Mesa Labs (MLAB) Reports Second Quarter Earnings Results

Mesa Laboratories, Inc. (MLAB) today announced its financial results for the most recent quarter, revealing a diluted earnings per share of $0.45, which fell short of analysts’ expectations by $1.17. Despite this earnings miss, the company reported revenue of $60.7 million, slightly surpassing the revenue estimate by $3,667. The results highlight a mixed performance for Mesa Laboratories as it navigates the current market landscape.

Key Highlights:

• Revenues increased by 5.0% year-over-year in 2Q26.
• Non-GAAP core organic revenue growth was 3.7%.
• Operating income rose by 34.7% to $4,724,000.
• Non-GAAP adjusted operating income (AOI) increased by 6.1%, representing 25.1% of revenues.
• The company operates across four divisions: Sterilization and Disinfection Control (SDC), Biopharmaceutical Development (BPD), Calibration Solutions (CS), and Clinical Genomics (CG).
• BPD and CS divisions showed strong growth, while CG faced challenges, particularly in China.
• Management expects sequential revenue growth in 3Q26 despite macroeconomic uncertainties.

In the second quarter of fiscal year 2026, Mesa Laboratories, Inc. reported a revenue increase of 5.0% compared to the same period last year, with non-GAAP core organic revenue growth at 3.7%. CEO Gary Owens highlighted that solid execution and market stability in Europe and North America contributed to this growth, particularly in the Biopharmaceutical Development and Calibration Solutions divisions. However, the Clinical Genomics division experienced a significant decline in China, which impacted overall performance. Owens noted, “Despite macroeconomic uncertainty, we delivered strong growth of 3.7% organic over the first half of FY26, and we expect revenues to sequentially increase in 3Q26.”

The company has taken steps to align its cost structure with the current economic environment, reducing annualized costs by $3.2 million, which includes $2.1 million from the Clinical Genomics division. Owens emphasized the importance of their strategic initiatives, stating that the principles of “The Mesa Way” have allowed the team to focus on high-growth opportunities while managing challenges effectively. He expressed optimism about the company’s future, stating, “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.”

Mesa Laboratories, Inc. (MLAB) has experienced a tumultuous ride in the stock market, with its price reflecting a staggering 43.83% decline over the past year. Despite a modest uptick of 4.06% in the last month, the stock’s performance over the last six months has been particularly disheartening, plummeting nearly 36.29%. The company’s financial metrics paint a mixed picture; while it boasts a revenue growth rate of 5.13% over the past two years, its negative price-to-earnings ratio of -461.15 and a net profit margin hovering just above zero indicate significant challenges in profitability. Furthermore, the return on invested capital stands at a mere 3.52%, suggesting that the company is struggling to generate adequate returns from its investments. The free cash flow growth rate is also concerning, showing a decline of 3.51% over the same period. Investors may be wary, as the combination of these fundamental metrics and the stock’s volatile price changes raises questions about the company’s long-term viability. As MLAB navigates these financial hurdles, market watchers will be keenly observing how it adapts to regain investor confidence.

Mesa Laboratories, Inc. develops, manufactures, and sells life sciences tools and quality control products and services in the United States, Europe, the Asia Pacific, and internationally. The company’s Sterilization and Disinfection Control segment manufactures and sells biological, cleaning, and chemical indicators that are used to assess the effectiveness of sterilization and disinfection processes in the hospital, dental, medical device, and pharmaceutical industries. This segment also provides testing and laboratory services primarily to the dental industry. Its Biopharmaceutical Development segment develops, manufactures, and sells automated systems for protein analysis (immunoassays) and peptide synthesis solutions. This segment’s solutions include protein analysis comprising analysis equipment, CDs, kits, and buffers; and peptide synthesizers that enables to automate chemically synthesized peptides that are used in the creation of peptide therapies, biomaterials, cosmetics, and general research. The company’s Calibration Solutions segment designs, manufactures, and markets quality control and calibration products to measure or calibrate temperature, pressure, pH, humidity, and other such parameters used for health and safety purposes in the hospital, medical device manufacturing, pharmaceutical manufacturing, and various laboratory and healthcare environments. This segment’s products include continuous monitoring systems, dialysate meters and consumables, data loggers, gas flow calibration and air sampling equipment, and torque testing systems. Its Clinical Genomics segment develops, manufactures, and sells genetic analysis tools that include MassARRAY system and consumables, including chips, panels, and chemical reagent solutions used by clinical labs to perform genomic clinical testing in several therapeutic areas, such as newborn screenings, pharmacogenetics, and oncology. The company was incorporated in 1982 and is headquartered in Lakewood, Colorado.