinfectants business in July 2025 to simplify operations, focusing resources on core capabilities.

The leading product portfolio includes cornerstone brands. For instance, the establishment of Neogen Corporation's own Petrifilm production was progressing well as of late 2025, with the first of two production lines nearly installed, which is key to securing supply for this major food quality testing product. The AccuPoint Advanced systems, a complete sanitation monitoring system measuring ATP, holds AOAC PTM approval, verifying its reliability for cleaning verification programs in food manufacturing and healthcare settings.

The company's intellectual property covering diagnostic test kits and software systems provides a defensible moat around its technology. As of the 2025 Annual Report, Neogen Corporation's patent estate included approximately 169 U.S. patents, 611 patents in countries outside of the U.S., and 177 pending patent applications globally. This extensive IP library protects its various testing platforms.

The final critical resource is its highly skilled scientists and technical experts for product support. This network is dedicated to delivering optimized products and technology. As of May 31, 2025, Neogen Corporation employed 2,974 people, a resource base that supports its global operations across continents.

Here's the quick math on the scale of the business supporting these resources as of fiscal year 2025:

The company's operational scale is also reflected in its financial structure, which supports continued investment in these resources. For example, as of August 31, 2025, Neogen Corporation had $138.9 million in total cash and cash equivalents, supporting operations while total outstanding debt stood at $800.0 million.

You can see the concentration of the business in the following areas, which rely heavily on these key resources:

• Food Safety segment revenue: $638.1 million for the full year ended May 31, 2025.
• Animal Safety segment revenue: $256.5 million for the full year ended May 31, 2025.
• Genomics business core revenue: Experienced a mid-single-digit decline in Q4 FY2025.
• Petrifilm: Sales out of the U.S. distribution channel showed solid growth in Q1 FY2026.
• AccuPoint Advanced: Has a 4.3" TFT-LCD capacitive touchscreen and Wi-Fi connectivity.

Finance: draft 13-week cash view by Friday.

Neogen Corporation (NEOG) - Canvas Business Model: Value Propositions

Rapid, accurate, and relatively inexpensive detection of food contaminants is supported by the Food Safety segment, which accounted for 71.3% of Neogen Corporation total revenues for the fiscal year ended May 31, 2025. Core revenue for the Food Safety segment grew mid-single digits for the full fiscal year 2025. For the first quarter of fiscal year 2026 (ending August 31, 2025), Food Safety segment revenue was $152.1 million.

Comprehensive suite of solutions for foodborne pathogens, allergens, and toxins is evidenced by growth drivers in fiscal year 2025, which included continued strength in indicator and pathogen testing. In the fourth quarter of fiscal year 2025, core revenue growth in the Food Safety segment was seen in the Bacterial & General Sanitation product category, benefiting from strong growth in pathogen detection products. The company is also progressing with the establishment of its own Petrifilm production.

Enhanced animal health and genetic progress through advanced genomic services is a key part of the Animal Safety segment, which generated $256.5 million in revenue for the full fiscal year 2025. The company has taken restructuring actions focused on rightsizing the Genomics business due to a mid-single-digit core revenue decline in the second quarter of fiscal 2025 and a low-single-digits core revenue decline in the fourth quarter of fiscal 2025. Despite this, strong growth in the bovine market, particularly internationally, was noted in the fourth quarter of fiscal year 2025.

Digital tools for objective analysis and long-term storage of test results are integral to the service offering, though specific financial metrics for the tools are not separately detailed in the segment reporting. The overall Food Safety segment, which includes these tools, saw its core revenue grow low-single-digits in the fourth quarter of fiscal year 2025.

Biosecurity and sanitation products for a safer food production environment are delivered through both segments. The Food Safety segment experienced core revenue growth in Biosecurity products in the fourth quarter of fiscal 2025. The Animal Safety segment includes rodent control solutions sold under brand names such as Ramik®, CyKill™, and Havoc, and insect control under the Prozap® brand. The company divested its global cleaners and disinfectants business, which generated approximately $60 million of annual revenue, to focus on core diagnostics, with the sale expected to be margin-accretive.

