Mesa Labs Announces First Quarter Results
Rhea-AI Summary
Mesa Laboratories (NASDAQ:MLAB) reported first fiscal quarter 2027 results for the period ended June 30, 2026. Revenues were $60.1 million, up 1.0% year over year, with non-GAAP organic and core organic revenues growth of 1.0% and 0.4%, respectively. GAAP operating income rose 129% to $7.0 million, while non-GAAP adjusted operating income (“AOI”) increased 16.5% to $15.0 million, or $2.61 per diluted share, and 25.6% of revenues; AOI excluding $0.4 million of unusual items grew 19.5% to $15.4 million.
Net income declined 40.3% to $2.8 million, or $0.49 per diluted share, mainly due to a swing from prior-year nonoperating income to nonoperating expense. By division, organic revenue growth was CS +7.6%, BPD +5.0%, CG -0.1%, and SDC -3.6%. Mesa repaid $8.7 million of debt, reducing its Total Net Leverage Ratio to 1.85, below its 2.0 target.
Positive
- Revenues up 1.0% year over year to $60.1 million in 1Q27
- GAAP operating income increased 129% to $7.0 million in 1Q27
- AOI excluding unusual items rose 19.5% to $15.4 million; 25.6% of revenues
- Debt repayment of $8.7 million; Total Net Leverage Ratio reduced to 1.85
- Calibration Solutions organic revenues growth 7.6%; gross margin up 350 bps
- Biopharmaceutical Development organic revenues growth 5.0%; gross margin up 800 bps
Negative
- Net income decreased 40.3% to $2.8 million; diluted EPS $0.49
- Sterilization and Disinfection Control organic revenues declined 3.6%; gross margin down 150 bps
- Clinical Genomics organic revenues declined 0.1%; continued revenue weakness in China
- Nonoperating result shifted from $3.9 million income to $2.7 million expense year over year
News Explained
At
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 27 | 4Q26 earnings | Positive | -14.5% | Revenue, net income, adjusted operating income, and debt reduction all improved. |
| Feb 03 | 3Q26 earnings | Positive | +8.7% | Revenue and adjusted operating income increased while leverage declined through debt repayment. |
| Nov 06 | 2Q26 earnings | Negative | +1.5% | Revenue and operating income rose, but net income declined and leverage remained elevated. |
| Aug 05 | 1Q26 earnings | Negative | -24.9% | Adjusted operating income declined despite revenue growth and higher reported net income. |
| May 28 | 4Q25 earnings | Negative | -8.9% | Revenue and operating income increased, but the company reported a quarterly net loss. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings events averaged a -7.62% 24-hour reaction, with three of five producing negative reactions despite reported operating or revenue improvements.
Key Terms
non-gaap financial
total net leverage ratio financial
ebitda financial
stock-based compensation financial
organic revenues growth financial
core organic revenues growth financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
LAKEWOOD, Colo., Aug. 10, 2026 (GLOBE NEWSWIRE) -- Mesa Laboratories, Inc. (NASDAQ:MLAB) (“Mesa” or the “Company”), a global leader in the design and manufacture of life science tools and critical quality control solutions, today announced results for its first fiscal quarter (“1Q27”) ended June 30, 2026 (amounts in thousands).
1Q27 Financial Summary – (comparisons are versus the same prior year period)
- Revenues increased
1.0% - Non-GAAP organic and core organic revenues1 growth was
1.0% and0.4% , respectively - Operating income increased
129% to$7,031 - Non-GAAP adjusted operating income (“AOI”) excluding unusual items2 increased
19.5% and was25.6% as a percentage of revenues - Repaid
$8,656 of debt and reduced Total Net Leverage Ratio3 to 1.85
We operate our business in four divisions: Sterilization and Disinfection Control (“SDC”), Biopharmaceutical Development (“BPD”), Calibration Solutions (“CS”), and Clinical Genomics (“CG”).
