Mesa Labs Announces Second Quarter Results
Rhea-AI Summary
Mesa Laboratories (NASDAQ:MLAB) reported 2Q26 results for the quarter ended September 30, 2025. Total revenues $60,737 (up 5.0% year-over-year) and core organic revenues +3.7%. Operating income rose 34.7% to $4,724. Non-GAAP adjusted operating income (AOI) was $14,385 (+7.2%); excluding unusual items AOI was $15,233 (+6.1%) and AOI margin was 25.1%. Net income was $2,476 (down 27.8%). Total Net Leverage Ratio was 3.02. Company cited $3.2M annualized cost reductions (net annualized savings expected $2.3M) and plans to reinvest $0.9M into SDC starting 3Q25. Division highlights: BPD core organic +16.4%, CS +10.8%, CG core organic -3.6% with China down ~58% (~$1.7M), SDC core organic -3.2%.
Positive
- Operating income +34.7% to $4,724 in 2Q26
- BPD core organic revenues +16.4% in 2Q26
- Calibration Solutions core organic revenues +10.8% in 2Q26
- Gross profit +330 bps in Clinical Genomics for 2Q26
- Initiated $3.2M annualized cost reductions; net annualized savings expected $2.3M
Negative
- Net income -27.8% to $2,476 in 2Q26
- Clinical Genomics China revenues down ~58% (≈$1.7M) versus prior year
- BPD gross profit contracted by 200 bps in 2Q26
- Tariffs cost ~70 bps of revenues in 2Q26, pressuring margins
News Market Reaction
On the day this news was published, MLAB gained 0.90%, reflecting a mild positive market reaction. Argus tracked a peak move of +2.2% during that session. Our momentum scanner triggered 10 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $4M to the company's valuation, bringing the market cap to $442M at that time. Trading volume was elevated at 2.5x the daily average, suggesting notable buying interest.
Data tracked by StockTitan Argus on the day of publication.
LAKEWOOD, Colo., Nov. 06, 2025 (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 second fiscal quarter (“2Q26”) ended September 30, 2025 (amounts in thousands).
Financial Summary – 2Q26 versus the same year ago period
- Revenues increased
5.0% - Non-GAAP core organic revenues1 growth was
3.7% - Operating income increased
34.7% to$4,724 - Non-GAAP adjusted operating income (“AOI”) excluding unusual items2 increased
6.1% and was25.1% as a percentage of revenues
We operate a diversified business across four divisions: Sterilization and Disinfection Control (“SDC”), Biopharmaceutical Development (“BPD”), Calibration Solutions (“CS”), and Clinical Genomics (“CG”).
Executive Commentary (amounts in thousands)
“Solid execution and market stability across Europe and North America helped deliver
“Profitability for the quarter, using our preferred metric of AOI excluding unusual items as a percentage of revenues, was strong at
“The Mesa Way also powered our long-term goals in the quarter with the completion of Breakthrough 8, where we began deploying this year’s Calibration Solutions strategic plan. In this event we focused on accelerating growth with initiatives linked to Top of Funnel Growth, Service Renewals, Channel Partner Management, and Depot Service Turn Around Times. We also held a Value Engineering event which enabled broader customer engagement at acceptable margins,” continued Mr. Owens.
“While the first half of FY26 was full of many challenges, we are encouraged by the faith that our customers place in our solutions and team, our traction with key initiatives, the demonstrated strength of our operating model, and the resilience of our team,” concluded Mr. Owens.
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 September 30, 2025 | Six Months Ended September 30, 2025 | Three Months Ended September 30, 2025 | Six Months Ended September 30, 2025 | Three Months Ended September 30, 2025 | Six Months Ended September 30, 2025 | ||||||||
| SDC | $ | 22,107 | $ | 47,517 | (0.4 | )% | 5.2 | % | (3.2 | )% | 2.2 | % | ||
| BPD | 13,920 | 25,406 | 17.3 | % | 6.4 | % | 16.4 | % | 4.6 | % | ||||
| CS | 13,570 | 25,920 | 10.7 | % | 7.7 | % | 10.8 | % | 7.8 | % | ||||
| CG | 11,140 | 21,437 | (3.1 | )% | (6.4 | )% | (3.6 | )% | (7.1 | )% | ||||
| Total | $ | 60,737 | $ | 120,280 | 5.0 | % | 3.7 | % | 3.7 | % | 2.1 | % | ||
Sterilization and Disinfection Control (
Calibration Solutions (
Biopharmaceutical Development (
Clinical Genomics (
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 these non-GAAP measures to their 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, 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, including as a result of acquisitions; the results on operations of acquisitions; our ability to consummate acquisitions at our historical rate and at appropriate prices; our ability to effectively integrate acquired businesses and achieve desired results; the market acceptance of our products; reduced demand for our products that adversely impacts our future revenues, cash flows, results of operations and financial condition; 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, 2025, and our Quarterly Reports on Form 10-Q. We assume no obligation to update the information in this press release.