The value proposition is further supported by the following operational highlights:

• Food Safety segment revenue decreased $17.2 million during fiscal year 2025 compared to the prior year.
• The sale of the Cleaners & Disinfectants business was for $130 million in cash at closing plus contingent consideration.
• Net debt position as of May 31, 2025, was $771 million.
• The company plans to use proceeds from the divestiture to repay $100 million of debt in Q1 FY26.
• Fiscal year 2026 revenue guidance is projected between $820 million and $840 million.

Neogen Corporation (NEOG) - Canvas Business Model: Customer Relationships

You're looking at how Neogen Corporation keeps its customer base engaged, especially after major integration efforts and market shifts in fiscal year 2025. The relationship strategy centers on deep expertise and long-term partnership, which is critical when your core business is safety and compliance.

Dedicated field support and product training for complex solutions

Neogen Corporation maintains a significant global resource pool to back up its complex diagnostic and safety solutions. This support structure is designed to ensure customers can use the technology effectively right away. The company's brand promise is built on this reliability: safety at your side. This commitment is backed by a substantial team dedicated to direct customer interaction.

• Global network of technical experts: over 300 food safety and technical experts as of July 2024.
• The company incurred additional expense for retention related costs during fiscal year 2025.
• Products are marketed by Neogen's own sales personnel and distributors worldwide.

Technical expert consultation for optimized product and technology use

For specialized offerings like genomics and software, direct consultation is key. Neogen provides services where the results are conveyed directly to the customer, implying a consultative step. While the Animal Safety segment's Genomics business experienced a mid-single-digit core revenue decline in Q3 FY2025, the overall service revenue saw a specific drop, which points to the nature of these relationships.

The company's software, Neogen Analytics, is an Environmental Monitoring Program (EMP) automation solution that reduces risk by increasing visibility of testing results, which inherently requires technical guidance for optimization.

The decline in service revenue suggests that while the need for interpretation remains, customer insourcing and end-market weakness in companion animal markets affected the volume of these expert interactions in FY2025. Still, the company is focused on commercial excellence moving forward.

Targeted share-gain activities to win new market business

Neogen Corporation actively pursues winning new business, especially within its core Food Safety segment, which accounted for 71.3% of total revenues in fiscal year 2025. Management noted encouraging initial traction from these efforts in the first quarter of fiscal 2025.

• Food Safety core revenue grew mid-single digits for the full fiscal year 2025, outside of specific sample collection challenges.
• In Q1 FY2025, the Food Safety segment saw positive core revenue growth, attributed to these targeted share-gain activities.

Long-term, essential partner relationship with customers and regulators

The relationship extends beyond just the customer to include regulatory bodies, positioning Neogen as an essential part of the global food security infrastructure. The company emphasizes its role as a valuable partner for both customers and regulators in maximizing food safety effectiveness. This is especially relevant given the current regulatory backdrop, which was noted as favorable in the US, with key announcements from the USDA in July 2025.

Neogen's global footprint supports this partnership model, with a presence in over 140 countries. The brand promise, safety at your side, reflects the trust customers place in Neogen to deliver consistent, science-based solutions.

Account management for large food processors and livestock producers

Large entities, such as major food and beverage processors and livestock producers, form the backbone of Neogen's customer base, particularly for the Food Safety and Animal Safety segments, respectively. The company's ATP sanitation testing products serve food and beverage processors, the food service, and healthcare industries. In the Animal Safety segment, offerings support livestock producers and veterinarians.

The overall fiscal year 2025 revenue was $894.7 million, a decrease of 3.2% compared to the prior year. The company completed the divestiture of its global Cleaners & Disinfectants business in fiscal 2025, intended to simplify the business and allow for a sharper focus on core capabilities, which would directly impact the account management focus areas moving forward.

Finance: draft 13-week cash view by Friday.

Neogen Corporation (NEOG) - Canvas Business Model: Channels

You're looking at how Neogen Corporation gets its products and services into the hands of its customers across food safety and animal safety markets. It's a mix of direct engagement and leveraging established networks, which makes sense given the diverse customer base, from large processors to individual veterinarians.