Executive Commentary (amounts in thousands)
“I joined Mesa about one hundred days ago. I did not spend my time writing a vision statement, I spent it inside the company, with our people and our customers. What I found is a set of durable, regulation-embedded franchises with real and growing earnings power, and fixable execution problems we have already begun to fix. My focus is disciplined execution and consistent, profitable growth across our four divisions. In November, alongside first-half results, I will give full-year guidance,” said Siddhartha Kadia, President and CEO of Mesa.
“First quarter revenues of
Financial Results (unaudited, amounts in thousands, except per share data)
Total revenues were
Division Performance
| Revenues | Organic Revenues Growth1 | Core Organic Revenues Growth | ||||
| (Amounts in thousands) | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2026 | |||
| SDC | $ | 24,505 | (3.6 | )% | (4.6 | )% |
| BPD | 12,059 | 5.0 | % | 5.2 | % | |
| CS | 13,285 | 7.6 | % | 7.5 | % | |
| CG | 10,289 | (0.1 | )% | (1.1 | )% | |
| Total | $ | 60,138 | 1.0 | % | 0.4 | % |
Sterilization and Disinfection Control (
Biopharmaceutical Development (
Calibration Solutions (
Clinical Genomics (
Conference Call, Webcast, and Webcast Replay Information
Details for the conference call can be found below:
| Date: | Monday, August 10, 2026 |
| Time: | 4:30 p.m. Eastern Time |
| Toll Free: | 1-877-407-4018 |
| International: | 1-201-689-8471 |
| Conference ID: | 13761713 |
| Call me™ Link: | https://callme.viavid.com/viavid/?callme=true&passcode=13761713&h=true&info=company-email&r=true&B=6 |
| Webcast: | https://viavid.webcasts.com/starthere.jsp?ei=1769592&tp_key=620296632d |
Please call the conference telephone number or log on to the web access link five minutes prior to the start time.
A replay of the call will remain available for 45 days via the investors section of the Mesa Labs website at https://investors.mesalabs.com/.
Use of Non-GAAP Financial Measures
Adjusted operating income, adjusted operating income excluding unusual items, organic revenues growth and core organic revenues growth are non-GAAP measures that exclude or adjust for certain items, as detailed within the tables in “Supplemental Information Regarding Non-GAAP Financial Measures.”
1 Organic revenues growth is defined as reported revenues growth excluding the impact of acquisitions and core organic revenues growth is defined as organic revenues growth excluding currency translation. A reconciliation of each of these non-GAAP measures to its GAAP counterpart is set forth below.
2 Adjusted operating income and adjusted operating income per share are defined to exclude the non-cash impact of amortization of intangible assets acquired in a business combination, stock-based compensation, and depreciation and impairment of goodwill and long-lived assets. These measures are also presented excluding unusual items. A reconciliation of these non-GAAP measures to their GAAP counterparts is set forth below, along with additional information regarding their use.
3 Total Net Leverage Ratio under our Credit Facility is defined as the ratio of total debt minus unrestricted cash in excess of
About Mesa Laboratories, Inc.
Mesa is a global leader in the design and manufacture of life science tools and critical quality control solutions for regulated applications in the pharmaceutical, healthcare and medical device industries. Mesa offers products and services to help our customers ensure product integrity, increase patient and worker safety, and improve the quality of life throughout the world.
For more information about Mesa, please visit its website at www.mesalabs.com.