Mesa Laboratories Contacts:
Gary Owens; President and CEO,
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, 2025)
Condensed Consolidated Statements of Operations
| (Amounts in thousands, except per share data) | Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| Revenues | $ | 60,737 | $ | 57,833 | $ | 120,280 | $ | 116,003 | ||||||
| Cost of revenues | 23,406 | 22,378 | 46,010 | 43,299 | ||||||||||
| Gross profit | 37,331 | 35,455 | 74,270 | 72,704 | ||||||||||
| Operating expenses | 32,607 | 31,947 | 66,482 | 63,616 | ||||||||||
| Operating income | 4,724 | 3,508 | 7,788 | 9,088 | ||||||||||
| Nonoperating expense (income) | 2,725 | (304 | ) | (1,223 | ) | 1,371 | ||||||||
| Earnings before income taxes | 1,999 | 3,812 | 9,011 | 7,717 | ||||||||||
| Income tax (benefit) expense | (477 | ) | 384 | 1,793 | 901 | |||||||||
| Net income | $ | 2,476 | $ | 3,428 | $ | 7,218 | $ | 6,816 | ||||||
| Earnings per share (basic) | $ | 0.45 | $ | 0.63 | $ | 1.32 | $ | 1.26 | ||||||
| Earnings per share (diluted) | 0.45 | 0.63 | 1.30 | 1.25 | ||||||||||
| Weighted average common shares outstanding: | ||||||||||||||
| Basic | 5,512 | 5,413 | 5,488 | 5,405 | ||||||||||
| Diluted | 5,535 | 5,471 | 5,543 | 5,448 | ||||||||||
| Consolidated Condensed Balance Sheets | |||||
| (Amounts in thousands) | September 30, 2025 | March 31, 2025 | |||
| Cash and cash equivalents | $ | 20,422 | $ | 27,321 | |
| Other current assets | 77,011 | 75,364 | |||
| Total current assets | 97,433 | 102,685 | |||
| Noncurrent assets | 332,918 | 330,663 | |||
| Total assets | $ | 430,351 | $ | 433,348 | |
| Liabilities | $ | 251,883 | $ | 273,518 | |
| Stockholders’ equity | 178,468 | 159,830 | |||
| Total liabilities and stockholders’ equity | $ | 430,351 | $ | 433,348 | |
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 | Six Months Ended September 30, | |||||||||
| September 30, | |||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||
| Operating income (GAAP) | $ | 4,724 | $ | 3,508 | $ | 7,788 | $ | 9,088 | |||
| Amortization of intangible assets | 4,534 | 4,550 | 9,087 | 8,611 | |||||||
| Stock-based compensation expense | 3,812 | 3,837 | 7,693 | 6,765 | |||||||
| Depreciation expense | 1,315 | 1,518 | 2,719 | 2,922 | |||||||
| AOI (non-GAAP) | $ | 14,385 | $ | 13,413 | $ | 27,287 | $ | 27,386 | |||
| Unusual items – before tax | |||||||||||
| Non-cash GKE inventory step-up1 | $ | -- | $ | 454 | $ | -- | $ | 1,232 | |||
| GKE integration costs2 | -- | 485 | -- | 1,075 | |||||||
| Severance costs3 | 848 | -- | 848 | -- | |||||||
| Total impact of unusual items on AOI – before tax | $ | 848 | $ | 939 | $ | 848 | $ | 2,307 | |||
| AOI excluding unusual items (non-GAAP) | $ | 15,233 | $ | 14,352 | $ | 28,135 | $ | 29,693 | |||
| AOI per share - basic (non-GAAP) | $ | 2.61 | $ | 2.48 | $ | 4.97 | $ | 5.07 | |||
| AOI per share - diluted (non-GAAP) | 2.6 | 2.45 | 4.92 | 5.03 | |||||||
| AOI excluding unusual items per share – basic (non -GAAP) | 2.76 | 2.65 | 5.13 | 5.49 | |||||||
| AOI excluding unusual items per share – diluted (non-GAAP) | 2.75 | 2.62 | 5.08 | 5.45 | |||||||
| Weighted average common shares outstanding: | |||||||||||
| Basic | 5,512 | 5,413 | 5,488 | 5,405 | |||||||
| Diluted | 5,535 | 5,471 | 5,543 | 5,448 | |||||||
1 Non-cash cost of revenues expense associated with the step up to fair value of GKE inventory due to application of purchase accounting
2 GKE integration costs primarily consist of consulting costs for the integration of the acquiree, including the implementation of the enterprise resource planning tool and professional auditing services related to the audit of purchase accounting
3 Severance charges recorded in 2Q26 for individuals in each of our business units and corporate functions. The charges affected employees in each of our Asia Pacific, Europe, and North America geographies.
Organic and Core Organic Revenues Growth (Unaudited)
| Three Months Ended September 30, 2025 | Six Months Ended September 30, 2025 | |||
| Total revenues growth | 5.0 | % | 3.7 | % |
| Impact of acquisitions | -- | % | -- | % |
| Organic revenues growth (non-GAAP) | 5.0 | % | 3.7 | % |
| Currency translation | (1.3 | )% | (1.6 | )% |
| Core organic revenues growth (non-GAAP) | 3.7 | % | 2.1 | % |
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 on-going and are related to a specific transaction. We exclude these unusual items as they are outside of normal operations and are not on-going.
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 does (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.
FAQ
What were Mesa Laboratories (MLAB) revenues and core organic growth in 2Q26?
How did Mesa's profitability change in 2Q26 for MLAB?
What happened to Mesa's Clinical Genomics segment in 2Q26 (MLAB)?
What cost actions did Mesa (MLAB) announce and what is the expected impact?
What is Mesa's leverage after 2Q26 (MLAB)?