Direct sales force to large food producers and processors

Neogen Corporation maintains a direct sales presence in the United States and has established locations in 28 other countries outside the U.S. to serve customers directly. This direct approach is key for high-touch sales, especially to large food manufacturers and processors who are the primary buyers of many Food Safety segment products. For the fiscal year ended May 31, 2025, the Food Safety segment generated $638.1 million in revenue. This segment's core revenue grew at a mid-single-digit rate for the full fiscal year 2025, showing the direct sales channel's underlying strength despite softer end-market conditions.

Global network of animal health product distributors and retailers

To expand reach, defintely, Neogen Corporation relies on a global network. The Animal Safety segment, which accounted for 28.7% of total revenues in fiscal year 2025, markets many consumable products through animal health product distributors, as well as retailers like large farm and ranch outlets. This distributor network is crucial for reaching international markets where a direct employee presence isn't established.

Genomic testing laboratories providing direct service to customers

Genomic testing is a service channel where results are conveyed directly to the customer upon service completion. This service is part of the Animal Safety segment. On a global basis, the Genomics business experienced sequential improvement, declining low-single-digits in core revenue for the fourth quarter of fiscal 2025. The company also records contract liabilities related to genomics services, which stood at $5,558 thousand as of May 31, 2025, indicating advance payments for these services.

E-commerce and online platforms for consumable product sales

While specific e-commerce revenue figures aren't broken out, the company does sell products and services directly to consumers. The overall annual revenue for Neogen Corporation for the fiscal year ending May 31, 2025, was $894.7 million. This total revenue encompasses all sales channels, including any online platforms used for ordering consumables.

Veterinary instrument and disposable product distributors

Veterinary instruments and disposables fall under the Animal Safety segment, which saw revenues of $245.7 million (calculated as $894.7 million total revenue minus $638.1 million Food Safety revenue, though the search result suggests the Animal Safety percentage is more precise) or 28.7% of total revenue for fiscal year 2025. These products are marketed to companion animal veterinarians and other end-users, often utilizing the established animal health product distributor network.

Here's a look at the revenue breakdown by major product and service categories for the fiscal year ending May 31, 2025, which helps map the scale of the segments served by these channels:

The total capital expenditures for Neogen Corporation in fiscal year 2025 were $105 million.

Finance: review the Q1 2026 distributor sales reports against the 2025 distributor channel performance by Friday.

Neogen Corporation (NEOG) - Canvas Business Model: Customer Segments

You're looking at the core of Neogen Corporation's business, which really splits into two major groups based on their reporting structure: Food Safety and Animal Safety. Honestly, the Food Safety side is the lion's share of the revenue pie, which tells you where a lot of their immediate focus is right now.

For the fiscal year ended May 31, 2025, revenues from Neogen Corporation's Food Safety segment accounted for 71.3% of total revenues. This group is primarily focused on keeping the global food supply chain secure. Their customers are the ones making the food and feed you and I consume daily.

The specific customer types within the Food Safety realm include:

• Global food and beverage producers and processors.
• Food service and healthcare industries using their sanitation testing products.
• Users of their diagnostic test kits for pathogens, toxins, and allergens.

The other major group, the Animal Safety segment, brought in $256.5 million in revenue for the full year 2025. This segment is broad, supporting everything from large-scale agriculture to individual pet care. You'll find their products marketed through several channels to reach these diverse users.

Here's a quick breakdown of the key customer groups served by the Animal Safety segment and related services:

The genomics business, which falls under Animal Safety, generated service revenue of $97.3 million in fiscal 2025. Clients here are specialized, but the overall segment serves a wider audience:

For the Animal Safety segment, the majority of consumable products are marketed through veterinarians, retailers, and animal health product distributors. Livestock producers are direct users, especially for biosecurity and genetics progress tools. To be fair, the companion animal market showed some weakness in fiscal 2025, which impacted that part of the segment's revenue.

Commercial and research laboratories are definitely a segment, often utilizing the diagnostic test kits and complementary products like culture media from the Food Safety side. Also, Neogen Corporation views its role as a valuable partner for government and regulatory agencies focused on food safety, though direct revenue attribution for this group isn't broken out separately in the main segment reporting. They are a key audience for their testing accuracy and data systems.