Forward Looking Statements
This press release contains forward-looking statements regarding our future business expectations. Any statements contained herein that are not statements of historical fact may be forward-looking statements, including statements relating to future financial results, business conditions and strategic initiatives. Words such as “seek,” “expect,” “plan” “intend,” “anticipate,” “believe,” “could,” “should,” “estimate,” “may,” “target,” “project,” and similar expressions may also identify forward-looking statements. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. The forward-looking statements are made based on expectations and beliefs concerning future events affecting us and are subject to risks and uncertainties relating to our operations and business environments, all of which are difficult to predict and many of which are beyond our control. Risks and uncertainties that could cause actual results to differ materially from our historical experience and present expectations or projections include those relating to: our ability to successfully grow our business; market acceptance of our products; the potential for reduced demand for our products ; conditions in the global economy and the particular markets we serve; significant developments or uncertainties stemming from actions of the U.S. government, including changes in U.S. trade policies and medical device regulations; the timely development and commercialization, and customer acceptance, of enhanced and new products and services; the inherent uncertainty of projections of revenues, growth, operating results, profit margins, expenses, earnings, margins, tax rates, tax provisions, cash flows, liquidity, demand, and competition; the effects of additional actions taken to become more efficient or reduce costs; restructuring activities; laws regulating fraud and abuse in the health care industry and the privacy and security of health and personal information; outstanding claims, legal proceedings, tax audits and assessments and other contingent liabilities; foreign currency exchange rates and fluctuations in those rates; and general economic, industry, and capital markets conditions. These risks and uncertainties also include, but are not limited to, those described in our filings with the Securities and Exchange Commission including our Annual Report on Form 10-K for the year ended March 31, 2026, and our Quarterly Reports on Form 10-Q. We assume no obligation to update the information in this press release.
Mesa Laboratories Contacts:
John Sakys; CFO
1-303-987-8000
investors@mesalabs.com
| Financial Summary (Unaudited except for the information as of and for the year ended March 31, 2026) | |||||
| Condensed Consolidated Statements of Operations | |||||
| (Amounts in thousands, except per share data) | Three Months Ended June 30, | ||||
| 2026 | 2025 | ||||
| Revenues | $ | 60,138 | $ | 59,543 | |
| Cost of revenues | 21,126 | 22,604 | |||
| Gross profit | 39,012 | 36,939 | |||
| Operating expenses | 31,981 | 33,875 | |||
| Operating income | 7,031 | 3,064 | |||
| Nonoperating expense (income) | 2,678 | (3,948 | ) | ||
| Earnings before income taxes | 4,353 | 7,012 | |||
| Income tax expense | 1,523 | 2,270 | |||
| Net income | $ | 2,830 | $ | 4,742 | |
| Earnings per share (basic) | $ | 0.50 | $ | 0.87 | |
| Earnings per share (diluted) | 0.49 | 0.85 | |||
| Weighted average common shares outstanding: | |||||
| Basic | 5,657 | 5,465 | |||
| Diluted | 5,757 | 5,553 | |||
| Consolidated Condensed Balance Sheets | ||||
| (Amounts in thousands) | June 30, 2026 | March 31, 2026 | ||
| Cash and cash equivalents | $ | 30,695 | $ | 26,928 |
| Other current assets | 72,153 | 79,340 | ||
| Total current assets | 102,848 | 106,268 | ||
| Noncurrent assets | 316,376 | 321,479 | ||
| Total assets | $ | 419,224 | $ | 427,747 |
| Liabilities | $ | 230,464 | $ | 241,502 |
| Stockholders’ equity | 188,760 | 186,245 | ||
| Total liabilities and stockholders’ equity | $ | 419,224 | $ | 427,747 |
| Reconciliation of Non-GAAP Measures (Unaudited) | ||||
| GAAP Operating Income (Loss) to Non-GAAP Adjusted Operating Income (“AOI”) | ||||
| (Amounts in thousands, except per share data) | Three Months Ended June 30, | |||