The total revenue for Neogen Corporation in fiscal year 2025 was $894.7 million. Finance: draft a customer concentration risk assessment for the top 10 Food Safety customers by Friday.

Neogen Corporation (NEOG) - Canvas Business Model: Cost Structure

You're looking at the costs Neogen Corporation is managing as it moves past the major 3M Food Safety Division integration phase and addresses recent performance pressures. The cost structure for fiscal year 2025, which ended May 31, 2025, shows significant non-recurring charges alongside the core cost of sales.

The primary cost of running the business is tied directly to generating sales, which is reflected in the Cost of Goods Sold (COGS).

This gross margin of 47.1% for fiscal year 2025 was a compression from 50.2% in the prior fiscal year. The drivers for this margin pressure included lower volume, higher manufacturing costs in the sample collection product line, and an elevated level of inventory write-offs.

A major non-operating cost event tied to the 3M acquisition was the impairment charge recorded during the year. This signals a significant write-down in the value attributed to that combination.

• Goodwill impairment charge related to the 3M Food Safety Division acquisition: $461 million (non-cash).
• Restructuring charges incurred in the current fiscal year, partially recorded within general and administrative expense, included severance payments and other exit costs related to initiatives like streamlining the global genomics business.

Operating expenses remain a focus area, especially as the company transitions leadership and seeks efficiency. You see the immediate action being taken to right-size the cost base, which was announced shortly after the fiscal year-end.

The reported General and Administrative expenses for the full fiscal year 2025 were $218.2 million. To address this, Neogen Corporation has initiated a targeted improvement plan:

• Targeted annualized reduction in operating expenses: approximately $20 million.
• This reduction is being achieved through a global headcount reduction of approximately 10% and non-labor cost reductions.

Capital expenditures (CapEx) in fiscal year 2025 were substantial, reflecting the ongoing investment required to complete the integration of the acquired 3M Food Safety Division assets and facilities.

The integration CapEx was largely focused on the construction of and equipment for the new manufacturing facility in Lansing, Michigan. For context, the projected CapEx for fiscal year 2026 is significantly lower at approximately $50 million.

Financing costs are a direct result of the debt taken on to fund the 3M acquisition. As of the balance sheet date of May 31, 2025, the debt load was significant, though some deleveraging was planned shortly thereafter.

The interest expense calculation for the year ended May 31, 2025, includes amortization of deferred debt issuance costs related to the Credit Facilities refinanced in April 2025. Finance: draft 13-week cash view by Friday.

Neogen Corporation (NEOG) - Canvas Business Model: Revenue Streams

You're looking at the core ways Neogen Corporation brings in money, which is heavily weighted toward its Food Safety business, as of the close of fiscal year 2025.

The total revenue for Neogen Corporation for the fiscal year ended May 31, 2025, was reported as $894.7 million.

The revenue generation is clearly split between two main segments, with Food Safety being the dominant contributor.

Here's the quick math on the segment contribution for FY2025:

The Food Safety segment contributed $638.1 million (71.3% of total) in FY2025, which is primarily product revenue from diagnostic test kits and culture media used to detect harmful natural toxins, foodborne bacteria, and allergens.

The Animal Safety segment, which accounted for 28.7% of total revenue, generates revenue through a mix of product sales and service revenue from advanced genomic testing.

The revenue streams within the Animal Safety segment include:

• Service revenue from advanced genomic testing, covering genetic evaluation and related interpretive bioinformatic services.
• Sales of consumable veterinary instruments and animal care products, including diagnostics, pharmaceuticals, topicals, and parasiticides.

To be fair, Neogen Corporation's revenue recognition for products happens when the product ships, but service revenue, like the genomic testing, is recognized when the laboratory service is performed and results are conveyed to the customer. This means the timing of cash flow can differ slightly between the two main revenue types.

The key revenue components driving the Food Safety segment are:

• Diagnostic test kits for pathogens and allergens.
• Culture media and related products.
• Products for general sanitation monitoring.

Finance: draft 13-week cash view by Friday.