| 2026 | 2025 | |||
| Operating income (GAAP) | $ | 7,031 | $ | 3,064 |
| Amortization of intangible assets | 4,392 | 4,553 | ||
| Stock-based compensation expense | 2,359 | 3,881 | ||
| Depreciation expense | 1,253 | 1,404 | ||
| AOI (non-GAAP) | $ | 15,035 | $ | 12,902 |
| Unusual items – before tax | ||||
| Legal settlement1 | $ | 382 | $ | -- |
| Total impact of unusual items on AOI – before tax | $ | 382 | $ | -- |
| AOI excluding unusual items (non-GAAP) | $ | 15,417 | $ | 12,902 |
| AOI per share - basic (non-GAAP) | $ | 2.66 | $ | 2.36 |
| AOI per share - diluted (non-GAAP) | 2.61 | 2.32 | ||
| AOI excluding unusual items per share – basic (non -GAAP) | 2.73 | 2.36 | ||
| AOI excluding unusual items per share – diluted (non-GAAP) | 2.68 | 2.32 | ||
| Weighted average common shares outstanding: | ||||
| Basic | 5,657 | 5,465 | ||
| Diluted | 5,757 | 5,553 | ||
1 Legal Settlement related to lawsuit stemming from actions prior to presented reporting periods.
| Organic and Core Organic Revenues Growth (Unaudited) | ||
| Three Months Ended June 30, 2026 | ||
| Total revenues growth | 1.0 | % |
| Impact of acquisitions | -- | % |
| Organic revenues growth (non-GAAP) | 1.0 | % |
| Currency translation | (0.6 | )% |
| Core organic revenues growth (non-GAAP) | 0.4 | % |
Supplemental Information Regarding Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we provide non-GAAP adjusted operating income, non-GAAP adjusted operating income per share amounts, non-GAAP adjusted operating income excluding unusual items, non-GAAP adjusted operating income excluding unusual items per share amounts, non-GAAP organic revenues growth, and non-GAAP core organic revenues growth, in order to provide meaningful supplemental information regarding our operational performance. We believe that the use of these non-GAAP financial measures, in addition to GAAP financial measures, helps investors to gain a better understanding of our operating results, consistent with how management measures and forecasts our operating performance, especially when comparing such results to previous periods and to the performance of our competitors. Such measures are also used by management in their financial and operating decision-making and for compensation purposes. This information facilitates management's internal comparisons to our historical operating results as well as to the operating results of our competitors. Since management finds these measures to be useful, we believe that our investors can benefit by evaluating both GAAP and non-GAAP results.
The non-GAAP measures of adjusted operating income and adjusted operating income per share presented in the reconciliation above are defined to exclude the non-cash impact of amortization of intangible assets acquired in a business combination, stock-based compensation, depreciation and impairment of goodwill and long-lived assets. To calculate adjusted operating income, we exclude, as applicable:
- Impairments of long-lived assets, as such charges are outside of our normal operations and in most cases are difficult to accurately forecast.
- Stock-based compensation expense, as it is a non-cash charge and costs calculated for this expense vary in accordance with the stock price on the date of grant.
- Depreciation expense, as it is a non-cash charge.
- The expense associated with the amortization of acquisition-related intangible assets, as a significant portion of the purchase price for acquisitions may be allocated to intangible assets that have lives of up to 20 years. Exclusion of amortization expense allows comparisons of operating results that are consistent over time for both our newly acquired and long-held businesses and with both acquisitive and non-acquisitive peer companies.
The non-GAAP measures of adjusted operating income excluding unusual items and adjusted operating income excluding unusual items per share presented in the reconciliation above are defined as adjusted operating income less unusual items that are not ongoing and are related to a specific transaction. We exclude these unusual items as they are outside of normal operations and are not ongoing.
Our management recognizes that items such as amortization of intangible assets, stock-based compensation expense, depreciation expense and impairment losses on goodwill and long-lived assets can have a material impact on our operating and net income. To gain a complete picture of all effects on our profit and loss from any and all events, management relies (and investors should rely) on the GAAP consolidated statements of operations. The non-GAAP numbers focus instead on our core operating business.
Readers are reminded that non-GAAP measures are merely a supplement to, and not a replacement for, or superior to, financial measures prepared according to GAAP. They should be evaluated in conjunction with the GAAP financial measures. Our non-GAAP information may be different from the non-GAAP information provided by other companies.
